Redwood Trust Inc. has closed its first securitization backed by single-family rental (SFR) loans since its Oct. 15 acquisition of CoreVest American Finance Lender LLC, a leading nationwide originator of business-purpose residential loans (BPLs).
The transaction, CAFL 2019-3, closed on Nov. 14 and was both the tenth and largest securitization for CoreVest since it launched its first deal in 2015. Separately, Redwood closed its 103rd Sequoia securitization, SEMT 2019-5, backed by a pool of Redwood Select jumbo loans.
“A significant strategic element of the acquisition of CoreVest is their best-in-class SFR securitization platform,” said Christopher Abate, CEO at Mill Valley, Calif.-based Redwood Trust. “We are excited to now have the two largest and most highly-regarded issuance platforms in the housing market as part of the Redwood family. The ability to simultaneously market and successfully close two distinct offerings under our CoreVest and Sequoia brands further solidifies our conviction that the combined power of our operational platforms will accelerate our strategy to grow profitably and organically generate assets with attractive risk adjusted returns.”
CoreVest CEO Elizabeth O'Brien added, “Closing our tenth deal as part of the Redwood family underscored the strength of investor demand both from our traditional base and the expanded number of investors focused on residential credit. As the single-family rental market continues to mature, we look forward to continuing to provide attractive assets to this market.”