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This supplemental information package is designed to provide investors with information regarding Redwood Trust that is more detailed than can be found in our quarterly press release or SEC disclosures. If you have suggestions about how we could improve this supplemental financial information package, please call Nicole Klock at 415-380-2321 or email her at [email protected].

NON-GAAP MEASURES

A number of non-GAAP measures are presented in this supplemental information package, including Core Earnings, Core Equity, Core Return on Core Equity, and others. Non-GAAP measures are reconciled to our reported GAAP financials. Information is also provided on taxable income, which is our income as calculated for tax purposes.

GAAP attempts to present economic activity using a common format with a common set of rules for all companies. For this reason, GAAP is an important tool for investors. Each company, however, is different, and there are other measures of economic activity – ones that are more tailored to the individual circumstances of each business – that can also be useful for investors. In this supplement, we try to present a wide variety of information that might be useful to investors.

CORE EARNINGS

Core earnings are not a measure of earnings in accordance with GAAP. We attempt to strip some of the elements out of GAAP earnings that are temporary, one-time, or non-economic in nature or that relate to the past rather than the future, so that the underlying on-going “core” trend of earnings is more clear, at least in certain respects. We also exclude realized gains (and losses) from asset sales and calls. We sell assets from time to time as part of our on-going portfolio management activities. These occasional sales can produce material gains and losses that could obscure the underlying trend of our long-term portfolio earnings, so we exclude them from core earnings. Similarly, we exclude gains from calls of residential credit-enhancement securities, as these are essentially sales of assets that produce a highly variable stream of income that may obscure some underlying income generation trends. GAAP earnings include mark-to-market income and expenses for certain of our assets and interest rate agreements. These are unrealized market value fluctuations – we exclude them from core earnings. Similarly, we have issued certain stock options that are “variable” and thus are marked-to-market for GAAP purposes. When our stock price goes up, it is a GAAP expense. When our stock price goes down, GAAP income is created. We exclude all this from core earnings. Management believes that core earnings provide relevant and useful information regarding results from operations in addition to GAAP measures of performance. This is, in part, because market valuation adjustments on only a portion of the company’s assets and stock options and none of its liabilities are recognized through the income statement under GAAP and thus GAAP valuation adjustments may not be fully indicative of changes in market values on the balance sheet as a whole or a reliable guide to 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 on going 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 the company may not be comparable to similarly titled measures reported by other companies.

CORE EQUITY

Core equity is not a measure calculated in accordance with GAAP. A reconciliation of core equity to GAAP equity appears in the table presenting balance sheet data. GAAP equity includes mark-to-market adjustments for certain of our assets and interest rate agreements. This can be useful as a measure that approximates liquidation value (at least for those assets), but for other purposes GAAP equity is less useful, we believe. For instance, return on equity calculated using GAAP equity does not make much sense to us. When our assets that are marked-to-market through our balance sheet equity account appreciate (which is a good thing), our GAAP return on equity goes down because our equity base is larger but these particular mark-to-market gains are not recognized in GAAP income. Core equity GAAP equity with mark-to-market gains and losses (“accumulated other comprehensive income”) excluded. It is, we believe, a good measure of the amount of capital we have to run our business.

CORE RETURN ON CORE EQUITY

Core return on core equity, or core ROE, is core earnings divided by core equity. This is return on equity with mark-to-market gains and losses and one-time events stripped out.

ADJUSTED CORE EQUITY

We have minimum dividend distribution requirements as a REIT. We thus have future payment obligations, but these are not recognized in GAAP accounting until dividends are declared. Cash that we have earned but that we must pay out as dividends is not cash that will be available to us to acquire long-term assets and build our business. So when we try to answer questions such as “how much equity per share do we have available to build our business and to generate dividends in the long-term?” we use adjusted core equity per share. Adjusted core equity is core equity less undistributed REIT taxable income that is still undeclared but that will need to be paid out.

TAXABLE INCOME

Taxable income is the pre-tax income we earn calculated using calculation methods appropriate for tax purposes. Taxable income calculations differ significantly from GAAP. REIT taxable income is that portion of our taxable income that is subject to REIT tax rules. We must distribute at least 90% of this income as dividends to shareholders over time. As a REIT we are not subject to corporate income taxes on the REIT taxable income we distribute. The remainder of our taxable income (the non-REIT taxable income) is income we earn in taxable subsidiaries. We pay income tax on this income and we generally retain the after-tax income at the subsidiary level.

CORE REIT TAXABLE INCOME

Core REIT taxable income is defined by Redwood management. Core REIT taxable income is the pre-tax income we earn at the REIT before taxable income from gains on asset sales and calls and other non-recurring expenses such as deductions for stock option exercises.

REDWOOD EARNING ASSETS

Redwood’s real earning assets in an economic sense (real assets that are sitting in our custodial account) totaled approximately $1.3 billion at the end of the second quarter of 2005. Included in this amount are securities we have acquired from securitizations we have sponsored with a cost basis of approximately $219 million. All of the $21 billion of assets and asset-backed securities liabilities of the securitization entities we have sponsored are shown on our consolidated GAAP balance sheet, even though we do not own these assets and we are not responsible for the payment of these liabilities. For some analytical tasks (such as determining how much financial leverage Redwood carries on its balance sheet) we believe it makes more sense to consider the assets Redwood actually owns and the debt Redwood actually owes rather than including all GAAP assets and liabilities consolidated from securitization entities that are independent of Redwood.

REDWOOD DEBT

Redwood’s real economic debt — the money we have to pay back to a lender — was $453 million at the end of the second quarter of 2005. Our GAAP balance sheet shows liabilities of $21 billion because all of the assets and liabilities of the independent securitization entities we have sponsored are consolidated.

LEVERAGE RATIOS

Because of the consolidation of independent securitization entities, it appears from our GAAP financial statements that Redwood is highly leveraged, with liabilities greater than twenty-two times equity. In fact, Redwood has $453 million of true debt and $992 million of GAAP equity supporting $1.3 billion of earning assets and $1.4 billion of total assets (as of June 30, 2005). We only use debt to finance on a temporary basis the accumulation of assets prior to sale to a securitization entity. Our permanent asset portfolio, the assets we have acquired or created to own on a long-term basis, is financed entirely with equity capital.

PROFITABILITY RATIOS

Many financial institution analysts use asset-based profitability ratios such as interest rate spread and interest rate margin in their work analyzing financial institutions. Because of our consolidation of securitization entities for GAAP, we believe equity-based profitability ratios are more appropriate for Redwood. Net interest income as a percentage of equity is a useful measure, we believe. For operating expenses, we believe a useful measure is the efficiency ratio, or operating expenses as a percentage of net interest income.

Table 1: GAAP Earnings (all $ in thousands, except per share data)

Table 1
GAAP Earnings
(all $ in thousands, except per share data)


																			Six			Six
																			Months			Months
	Q2:2005			Q1:2005			Q4:2004			Q3:2004			Q2:2004			Q1:2004			Q2:2005			Q2:2004
Interest income (Redwood and consolidated trusts)	$	248,669		$	236,957		$	204,834		$	171,804		$	144,865		$	130,158		$	485,626		$	275,023
Discount amortization income		8,156			9,201			9,146			9,012			9,077			8,836			17,357			17,913
Premium amortization expense		(9,964	)		(7,967	)		(7,105	)		802			(14,463	)		(11,646	)		(17,931	)		(26,109	)
Provision for credit losses		1,527			(1,025	)		(1,697	)		(1,528	)		(1,500	)		(2,511	)		502			(4,011	)

Total GAAP Interest Income		248,388			237,166			205,178			180,090			137,979			124,837			485,554			262,816

Interest expense on Redwood Trust’s debt		(1,825	)		(2,728	)		(2,560	)		(2,312	)		(2,490	)		(2,571	)		(4,553	)		(5,061	)

ABS expenses consolidated from trusts		(191,985	)		(173,182	)		(143,078	)		(108,237	)		(78,809	)		(69,069	)		(365,167	)		(147,878	)
ABS issuance expense amortization		(5,386	)		(5,273	)		(4,783	)		(4,197	)		(4,305	)		(3,543	)		(10,659	)		(7,848	)
ABS interest agreement expense		876			1,469			606			(2,888	)		(5,988	)		(4,965	)		2,345			(10,953	)
ABS issuance premium amortization income		3,140			3,747			2,644			2,823			1,233			571			6,887			1,804

Total consolidated ABS expense		(193,355	)		(173,239	)		(144,611	)		(112,499	)		(87,869	)		(77,006	)		(366,594	)		(164,875	)

GAAP net interest income		53,208			61,199			58,007			65,279			47,620			45,260			114,407			92,880

Fixed compensation expense		(2,623	)		(2,778	)		(2,009	)		(1,959	)		(1,842	)		(2,230	)		(5,401	)		(4,072	)
Variable compensation expense		(4,824	)		(4,279	)		(2,908	)		(3,443	)		(4,722	)		(4,022	)		(9,103	)		(8,744	)
Fair value of stock options granted		(348	)		(370	)		(299	)		(133	)		(547	)		(310	)		(718	)		(857	)
Other operating expense		(3,179	)		(3,322	)		(2,565	)		(2,512	)		(1,781	)		(1,735	)		(6,501	)		(3,516	)

Operating expenses		(10,974	)		(10,749	)		(7,781	)		(8,047	)		(8,892	)		(8,297	)		(21,723	)		(17,189	)

Excise taxes		(308	)		(307	)		165			(301	)		(190	)		(300	)		(615	)		(490	)
Variable stock option market value change		(2	)		84			3			(213	)		621			(1,429	)		82			(808	)

Total GAAP operating expenses		(11,284	)		(10,972	)		(7,613	)		(8,561	)		(8,461	)		(10,026	)		(22,256	)		(18,487	)

Realized gains on calls of residential CES		4,421			7,548			11,205			20,472			15,246			11,816			11,969			27,062
Realized gains on asset sales		516			8,347			—			489			971			6,255			8,863			7,226
Loss on repurchase of ABS issued		—			—			—			—			—			—			—			—
Valuation write-downs for EITF 99-20		(1,710	)		(391	)		(1,573	)		(422	)		(3,846	)		(558	)		(2,101	)		(4,404	)
Interest rate agreements valuation adjustments		(182	)		(492	)		(411	)		47			(113	)		(1	)		(674	)		(114	)
Valuation adjustments on real estate loans		—			—			(375	)		—			—			(75	)		—			(75	)

Net gains and valuation adjustments		3,045			15,012			8,846			20,586			12,258			17,437			18,057			29,695

Dividends on and earnings allocated to preferred stock		—			—			—			—			—			—			—			—
Deferred tax benefit (one time Q2:2004)		—			—			—			—			5,180			—			—			5,180
Provision for income taxes		(4,054	)		(4,677	)		(4,826	)		(4,962	)		(1,509	)		(1,880	)		(8,731	)		(3,389	)

GAAP Net Income	$	40,915		$	60,562		$	54,414		$	72,342		$	55,088		$	50,791		$	101,477		$	105,879


Diluted shares for GAAP (000)		25,196			25,021			24,491			22,728			21,325			20,399			25,109			20,856
GAAP earnings per share	$	1.62		$	2.42		$	2.22		$	3.18		$	2.58		$	2.49		$	4.04		$	5.08

Table 2: Core Earnings (all $ in thousands, except per share data)

Table 2
Core Earnings
(all $ in thousands, except per share data)


																			Six			Six
																			Months			Months
	Q2:2005			Q1:2005			Q4:2004			Q3:2004			Q2:2004			Q1:2004			Q2:2005			Q2:2004
GAAP income items not included in CORE
Variable stock option market value change	($	2	)	$	84		$	3		($	213	)	$	621		($	1,429	)	$	82		($	808	)

Realized gains on calls of residential CES		4,421			7,548			11,205			20,472			15,246			11,816			11,969			27,062
Realized gains on asset sales		516			8,347			—			489			971			6,255			8,863			7,226
Loss on repurchase of ABS issued		—			—			—			—			—			—			—			—
Valuation write-downs for EITF 99-20		(1,710	)		(391	)		(1,573	)		(422	)		(3,846	)		(558	)		(2,101	)		(4,404	)
Interest rate agreements valuation adjustments		(182	)		(492	)		(411	)		47			(113	)		(1	)		(674	)		(114	)
Commercial real estate valuation adjustments		—			—			(375	)		—			—			(75	)		—			(75	)

