Impac Mortgage (IMPM) 10-Q 9 May 16 2016 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2016	May. 02, 2016
Document and Entity Information
Entity Registrant Name	IMPAC MORTGAGE HOLDINGS INC
Entity Central Index Key	1,000,298
Document Type	10-Q
Document Period End Date	Mar. 31, 2016
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		12,322,522
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q1

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
ASSETS
Cash and cash equivalents	$ 18,452	$ 32,409
Restricted cash	4,778	3,474
Mortgage loans held-for-sale	612,777	310,191
Finance receivables	42,179	36,368
Mortgage servicing rights	44,327	36,425
Securitized mortgage trust assets	4,383,334	4,594,534
Goodwill	104,938	104,938
Intangibles assets, net	28,926	29,975
Deferred tax asset, net	24,420	24,420
Other assets	40,593	38,118
Total assets	5,304,724	5,210,852
LIABILITIES
Warehouse borrowings	624,128	325,616
Term financing	29,787	29,716
Convertible notes	24,959	44,819
Contingent consideration	48,772	48,079
Long-term debt	32,141	31,898
Securitized mortgage trust liabilities	4,369,325	4,580,326
Other liabilities	37,614	35,908
Total liabilities	$ 5,166,726	$ 5,096,362
Commitments and contingencies (See Note 14)
STOCKHOLDERS' EQUITY
Common stock, $0.01 par value; 200,000,000 shares authorized; 12,321,170 and 10,326,520 shares issued and outstanding as of March 31, 2016 and December 31, 2015, respectively	$ 123	$ 103
Additional paid-in capital	1,120,809	1,098,302
Net accumulated deficit:
Cumulative dividends declared	(822,520)	(822,520)
Retained deficit	(160,435)	(161,416)
Net accumulated deficit	(982,955)	(983,936)
Total stockholders' equity	137,998	114,490
Total liabilities and stockholders' equity	$ 5,304,724	$ 5,210,852
Series A-1 junior participating preferred stock
STOCKHOLDERS' EQUITY
Preferred stock
Series B 9.375% redeemable preferred stock
STOCKHOLDERS' EQUITY
Preferred stock	$ 7	$ 7
Series C 9.125% redeemable preferred stock
STOCKHOLDERS' EQUITY
Preferred stock	$ 14	$ 14

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	200,000,000	200,000,000
Common stock, shares issued	12,321,170	10,326,520
Common stock, shares outstanding	12,321,170	10,326,520
Series A-1 junior participating preferred stock
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	2,500,000	2,500,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Series B 9.375% redeemable preferred stock
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, dividend rate (as a percent)	9.375%	9.375%
Preferred stock, liquidation value (in dollars)	$ 16,640	$ 16,640
Preferred stock, shares authorized	2,000,000	2,000,000
Preferred stock, shares issued	665,592	665,592
Preferred stock, shares outstanding	665,592	665,592
Series C 9.125% redeemable preferred stock
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, dividend rate (as a percent)	9.125%	9.125%
Preferred stock, liquidation value (in dollars)	$ 35,127	$ 35,127
Preferred stock, shares authorized	5,500,000	5,500,000
Preferred stock, shares issued	1,405,086	1,405,086
Preferred stock, shares outstanding	1,405,086	1,405,086

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Revenues:
Gain on sale of loans, net	$ 53,869	$ 37,398
Real estate services fees, net	2,100	2,742
Servicing income, net	2,088	635
Loss on mortgage servicing rights	(10,910)	(6,568)
Other	152	136
Total revenues	47,299	34,343
Expenses:
Personnel expense	23,965	11,490
Business promotion	9,191	215
General, administrative and other	7,162	5,436
Accretion of contingent consideration	1,895
Change in fair value of contingent consideration	2,942
Total expenses	45,155	17,141
Operating income (loss):	2,144	17,202
Other income (expense):
Interest income	69,327	72,608
Interest expense	(69,428)	(71,550)
Change in fair value of long-term debt		(7,116)
Change in fair value of net trust assets, including trust REO losses	(627)	(876)
Total other (expense) income	(728)	(6,934)
Earnings before income taxes	1,416	10,268
Income tax expense (benefit)	435	(23,704)
Net earnings	$ 981	$ 33,972
Earnings per common share:
Basic (in dollars per share)	$ 0.09	$ 3.54
Diluted (in dollars per share)	$ 0.08	$ 2.94

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - 3 months ended Mar. 31, 2016 - USD ($) $ in Thousands	Preferred Stock	Common Stock	Additional Paid-In Capital	Cumulative Dividends Declared	Retained Deficit	Total
Balance at Dec. 31, 2015	$ 21	$ 103	$ 1,098,302	$ (822,520)	$ (161,416)	$ 114,490
Balance (in shares) at Dec. 31, 2015	2,070,678	10,326,520
Increase (Decrease) in Stockholders' Equity
Proceeds and tax benefit from exercise of stock options (in shares)		150
Stock based compensation			448			448
Common stock issuance		$ 2	2,077			2,079
Common stock issuance (in shares)		155,420
Convertible note share issuance		$ 18	19,982			20,000
Convertible note share issuance (in shares)		1,839,080
Net earnings					981	981
Balance at Mar. 31, 2016	$ 21	$ 123	$ 1,120,809	$ (822,520)	$ (160,435)	$ 137,998
Balance (in shares) at Mar. 31, 2016	2,070,678	12,321,170

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings	$ 981	$ 33,972
Loss on sale of mortgage servicing rights	620	3,474
Change in fair value of mortgage servicing rights	10,920	3,094
Gain on sale of mortgage loans	(38,118)	(19,192)
Change in fair value of mortgage loans held-for-sale	(11,185)	(10,911)
Change in fair value of derivatives lending, net	(5,176)	(7,868)
Provision for repurchases	379	871
Origination of mortgage loans held-for-sale	(2,349,246)	(2,412,206)
Sale and principal reduction on mortgage loans held-for-sale	2,077,141	2,127,743
Losses from REO	1,140	2,670
Change in fair value of net trust assets, excluding REO	(1,256)	(2,932)
Change in fair value of long-term debt		7,116
Accretion of interest income and expense	33,646	39,051
Amortization of intangible and other assets	1,192
Accretion of contingent consideration	1,895
Change in fair value of contingent consideration	2,942
Amortization of debt issuance costs and discount on note payable	211	80
Stock-based compensation	448	244
Impairment of deferred charge	424	309
Change in deferred tax assets		(24,420)
Net change in restricted cash	(1,304)	(2,512)
Net change in other assets and liabilities	3,629	7,880
Net cash used in operating activities	(270,717)	(253,537)
CASH FLOWS FROM INVESTING ACTIVITIES:
Net change in securitized mortgage collateral	131,109	144,792
(Repayments of) proceeds from the sale of mortgage servicing rights	(620)	13,565
Finance receivable advances to customers	(151,404)	(124,206)
Repayments of finance receivables	145,593	79,224
Net change in mortgages held-for-investment	44	43
Purchase of premises and equipment	(61)
Net principal change on investment securities available-for-sale	12	41
Acquisition of CashCall Mortgage		(5,000)
Payment of acquisition related contingent consideration	(4,144)
Proceeds from the sale of REO	10,229	6,173
Net cash provided by investing activities	130,758	114,632
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from common stock issuance	2,079
Repayment of warehouse borrowings	(1,993,732)	(2,021,096)
Borrowings under warehouse agreement	2,292,244	2,346,871
Repayment of line of credit		(7,000)
Borrowings under line of credit		7,000
Repayment of short-term borrowing		(5,000)
Short-term borrowing		5,000
Repayment of securitized mortgage borrowings	(174,436)	(189,288)
Principal payments on short-term debt		(1,844)
Principal payments on capital lease	(153)	(197)
Capitalized debt issuance costs		(50)
Proceeds from exercise of stock options		71
Net cash provided by financing activities	126,002	134,467
Net change in cash and cash equivalents	(13,957)	(4,438)
Cash and cash equivalents at beginning of period	32,409	10,073
Cash and cash equivalents at end of period	18,452	5,635
NON-CASH TRANSACTIONS:
Transfer of securitized mortgage collateral to real estate owned	10,533	9,729
Mortgage servicing rights retained from loan sales and issuance of mortgage backed securities	18,822	22,371
Common stock issued upon conversion of debt	$ 20,000
Goodwill assets related to CashCall acquisition		104,586
Intangible assets related to CashCall acquisition		33,122
Contingent consideration liability related to CashCall acquisition		$ 124,592
Common stock issued related to CashCall acquisition		6,150
Acquisition of equipment purchased through capital leases		$ 413

Summary of Business and Financi

Summary of Business and Financial Statement Presentation	3 Months Ended
	Mar. 31, 2016
Summary of Business and Financial Statement Presentation
Summary of Business and Financial Statement Presentation	Note 1.—Summary of Business and Financial Statement Presentation Business Summary Impac Mortgage Holdings, Inc. (the Company or IMH) is a Maryland corporation incorporated in August 1995 and has the following wholly-owned subsidiaries: Integrated Real Estate Service Corporation (IRES), Impac Mortgage Corp. (IMC), IMH Assets Corp. (IMH Assets) and Impac Funding Corporation (IFC). The Company’s operations include the mortgage lending operations and real estate services conducted by IRES and IMC and the long-term mortgage portfolio (residual interests in securitizations reflected as net trust assets and liabilities in the consolidated balance sheets) conducted by IMH. Beginning in the first quarter of 2015, the mortgage lending operations include the activities of the CashCall Mortgage operations (CCM) ( See Note 2. — Acquisition of CashCall Mortgage. ) Financial Statement Presentation The accompanying unaudited consolidated financial statements of IMH and its subsidiaries (as defined above) have been prepared in accordance with Accounting Principles Generally Accepted in the United States of America (GAAP) for interim financial information and with the instructions to Form 10-Q and Rule 8-03 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments, consisting of normal recurring adjustments considered necessary for a fair presentation, have been included. Operating results for the three months ended March 31, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016. These interim period condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements, which are included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015, filed with the United States Securities and Exchange Commission (SEC). All significant inter-company balances and transactions have been eliminated in consolidation. In addition, certain amounts in the prior periods’ consolidated financial statements have been reclassified to conform to the current period presentation. Management has made a number of material estimates and assumptions relating to the reporting of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period to prepare these consolidated financial statements in conformity with GAAP. Material estimates subject to change include the fair value estimates of assets acquired and liabilities assumed in the acquisition of CCM as discussed in Note 2. — Acquisition of CashCall Mortgage. Additionally, other items affected by such estimates and assumptions include the valuation of trust assets and trust liabilities, contingencies, the estimated obligation of repurchase liabilities related to sold loans, the valuation of long-term debt, mortgage servicing rights, mortgage loans held-for-sale and derivative instruments, including interest rate lock commitments (IRLC). Actual results could differ from those estimates and assumptions. Recent Accounting Pronouncements In April 2015, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2015-03, “ Interest—Imputation of Interest (Subtopic 835-30), Simplifying the Presentation of Debt Issuance Costs ”, which requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability. For public business entities, the ASU is effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Entities should apply the new guidance on a retrospective basis, wherein the balance sheet of each individual period presented should be adjusted to reflect the period-specific effects of applying the new guidance. Upon transition, entities are required to comply with the applicable disclosures for a change in an accounting principle. In August 2015, ASU 2015-15, Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements , was issued to address ASU 2015-03 as it relates to line-of-credit arrangements. Given the absence of authoritative guidance within ASU 2015-03 for debt issuance costs related to line-of-credit arrangements, the SEC staff would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line of credit arrangement. We adopted this change retrospectively on January 1, 2016, which resulted in a $465 thousand reclassification from other assets to Term Financing and Convertible Notes on December 31, 2015. The adoption of this ASU did not have a material impact on the Company’s financial statements. In March 2016, the FASB issued ASU 2016-09, “ Improvements to Employee Share-Based Payment Accounting ”. ASU 2016-09 simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities and classification on the statement of cash flows. This ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016. Early adoption is permitted. The adoption of this ASU is not expected to have a material impact on the Company’s financial statements.

Acquisition of CashCall Mortgag

Acquisition of CashCall Mortgage	3 Months Ended
	Mar. 31, 2016
Acquisition of CashCall Mortgage
Acquisition of CashCall Mortgage	Note 2.—Acquisition of CashCall Mortgage On January 6, 2015, the Company entered into an Asset Purchase Agreement (the Asset Purchase Agreement) with CashCall, Inc. (CashCall), an unrelated entity, pursuant to which the Company agreed to purchase certain assets of CashCall’s residential mortgage operations. Upon closing, which occurred on March 31, 2015, CashCall’s mortgage operations began to operate as a separate division of IMC under the name CashCall Mortgage (CCM). Pursuant to the Asset Purchase Agreement, and subject to the terms and conditions contained therein, the purchase price consists of a fixed component and a contingent component. The fixed component includes (i) the aggregate payment of $10 million in cash, payable in installments through January 2016 and (ii) 494,017 newly issued unregistered shares of the Company. The contingent component consists of a three year earn-out provision beginning on the effective date (January 2, 2015) of 100% of pre-tax net earnings of CCM for January and February of 2015, 65% of the pre-tax net earnings for the next 10 months of 2015, 55% of pre-tax 2016 net earnings and 45% of pre-tax 2017 net earnings. During the three months ended March 31, 2016, consideration paid to CashCall, Inc. was $2.5 million pursuant to the fixed component of the Asset Purchase Agreement and $4.1 million pursuant to the earn-out provision. If, during the four years following January 2, 2015, the Company sells all or substantially all of its assets or the assets of CCM, the division of IMC, or a person acquires 50% or more of the securities of the Company or IMC, then the Company will pay additional contingent consideration, subject to adjustment, to CashCall of 15% of the enterprise value (as defined in the Asset Purchase Agreement) in excess of $200 million plus an additional 5% of the enterprise value in excess of $500 million (Business Appreciation Rights). The table below presents the purchase price allocation of the estimated fair values of assets acquired and the liabilities assumed as of March 31, 2015. Consideration paid: Cash $ IMH common stock Deferred payments Contingent consideration (1) $ Assets acquired: Trademark $ Customer list Non-compete agreement Fixed assets and software Total assets acquired Liabilities assumed: Total liabilities assumed — Total assets $ Goodwill $ (1) Included within the contingent consideration is $1.4 million of Business Appreciation Rights, as defined above. The CCM acquisition was accounted for under the acquisition method of accounting pursuant to FASB Accounting Standards Codification (ASC) 805, Business Combinations . The assets and liabilities, both tangible and intangible, were recorded at their estimated fair values as of the acquisition date. The Company made significant estimates and exercised significant judgment in estimating fair values of the acquired assets and assumed liabilities. The application of the acquisition method of accounting resulted in tax deductible goodwill of $104.6 million. The acquisition closed on March 31, 2015; however, the effective date of the transaction was January 2, 2015. From the effective date to the date of the close, IMC was entitled to and recognized the net earnings of the loans originated by CCM. Acquisition related costs of $0.3 million were expensed as incurred. The expenses were comprised primarily of legal and professional fees. Unaudited Pro Forma Results of Operations The following table presents unaudited pro forma results of operations as if the CCM acquisition had been completed on January 1, 2014. The unaudited pro forma results of operations include the historical accounts of the Company and CCM and pro forma adjustments, including the amortization of intangibles with definite lives, depreciation of fixed assets, accretion of discount on contingent consideration and elimination of commissions and loan due diligence costs of IMC. The unaudited pro forma information presented below is intended for informational purposes only and is not necessarily indicative of the future operating results or operating results that would have occurred had the CCM acquisition been completed at the beginning of 2014. No assumptions have been applied to the pro forma results of operations regarding possible revenue enhancements, expense efficiencies or asset dispositions. For the Three Months Ended March 31, 2015 Revenues $ Other expense ) Expenses ) Pretax net income $

