HCM Takes Loss, Won’t Declare Dividend

Hanover Capital Mortgage Holdings Inc., Edison, NJ, has taken an $11.4 million net loss for the second quarter and decided not to declare a dividend, primarily due to market uncertainties and their effect on the company’s subordinate mortgage-backed securities.HCM’s second quarter loss is down from net income of $900,000 during the same period in 2006. The company in the second quarter of this year suffered $11.8 million in impairment expense for other than temporary declines in the fair value of its subordinate MBS and a reduction in gains from sales of its subordinate MBS partially offset by an increase in net interest income on its subordinate MBS. It plans to "revisit the dividend issue" in the third quarter. HCM can be found online at http://www.hanovercapitalholdings.com.