Impac Mortgage Holdings Inc.’s servicing portfolio has more than doubled over the past year. But year-over-year deterioration was reported for quarterly earnings and originations.
Before the provision for income taxes, the Irvine, California-based firm earned
$7 million during the three months ended mid-year 2017, according to its second-quarter earnings report.
An increase in earnings was made compared to the preceding period, when the total was $5 million. But results came up far short compared to $13 million earned in the same quarter last year.
“The decrease in operating income was primarily due to a decrease in gain on sale of loans of $42.0 million resulting from a 45 percent decrease in total originations volume,” the report said. “Additionally, the decrease was magnified due to a higher concentration of volume in the third-party origination channel, as well as margin compression, due to increased competition caused by less available volume.”
From April 1, 2017, through June 30, Impac originated $1.794 billion. Business was up from $1.580 billion in the first quarter. There was a significant decline, however,
from the second-quarter 2016, when $3.247 billion in loans were closed.
Second-quarter 2017 production was comprised of $1.187 billion in retail originations, $0.301 billion in wholesale lending and $0.306 billion in correspondent acquisitions.
Total originations during the first half of this year came to $3.374 billion.
Impac said that $0.233 billion in loans that didn’t meet Qualified Mortgage standards were
included in the latest total, more than $0.184 billion the previous quarter.
“While we have increased the volume of non-QM loans, we have not increased the volume to the level desired,” Impac said.
Government-insured originations amounted to $0.482 billion during the latest three-month period.
The third quarter is likely to see similar lending activity based on the locked pipeline, which climbed past $0.6 billion in the second quarter from less than $0.6 billion
the prior period.
Impac
serviced $14.668 billion as of June 30, 2017. The servicing portfolio grew from $13.242 billion three months earlier and $6.642 billion one year earlier.
