Last month, Impac announced that it has decided to shift to a broker model and wind down operations within its third-party origination channel. The company explained that a broker model allows it to originate various products at a reduced cost per loan.
“Non-transitory inflation and Fed tightening, coupled with widening credit spreads, has reduced the addressable market for our product offerings. Despite competitor consolidation and closures, excess industry origination capacity remains, evidenced by participants pricing to decreased net margins in pursuit of market share,” said Impac Mortgage CEO George Mangiaracina.
While Impac no longer accepts new loan submissions or broker applications, the company said it will “honor our pipeline and related obligations and commitments to our consumer and business partners.”
Want to make your inbox flourish with mortgage-focused news content? Get exclusive interviews, breaking news, industry events in your inbox, and always be the first to know by subscribing to our FREE daily newsletter.