Impac Mortgage Holdings Inc (IMPM)

[jwnoble3]

2018 should be a year of transformation and value growth at Impac...

These retained portfolio values rise as i-rates increase:
- Servicing rights 3Q value ~$159 million
- servicing portfolio continues to grow, soon will be nearing almost $10 million per quarter in servicing income in 2018
- September 30, 2017, increased servicing portfolio from the end of the second quarter by 7%, bringing the portfolio to approximately $15.7 billion

These further strengthen the balance sheet:
- Beginning in 2018, the contingent consideration will no longer be on Impacs balance sheet

Next steps the company should undertake IMO-
- Need to complete non-agency securitization when the return to company is best.
- expand into areas that are easy to originate (highest returns)
- Need to re-structure o/s prefs so all future value flows to common

Once the retained portfolio is generating sufficient revenue to cover operating costs+, the company should resume dividends.

Link to transcript from the last Q call:
https://seekingalpha.c...