exv99w1

Exhibit 99.1


	SUPPLEMENTAL FINANCIAL INFORMATION
	QUARTER ENDED DECEMBER 31, 2003 Financial Results

Table 1
Earnings
($ in Thousands, except per share data)


											GAAP
											Earnings /			Core
											Average			Earnings /
					Average						GAAP			Average
					Diluted						Common			Common
	GAAP		Core		Shares		GAAP		Core		Equity			Core Equity
	Earnings		Earnings		Outstanding		EPS		EPS		(Annualized)			(Annualized)
Q1: 2002	$	11,219	$	10,887		14,077,405	$	0.80	$	0.77		14.2	%		14.2	%
Q2: 2002		13,802		12,546		15,747,048		0.88		0.80		15.4	%		14.5	%
Q3: 2002		14,306		12,831		16,240,194		0.88		0.79		14.1	%		14.3	%
Q4: 2002		14,566		13,183		16,529,075		0.88		0.80		13.7	%		14.2	%
2002		53,893		49,447		15,658,623		3.44		3.16		14.3	%		14.3	%
Q1: 2003		14,932		14,962		16,983,513		0.88		0.88		12.9	%		15.4	%
Q2: 2003		22,212		20,761		18,433,165		1.21		1.13		17.6	%		19.4	%
Q3: 2003		24,636		24,481		19,018,487		1.30		1.29		17.8	%		21.4	%
Q4: 2003		69,933		30,485		19,800,863		3.53		1.54		50.0	%		26.0	%
2003		131,713		90,689		18,586,649		7.09		4.88		25.3	%		20.8	%

See Tables 5 & 6 for a description of core earnings and core equity and a related reconciliation of GAAP earnings to core earnings and GAAP equity to core equity.

Table 2
Net Interest Income
($ in Thousands)


																			Net			Net
																			Interest			Interest
																			Income/			Income/
	Total		Total		Net		Earning			Cost			Interest			Interest			Average			Average
	Interest		Interest		Interest		Asset			of			Rate			Rate			GAAP			Core
	Income		Expense		Income		Yield			Funds			Spread			Margin			Equity			Equity
Q1: 2002	$	30,716	$	15,602	$	15,114		4.92	%		2.82	%		2.10	%		2.36	%		17.69	%		18.13	%
Q2: 2002		36,252		18,489		17,763		4.71	%		2.69	%		2.02	%		2.25	%		18.41	%		19.12	%
Q3: 2002		42,093		24,291		17,802		4.07	%		2.57	%		1.51	%		1.68	%		16.47	%		18.51	%
Q4: 2002		54,155		33,323		20,832		3.59	%		2.35	%		1.24	%		1.35	%		18.50	%		20.92	%
2002		163,216		91,705		71,511		4.13	%		2.54	%		1.60	%		1.77	%		17.75	%		19.21	%
Q1: 2003		61,125		36,933		24,192		3.31	%		2.10	%		1.21	%		1.28	%		19.79	%		23.33	%
Q2: 2003		71,426		41,802		29,624		3.35	%		2.05	%		1.30	%		1.36	%		23.45	%		27.63	%
Q3: 2003		90,163		55,532		34,631		3.03	%		1.92	%		1.11	%		1.14	%		25.07	%		30.23	%
Q4: 2003		108,262		68,594		39,668		2.79	%		1.81	%		0.98	%		1.01	%		28.38	%		33.77	%
2003		330,976		202,861		128,115		3.05	%		1.93	%		1.12	%		1.16	%		24.32	%		28.91	%

Table 3
Interest Expense
($ in Thousands)


	Average				Total			Average		Long Term		Long Term			Average		Short Term		Short Term
	Total		Interest		Cost Of			Long Term		Interest		Debt Cost			Short Term		Interest		Debt Cost
	Debt		Expense		Funds			Debt		Expense		Of Funds			Debt		Expense		Of Funds
Q1: 2002	$	2,211,927	$	15,602		2.82	%	$	1,280,503	$	10,661		3.33	%	$	931,424	$	4,941		2.12	%
Q2: 2002		2,752,215		18,489		2.69	%		1,806,884		12,894		2.85	%		945,331		5,595		2.37	%
Q3: 2002		3,781,717		24,291		2.57	%		2,893,682		18,893		2.61	%		888,035		5,398		2.43	%
Q4: 2002		5,680,238		33,323		2.35	%		5,018,353		28,945		2.31	%		661,885		4,378		2.65	%
2002		3,616,506		91,705		2.54	%		2,760,490		71,393		2.59	%		856,016		20,312		2.37	%
Q1: 2003		7,036,183		36,933		2.10	%		6,637,053		34,993		2.11	%		399,130		1,940		1.94	%
Q2: 2003		8,160,393		41,802		2.05	%		7,861,252		40,163		2.04	%		299,141		1,639		2.19	%
Q3: 2003		11,541,894		55,532		1.92	%		11,197,470		53,861		1.92	%		344,424		1,671		1.94	%
Q4: 2003		15,119,594		68,594		1.81	%		14,708,963		66,806		1.82	%		410,631		1,788		1.74	%
2003		10,489,614		202,861		1.93	%		10,126,303		195,823		1.93	%		363,311		7,038		1.94	%

Table 4
Net Interest Income on an “At Risk” Assets and Recourse Debt Basis
($ in Thousands)


																			Net
	Interest		Interest		Net								“At Risk”			“At Risk”			Interest
	Income		Expense		Interest					Recourse			Asset			Asset			Income/
	On		On		Income on		“At Risk”			Cost			Interest			Interest			Average
	“At Risk”		Recourse		“At Risk”		Asset			of			Rate			Rate			Core
	Assets		Debt		Basis		Yield			Funds			Spread			Margin			Equity
Q1: 2002	$	20,055	$	4,941	$	15,114		6.30	%		2.12	%		4.18	%		4.75	%		18.13	%
Q2: 2002		23,358		5,595		17,763		7.02	%		2.37	%		4.65	%		5.34	%		19.12	%
Q3: 2002		23,200		5,398		17,802		7.03	%		2.43	%		4.60	%		5.39	%		18.51	%
Q4: 2002		25,210		4,378		20,832		9.07	%		2.65	%		6.42	%		7.49	%		20.92	%
2002		91,823		20,312		71,511		7.29	%		2.37	%		4.92	%		5.68	%		19.21	%
Q1: 2003		26,132		1,940		24,192		11.77	%		1.94	%		9.82	%		10.89	%		23.33	%
Q2: 2003		31,263		1,639		29,624		15.54	%		2.19	%		13.35	%		14.73	%		27.63	%
Q3: 2003		36,302		1,671		34,631		16.19	%		1.94	%		14.25	%		15.44	%		30.23	%
Q4: 2003		41,456		1,788		39,668		17.10	%		1.74	%		15.36	%		16.36	%		33.77	%
2003		135,153		7,038		128,115		15.18	%		1.94	%		13.25	%		14.39	%		28.91	%

See Table 7 for a reconciliation of GAAP interest income to net interest income on an “at risk” basis and GAAP interest expense to recourse cost of funds. See Table 8 for a description of recourse assets and recourse debt and a related reconciliation to reported GAAP assets and reported GAAP debt.

