5

THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM SEPTEMBER 30, 1996 QUARTERLY REPORT ON FORM 10-Q AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.

0000930236 REDWOOD TRUST 1,000 U.S. DOLLARS 9-MOS DEC-31-1996 JAN-01-1996 SEP-30-1996 1,000 14,599 1,376,743 10,781 0 0 1,403,478 0 0 1,403,478 1,239,961 0 0 29,712 138,172 (4,367) 1,403,478 0 41,403 0 0 2,514 1,324 29,724 7,841 0 0 0 0 0 7,841 0.90 0.89