Mortgage Loans Held-for-Sale

Mortgage Loans Held-for-Sale	3 Months Ended
	Mar. 31, 2016
Mortgage Loans Held-for-Sale
Mortgage Loans Held-for-Sale	Note 3.—Mortgage Loans Held-for-Sale A summary of the unpaid principal balance (UPB) of mortgage loans held-for-sale by type is presented below: March 31, December 31, 2016 2015 Government (1) $ $ Conventional (2) Other (3) Fair value adjustment (4) Total mortgage loans held-for-sale $ $ (1) Includes all government-insured loans including Federal Housing Administration (FHA), Veterans Affairs (VA) and United States Department of Agriculture (USDA). (2) Includes loans eligible for sale to Federal National Mortgage Association (Fannie Mae or FNMA) and Federal Home Loan Mortgage Corporation (Freddie Mac or FHLMC). (3) Includes NonQM and Jumbo loans. (4) Changes in fair value are included in the statements of operations. Gain on mortgage loans held-for-sale (LHFS), included in gain on sale of loans, net in the consolidated statement of operations, is comprised of the following for the three months ended March 31, 2016 and 2015: For the Three Months Ended March 31, 2016 2015 Gain on sale of mortgage loans $ $ Premium from servicing retained loan sales Unrealized gains from derivative financial instruments Realized losses from derivative financial instruments ) ) Mark to market gain on LHFS Direct origination expenses, net ) ) Provision for repurchases ) ) Total gain on sale of loans, net $ $

Mortgage Servicing Rights

Mortgage Servicing Rights	3 Months Ended
	Mar. 31, 2016
Mortgage Servicing Rights
Mortgage Servicing Rights	Note 4.—Mortgage Servicing Rights The Company retains mortgage servicing rights (MSRs) from its sales of certain mortgage loans. MSRs are reported at fair value based on the income derived from the net projected cash flows associated with the servicing contracts. The Company receives servicing fees, less subservicing costs, on the UPB of the loans. The servicing fees are collected from the monthly payments made by the mortgagors or when the underlying real estate is foreclosed upon and liquidated. The Company may receive other remuneration from rights to various mortgagor-contracted fees such as late charges, collateral reconveyance charges, nonsufficient fund fees and the Company is generally entitled to retain the interest earned on funds held pending remittance (or float) related to its collection of mortgagor principal, interest, tax and insurance payments. The following table summarizes the activity of MSRs for the three months ended March 31, 2016 and year ended December 31, 2015: March 31, December 31, 2016 2015 Balance at beginning of period $ $ Additions from servicing retained loan sales Reductions from bulk sales — ) Changes in fair value (1) ) ) Fair value of MSRs at end of period $ $ (1) Changes in fair value are included within loss on mortgage servicing rights in the consolidated statements of operations. At March 31, 2016 and December 31, 2015, the outstanding principal balance of the mortgage servicing portfolio was comprised of the following: March 31, December 31, 2016 2015 Government insured (1) $ $ Conventional (2) NonQM Total loans serviced $ $ (1) As of March 31, 2016, the Government insured servicing has been pledged as collateral as part of the Term Financing. (See Note 7. — Term Financing. ) (2) As of March 31, 2016, the Conventional servicing has been pledged as collateral and subject to acknowledgement agreements with FNMA and FHLMC as part of the Term Financing. (See Note 7. — Term Financing. ) The table below illustrates hypothetical changes in fair values of MSRs, caused by assumed immediate changes to key assumptions that are used to determine fair value. See Note 10.—Fair Value of Financial Instruments for a description of the key assumptions used to determine the fair value of MSRs. Mortgage Servicing Rights Sensitivity Analysis March 31, 2016 Fair value of MSRs $ Prepayment Speed: Decrease in fair value from 10% adverse change ) Decrease in fair value from 20% adverse change ) Decrease in fair value from 30% adverse change ) Discount Rate: Decrease in fair value from 10% adverse change ) Decrease in fair value from 20% adverse change ) Decrease in fair value from 30% adverse change ) Sensitivities are hypothetical changes in fair value and cannot be extrapolated because the relationship of changes in assumptions to changes in fair value may not be linear. Also, the effect of a variation in a particular assumption is calculated without changing any other assumption, whereas a change in one factor may result in changes to another. Accordingly, no assurance can be given that actual results would be consistent with the results of these estimates. As a result, actual future changes in MSR values may differ significantly from those displayed above. Loss on mortgage servicing rights is comprised of the following for the three months ended March 31, 2016 and 2015: For the Three Months Ended March 31, 2016 2015 Loss on sale of mortgage servicing rights $ ) $ ) Change in fair value of mortgage servicing rights ) ) Realized and unrealized gains from hedging instruments — Loss on mortgage servicing rights $ ) $ ) During the three months ended March 31, 2016, the Company recorded a $620 thousand loss on sale of mortgage servicing rights related to refunds of premiums to investors for loan payoffs associated with sales of servicing rights in previous periods. Change in fair value of mortgage servicing right was primarily due to a decrease in mortgage interest rates in the first quarter resulting in an adverse change in prepayment speed assumptions. The following is a summary of certain components of servicing income, net as reported in the Company’s consolidated statements of operations for the three months ended March 31, 2016 and 2015: For the Three Months Ended March 31, 2016 2015 Contractual servicing fees $ $ Late and ancillary fees

Goodwill and Intangible Assets

Goodwill and Intangible Assets	3 Months Ended
	Mar. 31, 2016
Goodwill and Intangible Assets.
Goodwill and Intangible Assets	Note 5.—Goodwill and Intangible Assets Goodwill arises from the acquisition method of accounting for business combinations and represents the excess of the purchase price over the fair value of the net assets and other identifiable intangible assets acquired. Other intangible assets with definite lives include trademarks, customer relationships, and non-compete agreements. In the first quarter of 2015, the Company acquired CCM and recorded $104.6 million of goodwill and intangible assets of $33.1 million, consisting of $17.2 million for trademark, $10.2 million for customer relationships and $5.7 million for a non-compete agreement with the former owner of CCM. The purchase price allocation was prepared with the assistance of a third party valuation firm. Goodwill, trademarks and other intangible assets are tested annually for impairment or more frequently if events and circumstances indicate that the asset might be impaired. The carrying value of these intangible assets could be impaired if a significant adverse change in the use, life, or brand strategy of the asset is determined, or if a significant adverse change in the legal and regulatory environment, business or competitive climate occurs that would adversely impact the asset. Goodwill and other intangible assets deemed to have indefinite lives generated from purchase business combinations are not subject to amortization but are instead tested for impairment no less than annually. Impairment exists when the carrying value of goodwill exceeds its implied fair value. An impairment loss, if any, is measured as the excess of carrying value of the goodwill over the implied fair value of the goodwill and would be recorded in other expense in the consolidated statements of operations. Intangible assets with definite lives are amortized over their estimated lives using an amortization method that reflects the pattern in which the economic benefits of the asset are consumed. For goodwill, the determination of fair value of a reporting unit involves, among other things, application of the income approach, which includes developing forecasts of future cash flows and determining an appropriate discount rate. Goodwill is considered a Level 3 nonrecurring fair value measurement. The methodology used to determine the fair value of trademarks includes assumptions with inherent uncertainty, including projected sales volumes and related projected revenues, long-term growth rates, royalty rates that a market participant might assume and judgments regarding the factors to develop an applied discount rate. The carrying value of intangible assets is at risk of impairment if future projected revenues or long-term growth rates are lower than those currently projected, or if factors used in the development of a discount rate result in the application of a higher discount rate. The intangible assets are considered Level 3 nonrecurring fair value measurements. As part of the acquisition of CCM, the purchase price of the intangible assets the Company acquired are listed below: Gross Carrying Accumulated Net Carrying Amount Weighted Average Amount Amortization at March 31, 2016 Remaining Life Intangible assets: Trademark $ $ ) $ Customer relationships ) Non-compete agreement ) Total intangible assets acquired $ $ ) $ As part of the acquisition of CCM, the purchase price of other assets the Company acquired are listed below: Gross Carrying Accumulated Net Carrying Amount Amount Amortization at March 31, 2016 Remaining Life Other assets: Developed software $ $ ) $

Warehouse Borrowings

Warehouse Borrowings	3 Months Ended
	Mar. 31, 2016
Warehouse Borrowings
Warehouse Borrowings	Note 6.—Warehouse Borrowings The Company, through its subsidiaries, enters into Master Repurchase Agreements with lenders providing warehouse facilities. The warehouse facilities are uncommitted facilities used to fund, and are secured by, residential mortgage loans that are held for sale. In accordance with the terms of the Master Repurchase Agreements, the Company is required to maintain cash balances with the lender as additional collateral for the borrowings which are included in restricted cash in the accompanying consolidated balance sheets. The following table presents certain information on warehouse borrowings and related accrued interest for the periods indicated: Maximum Balance Outstanding At Borrowing Capacity March 31, 2016 December 31, 2015 Short-term borrowings: Repurchase agreement 1 $ $ $ Repurchase agreement 2 Repurchase agreement 3 (1) Repurchase agreement 4 (2) Repurchase agreement 5 (3) Total warehouse borrowings $ $ $ (1) As of March 31, 2016 and December 31, 2015, $42.2 million and $36.4 million, respectively, are attributable to financing facility advances made to the Company’s warehouse customers. (2) In March 2016, the maturity date was extended to February 28, 2017. (3) In March 2016, the lender granted the Company an increase in the maximum borrowing capacity to $175.0 million until June 30, 2016. In April 2016, the maturity date was extended to March 1, 2017.

Term Financing

Term Financing	3 Months Ended
	Mar. 31, 2016
Term Financing
Term Financing	Note 7.—Term Financing In June 2015, the Company and its subsidiaries, (IRES, IMC and Impac Warehouse Lending, Inc. (IWLI), collectively the (Borrowers)) entered into a Loan Agreement (Loan Agreement) with a lender (Lender) pursuant to which the Lender provided to the Borrowers a term loan in the aggregate principal amount of $30.0 million (Term Financing) due and payable on December 19, 2016, which may be extended to December 18, 2017 at the Lender’s discretion. In connection with the Term Financing, the Borrowers issued to the Lender a Term Note dated June 19, 2015. The Lender may in its discretion make additional advances not to exceed an aggregate amount outstanding of $50.0 million. The proceeds from the Term Financing were used to pay off the working capital line of credit with a national bank (approximately $4.0 million) and amounts under an existing master repurchase agreement with the Lender (approximately $3.2 million). The Borrowers also paid the Lender an origination fee of $300 thousand which is being amortized using the effective yield method over the life of the term financing. Interest on the Term Financing is payable monthly and accrues at a rate of LIBOR plus 8.5% per annum. As of March 31, 2016, amounts under the Term Financing may be prepaid at any time without penalty or premium. The Borrowers are subject to mandatory prepayment on the Term Financing based on a borrowing base formula that includes amounts under outstanding warehouse facilities, market value of mortgage servicing rights and residual securities and certain mortgage loans. The balance under the Term Financing as of March 31, 2016 and December 31, 2015 was $29.8 million and $29.7 million, respectively, net of debt issuance costs of $213 thousand and $284 thousand, respectively. The obligations of the Borrowers under the Loan Agreement are secured by assets and a pledge of all of the capital stock of the operating subsidiaries IRES, IMC and IWLI pursuant to a Security Agreement dated as of June 19, 2015 between the Borrowers and the Lender (Security Agreement). As part of the Loan Agreement the Company received an acknowledgement agreement from FNMA and FHLMC to pledge the mortgage servicing rights to the Lender. The Term Financing is subject to customary affirmative and negative covenants of the Borrowers. Upon an event of default, all outstanding amounts under the Term Financing may become immediately due and payable. An event of default also occurs upon a change of control, which means acquisition of more than 25% of the common stock of the Company, more than 50% of the common stock of any other Borrower, or the ability to elect a majority of such Borrower’s directors or an event that triggers a violation of a change of control provision in any of the Borrowers’ warehouse facilities.

Convertible Notes

Convertible Notes	3 Months Ended
	Mar. 31, 2016
Convertible notes.
Convertible Notes
Convertible Notes	Note 8.—Convertible Notes In January 2016, pursuant to the terms of the $20.0 million Convertible Promissory Notes issued in April 2013 (the Notes), the Company elected to exercise its option to convert the Notes to common stock. The conversion resulted in the Company issuing an aggregate of 1,839,080 shares of common stock in February 2016, at a conversion price of $10.875. As a result of the transaction, the Company converted $20.0 million of debt into equity and was required to pay interest through April 2016. The Company and the noteholders entered into a consent and waiver agreement whereby the noteholders agreed to delay the payment of unpaid interest that was due at the time of the conversion until April 2016. The interest owed through April 2016, as well as the deferred debt issuance costs of $129 thousand were recorded as an expense during the quarter ended March 31, 2016. No gain or loss was recorded as a result of the transaction. In May 2015, the Company issued an additional $25.0 million Convertible Promissory Notes (2015 Convertible Notes). The 2015 Convertible Notes mature on or before May 9, 2020 and accrue interest at a rate of 7.5% per annum, to be paid quarterly. The Company had approximately $50 thousand in transaction costs which are being amortized using the effective yield method over the life of the 2015 Convertible Notes. Noteholders may convert all or a portion of the outstanding principal amount of the 2015 Convertible Notes into shares of the Company’s Common Stock (Conversion Shares) at a rate of $21.50 per share, subject to adjustment for stock splits and dividends (the Conversion Price). The Company has the right to convert the entire outstanding principal of the 2015 Convertible Notes into Conversion Shares at the Conversion Price if the market price per share of the Common Stock, as measured by the average volume-weighted closing stock price per share of the Common Stock on the NYSE MKT (or any other U.S. national securities exchange then serving as the principal such exchange on which the shares of Common Stock are listed), reaches the level of $30.10, for any twenty (20) trading days in any period of thirty (30) consecutive trading days after the Closing Date. Upon conversion of the 2015 Convertible Notes by the Company, the entire amount of accrued and unpaid interest (and all other amounts owing) under the 2015 Convertible Notes are immediately due and payable. Furthermore, if the conversion of the 2015 Convertible Notes by the Company occurs prior to the third anniversary of the Closing Date, then the entire amount of interest under the 2015 Convertible Notes through the third anniversary is immediately due and payable. To the extent the Company pays any cash dividends on its shares of common stock prior to conversion of the 2015 Convertible Notes, upon conversion of the 2015 Convertible Notes, the Noteholders will also receive such dividends on an as-converted basis of the 2015 Convertible Notes less the amount of interest paid by the Company prior to such dividend. Unless an event of default has occurred and is continuing, each purchaser of the Convertible Notes agrees, for the three years after the Closing Date, to vote all Conversion Shares for each of the Company’s nominees for election to the Company’s board of directors and not to nominate any other candidate for election to the board of directors at any time within such three year period.

