Impac Mortgage Holdings (IMH) reported a net loss in the first quarter of $4.8 million, or a loss of 61 cents a share, shrinking its year-ago loss of $987,000, or a loss of 12 cents a share.
However, an increase in originations and sales through Impac's subsidiary Excel Mortgage Servicing helped to boost the bottom line of its mortgage and real estate service segment.
A $1.3 million loss from discontinued operations after a $350,000 loss in the first quarter of 2011 contributed to the Irvine, Calif.-based mortgage company's first quarterr loss, driven by additional repurchase provisions from legacy loan sales completed in prior years by its discontinued non-conforming mortgage loan operations.
But Impac reported a significant expansion of its mortgage lending activities in the first quarter. Through Excel Mortgage Servicing, Impac’s residential mortgage originations increased more than 500% to $365 million from $57.3 million a year earlier.
The surge in originations resulted in a larger mortgage servicing portfolio at Excel Mortgage Servicing of $891.7 million in unpaid principal balance, a more than 400% increase from the March 31, 2011 balance of $172.6 million.
Impac sold $249.2 million in service retained loans to Fannie Mae and Freddie Mac, issued $78 million in Ginnie Mae securities and sold $28.5 million in loans on a service released basis to other investors.
The company also reported that it sold $250 million in unpaid principal balance of Fannie Mae servicing rights in the first quarter with an expected transfer date in May. Warehouse borrowings capacity rose to $118.5 million from $87.5 million at December 31.