Industry News

Management, board changes as Luminent Mortgage reorganizes

Future-Proof: Navigate Threats, Seize Opportunities at ICNY 2018 | Jan 22-26 at the Marriott Marquis, Times Square, New York

Luminent Mortgage Capital Inc. said the company's chief financial officer will leave the company at the end of the year rather than making the move from San Francisco to a new headquarters in Philadelphia. Christopher Zyda declined an offer to relocate to Philadelphia, Luminent said in a press release, and will be replaced as CFO on Jan. 1 by Karen Chang, currently the company's vice president and controller. A real estate investment trust (REIT), Luminent does not originate or service loans, but buys alt-A adjustable-rate mortgage (ARM) loans, some that are negatively amortizing, and mortgage-backed securities with ratings below AAA. Although Luminent once assured investors its loan portfolio had "virtually no exposure to the subprime sector," troubles in the credit market have forced the company to take drastic steps. On Aug. 6, Luminent was unable to roll over $168 million of commercial paper financing. Eight of Luminent's creditors declared the company in default, tri...