Thornburg reported earnings yesterday and here are the results: Second-quarter profit rose to $412.3 million, or 84 cents per share, from $83.4 million, or 66 cents, a year earlier. A large gain related to a financing transaction offset a $209.6 million write-down of mortgages. Thornburg in June reported a $3.31 billion first-quarter loss. Thornburg said
Thornburg
Where we left off with Thornburg on August 8, the message from Thornburg insiders was “stay tuned for the end of August.” We’re nearing that time, and according to a press release yesterday, it seems the company might be coming out of the woods. A writer for independent investor site SeekingAlpha summarized the very complex
A few weeks ago Thornburg Mortgage began an exchange offer for four classes of its preferred stock, as part of its efforts to remain in business. (Preferred stock holders would receive $5 in cash and 3.5 shares of common stock for each share of preferred stock tendered by August 20th.) The exchange offer is being
TREASURIES UP AS FANNIE/FREDDIE FREEFALL Yesterday shares of Fannie Mae and Freddie Mac both plummeted after an analyst with Lehman Brothers wrote in a report that the two companies may need to raise billions of dollars if accounting rules (FAS 140) are changed. Most experts feel that they will not have to come up with
RESPA PRIMER “Here in California why is it that a real estate agent (through their broker of record), can refer business to another, and ask/get a referral fee, while, for a loan agent, we cannot refer business to another loan agent, and get a referral fee, even if it was paid to our broker of
Last weekend I took my daughter hot-air ballooning for a present for her graduation from 8th grade – and because I’d always wanted to do it. Aside from getting yelled at by the pilot for dropping my gum in someone’s pool from 500 feet, we had an enjoyable time. That is, until the others found
It is said that 90% of reverse mortgages are HECM’s (Home Equity Conversion Mortgage). Will the meltdown in home values affect holders of HECM FHA-backed reverse mortgages? HECMs come with a Federal Housing Administration guarantee that protects the lender and the homeowner from falling property values. Therefore, if the loan balance exceeds the value of
Some mortgage bankers leave the business and start new companies. Others, such as this well known hedging expert from the 1980’s and ‘90’s, become fugitives. In addition, Auerbach has two boys in the mortgage banking biz. Signs of super conforming price stability!? The Fannie Mae desk has been offering jumbo-conforming fixed rate whole loan pricing
Ok… April Fools – at least for two of them! There haven’t been any press releases that John Stumpf & Wells Fargo have been asked to participate in a Fed-assisted bail out of any particular large lender. But who knows? There have been rumors of Wachovia, WaMu, and SunTrust – but they are only that:
Why are some investors putting restrictions on FHA loans that HUD doesn’t have? If the United States government stands behind (issues) debt, why wouldn’t the rates be very low? Many investors have put more restrictive guidelines in place, and it’s not new to put overlays on guidelines on loans that Fannie or Freddie will buy,
Yesterday Thornburg Mortgage announced, in a filing with the SEC, it will allow an investor to acquire up to $300 million worth of stock in the company’s offering of $1 billion of convertible debt. The purchaser would have to provide assurances that the ownership would not jeopardize the company’s REIT qualification. The news is a
Thornburg Mortgage, a key player in A-paper jumbo lending, has secured new lines of credit from Bear Stearns, Citigroup, Credit Suisse, Greenwich Capital, Royal Bank of Scotland, and UBS in order to continue buying loans from mortgage bankers and funding wholesale loans. These banks have also agreed to freeze any margin calls on Thornburg until
The last time mortgage rates were this bad compared to Treasury rates, dinosaurs roamed the earth…and this morning it continues. After Jobless Claims fell 24,000 to a much lower-than-expected 351,000, we find the 10-yr at 3.67% but 30-yr mortgage prices worse by .50 in price. Fixed income investors need to be reminded why they should