Impac Mortgage Returns to Profit in 2Q
Impac Mortgage Holdings (IMH) returned to a profit for the second quarter despite lower interest and noninterest income. The mortgage lender and servicing outsourcing firm reported earnings of $3.3m, or 39 cents a share, for the three months ended June 30 up from a loss of $3.6m, or 47 cents a share, a year ago, which included a loss of $4.2m on discontinued operations. Interest income for the period fell 47% to about $1.6m from nearly $3m a year earlier. Noninterest income decreased 24% to $16.4m from $21.6m. The company said second-quarter mortgage and real estate services fees rose 19% to $15.7m from $13.2m in 2009. Impac Mortgage said its long-term mortgage portfolio primarily had been generating revenue for its mortgage and real estate services businesses. But the company now plans to generate more fees by providing these services to third parties. During the first quarter, Impac signed an agreement with a third party to assist in credit-risk management and portfolio-surveillance services, as it attempts to expand its portfolio surveillance and recovery-services operations. Write to Jason Philyaw.