Company: RWT-PA
Filing Date: 2025-03-03
Form Type: S-3ASR
Source: 0001104659-25-019828
Chunk: 8

Company: REDWOOD TRUST INC
Filing Date: 2025-03-03
Form: S-3ASR
Chunk 8
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 Company Act of 1940; our stock may experience
price declines, volatility, and poor liquidity, and we may reduce our dividends; decisions about raising, managing, and distributing
capital; dividend distributions and the timing and character of such dividends; limited number of institutional
shareholders owning a significant percentage of our common stock; and other factors not yet identified, including broad market
fluctuations.

<div align='center'>3

REDWOOD
TRUST, INC.</div>

Redwood Trust, Inc.,
together with its subsidiaries, is a specialty finance company focused on several distinct areas of housing credit with a mission to
help make quality housing, whether rented or owned, accessible to all American households. Our operating platforms occupy a unique
position in the housing finance value chain, providing liquidity to growing segments of the U.S. housing market not well served by
government programs. We deliver customized housing credit investments to a diverse mix of investors, through our best-in-class
securitization platforms, whole-loan distribution activities and our publicly-traded securities. Our aggregation, origination and
investment activities have evolved to incorporate a diverse mix of residential consumer and residential investor housing credit
assets. Our goal is to provide attractive returns to stockholders through a stable and growing stream of earnings and dividends,
capital appreciation, and a commitment to technological innovation that facilitates risk-minded scale. We operate our business in
three segments: Residential Consumer Mortgage Banking, Residential Investor Mortgage Banking, and Investment Portfolio.

Our primary sources of income
are net interest income from our investments and non-interest income from our mortgage banking activities. Net interest income primarily
consists of the interest income we earn on investments less the interest expense we incur on borrowed funds and other liabilities. Income
from mortgage banking activities is generated through the origination and acquisition of loans, and their subsequent sale, securitization,
or transfer to our investment portfolios.

Redwood Trust, Inc. has
elected to be taxed as a real estate investment trust, or REIT, under the Internal Revenue Code of 1986, as amended, or the Code,
beginning with its taxable year ended December 31, 1994. We generally refer, collectively, to Redwood Trust, Inc. and those of its
subsidiaries that are generally not subject to subsidiary-level corporate income tax as “the REIT” or “our
REIT.” We generally refer to subsidiaries of Redwood Trust, Inc. that are subject to subsidiary-level corporate income tax as
“