Impac Posts Quarterly Losses Again Despite Cutbacks

Nonconforming

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Impac Mortgage Holdings lost $1.2 million this past quarter as total revenue declined by $4.6 million from the same period in 2013.

Irvine, Calif.-based Impac lost $0.13 on a per-share basis in the quarter. The company’s losses are a still an improvement from its $4.9 million loss in the third quarter last year.

The mortgage holding and servicing company partially blamed this on a planned runoff of long-term mortgage assets, which contributed to a $1.7 million decline in real estate services revenue from the same period last year.

Impac lowered its total expenses by 37% from the same time last year, primarily through cutting personnel expenses by 41% to a little over $9 million. The sale of the AmeriHome retail mortgage lending business at the end of last year also contributed to the reduction in expenses.

Even after selling AmeriHome, Impac had a 60% increase in mortgage production volume to $924 million, driven mostly by a single large bulk purchase of whole loans.

The AmeriHome sale, which included $702 million in mortgage servicing rights, and a $2.6 billion bulk MSR sale, contributed to Impac’s servicing portfolio falling to $1.3 billion from $3.1 billion as of the end of 2013.

During the third quarter, Impac started originating non-qualified mortgage loans and its goal for 2015 is to capture as much market share in this product as possible.

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