Origination/Lending

Thornburg Hit by $300 Million in Margin Calls

By: PAUL JACKSON
February 28, 2008

In a 10-K filing with the Securities and Exchange Commission filed on Thursday, ultra-prime mortgage lender Thornburg Mortgage Inc. said that it has been hit with margin calls on roughly $2.9 billion of Alt-A mortgage-backed securities held in its portfolio. The hit came as the company faced what it called a “sudden adverse change in mortgage market conditions” beginning on February 14.

The lender said it had met about $300 million of the margin calls since that time, leaving the company with “reduced readily available liquidity” for any future margin calls it faces.

Cue up the next round of the mortgage industry liquidity crisis, it seems. Thornburg, for its part, seems unsure about what lies ahead.

“Given the current uncertainty regarding these market conditions, we are unable to offer any additional factual information on the situation and how it will impact us other than to disclose what we are currently seeing in the mortgage market,” the company said it its regulatory filing.

Earlier this month, the Santa Fe, New Mexico-based lender said it returned to profitability during the fourth quarter of 2007, posting earnings of $64.8 million. The company had lost $1.1 billion during the quarter as it dealt with the crippling effects of the first wave of the mortgage credit crunch.

Disclosure: The author held no positions in Thornburg when this story was originally published. HW reporters and writers follow a strict disclosure policy, the first in the mortgage trade.


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Events

2008 Aug 12

Western States Loan Servicing Conference

Annual servicing industry conference hosted by the CMBA; usually well attended on a national level.

2008 Aug 23

Executive Summit on Mortgage Fraud

High-level conference focused on quantifying and managing mortgage fraud. Speakers to include execs from OFHEO, FBI, Fannie, Freddie.

2008 Sep 10 -- 2008 Sep 12

USFN Fall Default Servicing Seminar

Well-attended twice-yearly event series for servicers; closed event for USFN members and invited servicers only.

2008 Sep 17

Five Star Conference

Default and REO industry conference, hosted by trade publication DS News. Heavily attended by REO agents.

2008 Oct 19

MBA Annual Convention & Expo

The annual conference for MBA members and affiliates, and the largest industry event each year.