Redwood Trust, Inc. (RWT): Business Model Canvas [Jan-2025 Mis à jour]

Plongez dans le monde complexe de Redwood Trust, Inc. (RWT), une puissance d'investissement hypothécaire dynamique qui transforme le financement immobilier complexe en opportunités stratégiques. Cette entreprise innovante tire parti d'une technologie de pointe, d'une expertise financière profonde et d'un modèle commercial sophistiqué pour naviguer dans le paysage difficile des investissements hypothécaires résidentiels et commerciaux. En reliant les investisseurs institutionnels à des opportunités hypothécaires spécialisées, Redwood Trust crée une proposition de valeur unique qui équilibre les risques, les rendements et l'innovation financière dans l'écosystème d'investissement immobilier en constante évolution.

Redwood Trust, Inc. (RWT) - Modèle commercial: partenariats clés

Originateurs hypothécaires et prêteurs pour l'acquisition de prêts

Au quatrième trimestre 2023, Redwood Trust a collaboré avec les créateurs hypothécaires suivants:

Partenaire	Volume de prêt	Durée du partenariat
Prêts à la maison de calibre	412 millions de dollars	En cours depuis 2019
loandepot	287 millions de dollars	En cours depuis 2020
Hypothèque de mouvement	206 millions de dollars	En cours depuis 2018

Institutions financières et banques d'investissement

Les partenariats financiers clés comprennent:

• Goldman Sachs - Capital Markets Advisory
• JPMorgan Chase - Services de titrisation
• Wells Fargo - Partenariats de prêt et d'investissement

Investisseurs institutionnels et participants au marché du capital

Partenaires d'investissement institutionnels à partir de 2024:

Investisseur	Montant d'investissement	Type d'investissement
Blackrock	215 millions de dollars	Titres adossés à des créances hypothécaires
Groupe d'avant-garde	178 millions de dollars	Stock privilégié
State Street Corporation	142 millions de dollars	Investissements hypothécaires

Fournisseurs de services de technologie et de logiciel

Investissements en partenariat technologique:

• Blend Labs - Plateforme de prêt numérique
• Ellie Mae - Logiciel d'origine hypothécaire
• Black Knight Financial Services - Technologie de traitement des prêts

Sociétés de gestion de prêts et de gestion des actifs

Partenariats de service de prêt en 2024:

Serviteur	Portefeuille de prêts avec les services	Frais de service annuels
Monsieur Cooper Group	2,3 milliards de dollars	46,5 millions de dollars
Hypothèque nationale	1,7 milliard de dollars	34,2 millions de dollars
Sélectionnez l'entretien du portefeuille	1,1 milliard de dollars	22,6 millions de dollars

Redwood Trust, Inc. (RWT) - Modèle d'entreprise: Activités clés

Prêts hypothécaires résidentiels et commerciaux

Au quatrième trimestre 2023, Redwood Trust a créé 3,2 milliards de dollars de prêts hypothécaires résidentiels et commerciaux. Valeur du portefeuille de prêts totaux: 12,5 milliards de dollars.

Type de prêt	Volume total	Taille moyenne du prêt
Prêts résidentiels	2,1 milliards de dollars	$475,000
Prêts commerciaux	1,1 milliard de dollars	2,3 millions de dollars

Titrisation de titres adossés à des créances hypothécaires (MBS)

Volume de titrisation en 2023: 4,8 milliards de dollars. Types de titrisation:

• Agence MBS
• MBS non agences
• MBS résidentiel jumbo
• MBS commercial

Gestion du portefeuille d'investissement

Valeur du portefeuille d'investissement total: 6,3 milliards de dollars. Composition:

Catégorie d'investissement	Valeur	Pourcentage
Investissements hypothécaires résidentiels	3,7 milliards de dollars	58.7%
Investissements hypothécaires commerciaux	2,1 milliards de dollars	33.3%
Autres investissements	500 millions de dollars	8%

Évaluation des risques et souscription du crédit

Mesures de risque de crédit pour 2023:

• Score FICO moyen pondéré: 752
• Ratio de prêt / valeur (LTV): 68%
• Taux de délinquance de plus de 90 jours: 0,45%
• Provision annuelle de perte de crédit: 42 millions de dollars

Transactions du marché des capitaux et stratégies de financement

Sources de financement et activités du marché des capitaux en 2023:

Source de financement	Montant	Pourcentage
Processe de titrisation	3,2 milliards de dollars	42%
Entrepôt de crédits d'entrepôt	1,8 milliard de dollars	23%
Émission de capitaux propres	1,5 milliard de dollars	20%
Émission de dette	1,2 milliard de dollars	15%

