5

THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM MARCH 31, 1996 QUARTERLY REPORT ON FORM 10-Q AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.

0000930236 REDWOOD TRUST, INC. 1,000 U.S. DOLLARS 3-MOS DEC-31-1996 JAN-01-1996 MAR-31-1996 1,000 9,705 566,392 4,496 0 0 581,313 0 0 581,313 513,167 0 0 0 73,981 (5,835) 581,313 0 9,131 0 0 643 332 6,202 1,954 0 0 0 0 0 1,954 0.32 0.32