Net gains and valuation adjustments		3,045			15,012			8,846			20,586			12,258			17,437			18,057			29,695

Deferred tax benefit (one time Q2:2004)					—			—			—			5,180			—			—			5,180

Total GAAP / CORE differences		3,043			15,096			8,849			20,373			18,059			16,008			18,139			34,067

Core earnings		37,872			45,466			45,565			51,969			37,029			34,783			83,338			71,812
GAAP / CORE differences		3,043			15,096			8,849			20,373			18,059			16,008			18,139			34,067

GAAP Net Income	$	40,915		$	60,562		$	54,414		$	72,342		$	55,088		$	50,791		$	101,477		$	105,879


Per Share Analysis
Variable stock option market value change	($	0.00	)	$	0.00		$	0.00		($	0.01	)	$	0.03		($	0.07	)	$	0.00		($	0.04	)
Realized gains on calls of residential CES		0.18			0.30			0.46			0.90			0.71			0.58			0.48			1.31
Realized gains on asset sales		0.02			0.33			0.00			0.02			0.05			0.30			0.35			0.35
Loss on repurchase of ABS issued		0.00			0.00			0.00			0.00			0.00			0.00			0.00			0.00
Valuation write-downs for EITF 99-20		(0.07	)		(0.02	)		(0.06	)		(0.02	)		(0.18	)		(0.03	)		(0.09	)		(0.21	)
Interest rate agreements valuation adjustments		(0.01	)		(0.01	)		(0.02	)		0.00			0.00			(0.00	)		(0.02	)		(0.01	)
Commercial real estate valuation adjustements		0.00			0.00			(0.02	)		0.00			(0.01	)		0.00			0.00			(0.01	)
Deferred tax benefit (one time Q2:2004)		0.00			0.00			0.00			0.00			0.24			0.00			0.00			0.25

GAAP / CORE differences per share		0.12			0.60			0.36			0.89			0.84			0.78			0.72			1.64

CORE earnings per share		1.50			1.82			1.86			2.29			1.74			1.71			3.32			3.44
GAAP / CORE differences per share		0.12			0.60			0.36			0.89			0.84			0.78			0.72			1.64

GAAP earnings per share	$	1.62		$	2.42		$	2.22		$	3.18		$	2.58		$	2.49		$	4.04		$	5.08

Diluted shares outstanding (000)		25,196			25,021			24,491			22,728			21,325			20,399			25,109			20,856

Table 3: GAAP / TAX Differences (all $ in thousands, except per share data)

Table 3
GAAP/TAX Differences
(all $ in thousands, except per share data)


																									Estimated			Estimated
																									Six			Six
	Estimated			Estimated			Estimated			Estimated			Estimated			Estimated			Estimated			Actual			Months			Months
	Q2:2005			Q1:2005			Q4:2004			Q3:2004			Q2:2004			Q1:2004			2004			2003			Q2:2005			Q2:2004
GAAP net income	$	40,915		$	60,562		$	54,414		$	72,342		$	55,088		$	50,791		$	232,635		$	131,698		$	101,477		$	105,879
Interest income and expense differences		(4,868	)		(20,091	)		(6,209	)		(23,527	)		5,208			(1,150	)		(25,678	)		22,324			(24,959	)		4,058
Provision for credit losses — GAAP		(1,527	)		1,025			1,697			1,528			1,500			2,511			7,236			8,646			(502	)		4,011
Tax deductions for realized credit losses		(737	)		(438	)		(247	)		(127	)		(506	)		(4	)		(884	)		(825	)		(1,175	)		(510	)
Long-term compensation differences		2,138			1,969			(2,506	)		402			2,428			2,904			3,228			7,522			4,107			5,332
Stock option exercise deduction differences		(143	)		(477	)		(3,094	)		(745	)		(109	)		(12,073	)		(16,021	)		(2,483	)		(620	)		(12,182	)
Depreciation of fixed asset differences		166			151			(169	)		(589	)		46			(6	)		(718	)		(686	)		317			40
Other operating expense differences		(31	)		69			(2,165	)		(34	)		5			(16	)		(2,210	)		885			38			(11	)
Sale of assets to third parties differences		(2,476	)		(967	)		1,859			(576	)		(536	)		(566	)		181			(69	)		(3,443	)		(1,102	)
Call income of residential CES differences		120			(2,324	)		(2,873	)		(3,961	)		(2,157	)		(1,899	)		(10,890	)		(8,402	)		(2,204	)		(4,056	)
Tax gain on securitizations		808			2,558			10,139			11,153			10,303			—			31,595			—			3,366			10,303
Tax gain on intercompany sales and transfers		2,371			3,260			3,074			28			(71	)		7,546			10,577			2,823			5,631			7,475
GAAP market valuation write downs (EITF 99-20)		820			391			1,572			422			3,846			558			6,398			7,646			1,211			4,404
Interest rate agreements differences		53			202			(723	)		(278	)		502			50			(449	)		(229	)		255			552
Provision for excise tax — GAAP		308			307			(165	)		301			190			300			626			1,203			615			490
Provision for income tax differences		3,035			134			4,827			2,834			(3,672	)		1,881			5,870			5,502			3,169			(1,791	)
Preferred dividend — GAAP		—			—			—			—			—			—			—			696			—			—


Total taxable income (pre-tax)		40,952			46,331			59,431			59,173			72,065			50,827			241,496			176,251			87,283			122,892

Earnings from taxable subsidiaries		(1,715	)		(1,170	)		(9,045	)		(10,143	)		(11,721	)		(8,337	)		(39,246	)		(7,861	)		(2,885	)		(20,058	)


REIT taxable income (pre-tax)	$	39,237		$	45,161		$	50,386		$	49,030		$	60,344		$	42,490			202,250		$	168,390		$	84,398		$	102,834


Common shares outstanding at period end (000)		24,647			24,514			24,154			23,346			21,511			19,796			24,154			19,063			24,647			21,511
Total taxable income per share	$	1.66		$	1.89		$	2.46		$	2.53		$	3.35		$	2.57		$	10.91		$	9.64		$	3.55		$	5.92
REIT taxable income per share	$	1.59		$	1.84		$	2.09		$	2.10		$	2.81		$	2.15		$	9.15		$	9.21		$	3.43		$	4.96

Table 4: Taxable Income Estimates (all $ in thousands, except per share data)

Table 4
Taxable Income Estimates
(all $ in thousands, except per share data)


																									Estimated			Estimated
																									Six			Six
	Estimated			Estimated			Estimated			Estimated			Estimated			Estimated			Estimated			Actual			Months			Months
	Q2:2005			Q1:2005			Q4:2004			Q3:2004			Q2:2004			Q1:2004			2004			2003			Q2:2005			Q2:2004
Taxable income in taxable subs (pre-tax)	$	1,715		$	1,170		$	9,045		$	10,143		$	11,721		$	8,337		$	39,246		$	7,861		$	2,885		$	20,058
REIT taxable income (pre-tax)		39,237			45,161			50,386			49,030			60,344			42,490			202,250			168,390			84,398			102,834

Total taxable income (pre-tax)	$	40,952		$	46,331		$	59,431		$	59,173		$	72,065		$	50,827		$	241,496		$	176,251		$	87,283		$	122,892

Income in taxable subs (pre-tax)	$	1,715		$	1,170		$	9,045		$	10,143		$	11,721		$	8,337		$	39,246		$	7,861		$	2,885		$	20,058
Income tax for taxable subs (actual tax due)		(870	)		(830	)		(3,571	)		(4,574	)		(1,600	)		(1,150	)		(10,895	)		(873	)		(1,700	)		(2,750	)

After-tax income in taxable subs	$	845		$	340		$	5,474		$	5,569		$	10,121		$	7,187		$	28,351		$	6,988		$	1,185		$	17,308

Core REIT taxable income		36,198			30,741			43,133			34,080			47,037			39,055			163,305			122,622			66,939			86,092
Other ordinary REIT taxable income (expense)		3,166			(565	)		(3,118	)		(553	)		(106	)		(11,420	)		(16,021	)		423			2,601			(11,526	)

Ordinary REIT taxable income		39,364			30,176			40,015			33,527			46,931			27,635			147,284			123,045			69,540			74,566
Net long-term capital gain REIT taxable income		(127	)		14,985			10,371			15,503			13,413			14,855			54,142			45,345			14,858			28,268

REIT taxable income (pre-tax)	$	39,237		$	45,161		$	50,386		$	49,030		$	60,344		$	42,490		$	202,250		$	168,390		$	84,398		$	102,834

REIT taxable income (pre-tax)	$	39,237		$	45,161		$	50,386		$	49,030		$	60,344		$	42,490		$	202,250		$	168,390			84,398		$	102,834
Excise taxes due to deferrals		(308	)		(307	)		165			(301	)		(190	)		(300	)		(626	)		(1,305	)		(615	)		($490	)
Income taxes due to earnings retention (actual tax due)		(1,830	)		(1,450	)		(2,722	)		(1,537	)		(2,151	)		(1,267	)		(7,677	)		(5,619	)		(3,280	)		($3,418	)

REIT taxable income available for distribution	$	37,099		$	43,404		$	47,829		$	47,192		$	58,003		$	40,923		$	193,947		$	161,466			80,503			98,926

After-tax income in taxable subs	$	845		$	340		$	5,474		$	5,569		$	10,121		$	7,187		$	28,351		$	6,988			1,185		$	17,308
REIT taxable income available for distribution		37,099			43,404			47,829			47,192			58,003			40,923			193,947			161,466			80,503		$	98,926

Total taxable income (after-tax)	$	37,944		$	43,744		$	53,303		$	52,761		$	68,124		$	48,110		$	222,298		$	168,454			81,688		$	116,234

Regular dividend per share	$	0.70		$	0.70		$	0.67		$	0.67		$	0.67		$	0.67		$	2.68		$	3.36		$	1.40		$	1.34
Special dividend per share		—			—			5.50			—			—			0.50			6.00			4.75			—			0.50

Total dividends per share	$	0.70		$	0.70		$	6.17		$	0.67		$	0.67		$	1.17		$	8.68		$	8.11		$	1.40		$	1.84

Shares at period end (000)		24,647			24,514			24,154			23,346			21,511			19,796			24,154			19,063			24,647			21510.6

Dividends declared	$	17,253		$	17,160		$	146,707		$	15,642		$	14,412		$	23,162		$	199,923		$	137,436			34,413		$	37,574
Dividend deduction on stock issued through DRIP		112			56			1,048			844			712			655			3,259			1,161			168		$	1,367

Total dividend deductions	$	17,365		$	17,216		$	147,755		$	16,486		$	15,124		$	23,817		$	203,182		$	138,597			34,581		$	38,941

Taxable income (after-tax) retained in tax subs	$	845		$	340		$	5,474		$	5,569		$	10,121		$	7,187		$	28,351		$	6,988			1,185		$	17,308
REIT retained taxable income (after-tax) (2)		1,798			1,260			1,445			1,515			2,352			1,197			6,509			5,381			3,058		$	3,549

Total retained taxable earnings (after-tax)	$	2,643		$	1,600		$	6,919		$	7,084		$	12,473		$	8,384		$	34,860		$	12,369			4,243		$	20,857

Per share outstanding at quarter end
Core REIT taxable income (pre-tax)	$	1.47		$	1.25		$	1.79		$	1.46		$	2.19		$	1.97		$	7.41		$	6.79		$	2.72		$	4.16
REIT taxable income (pre-tax)		1.59			1.84			2.09			2.10			2.81			2.15			9.15			9.21			3.43			4.96
Total taxable income (pre-tax)		1.66			1.89			2.46			2.53			3.35			2.57			10.91			9.64			3.55			5.92
Total retained taxable earnings (after-tax)		0.11			0.07			0.29			0.30			0.58			0.42			1.59			0.65			0.17			1.00

The estimated taxable income amounts and the associated income tax provision numbers are based on taxable income for each of the four quarters of 2004. The twelve month tax provision amounts are consistent with the current provision per the twelve month GAAP financials.

(2) REIT retained taxable income equals 10% of ordinary REIT taxable income less income and excise taxes.

