A lone correspondent client was single handedly responsible for a quarter-over-quarter doubling of new business at Impac Mortgage Holdings Inc. The servicing portfolio was reduced.
Mortgage loan originations were $0.924 billion during the third quarter, earnings data indicate.
It was the most quarterly volume for Impac since at least 2007, when it previously exited mortgage lending originations.
The strong gain was “primarily due to the bulk purchases from one correspondent seller.” Correspondent acquisitions soared to $0.747 billion from just $0.271 billion in the second quarter.
The new non-Qualified Mortgage product rolled out in the third quarter has helped wholesale business and is expected to lift correspondent activity in the fourth quarter.
Impac cited data from Deutsche Bank that projects non-QM lending to jump from $50 billion annually to as much as $600 billion annually.
“We want to be in a position during 2015 to capture as much non-QM market share as possible,” the Irvine, Calif.-based company proclaimed.
The Alt-QM product is being bankrolled by Macquarie Group.
Impac originated $0.465 billion in the second–quarter 2014 and $0.576 billion in the third-quarter 2013.
During the first nine months of this year, $1.742 billion was originated.
Impac serviced $1.248 billion in residential loans as of Sept. 30, reducing the portfolio from $1.572 billion as of June 30 and $2.689 billion as of Sept. 30, 2013.
Earnings were an $0.9 million dollar loss before taxes, swinging from an $0.8 million second-quarter profit.
But Impac cut its losses from $5 million a year earlier.
