Impac Mortgage, Starwood Property Trust formalize non-QM collaboration

The companies entered a strategic relationship for the origination and securitization of non-QM residential loans

By Francis Monfort

27 Jun 2018

Impac Mortgage Holdings and Starwood Property Trust have formalized their relationship after collaborating in the non-qualified mortgage (QM) space for a number of years, the companies announced.

Under a strategic relationship, the two companies will collaborate on the origination and securitization of non-QM residential loans.

Starwood has agreed to purchase up to $600 million of non-QM loans that meet its investment criteria originated by Impac over the next 12 months. Impac will retain the right to co-invest, along with Starwood, in future Starwood-sponsored securitizations that contain non-QM loans originated by Impac. The arrangement allows Impac to further increase its non-QM loan production.

Starwood is currently on an initial securitization of non-QM loans that will be fully backed by Impac non-QM collateral. Impac expects to co-invest in the securities issued under the initial securitization. The company also anticipates co-investing in future Starwood securitizations.

"We are excited to formalize our partnership with Impac, which we believe will help scale our opportunity to provide non-QM loans to high-quality borrowers while sourcing investments that will continue to deliver strong risk-adjusted returns for STWD shareholders,” Starwood Capital Group Senior Vice President Steven Ujvary said. “Impac is a proven market leader in the non-QM space and we have collaborated on the acquisition of approximately $900 million of Impac-originated non-QM loans."

“After having collaborated in the non-QM space for several years, we are excited to formalize our existing Starwood relationship,” Impac President George Mangiaracina said. “This arrangement will further Impac's competitive advantage in the non-agency segment of the residential mortgage market and permit the company to participate in the longer-term economics of the loans we originate."