Mortgage woes clip Irwin Financial

April 13, 2007
A troubled mortgage market and a charge-off from a bad loan in Michigan likely will result in a $5 million-$10 million first-quarter loss for Irwin Financial Corp, the Columbus company said today.

The quality of the bank holding company’s traditional mortgage business remains strong, but it said turmoil in the secondary market likely will lead to losses in overall home-equity operations.

The other problem involves a $4.7-million loan for which a borrower made “misrepresentations about collateral,” the bank said. The bank took a $4.2 million charge because it doesn’t believe the borrower will be able to repay the loan.

“While this is not a pleasant way to start the year, we believe both issues are essentially one-time events,” CEO Will Miller said in a statement. “In aggregate, the other aspects of the business are running close to our 2007 plans.”
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