Securitized Mortgage Trusts

Securitized Mortgage Trusts	3 Months Ended
	Mar. 31, 2016
Securitized Mortgage Trusts
Securitized Mortgage Trusts	Note 9.—Securitized Mortgage Trusts Securtized Mortgage Trust Assets Securitized mortgage trust assets, which are recorded at fair value (FMV), are comprised of the following at March 31, 2016 and December 31, 2015: March 31, December 31, 2016 2015 Securitized mortgage collateral $ $ REO Investment securities available-for-sale Total securitized mortgage trust assets $ $ Securitized Mortgage Trust Liabilities Securitized mortgage trust liabilities, which are recorded at FMV, are comprised of the following at March 31, 2016 and December 31, 2015: March 31, December 31, 2016 2015 Securitized mortgage borrowings $ $ Derivative liabilities Total securitized mortgage trust liabilities $ $ Changes in fair value of net trust assets, including trust REO losses are comprised of the following for the three months ended March 31, 2016 and 2015: For the Three Months Ended March 31, 2016 2015 Change in fair value of net trust assets, excluding REO $ $ Losses from REO ) ) Change in fair value of net trust assets, including trust REO losses $ ) $ )

Fair Value of Financial Instrum

Fair Value of Financial Instruments	3 Months Ended
	Mar. 31, 2016
Fair Value of Financial Instruments
Fair Value of Financial Instruments	Note 10.—Fair Value of Financial Instruments The use of fair value to measure the Company’s financial instruments is fundamental to its consolidated financial statements and is a critical accounting estimate because a substantial portion of its assets and liabilities are recorded at estimated fair value. FASB ASC 825 requires disclosure of the estimated fair value of certain financial instruments and the methods and significant assumption used to estimate such fair values. The following table presents the estimated fair value of financial instruments included in the consolidated financial statements as of the dates indicated: March 31, 2016 December 31, 2015 Carrying Estimated Fair Value Carrying Estimated Fair Value Amount Level 1 Level 2 Level 3 Amount Level 1 Level 2 Level 3 Assets Cash and cash equivalents $ $ $ — $ — $ $ $ — $ — Restricted cash — — — — Mortgage loans held-for-sale — — — — Finance receivables — — — — Mortgage servicing rights — — — — Derivative assets, lending, net — — Investment securities available-for-sale — — — — Securitized mortgage collateral — — — — Liabilities Warehouse borrowings $ $ — $ $ — $ $ — $ $ — Term financing — — — — Convertible notes — — — — Contingent consideration — — — — Long-term debt — — — — Securitized mortgage borrowings — — — — Derivative liabilities, securitized trusts — — — — Derivative liabilities, lending, net — — — — The fair value amounts above have been estimated by management using available market information and appropriate valuation methodologies. Considerable judgment is required to interpret market data to develop the estimates of fair value in both inactive and orderly markets. Accordingly, the estimates presented are not necessarily indicative of the amounts that could be realized in a current market exchange. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts. For securitized mortgage collateral and securitized mortgage borrowings, the underlying Alt-A (non-conforming) residential and commercial loans and mortgage-backed securities market have experienced significant declines in market activity, along with a lack of orderly transactions. The Company’s methodology to estimate fair value of these assets and liabilities include the use of internal pricing techniques such as the net present value of future expected cash flows (with observable market participant assumptions, where available) discounted at a rate of return based on the Company’s estimates of market participant requirements. The significant assumptions utilized in these internal pricing techniques, which are based on the characteristics of the underlying collateral, include estimated credit losses, estimated prepayment speeds and appropriate discount rates. Refer to Recurring Fair Value Measurements below for a description of the valuation methods used to determine the fair value of investment securities available-for-sale, securitized mortgage collateral and borrowings, derivative assets and liabilities, long-term debt, mortgage servicing rights and mortgage loans held-for-sale. The carrying amount of cash, cash equivalents and restricted cash approximates fair value. Finance receivables carrying amounts approximate fair value due to the short-term nature of the assets and do not present unanticipated interest rate or credit concerns. Warehouse borrowings carrying amounts approximate fair value due to the short-term nature of the liabilities and do not present unanticipated interest rate or credit concerns. Convertible notes are recorded at amortized cost. The estimated fair value is determined using a discounted cash flow model using estimated market rates. Term financing structured debt has a maturity of less than one year. The term financing is recorded at amortized cost. The carrying amount approximates fair value due to the short-term nature of the liability and does not present unanticipated interest rate or credit concerns. Fair Value Hierarchy The application of fair value measurements may be on a recurring or nonrecurring basis depending on the accounting principles applicable to the specific asset or liability or whether management has elected to carry the item at its estimated fair value. FASB ASC 820-10-35 specifies a hierarchy of valuation techniques based on whether the inputs to those techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s market assumptions. These two types of inputs create the following fair value hierarchy: · Level 1—Quoted prices (unadjusted) in active markets for identical instruments or liabilities that an entity has the ability to assess at measurement date. · Level 2—Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; inputs other than quoted prices that are observable for an asset or liability, including interest rates and yield curves observable at commonly quoted intervals, prepayment speeds, loss severities, credit risks and default rates; and market-corroborated inputs. · Level 3—Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers is unobservable. This hierarchy requires the Company to use observable market data, when available, and to minimize the use of unobservable inputs when estimating fair value. As a result of the lack of observable market data resulting from inactive markets, the Company has classified its investment securities available-for-sale, mortgage servicing rights, securitized mortgage collateral and borrowings, derivative assets and liabilities (trust and IRLCs), and long-term debt as Level 3 fair value measurements. Level 3 assets and liabilities measured at fair value on a recurring basis were approximately 88% and 94% and 99% and 99%, respectively, of total assets and total liabilities measured at estimated fair value at March 31, 2016 and December 31, 2015. Recurring Fair Value Measurements The Company assesses the financial instruments on a quarterly basis to determine the appropriate classification within the fair value hierarchy, as defined by ASC Topic 810. Transfers between fair value classifications occur when there are changes in pricing observability levels. Transfers of financial instruments among the levels occur at the beginning of the reporting period. There were no material transfers between our Level 1 and Level 2 classified instruments during the three months ended March 31, 2016. The following tables present the Company’s assets and liabilities that are measured at estimated fair value on a recurring basis, including financial instruments for which the Company has elected the fair value option at March 31, 2016 and December 31, 2015, based on the fair value hierarchy: Recurring Fair Value Measurements March 31, 2016 December 31, 2015 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Assets Investment securities available-for-sale $ — $ — $ $ — $ — $ Mortgage loans held-for-sale — — — — Derivative assets, lending, net (1) — — Mortgage servicing rights — — — — Securitized mortgage collateral — — — — Total assets at fair value $ — $ $ $ — $ $ Liabilities Securitized mortgage borrowings $ — $ — $ $ — $ — $ Derivative liabilities, securitized trusts (2) — — — — Long-term debt — — — — Contingent consideration — — — — Derivative liabilities, lending, net (3) — — — — Total liabilities at fair value $ — $ $ $ — $ $ (1) At March 31, 2016, derivative assets, lending, net included $15.5 million in IRLCs and $321 thousand in Hedging Intruments, respectively, and is included in other assets in the accompanying consolidated balance sheets. At December 31, 2015, derivative assets, lending, net included $9.2 million in IRLCs and $89 thousand in Hedging Instruments associated with the Company’s mortgage lending operations, and is included in other assets in the accompanying consolidated balance sheet. (2) At March 31, 2016 and December 31, 2015, derivative liabilities, securitized trusts, are included within trust liabilities in the accompanying consolidated balance sheets. (3) At March 31, 2016 and December 31, 2015, derivative liabilities, lending, net are included in other liabilities in the accompanying consolidated balance sheets. The following tables present reconciliations for all assets and liabilities measured at estimated fair value on a recurring basis using significant unobservable inputs (Level 3) for the three March 31, 2016 and 2015: Level 3 Recurring Fair Value Measurements For the three months ended March 31, 2016 Investment securities available-for-sale Securitized mortgage collateral Securitized mortgage borrowings Derivative liabilities, net, securitized trusts Mortgage servicing rights Interest rate lock commitments, net Long-term debt Contingent consideration Fair value, December 31, 2015 $ $ $ ) $ ) $ $ $ ) $ ) Total gains (losses) included in earnings: Interest income (1) — — — — — — Interest expense (1) — — ) — — — ) — Change in fair value ) ) ) — ) Total (losses) gains included in earnings ) ) ) ) ) Transfers in and/or out of Level 3 — — — — — — — — Purchases, issuances and settlements: Purchases — — — — — — — — Issuances — — — — — — — Settlements ) ) — — — Fair value, March 31, 2016 $ $ $ ) $ ) $ $ $ ) $ ) Unrealized gains (losses) still held (2) $ $ ) $ $ ) $ $ $ $ ) (1) Amounts primarily represent accretion to recognize interest income and interest expense using effective yields based on estimated fair values for trust assets and trust liabilities. Net interest income, including cash received and paid, was $2.3 million for the three months ended March 31, 2016. The difference between accretion of interest income and expense and the amounts of interest income and expense recognized in the consolidated statements of operations is primarily from contractual interest on the securitized mortgage collateral and borrowings. (2) Represents the amount of unrealized gains (losses) relating to assets and liabilities classified as Level 3 that are still held and reflected in the fair values at March 31, 2016. Level 3 Recurring Fair Value Measurements For the three months ended March 31, 2015 Investment securities available-for-sale Securitized mortgage collateral Securitized mortgage borrowings Derivative liabilities, net, securitized trusts Mortgage servicing rights Interest rate lock commitments, net Long-term debt Contingent consideration Warrant Fair value, December 31, 2014 $ $ $ ) $ ) $ $ $ ) $ — $ Total gains (losses) included in earnings: Interest income (1) — — — — — — — Interest expense (1) — — ) — — — ) — — Change in fair value ) ) ) ) — Total gains (losses) included in earnings ) ) ) ) — Transfers in and/or out of Level 3 — — — — — — — — Purchases, issuances and settlements: Purchases — — — — — — — Issuances — — — — — — ) — Settlements ) ) ) — — — — Fair value, March 31, 2015 $ $ $ ) $ ) $ $ $ ) $ ) $ Unrealized gains (losses) still held (2) $ $ ) $ $ ) $ $ $ $ ) $ (1) Amounts primarily represent accretion to recognize interest income and interest expense using effective yields based on estimated fair values for trust assets and trust liabilities. Net interest income, including cash received and paid, was $2.2 million for the months ended March 31, 2015. The difference between accretion of interest income and expense and the amounts of interest income and expense recognized in the consolidated statements of operations is primarily from contractual interest on the securitized mortgage collateral and borrowings. (2) Represents the amount of unrealized gains (losses) relating to assets and liabilities classified as Level 3 that are still held and reflected in the fair values at March 31, 2015. The following table presents quantitative information about the valuation techniques and unobservable inputs applied to Level 3 fair value measurements for financial instruments measured at fair value on a recurring and non-recurring basis at March 31, 2016: Financial Instrument Estimated Fair Value Valuation Technique Unobservable Input Range of Inputs Weighted Average Assets and liabilities backed by real estate Investment securities available-for-sale, $ DCF Discount rates 3.5 - 25.0 % % Securitized mortgage collateral, and Prepayment rates 2.4 - 23.4 % % Securitized mortgage borrowings ) Default rates 0.3 - 15.0 % % Loss severities 1.6 - 81.9 % % Other assets and liabilities Mortgage servicing rights $ DCF Discount rate 9.0 - 14.0 % % Prepayment rates 5.7 - 89.0 % % Derivative liabilities, net, securitized trusts ) DCF 1M forward LIBOR 0.5 - 2.4 % N/A Derivative assets - IRLCs, net Market pricing Pull -through rate 32.0 - 99.0 % % Long-term debt ) DCF Discount rate % % Contingent consideration ) DCF Discount rate % % Margins 1.1 - 3.1 % % Probability of outcomes (1) 20.0 - 50.0 % % DCF = Discounted Cash Flow 1M = 1 Month (1) Probability of outcomes is the probability of projected CCM earnings over the earn-out period based upon three scenarios (base, low and high). For assets and liabilities backed by real estate, a significant increase in discount rates, default rates or loss severities would result in a significantly lower estimated fair value. The effect of changes in prepayment speeds would have differing effects depending on the seniority or other characteristics of the instrument. For other assets and liabilities, a significant increase in discount rates would result in a significantly lower estimated fair value. A significant increase in one-month LIBOR would result in a significantly higher estimated fair value for derivative liabilities, net, securitized trusts. The Company believes that the imprecision of an estimate could be significant. The following tables present the changes in recurring fair value measurements included in net earnings (loss) for the three months ended March 31, 2016 and 2015: Recurring Fair Value Measurements Change in Fair Value Included in Net Earnings For the three months ended March 31, 2016 Change in Fair Value of Interest Income (1) Interest Expense (1) Net Trust Assets Long-term Debt Other Revenue and Expense Gain on sale of loans, net Total Investment securities available-for-sale $ $ — $ $ — $ — $ — $ Securitized mortgage collateral — ) — — — ) Securitized mortgage borrowings — ) — — — Derivative liabilities, net, securitized trusts — — )(2) — — — ) Long-term debt — ) — — — — ) Mortgage servicing rights (3) — — — — ) — ) Contingent consideration — — — — ) — ) Mortgage loans held-for-sale — — — — — Derivative assets - IRLCs — — — — — Derivative liabilities - Hedging Instruments — — — — — ) ) Total $ $ ) $ (4) $ — $ ) $ $ ) (1) Amounts primarily represent accretion to recognize interest income and interest expense using effective yields based on estimated fair values for trust assets and trust liabilities. (2) Included in this amount is $606 thousand in changes in the fair value of derivative instruments, offset by $744 thousand in cash payments from the securitization trusts for the three months ended March 31, 2016. (3) Included in loss on mortgage servicing rights in the consolidated statements of operations. (4) For the three months ended March 31, 2016, change in the fair value of net trust assets, excluding REO was $513 thousand. Excluded from the $1.3 million change in fair value of net trust assets, excluding REO, in the accompanying consolidated statement of cash flows is $744 thousand in cash payments from the securitization trusts related to the Company’s net derivative liabilities. Recurring Fair Value Measurements Change in Fair Value Included in Net Loss For the three months ended March 31, 2015 Change in Fair Value of Interest Income (1) Interest Expense (1) Net Trust Assets Long-term Debt Other Revenue Gain on sale of loans, net Total Investment securities available-for-sale $ $ — $ $ — $ — $ — $ Securitized mortgage collateral — ) — — — Securitized mortgage borrowings — ) — — — ) Derivative liabilities, net, securitized trusts — — )(2) — — — ) Long-term debt — ) — ) — — ) Mortgage servicing rights (3) — — — — ) — ) Warrant — — — — — Mortgage loans held-for-sale — — — — — Derivative assets - IRLCs — — — — — Derivative liabilities - Hedging Instruments — — — — — ) ) Total $ $ ) $ (4) $ ) $ ) $ $ ) (1) Amounts primarily represent accretion to recognize interest income and interest expense using effective yields based on estimated fair values for trust assets and trust liabilities. (2) Included in this amount is $898 thousand in change in the fair value of derivative instruments, offset by $1.1 million in cash payments from the securitization trusts for the three months ended March 31, 2015. (3) Included in loss on mortgage servicing rights in the consolidated statements of operations. (4) For the three months ended March 31, 2015, change in the fair value of net trust assets, excluding REO was $1.8 million. Excluded from the $2.9 million change in fair value of net trust assets, excluding REO, in the accompanying consolidated statement of cash flows is $1.1 million in cash payments from the securitization trusts related to the Company’s net derivative liabilities. The following is a description of the measurement techniques for items recorded at estimated fair value on a recurring basis. Investment securities available-for-sale —Investment securities available-for-sale are carried at fair value. The investment securities consist primarily of non-investment grade mortgage-backed securities. The fair value of the investment securities is measured based upon the Company’s expectation of inputs that other market participants would use. Such assumptions include judgments about the underlying collateral, prepayment speeds, future credit losses, forward interest rates and certain other factors. Given the lack of observable market data as of March 31, 2016 and December 31, 2015 relating to these securities, the estimated fair value of the investment securities available-for-sale was measured using significant internal expectations of market participants’ assumptions. Investment securities available-for-sale is considered a Level 3 measurement at March 31, 2016. Mortgage servicing rights —The Company elected to carry its mortgage servicing rights arising from its mortgage loan origination operation at estimated fair value. The fair value of mortgage servicing rights is based upon market prices for similar instruments and a discounted cash flow model. The valuation model incorporates assumptions that market participants would use in estimating the fair value of servicing. These assumptions include estimates of prepayment speeds, discount rate, cost to service, escrow account earnings, contractual servicing fee income, prepayment and late fees, among other considerations. Mortgage servicing rights are considered a Level 3 measurement at March 31, 2016. Mortgage loans held-for-sale —The Company elected to carry its mortgage loans held-for-sale originated or acquired at estimated fair value. Fair value is based on quoted market prices, where available, prices for other traded mortgage loans with similar characteristics, and purchase commitments and bid information received from market participants. Given the meaningful level of secondary market activity for mortgage loans, active pricing is available for similar assets and accordingly, the Company classifies its mortgage loans held-for-sale as a Level 2 measurement at March 31, 2016. Securitized mortgage collateral —The Company elected to carry its securitized mortgage collateral at fair value. These assets consist primarily of non-conforming mortgage loans securitized between 2002 and 2007. Fair value measurements are based on the Company’s internal models used to compute the net present value of future expected cash flows with observable market participant assumptions, where available. The Company’s assumptions include its expectations of inputs that other market participants would use in pricing these assets. These assumptions include judgments about the underlying collateral, prepayment speeds, estimated future credit losses, forward interest rates, investor yield requirements and certain other factors. As of March 31, 2016, securitized mortgage collateral had UPB of $5.6 billion, compared to an estimated fair value on the Company’s balance sheet of $4.4 billion. The aggregate UPB exceeds the fair value by $1.2 billion at March 31, 2016. As of March 31, 2016, the UPB of loans 90 days or more past due was $0.8 billion compared to an estimated fair value of $0.3 billion. The aggregate UPB of loans 90 days or more past due exceed the fair value by $0.5 billion at March 31, 2016. Securitized mortgage collateral is considered a Level 3 measurement at March 31, 2016. Securitized mortgage borrowings —The Company elected to carry its securitized mortgage borrowings at fair value. These borrowings consist of individual tranches of bonds issued by securitization trusts and are primarily backed by non-conforming mortgage loans. Fair value measurements include the Company’s judgments about the underlying collateral and assumptions such as prepayment speeds, estimated future credit losses, forward interest rates, investor yield requirements and certain other factors. As of March 31, 2016, securitized mortgage borrowings had an outstanding principal balance of $5.5 billion, net of $2.2 billion in bond losses, compared to an estimated fair value of $4.4 billion. The aggregate outstanding principal balance exceeds the fair value by $1.1 billion at March 31, 2016. Securitized mortgage borrowings are considered a Level 3 measurement at March 31, 2016. Contingent consideration —Contingent consideration is applicable to the acquisition of CCM and is estimated and recorded at fair value at the acquisition date as part of purchase price consideration. Additionally, each reporting period, the Company estimates the change in fair value of the contingent consideration and any change in fair value is recognized in the Company’s consolidated statements of operations if it is determined to not be a measurement period adjustment. The estimate of the fair value of contingent consideration requires significant judgment and assumptions to be made about future operating results, discount rates and probabilities of various projected operating result scenarios. During the three months ended March 31, 2016, the change in fair value of contingent consideration was related to an increase in projected volumes and earnings of CCM. Future revisions to these assumptions could materially change the estimated fair value of contingent consideration and materially affect the Company’s financial results. Contingent consideration is considered a Level 3 measurement at March 31, 2016. Long-term debt —The Company elected to carry all of its long-term debt (consisting of trust preferred securities and junior subordinated notes) at fair value. These securities are measured based upon an analysis prepared by management, which considered the Company’s own credit risk, including settlements with trust preferred debt holders and discounted cash flow analysis. As of March 31, 2016, long-term debt had UPB of $70.5 million compared to an estimated fair value of $32.1 million. The aggregate UPB exceeds the fair value by $38.4 million at March 31, 2016. The long-term debt is considered a Level 3 measurement at March 31, 2016. Derivative assets and liabilities, Securitized trusts —For non-exchange traded contracts, fair value is based on the amounts that would be required to settle the positions with the related counterparties as of the valuation date. Valuations of derivative assets and liabilities are based on observable market inputs, if available. To the extent observable market inputs are not available, fair values measurements include the Company’s judgments about future cash flows, forward interest rates and certain other factors, including counterparty risk. Additionally, these values also take into account the Company’s own credit standing, to the extent applicable; thus, the valuation of the derivative instrument includes the estimated value of the net credit differential between the counterparties to the derivative contract. As of March 31, 2016, the notional balance of derivative assets and liabilities, securitized trusts was $55.6 million. These derivatives are included in the consolidated securitization trusts, which are nonrecourse to the Company, and thus the economic risk from these derivatives is limited to the Company’s residual interests in the securitization trusts. Derivative assets and liabilities, securitized trusts are considered a Level 3 measurement at March 31, 2016. Derivative assets and liabilities, Lending —The Company’s derivative assets and liabilities are carried at fair value as required by GAAP and are accounted for as free standing derivatives. The derivatives include IRLCs with prospective residential mortgage borrowers whereby the interest rate on the loan is determined prior to funding and the borrowers have locked in that interest rate. These commitments are determined to be derivative instruments in accordance with GAAP. The derivatives also include hedging instruments (typically TBA MBS) used to hedge the fair value changes associated with changes in interest rates relating to its mortgage lending originations as well as mortgage servicing rights. The Company hedges the period from the interest rate lock (assuming a fall-out factor) to the date of the loan sale. The estimated fair value of IRLCs are based on underlying loan types with similar characteristics using the TBA MBS market, which is actively quoted and easily validated through external sources. The data inputs used in this valuation include, but are not limited to, loan type, underlying loan amount, note rate, loan program, and expected sale date of the loan, adjusted for current market conditions. These valuations are adjusted at the loan level to consider the servicing release premium and loan pricing adjustments specific to each loan. For all IRLCs, the base value is then adjusted for the anticipated Pull-through Rate. The anticipated Pull-through Rate is an unobservable input based on historical experience, which results in classification of IRLCs as a Level 3 measurement at March 31, 2016. The fair value of the Hedging Instruments is based on the actively quoted TBA MBS market using observable inputs related to characteristics of the underlying MBS stratified by product, coupon and settlement date. Therefore, the Hedging Instruments are classified as a Level 2 measurement at March 31, 2016. The following table includes information for the derivative assets and liabilities, lending for the periods presented: Notional Amount Total Gains (Losses) (1) March 31, March 31, For the three months ended March 31, 2016 2015 2016 2015 Derivative - IRLC’s $ $ $ $ Derivative - TBA MBS ) ) (1) Amounts included in gain on sale of loans, net within the accompanying consolidated statements of operations. Warrant — Upon entering an arrangement to facilitate the Company’s ability to offer Non-QM mortgage products, a warrant to purchase up to 9.9% of Impac Mortgage Corp. was issued. The warrant expired in August 2015 and was not exercised. The estimated fair value of the warrant was based on a model incorporating various assumptions including expected future book value of Impac Mortgage Corp., the probability of the warrant being exercised, volatility, expected term and certain other factors. Nonrecurring Fair Value Measurements The Company is required to measure certain assets and liabilities at estimated fair value from time to time. These fair value measurements typically result from the application of specific accounting pronouncements under GAAP. The fair value measurements are considered nonrecurring fair value measurements under FASB ASC 820-10. The following tables present financial and non-financial assets and liabilities measured using nonrecurring fair value measurements at March 31, 2016 and 2015, respectively: Nonrecurring Fair Value Measurements Total Losses (1) March 31, 2016 For the Three Months Ended Level 1 Level 2 Level 3 March 31, 2016 REO (2) $ — $ $ — $ ) Deferred charge (3) — — ) (1) Total losses reflect losses from all nonrecurring measurements during the period. (2) Balance represents REO at March 31, 2016 which has been impaired subsequent to foreclosure. For the three months ended March 31, 2016, the $1.1 million loss represents additional impairment write-downs attributable to higher expected loss severities on properties held during the period which resulted in a decrease to the net realizable value (NRV). (3) For the three months ended March 31, 2016, the Company recorded $425 thousand in income tax expense resulting from impairment write-downs of deferred charge based on changes in estimated cash flows and lives of the related mortgages retained in the securitized mortgage collateral. Non-recurring Fair Value Measurements Total Losses (1) March 31, 2015 For the Three Months Ended Level 1 Level 2 Level 3 March 31, 2015 REO (2) $ — $ $ — $ ) Lease liability (3) — — ) ) Deferred charge (4) — — ) (1) Total losses reflect losses from all nonrecurring measurements during the period. (2) Balance represents REO at March 31, 2015 which has been impaired subsequent to foreclosure. For the three months ended March 31, 2015, the $2.7 million loss represents additional impairment write-downs attributable to higher expected loss severities on properties held during the period which resulted in a decrease to the net realizable value (NRV). (3) For the three months ended March 31, 2015, the Company recorded a $23 thousand expense, resulting from changes in lease liabilities as a result of changes in our expected minimum future lease payments. (4) For the three months ended March 31, 2015, the Company recorded $309 thousand in income tax expense resulting from impairment write-downs based on changes in estimated cash-flows and lives of the related mortgages retained in the securitized mortgage collateral. Real estate owned —REO consists of residential real estate acquired in satisfaction of loans. Upon foreclosure, REO is adjusted to the estimated fair value of the residential real estate less estimated selling and holding costs, offset by expected contractual mortgage insurance proceeds to be received, if any. Subsequently, REO is recorded at the lower of carrying value or estimated fair value less costs to sell. REO balance representing REOs which have been impaired subsequent to foreclosure are subject to nonrecurring fair value measurement and included in the nonrecurring fair value measurements tables. Fair values of REO are generally based on observable market inputs, and considered Level 2 measurements at March 31, 2016. Lease liability — In January 2016, an amendment to the Company’s lease became effective modifying certain terms as well as extending the lease to 2024. The modification of the lease effectively eliminated the shortfall the Company was recording as lease impairment attributable to the office space the Company was subletting associated with the previously discontinued operations. This liability was considered a Level 3 measurement at March 31, 2015. Deferred charge — Deferred charge represents the deferral of income tax expense on inter-company profits that resulted from the sale of mortgages from taxable subsidiaries to IMH in prior years. The Company evaluates the deferred charge for impairment quarterly using internal estimates of estimated cash flows and lives of the related mortgages retained in the securitized mortgage collateral. If the deferred charge is determined to be impaired, it is recognized as a component of income tax expense. For the three months ended March 31, 2016, the Company recorded $425 thousand in income tax expense resulting from deferred charge impairment write-downs based on changes in estimated fair value of securitized mortgage collateral. Deferred charge is considered a Level 3 measurement at March 31, 2016.

