Company: RWT-PA
Filing Date: 2025-01-16
Form Type: 424B5
Source: 0001104659-25-004099
Chunk: 26

Company: REDWOOD TRUST INC
Filing Date: 2025-01-16
Form: 424B5
Chunk 26
---
 subsidiaries, taken as a whole, to any person other      
 than one of our subsidiaries; provided, however, that a transaction described                     
 in the immediately preceding bullet or this bullet in which the holders of all classes of         
 our common equity immediately prior to such transaction own, directly or indirectly, more         
 than 50% of all classes of common equity of the continuing or surviving corporation or transferee 
 or the parent thereof immediately after such transaction in substantially the same proportions    
 (relative to each other) as such ownership immediately prior to such transaction shall not        
 be a Change of Control pursuant to this bullet.                                                   |

“Change of Control Repurchase Event” means the
occurrence of a Change of Control.

<div align='center'>S-15</div>

Events of Default

The following description
replaces the description set forth under “Description of Debt Securities—Events of Default” in the accompanying prospectus
in its entirety.

Each of the following is an event of default:

| (1) | default                                                                                   
 in any payment of interest on any note when due and payable and the default continues for 
 a period of 30 days;                                                                      |

| (2) | default                                                                                   
 in the payment of principal of any note when due and payable at its stated maturity, upon 
 redemption or required repurchase, upon declaration of acceleration or otherwise;         |

| (3) | failure                                                                        
 by us to comply with our obligations under “—Consolidation, Merger and Sale of 
 Assets”;                                                                       |

| (4) | failure                                                                      
 by us to comply with our notice obligations under “—Offer to Repurchase Upon 
 a Change of Control Repurchase Event”;                                       |

| (5) | failure                                                                                          
 by us for 60 days after written notice from the trustee or the holders of at least 25% principal 
 amount of the notes then outstanding has been received by us to comply with any of our other     
 agreements contained in the notes or indenture;                                                  |

| (6) | default                                                                                          
 by us or any of our subsidiaries with respect to any mortgage, agreement or other instrument     
 under which there may be outstanding, or by which there may be secured or evidenced any debt     
 for money borrowed (other than non-recourse debt) in excess of $25 million in the aggregate      
 of ours and/or any such subsidiary, whether such debt now exists or shall hereafter be created,  
 which default results (i) in such debt becoming or being declared due and payable, and           
 such debt has