Impac Mortgage Holdings has lifted its moratorium on lending activity – but won’t be returning to the non-QM space yet.
On March 30, Impac announced what was then described as a two-week suspension of all lending activity, citing “liquidity concerns.” In April, the company extended that suspension indefinitely.
On Thursday, Impac announced that it would resume lending.
“2020 has been a more challenging year than any in our industry anticipated,” said George A. Mangiaracina, chairman and CEO of Impac Mortgage Holdings. “In March, we made the difficult but necessary decision to pause originations. We have since taken a number of steps to de-risk the balance sheet and improve our cash reserves, and we are now prepared to return to originating loans, as we have for the past 25 years, through numerous economic cycles.”
However, the lender won’t be making non-QM loans for now. Impac said in a news release that it would “focus on segments of the market that have demonstrated adequate and stable capital markets distribution exits, initially expected to be GSE and FHA/VA lending.”
Impac said that it was “currently evaluating” non-agency jumbo and non-QM products, and would “continue to monitor” the sectors.
“The Company intends to continue to maintain a strict risk management discipline as it navigates its way forward,” Impac said.