QUOTE AND NEWS
DailyFinance  Mar 25  Comment 
INDIANAPOLIS, IN -- (Marketwired) -- 03/25/14 -- Union Equity, Inc. (OTC Pink: UNQT) (PINKSHEETS: UNQT) and CEO JT Thornburg are pleased to announce that through its subsidiary, Union Equity Investments Inc., is negotiating with several...
DailyFinance  Mar 4  Comment 
INDIANAPOLIS, IN -- (Marketwired) -- 03/04/14 -- Union Equity, Inc. (OTC Pink: UNQT) CEO JT Thornburg is pleased to announce that UNQT has resumed trading. Mr. Thornburg is grateful to his legal staff for getting the chill removed. It is the...
DailyFinance  Feb 18  Comment 
INDIANAPOLIS, IN -- (Marketwired) -- 02/18/14 -- Union Equity, Inc. (OTC Pink: UNQT) CEO JT Thornburg would like to take a moment to give a shareholder update about the current situation of the company. "We are currently working diligently...
DailyFinance  Dec 24  Comment 
New CEO Lays Out Plan for Future GrowthINDIANAPOLIS, IN -- (Marketwired) -- 12/24/13 -- Union Equity, Inc. (OTC Pink: UNQT) would like to take this opportunity to update its shareholders on current and ongoing operations. Joseph Thornburg, the...
DailyFinance  Nov 27  Comment 
The Marketing Alliance, Inc. (OTC: MAAL) (“TMA”), today announced that its Board of Directors authorized a $0.36 per share cash dividend for shareholders of record on December 20, 2013, to be paid on or about January 31,...
The Hindu Business Line  Aug 13  Comment 
Ammi’s Biriyani, the flagship brand of Bangalore-based TMA Hospitality Services Pvt Ltd, will make its Chennai debut on Thursday with the opening of three outlets in the city. TMA’s Chai...
FX Street  Jun 4  Comment 
In Episode 155, your host Rob Booker catches up with his trading partner, Jennifer Thornburg , to... For more information, read our latest forex news and reports.
Benzinga  Apr 17  Comment 
Omeros Corporation (NASDAQ: OMER) today announced that it has filed an Application for Orphan Drug Designation with the U.S. Food and Drug Administration (FDA) for OMS721, the lead human monoclonal antibody in Omeros' mannan-binding...
Benzinga  Apr 2  Comment 
Omeros Corporation (NASDAQ: OMER) today announced positive data using OMS721, the lead human monoclonal antibody in Omeros' mannan-binding lectin-associated serine protease-2 (MASP-2) program, in a well-established animal model of thrombotic...
Forbes  Mar 22  Comment 
On 3/26/13, Trimac Transportation Ltd. (Toronto: TMA) will trade ex-dividend, for its quarterly dividend of $0.07, payable on 4/15/13. As a percentage of TMA's recent stock price of $5.92, this dividend works out to approximately 1.18%, so look...




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Thornburg Mortgage (TMA) is a residential mortgage lender that originates, acquires, and makes investments in ARM (adjustable-rate mortgage) assets. The company elects to be treated as a REIT (Real Estate Investment Trust) for federal income tax purposes. The company's ARM assets consist of purchased ARM assets and ARM loans. Purchased ARM assets are mortgage-backed securities that represent interests in pools of ARM loans. The company's ARM loans are either loans that were originated by TMA, loans used as collateral to support the issuance of CDO's (collateralized debt obligations) or loans pending securitization. The company finances its loan purchases and originations through various sources including equity issuance, unsecured debt, CDO's and short term borrowings. When the company borrows short-term funds, they generally enter into interest hedging transactions to mitigate the impact of fluctuations in short-term rates.

Thornburg, which caters to borrowers with strong credit, specializes in "jumbo" mortgages - loans that exceed $417,000. It avoids subprime loans, generally. Until Feb 2008, Thornburg’s loans were too big to be purchased by Federal National Mortgage Association (FNM) and Freddie Mac (FRE).

The company originates its mortgage loans through 313 correspondent lenders and directly to consumers in all 50 states. The company also has 18 field executives and 541 brokerage firms to facilitate its wholesale business. TMA outsources most of its standardized origination functions, loan processing, closing, and servicing, to third-party providers. As a result, the company does not have a nationwide branch network.

Business Financials

The company makes money from the net spread, or the difference between income from interest on ARM assets and the cost of borrowings. As of September 30, 2007, the company had total assets of $36.3 billion, short-term borrowings in the form of commercial paper, reverse repurchase agreements and whole loan financing of $12.2 billion, and permanent mortgage debt, in collaterals, of $21.1 billion. The company concentrates it business on larger balance high credit loans, which decreases default risk. As of September 30, 2007, the company's portfolio consisted of 94.8% AAA-rated assets and 5.2% below AAA-rated assets.

Subprime Crisis

Thornburg Mortgage Inc. (TMA) said on 25th March 2008 that it would raise $1.35 billion through a private-placement deal to help keep the company in business and avoid bankruptcy. It avoided subprime loans, which have had the highest rates of default, but ran short on cash after falling home sales reduced demand and investors wary of mortgage-backed assets retreated from the company’s securities.

Thornburg has lost 95% of its value in the past year, and is desperately fighting to stay afloat. It needs approximately $1 billion this week to meet margin calls from bankers. A previous plan to raise about $1 billion in convertible notes with an interest rate of 12% failed and was subsequently terminated.

Having suspended its preferred dividends and offered to buy back 90% of its preferred stock, Thornburg is now seeking to raise $1.35 billion using debt that pays an 18% interest rate. If the New York Stock Exchange grants its approval, Thornburg will issue senior subordinated secured notes due in 2015 without shareholder approval, which the company says would take too long.

An infusion of fresh capital is the centerpiece of a recent agreement Thornburg struck with its creditors, who agreed to freeze their demands for more collateral, so long as the company can raise at least $948 million in seven business days. If this offer fails, and the company’s creditors withdraw from the agreement, Thornburg will likely be forced into bankruptcy.

References

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