Specialty finance company focused on investing in and managing residential and commercial mortgage loans and other real estate-related assets.
Redwood Trust, Inc., along with its subsidiaries, functions as a specialty finance company based in the United States. The company operates through three distinct segments: Residential Mortgage Banking, Business Purpose Mortgage Banking, and Investment Portfolio. The Residential Mortgage Banking segment oversees a mortgage loan conduit that procures residential loans from third-party originators for subsequent sale, securitization, or inclusion in its investment portfolio. This segment also provides derivative financial instruments to manage risks linked to residential loans.
The Business Purpose Mortgage Banking segment operates a platform specializing in originating and acquiring business purpose loans, including single-family rental and bridge loans, which are subsequently securitized, sold, or integrated into its investment portfolio. The Investment Portfolio segment focuses on investments in securities retained from both residential and business purpose securitization activities. It also includes investments in residential and small-balance multifamily bridge loans, residential mortgage-backed securities issued by third parties, Freddie Mac K-Series multifamily loan securitizations, reperforming loan securitizations, servicer advance investments, home equity investments, and other housing-related assets.
As a real estate investment trust (REIT) for federal income tax purposes, Redwood Trust, Inc. is mandated to distribute at least 90% of its taxable income as dividends to its shareholders. Founded in 1994 and headquartered in Mill Valley, California, the company maintains a robust operational framework designed to optimize its mortgage banking and investment activities in the dynamic U.S. real estate market.