With Thornburg Mortgage (TMA-stock symbol), one of America's premiere jumbo lender's on the brink of collapsing that doesn't bode well for the lending industry. Thornburg Mortgage is one of the best run mortgage companies in this country and when the lending crisis brings a company like this to it's knees, the real estate and lending industry needs to take notice.
The company said this past week, "difficult market conditions that have resulted in a significant deterioration of prices of mortgage-backed collateral, combined with a liquidity position under unprecedented pressure from increased margin calls by its reverse repurchase agreement lenders, a portion of which the company has been unable to meet, have raised substantial doubt about the company's ability to continue as a going concern."
"The mortgage financing market's complete inability to differentiate and appropriately value superior AAA-/AA-rated mortgage securities from all other mortgage assets is as unprecedented as it is frustrating," Goldstone said. "Our portfolio of mortgage-backed securities has exhibited exceptional credit performance and comprises loans that are among the most solid in the industry. Quite simply, the panic that has gripped the mortgage financing market is irrational and has no basis in investment reality."
As a Realtor here in Orange County and Laguna Niguel CA I know that it is critical to have the best companies that services our industry be a survivor. I hope that the capital markets realize this and help keep Thornburg Mortgage in business. They are a top quality lender that the housing industry desperately needs. I will keep an eye on Thornburg for many reasons as a gage to the health of our industry.
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