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2016
Income Taxes
Income Taxes	Note 11.—Income Taxes The Company calculates its quarterly tax provision pursuant to the guidelines in ASC 740 Income Taxes. ASC 740 requires companies to estimate the annual effective tax rate for current year ordinary income. In calculating the effective tax rate, permanent differences between financial reporting and taxable income are factored into the calculation, but temporary differences are not. The estimated annual effective tax rate represents the best estimate of the tax provision in relation to the best estimate of pre-tax ordinary income or loss. The estimated annual effective tax rate is then applied to year-to-date ordinary income or loss to calculate the year-to-date interim tax provision. The Company recorded income tax expense (benefit) of $435 thousand and ($23.7) million for the three months ended March 31, 2016 and 2015, respectively. For the three months ended March 31, 2016, the Company recorded an expense of $435 thousand primarily the result of amortization of the deferred charge, federal alternative minimum tax (AMT), and state income taxes from states where the Company does not have net operating loss carryforwards or state minimum taxes, including AMT. The deferred charge represents the deferral of income tax expense on inter-company profits that resulted from the sale of mortgages from taxable subsidiaries to IMH prior to 2008. The deferred charge is amortized and/or impaired, which does not result in any tax liability to be paid. The deferred charge is included in other assets in the accompanying consolidated balance sheets and is amortized as a component of income tax expense in the accompanying consolidated statements of operations. For the three months ended March 31, 2015, the Company recorded a benefit of $23.7 million which was primarily the result of a reversal of valuation allowance partially offset by federal AMT, amortization of the deferred charge and state income taxes from states where the Company does not have net operating loss carryforwards or state minimum taxes, including AMT.

Reconciliation of Earnings Per

Reconciliation of Earnings Per Share	3 Months Ended
	Mar. 31, 2016
Reconciliation of Earnings Per Share
Reconciliation of Earnings Per Share	Note 12.—Reconciliation of Earnings Per Share Basic net earnings per share is computed by dividing net earnings available to common stockholders (numerator) by the weighted average number of vested, common shares outstanding during the period (denominator). Diluted net earnings per share is computed on the basis of the weighted average number of shares of common stock outstanding plus the effect of dilutive potential common shares outstanding during the period using the if-converted method. Dilutive potential common shares include shares issuable upon conversion of Convertible Notes, dilutive effect of outstanding stock options and deferred stock units (DSUs). For the Three Months Ended March 31, 2016 2015 Numerator for basic earnings per share: Net earnings $ $ Numerator for diluted earnings per share: Net earnings $ $ Interest expense attributable to convertible notes (1) — Net earnings plus interest expense attributable to convertible notes $ $ Denominator for basic earnings per share (2): Basic weighted average common shares outstanding during the period Denominator for diluted earnings per share (2): Basic weighted average common shares outstanding during the period Net effect of dilutive convertible notes (1) — Net effect of dilutive stock options and DSU’s Diluted weighted average common shares Net earnings per common share: Basic $ $ Diluted $ $ (1) For the quarter ended March 31, 2016, the convertible notes are considered anti-dilutive and not included in diluted earnings per share as the earnings per share amounts are incrementally greater than basic earnings per share. (2) Number of shares presented in thousands. For the three months ended March 31, 2016 there were 345 thousand anti-dilutive stock options outstanding. The anti-dilutive stock options outstanding for the three months ended March 31, 2015 were 193 thousand shares.

Segment Reporting

Segment Reporting	3 Months Ended
	Mar. 31, 2016
Segment Reporting
Segment Reporting	Note 13.—Segment Reporting The Company has three primary reporting segments which include mortgage lending, real estate services and long-term mortgage portfolio. Unallocated corporate and other administrative costs, including the costs associated with being a public company, are presented in Corporate and other. Statement of Operations Items for the Mortgage Real Estate Long-term Corporate three months ended March 31, 2016: Lending Services Portfolio and other Consolidated Gain on sale of loans, net $ $ — $ — $ — $ Real estate services fees, net — — — Servicing income, net — — — Loss on mortgage servicing rights ) — — — ) Other revenue — Accretion of contingent consideration ) — — ) Change in fair value of contingent consideration ) — — ) Other expense ) ) ) ) ) Other income (expense) — ) ) Net earnings (loss) before income taxes $ $ $ $ ) Income tax expense Net earnings $ Statement of Operations Items for the Mortgage Real Estate Long-term Corporate three months ended March 31, 2015: Lending Services Portfolio and other Consolidated Gain on sale of loans, net $ $ — $ — $ — $ Real estate services fees, net — — — Servicing income, net — — — Loss on mortgage servicing rights ) — — — ) Other revenue — Total expense ) ) ) ) ) Other income (expense) — ) ) ) Net earnings (loss) before income taxes $ $ $ ) $ ) Income tax benefit ) Net earnings $ Mortgage Real Estate Long-term Mortgage Corporate Balance Sheet Items as of: Lending Services Portfolio and other Consolidated Total Assets at March 31, 2016 (1) $ $ $ $ $ Total Assets at December 31, 2015 (1) $ $ $ $ $ (1) All segment asset balances exclude intercompany balances.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2016
Commitments and Contingencies
Commitments and Contingencies	Note 14.—Commitments and Contingencies Legal Proceedings The Company is a defendant in or a party to a number of legal actions or proceedings that arise in the ordinary course of business. In some of these actions and proceedings, claims for monetary damages are asserted against the Company. In view of the inherent difficulty of predicting the outcome of such legal actions and proceedings, the Company generally cannot predict what the eventual outcome of the pending matters will be, what the timing of the ultimate resolution of these matters will be, or what the eventual loss related to each pending matter may be, if any. In accordance with applicable accounting guidance, the Company establishes an accrued liability for litigation when those matters present loss contingencies that are both probable and estimable. In any case, there may be an exposure to losses in excess of any such amounts whether accrued or not. Any estimated loss is subject to significant judgment and is based upon currently available information, a variety of assumptions, and known and unknown uncertainties. The matters underlying the estimated loss will change from time to time, and actual results may vary significantly from the current estimate. Therefore, an estimate of possible loss represents what the Company believes to be an estimate of possible loss only for certain matters meeting these criteria. It does not represent the Company’s maximum loss exposure. Based on the Company’s current understanding of these pending legal actions and proceedings, management does not believe that judgments or settlements arising from pending or threatened legal matters, individually or in the aggregate, will have a material adverse effect on the consolidated financial position, operating results or cash flows of the Company. However, in light of the inherent uncertainties involved in these matters, some of which are beyond the Company’s control, and the very large or indeterminate damages sought in some of these matters, an adverse outcome in one or more of these matters could be material to the Company’s results of operations or cash flows for any particular reporting period. The Company is a party to other litigation and claims which are normal in the course of our operations. While the results of such other litigation and claims cannot be predicted with certainty, we believe the final outcome of such matters will not have a material adverse effect on our financial condition or results of operations. The Company believes that it has meritorious defenses to the claims and intends to defend these claims vigorously and as such the Company believes the final outcome of such matters will not have a material adverse effect on its financial condition or results of operations. Nevertheless, litigation is uncertain and the Company may not prevail in the lawsuits and can express no opinion as to their ultimate resolution. An adverse judgment in any of these matters could have a material adverse effect on the Company’s financial position and results of operations. Please refer to IMH’s report on Form 10-K for the year ended December 31, 2015 for a description of litigation and claims. Repurchase Reserve When the Company sells mortgage loans, it makes customary representations and warranties to the purchasers about various characteristics of each loan such as the origination and underwriting guidelines, including but not limited to the validity of the lien securing the loan, property eligibility, borrower credit, income and asset requirements, and compliance with applicable federal, state and local law. The Company’s whole loan sale agreements generally require it to repurchase loans if the Company breached a representation or warranty given to the loan purchaser. The following table summarizes the repurchase reserve activity related to previously sold loans for the three months ended March 31, 2016 and year ended December 31, 2015: March 31, December 31, 2016 2015 Beginning balance $ $ Provision for repurchases Settlements ) ) Total repurchase reserve $ $ Short-Term Loan Commitments The Company uses a portion of its warehouse borrowing capacity to provide secured short-term revolving financing to small and medium-size mortgage originators to finance mortgage loans from the closing of the mortgage loans until sold to investors (Finance Receivables). As of March 31, 2016, the warehouse lending operations had warehouse lines to non-affiliated customers totaling $131.0 million, of which there was an outstanding balance of $42.2 million in finance receivables compared to $36.4 million as of December 31, 2015. The finance receivables are generally secured by residential mortgage loans as well as personal guarantees.

