To date, Redwood Trust has completed six jumbo securitizations in the post financial crisis era through its Sequoia Residential loan business – with no delinquencies, according to the REIT’s new ‘Redwood Review’ report.
Moreover, the firm says it has 37 active correspondent sellers in its network and hopes to have as many as 50 by yearend. It had originally hoped for at least 40.
Eventually, the firm hopes to enter the agency business.
At June 30, the Mill Valley, Calif.-based Redwood held $115 million of MBS from the six Sequoia deals which total $1.9 billion. It posted interest income of $25 million from its securities in 2Q, giving it an annualized unlevered rate of 11%.
Redwood does not originate jumbo loans itself and instead relies on a network of mortgage bankers, including depositories.
Late last week, the company reported net income of $20 million in 2Q compared to $30 million in 1Q. In 2Q 2011 it earned $9 million.
