Redwood Trust Closes Jumbo Prime Securitization

Redwood Trust Inc. has closed a $238 million prime jumbo residential mortgage loan securitization sponsored by its wholly owned subsidiary, RWT Holdings Inc.

As previously reported, the mortgage loans underlying the securitization were originated during 2009 by CitiMortgage Inc. The securities that were publicly offered were sold to institutional investors by the underwriters of the offering, which included Citigroup Global Markets Inc. and JPMorgan Securities Inc., with Citigroup Global Markets acting as the lead managing underwriter. The most senior securities issued in the securitization, representing 93.5% of the principal amount of the securitization, were AAA-rated by Moody's Investors Service Inc.

"This transaction has broken the ice in the private mortgage securitization market, which has been essentially frozen since 2008," says Brett Nicholas, chief investment officer and co-chief operating officer of Redwood Trust. "While we take some satisfaction from completing this transaction and re-engaging Redwood in a key aspect of its core business of structuring and investing in residential credit risk, there is still more to do to fully reopen this market."

Redwood's chairman and CEO, George E. Bull III, notes the securitization would not have been possible without broad industry efforts to revive a private securization market for prime mortgages.

"Redwood appreciates the support provided by the triple-A investor community and the efforts of the American Securitization Forum and its members, including through the ASF's "Project Restart,' all of which were important to the return of this securitization market," Bull says.

SOURCE: Redwood Trust Inc.


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