Impac preannounced $950 million in April originations during the 1st Q call. I could see 30% or more in origination growth possible.
Survivor from 'Alt-A' Era Loosens Standards in Bid to Boost Volume
by Kate Berry
JUL 13, 2015 4:01pm ET
Outlook for the remainder of 2015
We expect the economy to post a stronger second half, especially in the housing sector. Real growth should average a bit over 3 percent, and the unemployment rate will decline a little bit more in the next six months. Wage gains, which have disappointed so far, should accelerate.
The recovery from a weak first quarter accounts for some of the expected strength in the second half of the year. A second factor is the Federal Reserve's decision to defer any tightening of monetary policy until compelling evidence accumulates for a stronger labor market and inflation near the Fed's 2 percent target rate. By delaying to September – or possibly later – the interest rate increase that had been expected in June, the Fed is giving the economic engine more time to quit sputtering and to start hitting on all cylinders.
The housing sector will benefit from the delay in monetary tightening. For the year as a whole, we expect housing starts to increase 14 percent and single-family mortgage originations to increase 8 percent. Strong housing demand combined with continued tight supply, should boost house prices by over 4 percent this year. The improvement in house prices should support an eventual increase in the supply of homes for sale as the number of homeowners with negative or negligible equity continues to shrink. Nonetheless supply is expected to remain on the tight side.
Forecast for April was $950 million during the last Q conference call. They would have beat that and were expanding ops in the Q.
If Impac had $100 million cash, they could retain their MSRs and possibly acquire more. That would take the bite out of interest rate increases.
There is a $160 million reason why they won't agree to a buyout. IRS rules under section 382 don't allow ownership changes.
They recognized $24 million 1st Q from the DTA. Expect large profits each Q, as they write up the value.
BY KATE BERRY
APR 27, 2015 4:24pm ET
Home lending at most large and regional banks soared in the first quarter and loan pipelines are bulging heading into the second quarter, early signs that 2015 could be a strong year for the housing market.
"All the metrics that we are following in the mortgage business are positive at the moment," Grayson Hall, the chief executive at Regions Financial, said on an April 21 conference call with analysts. "We, like most people, anticipate a very strong second and third quarter."
Mike Fratantoni, the MBA's chief economist, said that the purchase market has been aided by the introduction of 3% down payment loans by Fannie Mae in December and Freddie Mac in March. Lower down payment requirements for jumbo loans also have helped boost lending.
"We're at an inflection point where refinances are getting some lift and purchase volume is doing really well," said Marty Mosby, director of bank and equity strategies at Vining Sparks in Memphis.
On the earnings call, the company said to expect $950 million in April originations. Do we have to wait until August to find out?
This seems like data that an insider could use to buy more shares. I see a lot of October call options trading.