CoreVest American Finance, LLC (CoreVest) announced that Redwood Trust, Inc. 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 and CoreVest Management Partners LLC . 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 private-sector source of housing-market liquidity.
Beth O’Brien, CEO 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 COO.
“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, CFO of CoreVest.
Christopher Abate, Redwood's CEO, 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.”