 |
| 30 Yr Fix |
6.05% |
-0.01% |
| 15 Yr Fix |
5.60% |
0.01% |
| 1 Yr ARM |
5.29% |
0.00% |
| 5/1 ARM |
5.67% |
-0.06% |
| 30 Yr Tres |
4.56% |
-0.06% |
| Fed Prime |
5.00% |
-0.25% |
|
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Sinking Mortgage Company Gets Lifeline from Lenders
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Another closely watched mortgage industry participant has gotten a temporary
reprieve as its lenders agree to forbearance for threatened
margin calls.
Thornburg Mortgage said that five lenders have agreed to a
deal where no further margin calls will be made in return for its compliance
with a laundry list of requirements. Among the requirements; the Santa Fe based
company has seven days in which it must raise at least $948 million in new capital.
It must suspend its shareholder dividend and agree not to undertake any borrowing
in the reverse-repurchase agreement market in which collateralized short-term
borrowing is done.
Thornburg will give the five lenders, Bear Stearns Cos., Citigroup Inc., Credit
Suisse Group, Royal Bank of Scotland Group PLC and UBS AG, warrants which they
can exercise into 47 million shares of the company at $.01
cent each. If exercised this would give Thornburg's creditors 27 percent of
its stock.
Thornburg said that, without the agreement, it was facing an additional $90
million in margin calls and the possibility of additional calls resulting from
a continued decline in mortgage securities prices. The company had said last
week that its survival was in doubt.
This week's deal is for 364 days; the five lenders have provided about $5.8
billion in repo financing to Thornburg.
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Comments (3)
| Kate..no one forced anyone to signup for these loans. it was all free will. if someone went out and bought a house they could not afford 30 years down the line .. its less the mortgage company and more the individual(s) to blame |
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| Above Posted By:
Lance
| Wed, 23 Apr 2008 21:13:51 EST |
| Why is it ok. for the predatory lenders to be allowed to continue ripping people off? Homes are being stolen, families are being displaced,credit is being ruined all for the sake of the loan originaters of these loans just to line their own pockets! Where is all the help promised to homeowners with excellent fico's,steady job history,impeccable credit until these thieves took them to the cleaners. This is so wrong....disgusting. Why aren't these loan originaters being punished for deliberately stealing everything from naive victims? Isn't grand larceny a crime anymore? |
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| Above Posted By:
kate
| Wed, 26 Mar 2008 14:56:23 EST |
| 1100 views and no comments but this one....noone cares about us famillys in forclosure, bankruptcy humiliation, etc.....but the lenders are getting bailed out left and right....for making bad loans....125% Loan to value advertising, inflating apraisals, lying about borrower qualifications, disregarding credit scores, thier making loans to all of us is like feeding a hungry dog....then blaming the dog for eating.....Shme on this Country.......noone care |
|
| Above Posted By:
bill mullen
| Sat, 22 Mar 2008 11:48:54 EST |
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