Company: RWT-PA
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0000930236-25-000029
Chunk: 171

Company: REDWOOD TRUST INC
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 1
Chunk 171
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 months ended June 30, 2025, with the second quarter locks reaching $330 million, a 197% increase from the prior quarter. Aspire’s seller network increased by 60% during the second quarter to approximately 40 originators, and over 85% of these sellers also do business with Sequoia. Aspire also completed its first whole loan sale during the second quarter of 2025, marking a key milestone as the platform scales into an expanding non-QM market.

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Key performance trends such as gain-on-sale margins, cost per loan, and operating efficiency followed a similar trajectory in the year-to-date comparison as observed in the quarter-over-quarter period, with both timeframes reflecting elevated margins, stable efficiency metrics (as measured primarily by cost per loan), and scaled distribution execution.

Distribution activity in the six months ended June 30, 2025 was elevated across securitization and whole loan activity with $4.9 billion distributed relative to $2.8 billion for the period ended June 30, 2024. Sequoia also sustained its leadership in the private-label RMBS market. Through the first half of 2025, it remained the top non-bank issuer of jumbo mortgage-backed securities, executing approximately 40% of non-bank jumbo securitization activity and operating with turn times twice as fast as peers.

Operating expenses increased to $16 million year-to-date, up from $11 million in the prior-year period. The increase reflects higher loan acquisition costs and volume-based variable compensation as loan activity scaled. Provision for income taxes increased from $3 million to $17 million, aligning with improved profitability.

Capital allocated to the Sequoia Mortgage Banking segment rose to $475 million at June 30, 2025, up from $300 million at June 30, 2024, consistent with the segment's growth trajectory and expanded pipeline.

CoreVest Mortgage Banking Segment

This segment consists of a platform that originates residential investor loans for subsequent securitization, sale, or transfer into our investment portfolio or into joint ventures. Residential investor loans are loans to investors in single-family rental and multifamily properties, which we classify as either "term" loans (which include loans with maturities that generally range from three to thirty years) or "bridge" loans (which include loans with maturities that generally range between six and 36 months). Term loans are mortgage loans secured by stabilized residential real estate (primarily 1-4 unit detached