Major Blow to Impac
An article published in the Orange County Business Journal takes a look at the factors that led to a 20% drop in the shares of Impac Mortgage Holdings Inc. According to the article:
- The Irvine-based mortgage company said it was in default on loans worth more than $400 million.
- The company, which has a market value of $70 million, said in a Securities and Exchange Commission filing that as of Sept. 30 it was “in technical default” on a credit line and a pact to buy back loans sold as investments.
- Impac said it also had been in default with other lenders in September on financing worth a combined $609 million. It since has sold off mortgages and ended those financing agreements, the company said.
- In September, Impac shut down most of its mortgage lending operations amid the sector’s downturn. The company said on Tuesday it is delaying the filing of its third-quarter results with the SEC due to the changes.
- It’s also taking a $17 million write-off as a result of its decision to stop its lending operations.
This is just more bad news of another company’s detrimental losses associated with the current credit crisis. Right now is a very scary time for smaller mortgage lenders, as fellow companies take the hit one by one. That makes it harder to qualify for products such as a Utah home equity loan. In the end, it will be interesting to see which companies survive and what made them different from the rest.
November 16, 2007 | Filed Under Utah Home Equity Loan
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