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SAN FRANCISCO (AP) -- Real estate investment trust Luminent Mortgage Capital Inc. said Tuesday it has repaid all of its warehouse lines of credit that were used to finance $915.7 million in mortgages. Luminent terminated one of its warehouse lines, valued at $1 billion. It still has two lines totaling $1.5 billion to borrow against. The repayment and termination of the warehouse lines are an attempt to improve liquidity issues and enhance the company's value, its chief executive, Trez Moore, said in a statement. Warehouse lines of credit are used for short-term financing of mortgages. A mortgage company will borrow money against the line of credit to fund or purchase a loan. When the loan is then sold to an investor, the warehouse funding is paid back. Among the $915.7 million, $594.8 million was used to purchase non-securitized whole loans, and the remaining $320.9 million was being held for loan commitments as of June 30. Luminent also said it has cut 15 jobs in September. Shares of Luminent rose 49 cents, or 38 percent, to $1.78 in morning trading. Shares have traded between 36 cents and $10.84 in the past 12 months.
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