Impac Takes $66 Million+ Loss

Impac Mortgage Holdings Inc., Irvine, Calif., has taken a net loss of $66.3 million ($1.06 per share) for 2006, compared with net income of $270.3 million ($3.35 per share) the previous year.However, because it is a real estate investment trust, Impac has $79.5 million ($1.05 per share) of estimated taxable income available to common stockholders compared to actual taxable income of $142.9 million ($1.87 per share). The company blames the GAAP loss on a compression of net interest margins because borrowing repriced more quickly than adjustable mortgage assets. Impac also reported a $257.9 million decrease in the fair value of derivatives, which was partially offset by a $181.1 million increase in cash receipts. Net earnings decreased by $29.5 million because of a charge related to loan repurchases in the second and fourth quarters of 2006. Total origination volume for the year was $11.6 billion of residential loans and $983.4 million of commercial and multifamily loans. In 2005, it did $22.3 billion and $798.5 million respectively. Impac said it tightened underwriting guidelines in the residential business 17 times during 2006.