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CoreVest Completes $313 Million Single-Family Rental Securitization
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CoreVest American Finance Lender has successfully closed a $313 million securitization (CAFL 2022-1) backed by its single-family rental loans, marking its 19th SFR securitization. The deal incorporates blockchain technology via Liquid Mortgage for efficient loan data reporting and aligns with SASB ESG standards. The offering includes ten classes of certificates backed by 82 loans across approximately 1,800 properties in 24 states. This transaction underscores CoreVest's ongoing innovation and capital flexibility within the residential real estate lending sector.
Positive
Closed $313 million securitization, enhancing liquidity and capital flexibility.
First SFR transaction using blockchain technology for real-time loan reporting.
Aligned with SASB ESG standards, improving transparency for investors.
Transaction backed by 82 loans across ~1,800 properties diversifying risk.
Negative
None.
NEW YORK--(BUSINESS WIRE)--
CoreVest American Finance Lender LLC (“CoreVest”), a leading lender to residential real estate investors nationwide and a division of Redwood Trust, Inc., today announced that it has closed a $313 million securitization (“CAFL 2022-1”) backed by its single-family rental (“SFR”) loans. The transaction represents CoreVest’s second securitization in 2022, 19th SFR securitization and 21st overall securitization.
Liquid Mortgage, Inc. (“Liquid Mortgage”) will serve as distributed ledger agent for this securitization, utilizing blockchain technology to report loan level payment activity daily that ultimately makes loan data reporting and delivery faster and more efficient. The Liquid Mortgage technology allows near-real time visibility into payments and repayments on loans for investors and other end users. CAFL 2022-1 is the first SFR transaction to include this technology. This will also be CoreVest’s first securitization to include data aligned with the Sustainability Accounting Standards Board (“SASB”) environmental, social and governance (“ESG”) guidance framework.
“The strength of our securitization platform continues to be an important point of differentiation for CoreVest, supporting our growth and capital flexibility, as we offer a compelling product with quality underwriting standards,” said Christopher Hoeffel, President of CoreVest. “Innovation has always been fundamental to our long-term strategy, and we are excited to issue a securitization that both leverages blockchain technology as well as includes enhanced data aligned with SASB standards. We believe that this additional information will benefit investors in our securitizations.”
The offering included ten classes of principal and interest certificates: Class A through Class H are sequential pay certificates and Class X-A and X-B are interest-only certificates. The Class A and Class X-A certificates are rated by Fitch and the Class A through Class G certificates and the Class X-A certificates are rated by KBRA. CoreVest will retain the Class F, G, H, X-A and X-B certificates.
The offering is backed by 82 loans collateralized by approximately 1,800 properties located in 24 states and the District of Columbia. The collateral is comprised of approximately 70% SFR properties (including condo, townhome and 2-4 unit residences), 22% multifamily properties and 8% mixed-use properties. Similar to previous CoreVest securitizations, this transaction is comprised of a majority of repeat sponsors. Morgan Stanley acted as lead bookrunner and structuring agent with Goldman Sachs and Wells Fargo acting as joint bookrunners.
About CoreVest
CoreVest, a division of Redwood Trust, Inc. ("Redwood"), is the leading lender to residential real estate investors nationwide. It offers long-term loans for portfolios of rental properties as well as short-term bridge loans, investment credit lines and build for rent programs. With more than $15 billion in loans closed and approximately 125,000 units financed, CoreVest offers attractive rates, rapid timelines and closing certainty. The company works directly with borrowers and brokers. For more information, visit corevestfinance.com.
About Redwood Trust
Redwood Trust, Inc. (NYSE: RWT) is a specialty finance company focused on several distinct areas of housing credit. Our operating platforms occupy a unique position in the housing finance value chain, providing liquidity to growing segments of the U.S. housing market not well served by government programs. We deliver customized housing credit investments to a diverse mix of investors, through our best-in-class securitization platforms; whole-loan distribution activities; and our publicly traded shares. Our aggregation, origination and investment activities have evolved to incorporate a diverse mix of residential, business purpose and multifamily assets. Our goal is to provide attractive returns to shareholders through a stable and growing stream of earnings and dividends, capital appreciation, and a commitment to technological innovation that facilitates risk-minded scale. We operate our business in three segments: Residential Mortgage Banking, Business Purpose Mortgage Banking and Investment Portfolio. Additionally, through RWT Horizons™, our venture investing initiative, we invest in early-stage companies strategically aligned with our business across the lending, real estate, and financial technology sectors to drive innovations across our residential and business-purpose lending platforms. Since going public in 1994, we have managed our business through several cycles, built a track record of innovation, and established a best-in-class reputation for service and a common-sense approach to credit investing. Redwood Trust is internally managed and structured as a real estate investment trust ("REIT") for tax purposes. For more information about Redwood, please visit our website at www.redwoodtrust.com or connect with us on LinkedIn, Twitter, or Facebook.
What is the significance of CoreVest's $313 million securitization associated with RWT?
The $313 million securitization enhances CoreVest's liquidity and capital flexibility, reinforcing its position in the residential lending market.
How does blockchain technology feature in CoreVest’s latest securitization?
CoreVest's securitization utilizes blockchain technology for near-real-time reporting of loan payments, improving efficiency and transparency.
What are the key features of the CAFL 2022-1 securitization by RWT?
CAFL 2022-1 includes ten classes of certificates, is backed by 82 loans, and incorporates ESG standards, marking a significant move in responsible financing.
In which states are the properties collateralizing the latest securitization located?
The properties backing the securitization are located in 24 states and the District of Columbia.
How does the CAFL 2022-1 securitization align with ESG criteria?
The securitization conforms to the Sustainability Accounting Standards Board (SASB) ESG guidance framework, enhancing its appeal to socially-conscious investors.