Table 5
Core Earnings (1)
($ in Thousands)


			Less: Net
			Realized &		Less:
			Unrealized		Variable
			Market		Stock
			Value		Option
	GAAP		Gains/		Valuation			Core
	Earnings		(Losses)		Adjustments			Earnings
Q1: 2002	$	11,219	$	875	$	(543	)	$	10,887
Q2: 2002		13,802		2,045		(789	)		12,546
Q3: 2002		14,306		730		745			12,831
Q4: 2002		14,566		1,461		(78	)		13,183
2002		53,893		5,111		(665	)		49,447
Q1: 2003		14,932		918		(948	)		14,962
Q2: 2003		22,212		2,941		(1,490	)		20,761
Q3: 2003		24,636		668		(513	)		24,481
Q4: 2003		69,933		42,149		(2,701	)		30,485
2003		131,713		46,676		(5,652	)		90,689

(1) Core earnings is not a measure of earnings in accordance with GAAP. Core earnings is calculated as GAAP earnings from ongoing operations less mark-to-market adjustments (which include realized and unrealized gains and losses on certain assets, interest rate agreements, and variable stock options). We believe that core earnings provides relevant and useful information regarding our results of operations in addition to GAAP measures of performance. This is, in part, because market valuation adjustments on only a portion of our assets and stock options and none of our liabilities are recognized through our Consolidated Statements of Income under GAAP, and thus GAAP valuation adjustments may not be fully indicative of changes in market values on our balance sheet as a whole or a reliable guide to our current operating performance. Furthermore, gains or losses realized upon sales of assets vary based on portfolio management decisions; a sale of an asset for a gain or a loss may or may not affect our ongoing earnings from operations. Because all companies and analysts do not calculate non-GAAP measures such as core earnings in the same fashion, core earnings as calculated by us may not be comparable to similarly titled measures reported by other companies.

Financial Results (continued)

Table 6
Core Equity (2)
( $ in Thousands)


									Average
			Balance						Balance								Average
	Total		Sheet				Average		Sheet		Average		Average		Average		Common
	GAAP		Mark-to-Mkt		Core		GAAP		Mark-to-Mkt		Core		Preferred		Common		Core
	Equity		Adjustments		Equity		Equity		Adjustments		Equity		Equity		Equity		Equity
Q1: 2002	$	364,444	$	11,015	$	353,429	$	341,766	$	8,360	$	333,406	$	26,517	$	315,249	$	306,889
Q2: 2002		417,930		35,826		382,104		385,887		14,213		371,674		26,517		359,370		345,157
Q3: 2002		445,728		54,148		391,580		432,310		47,705		384,605		26,517		405,793		358,088
Q4: 2002		473,033		69,146		403,887		450,464		52,200		398,264		26,517		423,947		371,747
2002		473,033		69,146		403,887		402,986		30,786		372,200		26,517		376,469		345,683
Q1: 2003		485,402		68,077		417,325		489,086		74,231		414,855		26,517		462,569		388,338
Q2: 2003		547,176		108,409		438,767		505,373		76,477		428,896		—		505,373		428,896
Q3: 2003		566,134		90,592		475,542		552,645		94,341		458,304		—		552,645		458,304
Q4: 2003		553,328		82,179		471,149		559,073		89,216		469,857		—		559,073		469,857
2003		553,328		82,179		471,149		526,808		83,637		443,171		6,538		520,270		436,633

(2) Core equity is calculated as GAAP equity less unrealized gains and losses on certain assets and interest rate agreements. We believe measurements based on core equity provide relevant useful information regarding our results of operations in addition to GAAP measures of performance. This is, in part, because market valuation adjustments reflected in GAAP equity represent unrealized gains and losses on a portion of the balance sheet only and may not be reflective of the equity available to invest in operations. Because all companies and analysts do not calculate non-GAAP measures in the same fashion, core equity and ratios using core equity as calculated by the us may not be comparable to similarly titled measures reported by other companies. Average Common Equity measures are calculated by excluding Average Preferred Equity.

Table 7
Reconciliation of GAAP Interest Income and Interest Expense to Interest Income on “At Risk” Assets and Interest Expense on Recourse Debt
($ in Thousands)


			Interest		Interest				Interest		Interest
			Income		Income				Expense		Expense
	Total		On Non-		On		Total		On Non-		On
	Interest		Recourse		“At Risk”		Interest		Recourse		Recourse
	Income		Assets		Assets		Expense		Debt		Debt

Q1: 2002	$	30,716	$	10,661	$	20,055	$	15,602	$	10,661	$	4,941
Q2: 2002		36,252		12,894		23,358		18,489		12,894		5,595
Q3: 2002		42,093		18,893		23,200		24,291		18,893		5,398
Q4: 2002		54,155		28,945		25,210		33,323		28,945		4,378
2002		163,216		71,393		91,823		91,705		71,393		20,312
Q1: 2003		61,125		34,993		26,132		36,933		34,993		1,940
Q2: 2003		71,426		40,163		31,263		41,802		40,163		1,639
Q3: 2003		90,163		53,861		36,302		55,532		53,861		1,671
Q4: 2003		108,262		66,806		41,456		68,594		66,806		1,788
2003		330,976		195,823		135,153		202,861		195,823		7,038

Table 8
Leverage Ratios
Equity to Assets and Debt to Equity
($ in thousands)


							GAAP			GAAP									Reported		Recourse
			Non-		(3)		Equity to			Equity to					Non-		(3)		Debt to		Debt to
	Reported		Recourse		Recourse		Reported			Recourse			Reported		Recourse		Recourse		GAAP		GAAP
	Assets		Assets		Assets		Assets			Assets			Debt		Debt		Debt		Equity		Equity
Q1: 2002	$	2,739,838	$	1,252,881	$	1,486,957		13	%		25	%	$	2,356,972	$	1,234,459	$	1,122,513		6.5		3.1
Q2: 2002		3,689,782		2,266,849		1,422,933		11	%		29	%		3,246,603		2,241,600		1,005,003		7.8		2.4
Q3: 2002		5,674,302		4,394,493		1,279,809		8	%		35	%		5,199,362		4,365,281		834,081		11.7		1.9
Q4: 2002		7,007,772		6,435,025		572,747		7	%		83	%		6,496,734		6,397,020		99,714		13.7		0.2
2002		7,007,772		6,435,025		572,747		7	%		83	%		6,496,734		6,397,020		99,714		13.7		0.2
Q1: 2003		8,172,063		7,210,944		961,119		6	%		51	%		7,646,408		7,170,691		475,717		15.8		1.0
Q2: 2003		10,356,052		9,591,192		764,860		5	%		72	%		9,760,315		9,542,631		217,684		17.8		0.4
Q3: 2003		14,901,374		13,835,517		1,065,857		4	%		53	%		14,281,936		13,782,213		499,723		25.2		0.9
Q4: 2003		17,626,770		16,837,005		789,765		3	%		70	%		17,019,023		16,782,586		236,437		30.8		0.4
2003		17,626,770		16,837,005		789,765		3	%		70	%		17,019,023		16,782,586		236,437		30.8		0.4

(3) Assets that have been sold to non-recourse securitization trusts and long-term debt that is non-recourse to Redwood are reported on our balance sheet. Only our net investments in the equity of these trusts constitute “at-risk” assets to us. If we had used different terms or forms of securitization these transactions may have been accounted for as sales. With sales accounting, our reported balance sheet (both assets and liabilities) would be substantially smaller (although the economics of the transaction and our exposure to risks would be unchanged). If we structured the securitizations differently and therefore accounted for them as sales rather than financings, our asset-based margins would have been different and, in some respects, reported on a basis that is more comparable to some other financial institutions. Our interest rate spread and our interest rate margin would have been higher and would show a positive trend in recent quarters. Our reported debt-to-equity ratio would have been substantially lower. Table 4 above presents our interest income and interest expense as if we had structured our securitizations to obtain sales accounting treatment rather than financing accounting treatment; effectively, on an “at-risk” basis for assets and on a recourse basis for liabilities.

