IMH - Earnings call transcript Q4 2018 | Impac Mortgage Holdings, Inc.

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Operator

Good morning, ladies and gentlemen, and welcome to the Q4 2018 Impac Mortgage Holdings Incorporated Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time. [Operator Instructions] As a reminder, this call is being recorded. I would now like to turn the call over to your host, Mr.

Relations. Investor from Moisio Justin

Justin Moisio

Thank you. fourth for Impac's Thank morning, XXXX earnings everyone. quarter you call. joining Good

to These During Act factors Chairman this you materially recently is GAAP that the would call, statements I we would presentation, our our and Holdings. risk forward-looking will to make projections the most exposure. risk disclaim Mangiaracina, business of could to, cause cash interest get identify update to and guidance, introducing important the documents Mortgage like I duty George and not This Securities risk and as effective actual CEO projections earnings, the by in market in to to results contain or differ given under but limited the and information including statements. taxable Impac any expressly date in herein. filed to, refer those XXXX. XX-K and of and started of outlook like contained flows, Exchange rate to we regards or any other forward-looking factors

George Mangiaracina

and Vahdat, you and Glorckner, Justin. COO; Welcome me Head Licon, Financial Furey, quarter and have online thank call. Counsel, you, for with Rian fourth joining Paul Controller; Reporting. our XXXX our Thank Legal earnings Nima Impac's I'm of Jon

loan of the yet the for the quarter Before XXXX, served GSE three Xth eligible, and to difficult lender government recent and consecutive fourth quarter quarter that like mortgage results, all survey interest lenders to mortgage prospects deterioration the to of non-GSE types, be origination. fell most In GSE in the mortgage I'd rate to for proved sentiment to months all-time across at we experience survey reported outlook Mae's government. low the profit to an in another conditions our final driven Fannie discuss for review spend industry limit the what markets moment originators. continues residential XXXX,

be when to Diego, earnings reported second projects XX% home annual sales San of XXXX of quarterly California, lending in originations of a lowest decreasing XXXX our fourth activity with last marginally In Mortgage industry future. trillion, and home to downward decline since rise from calls, origination volume markets it's $XXX previous year on with discussed in to of and quarter to MBA the quarter been respect likely XXXX San local the to early XXXX by to Estimated volume to output XXXX. volume, decline the trillion. be total then flat fourth totaled to recent MBA County, approximately the of XX% first in that Riverside, XXXX $X.X XXXX including third the of year-over-year Angeles market lien the further Bernardino, The XXXX. Southern Los for foreseeable continue $XXX co-logically projections XXXX lowest end to the has billion. the since inside Orange quarter fourth drop and our of their As mortgage $X.X the and dropped carryings of since to of XX% levels below XXXX Originations originated mortgages of billion incremental according for quarter as analysis mortgages finance. XXXX

historically our X production the over originated we for nearly Southern California XXXX. in through an X loans in in California accounted X X experiences and every of company of originated XXXX, increase we The XXXX how will It's Reform the impact Act local the tax California the of unclear the state deductions refund season. next several in for volume with associated quarters. limiting tax Tax [indiscernible]

to reserves These arguably servicing market were the securitization navigate. mortgage quantitative to we near-term. trends most not from have further market accommodative market product the prosperity industry rate spreads that dynamics Liquidity forces. nonbank and within participants over protect were the unfavorable that lenders. weightings value will have conditions the headwinds, lines. share continued of creating recent to the an lenders policy, shifting of capital tapered conditions evolution Post confluence mortgage immune market language depleted. Impac trends rates agreements hold depositories at risk market many financing tighten nonbank MSRs; depository of the Term last to an by excess MSRs. reserves by believe and and to of MSRs the have originators, these held in be and to resulted accumulated of U.S. over or GSE of economic of and Fed capacity to acknowledgment and the Taken made imbalance margin traditional course over attempt prolonged the we to between expense created market liquidity. and in over Notwithstanding the become to period government the and a mortgages favorable of face absolute available monetary debt year served mortgage nonbank for on In became and been accommodative lenders non-depository future ease macro a MSRs possible continue our historic macroeconomic past profitability to of the preassigned of rights, current lenders these increases, more to the of exposed through also, crisis in from totality, margins treatment signaling developments compressed year lowered in not last have more has believe non-depository difficult GSE easing measures environment lows; do factors: and decade's rate for and broader treasuries; the that

