Quarterly home lending sank by over a fourth at Impac Mortgage Holdings Inc. and is likely plunging during the current quarter.
Before income taxes, the Irvine, California-based organization earned $17 million during the three months ended Dec. 31, 2016.
Those details, along with other operational and financial results, were presented in Impac’s fourth-quarter 2016 earnings report.
Earnings increased from $16 million three months earlier but sank from $59 million one year earlier.
Residential loan originations from Oct. 1, 2016, through Dec. 31 totaled $3.111 billion. Business tumbled from $4.217 billion in the third quarter but was improved from $1.939 billion during the final-three months of 2015.
Fourth-quarter 2016 volume was comprised of $2.250 billion in retail loan originations, sinking 31 percent from the third quarter; $0.320 billion in wholesale lending, down 11 percent; and $0.540 billion in correspondent acquisitions, off 7 percent.
Overall mortgage production during all of 2016 totaled $12.924 billion, climbing from $9.259 billion in 2015.
First-quarter 2017
home-lending activity is poised to plummet based on the locked pipeline, which plunged to $0.6 billion during the final quarter of last year from $1.2 billion in the third-quarter 2016.
But despite sinking quarterly originations, Impac Chairman and Chief Executive Officer
Joseph Tomkinson is optimistic, calling 2016 “our best year in over a decade.”
Tomkinson noted that rising rates will help the company to substantially grow its origination of loans that don’t meet the Qualified Mortgage standard and diversify its product offerings.
As of
year-end 2016, Impac serviced $12.352 billion in home loans, increasing from $9.451 billion as of Sept. 30 and $3.571 billion at the end of 2015.
“With our strong loan retention capabilities, we were able to take advantage of the low interest rate environment and create a low weighted-average coupon servicing portfolio,” Tomkinson added. “As a result of the current rising rate environment, our servicing portfolio continues to increase in value and generate larger amounts of servicing income.”
