Deutsche Bank downgraded Impac Mortgage Holdings in Irvine from buy to hold, reports MarketWatch.
According to MarketWatch, Deutsche said, “it doesn’t believe the company is immune to the problems other firms are facing, such as difficulty selling whole loans and margin calls. The broker explained that the inability to meet margin calls could result in lenders no longer extending financing to Impac, which could prevent the company from originating new loans.”
Impac’s stock fell about 15 percent to $1.40, as I write this.
Reuters reports analyst Stephen Laws of Deutsche cut its price target to $2 from $8.25 per share.
As a former employee before all this mess started, I am happy to
say that I took my 401K and ran—it was at $21.00 per share back then.
I got out when it was going really good.
More blood on street. If you want to sell, make an offer Buyers can not refuse fast. If you are in a middle, cancel and save money. If you own home during the past 5 years, foreclosure. Best choice.
CNBC has turned into the all mortgage news network. That includes all 3 flavors, subprime, alt A, and prime.
I believe Impac’s issues run deeper and broader. This stock has been bleeding continuously since the filing of their class action suit.
Nothing at stake for the board members and/or executive management as they all allegedly cashed in long ago (hence the class action suit)!
By this time next week, our attention will turn away from Impac (no choice), and we can focus on the next domino.
BTW: Is Deutsche Bank on some sort of 90 day delay?
Why would they JUST NOW be recognizing this now as a HOLD from BUY? This is ludicrous. I’m glad they are not practicing medicine!
DB has ceased funding loans and frozen lines at MortgageIT / DB Home Lending / Chapel Funding………. since last Thursday. Looks like they are ready to pull the plug themselves.
If the No.10 home loan lender in American Home Mortgage (Alt-A) can’t survive, how long before lenders #8, 9, 11, and 12 collapse?
Wall Street is running for the exits on Alt-A and Subprime backed mortgages, a domino affect that will affect all but companies primarily dealing with prime borrowers, such as Countrywide.
This is a good time to invest in Countrywide, as they will rise from the ashes of their brothers 10x more powerful in 2 years.