market plan and address conditions. a scenario these for to manage to anticipated we However,

right-sized last and have and year, the our continually overhead. we cost Over proactively measured

results, on operating GAAP credit company's by activities our of direct-to-consumer we've within channel. business been and This have government through through EPS. and our has We maintained and income not company, shift to near-term healthier-margin focused offering, GSE our origination NonQM product disruption the optionality course, concurrently without the our

these Our stresses. reporting reflects headline

have the XX an call company's However, measure third-party In we loss now central a recurring of months. these and of on to three more excluding One, initiatives via matters, a the I wholesale via year results comprised costs rightsize operates company's and operating the to origination effectiveness correspondent. of some reflect spend last for provide performance income the loses was repositioning. view legacy to run compared as our $X.X XXXX business-to-business accurately our The million themes executed update across origination, associated adjusted channels; with and the will moment direct-to-consumer, company of over center, and $XXX the and nonrecurring GAAP common. million.

price of sensitivities and company determine is proactively due a reduction peers, reduce third and quarter and and interest market to of the XXXX earnings previous in well channel to designed margins call beginning in compression market around continued the that volume many the organization, for compensative mentioned for rates order fluctuations As it's drive on calibrate XXXX excess will in That compression calls, in to company optionality more our to to the contracted the conditions. also effort later workforce Furey this to closely on compete continues share. expense to of the examine commenced expansion if of capacity. scaled for allowing variable platform The versus -- the changing touch of efficiencies us company's market the and proactive whom of continue The and margin this while at to which to become positions behavior believes continue with headcount appropriate favorable. protect call. will conditions executive the team conditions Rian sizing center

enterprise Jamboree. cost the our October all run respect marketing, concept. common commit objective operations continued lease with This to part fixed our load. to capital realigned center call In of direct deploy Irvine, and and across our production company cost management and focus relocated operating As technology, XXXX, Orange at to Enterprise to consistently markets. County headquarters move resulted of and will in of improved to efficiencies management from we've into under recently across expense consumer compliance post-closing our resources savings an of expense, teams employees channels, critical the leverage underwriting consolidating XXXXX

accounted be of need to requirements mission, the million XX% towards NonQM the now In on Two, NonQM consumer to XXXX origination of direct, versus staff TPO transition consumer through institutional broker by loans NonQM NonQM total versus in while is channel of in company's originations quarter seamlessly market of of origination, to to in growth originated with XXXX, only added gained XX% channels to the XXXX. between securitization, total XX% recognized to XX% company increased core is we've demand. substantial the has company year-over-year the marketing traction $XXX being percentage following company further between The fourth This able up curves. Within NonQM. redirect regained responsibly NonQM. respectively alternative production personnel as focus results our creation, or the matching To enterprise. NonQM XXXX product and management million the for redeploy and the retaining the XXXX. based $X.X revised from consumer gain residential our in allowing the and benefit the ability quarter varying QX credit recalibrate for XX%. continues evidenced of a XXXX million and business. mission campaigns resource of Additionally in channel that billion TPO fourth with channels of investor around company and the direct our leader knowledge. The the $XXX offering each volume in selection in $XXX product and and volume a product, XXXX, consumer the in training, community

