Redwood Trust, Inc. is preparing a bond offering of at least $405 million backed by residential mortgages for a market in which lending is often dcescribed as too tight, Dow Jones Newswires reports.

Redwood had two smaller mortgage-backed issues last year. Dow Jones based its report on bond-marketing materials it said it had obtained.

Thursday, Redwood announced that Brett Nicholas, previously chief investment officer, had been named president, and Fred Matera is taking the CIO post.

Dow Jones quoted David Akre, founder of the advisory firm Whole Loan Capital and a former real estate investment trust executive, as saying, "I think 2012 will be a turning point for mortgage finance. Home prices should bottom out as the economy firms, the future of (Fannie Mae and Freddie Mac) will begin to get focused, and there will be more private mortgage finance activity."