Business Model
The company's business model was originally a conventional passive mortgage REIT, but Thornburg Mortgage later branched out to originating mortgages, working with other financial institutions (a.k.a. correspondent origination) from 1999, selling directly to consumers (direct retail origination) from 2001 and moving into wholesale origination in 2006. The company markets its products via print advertising, direct mail and online, avoiding the significant expenses associated with maintaining a network of branches. Other ways that the company looks to reduce expenses is by outsourcing the underwriting and servicing of its mortgages.
Thornburg Mortgage's customers are typically affluent and with superior credit. According to the company's own figures (as of March 31, 2007) the average borrower had an annual income of $204,012 and a FICO score of 743. The rate of borrower default on these loans has also historically been significantly lower than the industry average.
Read more about this topic: Thornburg Mortgage
Famous quotes containing the words business and/or model:
“God forgive me, I do still see that my nature is not to be quite conquered, but will esteem pleasure above all things; though, yet in the middle of it, it hath reluctancy after my business, which is neglected by my following my pleasure. However, music and women I cannot but give way to, whatever my business is.”
—Samuel Pepys (1633–1703)
“It has to be acknowledged that in capitalist society, with its herds of hippies, originality has become a sort of fringe benefit, a mere convention, accepted obsolescence, the Beatnik model being turned in for the Hippie model, as though strangely obedient to capitalist laws of marketing.”
—Mary McCarthy (1912–1989)