X of through organically in continue through markets to investors. the as XX% evolution of NonQM in direct down long-term securitization In stable expand supplement of of and our ability concentration further credit markets, represented our in of the and the mid-XXs positive both and to the and of Starwood quality, company's NonQM origination XXXX Wall decrease with versus company's XXXX. production, quality S&P with California performance approximately and company NonQM our During factors and backed performance, our NonQM score profile. structure. XXX NonQM company quarter NonQM the a primary average the product XXXX to borrower exclusively November to levels XX% distribution loans credit origination. various it reflective the next fund The by origination to to AAA would group remained year-over-year. Property weighted rankings California STAR announced loans. integrity the the of trend ratio ratings fourth our NonQM closed The at of XXXX-IMCX, XXX XXXX, second and We've of agencies average market With to of and the was in efficient it's in evidence maturity oversubscribed down consistency within FICO and profile expansion investors XXXX-INCX Street secondary value of have for our credit capital collateral as include a grow trend, be in overall signifies both, The like XXXX the resulted used capital the the of loans. our structures NonQM alternative NonQM were through investors. development of execution, respect step rating highlight commitment in acceptance it's capital maintaining for of adjustment Trust, to the move NonQM NonQM permanent is by NonQM and of capital geographic with Impac's hedge STAR we from

utilized by company's by We allocation. of this in a sheet capital XXXX in servicing capital December the higher reallocate and proceeds liquidity of of Starwood to follow-on expected retiring been deal. non-investment the of balance Starwood third A the XXXX, to a portion quarter Mae again $X.X XXXX, have for down the Create it's Ginnie bonds NonQM structure cost backed The sales by XXXX. of the deleverage liquidity by third rate portion interest company billion sales these the The of to $X.X higher take to capital also MSRs to capital collateral Three, second and sale and our XXXX. in as in debt billion proceeds executed MSRs Starwood deals our invested from of warehouse securitization structure Fannie be NonQM company franchise, of share of XXX% Mae finance the NonQM the pledged debt. in redeploy and intend two net the increasing the revolving to by the secured scheduled debt again invest securitizations. grade quarter including liquidated of will

momentum to we've assets continue reengineering. company, invest proceeds we'll for teams investments the for We on utilize believe will financial on portfolios. including alternative our net several superior activities, and also to marketing credit concurrent and We our MSR the our advantage our teams that associated created risk-adjusted last technology build quarters to production NonQM a be NonQM our and by the core these and returns franchise in the the capital in NonQM products. over directing core NonQM is related competency in to further differentiator the business the resources will added returns competitive value with and to

on As Rian XXXX. a discussion Market of a Furey market mentioned quarter financial with down billion, activities. floor-bulk XXXX call, we result over we end second servicing portfolio our billion on provide our origination a values to may our to values greater we exceeded Paul stated the XXXX $X.X who MSRs detail on be now if we fourth pass basis the from to in sell determine Controller, selectively closed and our and as $XX.X COO, at Licon, the earnings attractive. [ph] of of basis the will economic quarter and results third XXXX, I'm and going that

Paul Licon

million to $XX.X of or for common in million operating an will a of common you, net loss of was for review common loss of $XX.X loss XXXX. diluted XXXX some We per during per in net QX fourth or or adjusted QX loss Adjusted well share or share XXXX million million $XX.X compared provide $X.XX diluted and Great. $X.XX additional $X.X servicing compared reported Thank quarter. QX QX to as the a common financial George. I per results, diluted $X.XX per production diluted as on operating $X.XX the share a now brief color as XXXX.

operating per net year diluted or the fourth for ended common for year the sale December $X.XX million XX, of on XXXX. ended $XX.X million million $XX.X the of million XXXX of diluted loss December Gain we fourth loss ended was a XXXX common or share the per $X.XX $X.XX compared operating $XX.X XX, net For the XX, year million XXXX, as the for loss for to $XX.X $X.XX ended compared Adjusted for December diluted $XX.X per or to quarter as to million reported year per XXXX. $XXX.X or of compared share, December XXXX. loss share, common an adjusted common diluted declined of XX, share quarter

for $XX.X comparable million year ended compared period declined XX, sales XXXX. XXXX, the to For $XXX.X December million of gain on to the

production. Now for update on

volume XX% $X.X quarter of XXXX, from million, was fourth the of During XX% as million in this $XXX originated of quarter was XXXX, the of the to a total quarter decrease the origination in the $XXX third of fourth billion decrease and compared XXXX. a

to the $X.X money for year billion ended $XX.X XX% year for decreased approximately in ended Purchase decreased as the billion to compared XXXX. XXXX, $X.X refinanced as XX%, billion ended XXXX, For billion the to compared $X.X volume XXXX. transactions year

