UPDATE 1-RESEARCH ALERT-FBR cuts Thornburg Mortgage price target

(Recasts; adds details, share movement)

Aug 27 (Reuters) - Friedman Billings Ramsey cut its price target on the stock of Thornburg Mortgage Inc TMA.N, a specialist in jumbo home loans, by half to 25 cents and said it saw increased financing risk for the company in the near future.

The brokerage, which maintained an "underperform" rating on the company's stock, said repo lenders had issued new margin calls to the company, following downgrades by Fitch.

Repos are money-market instruments that are usually used to raise short-term capital.

"While an increase in haircut based on collateral downgrade is covered under the override agreement, the repo counterparties and Thornburg have come to some different views with respect to margin calls due to price changes," analyst Paul Miller wrote in a note to clients.

The analys said the override agreement was put in place to eliminate margin calls for a period of one year to allow the company, which was on the brink of bankruptcy in March before raising $1.35 billion of capital, to focus on operations.

The analyst said margin calls could fall beyond the balance of $350 million in the liquidity fund, as existing funding lines could be at risk.

"We expect TMA to negotiate with the repo counterparties for some mutually agreeable solutions, but we are concerned that credit market conditions will not improve significantly in the near term," Miller said.

On Tuesday, the company said its survival remained in doubt following additional margin calls, but that it is on track to complete a restructuring and avoid collapse.

Santa Fe, New Mexico-based Thornburg specializes in mortgages above $417,000, which typically go to buyers of more expensive homes who have good credit.

Shares of the company were trading down 4 percent at 47 cents before the bell. They closed at 49 cents Tuesday on the New York Stock Exchange. (Reporting by Adveith Nair in Bangalore; Editing by Amitha Rajan)