Table 5: Retention and Distribution of Taxable Income (all $ in thousands, except per share data)

Table 5
Retention and Distribution of Taxable Income
(all $ in thousands, except per share data)


	Estimated			Estimated			Estimated			Estimated			Estimated			Estimated			Estimated			Actual
	6/30/2005			3/31/2005			12/31/2004			9/30/2004			6/30/2004			3/31/2004			2004			2003
Undistributed REIT taxable income (pre-tax): begin	$	62,538		$	37,611		$	138,981		$	109,790		$	69,263		$	53,354		$	53,354		$	35,865
REIT taxable income (pre-tax)		39,364			45,161			50,386			49,030			60,344			42,490			202,250			168,390
Permanently retained (pre-tax)		(3,924	)		(3,018	)		(4,002	)		(3,353	)		(4,693	)		(2,764	)		(14,811	)		(12,305	)
Dividend of 2002 income		—			—			—			—			—			—			—			(35,865	)
Dividend of 2003 income		—			—			—			(14,413	)		(15,124	)		(23,817	)		(53,354	)		(102,732	)
Dividend of 2004 income		(17,365	)		(17,216	)		(147,755	)		(2,073	)		—			—			(149,828	)		—

Undistributed REIT taxable income (pre-tax): end	$	80,613		$	62,538		$	37,611		$	138,981		$	109,790		$	69,263		$	37,611		$	53,354

Shares outstanding at period end		24,647			24,514			24,154			23,346			21,511			19,796			24,154			19,063
Undistributed REIT taxable income (pre-tax) per share outstanding	$	3.27		$	2.55		$	1.56		$	5.95		$	5.10		$	3.50		$	1.56		$	2.80

Undistributed REIT taxable income (pre-tax)
From 2003’s income								—			—			14,413			29,537			—			53,354
From 2004’s income		3,030			20,395			37,611			138,982			95,377			39,727			37,611			—
From 2005’s income		77,583			42,143			—			—			—			—			—			—

Total	$	80,613		$	62,538		$	37,611		$	138,982		$	109,790		$	69,263		$	37,611		$	53,354

Table 6: Assets (all $ in millions)

Table 6
Assets
(all $ in millions)


	Q2:2005			Q1:2005			Q4:2004			Q3:2004			Q2:2004			Q1:2004			Q4:2003			Q3:2003
Residential loans owned by Redwood	$	300		$	256		$	193		$	259		$	161		$	97		$	43		$	406
Residential loans consolidated from entities		19,083			21,237			22,015			21,299			19,755			17,989			16,196			13,407

Total GAAP residential loans		19,383			21,493			22,208			21,558			19,916			18,086			16,239			13,813

HELOC loans owned by Redwood		—			—			—			—			—			—			—			—
HELOC loans consolidated from entities		247			279			296			317			327			—			—			—

Total GAAP HELOC loans		247			279			296			317			327			—			—			—

Commercial loans owned by Redwood		16			22			32			21			25			14			14			15
Commercial loans consolidated from entities		26			35			22			12			8			8			9			9

Total GAAP commercial loans		42			57			54			33			33			22			23			24

Residential CES owned by Redwood		469			373			351			327			312			256			251			204
Residential CES consolidated from entities		237			238			211			170			131			119			128			169

Total GAAP residential CES		706			611			562			497			443			375			379			373

Other securities owned by Redwood		237			99			129			170			215			239			167			125
Other securities consolidated from entities		1,441			1,435			1,266			1,069			881			698			678			480

Total GAAP other securities		1,678			1,534			1,395			1,239			1,096			937			845			605

Cash owned by Redwood		72			65			57			76			38			58			58			32
Restricted cash consolidated from entities		48			58			36			45			20			14			22			14
Accrued interest receivable		85			82			72			62			49			44			40			33
Principal receivable		—			—			3			1			12			—			13			2
Interest rate agreements		13			29			16			10			17			1			2			—
Deferred tax asset		7			8			11			9			5			—			—			—
Deferred asset-backed security issuance costs		59			63			61			58			53			47			44			36
Other assets		6			6			7			7			7			6			5			5

Total GAAP assets	$	22,346		$	24,285		$	24,778		$	23,912		$	22,016		$	19,590		$	17,670		$	14,937


Residential loans owned by Redwood	$	300		$	256		$	193		$	259		$	161		$	97		$	43		$	406
HELOC loans owned by Redwood		—			—			—			—			—			—			—			—
Commercial loans owned by Redwood		16			22			32			21			25			14			14			15
Residential CES owned by Redwood		469			373			351			327			312			256			251			204
Other securities owned by Redwood		237			99			129			170			215			239			167			125
Cash owned by Redwood		72			65			57			76			38			58			58			32
Assets of securitizations for GAAP		21,034			23,224			23,810			22,867			21,102			18,814			17,011			14,065
ABS liabilities of entities for GAAP		(20,815	)		(23,057	)		(23,630	)		(22,680	)		(20,923	)		(18,630	)		(16,826	)		(13,818	)

Redwood earning assets — GAAP basis	$	1,313		$	982		$	942		$	1,040		$	930		$	848		$	718		$	1,029

Table 7: Liabilities (all $ in millions)

Table 7
Liabilities
(all $ in millions)


	Q2:2005			Q1:2005			Q4:2004			Q3:2004			Q2:2004			Q1:2004			Q4:2003			Q3:2003
Redwood Trust debt: short-term	$	453		$	199		$	203		$	246		$	270		$	278		$	236		$	500
Redwood Trust debt: long-term		—			—			—			—			—			—			—			—

Total Redwood Trust debt	$	453		$	199		$	203		$	246		$	270		$	278		$	236		$	500

ABS issued, consolidated from entities		20,598			22,821			23,383			22,449			20,724			18,458			16,661			13,743
Unamortized IO issuance premium		186			202			210			185			161			162			153			66
Unamortized ABS issuance premium		31			34			37			46			38			10			12			9

ABS obligations of entities	$	20,815		$	23,057		$	23,630		$	22,680		$	20,923		$	18,630		$	16,826		$	13,818

Accrued interest payable		43			38			35			29			22			18			17			10
Interest rate agreements		3			—			1			7			1			12			4			4
Accrued expenses and other liabilities		23			26			29			32			28			21			22			27
Dividends payable		17			17			16			16			14			23			12			12

Total GAAP liabilities	$	21,354		$	23,337		$	23,914		$	23,010		$	21,258		$	18,982		$	17,117		$	14,371

Preferred Stock		—			—			—			—			—			—			—			—
Common stock		803			795			773			727			625			549			518			489
Accumulated other comprehensive income		137			125			105			97			111			79			82			91
Cumulative GAAP earnings		583			542			482			427			355			299			249			179
Cumulative distributions to shareholders		(531	)		(514	)		(496	)		(349	)		(333	)		(319	)		(296	)		(193	)

GAAP stockholders’ equity		992			948			864			902			758			608			553			566

Total GAAP liabilities and equity	$	22,346		$	24,285		$	24,778		$	23,912		$	22,016		$	19,590		$	17,670		$	14,937


Total Redwood Trust debt	$	453		$	199		$	203		$	246		$	270		$	278		$	236		$	500
GAAP stockholders’ equity		992			948			864			902			758			608			553			566

Redwood capital	$	1,445		$	1,147		$	1,067		$	1,148		$	1,028		$	886		$	789		$	1,066

Redwood debt to equity ratio		46	%		21	%		23	%		27	%		36	%		46	%		43	%		88	%
Debt to capital ratio		31	%		17	%		19	%		21	%		26	%		31	%		30	%		47	%

Redwood earning assets	$	1,313		$	982		$	942		$	1,040		$	930		$	848		$	718		$	1,029
Redwood debt		453			199			203			246			270			278			236			500

Redwood net earning assets (GAAP basis)	$	860		$	783		$	739		$	794		$	660		$	570		$	482		$	529

Equity to earning assets		76	%		97	%		92	%		87	%		82	%		72	%		77	%		55	%

Table 8: Book Value and Profitability (all $ in thousands, except per share data)

Table 8
Book Value and Profitability
(all $ in thousands, except per share data)


																									Six			Six
																									Months			Months
	Q2:2005			Q1:2005			Q4:2004			Q3:2004			Q2:2004			Q1:2004			Q4:2003			Q3:2003			Q2:2005			Q2:2004
BOOK VALUE

GAAP equity	$	991,757		$	948,001		$	864,156		$	901,841		$	757,940		$	608,122		$	553,328		$	566,134		$	991,757			757,940
Balance sheet mark-to-market adjustments		137,380			124,784			105,357			96,452			111,221			78,517			82,179			90,592			137,380			111,221

Core equity	$	854,377		$	823,217		$	758,799		$	805,389		$	646,719		$	529,605		$	471,149		$	475,542		$	854,377		$	646,719

Core equity		854,377			823,217			758,799			805,389			646,719			529,605			471,149			475,542			854,377			646,719
REIT taxable income to be paid as dividends		80,613			62,538			37,611			138,982			109,790			69,263			53,354			83,212			80,530			109,790

Adjusted core equity	$	773,764		$	760,679		$	721,188		$	666,407		$	536,929		$	460,342		$	417,796		$	392,330		$	773,847		$	536,929

Shares outstanding at quarter end		24,647			24,514			24,154			23,346			21,511			19,796			19,063			18,468			24,647			21,511

GAAP equity per share	$	40.24		$	38.67		$	35.78		$	38.63		$	35.24		$	30.72		$	29.03		$	30.65		$	40.24		$	35.24
Core equity per share		34.66			33.58			31.42			34.50			30.06			26.75			24.72			25.75			34.66			30.06
Adjusted core equity per share		31.39			31.03			29.86			28.55			24.96			23.25			21.92			21.24			31.40			24.96

PROFITABILITY
Net interest income	$	53,208		$	61,199		$	58,007		$	65,279		$	47,620		$	45,260		$	39,668		$	34,631		$	114,407		$	92,880
Net interest income / average core equity		25	%		31	%		30	%		38	%		33	%		36	%		34	%		30	%		28	%		34	%

Operating expenses (before excise and VSOE)		10,974			10,749			7,781			8,047			8,892			8,297			7,680			8,585		$	21,723		$	17,189
Efficiency ratio: op exp / core net interest income		21	%		18	%		13	%		12	%		19	%		18	%		19	%		25	%		19	%		19	%

Core earnings		37,872			45,466		$	45,565		$	51,969		$	37,029		$	34,783		$	30,485		$	24,481			83,338			71,812
Core return on average core equity		18	%		23	%		23	%		30	%		25	%		27	%		26	%		21	%		20	%		26	%

Table 9: Asset / Liability Matching at June 30, 2005 (all $ in thousands) (1)

Table 9
Asset/Liability Matching at June 30, 2005
(all $ in thousands)


			One-		Six-				Non				Total
			Month		Month		Fixed/		Interest				Liabilities
Asset	Asset		LIBOR		LIBOR		Hybrid		Bearing				And
Type	Amount		Liabilities		Liabilities		Liabilities		Liabilities		Equity		Equity
Cash (unrestricted)	$	72,193	$	72,193	$	0	$	0	$	0	$	0	$	72,193
One-Month LIBOR		6,184,838		6,184,838		—		—		—		—		6,184,838
Six-Month LIBOR		14,566,552		—		14,554,747		—		—		11,805		14,566,552
Other ARM		289,466		237,189		—		—		—		52,277		289,466
Fixed / Hybrid < 1yr*		60,957		—		—		22,514		—		38,443		60,957
Fixed / Hybrid > 1yr		954,975		—		—		195,899		—		759,076		954,975
Non-Earning Assets		216,774		—		—		—		86,618		130,156		216,774

Total (1)	$	22,345,755	$	6,494,220	$	14,554,747	$	218,413	$	86,618	$	991,757	$	22,345,755


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

(1)		includes assets and ABS liabilities of consolidated securitization entities.

