A mortgage REIT reported a loss this morning. "Luminent Mortgage Capital, Inc. (NYSE: LUM - News) today reported a net loss for the quarter ended December 31, 2005 of $113.4 million, or $2.79 loss per share. 'We have accelerated the repositioning of our portfolio due to the persistence of yield curve flattening and ongoing increases in short-term rates," said Gail P. Seneca, CEO."

"For the latest fourth quarter, three analysts on average expected the company to earn 4 cents per share, excluding special items. The real-estate investment trust said the difference between its net loss and the REIT taxable net income for the latest quarter mainly relates to a $112 million non-cash impairment charge on mortgage-backed securities."

"In November 2005, Luminent announced a share repurchase program permitting the Company to acquire up to 2,000,000 shares of its common stock. To date, Luminent has repurchased 1,501,750 shares. Today, Luminent announced the initiation of an additional share repurchase program to acquire an incremental 3,000,000 shares."

"Luminent Mortgage Capital, Inc. invests primarily in the United States agency and other single-family, adjustable-rate, hybrid adjustable-rate, and fixed rate mortgage-backed securities."

From the LA Times. "Demand for mortgages and consumer loans weakened at U.S. banks in recent months, a Federal Reserve survey released Wednesday found." "'On net, 44% of domestic banks reported weaker demand for mortgages to purchase homes, a notably larger fraction than in the October survey,' the Fed said in its quarterly survey of senior loan officers."

"Banks said they expected loan quality on loans to businesses and households to deteriorate this year from current high levels. About 40% of domestic banks said they expected the quality of their nontraditional mortgages, which include interest-only loans, to decline. Bank regulators have recently cautioned banks on risks associated with commercial real estate lending and nontraditional mortgages."