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Another 1 bites the dust

qdognj
16 years ago

Impac Mortgage:

IRVINE, Calif. (AP) - Impac Mortgage Holdings Inc. said Tuesday it will stop originating alt-A mortgages and is cutting staff in the wake of the deteriorating mortgage market, but added it has been able to meet all margin calls to date.

Impac, which was almost wholly an alt-A lender, will continue to originate prime mortgages through wholesale and retail channels. Alt-A loans are given to customers with minor credit problems or who cannot fully document income like traditional, prime borrowers.

The shut down of its alt-A business comes amid growing concern about rising mortgage delinquencies and defaults. The problem began with subprime mortgages -- loans given to customers with poor credit -- but is starting to creep into the wider mortgage market.

On Monday, American Home Mortgage Investment Corp., another alt-A lender, filed for bankruptcy protection as it could not meet growing margin calls.

Impac said it has met all margin calls made to date, and that it has negotiated the sale of $1 billion of the $1.6 billion of loans held for sale on its lines of credit. Those sales should be completed in the next 30 days.

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