Impac Posts $1.2B Loss

Former alternative-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 60 cents each -- is expected to file for bankruptcy protection within the next two months, according to executives close to the lender. Impac is no longer funding nonconforming loans, but originated $261 million in agency product during the quarter. Its balance sheet includes $19.4 million in assets, which threw off interest income of $313 million in the third quarter. Impac, echoing statements made by several other players in the business, blamed its problems on "deteriorating market conditions, higher delinquencies, and higher severities." The company also said its executive vice president and chief financial officer, Gretchen Verdugo, resigned effective Nov. 30 but was given a $200,000, six-month consulting contract. Impac can be found online at http://www.impaccompanies.com.