Industry News

Losses mount for Impac Mortgage Holdings

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Losses continued to mount for former Alt-A lender Impac Mortgage Holdings Inc., hitting $152 million during the second quarter, up 25 percent from $122 million the previous quarter. Losses for the year to date for the Irvine, Calif.-based lender totaled $274.2 million, compared with $111.9 million in net earnings in the first six months of 2006. Impac Mortgage, a real estate investment trust (REIT), blamed its growing losses on a $133.6 million increase in provision for loan losses as a result of higher delinquencies, plus a $12.4 million charge-off for the impairment of goodwill and an $8.5 million increase in the loss provision for foreclosed properties. Loan production was also down in the second quarter, as Impac Mortgage stopped funding Alt-A loans and restricted itself to those eligible to be resold to government-sponsored agencies. The company acquired and originated $1.3 billion of primarily Alt-A mortgages during the second quarter, down 42 percent from the $2.2 b...