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