Equity and Share Based Payments

Equity and Share Based Payments	3 Months Ended
	Mar. 31, 2016
Equity and Share Based Payments
Equity and Share Based Payments	Note 15.—Equity and Share Based Payments Equity As further described in Note 8—Convertible Notes, i n January 2016, the Company elected to exercise its option to convert the Notes to common stock. The conversion resulted in the Company issuing an aggregate of 1,839,080 shares of common stock at a conversion price of $10.875. The Company initiated an equity offering program (EOP) on December 3, 2015 by filing a prospectus supplement under its shelf registration. The EOP allows the Company to offer and sell, from time to time, up to $25.0 million of its common stock in negotiated transactions or transactions that are deemed to be “at the market offerings”, as defined in Rule 415 under the Securities Act of 1933, as amended, including sales made directly on the NYSE MKT or sales made to or through a market maker other than on an exchange. During the three months ended March 31, 2016, the Company sold 155,420 shares of its common stock through the EOP at an average price of $13.85 per share, for which it received proceeds of $2.1 million, net of $43 thousand in sales commission. Share Based Payments There were no stock options granted during the three months ended March 31, 2016. The following table summarizes activity, pricing and other information for the Company’s stock options for the three months ended March 31, 2016: Weighted- Average Number of Exercise Shares Price Options outstanding at beginning of period $ Options granted — — Options exercised ) Options forfeited/cancelled ) Options outstanding at end of period Options exercisable at end of period $ As of March 31, 2016, there was approximately $3.0 million of total unrecognized compensation cost related to stock option compensation arrangements granted under the plan, net of estimated forfeitures. That cost is expected to be recognized over the remaining weighted average period of 2.1 years. There were no and 35,000 options granted during the three months ended March 31, 2016 and 2015, respectively. For the three months ended March 31, 2016 and 2015, the aggregate grant-date fair value of stock options granted was none and approximately $236 thousand, respectively. The following table summarizes activity, pricing and other information for the Company’s DSU’s, also referred to as deferred stock units as the issuance of the stock is deferred until termination of service, for the three months ended March 31, 2016: Weighted- Average Number of Grant Date Shares Fair Value DSU’s outstanding at beginning of period $ DSU’s granted — — DSU’s exercised — — DSU’s forfeited/cancelled — — DSU’s outstanding at end of period $ As of March 31, 2016, there was approximately $64 thousand of total unrecognized compensation cost related to the DSU compensation arrangements granted under the plan. That cost is expected to be recognized over a weighted average period of 0.3 years.

Subsequent Events

Subsequent Events	3 Months Ended
	Mar. 31, 2016
Subsequent Events
Subsequent Events	Note 16.—Subsequent Events In April 2016, the maturity date for repurchase agreement 5 was extended to March 1, 2017. Subsequent events have been evaluated through the date of this filing.

Acquisition of CashCall Mortg23

Acquisition of CashCall Mortgage (Tables)	3 Months Ended
	Mar. 31, 2016
Acquisition of CashCall Mortgage
Schedule of purchase price allocation	The table below presents the purchase price allocation of the estimated fair values of assets acquired and the liabilities assumed as of March 31, 2015. Consideration paid: Cash $ IMH common stock Deferred payments Contingent consideration (1) $ Assets acquired: Trademark $ Customer list Non-compete agreement Fixed assets and software Total assets acquired Liabilities assumed: Total liabilities assumed — Total assets $ Goodwill $ (1) Included within the contingent consideration is $1.4 million of Business Appreciation Rights, as defined above.
Schedule of pro forma results of operations	For the Three Months Ended March 31, 2015 Revenues $ Other expense ) Expenses ) Pretax net income $

Mortgage Loans Held-for-Sale (T

Mortgage Loans Held-for-Sale (Tables)	3 Months Ended
	Mar. 31, 2016
Mortgage Loans Held-for-Sale
Summary of the unpaid principal balance (UPB ) of mortgage loans held-for-sale by type	March 31, December 31, 2016 2015 Government (1) $ $ Conventional (2) Other (3) Fair value adjustment (4) Total mortgage loans held-for-sale $ $ (1) Includes all government-insured loans including Federal Housing Administration (FHA), Veterans Affairs (VA) and United States Department of Agriculture (USDA). (2) Includes loans eligible for sale to Federal National Mortgage Association (Fannie Mae or FNMA) and Federal Home Loan Mortgage Corporation (Freddie Mac or FHLMC). (3) Includes NonQM and Jumbo loans. (4) Changes in fair value are included in the statements of operations.
Schedule of gain on loans held-for-sale (LHFS)	For the Three Months Ended March 31, 2016 2015 Gain on sale of mortgage loans $ $ Premium from servicing retained loan sales Unrealized gains from derivative financial instruments Realized losses from derivative financial instruments ) ) Mark to market gain on LHFS Direct origination expenses, net ) ) Provision for repurchases ) ) Total gain on sale of loans, net $ $

Mortgage Servicing Rights (Tabl

Mortgage Servicing Rights (Tables)	3 Months Ended
	Mar. 31, 2016
Mortgage Servicing Rights
Schedule of hypothetical changes in the fair values of MSRs, caused by assumed immediate changes to key assumptions that are used to determine fair value.	Mortgage Servicing Rights Sensitivity Analysis March 31, 2016 Fair value of MSRs $ Prepayment Speed: Decrease in fair value from 10% adverse change ) Decrease in fair value from 20% adverse change ) Decrease in fair value from 30% adverse change ) Discount Rate: Decrease in fair value from 10% adverse change ) Decrease in fair value from 20% adverse change ) Decrease in fair value from 30% adverse change )
Schedule of Loss on mortgage servicing rights	For the Three Months Ended March 31, 2016 2015 Loss on sale of mortgage servicing rights $ ) $ ) Change in fair value of mortgage servicing rights ) ) Realized and unrealized gains from hedging instruments — Loss on mortgage servicing rights $ ) $ )
Schedule of components of servicing income	For the Three Months Ended March 31, 2016 2015 Contractual servicing fees $ $ Late and ancillary fees
Mortgage servicing rights
Mortgage Servicing Rights
Schedule of changes in the fair value of MSRs	March 31, December 31, 2016 2015 Balance at beginning of period $ $ Additions from servicing retained loan sales Reductions from bulk sales — ) Changes in fair value (1) ) ) Fair value of MSRs at end of period $ $ (1) Changes in fair value are included within loss on mortgage servicing rights in the consolidated statements of operations.
Schedule of the outstanding loans serviced by entity	March 31, December 31, 2016 2015 Government insured (1) $ $ Conventional (2) NonQM Total loans serviced $ $ (1) As of March 31, 2016, the Government insured servicing has been pledged as collateral as part of the Term Financing. (See Note 7. — Term Financing. ) (2) As of March 31, 2016, the Conventional servicing has been pledged as collateral and subject to acknowledgement agreements with FNMA and FHLMC as part of the Term Financing. (See Note 7. — Term Financing. )

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	3 Months Ended
	Mar. 31, 2016
Goodwill and Intangible Assets.
Summary of preliminary purchase price of intangible assets	Gross Carrying Accumulated Net Carrying Amount Weighted Average Amount Amortization at March 31, 2016 Remaining Life Intangible assets: Trademark $ $ ) $ Customer relationships ) Non-compete agreement ) Total intangible assets acquired $ $ ) $
Other Finite Lived Intangible Assets Amortization Expense Table Text Block	Gross Carrying Accumulated Net Carrying Amount Amount Amortization at March 31, 2016 Remaining Life Other assets: Developed software $ $ ) $

Warehouse Borrowings (Tables)

Warehouse Borrowings (Tables)	3 Months Ended
	Mar. 31, 2016
Warehouse Borrowings.
Schedule of information on warehouse borrowings	Maximum Balance Outstanding At Borrowing Capacity March 31, 2016 December 31, 2015 Short-term borrowings: Repurchase agreement 1 $ $ $ Repurchase agreement 2 Repurchase agreement 3 (1) Repurchase agreement 4 (2) Repurchase agreement 5 (3) Total warehouse borrowings $ $ $ (1) As of March 31, 2016 and December 31, 2015, $42.2 million and $36.4 million, respectively, are attributable to financing facility advances made to the Company’s warehouse customers. (2) In March 2016, the maturity date was extended to February 28, 2017. (3) In March 2016, the lender granted the Company an increase in the maximum borrowing capacity to $175.0 million until June 30, 2016. In April 2016, the maturity date was extended to March 1, 2017.

Securitized Mortgage Trusts (Ta

Securitized Mortgage Trusts (Tables)	3 Months Ended
	Mar. 31, 2016
Securitized Mortgage Trusts
Schedule of trust assets	March 31, December 31, 2016 2015 Securitized mortgage collateral $ $ REO Investment securities available-for-sale Total securitized mortgage trust assets $ $
Schedule of trust liabilities	March 31, December 31, 2016 2015 Securitized mortgage borrowings $ $ Derivative liabilities Total securitized mortgage trust liabilities $ $
Schedule of changes in fair value of net trust assets, including trust REO losses	For the Three Months Ended March 31, 2016 2015 Change in fair value of net trust assets, excluding REO $ $ Losses from REO ) ) Change in fair value of net trust assets, including trust REO losses $ ) $ )

