Impac Mortgage Holdings Inc. lost $5 million in 3Q13 compared with a loss of $3 million in 3Q12.
The origination business lost $4 million, a drop of approximately $8 million from 2Q13. Loan origination volume was down 26% to $576 million. This was due to rising rates and compressed
There was a shift in the source of Impac’s production, with 37% of it coming from correspondent, up from 19% one year prior, while wholesale fell to 34% from 52% in the same time frame. The retail share remained at 29%.
Impac says it has reduced staffing levels and consolidated branch locations.
Meanwhile, it has increased its mortgage servicing portfolio by 27% quarter-to-quarter to $2.7 billion. It received net servicing fees of $1 million, a 9% increase over 2Q13.
Separately, PHH Corp. lost $52 million in 3Q13, because of a $54 million pretax loss on the prepayment of debt and a $9 million pretax loss on severance costs related to reducing staffing in the mortgage business.
The origination business lost $22 million, compared to a $122 million profit one year prior as interest rate lock commitments declined and gain on sale tightened to 315 basis points from 420 bps.
There was a $28 million loss in the servicing business. The company took an $11 million fair market value adjustment to its portfolio.
