Redwood Trust Inc. is participating in a multifamily whole-loan investment fund in a bid to expand its access to rental-housing credit.

Earlier in January, Redwood invested in a limited partnership created to acquire up to $1 billion of floating rate, light-renovation multifamily loans from Freddie Mac. Redwood, a real estate investment trust, has committed to fund $78 million through the partnership and has funded around $20 million.

Freddie Mac is providing a debt facility to finance loans purchased by the partnership. After the partnership's acquisitions have reached a threshold, participants will consider including related loans in a Freddie-sponsored securitization. The limited partners can acquire the subordinate securities were a securitization to occur.

[caption id="attachment_9490" align="alignleft" width="127"] Christopher Abate[/caption]

"Expanding Redwood's reach into the multifamily whole-loan space is another example of our ability to identify and execute on innovative ways to scale our business for profitable growth," said Christopher J. Abate, CEO of Redwood. "This investment strengthens our relationship with Freddie Mac and furthers our efforts to invest our shareholder's capital in areas of the housing market where it is most valued. We look forward to deploying the remainder of the capital we have committed to the fund."