Impac Mortgage Holdings Inc. is selling a mortgage servicing subsidiary in a move that is expected to free up cash to grow its own servicing portfolio.
The Irvine, Calif.-based company said Tuesday that it has reached an agreement to sell subsidiary AmeriHome Mortgage Corp.
AmeriHome is approved as a seller-servicer for Fannie Mae, Freddie Mac, and Ginnie Mae, according to the press release.
Impac said the transaction, which is subject to change of control requirements by the state and the housing finance agencies, is expected to close in the first quarter of next year.
With a significant gain expected from the sale, the deal is expected to improve near-term cash balances and increase profitability. Cash from the sale will be used to continue building Impac’s servicing portfolio.
In addition, since AmeriHome is a redundant operational platform, the transaction will help streamline Impac’s mortgage operations.
“We believe the sale of AmeriHome mortgage lending platform will give the company additional options as we navigate through the current challenging mortgage market,” Impac Chairman and Chief Executive Officer Joe Tomkinson stated in the announcement. “Looking forward, our goal by the first quarter of next year is to further position the company to take advantage of opportunities in the mortgage lending market as new regulatory rules take effect.”
The buyer was not identified in the news release.
