IRVINE, CA—Impac Mortgage Holdings has reached a deal to acquire the mortgage operations of CashCall Inc.
In 2013, CashCall's mortgage division was ranked by the Mortgage Bankers Association as the 31st largest residential mortgage originator with approximately $6.5 billion in total originations. In 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 considers the acquisition to be a major strategic accomplishment as it adds a centralized retail call center to Impac Mortgage Corp.'s current business to business origination channels. With this acquisition, Impac Mortgage Corp. is expected to be a top ranked nationwide mortgage originator, offering a full spectrum of loan products including agency conventional, non-agency, prime jumbo and non-qualified mortgages.
“The CashCall Mortgage name adds significant brand equity to the Impac franchise,” said Joseph Tomkinson, chairman and CEO of Impac. “Additionally, we believe that the expansion of product capabilities and geographical footprint, for both sides, will create significant strategic and financial benefits. This transaction increases the scale of our overall platform which is expected to leverage existing infrastructure and enhance profitability. Furthermore, increased profitability will accelerate the ability to monetize the value of tax loss carry forwards.”
CashCall Mortgage's operations are a centralized retail call center where loan applications are received and taken by loan agents directly from consumers and through the internet. The transaction is structured as a purchase of certain of the assets of CashCall, including CashCall Mortgage's call center and lead management technology, integrated with its highly customized loan origination system. CashCall Mortgage is expected to operate in the same facility as today with the current employees to be hired by Impac Mortgage Corp.
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 Impac's decision to complete the acquisition. The acquisition is expected to unlock opportunities by expanding CashCall Mortgage's geographic footprint from 11 licensed states up to 42 states.
© Touchpoint Markets, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to asset-and-logo-licensing@alm.com. For more inforrmation visit Asset & Logo Licensing.