Company: RWT-PA
Filing Date: 2025-01-15
Form Type: 424B5
Source: 0001104659-25-003632
Chunk: 136

Company: REDWOOD TRUST INC
Filing Date: 2025-01-15
Form: 424B5
Chunk 136
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 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.

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 advisor regarding the effect of state, local and non-U.S. tax laws with respect to our tax treatment as a REIT
and on an investment in our capital stock or debt securities.

<div align='center'>52

PLAN
OF DISTRIBUTION</div>

We may distribute the securities
from time to time in one or more transactions:

| · | through underwriters 
 or dealers;          |

| · | through agents; |

| · | directly to                
 one or more purchasers; or |

| · | through a combination            
 of any of these methods of sale. |

We will identify the specific
plan of distribution, including any underwriters, dealers, agents or direct purchasers and their compensation in the applicable prospectus
supplement.

<div align='center'>53

VALIDITY
OF THE SECURITIES</div>

The validity of certain securities
will be passed upon for us by Venable LLP, Baltimore, Maryland. The validity of the debt securities and certain tax matters will be passed
upon for us by Latham & Watkins LLP.

<div align='center'>EXPERTS</div>

The financial statements
and management's assessment of the effectiveness of internal control over financial reporting incorporated by reference in this prospectus
and elsewhere in the registration statement have been so incorporated by reference in reliance upon the reports of Grant Thornton LLP,
independent registered public accountants, upon the authority of said firm as experts in accounting and auditing.

<div align='center'>INCORPORATION
OF CERTAIN INFORMATION BY REFERENCE</div>

The SEC’s rules allow
us to “incorporate by reference” information into this prospectus, which means that we can disclose important information
to you by referring you to another document filed separately with the SEC. The information incorporated by reference is deemed to be
part of this prospectus, and subsequent information that we file with the SEC will automatically update and supersede that information.
Any