traded as grey market thmrq industry mortgage lender fate filed for chapter 11 bankruptcy founded 1993 1 defunct april 1 2009 2009 04 01 headquarters santa fe new mexico united states area served united states key people garrett thornburg chairman larry a. goldstone president and ceo net income us 1.55 billion 2007 2 total assets us 36.27 billion 2007 2 number of employees 400 2007 2 website www.thornburgmortgage.com thornburg mortgage was a united states real estate investment trust reit that originated acquired and managed mortgages with a specific focus on jumbo and super jumbo adjustable rate mortgages . the company experienced financial difficulties related to subprime mortgage crisis in 2007 and filed for bankruptcy on april 1 2009 . 3 it was founded in 1993 and prior to its failure it was a publicly traded corporation headquartered in santa fe new mexico . it got caught up in the financial crisis of 2007 2010 when it moved from a passive reit to wholesale origination of mortgages in 2006 . contents 1 history 1.1 2007 financial difficulties 1.2 2008 1.3 2009 2 business model 3 references history edit the company was founded in 1993 by garrett thornburg & larry a. goldstone . 1 4 thornburg mortgage s headquarters in santa fe new mexico were built to be eco friendly . the company s business model was originally a conventional passive mortgage reit but in 1999 thornburg mortgage branched out to originating mortgages 5 working with other financial institutions a.k.a. correspondent origination . in 2001 it started selling directly to consumers direct retail origination and moved into wholesale origination in 2006 . 6 2007 financial difficulties edit on august 7 an analyst with deutsche bank downgraded thornburg mortgage to sell based upon concerns that the company could be faced with increasing margin calls despite the high rating of its mortgage backed securities . 7 beginning august 9 these same securities experienced a sudden and unprecedented decline in value along with an increase in margin calls . 8 in response during the week beginning august 13 the company stopped accepting loan applications 9 sold us 20.5 billion of its mortgage backed securities portfolio in doing so incurring a capital loss of us 930 million mitigated the potential for margin calls by reducing its repurchase borrowings and delayed payment of a previously announced stock dividend from august 15 to september 17 . 10 the company s stock price closed 47 % lower when the delayed dividend payment was announced on august 14 but over the next few days regained most of those losses . 11 a couple of weeks later the company also raised us 500 million through a preferred share offering 12 a move described as a desperate attempt to stay afloat 13 and began accepting applications again . 2008 edit on march 7 the company announced that it would be restating its 2007 financial results and also that as of the previous day it had us 610 million in outstanding margin calls a much greater amount than cash available . 14 financial analysts speculated that the company may need to seek bankruptcy protection . 15 thornburg mortgage indicated on march 19 that it had reached an agreement with five of its creditors which stopped additional margin calls for one year but included several conditions the most urgent of which was to raise us 948 million within seven business days . 16 the five creditors were identified as bear stearns citigroup credit suisse royal bank of scotland and ubs 17 18 the company further confirmed that without the additional capital it may have to file for bankruptcy protection . 19 the funding was to be raised through the sale of convertible notes . 16 having initially been scheduled for march 20 the company pushed back the sale until march 24 . 20 2009 edit on april 1 2009 thornburg mortgage announced that it would officially cease operations and enter chapter 11 bankruptcy . after the sale of all remaining assets it would no longer exist as a going concern . 21 business model edit the company s business model was originally a conventional passive mortgage reit but thornburg mortgage later branched out to originating mortgages selling directly to consumers direct retail origination and wholesale origination . the company marketed its products via print advertising direct mail and online avoiding the significant expenses associated with maintaining a network of branches . other ways that the company looked to reduce expenses was by outsourcing the underwriting and servicing of its mortgages . 5 thornburg mortgage s customers were typically affluent and with superior credit . according to the company s own figures as of march 31 2007 the average borrower had an annual income of 204 012 and a fico score of 743 . the rate of borrower default on these loans had also historically been significantly lower than the industry average . 6 references edit a b about us . thornburg mortgage inc. retrieved 2008 03 20 . a b c 2007 annual report pdf . thornburg mortgage inc. retrieved 2009 03 14 . thornburg mortgage file to bankruptcy . bloomberg . retrieved 2009 04 01 . thornburg mortgage inc. otc thmr ceo & executives . businessweek . retrieved 2008 03 20 . a b glassman james k 2004 05 13 . pulling out a thornburg . national review online . retrieved 2008 03 20 . a b 2007 annual shareholders meeting presentation pdf . thornburg mortgage inc. retrieved 2008 03 20 . farrell andrew 2007 08 07 . mortgage fallout spreads to thornburg . forbes . retrieved 2008 03 22 . thornburg mortgage announces change of second quarter dividend payment date to september 17 . thornburg mortgage inc. 2007 08 14 . retrieved 2008 03 22 . standard & poor s equity research 2007 08 20 . movers capital one thornburg mortgage countrywide lowe s dendreon . businessweek.com . retrieved 2008 03 22 . thornburg mortgage stabilizes its financing platform and plans to return to business as usual . thornburg mortgage inc. 2007 08 20 . retrieved 2008 03 22 . historical prices for tma thornburg mortgage inc. . google finance . retrieved 2008 03 22 . thornburg mortgage announces offering of up to 500 million of series f cumulative convertible redeemable preferred stock . thornburg mortgage inc. 2007 08 30 . retrieved 2008 03 22 . decambre mark 2007 08 30 . thornburg mortgage sees return to normalcy . thestreet.com . retrieved 2008 03 22 . thornburg mortgage to restate its financial statements to recognize impairment loss on assets . thornburg mortgage inc. 2008 03 07 . retrieved 2008 03 22 . stempel jonathan 2008 03 10 . thornburg survival at stake after big margin calls . reuters . retrieved 2008 03 22 . a b thornburg mortgage announces one year reverse repurchase override agreement and proposed 1 billion public offering of convertible notes . thornburg mortgage inc. 2008 03 19 . retrieved 2008 03 22 . aparajita saha bubna and lingling wei 2008 03 20 . creditors give thornburg one week to raise capital . wall street journal . retrieved 2008 03 22 . vlastelica ryan 2008 03 19 . thornburg mortgage shares tumble on reverse financing deal capital needs . thompson financial news limited . archived from the original on 2008 03 25 . retrieved 2008 03 20 . mortgage firm needs to raise 1bn . news.bbc.co.uk . 2008 03 19 . retrieved 2008 03 20 . gutierrez carl 2008 03 21 . thornburg mortgage delays its hail mary . forbes . retrieved 2008 03 22 . thornburg mortgage announcement . thornburg mortgage inc. 2009 04 01 . retrieved from https en.wikipedia.org w index.php title thornburg mortgage & oldid 659765970 categories companies based in santa fe new mexicocompanies established in 1993companies disestablished in 2009companies that have filed for chapter 11 bankruptcymortgage lenders navigation menu personal tools not logged intalkcontributionscreate accountlog in namespaces article talk variants views read edit view history more search navigation main pagecontentsfeatured contentcurrent eventsrandom articledonate to 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