Recovering Lender Posts Small Gain with "Minimal" Volume

Impac Mortgage Holdings, a nonbank lender that has been struggling to recover its financial footing, posted a small profit in 2009 while disclosing that it originated a "minimal" amount of product. Once an alt-A lending giant, Impac generated a $10.8 million profit for the year but paid out $7.4 million of that in the form of dividends to shareholders. No figures were released regarding its origination volume. A large portion of its cash flow comes from residual interests it holds on MBS. The company noted in its earnings report that at yearend cash within its "continuing operations decreased to $25.7 million from $46.2 million at Dec. 31, 2008. The primary sources of cash between periods were cash flow of $30.4 million from residual interests in securitizations, $42.6 million fees generated from the mortgage and real estate fee-based business activities and income tax refunds of $15.8 million, including interest." In the fourth quarter California approved its purchase of a title insurance agency. Impac is based in Irvine, Calif.