Point and Redwood Trust’s $146 Million Home Equity Investment Securitization

Morgan Lewis represented Point Digital Finance Inc. and Redwood Subsidiary Holdings on the deal.

Point Digital Finance Inc. and Redwood Subsidiary Holdings LLC, a subsidiary of Redwood Trust Inc., acted as co-sponsors in the issuance of approximately $146 million of notes issued by Point Securitization Trust 2021-1. The notes are backed by the proceeds from resolutions on a pool of home equity investments (HEIs) originated by Point and acquired by the issuer, which are secured by liens (primarily second liens) on residential dwellings.

Point makes it simpler for all homeowners to unlock their equity. With a Home Equity Investment (HEI) from Point, homeowners can eliminate debt, get through periods of financial hardship, and diversify their wealth. For investors, Point provides access to a previously untapped asset class in the residential real estate space. 

Redwood Trust, Inc. (NYSE: RWT) is a specialty finance company focused on several distinct areas of housing credit. Our operating platforms occupy a unique position in the housing finance value chain, providing liquidity to growing segments of the U.S. housing market not served by government programs. 

Morgan Lewis partner Cory Barry (Picture), of counsel Jerry Parker, associates Sam Park and Ryan Sugg, and partner Sarah Nelson advised Point and Redwood on the transaction.

Involved fees earner: Cory Barry – Morgan Lewis & Bockius; Sarah Nelson – Morgan Lewis & Bockius; Samuel Park – Morgan Lewis & Bockius; Jeremiah Parker – Morgan Lewis & Bockius; Ryan Sugg – Morgan Lewis & Bockius;

Law Firms: Morgan Lewis & Bockius;

Clients: Point Digital Finance; Redwood Trust;