New Firm to Invest in Agency RMBS
An investment firm and a real estate investment trust announced plans to merge and invest in agency securities.

A subsidiary of ARMOUR Residential REIT Inc. and Enterprise Acquisition Corp. will merge in an all-stock transaction, a press release today said.

The $250 million deal, which is subject to approval by shareholders and warrant holders of Enterprise, is expected to close in the fourth quarter.
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PennyMac Plans IPO
PennyMac plans an initial public offering for a newly created entity that will invest in residential assets. The company plans to operate as a real estate investment trust.

Flurry of Florida Mergers
As is the case with the temperature, mortgage-related mergers in Florida are heating up -- with four deals closed or announced since last month. One deal involved a real estate investment trust. Merger transactions were also identified in three other states.

Over 100 Laid Off at Thornburg
More than 100 employees were laid off as Thornburg Mortgage Inc. winds down operations.

Thornburg to Liquidate
Thornburg Mortgage Inc. said today that it planned to file for bankruptcy and liquidate its assets.

Some Firms Saved by Mergers
Mergers have picked up steam as several mortgage companies -- including a real estate investment trust -- teeter on the brink of insolvency. Some of the mergers are forcing changes at the top of the executive ranks. Meanwhile, losses continue to pound financial firms -- forcing regulator actions at some.

Volatile Banking Sector Reshapes
As capital continued to be wiped out and dozens of small banks were hit with regulatory orders, some financial institutions have been approved to participate in the government's capital purchase plan. One mortgage company is shedding its real estate investment trust status, another is shutting down its commercial operations and a third will be acquired by a bank.

Banks Face Mergers, Regulatory Orders
A new real estate investment trust is being launched, an order was issued against a bank officer accused of mortgage fraud and Fannie Mae and Freddie Mac faced grand jury subpoenas and securities regulatory inquiries. Meanwhile, dozens of other banks faced a host of regulatory orders and a growing number of institutions face mergers.

Struggling to Survive
More financial institutions revealed their exposure to investments in the government sponsored enterprises -- with two warning that their capital standing would be impaired. The collapse in value of some Fannie Mae securities have prompted a class action against several investment bankers tied to the offering. Impac Mortgage Holdings reported a significantly lower first-half loss.

More Thornburg Warnings
Thornburg Mortgage Inc. paints a bleak picture of the current state of the mortgage market and its own ability to continue as a going concern. The jumbo lender has stopped originating new business, faced massive downgrades on its mortgage-backed securities and been hit with ongoing margin calls.