FORM 4
Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP OF SECURITIES

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934 or Section 30(h) of the Investment Company Act of 1940
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(Print or Type Responses)
1. Name and Address of Reporting Person *
Hughes Martin S
   2. Issuer Name and Ticker or Trading Symbol
REDWOOD TRUST INC [RWT] 		5. Relationship of Reporting Person(s) to Issuer
(Check all applicable)
__X__ Director _____ 10% Owner
__X__ Officer (give title below) _____ Other (specify below)
Chief Executive Officer
(Last)
(First)
(Middle)
1 BELVEDERE PLACE, SUITE 300		 3. Date of Earliest Transaction (Month/Day/Year)
03/01/2016
(Street)

MILL VALLEY, CA 94941		 4. If Amendment, Date Original Filed(Month/Day/Year)
 6. Individual or Joint/Group Filing(Check Applicable Line)
_X_ Form filed by One Reporting Person
___ Form filed by More than One Reporting Person
(City)
(State)
(Zip)
Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
1.Title of Security
(Instr. 3)		 2. Transaction Date (Month/Day/Year) 2A. Deemed Execution Date, if any (Month/Day/Year) 3. Transaction Code
(Instr. 8)		 4. Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4 and 5)		 5. Amount of Securities Beneficially Owned Following Reported Transaction(s)
(Instr. 3 and 4)		 6. Ownership Form: Direct (D) or Indirect (I)
(Instr. 4)		 7. Nature of Indirect Beneficial Ownership
(Instr. 4)
Code V Amount (A) or (D) Price
Common Stock 03/01/2016   P   5,000 A $ 11.9865 518,384 D  
Common Stock 03/01/2016   P   5,000 A $ 12.0214 523,384 D  
Common Stock 03/01/2016   P   5,000 A $ 12.0487 528,384 D  
Common Stock 03/01/2016   P   5,000 A $ 12.1742 533,384 D  
Common Stock               5,000 I by Spouse

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Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security
(Instr. 3)		 2. Conversion or Exercise Price of Derivative Security 3. Transaction Date (Month/Day/Year) 3A. Deemed Execution Date, if any (Month/Day/Year) 4. Transaction Code
(Instr. 8)		 5. Number of Derivative Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4, and 5)		 6. Date Exercisable and Expiration Date
(Month/Day/Year)		 7. Title and Amount of Underlying Securities
(Instr. 3 and 4)		 8. Price of Derivative Security
(Instr. 5)		 9. Number of Derivative Securities Beneficially Owned Following Reported Transaction(s)
(Instr. 4)		 10. Ownership Form of Derivative Security: Direct (D) or Indirect (I)
(Instr. 4)		 11. Nature of Indirect Beneficial Ownership
(Instr. 4)
Code V (A) (D) Date Exercisable Expiration Date Title Amount or Number of Shares

Reporting Owners

Reporting Owner Name / Address Relationships
 Director  10% Owner  Officer  Other
Hughes Martin S
1 BELVEDERE PLACE
SUITE 300
MILL VALLEY, CA 94941		   X     Chief Executive Officer  

Signatures

 /s/ Attorney-In-Fact: Andrew P. Stone For: Martin S. Hughes   03/01/2016
**Signature of Reporting Person Date

Explanation of Responses:

* If the form is filed by more than one reporting person, see Instruction 4(b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
 
Remarks:
As previously reported, on December 21, 2015, in connection the distribution/conversion of Performance Stock Units to common stock, the Reporting Person sold in the open market 1,381 shares of common stock pursuant to a 10b5-1 trading plan at a weighted average sale price of $13.42 per share. All proceeds of the December 21, 2015 sale were remitted by the Reporting Person to federal and/or state income tax agencies as additional income tax withholdings and/or estimated income tax payments arising from the distribution/conversion of the Performance Stock Units. In connection with the open market purchases by the Reporting Person of common stock reported on this Form 4, and pursuant to the requirements of Section 16(b) of the Securities Exchange Act of 1934, as amended, the Reporting Person disgorged to Redwood Trust, Inc. a total of $1,980 (rounded up to the nearest dollar), which represents "short-swing" profit from the matching of the December 21, 2015 sale of common stock and the purchase of common stock reported on this Form 4.

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