Mortgage Company said Wednesday that its secondary offering of 6.3 million shares was in effect. The company originally announced on Feb. 14 that it would offer seven million shares of common stock but reduced the offering, citing unfavorable market conditions.

The shares were priced at $12.25. The offering is being underwritten by a group led by Bear, Stearns & Co. Settlement is scheduled for Monday.

IMC also announced that it arranged to increase a line of credit from $25 million to $50 million. The $50 million available under the facility will mature on or before Oct. 15, 1998. The $50 million may be used for general working capital, the company said.

In addition, proceeds from the stock offering will be used to pay $10 million outstanding on the facility, the company said.

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