Redwood Trust Plans More Private-Label RMBS Offerings

Posted by Orb Staff on February 29, 2012 No Comments
Categories : Residential Mortgage

11021_redwoodtrust Redwood Trust Plans More Private-Label RMBS Offerings Redwood Trust Inc., headquartered in Mill Valley, Calif., is planning to complete four to six new private-label residential mortgage-backed securities (RMBS) issues this year.

According to a report in the Marin Independent Journal, Redwood Trust CEO Martin Hughes informed shareholders in a letter that the company was ‘continuing to build our businesses in an uncertain economic environment that includes the government's 'uber' presence in the residential mortgage markets.’ Hughes added that the outstanding level on private-label RMBS has dropped from $2.2 trillion in 2007 to the current level of approximately $1 trillion.

Hughes stated that Redwood is planning to acquire approximately $2 billion in residential home loans for its RMBS offerings. The company put forth its most recent RMBS issue last month.

‘Our core strength is a deep knowledge of residential and commercial credit and structuring,’ Hughes wrote.

Separately, Redwood Trust closed 2011 with a reported net loss of $3 million during the fourth quarter and an estimated taxable loss of $1 million during the same period.

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