An executive at Redwood Trust—the only active jumbo MBS issuer out there—said the firm has been able to expand its business despite challenges, including the government’s continued domination of the market.
“We’ve got more loan sellers, we’ve got more investors. We’re pleased with the progress we’re making,” said Fred Matera, managing director and head of residential investment at Redwood, speaking at the Mortgage Bankers Association’s National Secondary Market Conference in New York.
But when it comes to the macroeconomic environment “not a lot has changed,” he said, also noting that government intervention has limited how much private-label residential MBS securitization can grow.
That being said, the latter is “more likely to go down than go up,” said Matera. A publicly traded REIT, Redwood is based in Mill Valley, Calif.