Investments Lending

Impac Mortgage raises $56 million to expand non-QM production, servicing portfolio

CEO on future growth for Impac

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Impac Mortgage Holdings announced its second stock offering in roughly seven months as it plans to continue fueling its already growing servicing portfolio and non-qualified mortgage production.

The company revealed that it sold $56 million worth of shares of its common stock in a registered direct offering to certain purchasers, including existing beneficial shareholders Talkot Capital and certain entities affiliated with investors Richard Pickup or Todd Pickup. 

Impac stated that it sold 4,423,381 shares of common stock at a price of $12.66 per share, based on the closing price as of April 17, 2017. 

Back in September of last year, Impac first announced that it was reentering the public equity markets again after a long stint away following the financial crisis, raising approximately $37 million in capital.

The major decision to jump back, at the time, came with a strong forecast and plan for growth for the lender.

“The new capital will be used to continue to expand the growth of our servicing portfolio and assist us on our anticipated return to the securitization market with our rapidly growing NonQM production,” Joseph Tomkinson, chairman and CEO of Impac Mortgage, said.

“Additionally, this capital gives us the ability to continue to expand into diversified income platforms and take advantage of strategic opportunities presented to us,” he continued.   

Impac’s involvement in non-QM production isn’t new, but as Tomkinson noted, it is growing.

Lenders finally started to look into the unchartered territory of non-QM lending, about six months after the Consumer Financial Protection Bureau's Qualified Mortgage requirements went into effect at the start of 2014.

And Impac was there ready to assist the underserved market. Bill Ashmore, president of Impac Mortgage, said at the time, “We believe there is an underserved market for these programs where certain borrowers are finding financing for purchase or refinance is either non-existent or available with stringent and costly parameters.”

“We are not new to the non-agency space,” Ashmore added. “We think this market is very similar to what we saw in 1995 when we first created Alt-A loans, and subsequently originated to $90 billion in that product from 1995-2007.”

The move to expand its non-QM production has paid off so far for Impac. Shortly after Ashmore said those comments in July 2014, the company stated that the early indications of the products were very positive for growing its AltQM pipeline.

This latest offering announcement only further reinforces that growth. Impac said it approximately originated $300 million in non-QM loans in 2016. Starting in April of this year, Impac projects to be doing $100 million in non-QM loans a month. 

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