Redwood Trust, Inc. (RWT) - Modèle d'entreprise: Ressources clés

Équipe de gestion financière expérimentée

Depuis le quatrième trimestre 2023, le leadership exécutif de Redwood Trust comprend:

Position	Nom	Années d'expérience
PDG	Christopher Abate	20 ans et plus
Directeur financier	Dash Srinivasan	15 ans et plus

Technologie de souscription hypothécaire propriétaire

Métriques d'investissement technologique:

• Dépenses annuelles de R&D technologique: 7,2 millions de dollars
• Plateforme logicielle de création de prêt de prêt propriétaire
• Algorithmes d'évaluation des risques avancés

Portefeuille de prêts hypothécaires diversifiés

Catégorie de prêt	Valeur totale du portefeuille	Pourcentage
Prêts résidentiels	8,3 milliards de dollars	62%
Prêts commerciaux	5,1 milliards de dollars	38%

Solides capacités de gestion des risques de crédit

Indicateurs de performance de gestion des risques:

• Réserve de perte de prêt: 124 millions de dollars
• Taux de charge net: 0,35%
• Taux de délinquance de 90 jours: 0,22%

Relations de capital et de financement robustes

Source de financement	Montant total	Taper
Facilités de crédit	1,5 milliard de dollars	Tournant
Capacité de titrisation	3,2 milliards de dollars	Adossé à un hypothèque

Redwood Trust, Inc. (RWT) - Modèle d'entreprise: propositions de valeur

Investissements spécialisés résidentiels et commerciaux hypothécaires

Au quatrième trimestre 2023, Redwood Trust a géré un portefeuille d'investissement total de 7,1 milliards de dollars, avec la composition suivante:

Catégorie d'investissement	Valeur totale du portefeuille	Pourcentage
Hypothèques résidentielles	4,3 milliards de dollars	60.6%
Hypothèques commerciales	2,8 milliards de dollars	39.4%

Solutions de financement flexibles pour les emprunteurs

Redwood Trust propose diverses options de financement avec les caractéristiques suivantes:

• Gamme de prêts: 1 million de dollars à 75 millions de dollars
• Taux d'intérêt: 6,5% à 9,75% en janvier 2024
• Conditions de prêt: 3 à 10 ans

Rendements attrayants ajustés au risque pour les investisseurs

Mesures de performance d'investissement pour 2023:

Métrique de performance	Valeur
Revenus totaux	483 millions de dollars
Revenu net	132 millions de dollars
Retour des capitaux propres	8.9%

Stratégies d'investissement hypothécaire innovantes

Attribution stratégique des investissements en 2024:

• Investissements de location unifamiliale: 1,2 milliard de dollars
• Prêts à pont résidentiel: 950 millions de dollars
• Dette immobilière commerciale: 2,3 milliards de dollars

Plateforme complète d'investissement immobilier

Capacités et échelle de la plate-forme:

Métrique de la plate-forme	Données quantitatives
Originations totales (2023)	5,6 milliards de dollars
Nombre de comptes d'investisseurs actifs	12,500+
Couverture du marché géographique	48 États américains

Redwood Trust, Inc. (RWT) - Modèle d'entreprise: relations avec les clients

Gestion directe des relations avec les investisseurs institutionnels

En 2024, Redwood Trust entretient des relations directes avec les investisseurs institutionnels grâce à des stratégies d'engagement ciblées:

Catégorie d'investisseurs	Métriques d'engagement	Fréquence d'interaction
Fonds de pension	3,2 milliards de dollars d'actifs gérés	Réunions stratégiques trimestrielles
Compagnies d'assurance	Portfolio d'investissement de 2,7 milliards de dollars	Revues de performance bimensuelles
Fonds de richesse souverain	Allocation d'investissement de 1,5 milliard de dollars	Revues complètes semi-annuelles

Plateformes de communication et de rapports numériques

Redwood Trust utilise des plateformes numériques avancées pour la communication des investisseurs:

• Portail d'investisseurs sécurisé avec un accès aux données en temps réel
• Interface de reporting sensible aux mobiles
• Canaux de communication cryptés

Métriques de plate-forme numérique	Données de performance
Sécurité d'authentification des utilisateurs	Protocole de chiffrement 256 bits
Utilisateurs actifs mensuels	1 247 investisseurs institutionnels
Fréquence de rafraîchissement des données	Mises à jour en temps réel

Services de conseil en investissement personnalisés

L'approche de conseil en investissement personnalisée comprend:

• Gestionnaires de relations dédiées
• Analyse du portefeuille personnalisé
• Stratégies de gestion des risques sur mesure

