Residential production increased, the mortgage servicing portfolio expanded and earnings swung to a profit during the latest quarter at Impac Mortgage Holdings Inc. The company is posturing itself for growth in retail originations and purchase financing.
The Irvine, Calif.-based firm released its second-quarter earnings report Wednesday indicating that it originated $0.532 billion in mortgages during the three months ended June 30.
Production, which is generated through subsidiary Excel Mortgage Servicing Inc., was better than the first quarter’s $0.365 billion.
Residential volume was $0.226 billion in the same three-month period during 2011.
The latest period included $0.304 billion in wholesale business, jumping from $0.203 billion in the first quarter. Retail closings rose to $0.132 billion from $0.126 billion, and correspondent fundings climbed to $0.082 billion from $0.25 billion. In addition, Impac reported $0.014 billion in “brokered” business, up from $0.012 billion.
“Retail expansion during the second quarter is expected to lead to a corresponding increase in retail production during the third quarter,” the report stated. “Retail production is also expected to increase from the opening of the previously announced reverse mortgage operations.”
In anticipation of upcoming increased purchase financing on foreclosure sales, Impac said it has focused on building a realtor direct network for the last several months. It has also been developing realtor-direct web-based lead generation technologies and marketing tools for loan officers and real estate brokers.
The lender added another $25 million warehouse facility in May, bringing its total warehouse borrowings facilities to $145.0 million.
Impac’s mortgage servicing portfolio finished June at $1.088 billion, growing from $0.892 billion three months earlier.
As of the end of last year, the servicing portfolio stood at $0.605 billion.
While the company sees opportunity in acquiring mortgage servicing rights on recently originated agency loans, it did sell $143 million in servicing during July in a move to manage capital.
“As Excel continues to expand the mortgage lending platform, production volumes, and servicing portfolio, at some point its growth may be limited by available capital,” the report stated.
Impac earned $4 million, swinging from a first-quarter loss of $5 million and growing from less than $1 million in earnings a year prior.
