Impac Mortgage Holdings, Irvine, posted a profit just shy of $1 million in the third quarter, a 68% decline from the same period last year, as it struggles to generate new revenue from its mortgage and real estate service businesses.
In a statement, the publicly traded Impac noted that revenues "from these businesses have primarily been generated" from its long-term mortgage portfolio, adding that "Despite our efforts to expand these services, we have encountered challenges in selling these services to third-parties."
It adds "Furthermore, since these businesses are recently established there remains uncertainty about their future success."
The businesses include monitoring, surveillance and recovery operations related to mortgages and real estate, as well as title and escrow fees services. It also is engaged in loan modifications.
A former player in the alt-A market, Impac has been brokering loans of late, and recently announced plans to launch a wholesale division.
In 3Q, fees from its mortgage and real estate-related businesses generated $15.5 million in fees, compared to $13.5 million in 3Q 2009.