Table 10: Average Balance Sheet (all $ in thousands)

Table 10
Average Balance Sheet
(all $ in thousands)


																	Six		Six
																	Months		Months
	Q2:2005		Q1:2005		Q4:2004		Q3:2004		Q2:2004		Q1:2004		Q4:2003		Q3:2003		Q2:2005		Q2:2004
Average residential real estate loans	$	20,054,970	$	21,640,501	$	21,716,898	$	20,484,287	$	18,754,200	$	16,916,295	$	14,381,270	$	10,958,059	$	20,843,356	$	17,835,248
Average residential HELOC		257,515		285,142		303,119		323,100		124,053		—		—		—		271,252		62,026
Average residential loan CES		550,460		493,412		424,879		368,887		317,235		287,078		272,999		270,991		522,093		302,157
Average commercial real estate loans		45,214		56,080		39,836		33,461		26,129		22,316		23,464		30,471		50,617		24,222
Average securities portfolio		1,573,170		1,442,742		1,278,528		1,148,828		980,089		862,005		709,867		602,622		1,508,316		921,047
Average cash and cash equivalents		124,707		124,685		126,556		101,937		81,450		70,641		116,265		49,053		124,697		76,046

Average earning assets		22,606,036		24,042,562		23,889,816		22,460,500		20,283,156		18,158,335		15,503,865		11,911,196		23,320,331		19,220,746
Average other assets		759,517		520,622		430,219		416,736		327,205		227,634		254,552		220,420		640,793		276,964

Average total assets	$	23,365,553	$	24,563,184	$	24,320,035	$	22,877,236	$	20,610,361	$	18,385,969	$	15,758,417	$	12,131,616	$	23,961,124	$	19,497,710


Average Redwood debt	$	216,639	$	277,423	$	348,177	$	404,589	$	539,231	$	447,931	$	410,631	$	344,424	$	246,863	$	493,581
Average asset-backed securities issues		22,067,276		23,324,111		22,956,247		21,606,164		19,350,833		17,299,503		14,708,963		11,197,470		22,692,221		18,325,168

Average total obligations		22,283,915		23,601,534		23,304,424		22,010,753		19,890,064		17,747,434		15,119,594		11,541,894		22,939,084		18,818,749
Average other liabilities		111,294		66,188		145,752		64,916		56,424		54,150		79,750		37,077		88,930		55,288

Average total liabilities		22,395,209		23,667,722		23,450,176		22,075,669		19,946,488		17,801,584		15,199,344		11,578,971		23,028,014		18,874,037

Average core equity		840,098		794,866		776,833		695,488		583,875		506,445		469,857		458,304		817,650		544,704
Average balance sheet mark-to-market adjustments		130,246		100,596		93,026		106,079		79,998		77,940		89,216		94,341		115,460		78,969

Average total equity		970,344		895,462		869,859		801,567		663,873		584,385		559,073		552,645		933,110		623,673

Average total liabilities and equity	$	23,365,553	$	24,563,184	$	24,320,035	$	22,877,236	$	20,610,361	$	18,385,969	$	15,758,417	$	12,131,616	$	23,961,124	$	19,497,710

Table 11: Balances & Yields (all $ in thousands)

Table 11
Balances & Yields
(all $ in thousands)


	At period end													For period ended
			Unamortized						Unrealized			Net
	Current		Premium/			Credit			Gain/			Book		Average		Interest
	Face		(Discount)			Protection			(loss)			Value		Balance*		Income		Yield
Total Earning Assets (GAAP)
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	%
Q1: 2004		19,537,316		39,166			(244,412	)		87,874			19,477,810		18,158,335		124,837		2.75	%
Q2: 2004		21,975,772		49,407			(264,523	)		91,454			21,852,110		20,283,156		137,979		2.72	%
Q3: 2004		23,883,198		75,814			(329,441	)		90,818			23,720,389		22,460,500		180,090		3.21	%
Q4: 2004		24,863,331		55,841			(372,535	)		95,396			24,572,723		23,889,816		205,178		3.44	%
2004		24,863,331		55,841			(372,535	)		95,396			24,572,723		21,208,757		648,084		3.06	%
Q1: 2005		24,301,644		34,281			(399,281	)		102,711			24,039,355		24,042,562		237,166		3.95	%
Q2: 2005		22,414,482		8,428			(427,139	)		133,210			22,128,981		22,606,036		248,388		4.40	%
Residential Real Estate Loans
Q3: 2003	$	13,703,475	$	123,392		($	13,617	)	$	0		$	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	%
Q1: 2004		17,950,901		154,451			(18,847	)		—			18,086,505		16,916,295		98,826		2.34	%
Q2: 2004		19,766,481		169,174			(20,080	)		—			19,915,575		18,754,200		109,880		2.34	%
Q3: 2004		21,381,784		197,472			(21,344	)		—			21,557,912		20,484,287		147,974		2.89	%
Q4: 2004		22,023,888		207,607			(23,078	)		—			22,208,417		21,716,898		168,831		3.11	%
2004		22,023,888		207,607			(23,078	)		—			22,208,417		19,476,842		525,511		2.70	%
Q1: 2005		21,307,080		210,375			(24,231	)		—			21,493,224		21,640,501		194,877		3.60	%
Q2: 2005		19,202,109		203,480			(22,396	)		—			19,383,193		20,054,970		203,743		4.06	%
Home Equity Lines of Credit
Q3: 2003		—		—			—			—			—		—		—		—
Q4: 2003		—		—			—			—			—		—		—		—
2003		—		—			—			—			—		—		—		—
Q1: 2004		—		—			—			—			—		—		—		—
Q2: 2004	$	317,045	$	10,043		($	267	)	$	0		$	326,821	$	124,053	$	536		1.73	%
Q3: 2004		308,697		9,029			(531	)		—			317,195		303,119		1,618		2.14	%
Q4: 2004		288,954		8,087			(693	)		—			296,348		303,119		2,177		2.87	%
2004		288,954		8,087			(693	)		—			296,348		188,254		4,331		2.30	%
Q1: 2005		272,591		7,477			(596	)		—			279,472		285,142		2,558		3.59	%
Q2: 2005		241,278		6,657			(563	)		—			247,372		257,515		2,467		3.83	%
Residential Credit-Enhancement Securities
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	%
Q1: 2004		634,000		(110,994	)		(216,924	)		68,534			374,616		287,078		15,533		21.64	%
Q2: 2004		712,908		(121,808	)		(235,535	)		86,674			442,239		317,235		16,077		20.27	%
Q3: 2004		830,524		(109,367	)		(298,925	)		74,577			496,809		368,887		16,007		17.36	%
Q4: 2004		933,772		(108,141	)		(342,706	)		78,733			561,658		424,879		16,985		15.99	%
2004		933,772		(108,141	)		(342,706	)		78,733			561,658		349,779		64,602		18.47	%
Q1: 2005		978,878		(89,405	)		(365,998	)		87,919			611,394		493,412		19,624		15.91	%
Q2: 2005		1,103,737		(96,488	)		(404,180	)		103,126			706,195		550,460		19,439		14.13	%
Commercial Real Estate Loans
Q3: 2003	$	31,211	$	538		($	8,141	)	$	0		$	23,608	$	30,471	$	939		12.33	%
Q4: 2003		31,180		(120	)		(8,641	)		—			22,419		23,464		244		4.16	%
2003		31,180		(120	)		(8,641	)		—			22,419		29,473		2,959		10.04	%
Q1: 2004		31,136		(318	)		(8,641	)		—			22,177		22,316		701		12.56	%
Q2: 2004		43,448		(1,261	)		(8,641	)		—			33,546		26,129		868		13.29	%
Q3: 2004		43,410		(1,380	)		(8,641	)		—			33,389		33,461		1,038		12.41	%
Q4: 2004		65,598		(2,478	)		(8,641	)		—			54,479		39,836		1,162		11.67	%
2004		65,598		(2,478	)		(8,641	)		—			54,479		30,469		3,769		12.37	%
Q1: 2005		67,365		(2,305	)		(8,456	)		—			56,604		56,080		1,587		11.32	%
Q2: 2005		51,778		(9,984	)		—			—			41,794		45,214		1,208		10.68	%
Securities
Q3: 2003	$	599,144	$	6,508		$	0		($	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	%
Q1: 2004		921,279		(3,973	)		—			19,340			936,646		862,005		9,611		4.46	%
Q2: 2004		1,097,429		(6,741	)		—			4,780			1,095,468		980,089		10,545		4.30	%
Q3: 2004		1,242,777		(19,940	)		—			16,241			1,239,078		1,148,828		13,278		4.62	%
Q4: 2004		1,424,563		(46,651	)		—			16,663			1,394,575		1,278,528		15,515		4.85	%
2004		1,424,563		(46,651	)		—			16,663			1,394,575		1,068,162		48,949		4.58	%
Q1: 2005		1,611,016		(91,861	)					14,792			1,533,947		1,442,742		17,940		4.97	%
Q2: 2005		1,743,387		(95,237	)		—			30,084			1,678,234		1,573,170		20,727		5.27	%
Cash & Equivalents
Q3: 2003	$	32,156		—			—			—		$	32,156			$	81
Q4: 2003		58,467		—			—			—			58,467				94
2003		58,467		—			—			—			58,467				418
Q1: 2004		57,866		—			—			—			57,866				166
Q2: 2004		38,461		—			—			—			38,461				73
Q3: 2004		76,006		—			—			—			76,006				175
Q4: 2004		126,556		—			—			—			57,246				508
2004		95,251		—			—			—			57,246				922
Q1: 2005		64,714		—			—			—			64,714				580
Q2: 2005		72,193		—			—			—			72,193				804


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

Table 12: Portfolio Activity (all $ in thousands)

Table 12
Portfolio Activity
(all $ 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 (GAAP)
Q3: 2003	$	4,996,403	$	0		($	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
Q1: 2004		2,321,706		—			(460,334	)		(11,516	)		(2,511	)		—		—			1,847,345
Q2: 2004		2,703,443		—			(859,148	)		(13,992	)		(1,233	)		—		—			1,829,070
Q3: 2004		2,898,165		(112,811	)		(1,144,320	)		2,078			(1,264	)		—		489			1,642,337
Q4: 2004		1,791,951		(865	)		(1,132,854	)		(5,993	)		(1,535	)		176		(375	)		650,505
2004		9,715,265		(113,676	)		(3,596,656	)		(29,423	)		(6,543	)		176		114			5,969,257
Q1: 2005		832,383		—			(1,539,387	)		(7,036	)		(1,307	)		154		—			(715,193	)
Q2: 2005		426,806		(3,378	)		(2,526,361	)		(8,937	)		1,494			34		254			(2,110,088	)
Home Equity Line of Credit
Q3: 2003		—		—			—			—			—			—		—			—
Q4: 2003		—		—			—			—			—			—		—			—
2003		—		—			—			—			—			—		—			—
Q1: 2004		—		—			—			—			—			—		—			—
Q2: 2004	$	335,044		—		($	7,706	)	($	250	)	($	267	)		—		—		$	326,821
Q3: 2004		—		—			(8,290	)		(1,072	)		(264	)		—		—			(9,626	)
Q4: 2004		—		—			(19,743	)		(942	)		(162	)		—		—			(20,847	)
2004		335,044		—			(35,739	)		(2,264	)		(693	)		—		—			296,348
Q1: 2005		—		—			(16,365	)		(608	)		97			—		—			(16,876	)
Q2: 2005		127		—			(31,439	)		(821	)		33			—		—			(32,100	)
Residential Loan Credit-Enhancement Securities
Q3: 2003	$	23,164	$	0		($	37,647	)	$	11,432		$	0		$	0	($	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
Q1: 2004		37,608		(22,416	)		(34,640	)		8,637			—			—		6,700			(4,111	)
Q2: 2004		75,027		—			(46,997	)		8,847			—			—		30,746			67,623
Q3: 2004		82,918		—			(44,822	)		8,181			—			—		8,293			54,570
Q4: 2004		72,976		—			(30,900	)		8,443			—			—		14,330			64,849
2004		268,529		(22,416	)		(157,359	)		34,108			—			—		60,069			182,931
Q1: 2005		67,809		(27,293	)		(23,932	)		8,727			—			—		24,425			49,736
Q2: 2005		87,849		—			(20,400	)		7,775			—			—		19,577			94,801
Commercial Real Estate Loans
Q3: 2003	$	1,023	($	774	)	($	11,220	)	($	33	)	$	0		$	0	$	130		($	10,914	)
Q4: 2003		—		—			(31	)		(198	)		(500	)		—		(500	)		(1,189	)
2003		6,442		(774	)		(11,353	)		(298	)		(500	)		—		(368	)		(6,851	)
Q1: 2004		—		—			(45	)		(122	)		—			—		(75	)		(242	)
Q2: 2004		17,066		(2,339	)		(3,233	)		(102	)		—			—		(23	)		11,369
Q3: 2004		—		—			(29	)		(128	)		—			—		—			(157	)
Q4: 2004		21,305		—			(83	)		(132	)		—			—		—			21,090
2004		38,371		(2,339	)		(3,390	)		(484	)		—			—		(98	)		32,060
Q1: 2005		6,732		—			(5,267	)		(30	)		185			—		505			2,125
Q2: 2005		—		(11,192	)		(3,769	)		(99	)		—			—		250			(14,810	)
Securities
Q3: 2003	$	28,702	$	0		($	12,677	)	($	96	)	$	0		$	0	($	6,421	)	$	9,508
Q4: 2003		256,588		—			(17,658	)		(343	)		—			—		1,042			239,629
2003		565,760		(4,051	)		(53,790	)		(547	)		—			—		1,645			509,017
Q1: 2004		86,278		(142	)		(9,807	)		(484	)		—			—		16,087			91,932
Q2: 2004		192,700		(8,333	)		(10,069	)		(705	)		—			—		(14,771	)		158,822
Q3: 2004		151,064		—			(18,489	)		(86	)		—			—		11,121			143,610
Q4: 2004		181,111		—			(25,189	)		(304	)		—			—		(121	)		155,497
2004		611,153		(8,475	)		(63,554	)		(1,579	)		—			—		12,316			549,861
Q1: 2005		181,207		(12,362	)		(27,070	)		(294	)		—			—		(2,109	)		139,372
Q2: 2005		156,182		(3,012	)		(22,333	)		(195	)		—			—		13,645			144,287