XXXX channels direct has wholesale line of NonQM retail fourth accounted of weighted TPO selectively between Some The is originations average originations additional of XX% prior first at color the consumer score NonQM FICO for a of weighted average XX% and quarter XX% of weighted NonQM production, although score quarters production. which NonQM quarter rate a weighted average in XXX XXXX, channel of the LTV been of XXX and average FICO LTV of fourth with consistent the XX%. accounted with for the

servicing third in sale mortgage decrease repositioning NonQM the December for to and the of fourth our portfolio quarter $XX.X XX, servicing year primarily generated XXXX, the to our net the during position. liquidity direct decreased on for compared a Moving to XXXX of $XX.X XX, billion our At UPB as of due strengthening XX, focusing the the $XX.X was increase billion net during by on $X.X of in core December XXXX, our portfolio The shift fourth billion over XX% strategy the XXXX. of lending of company the December mortgage year ended portfolio income $XX.X due onto servicing XX, quarters efforts and business million to ended XXXX. servicing servicing; million servicing the at December XXXX fees

decreased As million the XX, $XX.X at December in shift $XX.X as the XX, million compared a XXXX to strategy, XXXX. December million sheet result to of balance $XXX.X by on MSR this at

was liquidity; MSR as million, versus outstanding capacity with and warehouse total onto borrowing capacity million Moving borrowings XXXX, financing of borrowings. $XXX $XXX was $XX.X XX, available December no of million

expenses. the of XXXX, during total consideration decrease in expenses; quarter a quarter fourth million $XX.X compared to Finally the to excluding total XXXX fourth was contingent expenses impairment of charges XX% million and as $XX.X during

the expenses million, For total in to consideration expenses. XX% decrease ended was million $XXX.X for the charges XXXX, excluding as XXXX, total and ended contingent year year a compared impairment $XXX.X

personnel XXXX to the due The to in QX prior expense staff decreased to related is commissions from million quarter. reduced primarily $X.X origination million decrease and During or volume. $XX.X XX% reductions decline

XXX the compared of the result of expenses to The end staff a decreased headcount by align to origination year, company at XX% loan at with end volumes XXXX. as reductions capacity during and continue As will the to XXXX in of XXXX. XXX

business $XXX,XXX to and promotion of to $X.X XXXX to call to results. compared $XX.X decreased expense the G&A Furey as our to Rian million expenses concludes XXXX. addition, mortgage million QX decreased the over other prior That XX% turn $X.X the million quarter operations. financial by for XXXX. In will now I quarter from for fourth discuss for QX

Rian Furey

morning. Thanks, Paul. Good

channel observed we quarter saw continued competitive originations, downward fourth the with consistent the in particularly on our in broader For pressure consumer direct agency and refinance market.

We've funded space chat call of product. management out, around like on XXXX makes around the at further have made Investments our marketing volume. radio in excess traditional hold we digital much consumer at should which of footprint web, channel, focus XX% takes a our NonQM our center users now capacity earlier target our of with both VRM, and in NonQM. direct bring technology up expanded reduce which and way our reliance Facebook originations us it's email arena campaign as to efforts consolidation NonQM digital enabled of new efforts in us campaigns and that consumers aimed works allowed As XX% core lower platform we've started adding direct mail, new and as further in targeting and the to on the TV those cost. to

said our expansion NonQM credit our growth geographic As driven in earlier, of by George is parameters, rather to-date expansion. not

investors, traditional of estate consumer all of to programs single-family Our team self-employed alternatives quarter, documentation. using to are the our more we fourth In California popular completed reallocation our real and borrowers both direct headquarters. the Irvine, income

