Company: RWT-PA
Filing Date: 2025-04-01
Form Type: DEF 14A
Source: 0000930236-25-000012
Chunk: 66

Company: REDWOOD TRUST INC
Filing Date: 2025-04-01
Form: DEF 14A
Chunk 66
---
 related to deepening relationships with banks, growing business activity under our Aspire initiative related to expanded prime mortgage loans and home equity investments (“HEI”) – while maintaining risk and operational discipline and seeking synergies with other business units within Redwood.

The Committee evaluated achievement of this goal in the context of various factors, including that during 2024 management’s initiatives relating to the Sequoia Mortgage Banking business resulted in: a greater than 150% increase in loan volume compared to 2023, significantly increasing overall market share; continued focus on relationships with banks, resulting in both enhanced acquisition and disposition channels for residential consumer mortgage loans; issuance of the highest number of residential consumer mortgage loan securitization transactions under the SEMT® brand since 2013 and 2018; a four-fold increase in whole-loan sales, an important distribution channel that balances reliance on the securitization market; the launch of our closed-end second mortgage loan acquisition initiative; responding to the evolving needs of the housing market through expansion of our Aspire initiative, which included establishing a footprint to directly originate HEI in more than ten states, and creating the infrastructure for new expanded prime product launches to commence in early 2025; and the successful leveraging of existing Sequoia operational staff to support Aspire initiatives, enhance efficiency, reduce cost-per-loan and increase profitability of this nosiness segment.

Goal – Investment Portfolio : Within Redwood’s Investment Portfolio pursue investing strategies complementary to Redwood’s mortgage banking businesses and generate net interest income to support regular quarterly dividends, proactively monitor markets for relative value opportunities in non-Agency mortgage credit, including interest-only securities and third-party issued residential consumer mortgage credit investments, and deploy capital within established guidelines, including relating to duration and use of leverage.

The Committee evaluated achievement of this goal in the context of various factors, including that during 2024 management’s actions related to portfolio investments resulted in: deployment of more than $500 million of capital into high-conviction strategies with attractive target yields, with an appropriate mix of third-party sourced investments and assets created from Redwood’s mortgage banking businesses; continuing generation of meaningful levels of net interest income supportive of quarterly dividends; and maintenance of discipline around the duration, liquidity and leverage profile targeted for deployment during 2024.

<div align='center'>64</div>

Goal – Human Capital : Support near- and long-term business and strategic goals and initiatives through strong human capital management and engagement initiatives; and continue to invest in training, programs, and mentorship efforts that contribute to