Thornburg Mortgage, Inc. is a single-family (one-to-four unit) residential mortgage lender that originates, acquires and retains investments in adjustable-rate and variable-rate mortgage (ARM) Assets, thereby providing capital to the single-family residential housing market. Its ARM Assets consist of Purchased ARM Assets and ARM Loans and are comprised of Traditional ARM Assets and Hybrid ARM Assets. Purchased ARM Assets are mortgage-backed securities (MBS) that represent interests in pools of ARM loans, which are publicly rated and issued by third parties and may include guarantees or other third-party credit enhancements against losses from loan defaults. ARM Loans are either loans that it has securitized from its own loan origination or acquisition activities, loans that it uses as collateral to support the issuance of Collateralized Mortgage Debt or loans pending securitization.