Table 9
Reconciliation of Average Reported Assets to Average “At Risk” Assets and
Average Reported Debt to Average Recourse Debt
($ in Thousands)


			Average						Average
	Average		Non-		Average		Average		Non-		Average
	Reported		Recourse		“At Risk”		Reported		Recourse		Recourse
	Assets		Assets		Assets		Debt		Debt		Debt
Q1: 2002	$	2,564,847	$	1,291,657	$	1,273,190	$	2,211,927	$	1,280,503	$	931,424
Q2: 2002		3,158,751		1,827,533		1,331,218		2,752,215		1,806,884		945,331
Q3: 2002		4,234,477		2,914,133		1,320,344		3,781,717		2,893,682		888,035
Q4: 2002		6,158,898		5,046,549		1,112,349		5,680,238		5,018,353		661,885
2002		4,039,652		2,780,650		1,259,002		3,616,506		2,760,490		856,016
Q1: 2003		7,553,727		6,665,511		888,216		7,036,183		6,637,053		399,130
Q2: 2003		8,687,371		7,882,857		804,514		8,160,393		7,861,252		299,141
Q3: 2003		12,131,616		11,234,547		897,069		11,541,894		11,197,470		344,424
Q4: 2003		15,758,417		14,788,713		969,704		15,119,594		14,708,963		410,631
2003		11,058,272		10,168,153		890,119		10,489,614		10,126,303		363,311

Portfolios

Table 10
Balances & Yields
( $ in Thousands)


	At period end													For period ended
			Unamortized						Unrealized			Net
	Current		Premium/			Credit			Gain/			Book		Average		Interest
	Face		(Discount)			Reserve			(loss)			Value		Balance*		Income		Yield

Total Earning Assets
Q1: 2002	$	2,912,217	$	(10,332	)	$	(200,037	)	$	11,016			2,712,864	$	2,498,565		30,716		4.92	%
Q2: 2002		3,854,545		(14,318	)		(212,296	)		35,827			3,663,758		3,080,165		36,252		4.71	%
Q3: 2002		5,829,188		(6,941	)		(227,346	)		54,148			5,649,049		4,131,870		42,093		4.07	%
Q4: 2002		7,158,374		(25,644	)		(233,162	)		72,226			6,971,794		6,042,042		54,155		3.59	%
2002		7,158,374		(25,644	)		(233,162	)		72,226			6,971,794		3,948,399		163,216		4.13	%
Q1: 2003		8,356,918		(50,540	)		(244,056	)		72,282			8,134,604		7,393,566		61,125		3.31	%
Q2: 2003		10,471,188		(62,789	)		(216,834	)		115,903			10,307,468		8,523,925		71,426		3.35	%
Q3: 2003		14,969,841		(23,059	)		(191,264	)		91,992			14,847,510		11,911,196		90,163		3.03	%
Q4: 2003		17,657,339		21,354			(217,806	)		82,600			17,543,487		15,503,865		108,262		2.79	%
2003		17,657,339		21,354			(217,806	)		82,600			17,543,487		10,858,311		330,976		3.05	%
Residential Real Estate Loans
Q1: 2002	$	1,790,239	$	9,502		$	(5,481	)	$	—			1,794,260	$	1,544,924		14,125		3.66	%
Q2: 2002		2,795,628		13,881			(5,953	)		—			2,803,556		2,201,384		19,601		3.56	%
Q3: 2002		4,736,645		31,859			(6,611	)		—			4,761,893		3,262,462		24,447		3.00	%
Q4: 2002		6,190,674		32,776			(8,271	)		—			6,215,179		5,318,910		37,264		2.80	%
2002		6,190,674		32,776			(8,271	)		—			6,215,179		3,092,755		95,437		3.09	%
Q1: 2003		7,297,515		33,520			(9,996	)		—			7,321,039		6,625,539		42,314		2.55	%
Q2: 2003		9,206,986		52,593			(12,159	)		—			9,247,420		7,670,484		47,299		2.47	%
Q3: 2003		13,703,475		123,392			(13,617	)		—			13,813,250		10,958,059		63,638		2.32	%
Q4: 2003		16,110,748		144,748			(16,336	)		—			16,239,160		14,381,270		82,727		2.30	%
2003		16,110,748		144,748			(16,336	)		—			16,239,160		9,932,961		235,978		2.38	%
Residential Loan Credit-Enhancement Securities
Q1: 2002	$	460,035	$	(28,058	)	$	(194,556	)	$	12,411			249,832	$	201,540		6,695		13.29	%
Q2: 2002		492,642		(35,745	)		(206,343	)		34,205			284,759		238,282		9,006		15.12	%
Q3: 2002		542,669		(49,360	)		(220,735	)		51,556			324,130		257,844		10,443		16.20	%
Q4: 2002		559,186		(58,578	)		(224,891	)		76,762			352,479		271,016		11,283		16.65	%
2002		559,186		(58,578	)		(224,891	)		76,762			352,479		242,404		37,427		15.44	%
Q1: 2003		614,111		(84,648	)		(234,060	)		77,759			373,162		278,339		13,693		19.68	%
Q2: 2003		598,134		(113,358	)		(204,675	)		113,310			393,411		279,010		17,977		25.77	%
Q3: 2003		603,855		(145,356	)		(177,647	)		92,559			373,411		270,991		19,027		28.09	%
Q4: 2003		623,692		(123,329	)		(200,970	)		79,334			378,727		272,999		17,394		25.49	%
2003		623,692		(123,329	)		(200,970	)		79,334			378,727		275,308		68,091		24.73	%
Commercial Real Estate Loans
Q1: 2002	$	50,057	$	(677	)	$	—		$	—			49,380	$	50,170		1,274		10.16	%
Q2: 2002		50,436		(638	)		—			—			49,798		49,369		1,233		9.99	%
Q3: 2002		51,318		(654	)		—			—			50,664		50,102		1,280		10.22	%
Q4: 2002		30,250		(980	)		—			—			29,270		47,935		1,213		10.12	%
2002		30,250		(980	)		—			—			29,270		49,390		5,000		10.12	%
Q1: 2003		32,223		(1,009	)		—			—			31,214		30,888		816		10.57	%
Q2: 2003		42,492		(7,970	)		—			—			34,522		33,138		960		11.59	%
Q3: 2003		31,211		(7,603	)		—			—			23,608		30,471		939		12.33	%
Q4: 2003		31,180		(8,261	)		(500	)		—			22,419		23,464		244		4.16	%
2003		31,180		(8,261	)		(500	)		—			22,419		29,473		2,959		10.04	%
Securities
Q1: 2002	$	601,926	$	8,901		$	—		$	(1,395	)		609,432	$	676,692		8,514		5.03	%
Q2: 2002		502,684		8,184			—			1,622			512,490		529,843		6,222		4.70	%
Q3: 2002		477,950		11,214			—			2,592			491,756		493,997		5,719		4.63	%
Q4: 2002		339,095		1,138			—			(4,536	)		335,697		320,154		3,949		4.93	%
2002		339,095		1,138			—			(4,536	)		335,697		504,401		24,404		4.84	%
Q1: 2003		370,187		1,597			—			(5,477	)		366,307		360,084		4,192		4.66	%
Q2: 2003		587,038		5,946			—			2,593			595,577		453,546		5,057		4.46	%
Q3: 2003		599,144		6,508			—			(567	)		605,085		602,622		6,478		4.30	%
Q4: 2003		833,252		8,196			—			3,266			844,714		709,867		7,803		4.40	%
2003		833,252		8,196			—			3,266			844,714		532,683		23,530		4.42	%
Cash & Equivalents
Q1: 2002	$	9,960	$	—		$	—		$	—			9,960				108
Q2: 2002		13,155		—			—			—			13,155				190
Q3: 2002		20,606		—			—			—			20,606				204
Q4: 2002		39,169		—			—			—			39,169				446
2002		39,169		—			—			—			39,169				948
Q1: 2003		42,882		—			—			—			42,882				110
Q2: 2003		36,539											36,539				133
Q3: 2003		32,156											32,156				81
Q4: 2003		58,467											58,467				94
2003		58,467		—			—			—			58,467				418

* Average excludes unrealized gains(losses) from mark-to-market adjustments.

