Redwood Trust set up a new risk-sharing agreement with Freddie Mac last month. This makes the real estate investment trust the first to execute proprietary risk-sharing arrangements with both GSEs. In the arrangement with Freddie, Redwood commits to absorb the first 1 percent of credit losses on up to $1 billion of new conforming loans it expects to deliver to Freddie over the course of the third quarter of 2015. Redwood said this is done through a special-purpose entity. The REIT entered into the risk-sharing agreement with Freddie in July and had already been in a risk-sharing transaction with Fannie since the fourth quarter of 2014. In that transaction, Redwood sold protection on the first 1 percent of losses on a $1.1 billion Fannie pool.