A termination fee of $3 million has been set for the agreement of specialty firm Redwood Trust Inc. to buy real estate lender CoreVest American Finance Lender LLC and several of its affiliates from CoreVest Management Partners LLC and from certain affiliates of Fortress Investment Group LLC's credit funds business.

The deal, which was announced Oct. 14, was expected to be completed in two to three business days.

Redwood Trust would pay the sellers the termination fee if the sellers' representative validly terminates the purchase agreement. The fee shall be paid within three business days after the date of such termination to the sellers' representative.

Consideration for the acquisition was reported to be approximately $490 million at deal announcement, to be funded with a mix of cash on hand and Redwood stock.