Thornburg Mortgage, one of the premier jumbo ARM and Alt-A mortgage lenders, has at least one analyst raising the specter of bankruptcy as the lender failed to meet its latest round of margin calls (to the tune of $270 million).
Thornburg said in a regulatory filing it is facing margin calls because the value of the alt-A mortgage-backed securities has plummeted between 10% and 15% since the end of January. The margin calls come amid “a sudden adverse change in mortgage market conditions in general” that began on Feb. 14, Thornburg said in the filing.
Thornburg doesn’t do subprime and is well known throughout the Bay Area for its single-minded focus on wealthy creditworthy borrowers.
∙ Thornburg Hasn’t Met $270 Million in New Margin Calls [Bloomberg]
∙ JustQuotes: Signs Of Some (Prime) Liquidity In The Mortgage Market [SocketSite]
∙ Mortgage woes force Thornburg to pay $300M [CNNMoney]