Industry News

Impac Mortgage expects to declare ‘stockholders’ deficit’

Alt-A lender stopped funding loans in September

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Alt-A lender Impac Mortgage Holdings Inc. has slashed expenses and outstanding debts since the company stopped funding loans in September, but liabilities exceeded assets at the end of the third quarter. New accounting procedures the company plans to adopt on Jan. 1 might have prevented the need to report an expected "stockholders' deficit," Impac executives announced Monday. For now, the Irvine, Calif.-based lender is unable to report third-quarter results because managers said they need more time to properly account for and record disclosures for its recently discontinued warehouse lending operations, commercial operations, and the discontinued origination and purchase of nonprime mortgage loans. Company officials said third-quarter losses were expected to surpass those of a year ago, when Impac, which is organized as a real estate investment trust, lost $128 million. Impact expects to "significantly" add to its loan loss provisions for the quarter because of increased delinquencies ...