CashCall’s mortgage operations will operate as a separate division of Impac Mortgage Corp. under the name CashCall Mortgage.
The acquisition would fall in line with the lender’s current growth in the market and positions the company to continue to roll out its new ALT Qualified Mortgage loan programs to consumers directly.
CashCall Mortgage’s operations are a centralized retail call center where loan applications are received and taken by loan agents directly from consumers and through the internet.
In the fourth quarter of 2014, CashCall’s mortgage division volume was approximately $800 million and is expected to add significant retail direct origination volume to Impac’s Mortgage platform beginning in 2015.
The transaction is structured as a purchase of certain assets of CashCall, including CashCall Mortgage’s call center and lead management technology, integrated with its highly customized loan origination system.
Impac and CashCall have been doing business on a correspondent basis since 2013.
“The CashCall Mortgage name adds significant brand equity to the Impac franchise. Additionally, we believe that the expansion of product capabilities and geographical footprint, for both sides, will create significant strategic and financial benefits,” said Joseph Tomkinson, chairman and CEO of Impac Mortgage Holdings.
“This transaction increases the scale of our overall platform which is expected to leverage existing infrastructure and enhance profitability. Furthermore, increased profitability will accelerate the ability to monetize the value of tax loss carry forwards,” Tomkinson added.