Company: RWT-PA
Filing Date: 2025-03-03
Form Type: S-3ASR
Source: 0001104659-25-019828
Chunk: 41

Company: REDWOOD TRUST INC
Filing Date: 2025-03-03
Form: S-3ASR
Chunk 41
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 or disposition of our capital stock or debt securities, or our election to be
taxed as a REIT.

You are urged to consult your tax advisors regarding the tax consequences to you of:

| · | the                                                                                        
 purchase, ownership and disposition of our capital stock or debt securities, including the 
 U.S. federal, state, local, non-U.S. and other tax consequences;                           |

| · | our                                                                      
 election to be taxed as a REIT for U.S. federal income tax purposes; and |

| · | potential                       
 changes in applicable tax laws. |

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Taxation of the Company

General

We have elected to be taxed
as a REIT under Sections 856 through 860 of the Code commencing with our taxable year ended December 31, 1994. We believe that
we have been organized and have operated in a manner that has allowed us to qualify for taxation as a REIT under the Code commencing
with such taxable year, and we intend to continue to be organized and to operate in this manner. However, qualification and taxation
as a REIT depend upon our ability to meet the various qualification tests imposed under the Code, including through actual operating
results, asset composition, distribution levels and diversity of stock ownership. Accordingly, no assurance can be given that we have
been organized and have operated, or will continue to be organized and operate, in a manner so as to qualify or remain qualified as a
REIT. See “Material U.S. Federal Income Tax Considerations—Taxation of the Company—Failure to Qualify” for
potential tax consequences if we fail to qualify as a REIT.

Latham & Watkins LLP
has acted as our tax counsel in connection with this prospectus and our U.S. federal income tax status as a REIT. Latham & Watkins
LLP has rendered an opinion to us, as of the date of this prospectus, to the effect that, commencing with our taxable year ended December 31,
2011, we have been organized and have operated in conformity with the requirements for qualification and taxation as a REIT under the
Code, and our proposed method of operation will enable us to continue to meet the requirements for qualification and taxation as a REIT
under the Code. It must be emphasized that this opinion was based on various assumptions and representations as to factual matters, including
representations made by us in a factual certificate provided by one or more of our officers.