Filed Pursuant to Rule 424(b)(3)
Registration No. 333-118832-01 and
Registration No. 333-118832-10

SUPPLEMENT dated February 1, 2006
(To Prospectus Supplement Dated January 26, 2006
to Prospectus Dated September 17, 2004)

$296,241,100 (Approximate)

SEQUOIA ALTERNATIVE LOAN TRUST

Mortgage Pass-Through Certificates, Series 2006-1

RWT Holdings, Inc., Sponsor and Seller

Sequoia Residential Funding, Inc., Depositor

Sequoia Alternative Loan Trust 2006-1, Issuing Entity

__________________

     Notwithstanding anything to the contrary on page S-1 of the accompanying prospectus supplement, (i) the initial Class Principal Amount of the Class A-1 Certificates is $237,930,000 and (ii) the initial Class Principal Amount of the Class A-2 Certificates is $41,000,000. Accordingly, rows one and two of the table on page S-1 in the accompanying prospectus supplement are hereby deleted and replaced with the following:

	Initial Class		Initial		Interest				Initial
	Principal		Interest		Rate		Principal		Certificate Ratings
Class	Amount(1)		Rate(2)		Formula		Type	Interest Type	Moody's	S&P
A-1	$	237,930,000		6.206%		(3)	Super Senior	Variable Rate	Aaa	AAA
A-2	$	41,000,000		6.206%		(3)	Senior Support	Variable Rate	Aaa	AAA

     Capitalized terms used herein are as defined in the accompanying prospectus supplement.