Redwood Trust to Expand Data Transparency Reach in Residential MBS Market Through Partnership With dv01
dv01 to act as Loan Data Agent in future Sequoia securitizations, and Redwood Trust to utilize dv01’s Tape Cracker and Portfolio Surveillance products
NEW YORK – March 25, 2021 – dv01, a leading capital markets fintech driving technological innovation and loan-level transparency in structured finance, today announced it has partnered with Redwood Trust, Inc. (NYSE:RWT), a leader in expanding access to housing for homebuyers and renters, to promote data transparency and accountability within the private label residential mortgage-backed securities (“RMBS”) market.
Through this partnership, dv01 will serve as Loan Data Agent (“LDA”) for Redwood Trust’s future Sequoia securitizations, including the recently completed SEMT 2021-1—a prime RMBS transaction backed by $527 million of Select jumbo loans. As LDA, dv01 will receive loan-level data directly from the underlying servicers and other transaction participants to cleanse, validate, standardize, and aggregate for monthly reporting. Qualified platform users will then have access to reliable data and fully integrated analytics tools to monitor the performance of these Sequoia securitizations, free of charge. dv01 will onboard approximately 40 historical Sequoia securitizations, with an aggregate notional value at issuance of $17.3 billion, to its platform for existing investors to easily access, bringing dv01’s total analytics coverage to 61% of all non-agency prime jumbo RMBS deals issued since 2019. Sequoia transactions completed from January 1, 2018 to date, including SEMT 2021-1, are now available on the dv01 platform.
“On the heels of our recent acquisition of Pragmic Technologies and expansion into auto ABS, this partnership is further evidence of dv01’s continued growth and innovation,” said Perry Rahbar, Founder and CEO at dv01. “By collaborating with Redwood Trust, an established leader in the non-agency RMBS sector, we hope to propel the industry toward a more efficient and transparent market, boosting investor confidence.”
In addition to dv01’s Securitization Reporting offering, Redwood Trust will also leverage dv01’s Tape Cracker and Portfolio Surveillance products to modernize the workflow in its Residential business. Tape Cracker is a data wrangling tool powered by machine learning that streamlines the entire loan evaluation process by normalizing data and offering built-in tools for analyzing loan tapes, and Portfolio Surveillance is an advanced analytics solution for managing and monitoring loan portfolios that empowers users to rapidly respond to the market, meet business needs, discover trends, and minimize risk.
“Investing in technology to scale our business is a key strategic initiative at Redwood. Our partnership with dv01 marks another milestone on our path to implementing innovative technologies that provide secure, automated workflows to Redwood and our stakeholders,” said Fred Matera, Head of Residential at Redwood Trust. “Partnering with dv01 enables us to offer unparalleled market transparency into underlying loan performance within our existing Sequoia securitizations. With a reputation built on trust and reliability, we believe providing this level of visibility into our loan data will further advance Redwood’s reputation as a trusted leader in the RMBS market.”
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Founded in 2014, dv01 is the world’s first end-to-end data management, reporting, and analytics platform offering loan-level transparency and actionable insights into lending markets. To date, the dv01 platform boasts 75 million loans, 670 securitizations, and $3.9 trillion in original loan balance across consumer unsecured, student loans, auto, point of sale, small business, and both agency and non-agency MBS.
dv01’s Securitization Reporting offering has brought unparalleled transparency and intelligence by replacing antiquated manual processes and streamlining the reporting workflow. Fulfilling the role of loan data agent, dv01 receives loan-level data from issuers, servicers, and trustees for data cleansing, validation, and standardization. Investors are granted easy access to the normalized loan-level data along with fully integrated analytics and reporting tools via the dv01 web app, where users can review composition, analyze performance, and project collateral and tranche cashflows.
dv01’s Tape Cracker is an end-to-end cloud-based solution that mitigates and rectifies inaccuracies caused by inconsistent, faulty, or missing data within the data normalization process for loan tapes. Tape Cracker enables users to analyze strats, run calculations, and export data, ultimately eliminating the need to move between multiple platforms and allowing investors to spend less time cracking loan tapes and more time making investment decisions.
dv01’s Portfolio Surveillance solution converts data into fuel for strategic decision making by preparing all loan-level data and offering fully integrated analytics that deliver real results. Whether you are an issuer or investor, dv01 empowers you with a strong data-driven foundation that transforms your business and brings unparalleled transparency to all market participants.
About Redwood Trust
Redwood Trust, Inc. (NYSE: RWT) is a specialty finance company focused on several distinct areas of housing credit. Our operating platforms occupy a unique position in the housing finance value chain, providing liquidity to growing segments of the U.S. housing market not served by government programs. We deliver customized housing credit investments to a diverse mix of investors, through our best-in-class securitization platforms; whole-loan distribution activities; and our publicly-traded shares. Our consolidated investment portfolio has evolved to incorporate a diverse mix of residential, business purpose and multifamily investments. Our goal is to provide attractive returns to shareholders through a stable and growing stream of earnings and dividends, capital appreciation, and a commitment to technological innovation that facilitates risk-minded scale. Since going public in 1994, we have managed our business through several cycles, built a track record of innovation, and a best-in-class reputation for service and a common-sense approach to credit investing. Redwood Trust is internally managed, and structured as a real estate investment trust (“REIT”) for tax purposes. For more information about Redwood Trust, visit our website at www.redwoodtrust.com or connect with us on LinkedIn, Twitter, and Facebook.