Company: RWT-PA
Filing Date: 2025-04-01
Form Type: DEF 14A
Source: 0000930236-25-000012
Chunk: 65

Company: REDWOOD TRUST INC
Filing Date: 2025-04-01
Form: DEF 14A
Chunk 65
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 financing, liquidity and financial risk management resulted in: successful completion of a senior notes offering in early 2024, followed by a second senior notes offering in June 2024; issuance of additional convertible debt through the reopening of Redwood’s outstanding series of convertible senior notes due in 2027; a significant reduction in the outstanding balance of debt maturing through year-end 2026; establishment of strategic capital relationship with the Canada Pension Plan (“CPP”), which included a secured corporate financing facility with a total capacity of up to $250 million and a $500 million asset joint venture to invest across the broad suite of CoreVest originated bridge and term loans; establishment and renewal of various secured financing lines, including to increase the investment capacity of the CPP joint venture to $1.5 billion; completing an inaugural securitization of CPP joint venture assets; and unlocking significant capital for reinvestment through securitization of portfolio assets.

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Goal – CoreVest Mortgage Banking : Execute on strategic initiatives related to growth and increasing the profitability of Redwood’s CoreVest Mortgage Banking business – including initiatives related to product focus, origination volumes, distribution strategy, expense structure, and resolution of special assets – 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 CoreVest Mortgage Banking business resulted in: an overall increase in loan fundings of 9% compared to 2023; establishment of relationships with insurance company capital and sale of more than $300 million of CoreVest originated loans to insurance company portfolios; the sale of more than $800 million of CoreVest originated loans to joint ventures; establishment of additional relationships with whole-loan buyers of CoreVest-originated loans, further diversifying loan distribution channels alongside continued distribution through securitization transactions; successful focus on origination and distribution of single-asset bridge loans, with record quarterly funding levels for this product across 2024; a meaningful increase in origination of debt-service coverage (“DSCR”) loans; enhanced non-performing loan asset management staffing and increased resolutions and line-of-sight to resolutions of special assets; and rationalization of workforce and expense structure, including increased cross-training across product line, resulting in a return to profitability for this business segment.

Goal – Sequoia Mortgage Banking : Execute on strategic initiatives responsive to evolving consumer residential mortgage market – including initiatives