Company: RWT-PA
Filing Date: 2025-01-15
Form Type: 424B5
Source: 0001104659-25-003632
Chunk: 38

Company: REDWOOD TRUST INC
Filing Date: 2025-01-15
Form: 424B5
Chunk 38
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a nominee of DTC to DTC or another nominee of DTC or (3) by DTC or any such nominee to a successor of DTC or a nominee of such successor.

We will issue certificated notes in exchange for global
notes representing the notes, only if:

| · | DTC                                                                                            
 notifies us in writing that it is unwilling or unable to continue as depositary for the global 
 notes or ceases to be a clearing agency registered under the Exchange Act, and we are unable   
 to locate a qualified successor within 90 days of receiving such notice or becoming aware      
 that DTC has ceased to be so registered, as the case may be;                                   |

| · | an                                                                                         
 Event of Default has occurred and is continuing under the indenture and a request for such 
 exchange has been made; or                                                                 |

| · | we,                                                                                   
 at our option, elect to exchange all or part of a global note for certificated notes. |

<div align='center'>S-22</div>

If any of the three above
events occurs, DTC is required to notify all direct participants that certificated notes are available through DTC. DTC will then surrender
the global notes representing the notes along with instructions for re-registration. The trustee will re-issue the notes in fully certificated
registered form and will recognize the holders of the certificated notes as holders under the indenture.

Unless and until we issue
certificated notes, (1) you will not be entitled to receive a certificate representing your interest in the notes, (2) all
references in this prospectus supplement and the accompanying prospectus to actions by holders will refer to actions taken by the depositary
upon instructions from their direct participants, and (3) all references in this prospectus supplement and the accompanying prospectus
to payments and notices to holders will refer to payments and notices to the depositary, as the holder of the notes, for distribution
to you in accordance with its policies and procedures.

<div align='center'>S-23

UNDERWRITING</div>

Morgan Stanley &
Co. LLC, Goldman Sachs & Co. LLC, RBC Capital Markets, LLC, Wells Fargo Securities, LLC, Keefe, Bruyette & Woods, Inc.
and Piper Sandler & Co. are acting as joint book-running managers of the offering and as representatives of the underwriters
named below. Subject to the terms and conditions stated in the underwriting agreement, dated the date