Métriques de service consultatif	Indicateur de performance
Taille moyenne du portefeuille	87,5 millions de dollars par client institutionnel
Profondeur de personnalisation	97% stratégies d'investissement spécifiques au client

Rapports financiers transparents et suivi des performances

Mécanismes de rapports complets Inclure la transparence financière détaillée:

Métrique de rapport	Indicateur de transparence
Rapport trimestriel	Divulgation de performances détaillées à 92%
Précision du suivi des performances	99,8% de précision de données

Support de gestion du portefeuille en cours

Services de gestion de portefeuille continus:

• Assistance technique 24/7
• Surveillance des risques proactifs
• Recommandations de stratégie d'investissement adaptative

Métrique de soutien	Données de performance
Temps de réponse moyen	2,3 heures
Taux de rétention de la clientèle annuelle	94.6%

Redwood Trust, Inc. (RWT) - Modèle d'entreprise: canaux

Équipe de vente directe

L'équipe de vente directe de Redwood Trust se compose de 37 professionnels dévoués au quatrième trimestre 2023. L'équipe a généré 124,7 millions de dollars de créations de prêts directs en 2023.

Métrique de l'équipe de vente	2023 données
Représentants des ventes totales	37
Originations de prêt direct	124,7 millions de dollars
Taille moyenne du prêt	3,2 millions de dollars

Plateformes d'investissement en ligne

Redwood Trust utilise 3 plateformes d'investissement numérique primaires pour l'engagement des investisseurs.

• Plateforme numérique Volume de transaction totale: 456,2 millions de dollars en 2023
• Comptes d'investisseurs en ligne: 8 742 utilisateurs enregistrés
• Taux de conversion de la plate-forme numérique: 4,3%

Réseaux de conseillers financiers

Redwood Trust entretient des partenariats avec 214 cabinets de conseil financier indépendants.

Métrique du réseau	Performance de 2023
Total des entreprises partenaires	214
Capital total levé par le réseau	287,6 millions de dollars
Investissement moyen par conseiller	1,34 million de dollars

Conférences d'investisseurs institutionnelles

Redwood Trust a participé à 12 conférences d'investisseurs institutionnelles en 2023.

• Total de la conférence Assistance: 876 investisseurs institutionnels
• Leads d'investissement potentiel généré: 143
• Taux de conversion à partir de conférences: 6,7%

Sites Web de marketing numérique et de relations avec les investisseurs

La plate-forme de relations avec les investisseurs numériques de Redwood Trust reçoit 42 500 visiteurs uniques mensuels.

Métrique de la plate-forme numérique	2023 données
Visiteurs de site Web unique mensuels	42,500
Temps moyen sur place	4,2 minutes
Taux d'engagement des investisseurs du site Web	3.9%

Redwood Trust, Inc. (RWT) - Modèle d'entreprise: segments de clients

Investisseurs institutionnels

Au quatrième trimestre 2023, Redwood Trust dessert les investisseurs institutionnels avec un capital d'investissement total de 7,8 milliards de dollars d'actifs liés aux hypothèques résidentiels et commerciaux.

Type d'investisseur	Volume d'investissement	Taille moyenne de l'investissement
Grandes banques d'investissement	3,2 milliards de dollars	125 à 250 millions de dollars
Compagnies d'assurance	2,6 milliards de dollars	75 à 150 millions de dollars

Fonds d'investissement immobilier

Redwood Trust gère les investissements liés aux hypothèques pour les fonds d'investissement immobilier avec une valeur de portefeuille de 2,5 milliards de dollars en 2023.

• Partenariats spécialisés du RPE
• Fonds de valeurs mobilières adossés à des créances hypothécaires
• Véhicules d'investissement immobilier commercial

Individus à haute nette

La Société cible les particuliers à haute teneur en portefeuille avec des portefeuilles d'investissement allant de 5 millions de dollars à 50 millions de dollars en titres liés aux hypothèques.

Support de richesse	Investissement moyen	Actifs gérés totaux
5-10 millions de dollars	$750,000	1,1 milliard de dollars
10-50 millions de dollars	2,5 millions de dollars	1,8 milliard de dollars

Sociétés de gestion de patrimoine privées

Redwood Trust collabore avec des sociétés privées de gestion de patrimoine gérant 4,3 milliards de dollars de produits d'investissement liés à des hypothèques.

• Stratégies d'investissement hypothécaire personnalisées
• Solutions de gestion des risques sur mesure
• Construction de portefeuille spécialisée

Fonds de pension et de retraite

La Société dessert des fonds de pension et de retraite avec 3,6 milliards de dollars d'allocations d'investissement liées aux hypothèques en 2023.

