Jumbo mortgage provider Thornburg Mortgage increased its estimates of how much of its assets it sold during the quarter, increasing as well projected losses on the sales. Thornburg now estimates it sold $22 billion in assets during Q3, vs. an earlier estimate of $20.4 billion. Projected losses on the sales were raised to $1.1 billion from $863 million. The company also said it expects to take a $286 million writedown the value of its mortgage portfolio, vs. a previous estimate of $262 million. However, Thornburg said it believes it has enough reserves to cover any future losses on its portfolio, adding that it has not seen material deterioration in the credit performance of its loan portfolio since July 31. "The global dislocation of the mortgage finance and credit markets this past summer has had a greater impact on our balance sheet than we initially estimated. However, we have begun to see a modest improvement in financing conditions since August," President Larry Goldstone said. Shares are down 7.1% to $12.50 in pre-market trading.
Sources: AP, Wall Street Journal
Commentary: Thornburg: Looking for Value Among Mortgage REIT Preferred Stock • Thornburg Mortgage Hit With Margin Calls; Shares Plunge 47%
Stocks/ETFs to watch: TMA
Seeking Alpha's news briefs are combined into a pre-market summary called Wall Street Breakfast. Get Wall Street Breakfast by email -- it's free and takes only seconds to sign up.