Redwood Trust, Inc.
redwoodtrust.comWhat Do They Do?
Invests in housing-credit assets for investors and acquires or originates residential mortgages and rental-property loans through mortgage originators for homebuyers and property investors.
10-K for FY2025, filed Feb 27, 2026Redwood Trust, Inc., together with its subsidiaries, is a specialty finance company focused on several distinct areas of housing credit…View ↗
This segment consists of a mortgage loan conduit that acquires residential consumer loans from third-party originators for subsequent sale…View ↗
This segment consists of a platform that originates residential investor loans for subsequent securitization, sale, or transfer into our…View ↗
This segment consists of retained operating investments sourced through our Sequoia securitizations and CoreVest term and bridge loan…View ↗
How Do They Make Money?
Redwood earns interest while mortgage loans are held for sale, plus fees and gains when loans are originated or acquired and then sold, securitized, or transferred. Its investment portfolios earn interest and other income while holding mortgage-related assets, and may gain or lose value or earn gains when assets are sold.
10-K for FY2025, filed Feb 27, 2026Our goal is to provide attractive returns to shareholders through a stable and growing stream of earnings and dividends, capital…View ↗
This segment consists of a mortgage loan conduit that acquires residential consumer loans from third-party originators for subsequent sale…View ↗
This segment’s main source of income is Mortgage banking income, which is comprised of net interest income from its inventory of loans…View ↗
This segment consists of a platform that originates residential investor loans for subsequent securitization, sale, or transfer into our…View ↗
This segment also includes various derivative financial instruments that we utilize to manage certain risks associated with our inventory…View ↗
This segment’s main sources of income are net interest income and other income from investments, changes in fair value of investments and…View ↗
-
10-K for FY2025, filed Feb 27, 2026
FY2025 revenue by reportable segment ↗
$1.2B
-
10-K for FY2025, filed Feb 27, 2026
$1.2B ↗
| Segment | Share | Revenue |
|---|---|---|
|
Sequoia Mortgage Banking
|
16%
FY2022: 6.4%
|
Sequoia Mortgage Banking, FY2025
$183.6M Sources
|
|
CoreVest Mortgage Banking
|
1.6%
FY2022: 4.1%
|
CoreVest Mortgage Banking, FY2025
$18.5M Sources
|
|
Redwood Investments
|
76%
FY2022: 89%
|
Redwood Investments, FY2025
$895.4M Sources
|
|
Legacy Investments
|
7.1% |
Legacy Investments, FY2025
$83.7M Sources
|
Who Are Their Customers?
Mortgage originators sell Redwood residential loans, while property investors borrow through CoreVest. Redwood distributes loans through whole-loan sales and securitizations to investors, and manages joint ventures with institutional investment managers.
10-K for FY2025, filed Feb 27, 2026This segment consists of a mortgage loan conduit that acquires residential consumer loans from third-party originators for subsequent sale…View ↗
This segment consists of a platform that originates residential investor loans for subsequent securitization, sale, or transfer into our…View ↗
We typically distribute most of our loans through our CAFL® private-label securitization program, through whole loan sales, transfers into…View ↗
Redwood Trust, Inc., together with its subsidiaries, is a specialty finance company focused on several distinct areas of housing credit…View ↗
Do Revenues Turn Into Profits?
No. It lost $70M in FY2025.
10-K for FY2025, filed Feb 27, 2026
10-K for FY2025, filed Feb 27, 2026
−$70MView ↗
How Are They Changing?
- Net income
-
Sources
10-Q for Q2 FY2026, filed Aug 5, 2026
−$1.1MView ↗
- ▼ −99% (Loss)
- vs −$98.5M in Q2 FY2025
10-Q for Q2 FY2026, filed Aug 5, 2026
Open tableView ↗
-
Apr 29, 2026
Redwood formed a joint venture with Castlelake to purchase prime jumbo mortgage loans
The venture is designed to support Sequoia's growth and gives Castlelake purchasing power for loans sourced by Sequoia.
Sources
8-K, filed Apr 29, 2026
Castlelake and Redwood Trust Announce Strategic Joint Venture to Purchase up to $8 Billion of Prime Jumbo Mortgage LoansView ↗
Growing. Revenue grew 2.1x in 4 years, from $574.9M in FY2021 to $1.2B in FY2025, about 20% a year.
Investment portfolio focus
The investment portfolio has been narrowed to retained interests from Redwood’s own securitizations and other investments, while non-core legacy loans and securities are separated into a Legacy segment and are being sold, run off, or otherwise disposed of.
10-K for FY2022, filed Mar 1, 2023 10-K for FY2025, filed Feb 27, 2026This segment consists of organic investments sourced through our residential and business purpose mortgage banking operations, including…View ↗
This segment consists of retained operating investments sourced through our Sequoia securitizations and CoreVest term and bridge loan…View ↗
In the second quarter of 2025, as a part of the Company's accelerated shift towards a scalable and simplified operating model, legacy…View ↗
We primarily target investments with sensitivity to housing credit risk, sourced through our operating platforms where we control the…View ↗
This segment consists of assets no longer aligned with our core strategic objectives, including legacy unsecuritized bridge and term loans…View ↗
Who Do They Compete With?
Competes with Fannie Mae and Freddie Mac
10-K for FY2025, filed Feb 27, 2026We are subject to intense competition in seeking investments, acquiring, originating, and selling loans, engaging in securitization…View ↗
Loading...
