Redwood Trust and Castlelake have established a joint venture targeting the purchase of up to $8 billion of prime jumbo mortgage loans through Redwood's Sequoia platform. The venture allows for flexibility to acquire seasoned loans from bank balance sheets, with Sequoia responsible for sourcing, aggregating and diligencing loans and Castlelake providing programmatic purchasing power.

Over the past year, Sequoia's loan acquisition volumes have more than doubled as the platform continues to build market share in the prime jumbo segment. Since inception, Sequoia has purchased roughly $100 billion of loans and securitized over $50 billion, demonstrating its capacity to supply high-quality assets consistently across market cycles.

The joint venture aligns with Redwood's strategy of scaling its housing credit platforms alongside leading capital providers, enhancing earnings stability and asset growth. Castlelake brings a $36 billion asset base and over $10 billion deployed in residential and commercial loans since 2024, contributing disciplined underwriting and long-term institutional governance.