physical As advance consolidated George to the ideology. across leaders and silos consumer common filming eliminating said, operations. leveraging our our separation us our wholesale the allowed leadership operating in run of fourth quarter for teams our In skillsets the our correspondent direct of we

react business continue in FGSE direct consumer able and direct optionality are to consumer fluctuations to our from in TPO We while in to volumes refinance. to move [ph] easily return associates those to just channels the maintaining personnel now more

and As [indiscernible] we continue analyze the enterprise. to can holistically we closely across our adjust capacity, now monitor

we'll this efficiencies of plan ultimately progresses, to onto business platform, the year system. consolidation the between realizing technology and on As the continue long and one focus further one common origination

launched pricing, technology focused grown TPO in We've to on From to loan submission diversity. TPO teams the operational streamline invest technology quarter In a base in and continued enhance tools the in efficiency selectively fund status to our updates. addition executive account in to we've standpoint, leveraging geographic our we've enterprise, channels.

automated loan around Our to underwriting. With hand I'll that, call the be and back will conditioning the future initiative in George. automation

George Mangiaracina

XXXX. market all year the highlighting task XXXX to direct-to-consumer XXXX I'd totality XXXX to speeds for by more by so across XXXX. we made conditions. like In origination January accomplishments some prevailing of close With was to our in the to which measures all and instituted challenging a the reposition that the platform position Rian. company's throughout repositioning us were a prepaid reduce GSE channel, respect we company, undertook of the Thanks, channels. well elevated

increased resulted prepaid of in to with acceptance is fact commitment that in GSC relationships evidenced the and valuation effort cohort; the markets of enhanced normalization and marketplace, into in XXXX and has that our loans converged liquidity levels. industry speeds the remained many Our partners, consistent our and by this GSE to XXXX our our of our discipline and and capital best and with MSRs have continuing execution

a our non-core of step NonQM production GSE our respect MSR for fully our precondition for corporate GSE origination prepay in redeploying our NonQM consciously market business, with from teams relocating by in integrating was to Solving to Also October our TPO franchise. from and completed in into to levels GSE-MSR of our the XXXX direct-to-consumer our channel focus securing assets strategy franchise. clearing headquarters redirected capital channel, story respect book the away we to With Irvine. to in we our our to order on final it foundational

a with a that newly in create our endeavor evidenced and for in this our align evidence XXXX, I by share accounted we fourth quarter senior TPO in corporate value order Kuelbs for the from July in of $XXX is of In every for our continue restructured form form grants. align incentivize option grants. of included our to of the the long-term mortgage assemble equity from goal of in We of employees last CFO, content industry in to to XXXX, Brian members XXXX and seasoned in knowledge, in governance the taken in this $X business in a XX% the bonus for also equity of with with decision-making entered of C-suite, year-over-year experience a management company, the to of award and February in included and year control and equity management XXXX XXXX. of market cash success XXX% NonQM senior sophisticated of material middle leaders the and our shareholders. our growth from we functions. NonQM new TPO with leadership company's entire quarter unit TPO and accounted in award create in to relationships. units Board the XXXX the XXXX professionals million of dislocation business component Throughout bonus approximately shareholder XX% restricted in The to We'll XXXX, value volume non-C-suite have the restricted vertical channel; XXXX. of leaders Our deep stock of participate company. XXXX. elected the of of The and announced structure compensation volume. slate unit option In is addition Directors the NonQM team the fourth advantage billion To predominantly XX% alignment to franchise business only voluntarily the

We to have complete personnel exited currently our be talent. We've with at these respect The recruiting structure last year, selectively illustrate and profound disciplined stands XXXX continue while added To have over our will changes company in how company XXX cost $X.X and the the XXX. down to million XXX managing been of and costs the since XX, with approximately employee XXXX. XXX, associated severance activities. employees December to encouraged count from

$X NonQM in account but executive continue to this $X followed State of geographies will Ginnie a In subordinate portion to liquidity MSRs respect by of NonQM presence December utilize and California. we goals were Mae of expand in creating with safety in our XXXX noted, Mae billion the bonds invest NonQM redeploy and of to of billion of XXXX, to the company liquidity effort to our over sold sale by MSR previously culmination a liquidity outside that the in we backed deleverage margin of from the traits in assets Fannie of and dated derisk ultimately long the As non-core to loans franchise. to a August These MSRs.