Portfolios (continued)

Table 11
Portfolio Activity
( $ in Thousands)


									Discount/						Net		Net			Net
						Principal			(Premium)			Credit			Charge-offs/		Mark-to-Mkt			Increase/
	Acquisitions		Sales			Payments			Amortization			Provision			(Recoveries)		Adjustment			(Decrease)
Residential Real Estate Loans
Q1: 2002	$	417,276	$	—		$	(95,924	)	$	(1,672	)	$	(282	)	$	—	$	—		$	319,398
Q2: 2002		1,146,621		(46,683	)		(89,582	)		(1,060	)		(472	)		—		472			1,009,296
Q3: 2002		2,075,296		(2,960	)		(109,896	)		(3,502	)		(894	)		236		57			1,958,337
Q4: 2002		1,616,400		—			(155,915	)		(5,754	)		(1,660	)		—		215			1,453,286
2002		5,255,593		(49,643	)		(451,317	)		(11,988	)		(3,308	)		236		744			4,740,317
Q1: 2003		1,338,920		(73,137	)		(152,768	)		(6,156	)		(1,756	)		31		726			1,105,860
Q2: 2003		2,168,181		—			(234,582	)		(5,055	)		(2,163	)		—		—			1,926,381
Q3: 2003		4,996,403		—			(420,395	)		(8,720	)		(1,458	)		—		—			4,565,830
Q4: 2003		2,897,863		(605	)		(458,957	)		(9,684	)		(2,769	)		50		12			2,425,910
2003		11,401,367		(73,742	)		(1,266,702	)		(29,615	)		(8,146	)		81		738			10,023,981
Residential Loan Credit-Enhancement Securities
Q1: 2002	$	59,157	$	(5,037	)	$	(4,270	)	$	366		$	—		$	—	$	8,803		$	59,019
Q2: 2002		25,849		(898	)		(15,801	)		1,767			—			—		24,010			34,927
Q3: 2002		28,983		—			(9,437	)		2,722			—			—		17,103			39,371
Q4: 2002		13,442					(13,573	)		3,275			—			—		25,205			28,349
2002		127,431		(5,935	)		(43,081	)		8,130			—			—		75,121			161,666
Q1: 2003		37,077		—			(23,212	)		5,545			—			—		1,273			20,683
Q2: 2003		11,265		(1,248	)		(38,773	)		10,024			—			—		38,981			20,249
Q3: 2003		23,164		—			(37,647	)		11,432			—			—		(16,949	)		(20,000	)
Q4: 2003		77,367		—			(116,575	)		10,188			—			—		34,336			5,316
2003		148,873		(1,248	)		(216,207	)		37,189			—			—		57,641			26,248
Commercial Real Estate Loans
Q1: 2002	$	140	$	—		$	(1,873	)	$	28		$	—		$	—	$	1		$	(1,704	)
Q2: 2002		470		—			(53	)		—			—			—		1			418
Q3: 2002		919		—			(54	)		—			—			—		1			866
Q4: 2002		—		—			(21,068	)		24			—			—		(350	)		(21,394	)
2002		1,529		—			(23,048	)		52			—			—		(347	)		(21,814	)
Q1: 2003		2,011		—			(68	)		—			—			—		1			1,944
Q2: 2003		3,408		—			(34	)		(67	)		—			—		1			3,308
Q3: 2003		1,023		—			(12,034	)		(33	)		—			—		130			(10,914	)
Q4: 2003		—		—			(31	)		(158	)		(500	)		—		(500	)		(1,189	)
2003		6,442		—			(12,167	)		(258	)		(500	)		—		(368	)		(6,851	)
Securities
Q1: 2002	$	76,701	$	(89,395	)	$	(60,040	)	$	(1,701	)	$	—		$	—	$	385		$	(74,050	)
Q2: 2002		23,026		(56,802	)		(65,617	)		(1,249	)		—			—		3,700			(96,942	)
Q3: 2002		6,811		—			(31,830	)		(1,052	)		—			—		5,337			(20,734	)
Q4: 2002		196,279		(315,308	)		(31,009	)		(24	)		—			—		(5,997	)		(156,059	)
2002		302,817		(461,505	)		(188,496	)		(4,026	)		—			—		3,425			(347,785	)
Q1: 2003		42,955		—			(11,329	)		3			—			—		(1,019	)		30,610
Q2: 2003		237,515		(4,051	)		(12,126	)		(111	)		—			—		8,043			229,270
Q3: 2003		28,702		—			(12,677	)		(96	)		—			—		(6,421	)		9,508
Q4: 2003		256,588		—			(17,658	)		(343	)		—			—		1,042			239,629

Table 12
Residential Credit Results
($ in Thousands)


									Total
			Internally-				(4)		Credit
			Designated		External		Total		Protection
	Underlying		Credit		Credit		Credit		As % of
	Loans		Reserves		Enhancement		Protection		Loans
Total Residential Portfolio
Q1: 2002	$	66,620,865	$	200,037	$	79,924	$	279,961		0.42	%
Q2: 2002		68,864,715		212,296		65,102		277,398		0.40	%
Q3: 2002		73,245,252		227,346		64,147		291,493		0.40	%
Q4: 2002		64,874,289		233,162		63,179		296,341		0.46	%
2002		64,874,289		233,162		63,179		296,341		0.46	%
Q1: 2003		68,069,255		244,056		61,814		305,870		0.45	%
Q2: 2003		61,071,919		216,834		58,296		275,130		0.45	%
Q3: 2003		57,493,402		191,264		51,985		243,249		0.42	%
Q4: 2003		84,372,335		217,306		46,476		263,782		0.31	%
2003		84,372,335		217,306		46,476		263,782		0.31	%
Residential Real Estate Loans
Q1: 2002	$	1,790,239	$	5,481	$	—	$	5,481		0.31	%
Q2: 2002		2,795,628		5,953		—		5,953		0.21	%
Q3: 2002		4,736,645		6,611		—		6,611		0.14	%
Q4: 2002		6,190,674		8,271		—		8,271		0.13	%
2002		6,190,674		8,271		—		8,271		0.13	%
Q1: 2003		7,297,515		9,996		—		9,996		0.14	%
Q2: 2003		9,206,986		12,159		—		12,159		0.13	%
Q3: 2003		13,703,475		13,617		—		13,617		0.10	%
Q4: 2003		16,110,748		16,336		—		16,336		0.10	%
2003		16,110,748		16,336		—		16,336		0.10	%
Residential Loan Credit-Enhancement Securities
Q1: 2002	$	64,826,605	$	194,556	$	79,924	$	274,480		0.42	%
Q2: 2002		66,061,159		206,343		65,102		271,445		0.41	%
Q3: 2002		68,483,359		220,735		64,147		284,882		0.42	%
Q4: 2002		58,659,110		224,891		63,179		288,070		0.49	%
2002		58,659,110		224,891		63,179		288,070		0.49	%
Q1: 2003		60,748,216		234,060		61,814		295,874		0.49	%
Q2: 2003		51,824,499		204,675		58,296		262,971		0.51	%
Q3: 2003		43,680,152		177,647		51,985		229,632		0.53	%
Q4: 2003		68,133,175		200,970		46,476		247,446		0.36	%
2003		68,133,175		200,970		46,476		247,446		0.36	%

[Additional columns below]

[Continued from above table, first column(s) repeated]