Table 13: Residential Credit Results (all $ in thousands)

Table 13
Residential Credit Results
(all $ in thousands)


									Total											Losses To
			Internally-				(1)		Credit											Securities		Redwood’s		Total Credit
			Designated		External		Total		Protection			Seriously		Seriously			Total			Junior To		Share of Net		Losses As %
	Underlying		Credit		Credit		Credit		As % of			Delinquent		Delinquent			Credit			Redwood’s		Charge Offs		of Loans
	Loans		Reserves		Enhancement		Protection		Loans			Loans		Loan %			Losses			Interest		(Recoveries)		(Annualized)
Total Managed Residential Portfolio
Q3: 2003	$	57,493,402	$	191,264	$	51,985	$	243,249		0.42	%		179,871		0.31	%		986			38		948		<0.01	%
Q4: 2003		84,372,335		217,306		46,476		263,782		0.31	%		137,978		0.16	%		1,645			357		1,288		<0.01	%
2003		84,372,335		217,306		46,476		263,782		0.31	%		137,978		0.16	%		4,186			1,003		3,183		<0.01	%
Q1: 2004		89,448,075		235,771		43,797		279,568		0.31	%		146,055		0.16	%		103			—		103		<0.01	%
Q2: 2004		117,020,797		255,615		70,460		326,075		0.28	%		136,654		0.12	%		1,781			75		1,706		<0.01	%
Q3: 2004		142,967,137		320,269		69,244		389,513		0.27	%		185,023		0.13	%		730			196		534		<0.01	%
Q4: 2004		148,510,685		365,784		67,650		433,434		0.29	%		163,554		0.11	%		689			—		689		<0.01	%
2004		148,510,685		365,784		67,650		433,434		0.29	%		163,554		0.11	%		3,303			271		3,032		<0.01	%
Q1: 2005		151,434,189		390,229		92,467		482,696		0.32	%		217,159		0.14	%		1,377			—		1,377		<0.01	%
Q2: 2005		183,248,239		426,576		141,970		568,546		0.31	%		245,399		0.13	%		740			196		578		<0.01	%
Residential Real Estate Loans
Q3: 2003	$	13,703,475	$	13,617	$	0	$	13,617		0.10	%		1,598		0.01	%		—			—		—		<0.01	%
Q4: 2003		16,110,748		16,336		—		16,336		0.10	%		5,419		0.03	%		50			—		50		<0.01	%
2003		16,110,748		16,336		—		16,336		0.10	%		5,419		0.03	%		81			—		81		<0.01	%
Q1: 2004		17,950,901		18,847		—		18,847		0.10	%		3,439		0.02	%		—			—		—		<0.01	%
Q2: 2004		19,766,481		20,080		—		20,080		0.10	%		5,362		0.03	%		—			—		—		<0.01	%
Q3: 2004		21,381,784		21,344		—		21,344		0.10	%		10,785		0.05	%		—			—		—		<0.01	%
Q4: 2004		22,023,888		23,078		—		23,078		0.10	%		13,338		0.06	%		176			—		176		<0.01	%
2004		22,023,888		23,078		—		23,078		0.10	%		13,338		0.06	%		176			—		176		<0.01	%
Q1: 2005		21,307,080		24,231		—		24,231		0.11	%		16,066		0.08	%		154			—		154		<0.01	%
Q2: 2005		19,202,109		22,396		—		22,396		0.12	%		16,514		0.09	%		(34	)		—		—		0.00	%
Residential Loan Credit-Enhancement Securities
Q3: 2003	$	43,680,152	$	177,647	$	51,985	$	229,632		0.53	%		178,273		0.41	%		986			38		948		<0.01	%
Q4: 2003		68,133,175		200,970		46,476		247,446		0.36	%		132,559		0.19	%		1,595			357		1,238		<0.01	%
2003		68,133,175		200,970		46,476		247,446		0.36	%		132,559		0.19	%		4,105			1,003		3,102		<0.01	%
Q1: 2004		71,361,570		216,924		43,797		260,721		0.37	%		142,616		0.20	%		103			—		103		<0.01	%
Q2: 2004		97,105,222		235,535		70,460		305,995		0.32	%		131,292		0.14	%		1,781			75		1,706		<0.01	%
Q3: 2004		121,585,353		298,925		69,244		368,169		0.30	%		174,238		0.14	%		730			196		534		<0.01	%
Q4: 2004		126,486,797		342,706		67,650		410,356		0.32	%		150,216		0.12	%		513			—		513		<0.01	%
2004		126,486,797		342,706		67,650		410,356		0.32	%		150,216		0.12	%		3,127			271		2,856		<0.01	%
Q1: 2005		130,127,109		365,998		92,467		458,465		0.35	%		201,093		0.15	%		1,223			—		1,223		<0.01	%
Q2: 2005		164,046,130		404,180		141,970		546,150		0.33	%		228,885		0.14	%		774			196		578		<0.01	%


(1)		The credit reserve on residential real estate loans owned is only available to absorb losses on the residential real estate loan portfolio. The internally-designated credit reserves on loans credit enhanced and the external credit enhancement on loans credit enhanced are only available to absorb losses on the residential loan credit-enhancement portfolio. This table excludes the residential home equity lines of credit.

Table 14: Residential Real Estate Loan Characteristics (at period end, all $ in thousands)

Table 14
Residential Real Estate Loan Characteristics
(at period end, all $ in thousands)


	Jun. 2005			Mar. 2005			Dec. 2004			Sep. 2004			Jun. 2004			Mar. 2004			Dec. 2003
Residential Loans	$	19,202,109		$	21,307,080		$	22,023,888		$	21,381,784		$	19,766,481		$	17,950,901		$	16,110,748
Number of loans		56,653			62,059			63,236			60,859			55,679			49,619			43,917
Average loan size	$	339		$	343		$	348		$	351		$	355		$	362		$	367
Adjustable %		100	%		100	%		100	%		100	%		100	%		100	%		100	%
Hybrid %		0	%		0	%		0	%		0	%		0	%		0	%		0	%
Fixed %		0	%		0	%		0	%		0	%		0	%		0	%		0	%
Negam%		0	%		0	%		0	%		0	%		0	%		0	%		0	%
Interest Only%		100	%		100	%		100	%		100	%		100	%		100	%		100	%

LIBOR 1 M %		25	%		24	%		24	%		22	%		21	%		22	%		23	%
LIBOR 6 M%		75	%		76	%		76	%		78	%		79	%		78	%		77	%
HYBRID %		0	%		0	%		0	%		0	%		0	%		0	%		0	%

Northern CA		12	%		12	%		13	%		13	%		12	%		12	%		12	%
Southern CA		12	%		12	%		13	%		13	%		14	%		13	%		13	%
Florida		11	%		11	%		11	%		11	%		11	%		11	%		11	%
New York		5	%		5	%		5	%		5	%		5	%		5	%		6	%
Georgia		5	%		5	%		5	%		5	%		5	%		5	%		5	%
New Jersey		4	%		4	%		4	%		4	%		4	%		4	%		5	%
Texas		4	%		4	%		4	%		4	%		4	%		4	%		4	%
Arizona		4	%		4	%		4	%		4	%		4	%		4	%		4	%
Colorado		4	%		4	%		4	%		4	%		4	%		4	%		4	%
Illinois		3	%		3	%		3	%		3	%		3	%		3	%		4	%
Virginia		3	%		3	%		3	%		3	%		3	%		3	%		3	%
Other states		33	%		32	%		32	%		31	%		31	%		31	%		31	%

Year 2005 origination		4	%		3	%		0	%		0	%		0	%		0	%		0	%
Year 2004 origination		37	%		38	%		38	%		32	%		23	%		11	%		0	%
Year 2003 origination		40	%		40	%		42	%		46	%		52	%		60	%		66	%
Year 2002 origination		15	%		16	%		16	%		18	%		21	%		24	%		28	%
Year 2001 origination		2	%		2	%		2	%		3	%		3	%		3	%		4	%
Year 2000 origination		0	%		0	%		0	%		0	%		0	%		0	%		0	%
Year 1999 origination		0	%		0	%		0	%		0	%		1	%		1	%		1	%
Year 1998 origination or earlier		1	%		1	%		1	%		1	%		1	%		1	%		2	%

Wtg Avg Original LTV		69	%		68	%		68	%		68	%		68	%		68	%		68	%
Wtg Avg Original Effective LTV		67	%		67	%		67	%		66	%		66	%		66	%		65	%
Original LTV: 0% - 20%		1	%		1	%		1	%		1	%		1	%		1	%		1	%
Original LTV: 20% - 30%		2	%		2	%		2	%		2	%		2	%		2	%		2	%
Original LTV: 30% - 40%		4	%		4	%		4	%		4	%		4	%		5	%		5	%
Original LTV: 40% - 50%		7	%		7	%		7	%		7	%		8	%		8	%		9	%
Original LTV: 50% - 60%		11	%		11	%		12	%		12	%		12	%		12	%		13	%
Original LTV: 60% - 70%		20	%		20	%		21	%		20	%		20	%		20	%		20	%
Original LTV: 70% - 80%		47	%		46	%		46	%		44	%		44	%		43	%		41	%
Original LTV: 80% - 90%		2	%		2	%		2	%		2	%		2	%		2	%		2	%
Original LTV: 90% - 100%		6	%		6	%		6	%		6	%		7	%		7	%		8	%

Wtg Avg FICO		731			731			731			731			731			731			731
FICO: <= 600		1	%		1	%		1	%		1	%		1	%		1	%		1	%
FICO: 601 -620		1	%		1	%		1	%		1	%		1	%		1	%		1	%
FICO: 621 - 640		1	%		1	%		1	%		2	%		2	%		2	%		2	%
FICO: 641 -660		3	%		3	%		3	%		3	%		3	%		3	%		4	%
FICO: 661 - 680		8	%		8	%		8	%		8	%		8	%		8	%		7	%
FICO: 681 - 700		12	%		12	%		12	%		12	%		12	%		11	%		11	%
FICO: 701 - 720		14	%		14	%		14	%		14	%		14	%		14	%		14	%
FICO: 721 - 740		14	%		14	%		14	%		14	%		14	%		14	%		14	%
FICO: 741 - 760		15	%		16	%		16	%		16	%		16	%		16	%		16	%
FICO: 761 - 780		17	%		17	%		17	%		17	%		17	%		17	%		17	%
FICO: 781 - 800		11	%		11	%		11	%		11	%		11	%		11	%		12	%
FICO: >= 801		2	%		2	%		2	%		2	%		2	%		2	%		2	%

Conforming at Orgination %		37	%		36	%		36	%		36	%		35	%		34	%		34	%
% balance in loans > $1mm per loan		13	%		13	%		14	%		14	%		14	%		15	%		16	%

2nd Home %		10	%		10	%		10	%		10	%		10	%		10	%		10	%
Investment Home %		2	%		2	%		2	%		2	%		2	%		2	%		2	%

Purchase		33	%		34	%		33	%		33	%		31	%		31	%		30	%
Cash Out Refi		34	%		34	%		34	%		35	%		36	%		36	%		35	%
Rate-Term Refi		32	%		31	%		31	%		31	%		31	%		31	%		32	%
Construction		0	%		0	%		0	%		0	%		0	%		0	%		0	%
Other		1	%		1	%		1	%		1	%		1	%		2	%		2	%

This table only includes loans shown under “residential real estate loans” on our GAAP balance sheet. These are the loans securitized by Sequoia securitization entities sponsored by Redwood. Not included are loans underlying residential credit-enhancement securities by Redwood from securitizations sponsored by others.

