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                                                                      EXHIBIT 23

                       CONSENT OF INDEPENDENT ACCOUNTANTS

We hereby consent to the incorporation by reference in the registration
statements on Form S-3 (Nos. 33-97398, 333-25643 and 333-18061) and on Form
S-8/S-3 (No. 333-20253) of our report dated February 21, 2000, appearing on page
F-23 of this Form 10-K relating to the consolidated financial statements of
Redwood Trust, Inc. and Subsidiary, and our report dated February 21, 2000
appearing on page F-36 of this Form 10-K relating to the consolidated financial
statements of RWT Holdings, Inc. and Subsidiaries.

/s/ PricewaterhouseCoopers LLP
San Francisco, California
March 15, 2000