Redwood Trust Sees Continued Weakness in Mortgage Originations, Cuts Costs
The mortgage industry has been going through an incredibly difficult stretch. Last year was absolutely awful as the Federal Reserve began to rapidly hike the federal funds rate to combat high inflation. Mortgage bankers saw loan origination volumes collapse as the incentives for most customers to refinance evaporated and home affordability declined.
In addition, mortgage real estate investment trusts (REITs) saw their book values per share decline as mortgage products fell in value faster than Treasuries. Redwood Trust (NYSE: RWT) is one of the biggest non-agency mortgage REITs, originating loans for professional real estate investors. Here is how it is dealing with the slowdown.
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Source Fool.com
