After making investments in its production platform, Impac Mortgage Holdings Inc. saw its quarterly originations take off. The next chapter in the playbook calls for the company to establish an agency servicing portfolio.
In 2007, Impac announced that it closed its warehouse, commercial mortgage and all other mortgage lending operations including retail lender Pinnacle Financial Corp.
The Alt-A lender had $2 billion in annual losses that year.
But last year, the Irvine, Calif.-based company said that it restarted loan originations.
“The mortgage lending activities include earning fees for brokering loans to third-party lenders since 2008 and originating loans through our mortgage banking platform under the ‘Impac’ brand name,” last year’s statement said.
On Monday, Impac reported $226 million in residential originations. Business skyrocketed from just $56 million in the first quarter. Most of the production was generated from mortgage brokers.
But the growth came at a cost.
Around $2 million was invested in mortgage lending operations infrastructure on the West Coast and the Gulf Coast. Out of first-quarter production, $126 million was originated by the new offices.
Warehouse capacity sat at $78 million as of June 30. Another $25 million line established in August puts total capacity above $100 million.
Impac said that it eventually plans to build a mortgage servicing portfolio.
Second-quarter earnings fell to $0.4 million from $3.3 million a year earlier.
“Through the remainder of 2011, the company will continue to focus on expanding the residential mortgage lending operations profitability, increasing volumes through retail and wholesale channels, and selling loans to Ginnie Mae, Freddie Mac and Fannie Mae thereby expanding the servicing portfolio,” Impac Chairman and Chief Executive Officer Joseph Tomkinson said in the report. “As the real estate market continues to struggle, the Company seeks to expand its high margin portfolio loss mitigation and real estate services to third parties.”
