About Us

About Us

Redwood Trust, Inc. (NYSE: RWT) is a specialty finance company focused on making credit-sensitive investments in residential mortgages and related assets and engaging in mortgage banking activities. Our goal is to provide attractive returns to shareholders through a stable and growing stream of earnings and dividends, as well as through capital appreciation.

Since going public in 1994, we have successfully managed our business through several cycles and built a track record of innovation, prudent risk management, and a best-in class reputation for service and executing credit risk solutions. We are internally managed and have elected to be taxed as a real estate investment trust, or REIT, for federal income tax purposes.

We operate and report on our businesses through two segments: Investment Portfolio and Residential Mortgage Banking.

Investment Portfolio: Our Investment Portfolio’s main source of revenue is interest income from our investments in prime jumbo residential loans, residential mortgage-backed securities that are either retained from our Sequoia securitizations or issued by third parties, and Agency CRT and multifamily securities. Additionally, we recently made a minority investment in 5 Arches, LLC, a business–purpose lender, to acquire single-family rental loans on a flow basis.

We borrow money, or use leverage, to finance portions of our Investment Portfolio, which allows us to both augment the size of the portfolio and enhance returns. Our diversified sources of funding include unsecured corporate debt, long-term financing from the Federal Home Loan Bank of Chicago, and securities repurchase agreements.

As credit-focused investors, we seek to manage the interest rate risk associated with certain of our investments by using a combination of interest rate derivatives and other instruments to hedge this risk.

Residential Mortgage Banking: Our Residential Mortgage Banking segment generates income through the acquisition and subsequent sale or securitization of residential loans. Additionally, this unique platform allows us to source, structure, and create long-term investments for our portfolio.

We acquire our loans through a broad network of third-party originators and we typically distribute the loans through either our Sequoia private-label securitization program or to institutions that acquire pools of whole loans.

Please see the Redwood Review, our quarterly supplemental to our SEC filings, for additional information about Redwood Trust, Inc.

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