Redwood Trust, which has completed two jumbo mortgage securitizations in the last 10 months, is reviewing loans for purchase daily, Chief Operating Officer Brett D. Nicholas said in an interview.
Nicholas would not say how many loans the Mill Valley, Calif., real estate investment trust is looking at or identify potential sellers.
Redwood has no plans to become a direct lender and will remain a correspondent buyer, he said.
On Tuesday Redwood closed the second of the two jumbo mortgage-backed securities deals. The company said the transaction was profitable enough to finance prime loans at rates within a half point of loans that are financed by Fannie Mae and Freddie Mac.
In a press release, Nicholas said the deal shows private-sector firms can finance mortgages without government backing, at rates attractive to borrowers and investors.