Redwood Trust Stock Price, News & Analysis

Redwood Trust, Inc. (NYSE: RWT) and Point announced the successful completion of the first securitization entirely backed by residential Home Equity Investment (HEI) agreements, totaling approximately $146 million. The transaction, known as Point Securitization Trust 2021-1, finalized on September 23, 2021, features $120 million of unrated senior class A-1 securities and $26 million of unrated class A-2 securities. This innovative deal aims to enhance liquidity for investors while providing a new avenue for homeowners to benefit from their home equity without selling their properties.

Redwood Trust (NYSE: RWT) announced its investment in Flock Homes, a real estate technology startup that modernizes rental ownership. This strategic investment, executed through RWT Horizons, aims to bring innovation to the rental market by allowing property owners to convert rentals into shares in a managed portfolio, enhancing liquidity and reducing tax burdens. Chief Investment Officer Ryan McBride highlighted Flock's potential to transform rental property ownership, particularly for small to mid-size landlords. With Flock's technology, owners can optimize their investments and effectively manage risks.

Redwood Trust (NYSE: RWT) has announced a groundbreaking securitization, SEMT 2021-6, priced at $449 million and backed by 497 jumbo residential loans. This is the first non-Agency residential mortgage-backed securitization leveraging blockchain technology, aimed at enhancing reporting efficiency. By partnering with Liquid Mortgage, Redwood plans to provide daily loan-level payment data, promising greater transparency. This initiative marks a significant step towards fully digitized and tokenized mortgages, addressing inefficiencies in the mortgage lifecycle.

Redwood Trust (NYSE: RWT) announced the pricing of CoreVest's inaugural securitization of bridge loans on transitional housing assets, totaling $270 million. This securitization, CAFL 2021-RTL1, includes loans secured by various property types and offers a 30-month reinvestment feature. Additionally, Redwood disclosed the hiring of Marc Heenan as Senior Vice President of Lender Partnerships to expand CoreVest's correspondent channel for business-purpose loans. The securitization reflects strong market interest and diversifies Redwood's investment portfolio.

Redwood Trust, Inc. (NYSE: RWT) has announced a 17% increase in its quarterly dividend, now at $0.21 per share, effective for the third quarter of 2021. This marks the 89th consecutive quarterly dividend and demonstrates the company's financial strength. The dividend is payable on September 30, 2021, to stockholders on record as of September 23, 2021. CEO Christopher J. Abate emphasized the importance of the dividend in delivering total returns to shareholders and the company’s sound financial strategy.

Redwood Trust, Inc. (NYSE: RWT) has formed a strategic investment partnership with Frontiers Capital to enhance its venture investment strategy, RWT Horizons. This collaboration will focus on investing in early-stage startups within frontier technologies such as AI, machine learning, and blockchain. The partnership aims to provide new sourcing channels for technology investments and complements RWT Horizons' existing strategy, which has previously invested in eight early-stage companies. The goal is to disrupt the mortgage finance industry by leveraging innovative technologies.

Redwood Trust (NYSE: RWT) announces a hybrid Investor Day on September 14, 2021, at 11:00 a.m. Pacific Time / 2:00 p.m. Eastern Time in New York City. Senior leadership will present, followed by a Q&A session. The event will cover key topics such as the 'Future of Housing Finance,' featuring industry experts including Michael Bright and Armando Falcon. A live video webcast will be available on Redwood's website, with a replay accessible afterward. Redwood Trust focuses on housing credit investments, aiming for attractive returns for shareholders.

Redwood Trust, Inc. (NYSE: RWT) announced the appointment of its President, Dashiell Robinson, to the Board of Directors, effective August 27, 2021. Robinson, who joined Redwood in 2017 from Wells Fargo Securities, has significantly contributed to the company's strategic vision in housing finance. Richard D. Baum, Chairman of the Board, emphasized Robinson's crucial role, while CEO Chris Abate noted the strengthened expertise on the Board. Redwood Trust focuses on enhancing housing access, providing liquidity, and delivering customized credit investments.

Redwood Trust (NYSE:RWT) reported a strong second quarter for 2021, with GAAP net income of $90 million ($0.66/share) and a 6.5% increase in GAAP book value to $11.46. The company achieved an annualized return on equity of 29% and an economic return on book value of 8.2% for Q2. Business purpose loans rose 37% to $527 million, while jumbo residential loan locks reached $3.9 billion. A quarterly dividend of $0.18/share was declared, with coverage at 4.5x.