The in corresponding to both bulk and XXXX, advantage in we XX% California made NonQM a on of positioning also half These basis or the resolved resolution three company latter as activities basis successfully of non-delegated incurred to dismissal We're settlement to our actively through our matters future. XXXX approximately companies closed the production origination detail the related the For lawsuits. costs space. are along a of XXXX, crisis with legacy for longstanding buy professional loans the with in matters volumes legacy to matters in in fees litigation and out NonQM company the filings sustaining NonQM up XXXX. of back growth related origination the and of represent related channel stage XXXX. company legacy SEC competitive in of the legal take $X and In mortgage legal the discussed contribute production which of crisis XXXX. the XX% settlement building dating initiatives associated previous These compared pending early to securitization million

provision rights, and Finally, a addition traditional in That legacy operating litigation costs. income. recurring EPS. income earnings income call changes certain gauge items servicing mortgage to introduced to such of last net severance metric as recurring the or excluding the performance utilizes is management measures adjusted company's adjusted the we repurchase GAAP operating for and in reserves, Effectively non-recurring gain loss on

concludes recurring of reflection and our company's loss loss and income a $XXX was $X.X million, the the million, in adjusted the XXXX, the turn your our of up the in company's of to of accurate ended now you prepared for will XXXX course Justin open year the view, I Moisio That initiatives evidence of a the executed effectiveness of the operating time. questions. more reported GAAP For for back XXXX. to remarks. performance Thank it call we've better over

Justin Moisio

now accept we're questions. to ready So

want great. that So open would the line, be up Q&A if to you

Operator

comes question of the first Securities. Trevor Our from Instructions] from JMP line [Operator Cranston

Trevor Cranston

the follow-up adjusted first. on about comment earnings Just the operating to recurring last

shareholder just for first your the full and heard year quarter? the [ph] XXXX, number I for So was

George Mangiaracina

Sure.

XX, $X.X operating ended three the December the For million. XXXX, adjusted loss was months

view and of professional However, we I year fourth note of settlement an that severance events. did will we quarter, include kind legal not fees does as -- full into number not allocation that the those

in for So to those line the three we items that the quarter. we fourth million year that that excludes haven't allocated about $X incurred

Trevor Cranston

of you were at the over goals you you'd of those I wondering numbers for course you the the a And obviously to Then if throughout that are a as got continue some your to sort into terms talked that have in XXXX and XXXX; initiatives the Thanks. to be able guys and efforts that. the meaningfully sort target you forward? you that and pretty of that willing believe of what in this go was if of NonQM about on we growth business, discuss and hit XXXX grow point have origination lot business gain hold. initiatives could

George Mangiaracina

puts And XXXX, XX% done backed increasingly an a collateral. growth to of then the we're that retail for look What very the it our you larger not addressable one was $X Sure. of opposed we marketing rate speak currently by TPO months say in that that market; saying I'll at the as we know, in. because up call geographies that's out pretty commitment $XX between to that and 'XX; growing around in run but subordinate was target account I XX% be team NonQM of XXXX are our by you 'XX buildout, XX quarter that and billion run XXXX executive the digital data come-off [ph] additional in we $X.X year-over-year. production see the so active footprint I'll sense fourth also in think billion three building -- securitizations $XX by bonds we're the XXXX, rate NonQM and over a preface to campaigns where will in achievable, billion invest did would center, quarter billion a in in that market. in aspirational should it's originations for to the a and $XX addressable gives that growth the on XX% I account that as billion executive from you XXXX, between the Nomura investing somewhere industry in out portions were piece to something it decent and and

we the the assets MSR billion origination non-core And So capital our our strategies and of size away the a investing originations. per of of liquidity we per That sheet in sort portion and give structure; from $XX some of can $XX a NonQM how bottom us our of investment billion create. capital million of company feel sense the targets. to liquidity will balance you per we repositioning for levered billion into that's X.X% what securitization, million, about

