BUILD  SYNERGIES INTO YOUR BUSINESS After identifying and helping to open up the niche market of non-conforming mortgage loans, Impac studied the potential customers in that sector. We identified three key end-users and developed core businesses to serve them. Then we went one step further and found ways that our businesses could  help one another as they are serving customers. Such synergies extend our reach, balance our risks, increase our market understanding and improve  our efficiencies. The Mortgage Operations works closest to the point  of sale and is comprised of two divisions. The first division, a conduit operation, is Impac Funding Corporation (“IFC”). IFC purchases primarily  non-conforming mortgage loans, and to a lesser extent, second mortgage loans from its network  of third-party correspondents and other sellers. Three Key Businesses The second division, a wholesale/retail operation, is known as Impac Lending Group, (“ILG”). It markets, underwrites, processes and funds mortgage loans  for the Company’s wholesale and retail customers. 1 LIKE MEMBERS OF A ROWING TEAM, IMPAC’S SUBSIDIARIES  APPLY THEIR DISTINCT STRENGTHS IN TANDEM TO MEET  OUR CUSTOMERS’ EXPECTATIONS. THEY PULL TOGETHER  TO DELIVER COMPREHENSIVE MORTGAGE LENDING  SERVICES WHILE PROPELLING THE COMPANY  TOWARD ACHIEVING ITS LONG-TERM GOALS. Chapter 2: Build Synergies Into Your Business 13.