Company: RWT-PA
Filing Date: 2025-01-15
Form Type: 424B5
Source: 0001104659-25-003632
Chunk: 114

Company: REDWOOD TRUST INC
Filing Date: 2025-01-15
Form: 424B5
Chunk 114
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 institutions; |

| · | REITs or regulated    
 investment companies; |

| · | brokers, dealers          
 or traders in securities; |

| · | “controlled                                                                                                       
 foreign corporations,” “passive foreign investment companies,” and corporations that accumulate earnings to avoid 
 U.S. federal income tax;                                                                                          |

| · | S corporations,                                                                                                                      
 partnerships or other entities or arrangements treated as partnerships for U.S. federal income tax purposes (and investors therein); |

| · | tax-exempt                                   
 organizations or governmental organizations; |

| · | persons subject                                                                                                              
 to special tax accounting rules as a result of any item of gross income with respect to our capital stock or debt securities 
 being taken into account in an “applicable financial statement” (as defined in the Code);                                    |

| · | persons deemed                                                                                       
 to sell our capital stock or debt securities under the constructive sale provisions of the Code; and |

| · | persons who                                                                                                           
 hold or receive our capital stock pursuant to the exercise of any employee stock option or otherwise as compensation. |

THIS DISCUSSION IS FOR INFORMATIONAL PURPOSES ONLY AND IS NOT INTENDED AS TAX ADVICE. INVESTORS SHOULD CONSULT THEIR TAX ADVISORS WITH RESPECT TO THE APPLICATION OF THE U.S. FEDERAL INCOME TAX LAWS TO THEIR PARTICULAR SITUATIONS AS WELL AS ANY TAX CONSEQUENCES OF THE PURCHASE, OWNERSHIP AND DISPOSITION OF OUR CAPITAL STOCK OR DEBT SECURITIES ARISING UNDER OTHER U.S. FEDERAL TAX LAWS (INCLUDING ESTATE AND GIFT TAX LAWS), UNDER THE LAWS OF ANY STATE, LOCAL OR NON-U.S. TAXING JURISDICTION OR UNDER ANY APPLICABLE TAX TREATY.

For purposes of this discussion,
a “U.S. Holder” is a beneficial owner of our capital stock or debt securities that, for U.S. federal income tax purposes,
is or is treated as:

| · | an individual                                      
 who is a citizen or resident of the United States; |

| · | a corporation                                                                                             
 created or organized under the laws of the United States, any state thereof, or the District of Columbia; |

| · | an estate,                                                                             
 the income of which is subject to U.S. federal income tax regardless of its source; or |

| · | a trust that                                                                                                            
 (1) is subject to the primary supervision of a U.S. court and the control of one or more “United States persons”