Industry News

Thornburg Mortgage stops accepting interest-rate locks

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Jumbo lender Thornburg Mortgage Inc. says it won't make a 68-cents-per-share payment to shareholders today as scheduled because of a "sudden and unprecedented decline" in the market price of its mortgage securities. The decline began on Aug. 9 and prompted an increase in margin calls by the Santa Fe-based lender's creditors, the company said in a press release explaining the decision. Thornburg Mortgage said it has also experienced delays in its ability to fund loans, prompting the company to stop accepting new requests to lock in rates for four days. "We regret having to take these steps, but present market conditions have placed unprecedented restrictions on our industry and on us that have forced this change in policy," the company said in a memo to lending partners that was posted on IndyMac Bank's company blog. "Due to the fact that very few lenders are currently accepting locks, Thornburg Mortgage is being inundated with lock requests." Organized as a real estate...