Joint VentureApr 29, 2026, 08:34 AM
RWT, Castlelake Form JV to Buy up to $8B Prime Jumbo Loans
AI Summary
Redwood Trust Inc. and Castlelake, L.P. announced a strategic joint venture to support the growth of Redwood's Sequoia platform. The venture plans to purchase up to $8 billion of Sequoia-sourced prime jumbo mortgage loans, with flexibility for future scaling and acquisition of seasoned loans. Sequoia will be responsible for sourcing, aggregating, and diligencing the loans, while Castlelake provides programmatic purchasing power and capital.
Key Highlights
- Redwood Trust (RWT) and Castlelake formed a strategic joint venture.
- The JV aims to purchase up to $8 billion of Sequoia-sourced prime jumbo mortgage loans.
- The venture has flexibility to scale and acquire seasoned loans from bank balance sheets.
- Redwood's Sequoia platform will source, aggregate, and diligence the loans.
- Sequoia's loan acquisition volumes more than doubled over the past year.
- Sequoia has purchased approximately $100 billion of loans and securitized over $50 billion.
- Castlelake has acquired or financed over $10 billion in residential and commercial loans since 2024.