As Andy described earlier, all of this record production feeds our servicing portfolio, which at December 31, 2020 totaled $426.8 billion in UPB, up 6% from the end of the third quarter and up 16% over the end of 2019. These businesses are foundational to PFSI and not easily replicated. Net income in the fourth quarter was the second highest in the history of. And I'm pleased to be joined by PennyMac Financial Services CEO,. I am pleased to note that PFSIs Board of Directors declared a fourth quarter cash dividend of $0.20 per share, representing a 33% increase from the prior quarter. the financials in more detail later on in this discussion. North Carolina Permit No. And as our production mix continues to shift toward direct lending, production expenses as a percentage of fallout-adjusted locks are expected to trend higher. The total sale was $1.7 million. Are you interested in helping the next generation of homeowners fulfill their dream of home? The number of approved brokers totaled 1,574, up 11% over the end of the third quarter. We built our correspondent business into the largest in the U.S. over the last decade while at the same time growing our servicing portfolio, primarily organically. Good afternoon, and welcome to the Fourth Quarter and Full-Year 2020 Earnings discussion for PennyMac Financial Services, Inc. The price of the stock has decreased by 4.44% since. We were quick to step up and aid borrowers as the COVID-19 pandemic spread across the U.S., affecting many of our customers. What is the average return per transaction made by David Spector? The prepayment speeds of PennyMac Financials subserviced portfolio which includes mostly Fannie Mae and Freddie Mac mortgage servicing rights owned by PMT decreased slightly to 38.9% from 39.2%. Our capital markets group achieved significant hedging gains that largely offset $1.1 billion in MSR fair value losses over the year, which were driven by historically low interest rates and fast prepayment speeds. Wells Fargo & Company raised PennyMac Financial Services from an equal weight rating to an overweight rating and lifted their price objective for the company from $54.00 to $75.00 in a report on Tuesday, December 6th. Additionally, we believe FHFA's elimination of the adverse market refinance fee has resulted in a larger population of loans that would benefit from a refinance at today's lower rates, further supporting the origination market. However, margins in this channel remain attractive. Importantly, we continued to repurchase stock, with 2.6 million shares of PFSI's common stock bought back during the quarter for an approximate cost of $155 million. Susquehanna Fundamental Investments LLC raised its position in shares of PennyMac Financial Services by 24.8% during the 4th quarter. Specifically, backtested results do not reflect actual trading or the effect of material economic and market factors on the decision-making process. The company has a current ratio of 0.55, a quick ratio of 0.55 and a debt-to-equity ratio of 1.46. Right now, we realize the importance of home like never before. Chang (pictured), who has been with PennyMac since 2008, will step down from his roles at the end of the year. 18.5 million shares or approximately 24% of PFSI's common shares outstanding. Origination volumes totaled $10.7 billion in UPB, while interest rate lock commitments totaled $14.1 billion. David is based out of Agoura Hills, California, United States and works in the Financial Services industry. Actual performance may differ significantly from backtested performance. Importantly, PennyMac retains the servicing rights and carries an option to repurchase these government-insured loans in the event they become eligible for redelivery into Ginnie Mae securities. We believe the growth opportunities in front of us to be substantial and as we continue to grow our direct lending channels, we expect PennyMac Financials exceptional financial performance to persist through 2021. The company was founded by Stanford L. Kurland on July 2, 2008 and is headquartered in Westlake Village, CA. Thank you. The company reported a net income of $1 billion in 2021, down from a record of $1.6 billion in the previous year. We have used our cloud-based technology systems to aid in scaling our businesses to the market and supported that growth with strategic hiring of employees. We are also increasing the use of online closings and automation. The average return per transaction made by David Spector is 3.50%. Ill now turn it over to Dan Perotti, Senior Managing Director and Chief Financial Officer to speak to the financial results for the quarter. These returns have led to a 29% compounded annual growth rate in our book value per share since our IPO. While such a market would be smaller than 2020, it would represent a large origination market by historical standards. JMP Securities lowered PennyMac Financial Services from an outperform rating to a market perform rating in a report on Wednesday, January 18th. It is worth noting that purchase originations are expected to grow and are forecasted to be $1.7 trillion and $1.9 trillion in 2021 and 2022, respectively. The committed pipeline at January 31 was $3 billion. And for the month of July, we repurchased an additional 2.5 million shares for an approximate cost of $151 million. 