Irvine’s Impac Mortgage Holdings Inc. has found a way to capitalize on the same foreclosed homes and empty office space that has pushed the demise of many of its colleagues during the past year.
Impac, which two years ago was one of the country’s largest investors in home loans to people with less-than-perfect credit, said last week it plans to grow its business of helping banks dispose of their growing ranks of foreclosed homes.
The company said it is creating a disposition business called Real Estate Owned Solutions. The business, which state records show as being based in Santa Ana, is slated to begin selling homes in December.
The company said the venture is part of Impac’s new focus,mortgage and real estate services and mortgage asset management. The company stopped originating and investing in Alt-A loans last year to restructure amid the ongoing mortgage meltdown.
Impac counts a market value of about $15 million. Its shares peaked in late 2004 when the company had a market value of $1.6 billion.
Specifics of Real Estate Owned Solutions’ business plan were not disclosed. Sources speculate that Impac is creating a business to buy bulk portfolios of real estate so it can place those assets into auctions.
Along with the new business, Impac said it has made strides cutting a big fixed cost: excess office space at its headquarters.
The company signed a sublease agreement for 90,000 square feet at its namesake Impac Center headquarters in Irvine.
The newest tenants weren’t disclosed due to a confidentiality agreement, said brokers with Irvine-based Madison Street Partners, which has been handling the leasing for Impac.
For more on this story, including speculation about who Impac’s sublease tenant is, see the Oct. 27 edition of the Business Journal.