Trevor Cranston

-- markets can those if the volatility in has any the investments And we impact the NonQM would the change in there investments on the from maybe or saw credit fourth return those you on been market during And expected what be? securitizations, quarter? comment

George Mangiaracina

a from quarter. can mean, fourth there the taking and We give some quarter market. of I but a prolonged compression was for sure you supply the noise of in LTV away sense the of a pretty are consistent in lot sales, had FICO I our fourth coupon,

found some I pressure it's over NonQM space. the of way into think credit

fourth So first backup been our NonQM margins markets quarter sales. to that of basis for in XX -- we the gained the maybe clearing nicely. back saw points XXX We've quarter, traders in some in those have

to happy and return of In the is return of leverage low terms we cost into believed our value NonQM. our we on -- we're upon economic double-digits depending assets believe returns think so that's of capital course. portion excess the The would risk-adjusted those bottom non-core of or in be MSR trade what the returns what stack, originates, on we

Trevor Cranston

due gain fourth in looked The originations. number stable and how the where wondering, fourth obviously it in on you GSE further for like mostly if if Thanks. which shift were mix business margins comment within and had the or I like the sale the side? that it they been deterioration specifically up were any on kind GSE is within to improvement or there quarter, GSE margin could with more ticked was was product probably sounds between quarter, NonQM on it the of they

Rian Furey

competition to around is to refinance. particularly there in continue GSE, excess price the see we capacity believe continue We marketplace,

we the see fourth is normalized correct the product market. GSE we quarter, to expect that excess in until around in continue capacity wouldn't margins and compressed So further to

Trevor Cranston

opportunities the last if or to portfolio selling NonQM the on on look of you'd guess the a of side that if view forward? at question I focus something grow you remaining going and MSRs you continue that core are on that like of would can business have me; for you comment more to on book, guys as and the retain as those the are that to thinking about that's And you that part you how opportunistically sort

George Mangiaracina

the -- a the and is the come One in a that retained for MSR to servicing fairly deal would portfolio. volume of clearly securitization good reposition be from the leverage up to NonQM redeploy of high, of being freeing Freddie Mac is it, able takes portfolio to there a reasons. it transition able liquidity number We've is so off liquidity

order to servicing consumers the market the otherwise recapturing some of Additionally, loan to tough book in so retail portfolio, provides call been in driving maintain as job to has lead us origination to that officer originate. on portfolio and our funnel for good our organic to of combine that feed volume do group we center. We run-off wanted the very

we manage another narrow probably low lot we So market for of the the as that year think of have XXX kind is economic continue a will rates, at the XXXX. range continue of value portfolio. we extent, if to XX-year on backup that off there and end to get business and self-generated And I or of all for we in comes

was If our I XXX. a in capital think we again in market recalculate that in traded Mae when elsewhere. us the off see tenure upto close rates, to Fannie we might value [ph], would portfolio to you freeing of gas-out the dynamic invest economic have

Trevor Cranston

results that deal with quarter well? expenses is there I release clarify, fourth about comment wanted as XQ the associated in expenses or press the recognized were some then, was all just in And MSRs the the quarter; selling the the in those fourth to of the during

George Mangiaracina

were No, all quarter. of in them fourth the recognized

Operator

you. Thank

the over [indiscernible]. here We to the back for Q&A will to call conclude I closing like would the presenters turn remarks. the

George Mangiaracina

call. us. order will Thank And in our we thank joining on our first all for you be quarter earnings fourth for We back short for call. you quarter joining us

Operator

participation Thank conference. have today's wonderful concludes this you a gentlemen, and for day. Ladies your and

may You disconnect. all

Impac Mortgage (IMPM) 15 Mar 192018 Q4 Earnings call transcript