Redwood Trust Caps Record 2025 with Q4 Earnings Gains

Mortgage banking platforms drive improved earnings and capital efficiency

Published on Feb. 12, 2026

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Redwood Trust (NYSE:RWT) management reported the company ended 2025 with record production across its operating platforms, including the Sequoia, CoreVest, and Aspire mortgage banking businesses. The fourth-quarter results reflected improved earnings, progress in winding down legacy investments, and a continued shift toward a more capital-efficient, originate-to-distribute model.

Why it matters

Redwood Trust's strategic shift toward mortgage banking and away from legacy investments has positioned the company for stronger earnings and improved capital allocation. As the housing market evolves, Redwood's ability to scale its operating platforms and diversify distribution channels could give it a competitive edge.

The details

Redwood's Sequoia platform posted record loan locks of $5.3 billion in Q4, up 5% from Q3 and 130% year-over-year, driven by bulk activity and growth in closed-end second and adjustable-rate loan purchases. The Aspire non-QM platform also set a quarterly record with $1.5 billion in locks, up 20% sequentially. Meanwhile, the CoreVest business repositioned toward smaller-balance products like residential transition loans and DSCR loans. Redwood also made progress winding down its legacy investment portfolio, reducing the principal balance by nearly 40% in Q4.

  • Redwood reported Q4 2025 results on February 12, 2026.
  • Sequoia locked $5.3 billion in loans in Q4 2025, up 5% from Q3 and 130% year-over-year.
  • Aspire locked a record $1.5 billion in loans in Q4 2025, up 20% sequentially.
  • Redwood reduced its legacy bridge portfolio principal balance by nearly 40% in Q4 2025.
  • Redwood plans to launch the first securitization under the Aspire shelf "in the coming weeks."

The players

Redwood Trust

A publicly traded real estate investment trust specializing in the U.S. residential mortgage market, headquartered in Mill Valley, California.

Chris Abate

Chief Executive Officer of Redwood Trust.

Dash Robinson

President of Redwood Trust.

Brooke Carillo

Chief Financial Officer of Redwood Trust.

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What they’re saying

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