Jumbo lender Redwood Trust has completed the approval process to a Fannie Mae and Freddie Mac seller/servicer, according to company executives.
“We will be in a position to purchase agency loans in the fourth quarter,” Redwood Trust chief executive Martin Hughes said during a conference call late Wednesday.
The Mill Valley, Calif.-based REIT plans to acquire and securitize agency conforming loans, as well as participate in Freddie and Fannie risk-sharing transactions.
In the second quarter, Redwood completed four
Due to the surge in mortgage rates, there was a product shift to jumbo hybrid ARMs. Redwood sold the hybrid ARMs to banks.
Redwood Trust is still on track to meet its 2013 goal of acquiring $8 billion in jumbo loans. But with the recent rise in rates “it won't be easy,” one executive said.
The jumbo lender posted net income of $66 million in the second quarter, compared to $61 million in the prior quarter.
