Castlelake and Redwood Trust have formed a strategic joint venture that will buy up to $8 billion of prime jumbo mortgage loans sourced through Redwood’s Sequoia platform.
Redwood said Sequoia’s loan acquisition volumes have more than doubled over the past year as it has continued to gain share in the jumbo market. The company did not give the prior-year dollar amount, but it did say Sequoia has historically purchased roughly $100 billion of loans and securitized more than $50 billion.
The new venture gives Castlelake programmatic purchasing power for fully documented prime jumbo loans and allows it to scale into seasoned loans from bank balance sheets as opportunities arise. Redwood said Sequoia will source, aggregate and diligence loans that meet the venture’s eligibility criteria.
For Castlelake, the deal extends a residential credit push that has already topped $10 billion in residential and commercial loans acquired or financed since 2024. Castlelake also said it manages about $36 billion of assets and has roughly 250 employees, including 90 investment professionals, across eight offices.
Redwood framed the venture as part of a broader growth strategy for Sequoia, which it described as one of the longest-tenured non-agency correspondent platforms in the industry, dating back to Redwood’s founding in 1994. Following these announcements, the company's shares moved 0.17%, and are now trading at a price of $5.71. If you want to know more, read the company's complete 8-K report here.
