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Trading Is Halted in Shares of Mortgage Lender,
Trading was halted yesterday in shares of the lender Thornburg Mortgage Asset after they plunged 47 percent, the most since their 1993 initial public offering. Earlier, five brokerage firms downgraded the stock and Moody’s Investors Service cut its debt rating amid turmoil in the home loan market.
The company announced later that it would delay payment of its quarterly dividend, 68 cents a share.
Brokerage firms cited concerns that Thornburg, which specializes in high-quality, prime jumbo mortgages, might need to sell assets or reduce its dividend because of a liquidity squeeze.
… The nation’s biggest lenders face a worsening cash shortage because investors who buy their loans are not bidding, and bankers have cut off credit lines. The fallout has toppled at least 70 mortgage companies.
Not just sub-primes…