CoreVest finalizes $313M securitization

The transaction, backed by rental properties, taps blockchain technology to improve loan-level reporting to investors

Redwood Trust’s CoreVest division has closed a $313 million private-label offering backed by 82 loans that are in turn collateralized by some 1,800 properties located in 24 states and the District of Columbia.

The transaction, CAFL 2022-1, represents CoreVest’s second securitization deal this year and its 21st to date. The collateral includes single-family rental (SFR) properties (70%), along with multifamily properties (22%) and some mixed-use properties (8%).

CoreVest provides financing to real estate investors across the country and boasts more than $15 billion in loans closed and some 125,000 units financed, according to the lender.

Liquid Mortgage Inc., in which Redwood Trust holds a minority stake, will act as the distributed-ledger agent for the deal. The blockchain company offers daily loan-level reporting services.

“The Liquid Mortgage technology allows near-real time visibility into payments and repayments on loans for investors and other end users,” CoreVest’s announcement of the transaction states. “CAFL 2022-1 is the first SFR transaction to include this technology.”

The deal also represents CoreVest’s first securitization that is in alignment with the Sustainability Accounting Standards Board’s (SASB’s) environmental, social and governance guidance, according to CoreVest.

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Innovation has always been fundamental to our long-term strategy, and we are excited to issue a securitization that both leverages blockchain technology as well as includes enhanced data aligned with SASB standards,” said Christopher Hoeffel, president of CoreVest. “We believe that this additional information will benefit investors in our securitizations.”

Morgan Stanley served as lead bookrunner and structuring agent for the offering, with Goldman Sachs and Wells Fargo acting as joint bookrunners.

Last fall, Redwood Trust announced a separate $449 million residential mortgage-backed securities private-label offering via its Sequoia platform that was backed by 497 jumbo residential loans and securitized with the help of Liquid Mortgage. As part of that deal, Liquid Mortgage also is leveraging its blockchain technology to provide loan-level payment and transaction-reporting data for borrowers and lenders.

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