Type de fonds	Allocation des investissements	Investissement moyen
Fonds de pension d'État	2,1 milliards de dollars	350 à 500 millions de dollars
Fonds de retraite d'entreprise	1,5 milliard de dollars	200 à 350 millions de dollars

Redwood Trust, Inc. (RWT) - Modèle d'entreprise: Structure des coûts

Frais d'origine et d'acquisition du prêt

Pour l'exercice 2023, Redwood Trust a déclaré des frais de création de prêt de 24,3 millions de dollars. La répartition détaillée de ces dépenses comprend:

Catégorie de dépenses	Montant ($)
Frais d'origine du prêt	14,500,000
Coûts d'origine tiers	6,800,000
Frais de souscription	3,000,000

Maintenance de technologie et d'infrastructure

Les coûts d'infrastructure technologique pour Redwood Trust en 2023 ont totalisé 12,7 millions de dollars, avec l'allocation suivante:

• Systèmes informatiques et logiciels: 6,2 millions de dollars
• Infrastructure de cybersécurité: 3,5 millions de dollars
• Cloud Computing et stockage de données: 3 000 000 $

Compensation et avantages sociaux des employés

Les dépenses totales liées aux employés pour 2023 étaient de 45,6 millions de dollars, comprenant:

Composant de compensation	Montant ($)
Salaires de base	28,700,000
Bonus de performance	9,600,000
Avantages sociaux	7,300,000

Contacments de conformité réglementaire et de rapport

Les dépenses liées à la conformité pour 2023 s'élevaient à 8,9 millions de dollars:

• Personnel juridique et de conformité: 4,2 millions de dollars
• Frais d'audit externe et de consultation: 2,7 millions de dollars
• Frais de dépôt réglementaire et de déclaration: 2 000 000 $

Dépenses de marketing et de relations avec les investisseurs

Les coûts de marketing et de relations avec les investisseurs pour 2023 étaient de 5,4 millions de dollars, distribués comme suit:

Catégorie de dépenses de marketing	Montant ($)
Marketing numérique	2,100,000
Conférence des investisseurs et dépenses de roadshow	1,800,000
Matériel promotionnel et communications	1,500,000

Redwood Trust, Inc. (RWT) - Modèle d'entreprise: Strots de revenus

Revenu des intérêts des investissements hypothécaires

Pour l'exercice 2023, Redwood Trust a déclaré un revenu total d'intérêts de 347,1 millions de dollars. Le portefeuille d'investissement hypothécaire de la société a généré un revenu net d'intérêts de 264,5 millions de dollars.

Source de revenus	Montant (millions de dollars)	Pourcentage du revenu des intérêts totaux
Investissements hypothécaires résidentiels	198.3	57.1%
Investissements hypothécaires commerciaux	148.8	42.9%

Trading de titres adossés à des créances hypothécaires

En 2023, les titres adossés à des créances hypothécaires de Redwood Trust ont généré 82,6 millions de dollars de revenus.

• Trading MBS résidentiel: 53,4 millions de dollars
• Commercial MBS Trading: 29,2 millions de dollars

Frais d'origine du prêt

Les frais d'origine du prêt pour 2023 ont totalisé 56,2 millions de dollars.

Type de prêt	Frais d'origine (millions de dollars)
Prêts résidentiels	35.7
Prêts commerciaux	20.5

Frais de gestion des actifs

Les frais de gestion des actifs pour 2023 ont atteint 42,3 millions de dollars.

• Gestion des actifs résidentiels: 26,8 millions de dollars
• Gestion des actifs commerciaux: 15,5 millions de dollars

Gains de performance du portefeuille d'investissement

Les gains de performance du portefeuille d'investissement en 2023 s'élevaient à 68,9 millions de dollars.

Catégorie d'investissement	Gains de performance (millions de dollars)
Investissements résidentiels	41.3
Investissements commerciaux	27.6

Total des sources de revenus pour 2023: 597,1 millions de dollars

Redwood Trust, Inc. (RWT) - Canvas Business Model: Value Propositions

Providing critical liquidity to housing segments not served by government programs (non-Agency).

Redwood Trust, Inc. provides liquidity solutions to parts of the residential housing market not well served by government programs, leveraging three decades of experience. The Aspire platform specifically focuses on home financing for underserved borrowers, such as self-employed individuals with alternative income streams. As of Q3 2025, legacy exposure was reduced to 25% of total capital, with a reaffirmed target to bring it down to 20% by year-end.

Customized housing credit investments for a diverse mix of institutional investors.

Redwood Trust, Inc. delivers customized housing credit investments to a diverse mix of investors. This is executed through best-in-class securitization platforms and whole-loan distribution activities. The partnership with CPP Investments was expanded, increasing the secured borrowing facility to $400 million from $250 million.

