Redwood Trust (RWT), a real estate investment trust, earned $20 million, or 25 cents per share, in the third quarter as the company acquired $50 million in residential securities. The third quarter profit is down 25% from a year ago and 31% from the previous quarter. Redwood ended the quarter with $797 million worth of loans in its securities portfolio, up from $734 million at the beginning of the quarter. In the second quarter, the company closed a $237.8 million prime jumbo residential mortgage-backed securities transaction, the first private-label RMBS in the U.S. since 2008. Moody's Investors Service rated the deal triple-A. The company is contemplating another securitization of residential mortgages in the fourth quarter, once it gathers about $300 million of loans and depending on market conditions. Redwood reported an estimated taxable loss of $9 million during the third quarter, and while that was wider from $3 million in the second quarter, it is narrower than the $23 million in taxable losses for the year-ago third quarter. Write to Jon Prior. The author holds no relevant investments.