Impac Mortgage Holdings Inc. expanded its servicing portfolio and had a quarter-over-quarter gain in originations. But earnings deteriorated.
In its third-quarter 2017 earnings report, the Irvine, California-based company disclosed net earnings before income taxes of $4 million.
Income plummeted from $16 million earned in the same-three months last year. It was also worse than $7 million during the preceding three-month period.
The year-over-year deterioration reflected severely less revenues from gain on sale of loans as a result of lower production.
Mortgage originations came to $2.084 billion during the latest three-month period, improving from $1.794 billion in the second quarter. But business was halved from $4.217 billion in the third-quarter 2016.
For all three quarters of this year that have completed, mortgage production amounted to $5.458 billion.
Retail production accounted for $1.426 billion of the latest quarterly activity, while wholesale lending was $0.282 billion, and correspondent acquisitions were $0.376 billion.
Impac noted that non-QM loans and government mortgages accounted for 35 percent of third-quarter 2017 lending. The share widened from just 12 percent in the report a year ago.
“We continue to believe there is an under-served mortgage market for borrowers with good credit who may not meet the qualified mortgage guidelines set out by the Consumer Financial Protection Bureau,” the report said.
Impac serviced loans with an aggregate unpaid principal balance of $15.703 billion as of Sept. 30, 2017. The servicing portfolio was up from $14.668 billion three months earlier and $9.451 billion one year earlier.
