Company: RWT-PA
Filing Date: 2025-04-01
Form Type: DEF 14A
Source: 0000930236-25-000012
Chunk: 32

Company: REDWOOD TRUST INC
Filing Date: 2025-04-01
Form: DEF 14A
Chunk 32
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A combination of growth, scale and hedging contributed to ongoing improvement in overall efficiency metrics: our 2024 cost per loan of 29 basis points was significantly lower than 2023 (a 59% improvement) and better than our target range of 0.30% to 0.35%.(12)                                                                                                                                                                                                                                                                                                                                                                                                                                
 (continued on next page)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |

Endnotes are set forth on pages 44-45, following the conclusion of this Executive Summary.

<div align='center'>37</div>

| REDWOOD’S 2024 OPERATIONAL/STRATEGIC PERFORMANCE (CONT.) |

| 2024 Strategic and Operational Achievements (cont.) |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|                                                     |     | Sequoia Mortgage Banking – Key Actions Taken in 2024 for Future Positioning:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
 ▪Grew financing capabilities and capacity to $2.2 billion at year-end (up 89% from $1.2 billion at year-end 2023) to support growth objectives and maintained a diversified distribution strategy across capital markets executions and whole loan sales – a strong foundation that will continue to support future growth across varying market environments.                                                                                                                                                                                                                                                                                                         
 ▪Grew suite of products, including groundwork for early-2025 launch of expanded programs to support underserved part of the housing finance market.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
 ▪Initiated process to incorporate and leverage the use of artificial intelligence (AI) tools and other emerging technologies to enhance speed and efficiency of our operational processes, including hiring new Chief Technology Officer with experience implementing AI technology within mortgage origination/finance platforms.                                                                                                                                                                                                                                                                                                                                     
 CoreVest Mortgage Banking                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
 CoreVest originates and acquires residential investor mortgage loans (also known as business purpose mortgage loans) for subsequent distribution through our CAFL® securitization program, sale to whole loan buyers, or transfer into one of our joint ventures or our Redwood Investments portfolio. These loans are generally secured by residential single-family rental and multifamily rental properties, which we classify as either “term” loans (which include fixed-rate loans with maturities that generally range from 3 to 30 years) or “bridge” loans (which include floating-rate loans with maturities that generally range between 12 and 36 months). 
 CoreVest Mortgage Banking – Key Achievements in 2024:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
 ▪Funded $1.7