CONSOLIDATED STATEMENTS OF INCOME (USD $) In Thousands, except Share data	3 Months Ended				6 Months Ended
	Jun. 30, 2011		Jun. 30, 2010		Jun. 30, 2011		Jun. 30, 2010
Interest Income
Residential real estate loans	$ 18,904		$ 15,746		$ 37,372		$ 30,235
Commercial real estate loans	1,800		269		3,025		573
Real estate securities	32,234		40,458		66,859		84,357
Other investments			4				13
Cash and cash equivalents	17		93		32		110
Total interest income	52,955		56,570		107,288		115,288
Interest Expense
Short-term debt	(7)		(36)		(189)		(36)
Asset-backed securities issued	(21,251)		(18,988)		(40,675)		(36,054)
Long-term debt	(2,375)		(2,140)		(4,742)		(3,256)
Total interest expense	(23,633)		(21,164)		(45,606)		(39,346)
Net Interest Income	29,322		35,406		61,682		75,942
Provision for loan losses	(1,581)		(4,321)		(4,389)		(13,797)
Market valuation adjustments	(9,681)		(2,909)		(12,799)		(12,200)
Other-than-temporary impairments	(1,466)	[1]	(4,216)	[1]	(4,088)	[1]	(6,162)	[1]
Market valuation adjustments, net	(11,147)		(7,125)		(16,887)		(18,362)
Net Interest Income After Provision and Market Valuation Adjustments	16,594		23,960		40,406		43,783
Operating expenses	(12,087)		(11,227)		(23,600)		(28,533)
Realized gains on sales and calls, net	5,834		16,080		9,699		60,417
Net income before provision for income taxes	10,341		28,813		26,505		75,667
Provision for income taxes	(14)		(26)		(28)		(52)
Net income	10,327		28,787		26,477		75,615
Less: Net income (loss) attributable to noncontrolling interest	888		186		(1,127)		171
Net Income Attributable to Redwood Trust, Inc.	$ 9,439		$ 28,601		$ 27,604		$ 75,444
Basic earnings per common share	$ 0.12		$ 0.36		$ 0.34		$ 0.94
Diluted earnings per common share	$ 0.11		$ 0.35		$ 0.34		$ 0.94
Regular dividends declared per common share	$ 0.25		$ 0.25		$ 0.50		$ 0.50
Basic weighted average shares outstanding	78,324,057		77,800,642		78,176,767		77,739,279
Diluted weighted average shares outstanding	79,477,504		78,852,259		79,425,360		78,661,642

[1] For the three months ended June 30, 2011, other-than-temporary impairments were $2,655, of which $1,189 were recognized in Accumulated Other Comprehensive Income. For the three months ended June 30, 2010, other-than-temporary impairments were $7,086, of which $2,870 were recognized in Accumulated Other Comprehensive Income. For the six months ended June 30, 2011, other-than-temporary impairments were $5,967, of which $1,879 were recognized in Accumulated Other Comprehensive Income. For the six months ended June 30, 2010, other-than-temporary impairments were $10,701, of which $4,539 were recognized in Accumulated Other Comprehensive Income.