Point and Redwood Trust Announce Issuance of $146 Million Securitization of Property Equity Investments

The securitization is structured as approximately $120 million unrated senior class A-1 securities and approximately $26 million unrated A-2 securities. Nomura Securities International Inc. was the sole structuring agent and sole bookrunner for the issue.

“Homeowners across the country are turning to home equity investments (“HEIs”) in record numbers to unlock more 20 trillion dollars of illiquid wealth tied up in their homes,” said Eddie Lim, co-founder and CEO of Point. “This securitization, the first of its kind, is a testament to the investments we have made in Point’s technology platform, owner education and transparent execution. By providing liquidity to existing investors and access to SEEs for new investors, securitization will help enable Point to help more owners improve their financial health.”

Prior to this securitization, investors relied on fund vehicles and forward purchase agreements to deploy capital into the HEI asset class. This securitization structure means greater liquidity for issuers and unique access to assets for end investors.

Bo SternHead of Portfolio Strategy and Risk for Redwood Trust, said: “We are delighted to co-sponsor the first securitization of home equity investments. This inaugural transaction opens a new door for investors to access one of the largest investment markets in the world, while allowing owners to participate in the benefits of real estate price appreciation without having to sell their home. . SEEs also represent a significant new market opportunity for Redwood as we continue to scale and diversify our revenue streams and disrupt the housing market. Our collaboration with Point strengthens our continued ability to pilot innovative technology in housing finance and create more financing alternatives for homeowners. »

SEEs are an important new type of equity financing for owners and have grown in popularity in recent years. Homeowners value not having to face a monthly repayment obligation and the risk-sharing structure allows investors and homeowners to share in house price changes. Housing economists have for many years made the case for HEIs as drivers of housing finance stability.

About the stitch
Point makes it easier for all owners to unlock their capital. With a Home Equity Investment (HEI) from Point, homeowners can eliminate debt, weather difficult financial times and diversify their wealth. For investors, Point provides access to a previously untapped asset class in the residential real estate space. Founded in 2015 by Eddie Lim, Eoin Matthews and Alex Rampell, Point is backed by top investors including Andreessen Horowitz, Ribbit Capital, Greylock Partners, Bloomberg Beta, Redwood Trust, Atalaya Capital Management, Kingsbridge Wealth Management and Prudential. For more information, please visit www.point.com.

About Redwood Trust
Redwood Trust, Inc. (NYSE: RWT) is a specialty finance company focused on several distinct areas of mortgage lending. Our operating platforms occupy a unique position in the housing finance value chain, providing liquidity to growing segments of the US real estate market not served by government programs. We offer personalized mortgage investments to a diverse range of investors, thanks to our best-in-class securitization platforms; full loan distribution activities; and our publicly traded shares. Our consolidated investment portfolio has evolved to incorporate a diverse mix of residential, commercial and multi-family investments. 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-driven scale. Since our IPO in 1994, we have managed our business through several cycles, building a track record of innovation and a top notch reputation for service and a common sense approach to investing in credit. Redwood Trust is internally managed and structured as a Real Estate Investment Trust (“REIT”) for tax purposes. For more information about Redwood Trust, visit our website at www.redwoodtrust.com or join us on LinkedIn, TwitterWhere Facebook.

contacts

For Point:
Ray Young
Razor Sharp PR
Telephone: 512-633-6855
E-mail: [email protected]

For Redwood Trust:

Investor Relations
Lisa Hartman – SVP, Head of Investor Relations
Phone: 866-269-4976
E-mail: [email protected]

Media Relations
Sard Verbinnen & Co
E-mail: [email protected]

SOURCERedwood Trust, Inc.

Related links

www.redwoodtrust.com

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