								Losses To
								Securities		Redwood's			Total Credit
						Total		Junior To		Share of Net			Losses As %
	Delinquent		Delinquent			Credit		Redwood's		Charge Offs			of Loans
	Loans		Loan %			Losses		Interest		(Recoveries)			(Annualized)
Total Residential Portfolio
Q1: 2002	$	134,775		0.20	%	$	452	$	618	$	(166	)		0.01	%
Q2: 2002		153,217		0.22	%		115		189		(74	)		0.01	%
Q3: 2002		152,894		0.21	%		386		103		283			0.01	%
Q4: 2002		150,353		0.23	%		377		163		214			0.01	%
2002		150,353		0.23	%		1,330		1,073		257			0.01	%
Q1: 2003		162,657		0.24	%		1,171		456		715			0.01	%
Q2: 2003		163,894		0.27	%		384		152		232			0.01	%
Q3: 2003		179,871		0.31	%		986		38		948			0.01	%
Q4: 2003		137,978		0.16	%		1,645		357		1,288			0.01	%
2003		137,978		0.16	%		4,186		1,003		3,183			0.01	%
Residential Real Estate Loans
Q1: 2002	$	4,926		0.28	%	$	—	$	—				$	0.01	%
Q2: 2002		3,257		0.12	%		—		—		—			0.01	%
Q3: 2002		1,387		0.03	%		236		—		236			0.01	%
Q4: 2002		4,127		0.07	%		—		—		—			0.01	%
2002		4,127		0.07	%		236		—		236			0.01	%
Q1: 2003		1,159		0.02	%		31		—		31			0.01	%
Q2: 2003		3,895		0.04	%		—		—		—			0.01	%
Q3: 2003		1,598		0.01	%		—		—		—			0.01	%
Q4: 2003		5,419		0.03	%		50		—		50			0.01	%
2003		5,419		0.03	%		81		—		81			0.01	%
Residential Loan Credit-Enhancement Securities
Q1: 2002	$	129,849		0.20	%	$	452	$	618	$	(166	)		0.01	%
Q2: 2002		149,960		0.23	%		115		189		(74	)		0.01	%
Q3: 2002		151,507		0.22	%		150		103		47			0.01	%
Q4: 2002		146,226		0.25	%		377		163		214			0.01	%
2002		146,226		0.25	%		1,094		1,073		21			0.01	%
Q1: 2003		161,498		0.27	%		1,140		456		684			0.01	%
Q2: 2003		159,999		0.31	%		384		152		232			0.01	%
Q3: 2003		178,273		0.41	%		986		38		948			0.01	%
Q4: 2003		132,559		0.19	%		1,595		357		1,238			0.01	%
2003		132,559		0.19	%		4,105		1,003		3,102			0.01	%

Loan Characteristics

Table 13
Residential Real Estate Loan Characteristics
(at period end, all dollars in thousands)


	Dec. 2003			Sep. 2003			Jun. 2003			Mar. 2003			Dec. 2002			Sep. 2002			Jun. 2002
Retained Residential Loans	$	16,239,160		$	13,813,250		$	9,247,420		$	7,321,039		$	6,215,179		$	4,761,893		$	2,803,556
Number of loans		43,919			37,122			24,988			19,805			16,669			12,580			7,394
Average loan size	$	370		$	372		$	370		$	370		$	373		$	379		$	379
Adjustable %		99	%		99	%		99	%		99	%		99	%		98	%		96	%
Hybrid %		1	%		1	%		1	%		1	%		1	%		2	%		4	%
Fixed %		0	%		0	%		0	%		0	%		0	%		0	%		0	%
Northern California		13	%		13	%		13	%		13	%		12	%		12	%		13	%
Southern California		12	%		12	%		12	%		12	%		12	%		12	%		12	%
Florida		11	%		11	%		12	%		12	%		12	%		11	%		13	%
Georgia		6	%		6	%		5	%		5	%		6	%		6	%		6	%
New York		5	%		6	%		6	%		7	%		8	%		8	%		9	%
New Jersey		5	%		5	%		4	%		5	%		5	%		5	%		5	%
Illinois		4	%		4	%		4	%		4	%		4	%		4	%		4	%
Texas		4	%		4	%		3	%		3	%		3	%		3	%		3	%
Arizona		4	%		3	%		3	%		3	%		3	%		3	%		2	%
Colorado		4	%		3	%		3	%		3	%		3	%		3	%		3	%
North Carolina		3	%		3	%		3	%		3	%		3	%		3	%		2	%
Other states (none greater than 3%)		29	%		30	%		32	%		30	%		29	%		30	%		28	%
Year 2003 origination		66	%		58	%		40	%		11	%		0	%		0	%		0	%
Year 2002 origination		28	%		34	%		49	%		72	%		78	%		70	%		47	%
Year 2001 origination		4	%		5	%		6	%		11	%		13	%		18	%		31	%
Year 2000 origination		0	%		0	%		0	%		0	%		0	%		0	%		0	%
Year 1999 origination		1	%		1	%		1	%		2	%		2	%		3	%		5	%
Year 1998 origination or earlier		2	%		2	%		4	%		4	%		7	%		9	%		17	%
% balance in loans > $1mm per loan		16	%		17	%		15	%		14	%		14	%		15	%		15	%

Table 14
Residential Loan Credit-Enhancement Securities – Underlying Collateral Characteristics
(all dollars in thousands)


	Dec. 2003			Sep. 2003			Jun. 2003			Mar. 2003			Dec. 2002			Sep. 2002			Jun. 2002
First loss position, principal value	$	255,570		$	236,968		$	233,787		$	236,122		$	215,046		$	206,062		$	181,179
Second loss position, principal value		174,592			168,547			168,524			176,864			163,428			152,433			139,290
Third loss position, principal value		193,530			198,340			195,823			201,125			180,712			184,174			172,173

Total principal value	$	623,692		$	603,855		$	598,134		$	614,111		$	559,186		$	542,669		$	492,642
First loss position, reported value	$	78,030		$	70,458		$	74,470		$	63,675		$	65,292		$	52,595		$	46,979
Second loss position, reported value		134,225			128,280			139,788			130,415			121,491			104,928			90,878
Third loss position, reported value		166,472			174,673			179,153			179,072			165,696			166,607			146,902

Total reported value	$	378,727		$	373,411		$	393,411		$	373,162		$	352,479		$	324,130		$	284,759
Internal Designated Credit Reserves	$	200,970		$	177,647		$	204,675		$	234,060		$	224,891		$	220,735		$	206,343
External Credit Enhancement		46,476			51,985			58,296			61,814			63,179			64,147			65,102

Total Credit Protection	$	247,446		$	229,632		$	262,971		$	295,874		$	288,070		$	284,882		$	271,445
As % of Total Portfolio		0.36	%		0.53	%		0.51	%		0.49	%		0.49	%		0.42	%		0.41	%
Underlying Residential Real Estate Loans	$	68,133,175		$	43,680,152		$	51,824,499		$	60,748,216		$	58,659,110		$	68,483,359		$	66,061,159
Number of credit -enhanced loans		152,083			96,424			116,730			138,327			135,196			160,695			165,515
Average loan size	$	448		$	453		$	444		$	439		$	434		$	426		$	399
Adjustable %		21	%		21	%		36	%		27	%		20	%		20	%		19	%
Hybrid %		64	%		57	%		36	%		39	%		37	%		28	%		20	%
Fixed %		15	%		22	%		28	%		34	%		43	%		52	%		61	%
Northern California		26	%		25	%		26	%		26	%		27	%		27	%		25	%
Southern California		25	%		25	%		24	%		24	%		25	%		24	%		24	%
New York		5	%		6	%		6	%		5	%		5	%		4	%		5	%
Florida		4	%		4	%		4	%		4	%		3	%		3	%		3	%
Texas		3	%		3	%		3	%		3	%		3	%		3	%		4	%
Massachusetts		3	%		3	%		3	%		3	%		3	%		3	%		3	%
New Jersey		3	%		3	%		3	%		3	%		3	%		3	%		3	%
Other states (none greater than 3%)		31	%		31	%		31	%		32	%		31	%		33	%		33	%
Year 2003 origination		51	%		28	%		12	%		2	%		0	%		0	%		0	%
Year 2002 origination		26	%		34	%		42	%		41	%		28	%		25	%		11	%
Year 2001 origination		11	%		18	%		24	%		31	%		40	%		43	%		49	%
Year 2000 origination		2	%		4	%		4	%		4	%		5	%		5	%		6	%
Year 1999 origination		3	%		6	%		7	%		9	%		11	%		11	%		16	%
Year 1998 or earlier origination		7	%		10	%		11	%		13	%		16	%		16	%		18	%
% balance in loans > $1mm per loan		11	%		11	%		10	%		10	%		8	%		6	%		5	%

