Shares in the lender will stop trading immediately
Following Impac Mortgage's exit from the TPO channel, the California-based lender's common stock was delisted from the NYSE American.
The exchange said Wednesday that it has suspended trading the common stock of Impac (ticker symbol IMH) from the exchange immediately. The reason for that is Impac is "no longer suitable for listing pursuant to Section 1009 of the NYSE American Company Guide." The lender is currently below compliance with the required $2 million, $4 million, and $6 million stockholders' equity.
"The company informed the exchange that it cannot demonstrate an ability to return to compliance within 18 months of notice from the exchange," NYSE American said in its news release.
Last month, Impac announced that it has decided to shift to a broker model and wind down operations within its third-party origination channel. The company explained that a broker model allows it to originate various products at a reduced cost per loan.
"Non-transitory inflation and Fed tightening, coupled with widening credit spreads, has reduced the addressable market for our product offerings. Despite competitor consolidation and closures, excess industry origination capacity remains, evidenced by participants pricing to decreased net margins in pursuit of market share," said Impac Mortgage CEO George Mangiaracina.
While Impac no longer accepts new loan submissions or broker applications, the company said it will "honor our pipeline and related obligations and commitments to our consumer and business partners."
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