Home lending activity slipped at Impac Mortgage Holdings Inc., though year-over-year performance benefited from a prior acquisition. The servicing portfolio ballooned by half but has since deflated.
Residential loan originations during the three months ended Sept. 30 came to $2.303 billion.
The production details, as well as other operational and financial statistics, were covered in the Irvine, California-based mortgage banking firm’s earnings report for the third quarter of this year.
Business declined from the previous quarter, when $2.604 billion in mortgage originations were generated.
But activity soared past the $0.924 billion in home loans funded during the same three-month period last year.
The year-over-year surge reflected the January 2015 acquisition of CashCall Inc.
From Jan. 1, 2015, through Sept. 30, Impac originated $7.320 billion.
Third-quarter 2015 business included $1.286 billion in retail originations, $0.409 billion in loans from the wholesale channel and $0.609 billion in correspondent acquisitions.
Impac reported that it serviced $6.088 billion in residential loans as of the end of September 2015.
The servicing portfolio exploded from just $4.061 billion three months earlier and has grown many times over from only $1.248 billion a year earlier.
But the growth in servicing has yet to translate into servicing profits.
“The increase in losses on the mortgage servicing rights in the third quarter of 2015 and YTD 2015 as compared to the prior year is predominately due to declines in interest rates and prepayments experienced,” the report stated.
However, the servicing portfolio has since been slashed with the October 2015 sale of mortgage servicing rights on $3.5 billion in loans.
Before income taxes, Impac earned $20 million in the third-quarter 2015. Income picked up from $17 million in the prior three-month period and swung from a $1 million loss during the same three months last year.
