Company: RWT-PA
Filing Date: 2025-03-03
Form Type: S-3ASR
Source: 0001104659-25-019828
Chunk: 92

Company: REDWOOD TRUST INC
Filing Date: 2025-03-03
Form: S-3ASR
Chunk 92
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 institution undertakes certain diligence and reporting obligations, (2) the non-financial
foreign entity either certifies it does not have any “substantial United States owners” (as defined in the Code) or furnishes
identifying information regarding each substantial United States owner, or (3) the foreign financial institution or non-financial foreign
entity otherwise qualifies for an exemption from these rules. If the payee is a foreign financial institution and is subject to the diligence
and reporting requirements in clause (1) above, it must enter into an agreement with the U.S. Department of the Treasury requiring,
among other things, that it undertake to identify accounts held by certain “specified United States persons” or “United
States owned foreign entities” (each as defined in the Code), annually report certain information about such accounts, and withhold
30% on certain payments to non-compliant foreign financial institutions and certain other account holders. Foreign financial institutions
located in jurisdictions that have an intergovernmental agreement with the United States governing FATCA may be subject to different
rules.

Under the applicable Treasury
Regulations and administrative guidance, withholding under FATCA generally applies to payments of dividends on our capital stock or interest
on our debt securities. While withholding under FATCA would have applied also to payments of gross proceeds from the sale or other disposition
of our capital stock or debt securities on or after January 1, 2019, proposed Treasury Regulations eliminate FATCA withholding on
payments of gross proceeds entirely. Taxpayers generally may rely on these proposed Treasury Regulations until final Treasury Regulations
are issued. Because we may not know the extent to which a distribution is a dividend for U.S. federal income tax purposes at the
time it is made, for purposes of these withholding rules we may treat the entire distribution as a dividend.

Prospective investors should
consult their tax advisors regarding the potential application of withholding under FATCA to their investment in our capital stock or
debt securities.

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Other Tax Consequences

State, local and non-U.S. income
tax laws may differ substantially from the corresponding U.S. federal income tax laws, and this discussion does not purport to describe
any aspect of the tax laws of any state, local or non-U.S. jurisdiction, or any U.S. federal tax other than income tax. You
should consult your tax advisors regarding the effect of state, local and non-U.S. tax laws with respect to our tax treatment as
a REIT and