New Programs Increase Impac’s Production

Impac Mortgage Holdings Inc. had a 173% increase in mortgage loan volume in 2012 over 2011, which helped contribute to a 93% increase in net earnings from its continuing operations.

However, a $15.5 million loss attributed to the company’s discontinued operations resulted in Impac having a net loss of $3.4 million for 2012, compared with net earnings of $3.2 million in 2011. For 4Q12, a net loss of $517,000 includes $2.1 million attributed to discontinued earnings, versus a profit of $748,000 in 4Q11.

Take away the discontinued operations line, Impac earned $12.2 million, up from $6.3 million in 2011.

Mortgage origination volume was $2.4 billion for the year, up from $883 million during 2011. Wholesale provided 55% of 2012 production, with 28% from retail and 17% wholesale.

Among the programs the company added during the year were prime jumbo, Federal Housing Administration 203(k) and reverse mortgages. Its servicing portfolio as of Dec. 31, 2012 was $2.2 billion, up 260% from $605 million in 2011.

By segment, mortgage lending earned $4.3 million in 4Q12 and $16.6 million for the full year, compared with a loss of $2.9 million and $11.6 million for the same periods one year prior.

Impac increased its warehouse capacity to $217.5 million at Dec. 31, 2012 from $87.5 million one year earlier. Subsequently, it has obtained a new warehouse line that adds an additional $100 million in capacity.

The real estate services business contributed net earnings of $12.6 million in 2012, down from $19.9 million, while its mortgage investment portfolio lost $17.1 million, compared with a loss of $2 million one year prior.

Impac said that while wholesale will continue to be a key component of its originations platform, it will focus on growing retail and correspondent in an effort to balance out volume across all three sources.