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.
jumbo mortgagefinancial
A jumbo mortgage is a home loan larger than the maximum amount that government-backed agencies will buy, so it doesn’t fit into the “standard” pool of mortgages. Because it can’t be easily bundled and sold to those agencies, it usually carries stricter approval rules and sometimes higher interest, which matters to investors because these loans affect lenders’ risk, bond supply, and yields tied to higher-end housing markets.
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.
servicerfinancial
An entity that handles the day-to-day administration of loans or other financial assets on behalf of lenders or investors. Like a property manager for a building, a servicer collects payments, monitors accounts, enforces contract terms, handles missed payments and borrower communications; its efficiency and practices directly affect cash flow, credit quality and recovery prospects, so investors watch servicers for operational and performance risk.
structuring agentfinancial
A structuring agent is the firm or professional who designs and assembles complex financial products—such as securitizations or structured notes—by choosing the pieces, setting terms and coordinating legal, accounting and underwriting work. Think of them as the architect and project manager for a financial package; their choices determine how cash flows, risk and fees are split, which directly affects the product’s credit profile, pricing and transparency for investors.
bookrunnerfinancial
A bookrunner is the lead bank or financial firm that organizes and manages a new securities offering, acting like a project manager who sets the price range, collects investor demand, and decides how shares are allocated. For investors, the bookrunner’s choices and reputation influence the final price, how many shares each buyer receives, and the overall chance the deal succeeds — similar to how a trusted referee shapes a fair and well-run auction.
rating agencyfinancial
A rating agency is an independent firm that evaluates and scores the creditworthiness of borrowers — including companies, governments, and debt issues — on a simple scale so investors can gauge risk. Think of it as a reviewer who assesses how likely a borrower is to repay money; those scores influence interest rates, investment rules, and how safe a security appears in a portfolio.
underwritingfinancial
Underwriting is the process where a financial institution agrees to buy and then resell new stocks or bonds to investors. It matters because it helps companies raise money quickly and smoothly, while the bank takes on the risk of selling those securities at the agreed price. Think of it like a booker guaranteeing to sell all tickets for a concert before opening the doors.
MILL VALLEY, Calif.--(BUSINESS WIRE)--
Redwood Trust, Inc. (NYSE: RWT; “Redwood” or the “Company”), a leader in expanding access to housing for homebuyers and renters, today announced the closing of SEMT 2026-MED1, the inaugural Medical Professionals loan securitization issued through Sequoia, Redwood’s jumbo mortgage platform.
The $482 million transaction marks Sequoia’s 165th securitization and represents an important milestone for the platform as a first-of-its-kind securitization backed by medical professional loans. With this issuance, Sequoia has now completed securitizations backed by nine distinct product types. After a landmark year in 2025, SEMT 2026-MED1 marks Sequoia’s eighth securitization closed in the first quarter of 2026.
“Sequoia has been a leading provider of liquidity to the jumbo mortgage market for decades, and this transaction underscores Redwood’s continued leadership and latest innovation in the sector,” said Christopher Abate, Chief Executive Officer. “As the housing market evolves, we remain focused on developing specialized solutions that meet the changing needs of homebuyers while expanding access to housing credit. Our Medical Professionals program is a compelling product for originators to offer their customers, and represents an attractive asset that we can acquire in both seasoned pools and on-the-run current production.”
The Sequoia Medical Professionals program is a specialized product designed to provide flexible underwriting that recognizes the strong long-term earnings potential and unique financial profiles of medical professionals, particularly those early in their careers. The program officially launched in December 2025 and has since been rolled out across Sequoia’s extensive network of bank and non-bank loan sellers.
Key Highlights of SEMT-MED1
Transaction Volume: $482 million
Loan Count: 607
Average Borrower Credit Score: 769
Weighted Average Combined Loan-to-Value Ratio: 94.8%
Servicer: Select Portfolio Servicing
The transaction is rated by Fitch Ratings, Inc. and Kroll Bond Rating Agency, LLC
Wells Fargo & Company was sole-structuring agent and sole-bookrunner for the issuance. Morgan, Lewis & Bockius LLP provided legal counsel on behalf of Sequoia. Hunton Andrews Kurth LLP provided legal counsel to Wells Fargo & Company.
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.
