Five-star Lender Impac Mortgage Holdings Inc. has signed an agreement to acquire the mortgage origination business of one of the largest residential mortgage originators in the U.S.
Five-star Lender Impac Mortgage Holdings Inc. has signed an agreement to acquire the mortgage origination business of CashCall Inc., revealing the name of originator in a deal first announced in December. Terms of the deal were undisclosed.
CashCall’s mortgage division has been ranked by the Mortgage Bankers Association as one of the largest residential mortgage originators in the U.S. It had about $6.5 billion in total originations in 2013, according to its latest figures.
Impac said it believes the acquisition will complement its current origination business model and position the company to continue the roll out its new ALT QM loan programs to consumers directly.
During the fourth quarter of 2014, CashCall’s mortgage division volume was approximately $800 million and is expected to add “significant retail direct origination volume” to the Impac Mortgage Corp. platform beginning in 2015.
CashCall’s mortgage operations will operate as a separate division of Impac Mortgage Corp. under the name CashCall Mortgage. Impac added the deal is expected to add “a centralized retail call center.”
Impac Mortgage Corp. has been doing business with CashCall on a correspondent basis since 2013, and CashCall’s overall loan performance and delivery has reinforced the company’s decision to complete the acquisition, according to Impac.
Additionally, the acquisition is expected to expand CashCall Mortgage’s geographic footprint from 11 licensed states up to 42 states.
Impac, headed by Chief Executive Joseph Tomkinson, recorded about $31.2 million in revenue in 2013.
