As a whole, the Mortgage Operations generates income by securitizing and selling loans to permanent investors, including our own Long-Term Investment Operations. The business also earns revenues from fees associated with mortgage servicing rights, master service agreements and interest income earned from loans held for sale. 

2 

The Warehouse Lending Operations or Impac Warehouse Lending Group, Inc., (“IWLG”) provides short-term financing to loan originators. Through the Warehouse Lending Operations, we fund mortgage loans from their closing date until they are sold to pre-approved investors. This group earns fees as well as a spread from the difference between its cost of capital and the interest earned on the capital invested. Customers include approved mortgage bankers, IFC and many of its correspondents. 

3 

The Long-Term Investment Operations invests primarily in non-conforming residential mortgages loans and securities backed by such loans. The group’s income is the difference between the interest it earns on its Long-Term Investment portfolio and the ex- penses associated with its financings. The majority of the loans held in the Long Term Investment Operations were originated or acquired through the Mortgage Operations. 

In summary these three businesses are inter- connected and provide a full spectrum of mortgage lending and investment services for its customers. 

WIELD THE LATEST TECHNOLOGY 

– Chapter 3 – 

