THE GREATEST BREAKTHROUGHS OFTEN RESULT FROM  TESTING ACCEPTED HYPOTHESES AND ASSUMPTIONS. IMPAC CLOSELY EXAMINED THE MORTGAGE LENDING  INDUSTRY, QUESTIONED ITS LENDING PARAMETERS AND “DISCOVERED” THE VIABLE NON-CONFORMING  INVESTMENT GRADE LOAN MARKET. Our legacy of innovation began with our SMART series of loan products, which provided mortgage originators across the country with the first loan programs designed to compete directly with the traditional portfolio lenders, banks and thrifts. We have become a leader in our markets by em- bracing innovation in every aspect of our industry, starting with questioning the basic assumptions  of making mortgage loans. We have maintained our strong presence by creating products that  marry the needs of our customers with those of secondary market investors. Impac Mortgage Holdings, Inc. was among the first companies to focus on non-conforming investment grade loans, those not currently meeting the purchase guidelines of government-sponsored entities such  as Freddie Mac and Fannie Mae. Since 1995, we  have been growing and becoming a dominant force  in that market. We believe that non-conforming investment grade loans provide an attractive net earnings profile, producing higher yields without commensurately higher credit risks. CAPTURE A NICHE MARKET 9. Chapter 1: Capture A Niche Market