Impac Mortgage Holdings (IMH)
, a title, REO and loss mitigation provider, expanded into the mortgage lending space in the first half of 2011 and boosted loan production in the second quarter.
Impac invested $2 million into a new infrastructure and opened new regional offices along the Pacific Northwest and Gulf Coast.
The company said it is focusing on originating mortgages for Fannie Mae
, Freddie Mac
and the Federal Housing Administration and also intends to build a servicing portfolio of similar loans as well. Currently, these three entities guarantee or insure 95% of the mortgage market.
During the first six months of 2011, the new Impac offices originated roughly $282.4 million in agency loans, with $226.3 million written in the second quarter alone.
The company also expanded its warehouse funding capacity an additional $25 million to $102.5 million total by the end of the second quarter.
With all the investments, Impac still reported net earnings of $361,000 or four cents per share, down from $3.3 million in the second quarter of 2010.
Loss mitigation, title and REO fees were down for Impac at $14.3 million in the second quarter, from $15.5 million last year.
"Through the remainder of 2011, the company will continue to focus on expanding the residential mortgage lending operations profitability, increasing volumes through retail and wholesale channels, and selling loans to Ginnie Mae
, Freddie Mac and Fannie Mae thereby expanding the servicing portfolio," said Impac CEO Joseph Tomkinson.
"As the real estate market continues to struggle, the company seeks to expand its high margin portfolio loss mitigation and real estate services to third parties," he added.
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