Fair Value of Financial Instr29

Fair Value of Financial Instruments (Tables)	3 Months Ended
	Mar. 31, 2016
Fair Value of Financial Instruments
Schedule of estimated fair value of financial instruments included in consolidated financial statements	March 31, 2016 December 31, 2015 Carrying Estimated Fair Value Carrying Estimated Fair Value Amount Level 1 Level 2 Level 3 Amount Level 1 Level 2 Level 3 Assets Cash and cash equivalents $ $ $ — $ — $ $ $ — $ — Restricted cash — — — — Mortgage loans held-for-sale — — — — Finance receivables — — — — Mortgage servicing rights — — — — Derivative assets, lending, net — — Investment securities available-for-sale — — — — Securitized mortgage collateral — — — — Liabilities Warehouse borrowings $ $ — $ $ — $ $ — $ $ — Term financing — — — — Convertible notes — — — — Contingent consideration — — — — Long-term debt — — — — Securitized mortgage borrowings — — — — Derivative liabilities, securitized trusts — — — — Derivative liabilities, lending, net — — — —
Schedule of assets and liabilities that are measured at estimated fair value on recurring basis	Recurring Fair Value Measurements March 31, 2016 December 31, 2015 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Assets Investment securities available-for-sale $ — $ — $ $ — $ — $ Mortgage loans held-for-sale — — — — Derivative assets, lending, net (1) — — Mortgage servicing rights — — — — Securitized mortgage collateral — — — — Total assets at fair value $ — $ $ $ — $ $ Liabilities Securitized mortgage borrowings $ — $ — $ $ — $ — $ Derivative liabilities, securitized trusts (2) — — — — Long-term debt — — — — Contingent consideration — — — — Derivative liabilities, lending, net (3) — — — — Total liabilities at fair value $ — $ $ $ — $ $ (1) At March 31, 2016, derivative assets, lending, net included $15.5 million in IRLCs and $321 thousand in Hedging Intruments, respectively, and is included in other assets in the accompanying consolidated balance sheets. At December 31, 2015, derivative assets, lending, net included $9.2 million in IRLCs and $89 thousand in Hedging Instruments associated with the Company’s mortgage lending operations, and is included in other assets in the accompanying consolidated balance sheet. (2) At March 31, 2016 and December 31, 2015, derivative liabilities, securitized trusts, are included within trust liabilities in the accompanying consolidated balance sheets. (3) At March 31, 2016 and December 31, 2015, derivative liabilities, lending, net are included in other liabilities in the accompanying consolidated balance sheets.
Schedule of reconciliation for all assets and liabilities measured at estimated fair value on recurring basis using significant unobservable inputs (Level 3)	Level 3 Recurring Fair Value Measurements For the three months ended March 31, 2016 Investment securities available-for-sale Securitized mortgage collateral Securitized mortgage borrowings Derivative liabilities, net, securitized trusts Mortgage servicing rights Interest rate lock commitments, net Long-term debt Contingent consideration Fair value, December 31, 2015 $ $ $ ) $ ) $ $ $ ) $ ) Total gains (losses) included in earnings: Interest income (1) — — — — — — Interest expense (1) — — ) — — — ) — Change in fair value ) ) ) — ) Total (losses) gains included in earnings ) ) ) ) ) Transfers in and/or out of Level 3 — — — — — — — — Purchases, issuances and settlements: Purchases — — — — — — — — Issuances — — — — — — — Settlements ) ) — — — Fair value, March 31, 2016 $ $ $ ) $ ) $ $ $ ) $ ) Unrealized gains (losses) still held (2) $ $ ) $ $ ) $ $ $ $ ) (1) Amounts primarily represent accretion to recognize interest income and interest expense using effective yields based on estimated fair values for trust assets and trust liabilities. Net interest income, including cash received and paid, was $2.3 million for the three months ended March 31, 2016. The difference between accretion of interest income and expense and the amounts of interest income and expense recognized in the consolidated statements of operations is primarily from contractual interest on the securitized mortgage collateral and borrowings. (2) Represents the amount of unrealized gains (losses) relating to assets and liabilities classified as Level 3 that are still held and reflected in the fair values at March 31, 2016. Level 3 Recurring Fair Value Measurements For the three months ended March 31, 2015 Investment securities available-for-sale Securitized mortgage collateral Securitized mortgage borrowings Derivative liabilities, net, securitized trusts Mortgage servicing rights Interest rate lock commitments, net Long-term debt Contingent consideration Warrant Fair value, December 31, 2014 $ $ $ ) $ ) $ $ $ ) $ — $ Total gains (losses) included in earnings: Interest income (1) — — — — — — — Interest expense (1) — — ) — — — ) — — Change in fair value ) ) ) ) — Total gains (losses) included in earnings ) ) ) ) — Transfers in and/or out of Level 3 — — — — — — — — Purchases, issuances and settlements: Purchases — — — — — — — Issuances — — — — — — ) — Settlements ) ) ) — — — — Fair value, March 31, 2015 $ $ $ ) $ ) $ $ $ ) $ ) $ Unrealized gains (losses) still held (2) $ $ ) $ $ ) $ $ $ $ ) $ (1) Amounts primarily represent accretion to recognize interest income and interest expense using effective yields based on estimated fair values for trust assets and trust liabilities. Net interest income, including cash received and paid, was $2.2 million for the months ended March 31, 2015. The difference between accretion of interest income and expense and the amounts of interest income and expense recognized in the consolidated statements of operations is primarily from contractual interest on the securitized mortgage collateral and borrowings. (2) Represents the amount of unrealized gains (losses) relating to assets and liabilities classified as Level 3 that are still held and reflected in the fair values at March 31, 2015.
Schedule of quantitative information about the valuation techniques and unobservable inputs applied to Level 3 fair value measurements for financial instruments measured at fair value on a recurring and non-recurring basis	The following table presents quantitative information about the valuation techniques and unobservable inputs applied to Level 3 fair value measurements for financial instruments measured at fair value on a recurring and non-recurring basis at March 31, 2016: Financial Instrument Estimated Fair Value Valuation Technique Unobservable Input Range of Inputs Weighted Average Assets and liabilities backed by real estate Investment securities available-for-sale, $ DCF Discount rates 3.5 - 25.0 % % Securitized mortgage collateral, and Prepayment rates 2.4 - 23.4 % % Securitized mortgage borrowings ) Default rates 0.3 - 15.0 % % Loss severities 1.6 - 81.9 % % Other assets and liabilities Mortgage servicing rights $ DCF Discount rate 9.0 - 14.0 % % Prepayment rates 5.7 - 89.0 % % Derivative liabilities, net, securitized trusts ) DCF 1M forward LIBOR 0.5 - 2.4 % N/A Derivative assets - IRLCs, net Market pricing Pull -through rate 32.0 - 99.0 % % Long-term debt ) DCF Discount rate % % Contingent consideration ) DCF Discount rate % % Margins 1.1 - 3.1 % % Probability of outcomes (1) 20.0 - 50.0 % % DCF = Discounted Cash Flow 1M = 1 Month (1) Probability of outcomes is the probability of projected CCM earnings over the earn-out period based upon three scenarios (base, low and high).
Schedule of changes in recurring fair value measurements included in net earnings (loss)	Recurring Fair Value Measurements Change in Fair Value Included in Net Earnings For the three months ended March 31, 2016 Change in Fair Value of Interest Income (1) Interest Expense (1) Net Trust Assets Long-term Debt Other Revenue and Expense Gain on sale of loans, net Total Investment securities available-for-sale $ $ — $ $ — $ — $ — $ Securitized mortgage collateral — ) — — — ) Securitized mortgage borrowings — ) — — — Derivative liabilities, net, securitized trusts — — )(2) — — — ) Long-term debt — ) — — — — ) Mortgage servicing rights (3) — — — — ) — ) Contingent consideration — — — — ) — ) Mortgage loans held-for-sale — — — — — Derivative assets - IRLCs — — — — — Derivative liabilities - Hedging Instruments — — — — — ) ) Total $ $ ) $ (4) $ — $ ) $ $ ) (1) Amounts primarily represent accretion to recognize interest income and interest expense using effective yields based on estimated fair values for trust assets and trust liabilities. (2) Included in this amount is $606 thousand in changes in the fair value of derivative instruments, offset by $744 thousand in cash payments from the securitization trusts for the three months ended March 31, 2016. (3) Included in loss on mortgage servicing rights in the consolidated statements of operations. (4) For the three months ended March 31, 2016, change in the fair value of net trust assets, excluding REO was $513 thousand. Excluded from the $1.3 million change in fair value of net trust assets, excluding REO, in the accompanying consolidated statement of cash flows is $744 thousand in cash payments from the securitization trusts related to the Company’s net derivative liabilities. Recurring Fair Value Measurements Change in Fair Value Included in Net Loss For the three months ended March 31, 2015 Change in Fair Value of Interest Income (1) Interest Expense (1) Net Trust Assets Long-term Debt Other Revenue Gain on sale of loans, net Total Investment securities available-for-sale $ $ — $ $ — $ — $ — $ Securitized mortgage collateral — ) — — — Securitized mortgage borrowings — ) — — — ) Derivative liabilities, net, securitized trusts — — )(2) — — — ) Long-term debt — ) — ) — — ) Mortgage servicing rights (3) — — — — ) — ) Warrant — — — — — Mortgage loans held-for-sale — — — — — Derivative assets - IRLCs — — — — — Derivative liabilities - Hedging Instruments — — — — — ) ) Total $ $ ) $ (4) $ ) $ ) $ $ ) (1) Amounts primarily represent accretion to recognize interest income and interest expense using effective yields based on estimated fair values for trust assets and trust liabilities. (2) Included in this amount is $898 thousand in change in the fair value of derivative instruments, offset by $1.1 million in cash payments from the securitization trusts for the three months ended March 31, 2015. (3) Included in loss on mortgage servicing rights in the consolidated statements of operations. (4) For the three months ended March 31, 2015, change in the fair value of net trust assets, excluding REO was $1.8 million. Excluded from the $2.9 million change in fair value of net trust assets, excluding REO, in the accompanying consolidated statement of cash flows is $1.1 million in cash payments from the securitization trusts related to the Company’s net derivative liabilities.
Schedule of information for derivative assets and liabilities - lending	Notional Amount Total Gains (Losses) (1) March 31, March 31, For the three months ended March 31, 2016 2015 2016 2015 Derivative - IRLC’s $ $ $ $ Derivative - TBA MBS ) ) (1) Amounts included in gain on sale of loans, net within the accompanying consolidated statements of operations.
Schedule of financial and non-financial assets and liabilities measured using nonrecurring fair value measurements	Nonrecurring Fair Value Measurements Total Losses (1) March 31, 2016 For the Three Months Ended Level 1 Level 2 Level 3 March 31, 2016 REO (2) $ — $ $ — $ ) Deferred charge (3) — — ) (1) Total losses reflect losses from all nonrecurring measurements during the period. (2) Balance represents REO at March 31, 2016 which has been impaired subsequent to foreclosure. For the three months ended March 31, 2016, the $1.1 million loss represents additional impairment write-downs attributable to higher expected loss severities on properties held during the period which resulted in a decrease to the net realizable value (NRV). (3) For the three months ended March 31, 2016, the Company recorded $425 thousand in income tax expense resulting from impairment write-downs of deferred charge based on changes in estimated cash flows and lives of the related mortgages retained in the securitized mortgage collateral. Non-recurring Fair Value Measurements Total Losses (1) March 31, 2015 For the Three Months Ended Level 1 Level 2 Level 3 March 31, 2015 REO (2) $ — $ $ — $ ) Lease liability (3) — — ) ) Deferred charge (4) — — ) (1) Total losses reflect losses from all nonrecurring measurements during the period. (2) Balance represents REO at March 31, 2015 which has been impaired subsequent to foreclosure. For the three months ended March 31, 2015, the $2.7 million loss represents additional impairment write-downs attributable to higher expected loss severities on properties held during the period which resulted in a decrease to the net realizable value (NRV). (3) For the three months ended March 31, 2015, the Company recorded a $23 thousand expense, resulting from changes in lease liabilities as a result of changes in our expected minimum future lease payments. (4) For the three months ended March 31, 2015, the Company recorded $309 thousand in income tax expense resulting from impairment write-downs based on changes in estimated cash-flows and lives of the related mortgages retained in the securitized mortgage collateral.

Reconciliation of Earnings Pe30

Reconciliation of Earnings Per Share (Tables)	3 Months Ended
	Mar. 31, 2016
Reconciliation of Earnings Per Share
Schedule of computation of basic and diluted earnings per common share	For the Three Months Ended March 31, 2016 2015 Numerator for basic earnings per share: Net earnings $ $ Numerator for diluted earnings per share: Net earnings $ $ Interest expense attributable to convertible notes (1) — Net earnings plus interest expense attributable to convertible notes $ $ Denominator for basic earnings per share (2): Basic weighted average common shares outstanding during the period Denominator for diluted earnings per share (2): Basic weighted average common shares outstanding during the period Net effect of dilutive convertible notes (1) — Net effect of dilutive stock options and DSU’s Diluted weighted average common shares Net earnings per common share: Basic $ $ Diluted $ $ (1) For the quarter ended March 31, 2016, the convertible notes are considered anti-dilutive and not included in diluted earnings per share as the earnings per share amounts are incrementally greater than basic earnings per share. (2) Number of shares presented in thousands.

Segment Reporting (Tables)

Segment Reporting (Tables)	3 Months Ended
	Mar. 31, 2016
Segment Reporting
Schedule of the selected statement of operations information by reporting segment	Statement of Operations Items for the Mortgage Real Estate Long-term Corporate three months ended March 31, 2016: Lending Services Portfolio and other Consolidated Gain on sale of loans, net $ $ — $ — $ — $ Real estate services fees, net — — — Servicing income, net — — — Loss on mortgage servicing rights ) — — — ) Other revenue — Accretion of contingent consideration ) — — ) Change in fair value of contingent consideration ) — — ) Other expense ) ) ) ) ) Other income (expense) — ) ) Net earnings (loss) before income taxes $ $ $ $ ) Income tax expense Net earnings $ Statement of Operations Items for the Mortgage Real Estate Long-term Corporate three months ended March 31, 2015: Lending Services Portfolio and other Consolidated Gain on sale of loans, net $ $ — $ — $ — $ Real estate services fees, net — — — Servicing income, net — — — Loss on mortgage servicing rights ) — — — ) Other revenue — Total expense ) ) ) ) ) Other income (expense) — ) ) ) Net earnings (loss) before income taxes $ $ $ ) $ ) Income tax benefit ) Net earnings $ Mortgage Real Estate Long-term Mortgage Corporate Balance Sheet Items as of: Lending Services Portfolio and other Consolidated Total Assets at March 31, 2016 (1) $ $ $ $ $ Total Assets at December 31, 2015 (1) $ $ $ $ $ (1) All segment asset balances exclude intercompany balances.

Commitments and Contingencies (

Commitments and Contingencies (Tables)	3 Months Ended
	Mar. 31, 2016
Commitments and Contingencies
Schedule of the activity related to the repurchase reserve for previously sold loans	March 31, December 31, 2016 2015 Beginning balance $ $ Provision for repurchases Settlements ) ) Total repurchase reserve $ $

Equity and Share Based Paymen33

Equity and Share Based Payments (Tables)	3 Months Ended
	Mar. 31, 2016
Equity and Share Based Payments
Summary of activity, pricing and other information for the Company's stock options	The following table summarizes activity, pricing and other information for the Company’s stock options for the three months ended March 31, 2016 Weighted- Average Number of Exercise Shares Price Options outstanding at beginning of period $ Options granted — — Options exercised ) Options forfeited/cancelled ) Options outstanding at end of period Options exercisable at end of period $
Summary of activity, pricing and other information for the Company's (DSU's)	The following table summarizes activity, pricing and other information for the Company’s DSU’s, also referred to as deferred stock units as the issuance of the stock is deferred until termination of service, for the three months ended March 31, 2016: Weighted- Average Number of Grant Date Shares Fair Value DSU’s outstanding at beginning of period $ DSU’s granted — — DSU’s exercised — — DSU’s forfeited/cancelled — — DSU’s outstanding at end of period $

Summary of Business and Finan34

Summary of Business and Financial Statement Presentation (Details) - USD ($) $ in Thousands	Jan. 01, 2016	Mar. 31, 2016	Dec. 31, 2015
Other assets		$ 40,593	$ 38,118
Accounting Standard Update 2015-03 | Retrospective adjustment
Other assets	$ (465)
Long Term Loans And Convertible Notes Payable	$ (465)

Acquisition of CashCall Mortg35

Acquisition of CashCall Mortgage (Details) - USD ($) $ in Thousands	Jan. 06, 2015	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Consideration paid:
Contingent consideration		$ 48,772		$ 48,079
Assets acquired:
Goodwill.		104,938		$ 104,938
Unaudited Pro Forma Results of Operations
Revenues			$ 52,743
Other expense			(6,724)
Expenses			(40,831)
Pretax net income			5,188
Cash Call Inc
Business combinations
Acqusition price, cash portion	$ 10,000
Newly issued unregistered shares	494,017
Earn out period of contingent consideration	3 years
Percentage of pre-tax profits expected for contingent earn-out for the month of January and February of 2015	100.00%
Percentage of pre tax profit expected for contingent earn out for remaining part of the year	65.00%
Period for newly issued unregistered shares	10 months
Percentage of pre-tax profits expected for contingent earn-out in second year	55.00%
Percentage of pre-tax profits expected for contingent earn-out in third year	45.00%
Threshold percentage of ownership transfer considered	50.00%
Percentage of payment on enterprise value	15.00%
Amount paid pursuant to earn-out provision		4,100
Amount of enterprise value considered for payment	$ 200,000
Additional percentage of payment on enterprise value	5.00%
Threshold Enterprise Value Considered For Additional Payment	$ 500,000
Consideration paid:
Cash		$ 2,500	5,000
IMH common stock			6,150
Deferred payments			5,000
Contingent consideration			124,592
Consideration paid, total			140,742
Assets acquired:
Identifiable intangible assets			33,100
Fixed assets and software			3,034
Total assets acquired			36,156
Total assets			36,156
Goodwill.			104,586
Contingent consideration of business appreciation rights			1,400
Acquisition related costs			300
Tax deductible goodwill			104,600
Trademark | Cash Call Inc
Assets acquired:
Identifiable intangible assets			17,251
Customer list | Cash Call Inc
Assets acquired:
Identifiable intangible assets			10,170
Non-compete agreement | Cash Call Inc
Assets acquired:
Identifiable intangible assets			$ 5,701

Mortgage Loans Held-for-Sale (D

Mortgage Loans Held-for-Sale (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Mortgage Loans held-for-Sale
Total mortgage loans held-for-sale	$ 612,777		$ 310,191
Gain on LHFS
Premium from servicing retained loan sales	2,088	$ 635
Provision for repurchases	(379)	(871)
Total gain on sale of loans, net	38,118	19,192
Government
Mortgage Loans held-for-Sale
Total mortgage loans held-for-sale	144,764		104,576
Conventional
Mortgage Loans held-for-Sale
Total mortgage loans held-for-sale	407,454		170,519
Other
Mortgage Loans held-for-Sale
Total mortgage loans held-for-sale	38,862		24,239
Mortgage loans, held-for-sale
Mortgage Loans held-for-Sale
Fair value adjustment	21,697		$ 10,857
Gain on LHFS
Gain on sale of mortgage loans	59,212	55,090
Premium from servicing retained loan sales	18,822	22,371
Unrealized gains from derivative financial instruments	4,945	7,868
Realized losses from derivative financial instruments	(8,457)	(3,162)
Mark to market gain on LHFS	11,185	10,911
Direct origination expenses, net	(31,459)	(54,809)
Provision for repurchases	(379)	(871)
Total gain on sale of loans, net	$ 53,869	$ 37,398

Mortgage Servicing Rights (Deta

Mortgage Servicing Rights (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Changes in the fair value of MSRs
Balance at beginning of period	$ 36,425
Fair value of MSRs at end of period	44,327		$ 36,425
Total loans serviced	5,161,020		3,570,659
Mortgage Servicing Rights Sensitivity Analysis
Loss on sale of mortgage servicing rights	620	$ 3,474
Change in fair value of mortgage servicing rights	(10,920)	(3,094)
Realized and unrealized gains from hedging instruments	630
Loss on mortgage servicing rights	(10,910)	(6,568)
Servicing income
Servicing income, net	2,088	635
Contractual servicing fees
Servicing income
Servicing income, net	2,633	1,093
Late and ancillary fees
Servicing income
Servicing income, net	34	50
Alt-QM
Changes in the fair value of MSRs
Total loans serviced	149,189		95,157
Government
Changes in the fair value of MSRs
Total loans serviced	994,812		675,744
Conventional
Changes in the fair value of MSRs
Total loans serviced	4,017,019		2,799,758
Mortgage servicing rights
Changes in the fair value of MSRs
Balance at beginning of period	36,425	$ 24,418	24,418
Additions from servicing retained loan sales	18,822		98,103
Reductions from bulk sales			(75,157)
Changes in fair value	(10,920)		(10,939)
Fair value of MSRs at end of period	44,327		$ 36,425
Mortgage Servicing Rights Sensitivity Analysis
Fair value of MSRs	44,327
Prepayment Speed, Decrease in fair value from 10% adverse change	(2,122)
Prepayment Speed, Decrease in fair value from 20% adverse change	(4,066)
Prepayment Speed, Decrease in fair value from 30% adverse change	(5,854)
Discount Rate, Decrease in fair value from 10% adverse change	(1,438)
Discount Rate, Decrease in fair value from 20% adverse change	(2,784)
Discount Rate, Decrease in fair value from 30% adverse change	$ (4,049)

