Impac Mortgage Holdings Fires 47 Percent Of It’s Employees

By Steve
November 13, 2022
2 min read

Impac Mortgage Holdings Fires 47% Of Its Employees After Posting $13 Million Loss In 3rd Quarter Of 2022

impac mortgage holdingsImpac Mortgage Holdings had a $13 million loss in the third quarter of 2022. This is leading leadership to adopt a defensive posture. They need to try and navigate one of the most challenging markets in decades. So, they slashed 47% of it’s workforce.

Executives at Impac Mortgage Holdings have also opted to pull back on non-QM products.

Impac Mortgage Holdings CEO George Mangiaracina told the media:

Interest rate and credit spread pressures with attendant market volatility and illiquidity were unrelenting in the third quarter of 2022. The company adopted a defensive risk-off posture in the fourth quarter of 2021. It remains measured and disciplined in its origination and capital markets activities.

3rd quarter losses are down slightly from the$13.5 million loss in the second quarter of 2022. However, the losses are much worse compared to the $2 million profit in the third quarter of 2021.

Impac said that surging interest rates caused it to take a major hit in profitability. 

Mortgage originations declined from $682.6 million in the 3rd quarter of 2021 to $128.1 million in the 2nd quarter of 2022. They continued to slide to $62 million in the 3rd quarter of 2022. Meanwhile, non-QM originations fell to $49.6 million in Q3 2022. This is down from $80.2 million in the 2nd quarter of 2022 and $186.2 million in Q3 2021.  

Lower originations brought layoffs. As a result, expenses came in at $11 million in the third quarter of 2022. This is down from $14.6 million in the previous quarter. It is also down $19.7 million from the same period of 2021.   

Impac Mortgage Holdings’ servicing business also took a hit. Impac’s portfolio was at $69.6 million on June 30, 2022. This is compared to $71.8 million on December 31, 2021 and $65.1 million on September 30, 2021. Impac also continues to sell whole loans and selectively retain Ginnie Mae’s mortgage servicing.

Also, Check Out More Articles About The Imploding Lending Industry On Lender Meltdown.

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