New York Mortgage Company Losses Worse Than Thought

New York Mortgage Trust Inc. said Tuesday that its fourth-quarter loss was wider than reported earlier, due to a bigger than expected increase in home loan loss reserves.

The reserves were associated with the New York mortgage provider’s home loans that were made (originated) in 2006 and repurchased in February and March 2007.

The actual net loss for the quarter after the correction was $9.6 million, or 53 cents a share, the residential mortgage company, which was exploring strategic options, said in a statement.

The mortgage lender had on March 15 reported a loss of $8.8 million, or 49 cents a share. Analysts had expected a loss of 3 cents per share, before special items, according to Reuters Estimates.

Shares of the mortgage company, which has struggled in the past fiscal year like so many others, had fallen over 13 percent in March following its weak results.

The company had in March said it was planning to exit its mortgage lending business to which it had attributed its already sizable fourth-quarter loss.

Also Tuesday, the company said it completed its $13.5 million asset sale of its New York mortgage lender subsidiary, New York Mortgage Co., to IndyMac Bank, unit of IndyMac Bancorp Inc.

Indymac has filled most branch employees and loan officer positions, as well as a majority of employees at the subsidiary’s headquarters.

It also assumed a portion of the retention and severance expenses associated with the transaction, the home mortgage company’s officials stated.

SOURCE: Reuters