Impac issued this press release in regards to the recent thrashing its stock has taken since it missed its reporting date for earnings. Impac’s key position is that they are more of a prime mortgage company than subprime – citing average credit scores of 697 and LTVs of 74% as proof. They also reference several other key metrics in an attempt to bolster the street’s confidence. Their CEO says:
Mr. Tomkinson commented, "It is unfortunate for our stockholders that
the Company continues to be put in the same category as subprime lenders,
when essentially we have no exposure to subprime loans. In anticipation of
a downturn in the industry, Impac, since January 2006, began increasing its
loan loss reserves, preserving capital, increasing its pricing and
tightening its underwriting guidelines with the intent to further improve
the performance of our Alt-A mortgage portfolio."
While they seem to have taken some good steps to protect their company, a 40% decline in originations and $75 million in loans "held for sale" are definitely not great selling points. This is a very strong statement considering Countrywide’s stance on their Alt-A securities.
Last 3 posts by Morgan
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