Impac Mortgage has announced the sale of its brick and mortar retail operations to Prospect Mortgage for an undisclosed sum.
The company plans to maintain its call center operations in Irvine, California, including a reverse mortgage origination channel.
The sale will not impact Impac’s reverse mortgage business, a company spokesman told RMD.
Impac first entered the reverse mortgage space in 2007, with subsequent pushes to grow its retail channel including a hiring and expansion effort in 2012. The company has originated a handful of mortgages monthly in recent years; having closed roughly six reverse mortgages monthly, on average, during 2013.
The sale of its branches was in an effort to focus on other lending channels, Impac CEO Joe Tomkinson said upon announcing the branches were for sale in December.
“With these steps, we believe the Company will be more competitive in the current challenging mortgage market and better positioned to take advantage of opportunities as they arise,” he said.
The company cited the regulatory environment as leading in part to the sale.
“In light of the significant regulatory and compliance changes that are occurring in January of 2014 and expected to add significant complexities to the already challenging mortgage market, we are taking advantage of an opportunity to sell our active “brick and mortar” retail lending branches and centralize our lending operations,” the company said in a press release. “As part of this transaction, we will be eliminating 23 retail branch locations and a fulfillment center, and reducing our current headcount by approximately 180 employees, which we anticipate will result in monthly net savings of approximately $700,000.”
Written by Elizabeth Ecker