Redwood Trust Announces Closing of Aspire's Inaugural Non-QM Securitization
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non-qualified mortgagefinancial
A non‑qualified mortgage is a home loan that does not meet the standardized rules meant to protect borrowers and lenders, so it falls outside the government or agency “qualified” loan category. Because these loans often carry higher interest, looser underwriting, or unusual features, they behave more like a used car sold without a warranty—riskier for lenders and investors, and more sensitive to defaults or price swings in mortgage-backed securities.
non-QMfinancial
A non-QM (non‑qualified mortgage) is a home loan that doesn't meet the standard rules used to classify mortgages as “qualified” for borrower protections and simplified lender underwriting. Think of it like a custom suit versus an off‑the‑rack one: it can fit unusual borrower situations (self‑employed income, irregular earnings, or unique property types) but carries higher risk and typically higher interest and fees. Investors care because non‑QM loans can offer higher returns but also greater default and valuation uncertainty, affecting portfolios, credit lines, and secondary market demand.
securitizationfinancial
Securitization is when a bank or company takes a bunch of loans or assets, like mortgages or car loans, and bundles them together into a single package. They then sell pieces of this package to investors, who receive regular payments from the borrowers. This process helps the original lender get money quickly and spreads the risk among many investors.
combined loan-to-value ratiofinancial
Combined loan-to-value ratio (CLTV) measures the total debt secured by a property — adding all mortgages and liens — as a percentage of the property's appraised value. Think of it as how much of a home's price is covered by borrowed money; a higher CLTV means less owner equity and greater vulnerability if prices fall. Investors use it to gauge credit risk, expected recovery in defaults, and likely borrowing costs tied to a property or mortgage-backed asset.
MILL VALLEY, Calif.--(BUSINESS WIRE)--
Redwood Trust, Inc. (NYSE: RWT; “Redwood,” the “Company”), a leader in expanding access to housing for homebuyers and renters, today announced the closing of SPIRE 2026-1, the inaugural non-qualified mortgage (“non-QM”) securitization issued through Aspire, Redwood’s non-QM mortgage banking platform. The $391 million transaction marks an important milestone in Aspire’s strategy to diversify its funding sources and expand its capital markets platform. Built on Redwood’s decades of residential credit experience, Aspire supports a broad seller base and provides competitive pricing, streamlined operations, and a comprehensive suite of non-QM solutions tailored to the evolving needs of borrowers and investors.
“We are thrilled to officially launch Redwood’s third securitization shelf with Aspire’s inaugural securitization,” said Dash Robinson, President of Redwood. “Aspire’s success reflects the strength of Redwood’s reputation as a leading provider of liquidity to the non-agency mortgage market and the quality of Aspire’s product suite. This momentum has been further supported by Aspire’s ability to leverage the longstanding originator relationships, capital markets expertise, and operational infrastructure developed through Redwood’s Sequoia platform, enabling us to scale efficiently and execute with institutional discipline from day one.”
Since launching in early 2025, Aspire has rapidly become one of the largest and most trusted non-QM correspondent platforms in the market. Over the past year, the platform has locked more than $3 billion in production across DSCR and expanded-credit programs, reflecting strong demand from bank and non-bank originators.
“As we celebrate this milestone, we remain focused on expanding Aspire’s capabilities, further growing our distribution channels, and strengthening our relationships with originators nationwide,” said Jason Kopcak, Head of Aspire. “With established whole loan and securitization execution channels now in place, we are expanding how we deliver liquidity to this growing segment of the non-agency market. We look forward to building on this momentum in 2026 and beyond.”
Key Highlights of SPIRE 2026-1
Transaction Volume: $391 million
Loan Count: 752
Average Borrower Credit Score: 754
Weighted Average Combined Loan-to-Value Ratio: 69.79
Servicer: Select Portfolio Servicing
The transaction is rated by S&P Global, Inc., Fitch Ratings, Inc. and Kroll Bond Rating Agency, LLC
Morgan Stanley & Co. LLC was sole-structuring agent and sole-bookrunner for the issuance. Morgan, Lewis & Bockius LLP provided legal counsel on behalf of Aspire and Hunton Andrews Kurth LLP provided legal counsel to Morgan Stanley & Co. LLC.
About Redwood Trust
Redwood Trust, Inc. (NYSE: RWT) is a specialty finance company focused on several distinct areas of housing credit where we provide liquidity to growing segments of the U.S. housing market not well served by government programs. We deliver customized housing credit investments to a diverse mix of investors, through our best-in-class securitization platforms, whole-loan distribution activities, joint ventures and our publicly traded shares. We operate through three core residential housing-focused operating platforms — Sequoia, Aspire, and CoreVest — alongside our complementary Redwood Investments portfolio which is primarily composed of assets we source through these platforms. In addition, through RWT Horizons®, our venture investing initiative, we invest in early-stage companies that have a direct nexus to our operating platforms. Our goal is to provide attractive returns to shareholders through a stable and growing stream of earnings and dividends, capital appreciation, and a commitment to technological innovation that facilitates risk-minded scale. Redwood Trust is internally managed and structured as a real estate investment trust ("REIT") for tax purposes. For more information about Redwood, please visit our website at www.redwoodtrust.com or connect with us on LinkedIn.
