Castlelake and Redwood Trust have formed a joint venture to purchase up to $8 billion of prime jumbo mortgages, the companies announced Wednesday.

Under the partnership, Minneapolis-based asset manager Castlelake will gain programmatic purchasing power for fully documented prime jumbo loans, while California-based Redwood’s Sequoia platform will source, aggregate and perform due diligence on loans that meet defined eligibility criteria. 

The joint venture may also acquire seasoned jumbo loans from bank balance sheets. Jumbo loans form a segment that relies heavily on private capital and securitization rather than government-backed channels. 

Lucas Jackson, head of North American residential details ⇒

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