Impac to Buy UBS-NY Special Servicing

Impac Mortgage Holdings Inc., Irvine, Calif., has executed a letter of intent to acquire the special servicing platform of UBS AG's New York branch, partially in exchange for the issuance of UBS warrants to purchase up to 2% of Impac's stock. In addition, UBS has agreed to contribute specified balances of loans to the platform as part of a strategic alliance with Impac, according to the latter company. The deal is subject to execution of definitive agreements between the two parties and completed due diligence. "This acquisition will allow the company to take advantage of the existing market conditions to subservice for others, along with buying and then servicing ourselves currently available mortgage assets to the secondary market," said Joseph R. Tomkinson, chairman and chief executive officer of Impac. "The special servicing platform will be combined with our master servicing, default department, and real estate auction business to synergistically work together as a fully integrated platform to maximize the success of opportunistic investments in mortgage assets," he said.