The borrowers are saying that if Thornburg is willing to sell their loan to an outside investor for 69 cents, it should be even more willing to sell that loan back to the homeowner for 70 cents. But in fact it's more complicated than that. The homeowners who are willing and able to buy back their own loans for 70 cents on the dollar are generally the most valuable of Thornburg's borrowers — they're overwhelmingly likely to be the ones whose loans are worth par, or more. So if Thornburg allows them to buy their own loans back, the value of the remaining mortgages goes down, and the investors aren't going to be willing to pay 69 cents on the dollar any more.
First of all, despite what many of us believed, Thornburg did NOT keep many of our loans on their books. I was told there were "maybe a dozen" mortgages that had not been securitized. In other words, there are a few crumbs at the bottom of the cookie jar.
For everyone else, the only question that remains is who will take over the servicing rights that Thornburg used to enjoy. I was told that the company's creditors are trying to figure out who walks off with that prize right now. If you received the same email I got yesterday from Thornburg, you already know that it may take up to 90 days for us to learn who the new servicer is.