A bankruptcy court judge in Baltimore has approved plans to auction Thornburg Mortgage Inc.'s $11 billion servicing portfolio in early 2010, Reuters reports.
The Santa Fe, N.M.-based lender, which specialized in jumbo product, filed Chapter 11 in May. While it has not acquired or originated any loans since then, the company has continued servicing the portfolio. According to a filing from Thornburg's trustee, a targeted portfolio sale
‘involving potential servicers of the servicing portfolio is most likely to achieve the highest and best price for the servicing portfolio.’
The trustee will begin accepting bids on the portfolio in January, and Judge Duncan Keir of the U.S. Bankruptcy Court in Baltimore has scheduled a court hearing to approve the sale for Feb. 10.