Redwood partners to boost mortgage pipeline

|About: Redwood Trust Inc (RWT)|By:, SA News Editor

Redwood Trust (RWT +3.2%) is ahead in today's session after last night announcing the formation of MPF Direct with the Federal Home Loan Bank of Chicago. MPF Direct will allow members of a FHLB to deliver residential high-balance mortgages to subsidiaries of Redwood.

Per terms of the agreement, Redwood will be the sole investor in the program for a period of three years.