Company: RWT-PA
Filing Date: 2025-01-16
Form Type: 424B5
Source: 0001104659-25-004099
Chunk: 54

Company: REDWOOD TRUST INC
Filing Date: 2025-01-16
Form: 424B5
Chunk 54
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 with applicable
laws and regulations, including our ability to obtain or maintain the governmental licenses; our ability to maintain our status as a
REIT for U.S. federal income tax purposes; limitations imposed on our business due to our REIT status and our status as exempt from registration
under the Investment Company Act of 1940; our common stock may experience price declines, volatility, and poor liquidity, and we may
reduce our dividends in a variety of circumstances; decisions about raising, managing, and distributing capital; our exposure to broad
market fluctuations; and other factors not presently identified.

<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. 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 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 shares. Our consolidated investment portfolio has evolved to incorporate
a diverse mix of residential, business purpose and multifamily investments. Our goal is to provide attractive returns to shareholders
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 Mortgage Banking, Business Purpose 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 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 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