Redwood changes tack as first risk-sharing deal nears

Fannie Mae
By Ryan Bolger
11 Nov 2014

Redwood Trust is shifting its focus towards originating more conforming loans to take advantage of a securitization partnership with Fannie Mae, in line with the GSE’s risk-sharing program.

Redwood began acquiring conforming loans in the first quarter of this year and expects to launch a $1.1bn risk-sharing securitization by the end of the fourth quarter. The firm had stockpiled just under $400m in conforming mortgages as of September 30, 2014.

Conforming mortgages accounted for 40% ...

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