June 24 average daily rates in Orange County for 30-year fixed loans with one-point fee: Conforming up to 6.078%, Jumbo up to 7.446% and Conforming-Jumbo up to 7.208% (Note: conforming-jumbo rates are for loans from $417,000 to $729,750, while conforming is up to $417,000 -- both types are sold to GSEs. Jumbos here are $730,000 or higher and not sold to GSEs.)
Source: Newspaper Chart Services 
Impac Mortgage posts $2 billion loss for ‘07
May 21st, 2008, 8:02 am · 3 Comments · posted by Matt Padilla, Register Reporter and Blogger
Impac Mortgage Holdings on Tuesday reported a $2 billion loss for 2007, mostly because it set aside an additional $1.4 billion for potential losses on problematic loans amid a housing slump and tepid investor demand for securities backed by mortgages.
The Irvine-based investor in home loans said it is in negotiations with creditors, and if it is able to reach agreements, it should have enough cash coming in from its mortgage holdings and loan servicing to remain liquid.
In its annual report filed Wednesday, the company said it has answered questions from the Securities and Exchange Commission. Here’s more:
“In 2008, in his testimony before the U.S. Senate Committee on Banking, Housing and Urban Affairs, the Chairman of the Securities and Exchange Commission stated that the SEC has established an agency-wide task force to look at the accounting and disclosure by mortgage companies, including securitizations of mortgage loans. During 2008, pursuant to informal requests from the SEC, we have provided certain information to, and answered questions from, the SEC about our business operations and related accounting policies and methodology. Any actions by governmental agencies that would limit our current and future operations may have an adverse affect on our ability to operate our business. These general market conditions have continued to affect our business operations and the performance of our mortgage loans.”
To read the release, CLICK HERE.
- Impac Mortgage loses two top execs
- Impac CEO caught up in suit between two auction companies
- Impac loses $1.2 billion in Q3
- Impac notified of NYSE listing violation
- Impac in default on $407 million
May 21st, 2008 at 9:19 am
That’s Impossible
Realtors say the crash is done.
Impac missed the memo
May 21st, 2008 at 2:41 pm
Finally some news from Impac and OC’s favorite CEO. Anyone remember this gem of an article? You know, blame the media it really isn’t that bad because Joey said so. See what happens when you OD on the Kool-Aid.
“Do I think that the investment banks are overreacting? They’re throwing the baby out with the bathwater,” says Tomkinson, who has been Impac’s CEO since cofounding the company in 1995.
Tomkinson said he decided to speak out about New Century’s woes to put the story into perspective, saying that “the sky is not falling.” He also wanted to distinguish his company – which makes loans to borrowers with good credit scores but less documentation than required for prime loans – from the subprime lenders.
He conceded that Impac – the nation’s 10th largest lender of so-called “Alt-A” mortgages – also is affected by bad publicity given to the subprime lending industry, even though Alt-A loans are a step above the subprime category.
Oops, it looks like the sky fell and it fell hard.
About half of all borrowers who are 60 days behind in their house payments or less manage to resume making all their payments on time, Tomkinson said. When they fail to “cure” their defaults and end up losing the home, the lender recovers most of that default by selling the residence, he said.
“If you have $8 billion in early payment defaults, you’re not going to lose that amount,” he said. “You might lose 10 percent of that.”
From their latest 10-K: REO charge offs were $281.3 million for 2007 compared to $24.7 million for 2006.
Oops again, that sure sounds like they are losing more than 10% when they sell the residence. Or write down the net value by almost 20%, yet they still lost $4mil after the write down.
They currently have $405mil is REO properties, up 195% from last year.
They have over $2.5 BILLION in non performing assets. And, they have over $1.1 BILLION of loans in foreclosure.
Will they just file BK and get over it already. See what happens when you have your head in the sand.
May 21st, 2008 at 4:43 pm
Wait a second…. Thoughtful keeps saying Alt-A is performing fine. Why would they have to set aside $1,400,000,000 for losses if everything was fine and dandy, property values were rising, etc.??