Industry News

Delta Financial, Impac Mortgage announce 650 layoffs

Nonconforming lenders blame secondary market turmoil
Published on Aug 23, 2007

Two mortgage lenders -- Delta Financial Corp. and Impac Mortgage Holdings -- announced layoffs totaling 650 workers Wednesday, adding to the tally of more than 13,000 job cuts in the last week. Delta Financial Corp. announced it has cut its workforce by 20 percent, laying off 300 workers as it closes wholesale offices in Florida, Texas and California. The Woodbury, N.Y.-based mortgage lender, which originates and securitizes nonconforming loans for sale in the secondary market, said the rapid deterioration of credit markets "has caused issues in our sector that are beyond our control." Impac Mortgage also blamed volatility in the secondary and securitization markets, "which has significantly limited the origination of nonconforming residential mortgages," for layoffs of 350 employees. The Irvine, Calif.-based lender recently reported that it suffered $152 million in losses during the second quarter and was facing margin calls from creditors that provide funding for its lo...

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