Redwood Trust Closes Inaugural Medical Professional Loan Securitization

The $482 million transaction marks Sequoia's 165th securitization and represents an important milestone for the platform.

Mar. 27, 2026 at 3:36am

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Redwood Trust, Inc. has announced the closing of SEMT 2026-MED1, the inaugural Medical Professionals loan securitization issued through Sequoia, Redwood's jumbo mortgage platform. The $482 million transaction marks Sequoia's 165th securitization and represents an important milestone for the platform as a first-of-its-kind securitization backed by medical professional loans.

Why it matters

The Sequoia Medical Professionals program is a specialized product designed to provide flexible underwriting that recognizes the strong long-term earnings potential and unique financial profiles of medical professionals, particularly those early in their careers. This transaction underscores Redwood's continued leadership and latest innovation in the jumbo mortgage market.

The details

The transaction includes 607 loans with an average borrower credit score of 769 and a weighted average combined loan-to-value ratio of 94.8%. Wells Fargo & Company was the sole-structuring agent and sole-bookrunner for the issuance, while Morgan, Lewis & Bockius LLP and Hunton Andrews Kurth LLP provided legal counsel.

  • The Sequoia Medical Professionals program officially launched in December 2025.
  • SEMT 2026-MED1 marks Sequoia's eighth securitization closed in the first quarter of 2026.

The players

Redwood Trust, Inc.

A specialty finance company focused on several distinct areas of housing credit, providing liquidity to growing segments of the U.S. housing market not well served by government programs.

Sequoia

Redwood's jumbo mortgage platform, which has been a leading provider of liquidity to the jumbo mortgage market for decades.

Christopher Abate

Chief Executive Officer of Redwood Trust.

Wells Fargo & Company

The sole-structuring agent and sole-bookrunner for the SEMT 2026-MED1 issuance.

Morgan, Lewis & Bockius LLP

Provided legal counsel on behalf of Sequoia for the transaction.

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What they’re saying

“Sequoia has been a leading provider of liquidity to the jumbo mortgage market for decades, and this transaction underscores Redwood's continued leadership and latest innovation in the sector.”

— Christopher Abate, Chief Executive Officer

“As the housing market evolves, we remain focused on developing specialized solutions that meet the changing needs of homebuyers while expanding access to housing credit. Our Medical Professionals program is a compelling product for originators to offer their customers, and represents an attractive asset that we can acquire in both seasoned pools and on-the-run current production.”

— Christopher Abate, Chief Executive Officer

The takeaway

This transaction demonstrates Redwood Trust's commitment to innovation and expanding access to housing credit, particularly for medical professionals who may have unique financial profiles. The Sequoia Medical Professionals program represents a specialized solution that can meet the evolving needs of homebuyers in the jumbo mortgage market.