Loan Characteristics (continued)

Table 15
Commercial Real Estate Loans – Characteristics
(at period end, all dollars in thousands)


	Dec. 2003			Sep. 2003			Jun. 2003			Mar. 2003			Dec. 2002			Sep. 2002			Jun. 2002
Commercial Mortgage Loans	$	22,419		$	23,608		$	34,522		$	31,214		$	29,270		$	50,664		$	49,978
Number of Loans		9			9			12			10			7			9			8
Average Loan Size	$	2,491		$	2,623		$	2,877		$	3,121		$	4,181		$	5,629		$	6,247
Serious Delinquency	$	—		$	—		$	650		$	650		$	650		$	—		$	—
Realized Credit losses		—			—			—			—			—			—			—
California %		65	%		65	%		46	%		40	%		36	%		62	%		61	%

Table 16
Securities Portfolio – Characteristics at December 31, 2003
($ in thousands)


			Rating:
	Total		AAA		AA		A		BBB		BB		B		Unrated
Commercial Real Estate	$	144,480	$	15,535	$	—	$	23,154	$	90,590	$	11,178	$	4,023	$	—
Residential Prime		213,244		26,215		116,995		27,092		42,942		—		—		—
Residential Subprime		236,989		—		14,478		180,610		41,901		—		—		—
Residential Second Lien		107,162		—		55,109		47,695		4,358		—		—		—
Manufactured Housing		14,057		2,863		5,521		—		—		3,760		1,913		—
Corporate REIT Debt		61,107		—		—		7,428		48,828		4,851		—		—
Real Estate CDOs		67,675		4,877		14,719		20,645		23,131		—		—		4,303

Total Securities Portfolio	$	844,714	$	49,490	$	206,822	$	306,624	$	251,750	$	19,789	$	5,936	$	4,303

Table 17
Asset / Liability Matching at December 31, 2003
($ in thousands)


			One-		Six-		One-				Non				Total
			Month		Month		Year		Fixed/		Interest				Liabilities
Asset	Asset		LIBOR		LIBOR		Treasury		Hybrid		Bearing				And
Type	Amount		Liabilities		Liabilities		Liabilities		Liabilities		Liabilities		Equity		Equity
Cash (unrestricted)	$	58,467	$	58,467	$	—	$	—	$	—	$	—	$	—	$	58,467
One-Month LIBOR		4,301,733		4,301,733		—		—		—		—		—		4,301,733
Six-Month LIBOR		12,478,574		1,634,714		10,340,216		114,035		—		—		389,609		12,478,574
Other ARM		51,870		—		—		51,870		—		—		—		51,870
Fixed / Hybrid < 1yr*		108,090		—		—		—		41,460		—		66,630		99,579
Fixed / Hybrid > 1yr		544,753		—		—		—		476,528		—		68,225		553,264
Non-Earning Assets		83,283		—		—		—		—		54,419		28,864		83,283

Total	$	17,626,770	$	5,994,914	$	10,340,216	$	165,905	$	517,988	$	54,419	$	553,328	$	17,626,770

* Projected principal receipts on fixed-rate and hybrid assets over the next twelve months.

Long-Term Debt Characteristics

Table 18
Long-Term Debt Characteristics – Residential Mortgage Loans (Sequoia)
(all dollars in thousands)


