Shares of Irvine-based Impac Mortgage Holdings Inc. dropped about 5% Friday after the mortgage investor reported a first-quarter net loss of $121.7 million a day earlier.
Impac, whose Alt-A loans packaged as bonds have risk levels between the best mortgages and subprime loans, reported late Thursday a first-quarter loss of $122 million, versus earnings of $85.6 million a year earlier.
Losses on derivatives and charges related to loan buyback requests were largely behind the decline, officials for the real estate trust said.
The company sold off $52 million in delinquent loans last quarter, to both manage margin call exposure, as well as convert mortgage loans into cash.
The company’s mortgage operations acquired and originated $2.2 billion of primarily Alt-A mortgages last quarter, compared to $4.1 billion for the fourth quarter.
Impac let go of 120 local workers earlier in the week, the result of housing and mortgage slowdown.
The company has a market value of about $400 million.
