Castlelake, Redwood Team on Up to $8B Prime Jumbo JV

Castlelake, L.P. and Redwood Trust, Inc. have launched a strategic joint venture aimed at expanding the flow of capital into prime jumbo mortgages. The partnership is designed to support growth of Redwood’s Sequoia platform while providing Castlelake with programmatic access to fully documented jumbo loans. The venture is expected to purchase up to $8 billion of Sequoia-originated loans, with flexibility to scale further as opportunities emerge, including the acquisition of seasoned assets from bank balance sheets.

Under the agreement, Sequoia will source, aggregate and diligence loans that meet defined eligibility standards, reinforcing a focus on credit quality and underwriting discipline.

“Castlelake is pleased to partner with Redwood and its Sequoia platform to provide our investors with access to what we expect to be high-quality, fully documented prime jumbo assets and to establish a relationship grounded in shared principles of disciplined underwriting and strong institutional governance,” said Lucas Jackson, Head of North American Residential Mortgage Finance at Castlelake.

The move builds on growing momentum within Redwood’s platform. “Sequoia has experienced significant momentum over the past year, with loan acquisition volumes more than doubling as we continue to build share in the jumbo market,” said Brooke Carillo, Executive Vice President and Chief Financial Officer at Redwood Trust.

Redwood’s Sequoia platform has purchased approximately $100 billion of loans and securitized more than $50 billion since 1994, while Castlelake has acquired or financed over $10 billion in residential and commercial loans since 2024.