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The OC Register’s Matt Padilla reports on Impac’s 1st quarter earnings loss of $121.7 million. This is a huge loss for a company that led a PR barrage that claimed the Alt-A lender as separate from the subprime mess.
Clearly, they have been swallowed up whole. As I’ve said from the beginning, FICO scores are a red herring. It’s all about debt to real income and the capacity of home owners to make their mortgage payment when it recasts. As we’re learning quickly – FICO scores don’t make your mortgage payment.
Impac and its $1.1 billion in 90-day delinquent Alt-A loans would have to agree.
Those that have been reading here know that the Alt-A market has been in trouble for a while, under the radar, as mortgage backed securities made up of Alt-A loans have been basically illiquid for months now.
Last 3 posts by Morgan
- Subprime Bananas - June 28th, 2009
- Roubini: No confidence in government exit strategy - June 24th, 2009
- Goldman bonuses largest in firm's 140-year history - June 21st, 2009
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