Shares of Irvine-based Impac Mortgage Holdings Inc. closed down nearly 15% on Monday after an analyst downgrade and American Home Mortgage Investment Corp. of Melville, N.Y., filed for bankruptcy protection.
American Home Mortgage has seen lenders demand their money back and has been unable to deliver as much as $800 million for mortgage loans promised to home buyers.
Like Impac, American Home Mortgage deals in Alt-A loans, which are in between the riskiest subprime loans and the best mortgages.
On Monday, Deutsche Bank cut its rating on Impac to “hold” from “buy,” saying it doesn’t believe the company is immune to the credit and loan problems others are facing.
The company could see creditors cut off financing, according to Deutsche Bank.
Impac’s shares are down about 80% for the year on the problems facing the mortgage industry.
The company, which buys mortgages as investments, counts a market value of $130 million at last check.
