Impac Mortgage, an Irvine, California-based lender, saw first quarter 2013 mortgage loan originations soar 85% higher than originations during first quarter 2012.
The mortgage company said it expects to see similar production activity in the foreseeable future but plans on shifting its growth strategy towards correspondent lending, rather than retail and wholesale.
The correspondent lending channel is expected to grow as the mortgage and housing market improves, Justin Moisio, director of investor relations said.
Impac’s wholesale channel is currently the most vibrant, making up 46% of the total US$673.8m first quarter mortgage originations (up from US$ 365.1m in originations in 1Q2012). Retail and correspondent lending made up 31% and 23% of the remaining originations.
Correspondent lending will make up one-third of originations, ideally, Moisio said.
In terms of overall product mix, loan refinances drove the majority of originations during the quarter, making up approximately 70% of all originations, Moisio said. About three-quarters of all loans produced were conventional, and the remaining was a mix of government (USDA, VA, FHA) and jumbo product, he added.
However, the company did experience a decline in overall originations since 4Q2012. Originations dropped from US$813.2m in Q42012, a 17% decline, which was said to be attributed to seasonal declines during the first quarter.
Mr. Joseph Tomkinson, Chairman and CEO of Impac Mortgage Holdings, Inc., commented, “Even though the first quarter saw margin compression and reduced origination volumes from the end of last year, our second quarter is shaping up nicely with April recording our largest amount of loan locks since 2010, and a total pipeline in excess of US$800m. As of 30 April, our jumbo product had a pipeline of US$25m with a continued roll out of the program in wholesale and correspondent expected during the second quarter.