Pursuits
Redwood Creates Latest Type of Risk-Share Deal for Fannie
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Redwood Trust Inc., the specialist in jumbo mortgages, said it entered into a risk-sharing deal with government-backed Fannie Mae on smaller home loans.
The real-estate investment trust agreed to take the first 1 percent of losses on $1.1 billion of loans that will be purchased by Fannie Mae this quarter, according to a quarterly report for shareholders posted today on the Mill Valley, California-based company’s website.