Company: RWT-PA
Filing Date: 2025-03-03
Form Type: S-3ASR
Source: 0001104659-25-019828
Chunk: 40

Company: REDWOOD TRUST INC
Filing Date: 2025-03-03
Form: S-3ASR
Chunk 40
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 The information in this summary is based on:

| · | the   
 Code; |

| · | current,                                                                                         
 temporary and proposed Treasury regulations promulgated under the Code, or Treasury Regulations; |

| · | the                              
 legislative history of the Code; |

| · | administrative                                                                 
 interpretations and practices of the Internal Revenue Service, or the IRS; and |

| · | court      
 decisions; |

in each case, as of the date
of this prospectus. In addition, the administrative interpretations and practices of the IRS include its practices and policies as expressed
in private letter rulings that are not binding on the IRS except with respect to the particular taxpayers who requested and received
those rulings. The sections of the Code and the corresponding Treasury Regulations that relate to qualification and taxation as
a REIT are highly technical and complex. The following discussion sets forth certain material aspects of the sections of the Code
that govern the U.S. federal income tax treatment of a REIT and its stockholders and the holders of its debt securities. This summary
is qualified in its entirety by the applicable Code provisions, Treasury Regulations promulgated under the Code, and administrative and
judicial interpretations thereof. Potential tax reforms may result in significant changes to the rules governing U.S. federal income
taxation. New legislation, Treasury Regulations, administrative interpretations and practices and/or court decisions may significantly
and adversely affect our ability to qualify as a REIT, the U.S. federal income tax consequences of such qualification, or the U.S. federal
income tax consequences of an investment in us, including those described in this discussion. Moreover, the law relating to the tax treatment
of other entities, or an investment in other entities, could change, making an investment in such other entities more attractive relative
to an investment in a REIT. Any such changes could apply retroactively to transactions preceding the date of the change. We have not
requested, and do not plan to request, any rulings from the IRS that we qualify as a REIT, and the statements in this prospectus are
not binding on the IRS or any court. Thus, we can provide no assurance that the tax considerations contained in this discussion will
not be challenged by the IRS or will be sustained by a court if challenged by the IRS. This summary does not discuss any state,
local or non-U.S. tax consequences, or any tax consequences arising under any U.S. federal tax laws other than U.S. federal
income tax laws, associated with the purchase, ownership