What is Redwood Trust, Inc.'s Shariah compliance score?

Redwood Trust, Inc.'s (RWT) compliance score is being calculated. Check HalalScreener.app for the latest AAOIFI screening results.

Does Redwood Trust, Inc. pass AAOIFI screening?

Redwood Trust, Inc. (RWT) does not pass AAOIFI Shariah screening. AAOIFI requires: (1) no primary involvement in prohibited activities like alcohol, gambling, or conventional banking, (2) debt-to-market-cap below 30% (RWT: 3484.3%), (3) interest-bearing deposits below 30% (RWT: 106.7%), and (4) prohibited income below 5% (RWT: 106.9%). HalalScreener provides free AAOIFI screening for 10,000+ stocks at halalscreener.app.

How much purification is needed for Redwood Trust, Inc. stock?

Redwood Trust, Inc. (RWT) has a non-permissible income ratio of 106.86%. Muslim investors should purify this percentage of any dividends received and capital gains realized from RWT shares by donating it to charity. HalalScreener's purification calculator at halalscreener.app/en/purification automates this calculation using the latest financial data.

Where can I screen Redwood Trust, Inc. for Shariah compliance for free?

HalalScreener (halalscreener.app) offers free Shariah compliance screening for Redwood Trust, Inc. (RWT) and 10,000+ other US-listed stocks, ETFs, and 100+ cryptocurrencies. The screening uses AAOIFI Standard No. 21 and shows all financial ratios transparently. No credit card or signup required for basic screening. HalalScreener also includes an AI Islamic Scholar for follow-up questions about RWT's compliance across different madhabs (Hanafi, Shafi'i, Maliki, Hanbali, Ja'fari).

RWT: Is Redwood Trust, Inc. Halal?

Redwood Trust, Inc.

NYSEReal EstateUS

$5.08

+6.95%

Market Cap: 636.1M

Compliance Status

Not Halal

Screened on Jul 18, 2026 · AAOIFI Standard 21

Non-Compliant

0Score

Is Redwood Trust, Inc. (RWT) halal? Not Halal. Based on AAOIFI screening, Redwood Trust, Inc. has involvement in prohibited business activities with a compliance score of 0/100 (Grade: F).

AvoidBorderlineClean

Business activity

Involved in prohibited business activities.

Failed

Company debt

Over the limit

How much the company borrows, compared to its total value. AAOIFI allows up to 30%.

3484.3% of 30.0% limit

What this means for you

Most scholars advise not holding RWT

It does not pass AAOIFI Shariah screening.

See halal alternatives from the same sector further down this page

About Redwood Trust, Inc.

Redwood Trust, Inc. is a specialized financial enterprise operating across the United States, managing its activities through three distinct divisions. Its Residential Mortgage Banking segment functions as a conduit, sourcing residential home loans from various third-party originators. These loans are then either sold, converted into securities, or incorporated into Redwood Trust's own investment portfolio. This division also utilizes derivative financial instruments to mitigate risks associated with these residential loans. The Business Purpose Mortgage Banking segment is dedicated to originating and acquiring loans tailored for business uses, including single-family rental and bridge loans. Similar to the residential segment, these are subsequently securitized, sold, or added to the company's investment holdings. Finally, the Investment Portfolio segment deploys capital into a diverse array of assets. This includes securities retained from its own residential and business purpose securitization efforts, as well as residential and smaller multifamily bridge loans. The company also invests in residential mortgage-backed securities issued by other entities, Freddie Mac K-Series multifamily loan securitizations, reperforming loan securitizations, servicer advance investments, home equity investments, and various other housing-related assets. Qualifying as a Real Estate Investment Trust (REIT) for federal tax purposes, Redwood Trust, Inc. commits to distributing at least 90% of its taxable income as dividends to its shareholders. The company was established in 1994 and maintains its headquarters in Mill Valley, California.

Sector: Real Estate · Industry: REIT - Mortgage

Shariah Compliance Status

AAOIFI Standard 21Updated Jul 18, 2026

Business Activity Screen

Failed

Checks if the business is involved in prohibited activities (alcohol, gambling, pork, conventional banking, etc.)

Prohibited industry: REIT - Mortgage

Compliance History

Not Halal, unchanged since May 2026.

No status changes recorded since we began tracking.

Tracked since May 2026. Updates automatically on each re-screen.

Fiscal: FY 2025Data source: FMP

Halal Alternatives in Real Estate

This stock is not Shariah-compliant. Here are halal alternatives from the same sector, ranked by compliance score:

HBNBA+

Hotel101 Global Holdings Corp. Class A Ordinary Shares

$5.85

+2.82%

GMREA+

Global Medical REIT Inc.

$35.74

-1.24%

MLPA+

Maui Land & Pineapple Company, Inc.

$17.21

+3.86%

NNNA+

NNN REIT, Inc.

$49.22

+3.80%

AHRA+

American Healthcare REIT, Inc.

$53.84

-1.43%

More Real Estate Stocks

PLD

Prologis, Inc.

B+

PSA

Public Storage

DLR

Digital Realty Trust, Inc.

Realty Income Corporation

SPG

Simon Property Group, Inc.

WELL

Welltower Inc.

Free · No credit card required

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Frequently Asked Questions

Is Redwood Trust, Inc. (RWT) halal to invest in?

Redwood Trust, Inc. (RWT) is rated Not Halal under AAOIFI Standard 21 screening. It fails either the business activity screen (primary involvement in prohibited sectors such as conventional banking, alcohol, or gambling) or one of the quantitative financial ratio thresholds. Muslim investors should avoid or exit this position.

Why did Redwood Trust, Inc. get a F compliance rating?

Redwood Trust, Inc. (RWT) received a grade of F (Non-Compliant) based on three AAOIFI Standard 21 financial ratios: debt-to-market-cap of 3484.3% (limit 30%); interest-bearing deposits of 106.7% (limit 30%); prohibited income of 106.86% (limit 5%). The grade reflects the margin of safety across all three ratios relative to their thresholds.

What could change Redwood Trust, Inc.'s Shariah verdict?

Redwood Trust, Inc.'s verdict is re-evaluated at each annual re-screen. Three events could change it: (1) the debt-to-market-cap ratio crossing 30%, typically from new debt issuance or a major drop in share price; (2) interest-bearing deposits exceeding 30% of market cap; or (3) prohibited revenue (alcohol, gambling, conventional finance, etc.) exceeding 5% of total revenue. Verdict flips are tracked in the compliance history section above.

How often is Redwood Trust, Inc. re-screened for Shariah compliance?

Redwood Trust, Inc. (RWT) is re-screened annually using the most recent full-year financial data from SEC filings. HalalScreener also triggers an on-demand re-screen whenever the stored data is more than 7 days old, ensuring the ratios reflect the latest available financial statements. Last screened: Jul 18, 2026.

Screened according to AAOIFI Standard No. 21 · For informational purposes only. Consult a qualified Islamic finance advisor before investing.

Disclaimer: This screening is for informational purposes only and does not constitute financial, legal, or religious advice. Compliance is evaluated using AAOIFI financial standards (debt, deposits, and prohibited income ratios) and publicly available data. Ethical, political, social, or environmental considerations are outside the scope of this screening. Individual scholars and methodologies may differ. Always consult a qualified Islamic finance advisor before making investment decisions.