The near collapse of the market for securities backed by sub-prime loans has sent aftershocks into the broader mortgage market, pressuring some companies to curtail their lending or stop making loans altogether, the Los Angeles Times reports.

Irvine-based Impac Mortgage Holdings Inc., whose executives have complained about being lumped with struggling sub-prime lenders, suspended the funding of alt-A mortgages Tuesday.

Such loans — Impac’s chief product — are not as risky as sub-prime but also aren’t worthy of so-called prime status.

Impac said it would fund only those loans eligible for sale to government-sponsored entities such as Fannie Mae and Freddie Mac. The company also has cut expenses and workers nationwide.

“While this is a difficult and painful decision, we believe that it’s a prudent strategy in light of the current business environment,” Impac Chairman Joseph Tomkinson said in a statement.

Typical Impac borrowers include self-employed workers who have decent credit but do not qualify for prime lending rates because their income may be seasonal or irregular. In a filing in March, the company said 91% of the loans it transferred to its portfolio last year were alt-A mortgages.

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