Table 15: Residential Loan Credit-Enhancement Securities — Underlying Collateral Characteristics (all $ in thousands)

Table 15
Residential Loan Credit-Enhancement Securities — Underlying Collateral Characteristics
(all $ in thousands)


	Jun. 2005			Mar. 2005			Dec. 2004			Sep. 2004			Jun. 2004			Mar. 2004			Dec. 2003
First loss position, principal value	$	425,080		$	375,646		$	352,752		$	320,975		$	279,927		$	262,329		$	255,570
Second loss position, principal value		306,145			265,639			276,720			244,042			197,403			176,672			174,592
Third loss position, principal value		372,512			337,593			304,300			265,507			235,578			194,999			193,530

Total principal value	$	1,103,737		$	978,878		$	933,772		$	830,524		$	712,908		$	634,000		$	623,692

First loss position, reported value	$	150,621		$	126,694		$	110,933		$	99,783		$	102,088		$	75,769		$	78,030
Second loss position, reported value		228,737			191,962			195,536			174,371			145,211			133,167			134,225
Third loss position, reported value		326,837			292,738			255,189			222,655			194,940			165,680			166,472

Total reported value	$	706,195		$	611,394		$	561,658		$	496,809		$	442,239		$	374,616		$	378,727

Internal Designated Credit Reserves	$	404,180		$	365,998		$	340,123		$	298,925		$	235,535		$	216,924		$	200,970
External Credit Enhancement		141,970			92,467			67,650			69,244			70,460			43,797			46,476

Total Credit Protection	$	546,150		$	458,465		$	407,773		$	368,169		$	305,995		$	260,721		$	247,446
As % of Total Portfolio		0.33	%		0.35	%		0.32	%		0.30	%		0.32	%		0.37	%		0.36	%

Underlying Residential Real Estate Loans	$	164,046,130		$	130,127,109		$	126,486,797		$	121,585,353		$	97,105,222		$	71,361,570		$	68,133,175
Number of credit-enhanced loans		403,062			295,073			279,838			272,003			216,048			163,673			152,083
Average loan size	$	407		$	441		$	452		$	447		$	449		$	436		$	448

Adjustable %		7	%		9	%		9	%		8	%		8	%		7	%		8	%
Negam %		18	%		18	%		17	%		14	%		12	%		11	%		12	%
Hybrid %		30	%		28	%		28	%		29	%		33	%		37	%		42	%
Fixed %		45	%		45	%		46	%		49	%		47	%		45	%		38	%

Interest Only %		23	%		24	%		24	%		24	%		24	%		22	%		25	%

Northern California		20	%		20	%		19	%		21	%		22	%		23	%		23	%
Southern California		24	%		23	%		22	%		23	%		23	%		23	%		24	%
Florida		5	%		5	%		6	%		5	%		5	%		4	%		4	%
New York		5	%		5	%		5	%		5	%		5	%		5	%		5	%
New Jersey		4	%		4	%		4	%		4	%		4	%		4	%		4	%
Virginia		4	%		4	%		4	%		4	%		4	%		4	%		4	%
Texas		3	%		3	%		3	%		3	%		3	%		3	%		3	%
Colorado		3	%		3	%		3	%		3	%		3	%		3	%		3	%
Illinois		3	%		3	%		3	%		3	%		3	%		3	%		3	%
Other states (none greater than 3%)		29	%		30	%		31	%		29	%		28	%		28	%		27	%

Year 2005 origination		15	%		6	%		0	%		0	%		0	%		0	%		0	%
Year 2004 origination		51	%		55	%		55	%		51	%		39	%		16	%		0	%
Year 2003 origination		26	%		29	%		32	%		36	%		44	%		59	%		64	%
Year 2002 origination		5	%		6	%		7	%		7	%		9	%		14	%		19	%
Year 2001 origination		2	%		2	%		3	%		3	%		4	%		6	%		9	%
Year 2000 origination		0	%		0	%		0	%		0	%		1	%		1	%		1	%
Year 1999 origination		0	%		0	%		1	%		1	%		1	%		1	%		2	%
Year 1998 or earlier origination		1	%		2	%		2	%		2	%		2	%		3	%		5	%

Wtg Avg Original LTV		68	%		68	%		68	%		68	%		67	%		67	%		67	%
Original LTV: 0% - 20%		0	%		0	%		0	%		0	%		0	%		0	%		0	%
Original LTV: 20% - 30%		2	%		2	%		2	%		2	%		2	%		2	%		2	%
Original LTV: 30% - 40%		3	%		3	%		3	%		3	%		3	%		4	%		4	%
Original LTV: 40% - 50%		8	%		8	%		8	%		8	%		8	%		8	%		8	%
Original LTV: 50% - 60%		12	%		12	%		12	%		13	%		13	%		13	%		13	%
Original LTV: 60% - 70%		23	%		23	%		23	%		23	%		24	%		24	%		23	%
Original LTV: 70% - 80%		48	%		48	%		48	%		48	%		47	%		46	%		46	%
Original LTV: 80% - 90%		3	%		3	%		3	%		2	%		2	%		2	%		3	%
Original LTV: 90% - 100%		1	%		1	%		1	%		1	%		1	%		1	%		1	%

Wtg Avg FICO		731			730			730			728			731			732			732
FICO: <= 600		0	%		0	%		0	%		0	%		0	%		0	%		0	%
FICO: 601 - 620		0	%		0	%		0	%		0	%		0	%		0	%		0	%
FICO: 621 - 640		2	%		2	%		2	%		2	%		2	%		2	%		2	%
FICO: 641 - 660		4	%		4	%		4	%		4	%		4	%		4	%		3	%
FICO: 661 - 680		7	%		7	%		7	%		7	%		7	%		7	%		6	%
FICO: 681 - 700		11	%		11	%		11	%		11	%		10	%		10	%		10	%
FICO: 701 - 720		13	%		13	%		13	%		13	%		13	%		13	%		13	%
FICO: 721 - 740		14	%		14	%		14	%		14	%		14	%		14	%		14	%
FICO: 741 - 760		15	%		16	%		16	%		16	%		16	%		16	%		16	%
FICO: 761 - 780		17	%		17	%		17	%		18	%		18	%		17	%		17	%
FICO: 781 - 800		12	%		11	%		11	%		11	%		11	%		11	%		11	%
FICO: >= 801		3	%		2	%		2	%		2	%		2	%		2	%		2	%
Unknown		2	%		2	%		2	%		2	%		3	%		4	%		5	%

Table 17: Securities Portfolio — Characteristics at June 30, 2005 (all $ in thousands)

Table 17
Securities Portfolio — Characteristics at June 30, 2005
(all $ in thousands)


			Rating:
	Total		AAA		AA		A		BBB		BB		B		Unrated
Commercial Real Estate	$	299,421	$	19,335	$	1,930	$	32,106	$	105,784	$	86,519	$	24,350	$	29,397
Residential Prime		545,504		24,873		234,988		132,474		153,169		—		—		—
Residential Subprime		486,175		—		90,414		304,436		91,325		—		—		—
Residential Second Lien		124,450		3,033		51,919		63,378		6,120		—		—		—
Manufactured Housing		14,778		3,097		—		5,581		—		—		6,100		—
Corporate REIT Debt		64,496		—		—		7,302		57,194		—		—		—
Real Estate CDOs		143,408		30,033		26,317		42,051		39,597		4,576		—		834

Total Securities Portfolio	$	1,678,232	$	80,371	$	405,568	$	587,328	$	453,189	$	91,095	$	30,450	$	30,231

Includes a portion of Redwood’s permanent investment portfolio, plus securities consolidated from Acacia CDO securitization entities sponsored by Redwood, plus securities held by Redwood temporarily prior to sale to Acacia.

Does not include securities purchased for Acacia or Redwood’s permanent investment portfolio from securitization entities sponsored by Redwood, as those securities are eliminated in the GAAP consolidation of the underlying entities.

Does not include residential credit-enhancement securities.

Table 18: ABS Issued Characteristics — Residential Mortgage Loans (Sequoia) (all $ in thousands)

Table 18
ABS Issued Characteristics — Residential Mortgage Loans (Sequoia)
(all $ in thousands)


										Principal		Interest
				Original					Estimated	Outstanding		Rate At
Sequoia	Debt	Issue		Issue			Stated		Callable	At June 30,		June 30,
ABS Issued	Rating	Date		Amount		Index	Maturity		Date	2005		2005
Sequoia 1 A1	AAA		07/29/97	$	334,347	1m LIBOR		2028	Called	$	0	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	Called		—	NM
Sequoia 2 A2	AAA		11/06/97		156,600	1m LIBOR		2029	Called		—	NM
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		133,273		3.64	%
Sequoia 5 A	AAA		10/29/01		496,667	1m LIBOR		2026	2009		243,330		3.61	%
Sequoia 5 B1	AA		10/29/01		5,918	1m LIBOR		2026	2009		5,918		4.06	%
Sequoia 5 B2	A		10/29/01		5,146	1m LIBOR		2026	2009		5,146		4.06	%
Sequoia 5 B3	BBB		10/29/01		2,316	1m LIBOR		2026	2009		2,316		4.06	%
Sequoia 6A	AAA		04/26/02		496,378	1m LIBOR		2027	2009		272,840		3.58	%
Sequoia 6B1	AA		04/26/02		5,915	1m LIBOR		2027	2009		5,915		3.96	%
Sequoia 7A	AAA		05/29/02		554,686	1m LIBOR		2032	2008		256,632		3.60	%
Sequoia 7B1	AA		05/29/02		8,080	1m LIBOR		2032	2008		8,080		4.01	%
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		7,848		4.73	%
Sequoia 8 2A	AAA		07/30/02		463,097	1m LIBOR		2032	2008		245,394		3.56	%
Sequoia 8 3A	AAA		07/30/02		49,973	6m LIBOR		2032	2008		19,213		4.21	%
Sequoia 8 B1	AA		07/30/02		9,069	1m LIBOR		2032	2008		8,702		3.94	%
Sequoia 9 1A	AAA		08/28/02		381,689	1m LIBOR		2032	2011		212,014		3.61	%
Sequoia 9 2A	AAA		08/28/02		168,875	1m LIBOR		2032	2011		63,741		4.23	%
Sequoia 9 B1	AA		08/28/02		7,702	1m LIBOR		2032	2011		7,702		4.01	%
Sequoia 10 1A	AAA		09/26/02		822,375	1m LIBOR		2027	2011		477,349		3.66	%
Sequoia 10 2A-1	AAA		09/26/02		190,000	1m LIBOR		2027	2011		107,208		3.64	%
Sequoia 10 2A-2	AAA		09/26/02		3,500	1m LIBOR		2027	2011		3,500		3.94	%
Sequoia 10 B1	AA		09/26/02		12,600	1m LIBOR		2027	2011		12,600		4.06	%
Sequoia 10 B2	A		09/26/02		8,400	1m LIBOR		2027	2011		8,400		4.06	%
Sequoia 10 B3	BBB		09/26/02		4,725	1m LIBOR		2027	2011		4,725		4.66	%
Sequoia 11 A	AAA		10/30/02		695,210	1m LIBOR		2032	2011		377,246		3.71	%
Sequoia 11 B1	AA		10/30/02		9,726	1m LIBOR		2032	2011		9,726		4.23	%
Sequoia 12 A	AAA		12/19/02		1,080,076	1m LIBOR		2033	2009		622,054		3.71	%
Sequoia 12 B1	AA		12/19/02		16,815	1m LIBOR		2033	2009		16,815		4.11	%
Sequoia 2003-1 A1	AAA		02/27/03		798,206	1m LIBOR		2033	2009		464,932		3.64	%
Sequoia 2003-1 A2	AAA		02/27/03		190,000	6m LIBOR		2033	2009		110,292		3.48	%
Sequoia 2003-1 B1	AA		02/27/03		15,905	1m LIBOR		2033	2009		15,905		4.14	%
Sequoia 2003-1 B2	A		02/27/03		8,210	Pass Through		2033	2009		8,210		4.05	%
Sequoia 2003-2 A1	AAA		04/29/03		500,000	1m LIBOR		2022	2009		305,243		3.59	%
Sequoia 2003-2 A2	AAA		04/29/03		303,600	6m LIBOR		2022	2009		171,850		3.67	%
Sequoia 2003-2 M1	AA		04/29/03		11,480	1m LIBOR		2016	2009		11,480		3.91	%
Sequoia 2003-3 A1	AAA		06/26/03		379,455	1m LIBOR		2023	2009		223,824		3.59	%
Sequoia 2003-3 A2	AAA		06/26/03		149,922	6m LIBOR		2023	2009		89,324		3.99	%
Sequoia 2003-3 B1	AA		06/26/03		9,075	1m LIBOR		2025	2009		9,075		3.91	%
MLCC 2003-C A1	AAA		06/26/03		773,795	1m LIBOR		2023	2012		466,397		3.64	%
MLCC 2003-C A2	AAA		06/26/03		200,002	6m LIBOR		2023	2012		120,851		4.00	%
MLCC 2003-C B1	AA		06/26/03		10,553	1m LIBOR		2025	2012		10,553		3.96	%
MLCC 2003-D A	AAA		07/29/03		992,833	1m LIBOR		2028	2012		640,962		3.62	%
MLCC 2003-D B1	AA		07/29/03		10,758	1m LIBOR		2028	2012		10,758		3.94	%
Sequoia 2003-4 1A1	AAA		07/29/03		148,641	1m LIBOR		2033	2009		107,876		3.57	%
Sequoia 2003-4 1A2	AAA		07/29/03		150,000	6m LIBOR		2033	2009		111,476		3.23	%
Sequoia 2003-4 1B1	AA		07/29/03		3,864	1m LIBOR		2033	2009		3,864		3.91	%
Sequoia 2003-4 2A1	AAA		07/29/03		189,415	1m LIBOR		2033	2011		145,318		3.61	%
Sequoia 2003-4 2M1	AA		07/29/03		9,986	1m LIBOR		2033	2011		9,986		3.73	%
Sequoia 2003-4 2B1	AA		07/29/03		2,367	1m LIBOR		2033	2011		2,367		3.91	%
Sequoia 2003-5 A1	AAA		08/27/03		675,596	1m LIBOR		2033	2009		408,547		3.57	%
Sequoia 2003-5 A2	AAA		08/27/03		149,609	6m LIBOR		2033	2009		89,135		3.41	%
Sequoia 2003-5 B1	AA		08/27/03		15,043	1m LIBOR		2033	2009		15,043		3.86	%
Sequoia 2003-6 A1	AAA		10/29/03		458,238	1m LIBOR		2033	2009		274,745		3.57	%
Sequoia 2003-6 A2	AAA		10/29/03		180,474	6m LIBOR		2033	2009		102,038		3.66

