EXHIBIT 99.3 BROKER AND NOMINEE FORM REDWOOD TRUST, INC. DIVIDEND REINVESTMENT AND STOCK PURCHASE PLAN By Regular Mail: By Hand or Overnight Delivery: By Fax: - ---------------- ------------------------------ ------- Mellon Bank, N.A. Mellon Bank, N.A. (412) 236-8023 P.O. Box 750 4 Station Square, 3rd Floor Pittsburgh, PA 15230-0750 Commerce Court Pittsburgh, PA 15219 Instructions: - ------------- As provided in the Prospectus dated December ____, 1996 (the "Prospectus") relating to the Redwood Trust, Inc. ("Redwood") Dividend Reinvestment and Stock Purchase Plan (the "Plan"), this form is to be used by a bank, broker or other nominee making an optional cash investment under the Plan on behalf of one or more Beneficial Owner(s) (as defined in the Prospectus) whose shares are held in the name of a securities depository. The bank, broker or other nominee submitting this form hereby certifies that (a) the information contained herein is true and correct as of the date of this form; (b) a current copy of the Prospectus has been delivered to each Beneficial Owner on whose behalf the optional cash investment listed below is being transmitted; and (c) either (i) the amount of the optional cash investment listed below does not exceed $5,000 for each beneficial owner represented or (ii) this form is accompanied by a completed Request for Waiver form approved by Redwood relating to the applicable investment date. A new Broker and Nominee Form must be completed and submitted each month that an optional cash investment is submitted. For further information about the Plan, please call 1-800-333-4386. - ---------------------------------------------------------------------------------------------------------------------------- ___________________________________________________________ ___________________________________________________________ Date Title of Account to Which Shares are to be Credited ___________________________________________________________ ___________________________________________________________ Name of Depository Participant Submitting Payment Address ___________________________________________________________ ___________________________________________________________ Participant Number with Depository Tax I.D. Number ___________________________________________________________ ___________________________________________________________ Contact Phone ___________________________________________________________ Name of Depository ___________________________________________________________ ___________________________________________________________ Name of Beneficial Owners Represented Total Optional Cash Investment Amount Method of Payment: ____ Check ____ Money Order ____ Other* (Specify) ________________________________________ [__] FULL DIVIDEND REINVESTMENT -- *Payment by other than Check or Money Order requires Please apply the dividends on shares of the Company's Stock approval of Redwood registered in our name for the beneficial owner, held in our Plan account, or acquired with optional cash payments (except as otherwise designated in (3) below), to the purchase of additional shares of the Company's common stock. Signature [__] PARTIAL DIVIDEND REINVESTMENT -- ___________________________________________________________ Please apply the dividends on ___________ shares of the Name of Broker, Bank or Other Nominee Company's Stock registered in our name for the beneficial owner, held in our Plan account, or acquired with optional cash payments (except as otherwise designated in (3) below), to the purchase of additional shares of the Company's common stock. By:________________________________________________________ [__] OPTIONAL CASH PAYMENTS -- Name:______________________________________________________ Please enroll us on behalf of the beneficial owner in a Stock Purchase program account. Dividends on the Company's Title:_____________________________________________________ currently registered in our name for the beneficial owner will be paid to us (except as otherwise designated in (1) or (2) above), and dividends on Plan Shares acquired through optional cash payments will be: [__] paid directly to us. [__] enrolled in the Full Dividend Reinvestment program. [__] enrolled in the Partial Dividend Reinvestment program in the amount of ___________ shares. - ---------------------------------------------------------------------------------------------------------------------------------