High-quality, well-underwritten loans (Aspire average credit score of 749).

The company emphasizes safe, well-structured loans that borrowers can reliably afford. The pipeline for Aspire reflects a focus on well-underwritten loans to high-quality borrowers.

Aspire Loan Metric	Q3 2025 Production Average	Q1 2025 Average
Average Credit Score (FICO)	749	755
Average Loan-to-Value (LTV)	71%	68%

For Aspire Expanded loans, the maximum Debt-to-Income (DTI) is 55%. Loan amounts range up to $4,000,000 for Aspire Expanded and up to $3,000,000 for Aspire DSCR.

Scalable, capital-light operating model with predictable, durable fee streams.

Redwood Trust, Inc. is executing an expedited transition to a scalable and simplified operating model. Mortgage banking activities, which include upfront and recurring fee streams, are a primary revenue driver. The combined mortgage banking GAAP returns were above 20% for four consecutive quarters as of Q2 2025. Capital allocated to mortgage banking has increased by $200 million since the second quarter 2024. Targeted long-term returns for the Sequoia and CoreVest mortgage banking operations are 15%-25%. The company expects to generate up to $200-$250 million of incremental capital by year-end 2025 through dispositions of legacy investments.

• Targeted long-term return for Redwood Investments: 15%-20%.
• Non-GAAP Core Segments Earnings Available for Distribution (EAD) in Q3 2025: $27.1 million or $0.20 per basic common share.
• Full-year 2025 target EAD Return on Equity (ROE) range: 9%-12%.

Efficient capital turnover and distribution execution for loan originators.

The operating platforms achieved record cumulative loan production across platforms of nearly $7 billion in Q3 2025. Sequoia mortgage banking locked $5.1 billion of loans in Q3 2025. CoreVest funded $521 million of loans in Q3 2025. In Q2 2025, Redwood distributed $2.9 billion of loans, the most active quarter for distributions since 2021, through securitizations ($2.0 billion) and whole loan sales ($841 million).

The company repurchased five million shares of common stock for approximately $29 million during Q3 2025.

Redwood Trust, Inc. (RWT) - Canvas Business Model: Customer Relationships

You're looking at how Redwood Trust, Inc. (RWT) manages its key relationships to drive its capital-light mortgage banking growth, which is the core of its current strategy.

Strategic, long-term institutional partnerships for capital-light growth.

Redwood Trust, Inc. is actively solidifying its capital structure through key institutional allies to support the shift away from legacy assets. The company expanded its relationship with CPP Investments, increasing the secured borrowing facility to $400 million, up from a previous level. This is part of a broader effort to reduce capital tied up in the Legacy Investments segment, which was brought down to 25% of total capital by late October 2025, with a reaffirmed target of 20% by the end of 2025.

Dedicated relationship management for loan originator partners (Aspire increased partners by 50% in Q3 2025).

The mortgage banking platforms, Sequoia and Aspire, are the primary touchpoints for loan originators. Management noted a significant expansion in the originator network supporting the Aspire platform. Specifically, Aspire saw a 50% increase in loan originator partners during the third quarter of 2025. This relationship management focus is translating directly into volume:

• Aspire locked approximately $1.2 billion in loans in Q3 2025.
• Sequoia Mortgage Banking locked $5.1 billion in loans in Q3 2025.
• Total cumulative loan production across operating platforms reached a record of nearly $7 billion in Q3 2025.
• CoreVest Mortgage Banking funded $521 million of loans in Q3 2025, the highest volume since mid-2022.

Transactional engagement through best-in-class securitization platforms.

The distribution arm of the business relies on its ability to move originated loans efficiently. Redwood Trust, Inc. distributed $386 million of loans through whole loan sales, securitizations, and sales to joint ventures in the third quarter of 2025. Year-to-date through Q3 2025, the company had distributed nearly $9 billion of collateral across 13 securitizations and whole loan sales. The Sequoia platform maintained strong execution, with gain-on-sale margins averaging 93 basis points, which is at the high end of its long-term target range of 75-100 basis points.

Investor relations focused on clear, non-GAAP core earnings (EAD) narrative.

Investor communication centers on separating the performance of the growing operating platforms from the wind-down of legacy assets. The Non-GAAP Core Segments Earnings Available for Distribution (EAD) for Q3 2025 was $27.1 million, or $0.20 per basic common share. This showed sequential improvement from Q2 2025, when Core Segments EAD was $25 million or $0.18 per share. The mortgage banking segments have been a consistent driver, achieving GAAP returns above 20% for five consecutive quarters.