											Principal		Interest
				Original					Estimated		Outstanding		Rate At
Sequoia Long-	Debt	Issue		Issue			Stated		Callable		At Dec. 31,		Dec. 31,
Term Debt Issue	Rating	Date		Amount		Index	Maturity		Date		2003		2003
Sequoia 1 A1	AAA		07/29/97	$	334,347	1m LIBOR		2028	Called		$	—	NM
Sequoia 1 A2	AAA		07/29/97		200,000	Fed Funds		2028	Called			—	NM
Sequoia 2 A1	AAA		11/06/97		592,560	1y Treasury		2029		2004		166,214		2.37	%
Sequoia 2 A2	AAA		11/06/97		156,600	1m LIBOR		2029		2004		43,926		1.48	%
Sequoia 3 A1	AAA		06/26/98		225,459	Fixed to 12/02		2028	Retired			—	NM
Sequoia 3 A2	AAA		06/26/98		95,000	Fixed to 12/02		2028	Retired			—	NM
Sequoia 3 A3	AAA		06/26/98		164,200	Fixed to 12/02		2028	Retired			—	NM
Sequoia 3 A4	AAA		06/26/98		121,923	1m LIBOR		2028	Called			—	NM
Sequoia 3 M1	AA/AAA		06/26/98		16,127	1m LIBOR		2028	Called			—	NM
Sequoia 3 M2	A/AA		06/26/98		7,741	1m LIBOR		2028	Called			—	NM
Sequoia 3 M3	BBB/A		06/26/98		4,838	1m LIBOR		2028	Called			—	NM
Sequoia 1A A1	AAA		05/04/99		157,266	1m LIBOR		2028	Called			—	NM
Sequoia 4 A	AAA		03/21/00		377,119	1m LIBOR		2024		2007		171,367		1.51	%
Sequoia 5 A	AAA		10/29/01		496,667	1m LIBOR		2026		2008		368,829		1.50	%
Sequoia 5 B1	AA		10/29/01		5,918	1m LIBOR		2026		2008		5,918		1.95	%
Sequoia 5 B2	A		10/29/01		5,146	1m LIBOR		2026		2008		5,146		1.95	%
Sequoia 5 B3	BBB		10/29/01		2,316	1m LIBOR		2026		2008		2,316		1.95	%
Sequoia 6A	AAA		04/26/02		496,378	1m LIBOR		2027		2009		401,678		1.47	%
Sequoia 6B1	AA		04/26/02		5,915	1m LIBOR		2027		2009		5,915		1.85	%
Sequoia 7A	AAA		05/29/02		554,686	1m LIBOR		2032		2008		433,147		1.49	%
Sequoia 7B1	AA		05/29/02		8,080	1m LIBOR		2032		2008		8,080		1.90	%
Sequoia 8 1A-1	AAA		07/30/02		50,000	1m LIBOR		2032	Retired			—	NM
Sequoia 8 1A-2	AAA		07/30/02		61,468	Fixed to 12/04		2032		2008		32,416		3.46	%
Sequoia 8 2A	AAA		07/30/02		463,097	1m LIBOR		2032		2008		381,676		1.45	%
Sequoia 8 3A	AAA		07/30/02		49,973	6m LIBOR		2032		2008		37,955		2.95	%
Sequoia 8 B1	AA		07/30/02		9,069	1m LIBOR		2032		2008		9,069		1.82	%
Sequoia 9 1A	AAA		08/28/02		381,689	1m LIBOR		2032		2011		334,587		1.50	%
Sequoia 9 2A	AAA		08/28/02		168,875	1m LIBOR		2032		2011		119,924		2.74	%
Sequoia 9 B1	AA		08/28/02		7,702	1m LIBOR		2032		2011		7,702		1.90	%
Sequoia 10 1A	AAA		09/26/02		822,375	1m LIBOR		2027		2011		721,508		1.55	%
Sequoia 10 2A-1	AAA		09/26/02		190,000	1m LIBOR		2027		2011		166,991		1.53	%
Sequoia 10 2A-2	AAA		09/26/02		3,500	1m LIBOR		2027		2011		3,500		1.83	%
Sequoia 10 B1	AA		09/26/02		12,600	1m LIBOR		2027		2011		12,600		1.95	%
Sequoia 10 B2	A		09/26/02		8,400	1m LIBOR		2027		2011		8,400		1.95	%
Sequoia 10 B3	BBB		09/26/02		4,725	1m LIBOR		2027		2011		4,725		2.55	%
Sequoia 11 A	AAA		10/30/02		695,210	1m LIBOR		2032		2011		601,822		1.60	%
Sequoia 11 B1	AA		10/30/02		9,726	1m LIBOR		2032		2011		9,726		2.12	%
Sequoia 12 A	AAA		12/19/02		1,080,076	1m LIBOR		2033		2009		949,908		1.60	%
Sequoia 12 B1	AA		12/19/02		16,815	1m LIBOR		2033		2009		16,815		2.00	%
Sequoia 2003-1 A1	AAA		02/27/03		798,206	1m LIBOR		2033		2009		707,827		1.53	%
Sequoia 2003-1 A2	AAA		02/27/03		190,000	6m LIBOR		2033		2009		172,049		1.59	%
Sequoia 2003-1 B1	AA		02/27/03		15,905	1m LIBOR		2033		2009		15,905		2.03	%
Sequoia 2003-1 B2	A		02/27/03		8,210	Pass Through		2033		2009		8,210		2.57	%
Sequoia 2003-2 A1	AAA		04/29/03		500,000	1m LIBOR		2022		2009		460,107		1.48	%
Sequoia 2003-2 A2	AAA		04/29/03		303,600	6m LIBOR		2022		2009		276,173		1.55	%
Sequoia 2003-2 M1	AA		04/29/03		11,480	1m LIBOR		2016		2009		11,480		1.80	%
Sequoia 2003-3 A1	AAA		06/26/03		379,455	1m LIBOR		2023		2009		357,534		1.48	%
Sequoia 2003-3 A2	AAA		06/26/03		149,922	6m LIBOR		2023		2009		141,089		1.57	%
Sequoia 2003-3 B1	AA		06/26/03		9,075	1m LIBOR		2025		2009		9,075		1.80	%
MLCC 2003-C A1	AAA		06/26/03		773,795	1m LIBOR		2023		2012		719,867		1.47	%
MLCC 2003-C A2	AAA		06/26/03		200,002	6m LIBOR		2023		2012		189,248		1.58	%
MLCC 2003-C B1	AA		06/26/03		10,553	1m LIBOR		2025		2012		10,553		1.79	%
MLCC 2003-D A	AAA		07/29/03		992,833	1m LIBOR		2028		2012		953,041		1.45	%
MLCC 2003-D B1	AA		07/29/03		10,758	1m LIBOR		2028		2012		10,758		1.77	%
Sequoia 2003-4 1A1	AAA		07/29/03		148,641	1m LIBOR		2033		2009		143,776		1.46	%
Sequoia 2003-4 1A2	AAA		07/29/03		150,000	6m LIBOR		2033		2009		147,476		1.45	%
Sequoia 2003-4 1B1	AA		07/29/03		3,864	1m LIBOR		2033		2009		3,864		1.80	%
Sequoia 2003-4 2A1	AAA		07/29/03		189,415	1m LIBOR		2033		2011		182,606		1.50	%
Sequoia 2003-4 2M1	AA		07/29/03		9,986	1m LIBOR		2033		2011		9,986		1.62	%
Sequoia 2003-4 2B1	AA		07/29/03		2,367	1m LIBOR		2033		2011		2,367		1.80	%
Sequoia 2003-5 A1	AAA		08/27/03		675,596	1m LIBOR		2033		2009		648,832		1.46	%
Sequoia 2003-5 A2	AAA		08/27/03		149,609	6m LIBOR		2033		2009		145,943		1.53	%
Sequoia 2003-5 B1	AA		08/27/03		15,043	1m LIBOR		2033		2009		15,043		1.75	%
Sequoia 2003-6 A1	AAA		10/29/03		458,238	1m LIBOR		2033		2009		450,574		1.46	%
Sequoia 2003-6 A2	AAA		10/29/03		180,474	6m LIBOR		2033		2009		177,238		1.55	%
Sequoia 2003-6 B1	AA		10/29/03		11,287	1m LIBOR		2033		2009		11,287		1.73	%
Sequoia 2003-7 A1	AAA		11/25/03		290,000	1m LIBOR		2034		2009		288,307		1.47	%
Sequoia 2003-7 A2	AAA		11/25/03		505,100	6m LIBOR		2034		2009		502,553		1.57	%
Sequoia 2003-7 B1	AA		11/25/03		16,607	1m LIBOR		2034		2009		16,607		1.70	%
Sequoia 2003-8 A1	AAA		12/23/03		791,768	1m LIBOR		2034		2009		791,768		1.47	%
Sequoia 2003-8 A2	AAA		12/23/03		150,000	6m LIBOR		2034		2009		150,000		1.56	%
Sequoia 2003-8 B1	AA		12/23/03		14,166	1m LIBOR		2034		2009		14,166		1.73	%
Sequoia 2003-8 B2	A		12/23/03		8,304	1m LIBOR		2034		2009		8,304		2.40	%
MLCC 2003-E A1	AAA		08/28/03		823,305	1m LIBOR		2028		2012		798,414		1.45	%
MLCC 2003-E A2	AAA		08/28/03		150,000	6m LIBOR		2028		2012		142,516		1.54	%
MLCC 2003-E B1	AA		08/28/03		10,547	1m LIBOR		2028		2012		10,547		1.74	%
MLCC 2003-F A1	AAA		09/25/03		839,000	1m LIBOR		2028		2012		820,499		1.46	%
MLCC 2003-F A2	AAA		09/25/03		270,000	6m LIBOR		2028		2012		264,049		1.52	%
MLCC 2003-F A3	AAA		09/25/03		175,000	Pass Through		2028		2012		171,539		2.85	%
MLCC 2003-F B1	AA		09/25/03		13,913	1m LIBOR		2028		2012		13,913		1.74	%
MLCC 2003-H A1	AAA		12/22/03		365,708	1m LIBOR		2029		2012		365,708		1.47	%
MLCC 2003-H A2	AAA		12/22/03		240,000	6m LIBOR		2029		2012		240,000		1.56	%
MLCC 2003-H A3A	AAA		12/22/03		119,613	Pass Through		2029		2012		116,200		2.88	%
MLCC 2003-H B1	AA		12/22/03		7,875	1m LIBOR		2029		2012		7,875		1.70	%
MLCC 2003-H B2	A		12/22/03		6,000	1m LIBOR		2029		2012		6,000		2.40	%

Total Sequoia Issuance				$	19,208,805						$	15,742,733		1.56	%

Long-Term Debt Characteristics (continued)

Table 19
Long-Term Debt Characteristics – Residential Mortgage Loans
Sequoia Interest -Only Certificates Issued
($ in thousands)


											Principal		Interest
				Original					Estimated		Outstanding		Rate At
Sequoia Long-	Debt	Issue		Issue			Stated		Callable		At Dec. 31,		Dec. 31,
Term Debt Issue	Rating	Date		Amount		Index	Maturity		Date		2003		2003
MLCC 2003-C X-A-2	AAA		06/26/03		12,662	Fixed		2023		2007		6,304		4.50	%
MLCC 2003-D X-A-1	AAA		07/29/03		22,371	Fixed		2028		2007		13,436		4.50	%
MLCC 2003-E X-A-1	AAA		08/28/03		16,550	Fixed		2028		2007		13,820		4.25	%
MLCC 2003-F X-A-1	AAA		09/25/03		18,666	Fixed		2028		2007		16,276		4.50	%
Sequoia 2003-6 X-1	AAA		10/29/03		8,220	Fixed		2033		2007		7,472		4.50	%
SMFC 2003A AX1	AAA		10/31/03		70,568	Fixed		2008		2007		63,365		4.50	%
Sequoia 2003-7 X-1	AAA		11/25/03		10,345	Fixed		2034		2007		9,868		4.25	%
Sequoia 2003-8 X-1	AAA		12/23/03		12,256	Fixed		2034		2007		12,256		4.50	%
MLCC 2003-H X-A-1	AAA		12/22/03		10,430	Fixed		2029		2007		10,430		4.25	%

Total Sequoia Issuance				$	182,068						$	153,227		4.45	%

Table 20
Long-Term Debt Characteristics – Commercial Real Estate Loans
($ in thousands)

