According to the companies, this new strategic relationship will enable Impac to ramp up its non-QM loan production, with Starwood agreeing to purchase up to $600 million of these loans over the next 12 months. Starwood is working on an initial securitization that will be 100 percent backed by Impac’s non-QM collateral, and Impac expects to co-invest in these securities and in future Starwood securitizations.
“We are pleased to have Starwood as a partner in the creation of responsible alternative loan products that satisfy both consumer need and capital market demand,” said George A. Mangiaracina, President of Irvine, Calif.-based Impac. “After having collaborated in the non-QM space for several years, we are excited to formalize our existing Starwood relationship. This arrangement will further Impac's competitive advantage in the non-agency segment of the residential mortgage market and permit the company to participate in the longer-term economics of the loans we originate.”
“We are excited to formalize our partnership with Impac, which we believe will help scale our opportunity to provide non-QM loans to high-quality borrowers while sourcing investments that will continue to deliver strong risk adjusted returns for Starwood Property Trust shareholders,” added Steven Ujvary, Senior Vice President of Starwood Capital Group, the parent company of Starwood Property Trust.