CoreVest Completes $313 Million Single-Family Rental Securitization

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, 19^th SFR securitization and 21^st 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.