REDWOOD TRUST INC

Redwood Trust, Inc. is a specialty finance company focused on housing credit. The company aims to make quality housing accessible to American households. Its operating platforms provide liquidity to segments of the U.S. housing market not well served by government programs. Redwood Trust delivers customized housing credit investments to investors through its securitization platforms, whole-loan distribution activities, and publicly-traded securities. Its activities involve a mix of residential consumer and residential investor housing credit assets. The company operates across four reportable segments: Sequoia Mortgage Banking, CoreVest Mortgage Banking, Redwood Investments, and Legacy Investments. Redwood Trust's primary income sources are net interest income from investments and non-interest income from mortgage banking activities. Net interest income comes from interest earned on investments, minus interest expense on borrowed funds and other liabilities. Non-interest income from mortgage banking activities is generated by originating and acquiring loans, then selling, securitizing, or transferring them to investment portfolios. Redwood Trust, Inc. has been taxed as a real estate investment trust ("REIT") under the Internal Revenue Code of 1986, as amended, since its taxable year ended December 31, 1994.