CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2012		Jun. 30, 2011
Cash Flows From Operating Activities:
Net income attributable to Redwood Trust, Inc.	$ 49,990		$ 27,604
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Amortization of premiums, discounts, and securities issuance costs, net	(12,953)		(17,462)
Depreciation and amortization of non-financial assets	1,612		515
Purchases of loans - mortgage banking	(998,906)
Proceeds from sales of loans - mortgage banking	754,175
Principal payments on loans - mortgage banking	4,102
Net settlements of derivatives - mortgage banking	(17,160)
(Reversal of) provision for loan losses	(1,065)		4,389
Non-cash equity award compensation	5,217		4,806
Market valuation adjustments, net	12,959		16,887
Realized gains, net	(33,452)		(9,699)
Net change in:
Accrued interest receivable	(916)		(199)
Deferred tax asset			3,487
Other assets	215		123
Accrued interest payable	9,655		6,851
Accrued expenses and other liabilities	6,951		(4,351)
Net cash (used in) provided by operating activities	(219,576)		32,951
Cash Flows From Investing Activities:
Purchases of loans	(95,508)		(293,445)
Proceeds from sales of loans	386,143	[1]	1,857	[1]
Principal payments on loans	287,996		181,840
Purchases of real estate securities	(409,788)		(46,498)
Proceeds from sales of real estate securities	101,662		85,701
Principal payments on real estate securities	95,536		88,677
Proceeds from deconsolidation	6,386
Net increase in restricted cash	(3,566)		(11,149)
Net cash provided by investing activities	368,861		6,983
Cash Flows From Financing Activities:
Proceeds from borrowings on short-term debt	707,051
Repayments on short-term debt	(679,688)		(3,246)
Proceeds from issuance of asset-backed securities	96		281,456
Repayments on asset-backed securities issued	(322,000)		(214,950)
Deferred securities issuance costs			(1,695)
Net settlements of derivatives	(12,195)		(14,733)
Net proceeds from (payments for) issuance of common stock	292		(580)
Dividends paid	(40,498)		(40,250)
Change in noncontrolling interests			(12,896)
Net cash used in financing activities	(346,942)		(6,894)
Net (decrease) increase in cash and cash equivalents	(197,657)		33,040
Cash and cash equivalents at beginning of period	267,176		46,937
Cash and cash equivalents at end of period	69,519		79,977
Supplemental Disclosures:
Cash paid for interest	59,152		36,404
Cash paid for taxes	155		45
Dividends declared but not paid at end of period			19,640
Transfers from residential loans to real estate owned	$ 3,406		$ 5,966

[1] For the six months ended June 30, 2012, the proceeds from sales of loans included in investing activities relates to loans that were reclassified from loans held-for-investment to loans held-for-sale during the fourth quarter of 2011.