Company: RWT-PA
Filing Date: 2025-01-16
Form Type: 424B5
Source: 0001104659-25-004099
Chunk: 40

Company: REDWOOD TRUST INC
Filing Date: 2025-01-16
Form: 424B5
Chunk 40
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 Discounts and Expenses

The underwriters propose to offer the notes initially at the public offering price set forth on the cover page of this prospectus supplement and to selling group members at that price less a selling concession of $0.50 per $25.00 principal amount of the notes. After the initial offering of the notes, the underwriters may change the public offering price and concession or any other selling term of this offering may change. The offering of the notes by the underwriters is subject to receipt and acceptance and subject to the underwriters’ right to reject any order in whole or in part.

The following table shows the underwriting discounts
and commissions that we are to pay to the underwriters in connection with this offering. These amounts are shown assuming both no
exercise and full exercise of the underwriters’ over-allotment option.

|                                                   |     | Per Note |         |     | Without   
 Over-     
 Allotment |            |     | With Over- Allotment |             |
|:--------------------------------------------------|:----|:---------|--------:|:----|:----------|-----------:|:----|:---------------------|------------:|
| Public offering price                             |     | $        |   25.00 |     | $         | 90,000,000 |     | $                    | 103,500,000 |
| Underwriting discounts and commissions paid by us |     | $        |  0.7875 |     | $         |  2,835,000 |     | $                    |   3,260,250 |
| Proceeds, before expenses, to us                  |     | $        | 24.2125 |     | $         | 87,165,000 |     | $                    | 100,239,750 |

<div align='center'>S-24</div>

We have also agreed to reimburse
the reasonable fees and disbursements of counsel for the underwriters up to $150,000 in connection with the offering. We estimate that
our total expenses incurred in connection with this offering, excluding the underwriting discounts and commissions, will be approximately
$650,000.

We have agreed to indemnify
the underwriters and certain of their controlling persons against certain liabilities, including, among other things, liabilities under
the Securities Act, and to contribute to payments that the underwriters may be required to make in respect of those liabilities.

No Sales of Similar Securities

We have agreed for a period
of