2 job at Countrywide Financial to founding the pair of publicly traded companies known as PennyMac, has died at 68. In the last year, insiders at the real estate investment trust sold shares 23 times. Direct lending locks were up 13% from the prior quarter, total correspondent lock volume was up 9% and the servicing portfolio was up 6% from the end of the third quarter. PennyMac Financial again delivered outstanding financial performance in the second quarter, driven by continued strong production and core servicing results partially offset by net MSR fair value declines. Years in Business: 14. Business Started: 3/25/2008. Additionally, PFSI's Board of Directors approved an increase to its stock repurchase authorization from $1 billion to $2 billion. In his role as President of PennyMac Financial, Mr. Jones is responsible for all business activities relating to the company's loan production and servicing operations. At PennyMac, our commitment to our customers doesnt end at closing. Net income was $204 million or diluted earnings per share of $2.94, representing an annualized return on equity of 23%. Looking at the consumer direct channel in the center column, we originated $8 billion in UPB of loans, up 27% from the prior quarter and 113% from the fourth quarter of 2019. Maverick Capital Ltd. now owns 7,468 shares of the real estate investment trusts stock worth $423,000 after purchasing an additional 1,873 shares during the last quarter. The prepayment speeds of PennyMac Financial's sub-service portfolio, which includes mostly Fannie Mae and Freddie Mac mortgage servicing rights owned by PMT, decreased to 24.7% from 35.1%. Finally, Maverick Capital Ltd. raised its position in shares of PennyMac Financial Services by 33.5% during the 4th quarter. This chart shows David Spector's buying and selling at PennyMac Financial Services by year and by quarter. PennyMac Financial Services, Inc. has a 12-month low of $38.53 and a 12-month high of $73.79. Thanks, Doug. Backtested performance is developed with the benefit of hindsight and has inherent limitations. Revenue per fallout-adjusted government lock in the second quarter was 30 basis points, down from 37 basis points in the prior quarter. For servicing on your existing mortgage account with Pennymac. These record volumes resulted in the growth of our servicing portfolio to $427 billion in UPB, despite extraordinary levels of prepayment activity. As you can see on page 11 of our slide presentation, correspondent acquisition volumes totaled $56.9 billion in UPB in the fourth quarter, up 28% from the prior quarter and 53% from the fourth quarter of 2019. The Investment Management segment consists of sourcing, performing diligence, bidding and closing investment asset acquisitions, managing correspondent production activities and managing the acquired assets. Item 1.01 Entry into a Material Definitive Agreement. PennyMac is a mortgage lender and servicer headquartered in Westlake Village, California. Learn More on PennyMac Financial Services' active insiders. PennyMac Financial Services, Inc. (NYSE:PFSI Get Rating) CEO David Spector sold 26,169 shares of the firms stock in a transaction dated Wednesday, March 1st. Production segment pretax income was $572.6 million, down 7% from the prior quarter and up 182% from the fourth quarter of 2019, driven by continued growth in direct lending and strong performance across all channels. In total, loan acquisition and origination volumes were $61 billion in the second quarter. On Monday, February 27th, David Spector sold 15,000 shares of PennyMac Financial Services stock. As we continue to grow our leadership positions in the direct origination channels, this growth will drive the earnings from PennyMac Financial's production segment. Series 2023-GTL1 Loan On February 28, 2023, PennyMac Financial Services, Inc. (the "Company"), through two of its indirect, wholly owned subsidiaries, PNMAC GMSR ISSUER TRUST ("Issuer Trust") and PennyMac Loan Services, LLC ("PLS"), entered into a syndicated series of term notes (the "Series 2023-GTL1 Loan"), as part of the structured . Good morning and thank you for joining us. PennyMac Financial Services, Inc operates as a holding company. The opportunity to grow these newer channels is exciting and provides PFSI a multi-channel, diversified and profitable production segment that will further grow the servicing portfolio with high quality assets. On Wednesday, March 1st, David Spector sold 26,169 shares of PennyMac Financial Services stock. As our production mix continues to shift towards direct lending, production expenses as a percentage of fallout adjusted locks are expected to trend higher. The technology based digital marketing platform, coupled with dedicated loan officers and an efficient operating processes, gives PennyMac a strong foundation for continued growth. The business also recently declared a quarterly dividend, which was paid on Friday, February 24th. Thank you, David. Now I'd like to begin by introducing David Spector, PennyMac Financial's Chairman and Chief Executive Officer who will review the Company's fourth quarter and full-year 2022 results. PennyMac Loan Services, LLC Attention: Correspondence Unit PO Box 514387 Los Angeles, CA 90051-4387, Notice of Error and Information Requests Only. Similar Profiles. Despite these currently elevated levels of competition, we continue to see opportunity in the channel over the long term and remain committed to providing our broker partners and the customers they serve a superior mortgage experience. We have also seen a large group of borrowers that reperform and exit forbearance on their own. 119504607, 119505929, 119506567, 119506570, 119507419. On Monday, December 12th, David Spector sold 12,750 shares of PennyMac Financial Services stock. Mr. Spector earned a salary of $1,000,000.00, stock awards of $2,537,435.00, options awards of $1,101,254.00, non-equity compensation of $8,864,938.00, and other compensation of $71,597.00. Get notified