Luminent Mortgage Shares Up; Pays off Credit Line
Luminent Mortgage Capital, which has struggled with liquidity problems because of mortgage investments, Tuesday said it has reduced its debt exposure and cut staff, helping to stabilize its business.
Shares of the real estate investment trust rose 48 cents, or over 37 percent, to $1.77 in morning trading.
Luminent said it has repaid all warehouse lines of credit that were financing the purchase of or commitments to buy $915.7 million of loans. It also said it has sold all but five loans in its warehouse facilities, while maintaining an interest in 10 whole loan securitizations.
San Francisco-based Luminent also said it has cut 15 jobs since August to save money as mortgage originations decline. On Aug. 20, Luminent announced a bailout under which it would sell a majority stake in itself at a deep discount to Arco Capital, a San Juan, Puerto Rico-based holding company.
