Redwood Trust closes $391 million non-QM securitization

"It's serving a growing segment of the mortgage market, which recognizes there's a large cohort of high-quality borrowers who are not well served necessarily by traditional government programs and who also fall outside the traditional parameters of our jumbo mortgage business."

"Borrowers typically include self-employed business owners, rather than traditional W-2 employees, or real estate investors who generate rental income from properties. Most of the volume comes from bank-statement products, where the company analyzes at least one to two years of bank statements to evaluate income."

Redwood Trust completed SPIRE 2026-1, a $391 million securitization backed by non-qualified mortgages, representing the inaugural deal from its Aspire platform launched in 2025. The transaction includes 752 loans with borrowers averaging a 754 credit score and 69.79% weighted average combined LTV. Aspire operates through a correspondent model, acquiring closed loans from approximately 100 bank and nonbank partners rather than originating directly. The platform serves self-employed business owners and real estate investors typically excluded from traditional government programs and jumbo mortgage offerings. Primary loan products include bank-statement loans analyzed using one to two years of financial documentation and debt-service-coverage ratio loans underwritten on property cash flow. Select Portfolio Servicing acts as servicer, with Morgan Stanley serving as sole structuring agent and bookrunner.

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