Company: RWT-PA
Filing Date: 2025-01-15
Form Type: 424B5
Source: 0001104659-25-003632
Chunk: 31

Company: REDWOOD TRUST INC
Filing Date: 2025-01-15
Form: 424B5
Chunk 31
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 to one or more wholly owned subsidiaries of ours), unless (i) the resulting, surviving or transferee person, if not us, is
a person organized and existing under the laws of the United States of America, any State thereof or the District of Columbia, and such
person, if not us, expressly assumes by supplemental indenture all of our obligations under the notes and the indenture; and (ii) immediately
after giving effect to such transaction, no default or event of default has occurred and is continuing under the indenture. Upon any
such consolidation, merger, sale, lease or transfer, the resulting, surviving or transferee person shall succeed to, and may exercise
every right and power of, ours under the indenture and, except in the case of a lease, we will be discharged from our obligations under
the indenture and the notes.

Although these types of transactions
are permitted under the indenture, certain of the foregoing transactions could constitute a Change of Control Repurchase Event permitting
each holder to require us to repurchase the notes of such holder as described above. Furthermore, there is no precise, established definition
of the phrase “substantially all” of our property and assets under applicable law. Accordingly, there may be uncertainty
as to whether the provisions described under “—Offer to Repurchase Upon a Change of Control Repurchase Event” would
apply to a sale, lease or transfer of less than all of our properties and assets.

Modification and Amendment

The following description
replaces the description set forth under “Description of Debt Securities—Modification and Waiver” in the accompanying
prospectus in its entirety.

<div align='center'>S-18</div>

Subject to certain exceptions,
the indenture or the notes may be amended with the consent of the holders of at least a majority principal amount of the notes then outstanding,
including without limitation, consents obtained in connection with a purchase of, or tender offer or exchange offer for, notes, and,
subject to certain exceptions, any past default or compliance with any provisions may be waived with the consent of the holders of a
majority principal amount of the notes then outstanding, including, without limitation, consents obtained in connection with a purchase
of, or tender offer or exchange offer for, notes. However, without the consent of each holder of an outstanding note affected, no amendment
may, among other things:

| (1) | reduce                                                          
 the amount of notes whose holders must consent to an amendment; |

|