No Savior for Mortgage Biz

IndyMac tightened its underwriting guidelines this month to restrict itself to loans that can be sold to the government-sponsored agencies.

CEO Michael Perry said earlier this month that the Pasadena, Calif.-based company has "very strong liquidity," and that "there are no realistic scenarios that I can foresee that would impair IndyMac's viability," in a letter to employees.

Thornburg, which specializes in jumbo adjustable-rate mortgages, might have an even tougher time finding a partner if the mortgage industry gets any worse.

Last week Thornburg sold a third of its mortgage securities portfolio in a bid to reduce its exposure to margin calls and improve liquidity.

Analysts say about the only thing the Santa Fe, N.M.-based firm has going for it is its assets. Its balance sheet consisted of $24.6 billion in ARM loans and another $31.7 billion in purchased ARM assets, at the end of the second quarter.

Rather than paying any sort of premium for the company as a whole, a buyer is likely to purchase the loans at a discount, they say.