Shares of Irvine-based Impac Mortgage Holdings Inc. dropped more than 21% on Wednesday after the mortgage investor said it won’t pay a second-quarter dividend to shareholders.
Impac, which invests in Alt-A loans that are in between the best mortgages and more risky subprime loans, is in the process of selling its portfolio of foreclosed homes through an auction.
The company said late Tuesday that it is experiencing higher than expected losses during auctions, prompting the decision not to pay a dividend.
Impac is still going through with the auctions, to reduce its exposure to future losses, officials for the real estate investment trust said.
The company has a market value of about $360 million. Its shares are off about 60% in the past 12 months.
