Item 7.01. Regulation FD Disclosure.

On May 19, 2009, Redwood Trust, Inc. issued a press release announcing its Board of Directors' authorization to declare a second quarter regular dividend of $0.25 per share. The second quarter 2009 dividend is payable on July 21, 2009 to stockholders of record on June 30, 2009.

The information contained in this Item 7.01 and the attached Exhibit 99.1 is furnished to and not filed with the Securities and Exchange Commission, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, except as shall be expressly set forth by specific reference in such filing.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits

Exhibit 99.1 Press Release dated May 19, 2009

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