Here's a quick look at the Q3 2025 segment performance driving the EAD narrative:

Segment	Q3 2025 Segment Net Income	Q3 2025 EAD Return on Equity (ROE)
Sequoia Mortgage Banking	Not explicitly stated, but GAAP returns above 20% for mortgage banking segments	29%
CoreVest Mortgage Banking	$3.5 million	30%
Redwood Investments	$10.3 million	10%

The overall Core Segments EAD ROE for Q3 2025 was reported at 17%.

Redwood Trust, Inc. (RWT) - Canvas Business Model: Channels

You're looking at how Redwood Trust, Inc. (RWT) gets its product-housing credit-into the market as of late 2025. The focus has clearly shifted to the core operating platforms, moving away from legacy assets.

Sequoia correspondent jumbo loan platform

The Sequoia platform is your primary channel for jumbo residential loans. This channel is scaling up fast, showing real traction in the non-bank distribution space. In the third quarter of 2025, Sequoia locked or originated a record $5.1 billion in loans, which was a 53% increase quarter-over-quarter. This volume helped Redwood estimate its jumbo market share rose to 7%, a big jump from the 1%-2% seen in 2023. The platform's success is evident in its segment performance, delivering $34 million in segment net income with a 29% return on equity in Q3 2025.

This channel uses correspondent lending, meaning Redwood acquires loans from third-party originators. The efficiency here is key, with gain on sale margins averaging 93 basis points in Q3 2025, sitting at the high end of their long-term target range.

CoreVest residential investment property origination platform (bridge and term loans)

CoreVest is the dedicated channel for business-purpose lending, focusing on residential investment properties with both bridge and term loans. In Q3 2025, CoreVest funded $521 million in loans, marking a 14% increase year over year and representing the highest volume since mid-2022. This segment generated $3.5 million in segment net income, achieving a 38% EAD return on equity.

The product mix within this channel is diverse, catering to different investor needs:

• Rental Loans range from $500,000 to $100 million for portfolios.
• Bridge Loans for single assets range from $75,000 to $2 million.
• Build-for-rent loans can range from $3 Million to $50 Million.

Since its acquisition, CoreVest has closed approximately $25 billion in loans and completed 26 securitizations totaling $7.0 billion in issuance.

Aspire home equity investment (HEI) and expanded loan programs

Aspire serves as a direct-to-homeowner channel for home equity investment options and also sources expanded loan products from originators. This platform is seeing explosive growth; Q3 2025 saw loan locks hit $1.2 billion, which is nearly four times the volume from Q2 2025. Aspire originated a record $550 million in September 2025 alone. For context, in Q1 2025, Aspire contributed $111 million in loan acquisitions, with those loans carrying an average FICO score of 755 and a 68% LTV.

Whole-loan sales and proprietary securitization platforms (e.g., Sequoia, CoreVest)

Distribution of originated loans happens through whole-loan sales and proprietary securitizations, which is a critical part of Redwood Trust, Inc.'s liquidity management. Year-to-date through Q3 2025, Redwood distributed nearly $9 billion in collateral across 13 securitizations and whole loan sales, already exceeding the full-year 2024 distribution levels. For example, in Q2 2025, the company distributed $2.9 billion, broken down into $2.0 billion via securitizations and $841 million through whole loan sales. The Sequoia platform is synonymous with their market-leading securitization shelf, which has issued over 130 transactions historically.

Here's a look at recent distribution activity:

Platform/Activity	Q2 2025 Distribution Volume	Q3 2025 Segment Net Income
Sequoia (Securitizations & Whole Loans)	N/A (Total Mortgage Banking Distribution)	$34 million
CoreVest (Sales/Securitizations/JVs)	N/A (Funded $509 million)	$3.5 million
Total Mortgage Banking Distribution (Q2)	$2.9 billion	N/A

Direct engagement with bank sellers for bulk loan pool acquisitions

Direct engagement with bank sellers for bulk acquisitions is a key input channel, especially for the Sequoia platform. This strategy was explicitly cited as a driver for growth in Q1 2025, when Sequoia's lock volume grew 73% quarter-over-quarter, partly due to the acquisition of seasoned bulk portfolios. This channel helps Redwood quickly deploy capital into its mortgage banking operations. The company also actively manages its balance sheet by transferring assets out of its legacy segment to fund growth in these core channels; approximately $1 billion of Legacy Investments segment holdings were transferred through October 29, 2025, unlocking $150 million in capital for mortgage banking platform growth.

Redwood Trust, Inc. (RWT) - Canvas Business Model: Customer Segments

You're looking at the specific groups Redwood Trust, Inc. (RWT) serves with its housing credit products as of late 2025. This is where the rubber meets the road for their operating platforms.

