Item 7.01. Regulation FD Disclosure.

On November 13, 2012, Redwood Trust, Inc. issued a press release announcing its Board of Directors' authorization to declare a fourth quarter regular dividend of $0.25 per share. The fourth quarter 2012 dividend is payable on December 27, 2012 to stockholders of record on December 14, 2012.

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.