Company: RWT-PA
Filing Date: 2025-01-16
Form Type: 424B5
Source: 0001104659-25-004099
Chunk: 137

Company: REDWOOD TRUST INC
Filing Date: 2025-01-16
Form: 424B5
Chunk 137
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 about such accounts, and withhold 30% on certain payments
to non-compliant foreign financial institutions and certain other account holders. Foreign financial institutions located in jurisdictions
that have an intergovernmental agreement with the United States governing FATCA may be subject to different rules.

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Under the applicable Treasury
Regulations and administrative guidance, withholding under FATCA generally applies to payments of dividends on our capital stock or interest
on our debt securities. While withholding under FATCA would have applied also to payments of gross proceeds from the sale or other disposition
of our capital stock or debt securities on or after January 1, 2019, proposed Treasury Regulations eliminate FATCA withholding on
payments of gross proceeds entirely. Taxpayers generally may rely on these proposed Treasury Regulations until final Treasury Regulations
are issued. Because we may not know the extent to which a distribution is a dividend for U.S. federal income tax purposes at the time
it is made, for 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.

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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.

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VALIDITY
OF THE SECURITIES</div>

The validity of certain securities
will be passed upon for us by Venable LLP, Baltimore, Maryland. The