Principal

Interest

Commercial

Original

Estimated

Outstanding

Rate At

Long Term Debt

Debt

Issue

Stated

Callable

At Dec. 31,

Dec. 31,

Issue

Rating

Date

Amount

Index

Maturity

Date

2003

Commercial 1

03/30/01

9,010

1m LIBOR

2002

Paid Off

—

Commercial 2

03/30/01

8,320

1m LIBOR

2003

Paid Off

—

Commercial 3

03/01/02

8,318

1m LIBOR

2003

Paid Off

—

Commercial 4

08/18/03

5,595

1m LIBOR

2009

5,571

9.50

Total Commercial Issuance

31,243

5,571

9.50

Table 21
Long-Term Debt Characteristics
Collateralized Debt Obligations and Other Resecuritizations – Acacia and SMFC
($ in thousands)


											Principal		Interest
				Original					Estimated		Outstanding		Rate At
Resecuritization	Debt	Issue		Issue			Stated		Callable		At Dec. 31,		Dec. 31,
Issuance	Rating	Date		Amount		Index	Maturity		Date		2003		2003
SMFC 2002A A1	AAA		04/30/02		64,761	1m LIBOR		2030		2006	$	23,261		1.73	%
SMFC 2002A A2	AAA		04/30/02		15,861	1m LIBOR		2029		2006		9,688		1.88	%
Acacia CDO 1 A	AAA		12/10/02		224,250	3m LIBOR		2018		2010		219,055		1.76	%
Acacia CDO 1 B	AA		12/10/02		45,000	3m LIBOR		2037		2010		45,000		2.48	%
Acacia CDO 1 C	BBB		12/10/02		15,750	3m LIBOR		2037		2010		15,750		3.88	%
SMFC 2002B I A1	AA		12/19/02		16,855	Fixed		2031		2004		4,121		5.43	%
SMFC 2002B I A2	A		12/19/02		18,274	Fixed		2031		2004		4,467		5.68	%
SMFC 2002B I A3	BBB		12/19/02		17,221	Fixed		2031		2004		4,210		6.38	%
SMFC 2002B I A4	BB		12/19/02		25,133	Fixed		2031		2004		6,144		6.75	%
SMFC 2002B II A1	AA		12/19/02		15,517	Fixed		2039		2004		3,508		4.82	%
SMFC 2002B II A2	A		12/19/02		18,345	Fixed		2039		2004		4,147		4.92	%
SMFC 2002B II A3	BBB		12/19/02		14,989	Fixed		2039		2004		3,388		5.35	%
SMFC 2002B II A4	BB		12/19/02		8,347	Fixed		2039		2004		1,887		6.00	%
Acacia CDO 2 A	AAA		05/13/03		222,000	3m LIBOR		2023		2011		221,544		1.83	%
Acacia CDO 2 B	AA		05/13/03		45,375	3m LIBOR		2038		2011		45,375		2.48	%
Acacia CDO 2 C	BBB		05/13/03		16,500	3m LIBOR		2038		2011		16,500		4.43	%
Acacia CDO 3 A	AAA		11/04/03		222,000	3m LIBOR		2038		2011		222,000		1.77	%
Acacia CDO 3 B	AA		11/04/03		45,750	3m LIBOR		2038		2011		45,750		2.39	%
Acacia CDO 3 C	BBB		11/04/03		16,500	3m LIBOR		2038		2011		16,500		4.59	%

Total Resecuritizations				$	1,068,428						$	912,295		2.16	%

Table 24
Differences Between GAAP Income and Estimated Taxable Income
( $ in Thousands, Except Share Data)


									Net
									Amortization
						Unamortized			(Expense)
	Unamortized		Unamortized			Net			Income
	Gross		Gross			Premium/			During
	Premium		Discount			(Discount)			Period

Q1: 2002	$	23,036		($32,053	)		($9,017	)		($3,201	)
Q2: 2002		31,155		(40,301	)		(9,146	)		(793	)
Q3: 2002		57,951		(58,397	)		(446	)		(2,148	)
Q4: 2002		60,478		(70,140	)		(9,662	)		(3,083	)
2002		60,478		(70,140	)		(9,662	)		(3,083	)
Q1: 2003		62,812		(96,131	)		(33,319	)		(2,098	)
Q2: 2003		95,644		(139,297	)		(43,653	)		3,269
Q3: 2003		176,644		(239,139	)		(62,495	)		1,736
Q4: 2003		213,506		(314,139	)		(100,633	)		11,968
2003		213,506		(314,139	)		(100,633	)		14,875


	For the First			For the Second			For the Third			For the Fourth			For the			For the
	Quarter Ended			Quarter Ended			Quarter Ended			Quarter Ended			Year Ended			Year Ended
	3/31/2003			6/30/2003			9/30/2003			12/31/2003			12/31/2003			12/31/2002

	$	14,932		$	22,212		$	24,636		$	69,933		$	131,713		$	53,893
GAAP Income		8,852			5,320			10,610			14,487			39,269			19,998
Amortization and credit expenses		2,826			4,468			2,223			(3,539	)		5,978			5,723
Operating expenses		862			—			—			341			1,203			959
Provision for excise tax		(1,267	)		2,474			(1,102	)		(7,231	)		(7,126	)		(3,280	)

Mark-to-market expenses
Estimated REIT taxable income	$	26,205		$	34,474		$	36,367		$	73,991		$	171,037		$	77,293

(Earnings) losses from taxable subsidiaries		(545	)		(1,952	)		(2,484	)		(2,672	)		(7,653	)		37

Estimated REIT Taxable Income	$	25,660		$	32,522		$	33,883		$	71,319		$	163,384		$	77,330

Common Shares Outstanding at Period End		16,604,910			17,820,856			18,468,138			19,062,983			—			—
Total Taxable Income Per Share	$	1.58		$	1.93		$	1.97		$	3.88		$	9.36		$	4.92
REIT Taxable Income Per Share	$	1.55		$	1.82		$	1.83		$	3.74		$	8.94		$	4.92


																							Efficiency
														Fixed and			Fixed and						Ratio:
			Less:											Variable			Variable			Fixed			Fixed and
			Variable					Total				Variable		Operating			Operating			Operating			Variable
			Stock					Fixed and				(Performance		Expenses/			Expenses/			Expenses/			Operating
	Total		Option					Variable		Fixed		Based)		Average			Average			Average			Expenses/
	Operating		Valuation			Less:		Operating		Operating		Operating		GAAP			Core			Core			Net Interest
	Expenses		Adjustments			Excise Tax		Expenses		Expenses		Expenses		Equity			Equity			Equity			Income

Q1: 2002	$	4,089	$	543		$	0	$	3,546	$	1,758	$	1,788		4.2	%		4.3	%		2.1	%		23	%
Q2: 2002		5,325		789			—		4,536		2,081		2,455		4.7	%		4.9	%		2.2	%		26	%
Q3: 2002		3,545		(745	)		—		4,290		2,101		2,189		4.0	%		4.5	%		2.2	%		24	%
Q4: 2002		7,046		78			959		6,009		2,230		3,779		5.3	%		6.0	%		2.2	%		29	%
2002		20,005		665			959		18,381		8,170		10,211		4.6	%		4.9	%		2.2	%		26	%
Q1: 2003		8,282		948			862		6,472		2,663		3,809		5.3	%		6.2	%		2.6	%		27	%
Q2: 2003		8,793		1,490			—		7,303		2,645		4,658		5.8	%		6.8	%		2.5	%		25	%
Q3: 2003		9,098		513			—		8,585		3,941		4,644		6.2	%		7.5	%		3.4	%		25	%
Q4: 2003		10,722		2,701			341		7,680		3,717		3,963		5.5	%		6.5	%		3.2	%		19	%
2003		36,895		5,652			1,203		30,040		12,966		17,074		5.7	%		6.8	%		2.9	%		23	%