Filed Pursuant to Rule 424(b)(3)
                                                  Registration No. 333-112334-01


                         SEQUOIA MORTGAGE TRUST 2004-4

                       Mortgage Pass-Through Certificates

                       SEQUOIA RESIDENTIAL FUNDING, INC.
                                   Depositor

                                  May 26, 2004




                  SECURITY                            PROSPECTUS SUPPLEMENT                  TOTAL GROSS PROCEEDS OF 5/24/04
                                                                                                        OFFERING
                                                                                        

        Sequoia Mortgage Trust 2004-4                  Dated April 14, 2004
            Class X-1 Certificate                Risk Factors Begin on Page S-10                         $9,823,289








     The above referenced securities are being sold by Redwood Trust, Inc.,
parent of the  Depositor,   at  the  price  set  forth  above  to  Morgan
Stanley  &  Co. Incorporated,  pursuant to an  Underwriting  Agreement dated as
of May 24, 2004, among Redwood Trust, Inc., RWT Holdings, Inc. and Sequoia
Residential Funding, Inc. and Morgan Stanley & Co. Incorporated.

                                 Company Contact
                                John Isbrandtsen
                                 (415) 389-7373
                        john.isbrandtsen@redwoodtrust.com

The  prospectus  supplement  listed  in the  table  above  should be read in its
entirety by anyone  considering an investment in the Securities being offered by
Redwood  Trust,  Inc.  Consider  carefully  the risk  factors in the prospectus
supplement listed above, which risk factors begin on the page listed above.

The  investments  referred  to  above  are  not  insured  or  guaranteed  by any
governmental agency. Offers of these Securities are made by prospectus.  Neither
the Securities and Exchange  Commission nor any state securities  commission has
approved  or  disproved  these   securities  or  determined  if  the  prospectus
supplement listed above or this prospectus  supplement are accurate or complete.
Any representation to the contrary is a criminal offense.

                          Supplement dated May 26, 2004
                to the Prospectus Supplement dated April 14, 2004