Table 18: ABS Issued Characteristics — Residential Mortgage Loans (Sequoia) — continued

Table 18
ABS Issued Characteristics — Residential Mortgage Loans (Sequoia)
(all $ in thousands)


											Principal		Interest
				Original					Estimated		Outstanding		Rate
Sequoia	Debt	Issue		Issue			Stated		Callable		At June 30,		At June 30,
ABS Issued	Rating	Date		Amount		Index	Maturity		Date		2005		2005
Sequoia 2003-6 B1	AA		10/29/03	$	11,287	1m LIBOR		2033		2009	$	11,287		3.84	%
Sequoia 2003-7 A1	AAA		11/25/03		290,000	1m LIBOR		2034		2009		179,089		3.58	%
Sequoia 2003-7 A2	AAA		11/25/03		505,100	6m LIBOR		2034		2009		302,990		3.84	%
Sequoia 2003-7 B1	AA		11/25/03		16,607	1m LIBOR		2034		2009		16,607		3.81	%
Sequoia 2003-8 A1	AAA		12/23/03		791,768	1m LIBOR		2034		2009		552,140		3.58	%
Sequoia 2003-8 A2	AAA		12/23/03		150,000	6m LIBOR		2034		2009		104,133		3.96	%
Sequoia 2003-8 B1	AA		12/23/03		14,166	1m LIBOR		2034		2009		14,166		3.85	%
Sequoia 2003-8 B2	A		12/23/03		8,304	1m LIBOR		2034		2009		8,304		4.51	%
MLCC 2003-E A1	AAA		08/28/03		823,305	1m LIBOR		2028		2012		533,506		3.62	%
MLCC 2003-E A2	AAA		08/28/03		150,000	6m LIBOR		2028		2012		94,947		3.41	%
MLCC 2003-E B1	AA		08/28/03		10,547	1m LIBOR		2028		2012		10,547		3.91	%
MLCC 2003-F A1	AAA		09/25/03		839,000	1m LIBOR		2028		2012		559,729		3.63	%
MLCC 2003-F A2	AAA		09/25/03		270,000	6m LIBOR		2028		2012		181,419		3.71	%
MLCC 2003-F A3	AAA		09/25/03		175,000	Pass Through		2028		2012		126,822		4.67	%
MLCC 2003-F B1	AA		09/25/03		13,913	1m LIBOR		2028		2012		13,913		3.91	%
MLCC 2003-H A1	AAA		12/22/03		365,708	1m LIBOR		2029		2012		261,834		3.63	%
MLCC 2003-H A2	AAA		12/22/03		240,000	6m LIBOR		2029		2012		174,788		3.99	%
MLCC 2003-H A3A	AAA		12/22/03		119,613	Pass Through		2029		2012		84,149		4.14	%
MLCC 2003-H B1	AA		12/22/03		7,875	1m LIBOR		2029		2012		7,875		3.86	%
MLCC 2003-H B2	A		12/22/03		6,000	1m LIBOR		2029		2012		6,000		4.56	%
Sequoia 2004-1 A1	AAA		01/28/04		601,250	6m LIBOR		2034		2010		415,797		3.20	%
Sequoia 2004-1 B1	AA		01/28/04		9,375	1m LIBOR		2034		2010		9,375		3.81	%
Sequoia 2004-1 B2	A		01/28/04		5,937	1m LIBOR		2034		2010		5,937		4.31	%
Sequoia 2004-2 A1	AAA		02/25/04		671,998	6m LIBOR		2034		2010		441,834		3.35	%
Sequoia 2004-2 B1	AA		02/25/04		11,550	1m LIBOR		2034		2010		11,550		3.76	%
Sequoia 2004-2 B2	A		02/25/04		7,000	1m LIBOR		2034		2010		7,000		4.24	%
Sequoia 2004-3 A1	AAA		03/30/04		894,673	6m LIBOR		2034		2010		591,488		3.55	%
Sequoia 2004-3 M1	AA		03/30/04		13,800	1m LIBOR		2034		2010		13,800		3.76	%
Sequoia 2004-3 M2	A		03/30/04		9,200	1m LIBOR		2034		2010		9,200		4.16	%
Sequoia 2004-4 A1	AAA		04/29/04		785,971	6m LIBOR		2010		2010		523,286		3.59	%
Sequoia 2004-4 B1	AA		04/29/04		14,612	1m LIBOR		2010		2010		14,612		3.76	%
Sequoia 2004-4 B2	A		04/29/04		8,350	1m LIBOR		2010		2010		8,350		4.16	%
Sequoia 2004-5 A1	AAA		05/27/04		547,657	Pass Through		2012		2012		381,868		3.59	%
Sequoia 2004-5 A2	AAA		05/27/04		185,613	1m LIBOR		2012		2012		129,108		3.11	%
Sequoia 2004-5 A3	AAA		05/27/04		74,897	6m LIBOR		2012		2012		52,097		2.82	%
Sequoia 2004-5 B1	AA		05/27/04		14,874	1m LIBOR		2012		2012		14,874		3.33	%
Sequoia 2004-5 B2	A		05/27/04		8,499	1m LIBOR		2012		2012		8,499		3.73	%
Sequoia 2004-6 A1	AAA		06/29/04		500,000	Pass Through		2012		2012		356,879		4.34	%
Sequoia 2004-6 A2	AAA		06/29/04		185,687	1m LIBOR		2012		2012		142,554		3.54	%
Sequoia 2004-6 A3a	AAA		06/29/04		196,500	6m LIBOR		2012		2012		145,579		3.94	%
Sequoia 2004-6 A3b	AAA		06/29/04		3,500	6m LIBOR		2012		2012		2,593		4.08	%
Sequoia 2004-6 B1	AA		06/29/04		15,725	1m LIBOR		2012		2012		15,725		3.76	%
Sequoia 2004-6 B2	A		06/29/04		9,250	1m LIBOR		2012		2012		9,250		4.14	%
SEMHT 2004-01 A	AAA		06/29/04		317,044	1m LIBOR		2014		2012		237,189		3.49	%
Sequoia 2004-7 A1	AAA		07/29/04		498,828	Pass Through		2034		2012		206,220		3.90	%
Sequoia 2004-7 A2	AAA		07/29/04		252,102	1m LIBOR		2034		2012		197,184		3.57	%
Sequoia 2004-7 A3a	AAA		07/29/04		247,874	6m LIBOR		2034		2012		188,515		3.23	%
Sequoia 2004-7 A3b	AAA		07/29/04		3,956	6m LIBOR		2034		2012		3,009		3.45	%
Sequoia 2004-7 B1	AA		07/29/04		18,900	1m LIBOR		2034		2012		18,900		3.81	%
Sequoia 2004-7 B2	A		07/29/04		11,025	1m LIBOR		2034		2012		11,025		4.20	%
Sequoia 2004-8 A1	AAA		08/27/04		365,049	1m LIBOR		2034		2012		294,230		3.61	%
Sequoia 2004-8 A2	AAA		08/27/04		418,050	6m LIBOR		2034		2012		330,942		3.45	%
Sequoia 2004-8 B1	AA		08/27/04		16,400	1m LIBOR		2034		2012		16,400		3.78	%
Sequoia 2004-8 B2	A		08/27/04		8,200	1m LIBOR		2034		2012		8,200		4.16	%
Sequoia 2004-9 A1	AAA		09/29/04		453,364	1m LIBOR		2034		2012		370,218		3.60	%
Sequoia 2004-9 A2	AAA		09/29/04		296,310	6m LIBOR		2034		2012		243,545		3.66	%
Sequoia 2004-9 B1	AA		09/29/04		14,915	1m LIBOR		2034		2012		14,915		3.77	%
Sequoia 2004-9 B2	A		09/29/04		8,242	1m LIBOR		2034		2012		8,242		4.14	%
Sequoia 2004-10 A-1A	AAA		10/28/04		110,000	1m LIBOR		2034		2012		93,641		3.57	%
Sequoia 2004-10 A-1B	AAA		10/28/04		12,225	1m LIBOR		2034		2012		10,407		3.63	%
Sequoia 2004-10 A-2	AAA		10/28/04		203,441	1m LIBOR		2034		2012		173,186		3.58	%
Sequoia 2004-10 A-3A	AAA		10/28/04		180,000	6m LIBOR		2034		2012		141,471		3.66	%
Sequoia 2004-10 A-3B	AAA		10/28/04		20,000	6m LIBOR		2034		2012		15,719		3.72	%
Sequoia 2004-10 A-4	AAA		10/28/04		126,799	6m LIBOR		2034		2012		99,657		3.67	%
Sequoia 2004-10 B-1	AA		10/28/04		14,042	1m LIBOR		2034		2012		14,042		3.76	%
Sequoia 2004-10 B-2	A		10/28/04		6,849	1m LIBOR		2034		2012		6,849		4.11	%

Table 18: ABS Issued Characteristics — Residential Mortgage Loans (Sequoia) — continued

Table 18
ABS Issued Characteristics — Residential Mortgage Loans (Sequoia)
(all $ in thousands)


