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| Nonconforming lender Thornburg Mortgage Inc. has boosted its liquidity and is back on its feet originating loans again.
The real estate investment trust announced today it successfully securitized $1.44 billion in prime hybrid adjustable-rate mortgages on Friday. Approximately $1.37 billion in warehouse lines were paid down with the proceeds. Thornburg did the deal through a collateralized mortgage debt transaction — a structure it plans to utilize more frequently in place of reverse repurchase financing, according to the statement. About 57 percent of the Santa Fe, N.M.-based company’s mortgage assets were financed this way as of Aug. 17. Last week, Thornburg announced it raised $500 million through a cumulative convertible redeemable preferred stock offering. Those funds were used to improve liquidity, purchase mortgage-backed securities and restart loan originations — which the company halted in the middle of last month. Larry Goldstone, president of Thornburg, told CNBC last week the company had started originating loans on a limited basis and the liquidity situation was much more comfortable. Today the jumbo lender stated it hopes to increase the pace of loan fundings. “I think there’s a lot of confusion. The credit crisis relates to credit quality on loans, rising delinquencies and subprime loans,” Goldstone said in response to a question about whether the worst of the mortgage crisis is behind us. “We’re having a difficult time financing triple ‘A’ rated assets because of the liquidity issues and the fears in the marketplace.” Goldstone suggested the Federal Reserve is not exhibiting enough leadership or concern about the credit crisis. A lawsuit filed against Thornburg by Wachovia Corp. for $5.1 million over the company’s failure to honor derivatives contracts was dismissed last week following Thornburg’s payment in full of the debt. Shares of Thornburg, which had fallen to $7.49 on Aug. 14, were trading at $12.15 near midday. |
