Thornburg, the Jumbo Secondary Market & New FHA Limits

Thornburg missing margin calls is the news of the day but the less-than-subtle after effects include the jamming up of the secondary market for jumbo-backed securities and concomitant spike in jumbo rates. The issue is that Thornburg may be forced to dump their assets on the market to meet further margin calls to raise cash. According to their SEC filing the default has triggered cross-default clauses across all of its other securitized loan agreements. From Calculated Risk: Thornburg Mortgage filed a form 8-K with the SEC today warning of a material event: (hat tip RW) Thornburg Mortgage, Inc. (the ?Company?) has entered into reverse repurchase agreements, a form of collateralized short-term borrowing, with various counterparties. The Company received a letter from JPMorgan Chase Bank,