CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2012	Mar. 31, 2011
Cash Flows From Operating Activities:
Net income attributable to Redwood Trust, Inc.	$ 30,463	$ 18,165
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization of premiums, discounts, and debt issuance costs, net	(6,622)	(9,520)
Depreciation and amortization of non-financial assets	944	257
Purchases of loans held-for-sale	(660,008)
Principal payments on loans held-for-sale	724
Proceeds from sales of loans held-for-sale	388,760
Provision for loan losses	274	2,807
Non-cash equity award compensation	2,256	2,074
Market valuation adjustments, net	3,701	5,740
Realized gains, net	(20,985)	(3,864)
Net change in:
Accrued interest receivable	(1,062)	76
Other assets	20,073	3,529
Accrued interest payable	5,101	3,892
Accrued expenses and other liabilities	2,715	(5,947)
Net cash (used in) provided by operating activities	(233,666)	17,209
Cash Flows From Investing Activities:
Purchases of loans held-for-investment	(26,888)	(112,742)
Principal payments on loans held-for-investment	155,301	93,292
Proceeds from sales of loans held-for-sale	364,536	1,857
Purchases of available-for-sale securities	(259,697)	(13,223)
Proceeds from sales of available-for-sale securities	49,511	48,072
Principal payments on available-for-sale securities	28,004	31,234
Purchases of trading securities	(21,176)
Proceeds from sales of trading securities	859	12,841
Principal payments on trading securities	12,199	15,080
Proceeds from deconsolidation	3,220
Net decrease in restricted cash	(849)	(10,459)
Net cash provided by investing activities	305,020	65,952
Cash Flows From Financing Activities:
Proceeds from borrowings on short-term debt	477,389
Repayments on short-term debt	(464,480)	(44,137)
Proceeds from issuance of asset-backed securities	96	280,111
Repayments on asset-backed securities issued	(164,740)	(110,896)
Deferred securities issuance costs		(1,695)
Net settlements of derivatives	(16,981)	(4,916)
Net proceeds from issuance of common stock	(24)	170
Dividends paid	(20,232)	(20,121)
Change in noncontrolling interests		(8,338)
Net cash (used in) provided by financing activities	(188,972)	90,178
Net (decrease) increase in cash and cash equivalents	(117,618)	173,339
Cash and cash equivalents at beginning of period	267,176	46,937
Cash and cash equivalents at end of period	149,558	220,276
Supplemental Disclosures:
Cash paid for interest	30,068	16,833
Cash paid for taxes	15	18
Dividends declared but not paid at end of period		19,535
Transfers from residential loans to real estate owned	$ 2,606	$ 2,396