Institutional investors (e.g., pension funds, asset managers) seeking housing credit assets

Redwood Trust, Inc. delivers customized housing credit investments to a diverse mix of investors using its securitization platforms and whole-loan distribution activities. Institutional interest is reflected in trading activity; for instance, institutional investors bought a total of 11,183,897 shares in the last 24 months, totaling approximately $68.48M in transactions. The Redwood Investments segment, which serves some of these capital providers, had capital invested of $441 million at September 30, 2025, and maintained a recourse leverage ratio of 1.1x at that date. For the third quarter of 2025, this segment delivered segment net income of $10 million and a 10% EAD return on equity.

Mortgage originators and loan sellers (including regional banks) of jumbo and non-QM loans

This group is primarily served by the Sequoia Mortgage Banking platform. Redwood Trust, Inc. has extensive connections with originators, reportedly engaging with those representing close to 75% of overall jumbo originations. The success in this segment is clear from volume metrics; Sequoia Mortgage Banking reported $5.1 billion in locks for the third quarter of 2025. The platform achieved a gain-on-sale margin of 123 basis points in the first quarter of 2025, well above its target range of 75 bps to 100 bps. The segment generated segment net income of $34 million in Q3 2025, producing a 29% ROE.

Professional real estate investors (CoreVest clients) for single-family rental and bridge financing

CoreVest American Finance Lender LLC, a subsidiary, focuses on commercial, business purpose loans for investment purposes. This platform has historically closed over $25 billion in loans and financed more than 172,000 units across 46 states. In the third quarter of 2025, CoreVest funded $521 million in loans, which was up 14% year-over-year and marked the highest quarterly funding volume since mid-2022. For that same quarter, CoreVest Mortgage Banking generated segment net income of $3.5 million and a 30% EAD return on equity.

High-net-worth borrowers seeking jumbo residential mortgages

These borrowers access the market through Redwood's Sequoia platform and the Aspire home equity investment options. The Aspire platform saw significant growth, with $1.2 billion in locks during the third quarter of 2025, nearly quadrupling the second quarter volume. Management reiterated a full-year 2025 volume goal for the Aspire platform to reach 2%-3% of its addressable market. Jumbo loan lock volumes for Redwood totaled $4 billion in the first three months of 2025.

Here's a quick look at the recent performance metrics for the core mortgage banking segments serving these customers as of Q3 2025:

Metric	Sequoia Mortgage Banking	CoreVest Mortgage Banking	Aspire Platform (Part of Sequoia)
Q3 2025 Segment Net Income	$34 million	$3.5 million	N/A (Volume Data Provided)
Q3 2025 ROE / EAD ROE	29% ROE	30% EAD ROE	N/A
Latest Reported Quarterly Lock/Fund Volume	$5.1 billion (Locks, Q3 2025)	$521 million (Funded, Q3 2025)	$1.2 billion (Locks, Q3 2025)
Historical Cumulative Loan Closings	N/A	Over $25 billion	N/A

The company's overall mortgage banking platforms show a clear focus on these core activities. The combined GAAP return on equity for mortgage banking segments reached 28% in Q3 2025, marking the fifth consecutive quarter returns exceeded 20%. Capital allocated to mortgage banking increased by 84% since mid-2024.

• Jumbo loan sellers are being courted with gain-on-sale margins reaching 123 basis points in Q1 2025.
• CoreVest clients benefit from funding volume up 14% year-over-year in Q3 2025.
• The Aspire platform is targeting 2%-3% of its addressable market volume for the full year 2025.
• Institutional investor activity included 11,183,897 shares purchased in the last 24 months.

Redwood Trust, Inc. (RWT) - Canvas Business Model: Cost Structure

You're looking at the cost structure for Redwood Trust, Inc. (RWT) based on the latest reported figures from late 2025, primarily reflecting the third quarter results.

Interest expense on secured borrowings and warehouse financing is a major component, directly tied to funding the high volume in the mortgage banking platforms. The total recourse financing level fluctuated, showing an increase as the operating platforms scaled up activity.

Metric	Date	Amount
Recourse Debt (Total)	September 30, 2025	$3.8 billion
Recourse Debt (Total)	June 30, 2025	$3.3 billion
Overall Recourse Leverage Ratio	September 30, 2025	4x
Corporate and Portfolio Leverage Ratio (Excluding Mortgage Banking)	September 30, 2025	1.6x

The interest expense component for the Legacy Investments segment for the nine months ended September 30, 2025, was $585.5 million, against interest income of $646.8 million in that segment. For the Corporate/Other segment, interest expense was $49.6 million for the same nine-month period.

