Redwood Trust, the most active player in the Jumbo securitization market, wants to buy already funded Fannie Mae/Freddie Mac loans from mortgage bankers and service the product through a subservicing firm called Cenlar.
Redwood has “been planning it for some time,” said an official close to the publicly traded REIT.
The firm recently disclosed in its ‘Redwood Review’ report that it has filed applications with both GSEs to become an official seller/servicer. The applications were filed in the past month or so.
Redwood is expected to use the cash window at the GSEs or swap the loans for MBS.
The company hopes to issue another jumbo MBS in the third quarter.