Marginal Revolutions

The company Thornburg Mortgage was a mortgage corporation that was headquarter in Santa Fe, New Mexico. The company was a real estate investment trust that starts, acquires and manages mortgages. It specializes in those mortgages that are jumbo and super jumbo adjustable rate mortgages. The company was founded in the year 1993 by Larry A. Goldstone and Garrett Thornburg. The company was fairly popular before the financial crisis hit.

Most of Thornburg Mortgages customers are very well off and have decent money. The annual income of the average borrower for this company was $204,012. These borrowers also would have an average FICO score of 743 if not higher. This company was well noted to try to reduce its expenses. It sold directly to the consumers in 2001 and moved into wholesale in 2006. It often worked with other financial institutions as well. The company was renown for its advertising. It advertised through the mail, internet and other printing devices. The company often outsourced its underwriting and servicing the mortgages out to other companies.

The financial difficulties of this company began in 2007. The Deutsche Bank downgraded the company to sell. Securities began to fall and lose value. The company then started stopping mortgage applications and to not take any new ones. In 2008 the company tried to stay afloat. They tried to work with many creditors some of which demanded that they had to raise $948 million in seven business days. In 2009 Thornburg Mortgage announced its downfall. It could not pay its creditors and closed its doors. Thornburg Mortgage closed its doors and then filed Chapter 11 bankruptcy and all remaining assets were sold off. Thornburg mortgage was yet another victim of the financial crisis that started in the year 2007. To find out more about this company and other companies that were hit by the crisis, you can do an online search and find a lot of this information available.