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Impac’s Survival Plan

Impac Mortgage Holdings Inc. hopes its recent acquisition of a conforming retail lender, as well as its entry into reverse mortgage lending, will enable it to survive.

In response to UBS analysts who reportedly set its share price target at $0, the Irvine, Calif.-based company released a statement today reiterating its ability to continue funding conforming mortgages.

“I would like to disclose to our stockholders that this UBS analyst wrote this report without speaking to management since our earnings conference call on May 11,” Impac Chairman and CEO Joseph R. Tomkinson said in the statement. “We believe that his comments are largely speculative and are adding to the volatility of the stock price.”

Impac yesterday announced the temporary suspension of Alt-A business — which had been its primary niche. Today’s announcement said its May acquisition of Pinnacle Financial Corp. made it “a nationwide retail lender with expertise in conforming agency loan programs.”

In addition to stepped up conforming business, Impac hopes to offset lost Alt-A production with wholesale and retail reverse mortgage originations, for which it said it has secured definitive agreements to begin originating and selling.

The real estate investment trust repeated yesterday’s statements that it has met all margin calls to date, declared a stock dividend on July 31 and negotiated the sale of $1 billion in warehoused loans.

“We continue to believe that we can successfully navigate through this cycle,” Tomkinson added.

Related:

Alt-A Lender Halts Alt-A Loans
Impac Mortgage Holdings Inc. has suspended new Alt-A business but will continue to fund conforming loans.

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