Shares of Irvine-based Impac Mortgage Holdings Inc. dropped as much as 20% in afterhours trading Tuesday, after the mortgage company said it was in default on loans worth more than $400 million.
The company, which has a market value of $70 million, said in a Securities and Exchange Commission filing 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 two had a combined outstanding balance of $407 million, Impac said.
The company said it has requested a waiver from its lenders, UBS Real Estate Securities Inc., part of UBS AG, and Colonial Bank.
Impac said it also had been in default with other lenders in September on financing worth a combined $609 million. It since has sold off mortgages and ended those financing agreements, the company said.
In September, Impac shut down most of its mortgage lending operations amid the sector’s downturn. The company said on Tuesday it is delaying the filing of its third-quarter results with the SEC due to the changes.
It’s also taking a $17 million write-off as a result of its decision to stop its lending operations.
