Redwood Trust (RWT) took in higher profits from one year ago as it plans more private-label issuance.
The real estate investment trust earned $20 million in the second quarter, or 24 cents per share, more than double profits from one year ago. Earnings did slip from $30 million in the previous quarter.
Redwood is the only issuer of private mortgage-backed securities since the credit market crashed in 2007. Their bonds are backed mostly by jumbo loans, and not one of them has gone 60 days delinquent so far, according to the credit ratings agencies who are monitoring the deals.
Three bonds have been issued this year, and a fourth one is underway.
"Each of our six securitizations in the post-crisis period has been met with strong investor demand," said Redwood CEO Martin Hughes in a letter to investors Thursday. "More importantly, the economics of our deals have remained attractive, the number of sellers we buy loans from is increasing, and the volume of loans we have identified to purchase is rising."