Redwood Trust reports Q3 EAD 9c, consensus 16c

GAAP book value per common share was $8.77 at September 30, 2023, a 5.3% decrease from $9.26 per share at June 30, 2023. “The mortgage market is in a state of significant transition on the heels of an evolving bank regulatory backdrop,” said Christopher Abate, CEO of Redwood. “In the third quarter, we saw continued progress in our Residential Mortgage Banking business, where we’ve driven volume higher through onboarding new sellers and deepening our overall wallet share. Importantly, despite choppy markets, we were successful during the quarter efficiently securitizing and selling our production across both of our operating businesses. As we look ahead, we expect to formalize other partnerships complementary to our traditional distribution channels, driven by significant interest in our asset creation and sourcing abilities.”