Irvine-based Impac Mortgage Holdings Inc. said on Monday it expects to report a substantial third-quarter loss but is taking measures to “maintain the viability” of the beleaguered company.
Impac said it plans to report a greater quarterly loss than the $127.7 million it posted a year earlier but could not estimate how big the loss would be.
Impac cited the continued deterioration in the real estate market during the quarter, which is resulting in increased delinquencies on loans it owns.
Shares were down about 10% on the news, in midday New York trading. The company counts a market value of about $50 million.
The company also said it was delaying filing its quarterly financial report with the Securities and Exchange Commission until mid December, because it needs more time to account for its recently discontinued lending operations, announced earlier this year.
Impac officials said it is taking steps to reduce its expenses and demands for repayment from lenders.
The company will “do what is necessary to maintain the viability of the company and in the best interest of our stockholders,” Chief Executive Joseph Tomkinson said in a statement.
Impac said it has reduced its outstanding warehouse credit lines balances to $354 million from $925 million at the end of September, and now has financing facilities with two lenders, down from five at the end of September.
Last week, the company disclosed that as of Sept. 30 it was “in technical default” on a credit line and a pact to buy back loans sold as investments.
The company said it has “diligently been working” to reduce its office expenses by trying to sublease office space at its new headquarters on Jamboree Road.