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
That’s Impossible
Realtors say the crash is done.
Impac missed the memo
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.??