Thornburg Mortgage Reinstates Dividend, Replaces CEO

December 18, 2007 No Comments »

Despite ongoing concerns in the mortgage industry, Thornburg Mortgage announced today that it is reinstating its dividend and also expects to be profitable in the fourth quarter.

“We anticipate being profitable again in the fourth quarter,” newly appointed Chief Executive Larry Goldstone said in a statement. “All of our loans are performing as expected, our delinquency rate is well below industry averages, and our credit losses are minuscule.”

The Santa Fe, New Mexico-based mortgage lender said it believes market conditions and profitability will improve in 2008, but added that some doubt remains.

“As there is still uncertainty and turmoil in the global mortgage finance and credit markets, Thornburg Mortgage remains cautious in its near-term outlook,” Goldstone added.

Thornburg, who had suspended its dividend after reporting a $1.08 billion third-quarter loss, will pay shareholders on record as of December 31 a dividend of 25 cents per common share on January 30.

During the summer, the company halted lending operations briefly and was forced to sell assets to stay afloat after the secondary market for jumbo loans locked up.

In a separate statement, the company announced that president and chief operating officer Larry Goldstone became the CEO after Garrett Thornburg resigned.

Shares of Thornburg gained 40 cents, or 4.16%, to $10.01 in midday trading on Wall Street.

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