Exhibit 99.1

REDWOOD TRUST ANNOUNCES DIVIDEND INCREASE OF 14% FOR THE FIRST QUARTER OF 2021

MILL VALLEY, CA – Wednesday, March 10, 2021 – Redwood Trust, Inc. (NYSE: RWT) today announced that its Board of Directors authorized the declaration of a 14% increase in the company’s regular quarterly common stock dividend to $0.16 per share for the first quarter of 2021, up from $0.14 per share for the fourth quarter of 2020. This marks the company's 87th consecutive quarterly dividend. The first quarter 2021 dividend is payable on March 31, 2021 to stockholders of record on March 24, 2021.

"We are pleased to increase the dividend we pay to shareholders. We remain committed to delivering a stable to growing dividend while continuing to strategically deploy capital going forward," said Christopher J. Abate, Chief Executive Officer of Redwood Trust.

About Redwood Trust

Redwood Trust, Inc. (NYSE: RWT) is a specialty finance company focused on several distinct areas of housing credit. Our operating platforms occupy a unique position in the housing finance value chain, providing liquidity to growing segments of the U.S. housing market not served by government programs. We deliver customized housing credit investments to a diverse mix of investors, through our best-in-class securitization platforms; whole-loan distribution activities; and our publicly-traded shares. Our consolidated investment portfolio has evolved to incorporate a diverse mix of residential, business purpose and multifamily investments. Our goal is to provide attractive returns to shareholders through a stable and growing stream of earnings and dividends, capital appreciation, and a commitment to technological innovation that facilitates risk-minded scale. Since going public in 1994, we have managed our business through several cycles, built a track record of innovation, and a best-in-class reputation for service and a common-sense approach to credit investing. Redwood Trust is internally managed, and structured as a real estate investment trust ("REIT") for tax purposes. For more information about Redwood, please visit our website at redwoodtrust.com.

Forward-Looking Statements: This press release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including statements related to Redwood's 2020 regular dividends and ability to deliver stable, attractive dividends while deploying capital. Forward-looking statements involve numerous risks and uncertainties. Our actual results may differ from our beliefs, expectations, estimates, and projections and, consequently, you should not rely on these forward-looking statements as predictions of future events. Forward-looking statements are not historical in nature and can be identified by words such as "anticipate," "estimate," "will," "should," "expect," "believe," "intend," "seek," "plan" and similar expressions or their negative forms, or by references to strategy, plans, or intentions. These forward-looking statements are subject to risks and uncertainties, including, among other things, those described in our Annual Report on Form 10-K for the year ended December 31, 2020 under the caption "Risk Factors." Other risks, uncertainties, and factors that could cause actual results to differ materially from those projected may be described from time to time in reports we file with the Securities and Exchange Commission, including reports on Forms 10-Q and 8-K. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

CONTACT

Lisa Hartman – SVP, Head of Investor Relations

Phone: 866-269-4976

Email: [email protected]