Thornburg Mortgage Inc., the “jumbo” home lender racked by the collapse of U.S. mortgage markets, said it plans to file for bankruptcy protection and shut down.

Remaining assets will be sold or liquidated to pay bondholders and creditors, according to a statement today from the Santa Fe, New Mexico-based company.

Thornburg specialized in mortgages of more than $417,000, typically used to buy more-expensive homes, and invested in mortgage-backed securities. It started running short of cash in August 2007 as foreclosures nationwide headed toward new highs and investors became leery of assets backed by home loans. A bailout in March 2008 from buyout firm MatlinPatterson Global Advisers LLC failed to revive the company as lenders demanded payments to cover the plunging value of mortgage assets. No more refinancing from these people.

Full story here: http://www.bloomberg.com/apps/news?pid=20601103&sid=acP.oPOVP3VI

Related posts:

1. Should I Refinance? – FHA Mortgage as an option

2. A Resignation Letter from an AIG Employee – Jake Desantis’ Letter

3. Mark-to-Market and Mortgages

4. Mortgage Backed Securities Up a few Points

5. Fannie, Freddie to channel mortgage resources