US lender Thornburg Mortgage posts $3.31 billion loss in first quarter!

(AP) -- Embattled mortgage lender Thornburg Mortgage is reporting a $3.31 billion loss for the first quarter, and says loan delinquencies are likely to continue to increase "modestly" for the rest of the year.

Before paying preferred dividends, Santa Fe, N.M.-based Thornburg Mortgage Inc. lost $3.31 billion, or $20.64 per share, for the quarter ended March 31, compared with profit of $75 million, or 62 cents per share, a year ago.

Thornburg specializes in larger mortgages, known as "jumbo loans," which total more than $417,000. The company says the value of securities it owns dropped drastically during the quarter amid a slowing economy and continued housing slump.