Goodwill and Intangible Asset38

Goodwill and Intangible Assets - Goodwill (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015	Mar. 31, 2015
Changes in carrying amount of goodwill
Goodwill	$ 104,938	$ 104,938
Cash Call Inc
Changes in carrying amount of goodwill
Goodwill			$ 104,586
Identifiable intangible assets			33,100
Trademark | Cash Call Inc
Changes in carrying amount of goodwill
Identifiable intangible assets			17,251
Customer list | Cash Call Inc
Changes in carrying amount of goodwill
Identifiable intangible assets			10,170
Non-compete agreement | Cash Call Inc
Changes in carrying amount of goodwill
Identifiable intangible assets			$ 5,701

Goodwill and Intangible Asset39

Goodwill and Intangible Assets - Intangibles Other Than Goodwill (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2016USD ($)
Intangible assets and other assets:
Gross Carrying Amount	$ 33,122
Accumulated Amortization	(4,196)
Net Carrying Amount	$ 28,926
Remaining Life	9 years 9 months 18 days
Trademark
Intangible assets and other assets:
Gross Carrying Amount	$ 17,251
Accumulated Amortization	(1,169)
Net Carrying Amount	$ 16,082
Remaining Life	13 years 9 months 18 days
Customer Relationships
Intangible assets and other assets:
Gross Carrying Amount	$ 10,170
Accumulated Amortization	(1,507)
Net Carrying Amount	$ 8,663
Remaining Life	5 years 9 months 18 days
Non-compete agreement
Intangible assets and other assets:
Gross Carrying Amount	$ 5,701
Accumulated Amortization	(1,520)
Net Carrying Amount	$ 4,181
Remaining Life	2 years 9 months 18 days
Developed software | Other assets
Intangible assets and other assets:
Gross Carrying Amount	$ 2,719
Accumulated Amortization	(572)
Net Carrying Amount	$ 2,147
Remaining Life	3 years 9 months 18 days

Warehouse Borrowings (Details)

Warehouse Borrowings (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Short Term Debt
Maximum Borrowing Capacity	$ 725,000
Warehouse Agreement Borrowings	624,128	$ 325,616
Warehouse Borrowings | Non-affiliated customers
Short Term Debt
Maximum Borrowing Capacity	131,000
Repurchase agreement 1
Short Term Debt
Maximum Borrowing Capacity	150,000
Warehouse Agreement Borrowings	99,454	63,368
Repurchase agreement 2
Short Term Debt
Maximum Borrowing Capacity	50,000
Warehouse Agreement Borrowings	32,016	46,673
Repurchase agreement 3
Short Term Debt
Maximum Borrowing Capacity	225,000
Warehouse Agreement Borrowings	150,801	122,242
Financing facility advances made to warehouse customers	42,200	36,400
Repurchase agreement 4
Short Term Debt
Maximum Borrowing Capacity	200,000
Warehouse Agreement Borrowings	177,068	83,162
Repurchase agreement 5
Short Term Debt
Maximum Borrowing Capacity	100,000
Warehouse Agreement Borrowings	164,789	$ 10,171
Increase in maximum borrowing capacity	$ 175,000

Term Financing (Details)

Term Financing (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended	12 Months Ended
	Jun. 30, 2015	Mar. 31, 2016	Dec. 31, 2015
Long-term Debt
Long-term debt		$ 32,141	$ 31,898
Term financing
Long-term Debt
Amount of debt issued	$ 30,000
Maximum loan advances	50,000
Debt issuance costs	$ 300	213	284
Long-term debt		$ 29,800	$ 29,700
Percentage of common stock of any other borrowers' to be acquired in the event of default (as a percent)	50.00%
Percentage Of Common Stock To Be Acquired On Default	25.00%
Term financing | LIBOR
Long-term Debt
Interest margin over base rate (as a percent)	8.50%
Mast repurchase agreement
Long-term Debt
Repayment of the previous debt by using proceeds of new debt	$ 3,200
Line of credit
Long-term Debt
Repayment of the previous debt by using proceeds of new debt	$ 4,000

Convertible Notes (Details)

Convertible Notes (Details) $ / shares in Units, $ in Thousands	1 Months Ended			3 Months Ended
	Feb. 29, 2016USD ($)$ / sharesshares	Jan. 31, 2016$ / sharesshares	May. 31, 2015USD ($)item$ / shares	Mar. 31, 2016USD ($)	Mar. 31, 2015USD ($)	Apr. 30, 2013USD ($)
Convertible Notes
Common stock issued upon conversion of notes (in shares) | shares	1,839,080	1,839,080
Conversion price (in dollars per share) | $ / shares		$ 10.875
Conversion of debt into equity	$ 20,000
Interest expense				$ 69,428	$ 71,550
Convertible notes voting restriction period				3 years
2013 Convertible Notes
Convertible Notes
Amount of debt issued						$ 20,000
Conversion price (in dollars per share) | $ / shares	$ 10.875
Interest expense				$ 129
Gain (loss) on conversion of notes to common stock				$ 0
2015 Convertible Notes
Convertible Notes
Amount of debt issued			$ 25,000
Conversion price (in dollars per share) | $ / shares			$ 21.50
Interest rate of debt (as a percent)			7.50%
Conditional conversion price (in dollars per share) | $ / shares			$ 30.10
Number of trading days for which stock price must exceed specified price | item			20
Number of consecutive trading days during which stock price must exceed specified price			30 days
Transaction costs			$ 50

Securitized Mortgage Trusts- As

Securitized Mortgage Trusts- Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Trust Assets
Securitized mortgage collateral	$ 4,364,558	$ 4,574,919
REO	18,753	19,589
Investment securities available-for-sale	23	26
Total securitized mortgage trust assets	$ 4,383,334	$ 4,594,534

Securitized Mortgage Trusts - L

Securitized Mortgage Trusts - Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Trust Liabilities
Securitized mortgage borrowings	$ 4,368,356	$ 4,578,657
Derivative liabilities	969	1,669
Total securitized mortgage trust liabilities	$ 4,369,325	$ 4,580,326

Securitized Mortgage Trusts - C

Securitized Mortgage Trusts - Change in Fair Value (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Change in fair value of net trust assets, including trust REO losses
Change in fair value of net trust assets, excluding REO	$ 513	$ 1,794
Losses from REO	(1,140)	(2,670)
Change in fair value of net trust assets, including trust REO losses	$ (627)	$ (876)

Fair Value of Financial Instr46

Fair Value of Financial Instruments (Details ) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Assets
Mortgage servicing rights	$ 44,327	$ 36,425
Liabilities
Derivative liabilities, lending, net	969	1,669
Carrying Amount
Assets
Cash and cash equivalents.	18,452	32,409
Restricted cash.	4,778	3,474
Mortgage loans held for-for-sale	612,777	310,191
Finance receivables.	42,179	36,368
Mortgage servicing rights	44,327	36,425
Derivatives assets, lending, net	15,796	9,273
Investment securities available-for-sale	23	26
Securitized mortgage collateral	4,364,558	4,574,919
Liabilities
Warehouse borrowings	624,128	325,616
Term financing	29,787	29,716
Convertible notes	24,959	44,819
Contingent consideration	48,772	48,079
Long-term debt	32,141	31,898
Securitized mortgage borrowings	4,368,356	4,578,657
Derivative liabilities, securitized trusts	969	1,669
Derivative liabilities, lending, net	1,593	404
Estimated Fair Value | Level 1
Assets
Cash and cash equivalents.	18,452	32,409
Restricted cash.	4,778	3,474
Estimated Fair Value | Level 2
Assets
Mortgage loans held for-for-sale	612,777	310,191
Finance receivables.	42,179	36,368
Derivatives assets, lending, net	321	89
Liabilities
Warehouse borrowings	624,128	325,616
Derivative liabilities, lending, net	1,593	404
Estimated Fair Value | Level 3
Assets
Mortgage servicing rights	44,327	36,425
Derivatives assets, lending, net	15,475	9,184
Investment securities available-for-sale	23	26
Securitized mortgage collateral	4,364,558	4,574,919
Liabilities
Term financing	29,787	29,716
Convertible notes	24,959	44,819
Contingent consideration	48,772	48,079
Long-term debt	32,141	31,898
Securitized mortgage borrowings	4,368,356	4,578,657
Derivative liabilities, securitized trusts	$ 969	$ 1,669

Fair Value of Financial Instr47

Fair Value of Financial Instruments - Assets and Liabilities Measure On Recurring Basis (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Assets
Mortgage servicing rights	$ 44,327	$ 36,425
Liabilities
Derivative liabilities, lending, net	$ 969	$ 1,669
Level 3
Fair Value Measurements
Percentage of level three assets to total assets measured at fair value	88.00%	99.00%
Percentage of level three liabilities to total liabilities measured at fair value	94.00%	99.00%
Recurring basis | Level 2
Assets
Mortgage loans held for-for-sale	$ 612,777	$ 310,191
Derivatives assets, lending, net	321	89
Total assets at fair value	613,098	310,280
Liabilities
Derivative liabilities, lending, net	1,593	404
Total liabilities at fair value	1,593	404
Recurring basis | Level 3
Assets
Investment securities available-for-sale	23	26
Derivatives assets, lending, net	15,475	9,184
Mortgage servicing rights	44,327	36,425
Securitized mortgage collateral	4,364,558	4,574,919
Total assets at fair value	4,424,383	4,620,554
Liabilities
Securitized mortgage borrowings	4,368,356	4,578,657
Derivative liabilities, securitized trusts	969	1,669
Long-term debt	32,141	31,898
Contingent consideration	48,772	48,079
Total liabilities at fair value	4,450,238	4,660,303
Recurring basis | Interest rate lock commitments. net (IRLCs)
Assets
Derivatives assets, lending, net	15,500	9,200
Recurring basis | Hedging Instruments
Assets
Derivatives assets, lending, net	$ 321,000	$ 89,000

Fair Value of Financial Instr48

Fair Value of Financial Instruments - Reconciliations for Assets and Liabilities Measured Using Level 3 (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Level 3
Purchases, issuances and settlements
Net interest income including cash received and paid	$ 2,300	$ 2,200
Securitized mortgage borrowings
Changes in fair value of liabilities during the period
Fair value in the beginning of the period	(4,578,657)	(5,245,860)
Total (losses) gains included in earnings	35,914	(52,511)
Purchases, issuances and settlements
Settlements	174,387	189,238
Fair value at the end of the period	(4,368,356)	(5,109,133)
Unrealized gains (losses) still held	3,326,935	3,399,502
Securitized mortgage borrowings | Interest expense.
Changes in fair value of liabilities during the period
Total (losses) gains included in earnings	(51,046)	(56,366)
Securitized mortgage borrowings | Change in fair value
Changes in fair value of liabilities during the period
Total (losses) gains included in earnings	86,960	3,855
Derivative liabilities, net, securitized trusts
Changes in fair value of liabilities during the period
Fair value in the beginning of the period	(1,669)	(5,447)
Total (losses) gains included in earnings	(93)	(241)
Purchases, issuances and settlements
Settlements	793	1,189
Fair value at the end of the period	(969)	(4,499)
Unrealized gains (losses) still held	(835)	(4,164)
Derivative liabilities, net, securitized trusts | Change in fair value
Changes in fair value of liabilities during the period
Total (losses) gains included in earnings	(93)	(241)
Long-term debt
Changes in fair value of liabilities during the period
Fair value in the beginning of the period	(31,898)	(22,122)
Total (losses) gains included in earnings	(243)	(7,524)
Purchases, issuances and settlements
Fair value at the end of the period	(32,141)	(29,646)
Unrealized gains (losses) still held	38,622	41,117
Long-term debt | Interest expense.
Changes in fair value of liabilities during the period
Total (losses) gains included in earnings	(243)	(408)
Long-term debt | Change in fair value
Changes in fair value of liabilities during the period
Total (losses) gains included in earnings		(7,116)
Contingent consideration
Changes in fair value of liabilities during the period
Fair value in the beginning of the period	(48,079)
Total (losses) gains included in earnings	(4,836)
Purchases, issuances and settlements
Issuances		(124,592)
Settlements	4,143
Fair value at the end of the period	(48,772)	(124,592)
Unrealized gains (losses) still held	(48,772)	(124,592)
Contingent consideration | Change in fair value
Changes in fair value of liabilities during the period
Total (losses) gains included in earnings	(4,836)
Investment securities available-for-sale
Changes in fair value of assets during the period
Fair value at the beginning of the period	26	92
Total gains (losses) included in earnings:
Total gains (losses) included in earnings	9	38
Purchases, issuances and settlements
Settlements	(12)	(42)
Fair value at the end of the period	23	88
Unrealized gains (losses) still held	23	88
Investment securities available-for-sale | Interest income
Total gains (losses) included in earnings:
Total gains (losses) included in earnings	1	4
Investment securities available-for-sale | Change in fair value
Total gains (losses) included in earnings:
Total gains (losses) included in earnings	8	34
Securitized mortgage collateral
Changes in fair value of assets during the period
Fair value at the beginning of the period	4,574,919	5,249,639
Total gains (losses) included in earnings:
Total gains (losses) included in earnings	(68,720)	15,864
Purchases, issuances and settlements
Settlements	(141,641)	(154,520)
Fair value at the end of the period	4,364,558	5,110,983
Unrealized gains (losses) still held	(1,182,800)	(1,261,569)
Securitized mortgage collateral | Interest income
Total gains (losses) included in earnings:
Total gains (losses) included in earnings	17,642	17,718
Securitized mortgage collateral | Change in fair value
Total gains (losses) included in earnings:
Total gains (losses) included in earnings	(86,362)	(1,854)
Mortgage servicing rights
Changes in fair value of assets during the period
Fair value at the beginning of the period	36,425	24,418
Total gains (losses) included in earnings:
Total gains (losses) included in earnings	(10,920)	(3,094)
Purchases, issuances and settlements
Issuances	18,822	22,371
Settlements		(17,039)
Fair value at the end of the period	44,327	26,656
Unrealized gains (losses) still held	44,327	26,656
Mortgage servicing rights | Change in fair value
Total gains (losses) included in earnings:
Total gains (losses) included in earnings	(10,920)	(3,094)
Interest rate lock commitments. net (IRLCs)
Changes in fair value of assets during the period
Fair value at the beginning of the period	9,184	2,884
Total gains (losses) included in earnings:
Total gains (losses) included in earnings	6,291	9,885
Purchases, issuances and settlements
Fair value at the end of the period	15,475	12,769
Unrealized gains (losses) still held	15,475	12,769
Interest rate lock commitments. net (IRLCs) | Change in fair value
Total gains (losses) included in earnings:
Total gains (losses) included in earnings	$ 6,291	9,885
Warrant
Changes in fair value of assets during the period
Fair value at the beginning of the period		84
Total gains (losses) included in earnings:
Total gains (losses) included in earnings		7
Purchases, issuances and settlements
Fair value at the end of the period		91
Unrealized gains (losses) still held		91
Warrant | Change in fair value
Total gains (losses) included in earnings:
Total gains (losses) included in earnings		$ 7

