NEW YORK and IRVINE, Calif., Oct.
16, 2019 /PRNewswire/ -- CoreVest American Finance, LLC
("CoreVest") announced that Redwood Trust, Inc. (NYSE: RWT) has
purchased CoreVest American Finance Lender LLC, a
leading nationwide originator and portfolio manager of
business-purpose residential loans (BPLs), and several
of its affiliates ("CoreVest"), from certain affiliates
of Fortress Investment Group's credit funds business ("Fortress
Sellers") and CoreVest Management Partners LLC ("Management Seller"
and together with the Fortress Sellers, "Sellers"). CoreVest was
started in 2014 to address the unique financing needs of
residential real estate investors and successfully built the
business into the market leader, having funded over $4 billion in loans since inception.
Collectively, the platform and assets will significantly expand
Redwood's presence in the BPL market, furthering its position as a
leading private-sector source of housing-market liquidity.
Beth O'Brien, Chief Executive
Officer of CoreVest, said, "We are very excited to be joining
forces with Redwood. Our team has built an amazing platform and
brand, and we're poised to enter a new phase of growth by
leveraging Redwood's significant, permanent capital base and deep
residential credit expertise. Our clients will continue to
experience our high level of service, but with an even greater
commitment to delivering customized funding solutions at highly
competitive rates."
"Demand for our rental and bridge loan products continues to
strengthen. Joining Redwood will enable us to further expand our
platform and remain the financing partner of choice for investors,"
added Ryan McBride, CoreVest's Chief
Operating Officer.
"CoreVest and Redwood have a shared view of the sizeable
investor loan market opportunity. We look forward to combining our
capital markets experience with Redwood's 25 years of experience in
housing finance to expand the BPL platform," commented Christopher Hoeffel, Chief Financial Officer of
CoreVest.
Christopher Abate, Redwood's
Chief Executive Officer added, "CoreVest is a best-in-class
operator in the business-purpose lending sector, an area
of residential lending that increases liquidity in the
housing market by enabling investors to efficiently finance
purchases of both single-family and multifamily investment
properties. Additionally, CoreVest is the standard-bearer for BPL
securitizations, having completed more such transactions than any
other issuer. Integrating the CoreVest operations and suite of
products with our own market-leading consumer mortgage banking and
securitization platform will create the preeminent specialty
finance operator in our industry."
Dashiell Robinson, Redwood's
President also commented, "This acquisition reflects our strong
belief that this area of housing credit offers substantial
opportunity for growth and accretive returns for our shareholders.
While our consumer mortgage business is thriving and continues to
grow, financing alternatives for housing investors remain sparse,"
Robinson added.
Abate concluded, "On behalf of our Board and our employees, I am
very excited to welcome the talented CoreVest team into the Redwood
family."
Piper Jaffray & Co. served as
the sole financial advisor to CoreVest and to the Sellers.
About CoreVest
CoreVest is the leading lender to residential real estate
investors, nationwide. It offers long-term loans for stabilized
rental properties as well as short-term bridge loans and investment
credit lines. With more than $6
billion in closed loans and 40,000 units financed, CoreVest
offers attractive rates, rapid timelines and closing certainty. The
company works directly with borrowers, brokers and correspondent
partners. For more information, visit www.corevestfinance.com.
Forward-Looking Statements: This press release contains
forward-looking statements within the meaning of the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995,
including statements related to Redwood's acquisition of CoreVest
American Finance Lender LLC, the strength of demand for CoreVest's
rental and bridge loan products, and Redwood's belief that the
business-purpose lending area of housing credit offers substantial
opportunity for growth and accretive returns for Redwood's
shareholders. Forward-looking statements involve numerous risks and
uncertainties. Redwood's actual results may differ from its
beliefs, expectations, estimates, and projections and,
consequently, investors should not rely on these forward-looking
statements as predictions of future events. Forward-looking
statements are not historical in nature and can be identified by
words such as "anticipate," "estimate," "will," "should," "expect,"
"believe," "intend," "seek," "plan" and similar expressions or
their negative forms, or by references to strategy, plans, or
intentions. These forward-looking statements are subject to risks
and uncertainties, including, among other things, those described
in Redwood's Annual Report on Form 10-K for the year ended
December 31, 2018 under the caption
"Risk Factors." Other risks, uncertainties, and factors that could
cause actual results to differ materially from those projected may
be described from time to time in reports Redwood files with the
Securities and Exchange Commission, including reports on Forms 10-Q
and 8-K. Redwood undertakes no obligation to update or revise any
forward-looking statements, whether as a result of new information,
future events, or otherwise.
Company Contact
Tuan
Pham
1-949-344-7884
tuan@cvest.com
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SOURCE CoreVest