CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) In Thousands	6 Months Ended
	Jun. 30, 2011	Jun. 30, 2010
Cash Flows From Operating Activities:
Net income attributable to Redwood Trust, Inc.	$ 27,604	$ 75,444
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization of premiums, discounts, and debt issuance costs, net	(17,462)	(16,409)
Depreciation and amortization of non-financial assets	515	439
Provision for loan losses	4,389	13,797
Non-cash equity award compensation	4,806	8,208
Market valuation adjustments, net	16,887	18,362
Realized gains on sales and calls, net	(9,699)	(60,417)
Net change in:
Accrued interest receivable	(199)	3,732
Deferred tax asset	3,487	2,358
Other assets	123	(13,079)
Accrued interest payable	6,851	5,602
Accrued expenses and other liabilities	(4,351)	(61,644)
Net cash provided by (used in) operating activities	32,951	(23,607)
Cash Flows From Investing Activities:
Purchases of real estate loans held-for-investment	(293,445)	(238,076)
Principal payments on real estate loans held-for-investment	181,840	148,647
Proceeds from sales of real estate loans held-for-sale	1,857
Purchases of available-for-sale securities	(46,498)	(186,057)
Proceeds from sales of available-for-sale securities	72,666	247,528
Principal payments on available-for-sale securities	58,416	71,083
Purchases of real estate securities trading		(17,137)
Proceeds from sales of trading securities	13,035	6,119
Principal payments on trading securities	30,261	31,102
Principal payments on other investments		9,675
Net (increase) decrease in restricted cash	(11,149)	67,492
Net cash provided by investing activities	6,983	140,376
Cash Flows From Financing Activities:
Net repayments on short-term debt	(3,246)
Proceeds from issuance of asset-backed securities	281,456	211,178
Repurchase of asset-backed securities		(8,639)
Deferred securities issuance costs	(1,695)	(1,667)
Repayments on asset-backed securities	(214,950)	(200,214)
Net settlements of derivatives	(14,733)	(26,268)
Net proceeds from issuance of common stock	(580)	1,731
Dividends paid	(40,250)	(39,865)
Change in noncontrolling interests	(12,896)	(7,467)
Net cash used in financing activities	(6,894)	(71,211)
Net increase in cash and cash equivalents	33,040	45,558
Cash and cash equivalents at beginning of period	46,937	242,818
Cash and cash equivalents at end of period	79,977	288,376
Supplemental Disclosures:
Cash paid for interest	36,404	32,646
Cash paid for taxes	45	15
Dividends declared but not paid at end of period	19,640	19,477
Transfers from real estate loans to real estate owned	$ 5,966	$ 8,925