Redwood Trust Inc was incorporated in the State of Maryland on April 11, 1994, and commenced operations on August 19, 1994. The Company, together with its subsidiaries, is an internally-managed specialty finance company focused on engaging in residential and commercial mortgage banking activities and investing in mortgage- and other real estate-related assets. It seeks to invest in real estate-related assets that have the potential to generate attractive cash flow returns over time and to generate income through mortgage banking activities. The Company operates business in three segments: residential mortgage banking, residential investments, and commercial mortgage banking and investments. The residential mortgage banking segment consists of operating a mortgage loan platform. This platform is engaged in the business of acquiring residential loans from third-party originators and then selling, financing, or securitizing those loans with the intent of profiting from these activities. The residential investments segment includes a portfolio of investments in residential mortgage-backed securities retained from Sequoia securitizations, as well as residential mortgage-backed securities issued by third parties. This segment also includes mortgage servicing rights (MSRs) associated with residential loans securitized through Sequoia program and MSRs purchased from third parties. The commercial mortgage banking and investments segment consists of commercial mortgage banking operations as well as its portfolio of held-for-investment commercial real estate loans. It operates as a commercial real estate lender by originating mortgage loans and providing other forms of commercial real estate financing. The Company is subject to competition in seeking investments, originating commercial loans, acquiring residential loans for securitization, engaging in securitization transactions, selling loans, and in other aspects of its business.
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