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Impac Reports Delayed 2007 Results, Posts $2 Billion Loss

Irvine-based Impac Mortgage Holdings Inc. saw its stock drop 10% at the close of New York trading Wednesday after reporting a staggering $2 billion loss for 2007.

The losses,well above the $75.3 million Impac lost in 2006,were largely due to rising provisions for bad loans.

Impac set aside nearly $1.4 billion to cover rising mortgage defaults in 2007, compared to $34.6 million in 2006.

Impac, once one of the country’s largest lenders to Alt-A borrowers in between the riskiest and best applicants, shuttered the majority of its mortgage origination operations in the second half of 2007.

Back then, worsening market conditions made it impossible for it to sell mortgage loans as bonds to Wall Street. The company now focuses its efforts on maintaining and servicing its loans held as investments.

Impac’s shares fell about 20% in early trading after the company reported its annual results, which had been delayed for about two months. The company counts a market value of about $80 million.

The company now employs about 137 people, down from more than 800 at the end of 2007.

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Mark Mueller
Mark Mueller
Mark is the Editor-in-Chief of the Orange County Business Journal, one of the premier regional business newspapers in the country. He’s the fifth person to hold the editor’s position in the paper’s long history. He oversees a staff of about 15 people. The OCBJ is considered a must-read for area business executives. The print edition of the paper is the primary source of local news for most of the Business Journal’s subscribers, which includes most of OC’s major corporate and community players. Mark’s been with the paper since 2005, and long served as the real estate reporter for the paper, breaking hundreds of commercial and residential real estate stories. He took on the editor’s position in 2018.
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