Luminent takes steps to stabilize whole loan business

By Caroline Salls

Pittsburgh, Sept. 11 - Luminent Mortgage Capital, Inc. has made progress in stabilizing its whole loan business, according to a company news release.

"Luminent is moving forward with strategic initiatives designed to capitalize on investment opportunities in this changed market environment," chief executive officer Trez Moore said in the release.

"These initiatives are designed to resolve Luminent's liquidity issues and, over the longer term, create opportunities for enhancing the value of Luminent."

Specifically, Luminent said it had $594.8 million of non-securitized whole loans and commitments to purchase an additional $320.9 million of these loans on its balance sheet as of June 30.

In addition, the company:

• Repaid all of its warehouse lines of credit that were financing these whole loan purchases, as one $1 billion warehouse line has been terminated, and no balances are outstanding under two warehouse lines totaling $1.5 billion;

• Sold all but five loans in its warehouse facilities;

• Maintained its interest in its 10 whole loan securitizations; and

• Reduced its employee work force since August by 15 persons, which the company said will result in enough savings to cover future reduced origination volumes.

Luminent is a San Francisco-based real estate investment trust that invests in mortgage-backed securities and loans.

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