Hanover Capital Mortgage Holdings lost $23.3 million, or $2.71 per share, in the first quarter, as $21.2 million in declines to the fair value of its subordinate mortgage-backed securities portfolio weighed heavily on results. The company also faced an increase in interest expense under its new repurchase agreement with Ramius Capital Group. As of March 31, seriously delinquent loans in the company's subordinate MBS portfolio totaled 0.83% of collateral balances, up from 0.55% at Dec. 31, 2007. Chairman and CEO John Burchett said the company is continuing efforts to raise capital "sufficient to enable the company to return to profitability and to provide a positive return for our shareholders."
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