Impac Mortgage Holdings Is Going Broker. Company Says Desperate Times Require Drastic Changes Starting With Winding Down It’s TPO Channel
Impac Mortgage Holdings is going broker. The company announced major changes Wednesday. It said it was converting to a mortgage broker model. In addition, Impac announcing plans to “wind down” its third-party origination channel. It will also voluntarily giving up its seller/servicer designation with the government-sponsored enterprises.
Impac said the changes are being made in order to better navigate current market and industry conditions.
The goal is to originate a variety of products that serve its national consumer base at a reduced cost per loan. The company says the broker channel will support an expanded suite of loan products and programs.
As part of the change, Impac said it has partnered with established lenders.
It added that it expects non-QM originations to continue to be a dominant product in lending.
Impac Mortgage Holdings Is Ending TPO And Giving Up GSE Designation
The company said it experienced significant volume and margin deterioration in it’s third party origination channel in 2022.
In November, Impac Holdings reported a net loss of $13 million. This is down from net income of $2.1 million. It has not yet released its fourth-quarter or year-end earnings for 2022.
Impac said it will continue to honor its pipeline and related obligations.
In addition, Impac said it intends to voluntarily relinquish its GSE Seller/Servicer designation. FHFA has suspended the company’s designation during these periods of non-delivery.
The company also said it expects to be a third-party originator to support its broker model as needed.
Impac Mortgage Holdings Is Also Relocating
Alongside those announcements, Impac also said it negotiated a buyout in December of its legacy commercial lease for $3 million. This will reduce the company’s office footprint from 120,000 to 19,000 square feet and save the company $8 million.
CEO George A. Mangiaracina said Impac’s proactive initiatives have helped align the stakeholders of the company’s capital stack and reduced its overall operating expense load.
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