by Calculated Risk on 3/30/2007 07:16:00 PM

From Reuters: M&T Bank says Alt-A loan woes will hurt earnings

M&T Bank Corp. said on Friday that problems with mortgages that have limited income documentation will hurt first quarter profit.

The bank, based in Buffalo, New York, said the carrying value of its Alt-A loan portfolio that had been held for sale was reduced by $12 million in the first quarter.
...
Meanwhile, the bank also said it would have to repurchase problem loans sold to investors.

Added: Just to make this clear, the problem loans that M&T will repurchase are Alt-A. From the M&T Bank press release:

In addition, M&T is contractually obligated to repurchase previously sold Alt-A loans that do not ultimately meet investor sale criteria, including instances when mortgagors fail to make timely payments during the first 90 days subsequent to the sale date. Requests from investors for M&T to repurchase Alt-A loans have recently increased. As a result, during the first quarter of 2007, M&T accrued $6 million to provide for declines in market value of previously sold Alt-A mortgage loans that are expected to be repurchased.