New York Mortgage Trust Inc., which has sold its wholesale origination platform and is in the process of selling its retail platform, reported a net loss for 2006 of $14.2 million ($0.79 per share), compared with a net loss of $5.3 million ($0.30 per share) for the previous year.The company said the loss was entirely due to discontinued operations, which is how the origination platforms need to be carried on the company's books. NYMT reported a consolidated net loss of $8.8 million ($0.49 per share) for the fourth quarter of 2006, compared with a net loss of $8.7 million (0.49 per share) for the same period in 2005. "Our 2006 operating results are reflective of a continued deterioration in the mortgage lending environment," said Steven B. Schnall, chairman, president and co-chief executive of the company. "Despite the fact that we have virtually no subprime credit exposure, we have experienced a marked increase in the number of early payment defaults of the alt-A loans originated in our mortgage lending segment." Mr. Schnall said this has resulted in an unprecedented level of loan repurchases and credit losses totaling $7.4 million in the second half of 2006. "This pressure, compounded by our lack of sufficient scale to achieve profitability in this very challenging market, further validates our decision to exit the mortgage lending business," he said. NYMT, a real estate investment trust, can be found online at http://www.nymtrust.com.
