Earnings swung to a loss at Impac Mortgage Holdings Inc., and the company’s chief is out. Retail lending led a plunge in originations even as non-QM business soared.
The Irvine, California-based company revealed in its fourth-quarter 2017 earnings report that it suffered a $28 million loss before taxes.
Earnings swung from a $17 million profit in the final-three months of 2016 and a $4 million profit in the preceding three-month period.
An after-tax charge of $20 million was the result of the Tax Cuts and Jobs Act.
From Oct. 1, 2017, through the end of last year, Impac originated $1.654 billion — including $0.932 billion in retail production, $0.255 billion in wholesale lending and $0.467 billion in correspondent acquisitions.
Business fell from $2.084 billion in the third quarter and plummeted from $3.111 billion in the fourth-quarter 2016.
Full-year 2017
mortgage production amounted to $7.112 billion, sinking from $12.924 billion the prior year. Retail lending plunged 52 percent, wholesale activity was off 19 percent and correspondent business tumbled 26 percent.
The origination of loans that don’t meet the requirements for a Qualified Mortgage soared 208 percent from 2016 to $0.891 billion last year.
As of Dec. 31, 2017, Impac serviced $16.3 billion,
up from $15.703 billion three months earlier and $12.352 billion a year earlier.
While Impac didn’t provide staffing numbers, an annual decrease of $35 million in personnel expense was “primarily related to a reduction in commission expense due to a decrease in loan originations as well as staff reductions made in 2017.”
The report indicated that Joseph R. Tomkinson will leave his roles as chairman and chief executive officer on July 31.
Word of Tomkinson’s departure follows the December 2017 departure of the company’s president, William S. Ashmore.
Taking over Ashmore’s role was George A. Mangiaracina, who is also expected to fill the CEO role when Tomkinson leaves. Mangiaracina joined Impac in January 2015 as executive vice president and managing director.
In addition,
Rian Furey has been named chief operating officer.
