Industry News

Thornburg Mortgage ups Q3 loss to $1.1 billion

Sales by third parties add $236 million to previous estimates

Thornburg Mortgage Inc. said Tuesday that its third-quarter losses on sales of securities backed by adjustable-rate mortgages totaled $1.099 billion, $236 million more than previous estimates. The increase was due primarily to receipt of the actual sales price on asset liquidations conducted by third-party financing counterparties, as opposed to sales conducted by the company itself, Thornburg officials said in a press release. Losses also increased because Thornburg sold an additional $1.6 billion in mortgage-backed securities (MBS) beyond the $20.4 billion estimate the company issued Aug. 17. Thornburg also reported a $6 million impairment charge on one mortgage-backed security backed by pay-option adjustable-rate mortgages (ARMs). "It's important to note that the earlier loss estimates previously announced by the company were based on the best information available to us at the time," Thornburg President and Chief Executive Officer Larry Goldstone said in a statement...