The effects of discontinued operations resulted in Impac Mortgage Holdings reporting a 1Q13 loss of $738,000, compared with a 1Q12 loss of $4.8 million.
Its mortgage lending business had a $671,000 profit for the period, while real estate services added another $2.3 million.
However, its long-term mortgage portfolio reported losses of $3.9 million (still an improvement over the $6.4 million loss one year prior). The difference was Impac received an income tax benefit in 1Q13 of $1.1 million. The benefit was a result of Impac increasing its ownership in AmeriHome Mortgage Corp. to 80%.
Discontinued operations lost $876,000, an improvement over the $1.3 million loss in 1Q12.
Impac had mortgage originations of $674 million in 1Q13 versus $
In its 1Q13 press release, Impac said it started to experience
The company admitted to reducing pricing to capture or maintain origination volume.
“In addition, our operating costs were higher with the overcapacity in operations expecting higher volume than experienced in the first quarter. Also, the implementation of our new loan origination system has been more challenging than anticipated. Upon implementation, we expect this new system will result in better operational efficiencies to support a larger amount of production in the future. With this not yet occurring, our operating expenses were higher than expected,” the company said.
As of March 31, Impac had a $1.7 billion servicing portfolio, up from $1.5 billion at the start of the quarter.
Joseph Tomkinson, chairman and CEO, said, “Even though the first quarter saw margin compression and reduced origination volumes from the end of last year, our second quarter is shaping up nicely with April recording our largest amount of loan locks since 2010, and a total pipeline in excess of $800 million. As of April 30, our jumbo product had a pipeline of $25 million with a continued roll out of the program in wholesale and correspondent expected during the second quarter.”
