Irwin Financial Corporation said Friday that it expects to report a $15 to $20 million loss for the fourth quarter of 2007 due to effects of the mortgage and housing markets. The company said it is facing “continued deterioration of credit conditions” in its various housing-related portfolio — primarily in home equity mortgages, although Irwin CEO Will Miller also said the firm was seeing “softening” in commercial real estate as well. Irwin will absorb $5 million in restructuring charges as the company laid off staff amid deteriorating industry conditions, although it did not specify the number of job cuts it had made. “In our home equity segment, we are being negatively affected by the non-core portfolio we transferred from ‘held-for-sale’ when the secondary market collapsed in the first quarter of 2007,” said Miller. “These loans, which were originated for sale and did not meet our core portfolio credit guidelines, are adding to our delinquencies and required provision at a rate that is disproportionate to the portfolio as a whole.” Miller also said Irwin is facing “greater than expected” losses on HLTV loans, where LTV at origination approached 100 percent. The bank will also set aside an unspecified amount of loan loss reserves within its commercial banking segment to account for exposure to housing problems in the Midwest and West. For more information, visit http://www.irwinfinancial.com. Disclosure: The author held no positions in IFC when this post was published.