Thornburg Mortgage Inc., forced to stop taking home-loan applications earlier this month because of a cash crunch, said it sold $20.5 billion of mortgage-backed securities as part of a plan to return to “business as usual.”

The sales will result in a capital loss of about $930 million this quarter, the Santa Fe, New Mexico-based company said today in a statement. Thornburg also made about $40 million by terminating, interest rate hedging instruments.

Home lenders are finding new sources of capital after investors stopped buying their mortgages and bankers cut off credit. Luminent Mortgage Capital Inc., an investor in home-loan securities, lined up about $125 million today from Arco Capital Corp. Delta Financial Corp., a subprime residential lender, found investors last week to provide $70 million.

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Posted: 08|20|07 at 2:21 pm. Filed under: News.