IMH
I am waiting for IMH's quarterly report. The SEC website has an 8-K for IMH. It is a letter to investors. A pretty strange letter to say the least - the word obfuscate comes to mind. No mention on the status of the almost 30% of its portfolio of loans that matured in the fourth quarter of 2007. It stated that it was dropping its yield to less than 10% due in part to the prepayment of one loan, the proceeds of which had to be put in low yielding money market funds. In talking about defaults it states how much default interest the fund has earned. I guess we will have to wait for the 10-Q to get the real story.
1 comment:
Interesting reading. The section headed Loan Defalts does not mention a single loan that has defaulted, any loans that are anticipated to default, or any plan of action to deal with a loan that defaults. If you check the 9/30 10-K, you will find that there are 10 loans in default, eight of which are are under foreclosure actions. There are some 12 loans with face value of $120 milion, or 27% of the outstanding portfolio, that were scheduled to mature 07Q4, and another 14 loans ($78 mil., 17%) mature 08Q1. No breakout of loan loss reserves or interest reserves. It definitely sounds to me like IMH has experienced significant defaults, anticipates more, knew they had to say something to investors, and then couldn't bring themselves to state the bad news.
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