Impac Mortgage’s common stock has been delisted from the New York Stock Exchange as the lender switches gears.
In an announcement Wednesday, officials at the exchange said Impac’s stock would be suspended immediately while the delisting proceedings are underway.
According to NYSE, Impac is not in compliance with the $2 million, $4 million, and $6 million shareholders’ equity requirements (Section 1003(a)(i), (ii) and (iii) of the NYSE American Company Guide).
“Because the Company informed the NYSE American in its required quarterly plan update that it cannot continue to demonstrate an ability to return to compliance by February 26, 2024, which was the date the NYSE American originally granted the Company to regain compliance with the NYSE American’s continued listing standards, delisting is appropriate,” the release states.
Impac will not appeal the decision.
Last month, the lender said it would wind down its TPO business and switch to a broker model as a way to survive the housing market correction.
“Non-transitory inflation and Fed tightening, coupled with widening credit spreads, has reduced the addressable market for our product offerings,” company leaders explained in a press release.
The company also voluntarily relinquished its GSE Seller/Servicer designation, having had no direct GSE deliveries since 2016 and 2020, respectively. Its designation was already suspended thanks to this period of non-delivery. Impac will act as a TPO for its brokers “as needed.”
The overall theme of the change is keeping costs down. The same update noted a buyout of its commercial space lease, reducing its office space to just 19,000 square feet and maintaining a hybrid work model. This saves the company $8 million dollars.
Impac will expand its suite of loan products and programs that the broker channel will support. It expects non-QM originations to be the “dominant” product within the broker channel.
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