Irvine-based Impac Mortgage Holdings Inc. said on Tuesday it was shutting down most of its mortgage lending operations, including for riskier Alt-A mortgages.
Along with Alt-A loans, which are one step above the riskiest subprime loans, Impac said it’s also quitting warehouse lending and commercial lending.
The company is laying off 144 employees as a result of the changes. It let go of another 350 employees a month ago, which was more than 40% of its employee base at the time.
Impac still will make some mortgage loans that conform to standards set by Fannie Mae, the government-backed buyer of mortgages.
The company, which primarily buys mortgages as investments, stepped up its business originating loans with the May acquisition of Florida’s Pinnacle Financial Corp.
With the latest change, Impac’s operations now primarily consist of managing its long-term investments and mortgage servicing.
The company cited continued market disruptions and a lack of funding for riskier mortgages for its decision.
Impac’s shares were down 14% on the news in early Tuesday trading. The company counts a market value of about $115 million.
