Redwood Trust Inc., which proved last month that it is once again possible to securitize mortgages without government backing, has made a more serious commitment to reviving the secondary market.

The Mill Valley, Calif., company said Monday evening that it is now buying jumbo mortgages on a "flow" basis — that is, one at a time, as soon as they are originated, at a price locked in before the loan closes. This arrangement gives the originator a degree of certainty that it can sell its loans at a profit.

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