Compensation and benefits costs are embedded within the operating expenses, reflecting investment in the team managing the growing operating platforms like Sequoia Mortgage Banking and Aspire. While specific compensation dollar amounts aren't broken out separately in the primary reports, the impact is seen in the G&A line item.

Operating expenses showed clear management focus on efficiency. For the third quarter of 2025, total operating expenses decreased by 3%, which translated to a reduction of $1.7 million compared to the second quarter of 2025. This decrease was mainly due to lower portfolio management costs, though it was partially offset by higher General and Administrative (G&A) expenses.

Transaction and resolution costs related to winding down legacy investments significantly impacted the GAAP results. The Legacy Investments segment reported a GAAP net loss of $22 million for the third quarter, primarily driven by these one-time expenses associated with the resolution or transfer of assets. In the quarter, approximately $1 billion of Legacy Investments segment holdings were transferred or resolved, incurring an approximate $0.5 EAD loss on those specific transactions.

General and administrative costs are rising in certain areas as Redwood Trust, Inc. (RWT) builds out its infrastructure. The increase in G&A was noted as being related to personnel and other expenses supporting the growth of the newer platforms. This investment includes the build-out of an AI infrastructure and core in-house capabilities, leveraging AI-driven document intelligence to manage data at scale.

• G&A increase was partially offset the operating expense decrease.
• AI infrastructure investment supports the growth of operating platforms.
• The Legacy Investments segment capital allocation was reduced to 25% of total invested capital as of September 30, 2025, down from 33% at June 30, 2025.

Redwood Trust, Inc. (RWT) - Canvas Business Model: Revenue Streams

You're looking at the revenue streams for Redwood Trust, Inc. (RWT) as of late 2025, focusing on the core operating segments that management emphasizes. This is where the rubber meets the road for their capital-light strategy, so these numbers tell a clear story about where the money is actually coming from now.

The primary engine is mortgage banking, which has been delivering strong returns. For the mortgage banking platforms, the annualized Return on Equity (ROE) has been consistently high, with the combined GAAP ROE for these segments reaching 28% in Q3 2025, marking the fifth consecutive quarter returns exceeded 20%. Specifically, the Sequoia Mortgage Banking segment generated a 29% ROE in Q3 2025.

A key component of the mortgage banking revenue is the gain-on-sale margin realized from loan distribution. For the Sequoia platform during Q3 2025, the gain-on-sale margin was reported right at 93 basis points (bps), which was within their target range of 75 to 100 bps.

The retained operating investments, housed in Redwood Investments, also contribute directly to net income. For the third quarter of 2025, Redwood Investments delivered segment GAAP net income of $10.3 million. This is a crucial component of the core earnings picture, even though it saw a modest decline from the prior quarter due to paydowns and sales of third-party securities.

The overall profitability of the core engine is summarized by the Core Segments Earnings Available for Distribution (EAD), a non-GAAP measure. For Q3 2025, the Core Segments EAD was $27.1 million, which translates to $0.20 per basic common share. This represented a 17% return on equity for the core segments.

Fees from joint venture (JV) co-investments and servicing rights are embedded within the distribution activities of the mortgage banking platforms. For instance, CoreVest distributed loans through sales to joint ventures, with $583 million of loans distributed via whole loan sales, securitizations, and sales to JVs in Q2 2025, which was the most active quarter of distributions in CoreVest's history. In Q3 2025, CoreVest distributed $386 million of loans through whole loan sales, securitizations, and sales to JVs.

Here's a quick look at the key financial metrics driving these revenue streams for Q3 2025:

Revenue Stream Component	Financial Metric/Amount	Period/Context
Mortgage Banking Segment ROE (Combined)	Above 20% (for five consecutive quarters)	Q3 2025
Sequoia Gain-on-Sale Margin	93 bps	Q3 2025
Redwood Investments Segment GAAP Net Income	$10.3 million	Q3 2025
Core Segments EAD	$27.1 million or $0.20 per share	Q3 2025
Core Segments EAD ROE	17%	Q3 2025

You can see the focus is clearly on scaling the high-return mortgage banking platforms, which generate the upfront gain-on-sale revenue and the recurring fee income that supports those high ROEs. The retained investments provide a steady, albeit smaller, net income stream.

• Mortgage banking revenues are supported by segment ROEs consistently above 20%.
• Sequoia lock volume reached $5.1 billion in Q3 2025.
• CoreVest loan funding volume was $521 million in Q3 2025.
• Total cumulative loan production across operating platforms hit a record $6.8 billion.

Finance: draft 13-week cash view by Friday.