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Markdowns Take Toll on Impac

Former alt-A giant Impac Mortgage Holdings posted a $1.2 billion loss in the third quarter, $790 million of it tied to markdowns on various types of collateral, including derivatives.

The company - whose shares now trade for about $0.60 each - is no longer funding nonconforming loans but originated $261 million in agency product during the quarter.

As recently as the first quarter, it funded $2.4 billion in alt-A loans, ranking 15th nationwide. However, the alt-A sector - like subprime - has been hammered by rising delinquencies, falling home values and a lack of liquidity in the secondary market.

At the end of the third quarter, Impac's balance sheet included $19.4 billion in assets, which threw off interest income of $313 million.

Impac, echoing statements made by several other players in the business, blamed its problems on "deteriorating market conditions, higher delinquencies and higher severities."

Irvine, CA-Former alt-A giant Impac Mortgage Holdings posted a $1.2 billion loss in the third quarter, $790 million of it tied to markdowns on various types of collateral, including derivatives.

The company - whose shares now trade for about $0.60 each - is no longer funding nonconforming loans but originated $261 million in agency product during the quarter.

As recently as the first quarter, it funded $2.4 billion in alt-A loans, ranking 15th nationwide. However, the alt-A sector - like subprime - has been hammered by rising delinquencies, falling home values and a lack of liquidity in the secondary market.

At the end of the third quarter, Impac's balance sheet included $19.4 billion in assets, which threw off interest income of $313 million.

Impac, echoing statements made by several other players in the business, blamed its problems on "deteriorating market conditions, higher delinquencies and higher severities." (c) 2008 Mortgage Servicing News and SourceMedia, Inc. All Rights Reserved. http://www.mortgageservicingnews.com/ http://www.sourcemedia.com/

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