ECC Reports $68.7M Loss for First Half

ECC Capital Corp., a real estate investment trust headquartered in Irvine, Calif., has reported a net loss of $68.7 million for the six months ended June 30. In a document posted on the company's website, ECC attributed the loss to high levels of delinquency and loss severity on mortgage loans held for investment. After realizing losses of $43.1 million in its mortgage portfolio for the six months ended June 30, ECC increased its loan loss allowance to $97.3 million, compared with $62.5 million at Dec. 31, 2007. It also cited a decline in the market value of its interest rate swaps and caps of $3.6 million for the six months ended June 30. Additionally, ECC was required to pay $2.5 million under its swap agreements, resulting in a loss on derivative instruments of $6.1 million for the six-month period. (For the first six months of 2007, ECC lost $62.3 million.) In a news release announcing the posting of the six-month 2008 data, ECC said that as it assesses its cost structure, "it cannot provide assurance that it will post third-quarter 2008 financial information." The company can be found online at http://www.ecccapital.com.