A Harbinger for FHA, FHLMC & FNMA

Thornburg Mortgage, a specialist in jumbo loans often used to buy more expensive homes,

had a $1.1 billion Q3 loss last year that forced it to suspend lending and the quarterly dividend.

Thornburg began running short on cash last August, even though the company didn't make subprime loans to people with the weakest credit.

Today, Thornburg failed to meet $270 million of margin calls and lost more than half its market value,

a Citigroup Inc. analyst said bankruptcy is possible.

Comments