
| 2011 Overview During 2011, the Company, through its subsidiary Excel Mortgage Servicing, Inc., dba Impac Mortgage (“Impac Mortgage”) significantly expanded its mortgage lending activities by: Increasing its origination capabilities through opening regional production offices in March of 2011; Expanding its warehouse borrowing facilities capacity to $87.5 million as of December 31, 2011 from $42.0 million at December 31, 2010; Increasing the number of states licensed to originate loans to 31; Increasing its mortgage origination volumes to $883.2 in 2011 million as compared to $40.8 million in 2010; Increasing its mortgage servicing portfolio to $605.4 million as of December 31, 2011, as compared to $173.9 million as of December 31, 2010; and Selling $329.1 million in service retained loans to Fannie Mae and Freddie Mac and issued $72.6 million in Ginnie Mae securities through its AmeriHome Mortgage Corp indirect subsidiary, and selling $402.2 million in loans on a service released basis to other investors. During the third quarter 2011, Impac Mortgage received an offer to sell its interest in the title insurance agency. In September and October 2011, the Company sold its interest in Experience 1, Inc., the parent of the title insurance company, for $3.7 million, recording a total gain of approximately $1.9 million. Mortgage and real estate services fees were $56.7 million for the year ended December 31, 2011, compared to $57.2 million for 2010 with the decrease primarily due to the sale of the title company, decrease in portfolio loss mitigation and real estate recovery revenues offset by an increase in mortgage lending net revenues. |