A real estate investment trust The Redwood has expanded its home equity platform, Aspire, to include other loan products amid housing affordability challenges, the company announced Tuesday.
The move is part of a repositioning that includes rebranding the jumbo loan platform, which will continue to operate under the Sequoia umbrella going forward.
With Aspire, launched in September 2023, Redwood is moving directly from home equity investments (HEIs). This product allows customers to sell a portion of their home’s future value for a lump sum payment today.
But the Redwoods also said they recognize that high interest rates and tight housing supply have been the driving forces behind the high affordability, increasing demand for non-traditional solutions. In HousingWire‘s Mortgage Rates Center on Wednesday, the 30-year fixed rate reached 7.11%, clouding the outlook for the housing market in 2025.
The platform’s new offerings include loans underwritten by bank statements and CPA prepared profit and loss statements, as well as credit-service-coverage ratio (DSCR) loans for mortgage-backed investors. CoreVestDirect borrowing power. CoreVest was acquired by Redwood in 2019 and is part of a commercial lending REIT that specializes in residential investment loans.
“The market for alternative mortgage products continues to grow but remains ripe for disruption through technology and sound underwriting practices,” Redwood CEO Christopher Abate said in a statement.
Redwood, founded in the early 1990s as the demand for more private investors in the mortgage market grew, aims to provide financing for these new types of loans to its original partners.
As part of its repositioning of residential properties, Redwood is also rebranding its large loan platform as Sequoia, a foreclosure shelf where it has shed more than 130 jobs.
Abate said that despite “muted housing activity” in 2024, the company increased its “relevance by significantly expanding our network of mortgage sales partners, meeting the market share goals we set for ourselves and our investors.”
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