Redwood Trust officials said its groundbreaking prime jumbo residential mortgage securitization did better than expected in the market, suggesting that there is a considerable amount of pent-up demand for this type of product.

A source close to the deal said, "We had orders for $1.2 billion."

Martin S. Hughes, president and co-chief operating officer of Redwood Trust, said in a statement released by the company, "The execution on this securitization exceeded our expectations, which is significant given that the market has been closed for nearly two years." A call to Hughes for further comment had not been returned at press time.

Redwood Trust priced its securitization deal, Sequoia Mortgage Trust 2010-H1, earlier this week.

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