Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	Sep. 30, 2012		Dec. 31, 2011
ASSETS
Residential loans (includes $377,393 and $2,169 at fair value)	$ 3,494,562		$ 4,194,885
Commercial loans (includes $12,150 and $12,129 at fair value)	298,220		169,855
Real estate securities, at fair value	1,312,347		981,837
Cash and cash equivalents	39,384		267,176
Total earning assets	5,144,513		5,613,753
Restricted cash	42,546		14,987
Accrued interest receivable	16,079		15,840
Derivative assets	3,424		2,373
Deferred securities issuance costs	6,284		8,083
Other assets	84,009		88,262
Total Assets	5,296,855	[1]	5,743,298	[1]
Liabilities
Short-term debt	522,214		428,056
Accrued interest payable	6,494		8,134
Derivative liabilities	108,555		127,564
Accrued expenses and other liabilities	41,233		8,105
Long-term debt	139,500		139,500
Total liabilities	4,247,003	[1]	4,850,714	[1]
Equity
Common stock, par value $0.01 per share, 125,000,000 shares authorized; 81,526,321 and 78,555,908 issued and outstanding	815		786
Additional paid-in capital	1,739,841		1,697,979
Accumulated other comprehensive income (loss)	73,872		(13,151)
Cumulative earnings	590,974		501,283
Cumulative distributions to stockholders	(1,355,650)		(1,294,313)
Total equity	1,049,852		892,584
Total Liabilities and Equity	5,296,855		5,743,298
Asset-backed Securities
Liabilities
Asset-backed securities issued (includes $255,411 and $209,381 at fair value)	$ 3,429,007		$ 4,139,355

[1] Our consolidated balance sheets include assets of consolidated variable interest entities ("VIEs") that can only be used to settle obligations of these VIEs and liabilities of consolidated VIEs for which creditors do not have recourse to the primary beneficiary (Redwood Trust, Inc.). At September 30, 2012 and December 31, 2011, assets of consolidated VIEs totaled $3,718,551 and $4,408,350, respectively, and liabilities of consolidated VIEs totaled $3,486,728 and $4,209,124, respectively. See Note 4 for further discussion.