Redwood's estimated GAAP book value per share as of April 21, 2025, has increased by 1% to 1.5% from the previous quarter, reaching $8.39. The company has demonstrated strength in navigating the financial markets during the crisis period.
In terms of mortgage volume, Redwood has seen a significant increase in its jumbo lock volumes, which rose by 73% from the prior quarter to $4 billion. This marks the highest quarterly volume since the third quarter of 2021. Additionally, the acquisition of large, seasoned loan pools from both money-center and regional banks has driven an annualized return on equity (ROE) of 28% for the first quarter of 2025, with margins remaining above the historical target range.
Redwood's strategic objectives have begun to take hold, as evidenced by the growth in quarterly flow production and the acquisition of large loan pools. The company's business lines, including the flagship qualified mortgage correspondent jumbo loan business under the Sequoia brand, the Aspire platform encompassing non-QM consumer correspondent business and home equity investment options, and the CoreVest platform for lending directly to housing investors, collectively offer the broadest suite of non-agency products available in the marketplace.
The company has also announced a streamlining of its mortgage banking businesses, with a focus on strengthening its position in the market. The recent dynamics in housing finance policy in Washington have the potential to create a significant greenfield for Redwood's platform, particularly in light of aggressive restructuring at the GSEs and potential reorientation toward their core housing missions. Redwood is positioned to advocate for private sector solutions and serve homebuyers in the event of a shift in the GSE footprint and long-term structural changes.
Today the company's shares have moved 4.8% to a price of $5.73. For the full picture, make sure to review Redwood Trust's 8-K report.
