Home lender Thornburg Mortgage Inc. gained 7.81% to close at $1.38 per share. The company on March 31 in a move to stave off bankruptcy said it raised $1.35 billion through selling bonds, warrants to purchase its common shares and interests in certain mortgage assets.
Countrywide Financial Corp. picked up 4.58% Monday to close at $6.17 per share. The company has been regulators' poster boy for irresponsible lending behavior of late. A federal bankruptcy judge ruled on Wednesday April 2 that the the Department of Justice can investigate whether Countrywide has abused the bankruptcy process in accounting for the assets of bankrupt homeowners in western Pennsylvania. Countrywide agreed in January to be bought by Bank of America Corp. for $4.2 billion. The Justice Department has scheduled public hearings on the deal this month in Chicago and Los Angeles.
The broader market did not mirror the gains that home lenders saw Monday with trading mixed as the Street awaits first-quarter earnings to roll out this week. The Dow Jones Industrial Average inched up 3.01 points to close at 12,612.43. - Michael Rudnick
News that private equity firm TPG is set to lead a group investing $5 billion into lender Washington Mutual Inc. helped boost an otherwise struggling financial services sector. WaMu 's shares jumped 29.30% to close up $2.94 on the news. 
