The past year has been miserable for companies in the mortgage industry. Mortgage originators have struggled with declining origination volumes, while mortgage real estate investment trusts (REITs) have contended with mortgage-backed security (MBS) underperformance versus Treasuries.

Redwood Trust (NYSE: RWT) is a mortgage REIT with a hybrid origination and investment strategy, with an extremely high dividend yield. But why is it so high? 

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Source Fool.com