Officials for Irvine-based mortgage lender and investor Impac Mortgage Holdings Inc. said on Wednesday that the company is in good enough financial shape to weather the current volatility in the mortgage and housing markets.
“We have no intention of declaring bankruptcy,” Chief Executive Joseph Tomkinson said during the company’s quarterly conference call with analysts.
The company’s shares, which are down more than 80% for the year, responded positively to the news, rising about 10% in early morning trading. It ended the day up about 7%. The company counts a market value of about $100 million.
Impac lost $152.5 million in the second quarter, compared to a profit of $26.4 million a year ago. The company recently said it would stop funding Alt-A loans because of rising defaults and growing Wall Street apprehension about the loans.
About 90% of Impac’s mortgages last year were Alt-A, which fall in between the riskiest subprime loans and the best mortgages.
At this point, Impac is only funding loans that are eligible to be sold to government sponsored agencies.