Fair Value of Financial Instr49

Fair Value of Financial Instruments - Valuation Techniques And Unobservable Inputs (Details) - Level 3 $ in Thousands	3 Months Ended
	Mar. 31, 2016USD ($)
Securitized mortgage borrowings | DCF
Valuation techniques
Estimated fair value of liabilities	$ (4,368,356)
Securitized mortgage borrowings | DCF | Minimum
Unobservable input
Default rates (as a percent)	0.30%
Loss severities (as a percent)	1.60%
Securitized mortgage borrowings | DCF | Maximum
Unobservable input
Default rates (as a percent)	15.00%
Loss severities (as a percent)	81.90%
Securitized mortgage borrowings | DCF | Weighted Average
Unobservable input
Default rates (as a percent)	2.40%
Loss severities (as a percent)	39.60%
Derivative liabilities, net, securitized trusts | DCF
Valuation techniques
Estimated fair value of liabilities	$ (969)
Derivative liabilities, net, securitized trusts | DCF | LIBOR | Minimum
Unobservable input
Variable rate (as a percent)	0.50%
Derivative liabilities, net, securitized trusts | DCF | LIBOR | Maximum
Unobservable input
Variable rate (as a percent)	2.40%
Long-term debt | DCF
Valuation techniques
Estimated fair value of liabilities	$ (32,141)
Unobservable input
Discount rates (as a percent)	13.90%
Long-term debt | DCF | Weighted Average
Unobservable input
Discount rates (as a percent)	13.90%
Contingent consideration
Valuation techniques
Estimated fair value of liabilities	$ (48,772)
Contingent consideration | DCF
Unobservable input
Discount rates (as a percent)	17.00%
Contingent consideration | DCF | Minimum
Unobservable input
Margins	1.10%
Probability of outcomes	20.00%
Contingent consideration | DCF | Maximum
Unobservable input
Margins	3.10%
Probability of outcomes	50.00%
Contingent consideration | DCF | Weighted Average
Unobservable input
Discount rates (as a percent)	17.00%
Margins	2.20%
Probability of outcomes	34.40%
Investment securities available-for-sale | DCF
Valuation techniques
Estimated fair value of assets	$ 23
Investment securities available-for-sale | DCF | Minimum
Unobservable input
Discount rates (as a percent)	3.50%
Investment securities available-for-sale | DCF | Maximum
Unobservable input
Discount rates (as a percent)	25.00%
Investment securities available-for-sale | DCF | Weighted Average
Unobservable input
Discount rates (as a percent)	5.70%
Securitized mortgage collateral | DCF
Valuation techniques
Estimated fair value of assets	$ 4,364,558
Securitized mortgage collateral | DCF | Minimum
Unobservable input
Prepayment rates (as a percent)	2.40%
Securitized mortgage collateral | DCF | Maximum
Unobservable input
Prepayment rates (as a percent)	23.40%
Securitized mortgage collateral | DCF | Weighted Average
Unobservable input
Prepayment rates (as a percent)	6.90%
Mortgage servicing rights | DCF
Valuation techniques
Estimated fair value of assets	$ 44,327
Mortgage servicing rights | DCF | Minimum
Unobservable input
Discount rates (as a percent)	9.00%
Prepayment rates (as a percent)	5.70%
Mortgage servicing rights | DCF | Maximum
Unobservable input
Discount rates (as a percent)	14.00%
Prepayment rates (as a percent)	89.00%
Mortgage servicing rights | DCF | Weighted Average
Unobservable input
Discount rates (as a percent)	9.70%
Prepayment rates (as a percent)	14.50%
Derivative assets, lending, net | Market pricing
Valuation techniques
Estimated fair value of assets	$ 15,475
Derivative assets, lending, net | Market pricing | Minimum
Unobservable input
Pull-through rate (as a percent)	32.00%
Derivative assets, lending, net | Market pricing | Maximum
Unobservable input
Pull-through rate (as a percent)	99.00%
Derivative assets, lending, net | Market pricing | Weighted Average
Unobservable input
Pull-through rate (as a percent)	73.40%

Fair Value of Financial Instr50

Fair Value of Financial Instruments - Changes in Fair Value Included in Earnings (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Change in Fair Value Included in Net Earnings (Loss)
Change in the fair value of trust assets, excluding REO	$ 513	$ 1,794
Change in fair value of net trust assets, excluding REO	1,256	2,932
Securitized Mortgage Borrowings
Outstanding principal balance of securitized mortgage borrowings	$ 5,161,020		$ 3,570,659
Impac Mortgage Corp.
Derivative assets and liabilities
Maximum percentage of ownership interest in acquiree for which warrants were issued	9.90%
Derivative liabilities, net, securitized trusts | TBA's
Derivative assets and liabilities
Derivative Liability, Notional Amount	$ 624,588	759,306
Derivative, Gain (Loss) on Derivative, Net	(9,803)	(5,179)
Derivative assets - IRLCs | Interest rate lock commitments. net (IRLCs)
Derivative assets and liabilities
Derivative Liability, Notional Amount	797,675	805,743
Derivative, Gain (Loss) on Derivative, Net	6,291	9,885
Recurring basis
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of liabilities		7
Total	(32,527)	(28,682)
Recurring basis | Interest income
Change in Fair Value Included in Net Earnings (Loss)
Total	17,643	17,722
Recurring basis | Interest expense.
Change in Fair Value Included in Net Earnings (Loss)
Total	(51,289)	(56,774)
Recurring basis | Change in Fair Value of Net Trust Assets
Change in Fair Value Included in Net Earnings (Loss)
Total	513	1,794
Recurring basis | Change in Fair Value of Long-term Debt
Change in Fair Value Included in Net Earnings (Loss)
Total		(7,116)
Recurring basis | Other revenue
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of liabilities		7
Total	(15,756)	(3,087)
Recurring basis | Gain on sale of loans, net
Change in Fair Value Included in Net Earnings (Loss)
Total	16,362	18,779
Recurring basis | Contingent consideration
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of liabilities	(4,836)
Recurring basis | Contingent consideration | Other revenue
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of liabilities	(4,836)
Recurring basis | Securitized mortgage borrowings
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of assets	35,914	52,511
Recurring basis | Securitized mortgage borrowings | Interest expense.
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of assets	(51,046)	56,366
Recurring basis | Securitized mortgage borrowings | Change in Fair Value of Net Trust Assets
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of assets	86,960	(3,855)
Recurring basis | Derivative liabilities, net, securitized trusts
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of assets	(93)	241
Recurring basis | Derivative liabilities, net, securitized trusts | Change in Fair Value of Net Trust Assets
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of assets	(93)	241
Changes in the fair value of derivative instruments	606	898,000
Cash payments from the securitization trusts	744,000	1,100
Recurring basis | Derivative liabilities, net, securitized trusts | Hedging Instruments
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of liabilities	(1,114)	(2,017)
Recurring basis | Derivative liabilities, net, securitized trusts | Hedging Instruments | Gain on sale of loans, net
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of liabilities	(1,114)	(2,017)
Recurring basis | Long-term debt
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of liabilities	(243)	(7,524)
Recurring basis | Long-term debt | Interest expense.
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of liabilities	(243)	(408)
Recurring basis | Long-term debt | Change in Fair Value of Long-term Debt
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of liabilities		(7,116)
Recurring basis | Investment securities available-for-sale
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of assets	9	38
Recurring basis | Investment securities available-for-sale | Interest income
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of assets	1	4
Recurring basis | Investment securities available-for-sale | Change in Fair Value of Net Trust Assets
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of assets	8	34
Recurring basis | Securitized mortgage collateral
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of assets	(68,720)	15,864
Recurring basis | Securitized mortgage collateral | Interest income
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of assets	17,642	17,718
Recurring basis | Securitized mortgage collateral | Change in Fair Value of Net Trust Assets
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of assets	(86,362)	(1,854)
Recurring basis | Mortgage servicing rights
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of assets	(10,920)	(3,094)
Recurring basis | Mortgage servicing rights | Other revenue
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of assets	(10,920)	(3,094)
Recurring basis | Mortgage loans held-for-sale
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of assets	11,185	10,911
Recurring basis | Mortgage loans held-for-sale | Gain on sale of loans, net
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of assets	11,185	10,911
Recurring basis | Derivative assets - IRLCs | Interest rate lock commitments. net (IRLCs)
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of assets	6,291	9,885
Recurring basis | Derivative assets - IRLCs | Interest rate lock commitments. net (IRLCs) | Gain on sale of loans, net
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of assets	6,291	$ 9,885
Recurring basis | Level 3
Long-term debt
Estimated fair value of long-term debt	32,141		$ 31,898
Derivative assets and liabilities
Notional balance of derivative assets and liabilities, securitized trusts	55,600
Recurring basis | Level 3 | Long-term debt
Long-term debt
Long-term debt unpaid principal balance	70,500
Estimated fair value of long-term debt	32,100
Difference between aggregate unpaid principal balances and fair value of long-term debt	38,400
Recurring basis | Level 3 | Securitized mortgage collateral
Securitized mortgage collateral
Unpaid principal balance of securitized mortgage collateral	5,600,000
Estimated fair value of securitized mortgage collateral	4,400,000
Difference between aggregate unpaid principal balance and fair value of securitized mortgage collateral	1,200,000
Unpaid principal balance of loans 90 days or more past due	800,000
Estimated fair value of loans 90 days or more past due	300,000
Difference between aggregate unpaid principal balances and fair value of mortgage loans	500,000
Securitized Mortgage Borrowings
Outstanding principal balance of securitized mortgage borrowings	5,500,000
Estimated fair value of securitized mortgage borrowings	4,400,000
Bond losses	2,200,000
Difference between aggregate unpaid principal balances and fair value of securitized mortgage borrowings	$ 1,100,000

Fair Value of Financial Instr51

Fair Value of Financial Instruments - Nonrecurring (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Total Gains (Losses)
Impairment of deferred charge	$ 424	$ 309
Nonrecurring Fair Value Measurements
Fair Value Measurements
Lease liability		(23)
Total Gains (Losses)
Additional impairment write-downs attributable to higher expected loss severities on properties held	(1,140)	(2,670)
Losses from changes in lease liabilities as a result of changes in expected minimum future lease payments		(309)
Deferred charge, tax expense on impairment write-downs	425
Nonrecurring Fair Value Measurements | Level 2
Fair Value Measurements
REO	4,391	14,884
Nonrecurring Fair Value Measurements | Level 3
Fair Value Measurements
Lease liability		(1,413)
Deferred charge (See Note 17)	$ 9,539	$ 11,212

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Reconciliation of income taxes to the expected statutory federal corporate income tax rates
Income tax expense (benefit)	$ 435	$ (23,704)
Amortization of the deferred charge, AMT and state income taxes	$ 435
Reversal of valuation allowance		$ 23,700

Reconciliation of Earnings Pe53

Reconciliation of Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Numerator for basic earnings per share:
Net earnings	$ 981	$ 33,972
Numerator for diluted earning per share:
Net earnings	981	33,972
Interest expense attributable to convertible notes		375
Net earnings plus interest expense attributable to convertible notes	$ 981	$ 34,347
Denominator for basic earnings per share:
Basic weighted average common shares outstanding during the period	11,380	9,609
Denominator for diluted earnings per share:
Basic weighted average common shares outstanding during the period	11,380	9,609
Net effect of dilutive convertible notes		1,839
Net effect of dilutive stock options and DSU's	288	241
Diluted weighted average common shares	11,668	11,689
Basic (in dollars per share)	$ 0.09	$ 3.54
Diluted (in dollars per share)	$ 0.08	$ 2.94
Stock options
Denominator for diluted earnings per share:
Antidilutive stock options excluded from weighted average share calculations (in shares)	345	193

Segment Reporting (Details)

Segment Reporting (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2016USD ($)item	Mar. 31, 2015USD ($)	Dec. 31, 2015USD ($)
Segment Reporting
Number of reportable segments | item	3
Gain on sale of loans, net	$ 53,869	$ 37,398
Real estate services fees, net	2,100	2,742
Servicing income, net	2,088	635
Loss on mortgage servicing rights	(10,910)	(6,568)
Other revenue	152	136
Accretion of contingent consideration	1,895
Change in fair value of contingent consideration	2,942
Other expense	(40,318)
Total expense		(17,141)
Other income (expense)	(728)	(6,934)
Net earnings (loss) before income taxes	1,416	10,268
Income tax expense (benefit)	435	(23,704)
Net earnings	981	33,972
Total assets	5,304,724	5,210,852	$ 5,210,852
Corporate and Other.
Segment Reporting
Other revenue	36	58
Other expense	(1,115)
Total expense		(2,060)
Other income (expense)	(1,864)	(511)
Net earnings (loss) before income taxes	(2,943)	(2,513)
Total assets	28,686	28,570
Mortgage Lending | Operating segments
Segment Reporting
Gain on sale of loans, net	53,869	37,398
Servicing income, net	2,088	635
Loss on mortgage servicing rights	(10,910)	(6,568)
Other revenue	49	17
Accretion of contingent consideration	1,895
Change in fair value of contingent consideration	2,942
Other expense	(37,528)
Total expense		(13,315)
Other income (expense)	388	368
Net earnings (loss) before income taxes	3,119	18,535
Total assets	878,248	573,648
Real Estate Services | Operating segments
Segment Reporting
Real estate services fees, net	2,100	2,742
Other expense	(1,566)
Total expense		(1,655)
Net earnings (loss) before income taxes	534	1,087
Total assets	4,613	3,933
Long-term Portfolio | Operating segments
Segment Reporting
Other revenue	67	61
Other expense	(109)
Total expense		(111)
Other income (expense)	748	(6,791)
Net earnings (loss) before income taxes	706	(6,841)
Total assets	$ 4,393,177	$ 4,604,701

Commitments and Contingencies -

Commitments and Contingencies - Repurchase Reserve (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Commitments and Contingencies
Beginning balance	$ 5,236	$ 5,714
Provision for repurchases	379	1,012
Settlements	(258)	(1,490)
Total repurchase reserve	$ 5,357	$ 5,236

Commitments and Contingencies56

Commitments and Contingencies - Loan Commitments (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Commitments and Contingencies
Approved warehouse lines	$ 725,000
Outstanding balance of finance receivables	42,200	$ 36,400
Warehouse Borrowings | Non-affiliated customers
Commitments and Contingencies
Approved warehouse lines	$ 131,000

Equity and Share Based Paymen57

Equity and Share Based Payments - Equity (Details) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended		3 Months Ended
	Feb. 29, 2016	Jan. 31, 2016	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015	Dec. 03, 2015
Equity and Share Based Payments
Common stock issued upon conversion of notes (in shares)	1,839,080	1,839,080
Conversion price of convertible notes into common stock (in dollars per share)		$ 10.875
Common stock, shares authorized			200,000,000		200,000,000
CEOP
Equity and Share Based Payments
Common stock, shares authorized						25,000,000
Common stock, issued during the period			155,420
Average sale price per share			$ 13.85
Net proceeds from sale of stock			$ 2,100
Sales commission			$ 43
Stock options
Number of Shares
Options outstanding at beginning of period (in shares)		1,115,280	1,115,280
Options granted (in shares)			0	35,000
Options exercised (in shares)			(150)
Options forfeited / cancelled (in shares)			(19,333)
Options outstanding at end of period (in shares)			1,095,797
Options exercisable at end of period (in shares)			488,515
Weighted-Average Exercise Price
Options outstanding at beginning of period (in dollars per share)		$ 11.85	$ 11.85
Options exercised (in dollars per share)			2.80
Options forfeited / cancelled (in dollars per share)			16.33
Options outstanding at end of year (in dollars per share)			11.78
Options exercisable at end of period (in dollars per share)			$ 8.27
Additional disclosure related to options
Unrecognized compensation cost			$ 3,000
Weighted-average period over which compensation cost is expected to be recognized			2 years 1 month 6 days
Aggregate grant-date fair value of stock options granted			$ 0	$ 236

Equity and Share Based Paymen58

Equity and Share Based Payments - Share Based Payments (Details) - Deferred stock units $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2016USD ($)$ / sharesshares
Number of Shares
DSU's outstanding at beginning of period (in shares) | shares	80,750
DSU's outstanding at end of period (in shares) | shares	80,750
Weighted-Average Grant Date Fair Value
DSU's outstanding at beginning of period (in dollars per share) | $ / shares	$ 9.36
DSU's outstanding at end of period (in dollars per share) | $ / shares	$ 9.36
Additional information regarding DSUs
Unrecognized compensation cost | $	$ 64
Weighted-average period over which compensation cost is expected to be recognized	3 months 18 days