											Principal		Interest
				Original					Estimated		Outstanding		Rate
Sequoia	Debt	Issue		Issue			Stated		Callable		At June 30,		At June 30,
ABS Issued	Rating	Date		Amount		Index	Maturity		Date		2005		2005
Sequoia 2004-11 A1	AAA		11/23/04	$	433,985	1m LIBOR		2034		2013	$	367,708		3.56	%
Sequoia 2004-11 A2	AAA		11/23/04		86,036	6m LIBOR		2034		2013		72,396		3.81	%
Sequoia 2004-11 A3	AAA		11/23/04		170,694	1m LIBOR		2034		2013		152,022		3.56	%
Sequoia 2004-11 B1	AA		11/23/04		8,947	1m LIBOR		2034		2013		8,947		3.76	%
Sequoia 2004-11 B2	A		11/23/04		6,084	1m LIBOR		2034		2013		6,084		4.11	%
Sequoia 2004-12 A1	AAA		12/22/04		380,510	1m LIBOR		2035		2013		340,925		3.53	%
Sequoia 2004-12 A2	AAA		12/22/04		208,392	6m LIBOR		2035		2013		176,002		3.93	%
Sequoia 2004-12 A3	AAA		12/22/04		218,331	6m LIBOR		2035		2013		177,863		3.96	%
Sequoia 2004-12 B1	AA		12/22/04		8,588	1m LIBOR		2035		2013		8,588		3.76	%
Sequoia 2004-12 B2	A		12/22/04		6,134	1m LIBOR		2035		2013		6,134		4.11	%
Sequoia 2005-1 A1	AAA		01/27/05		298,055	1m LIBOR		2035		2013		264,853		3.49	%
Sequoia 2005-1 A2	AAA		01/27/05		100,000	6m LIBOR		2035		2013		93,210		3.17	%
Sequoia 2005-1 B1	AA		01/27/05		7,067	1m LIBOR		2035		2013		7,067		3.68	%
Sequoia 2005-1 B2	A		01/27/05		3,949	1m LIBOR		2035		2013		3,949		3.96	%
Sequoia 2005-2 A1	AAA		02/24/05		202,462	1m LIBOR		2035		2013		189,921		3.48	%
Sequoia 2005-2 A2	AAA		02/24/05		126,737	6m LIBOR		2035		2013		111,355		3.36	%
Sequoia 2005-2 B1	AA		02/24/05		6,016	1m LIBOR		2035		2013		6,016		3.65	%
Sequoia 2005-2 B2	A		02/24/05		3,266	1m LIBOR		2035		2013		3,266		3.93	%
Sequoia 2005-3 A1	AAA		04/28/05		349,687	1m LIBOR		2035		2013		334,740		3.46	%
Sequoia 2005-3 B1	AA		04/28/05		6,208	1m LIBOR		2035		2013		6,208		3.63	%
Sequoia 2005-3 B2	A		04/28/05		3,287	1m LIBOR		2035		2013		3,287		3.90	%

Total Sequoia ABS Issuance				$	30,222,773						$	18,667,485		3.63	%

Does not include Sequoia ABS acquired by Redwood or Acacia

Table 19: ABS Issued Characteristics — IO’s from Residential Real Esate Loans
Sequoia Interest-Only Certificates Issued (all $ in thousands)

Table 19
ABS Characteristics — IO’s from Residential Real Estate Loans — Sequoia Interest Only Certificates Issued
(all $ in thousands)


											Adjusted		Interest
				Original					Estimated		Issue Amount		Rate At
Sequoia ABS	Debt	Issue		Issue			Stated		Callable		At June 30,		June 30,
IO’s Issued	Rating	Date		Amount		Index	Maturity		Date		2005		2005
MLCC 2003-C X-A-2	AAA		06/26/03	$	12,662	Fixed		2007		2011	$	2,407		4.50	%
MLCC 2003-D X-A-1	AAA		07/29/03		22,371	Fixed		2007		2012		5,231		4.50	%
MLCC 2003-E X-A-1	AAA		08/28/03		16,550	Fixed		2007		2012		5,455		4.25	%
MLCC 2003-F X-A-1	AAA		09/25/03		18,666	Fixed		2007		2012		6,281		4.50	%
Sequoia 2003-6 X-1	AAA		10/29/03		8,220	Fixed		2007		2009		2,741		4.50	%
SMFC 2003A AX1	AAA		10/31/03		70,568	Fixed		2007		2007		20,466		4.50	%
Sequoia 2003-7 X-1	AAA		11/25/03		10,345	Fixed		2007		2012		3,645		4.25	%
Sequoia 2003-8 X-1	AAA		12/23/03		12,256	Fixed		2007		2009		4,617		4.50	%
Sequoia 2004-1 X-1	AAA		01/28/04		7,801	Fixed		2007		2009		3,146		4.00	%
Sequoia 2004-2 X-1	AAA		02/25/04		8,776	Fixed		2007		2009		3,735		3.75	%
SMFC 2004A AX1	AAA		02/26/04		10,626	Fixed		2007		2007		5,855		3.75	%
MLCC 2003-H X-A-1	AAA		12/22/03		10,430	Fixed		2007		2012		4,275		4.25	%
Sequoia 2004-4 X-1	AAA		05/28/04		9,789	Fixed		2010		2009		4,954		4.25	%
Sequoia 2004-5 X-1	AAA		05/27/04		3,371	Fixed		2012		2012		1,718		4.15	%
Sequoia 2004-6 X-A	AAA		06/29/04		10,884	Pass Through		2012		2012		8,127		N/A
Sequoia 2004-7 X-A	AAA		07/29/04		12,145	Pass Through		2034		2012		9,056		N/A
Sequoia 2004-8 X-A	AAA		08/27/04		18,270	Pass Through		2034		2012		14,275		N/A
Sequoia 2004-9 X-A	AAA		09/29/04		16,951	Pass Through		2034		2012		13,353		N/A
Sequoia 2004-10 X-A	AAA		10/28/04		14,735	Pass Through		2034		2012		11,902		N/A
Sequoia 2004-11 X-A-1	AAA		11/23/04		12,603	Pass Through		2034		2013		10,490		N/A
Sequoia 2004-11 X-A-2	AAA		11/23/04		4,697	Pass Through		2034		2013		3,926		N/A
Sequoia 2004-12 X-A-1	AAA		12/22/04		14,453	Pass Through		2035		2013		12,732		N/A
Sequoia 2004-12 X-A-2	AAA		12/22/04		4,619	Pass Through		2035		2013		4,620		N/A
Sequoia 2005-1 X-A	AAA		01/27/05		9,669	Pass Through		2035		2013		8,491		N/A
Sequoia 2005-2 X-A	AAA		02/24/05		7,484	Pass Through		2035		2013		6,746		N/A
Sequoia 2005-3 X-A	AAA		04/28/05		8,183	Pass Through		2035		2013		7,774		N/A

Total Sequoia Issuance				$	357,124						$	186,018		4.31	%

Does not include Sequoia IO’s acquired by Redwood or Acacia

Table 21: ABS, CDO and Resecuritization Characteristics
Collateralized Debt Obligations and Other Resecuritizations — Acacia and SMFC (all $ in thousands)

Table 21
ABS Characteristics
Collateralized Debt Obligations and Other Resecuritizations — Acacia and SMFC
(all $ in thousands)


											Principal		Interest
CDO & Other				Original					Estimated		Outstanding		Rate At
Resecuritization	Debt	Issue		Issue			Stated		Callable		At June 30,		June 30,
Issuance	Rating	Date		Amount		Index	Maturity		Date		2005		2005
SMFC 2002A A1	AAA		04/30/02	$	64,761	1m LIBOR		2030		2005		—	NM
SMFC 2002A A2	AAA		04/30/02		15,861	1m LIBOR		2029		2005		—	NM
Acacia CDO 1 A	AAA		12/10/02		224,250	3m LIBOR		2018		2010		177,131		3.93	%
Acacia CDO 1 B	AA		12/10/02		45,000	3m LIBOR		2037		2010		45,000		4.65	%
Acacia CDO 1 C	BBB		12/10/02		15,750	3m LIBOR		2037		2010		15,750		6.05	%
SMFC 2002B I A1	AA		12/19/02		16,855	Fixed		2031		2005		644		5.43	%
SMFC 2002B I A2	A		12/19/02		18,274	Fixed		2031		2005		699		5.68	%
SMFC 2002B I A3	BBB		12/19/02		17,221	Fixed		2031		2005		659		6.38	%
SMFC 2002B I A4	BB		12/19/02		25,133	Fixed		2031		2005		962		6.75	%
SMFC 2002B II A1	AA		12/19/02		15,517	Fixed		2039		2005		767		4.82	%
SMFC 2002B II A2	A		12/19/02		18,345	Fixed		2039		2005		907		4.92	%
SMFC 2002B II A3	BBB		12/19/02		14,989	Fixed		2039		2005		741		5.35	%
SMFC 2002B II A4	BB		12/19/02		8,347	Fixed		2039		2005		413		6.00	%
Acacia CDO 2 A	AAA		05/13/03		222,000	3m LIBOR		2023		2011		204,260		4.02	%
Acacia CDO 2 B	AA		05/13/03		45,375	3m LIBOR		2038		2011		45,375		4.67	%
Acacia CDO 2 C	BBB		05/13/03		16,500	3m LIBOR		2038		2011		16,500		6.62	%
Acacia CDO 3 A	AAA		11/04/03		222,000	3m LIBOR		2038		2011		215,235		3.93	%
Acacia CDO 3 B	AA		11/04/03		45,750	3m LIBOR		2038		2011		45,750		4.55	%
Acacia CDO 3 C	BBB		11/04/03		16,500	3m LIBOR		2038		2011		16,500		6.75	%
Acacia CDO 4 A	AAA		04/08/04		229,400	3m LIBOR		2039		2012		229,077		3.50	%
Acacia CDO 4 B1	AA		04/08/04		45,300	3m LIBOR		2039		2012		45,300		3.97	%
Acacia CDO 4 B2	AA		04/08/04		2,000	Fixed		2039		2012		2,000		4.81	%
Acacia CDO 4 C1	BBB		04/08/04		13,700	3m LIBOR		2039		2012		13,700		5.97	%
Acacia CDO 4 C2	BBB		04/08/04		3,000	Fixed		2039		2012		3,000		6.81	%
Acacia CDO 5 A	AAA		07/14/04		222,500	3m LIBOR		2039		2012		222,404		3.61	%
Acacia CDO 5 B	AA		07/14/04		42,250	3m LIBOR		2039		2012		42,250		4.08	%
Acacia CDO 5 C	A		07/14/04		9,000	3m LIBOR		2039		2012		9,000		4.68	%
Acacia CDO 5 D	A		07/14/04		3,000	3m LIBOR		2039		2012		3,000		5.23	%
Acacia CDO 5 E	BBB		07/14/04		5,375	3m LIBOR		2039		2012		5,375		6.03	%
Acacia CDO 6 A1	AAA		11/09/04		222,000	3m LIBOR		2040		2012		221,874		3.61	%
Acacia CDO 6 A2	AAA		11/09/04		15,000	3m LIBOR		2040		2012		15,000		3.90	%
Acacia CDO 6 B	AA		11/09/04		27,000	3m LIBOR		2040		2012		27,000		4.05	%
Acacia CDO 6 C	A		11/09/04		6,500	3m LIBOR		2040		2012		6,500		4.60	%
Acacia CDO 6 D	A		11/09/04		3,000	3m LIBOR		2040		2012		3,000		5.25	%
Acacia CDO 6 E1	BBB		11/09/04		1,500	3m LIBOR		2040		2012		1,500		6.05	%
Acacia CDO 6 E2	BBB		11/09/04		7,000	Fixed		2040		2012		7,000		6.95	%
Acacia CDO 7 A	AAA		03/10/05		231,700	3m LIBOR		2045		2013		231,700		3.33	%
Acacia CDO 7 B	AA		03/10/05		28,100	3m LIBOR		2045		2013		28,100		3.62	%
Acacia CDO 7 C	A		03/10/05		6,000	3m LIBOR		2045		2013		6,000		4.22	%
Acacia CDO 7 D	BBB		03/10/05		16,200	3m LIBOR		2045		2013		16,200		5.64	%

Total Resecuritizations				$	2,207,953						$	1,926,273		3.93	%

Does not include ABS acquired by Redwood or Acacia

End