the next time David A. Spector buys or sells PennyMac Financial Services stock. Stanford Kurland. Hedge funds and other institutional investors have recently modified their holdings of the stock. We estimate that our market share in the channel has increased meaningfully since last year, and we now account for approximately 1.3% of total originations in the channel. Dan Perotti, PFSI's Senior Managing Director and Chief Financial Officer, will discuss our financial performance in more detail later on in his discussion. As the CEO of PennyMac Financial Services, Inc., Mr. Spector earned a total compensation package of $13,575,224.00 in 2021. Lastly, I would like to touch on the trends we are seeing related to forbearance and loss mitigation. Our large production volumes fuel the organic growth of our servicing portfolio, leading to a larger recurring stream of earnings. Fourth quarter performance was very strong across loan production and servicing and we continue to see the strength of our balanced business model in our results. How do I contact David A. Spector? However, he will become a special advisor to David Spector, chairman and chief . Please take a moment to watch a special video from our President and CEO, David Spector. Company profile for PennyMac Financial Services Inc. including key executives, insider trading, ownership, revenue and average growth rates. PennyMac Mortgage Investment Trust (NYSE:PMT) Q1 2021 Earnings Conference Call May 6, 2021 5:00 PM ETCompany Participants. We have made significant investments to scale our end-to-end mortgage fulfillment process while we expect the substantial investments in technology we have made to continually improve the customer experience over time. Interest rate lock commitments in the fourth quarter totaled $12.8 billion in UPB, up 18% from the prior quarter, and 135% from the fourth quarter of 2019. Download the Pennymac Mobile app from the App Store. Segment revenue was $9.7 million, down from $9.8 million in the prior quarter which included gains related to PMT shares owned by PFSI. You can see the results of our hedging strategy in the full year view on slide 19. Business Incorporated: Licensed by the Department of Financial Protection and Innovation under the California Residential Mortgage Lending Act. Total correspondent loan acquisition volume was $46.7 billion, down 9% from the prior quarter and up 56% from the second quarter of 2020. Now I'd like to begin by introducing David Spector, PennyMac Financial's Chairman and Chief Executive Officer, who will review the company's second quarter 2021 results. Massachusetts Mortgage Lender License # MC35953. Pretax income excluding valuation related changes in our servicing segment in 2020 more than doubled from 2019 as we assisted borrowers emerging from forbearance using various loss mitigation strategies. See what top analysts say about your stocks. Backtested performance is not an indicator of future actual results. Based on data from MarketBeat.com, the company has a consensus rating of Hold and a consensus target price of $69.50. This growth will be crucial in further expanding our direct lending channels and supporting our growing servicing infrastructure. The firm has a 50 day moving average of $62.72 and a 200-day moving average of $56.17. 112 S. Lakeview Canyon Rd, Ste. Servicing advances outstanding were approximately $454 million at December 31, up from $346 million at September 30, primarily associated with seasonal tax payments. As David mentioned earlier PFSIs net income was $452.8 million or diluted earnings per share of $5.97. While Kurland had been battling brain cancer, the cause of death was attributed to complications from COVID-19, separate . And finally, PMT, the investment vehicle that PFSI manages was able to largely preserve its book value in 2020 which led to solid results in PFSIs Investment Management segment. While our sub-service portfolio, consisting primarily of conventional loans, reported a 60-plus delinquency rate of 1.6%, down from 2.1% at March 31 as borrowers continue to emerge from forbearance plans. David Spector, Chairman & CEO, Director at PennyMac Mortgage, holds 259.60K shares in PennyMac Mortgage (Ticker: PMT), holds 1.10M shares in PennyMac Financial (Ticker: PFSI). Up to 5 They sold a total of 398,609 shares worth more than $22,789,635.48. David works at Pennymac Loan Services, Llc as Chief Investment Officer. Director, 10% Owner Stanford L Kurland sold 31,000 shares of PFSI stock on 12/23/2020 at the average price of $67.19. Backtested results are calculated by the retroactive application of a model constructed on the basis of historical data and based on assumptions integral to the model which may or may not be testable and are subject to losses. David served as President and Chief Investment Officer and President and Chief Operating Officer for PennyMac. This net worth estimate does not reflect any other assets that Mr. Spector may own. Finally, Barclays lifted their price objective on PennyMac Financial Services from $58.00 to $69.00 and gave the company an equal weight rating in a report on Friday, February 3rd. View David Spector's email address (d*****@pennym***.com) and phone number. 47.206 (3) & (4). David Spector - Chairman and Chief . Arizona Mortgage Banker License # 0911088. PennyMac Loan Services, LLC PO Box 950002 Fort Worth, TX 76155-9802, PennyMac Loan Services, LLC PO Box 5133 Thousand Oaks, CA 91359-5133, 3043 Townsgate Rd, Suite 200 Westlake Village, CA 91361 818.224.7442. Currently, he occupies the position of Chairman at PNMAC Mortgage Opportunity Fund LLC, Chairman of PNMAC Mortgage Opportunity Fund LP, Chairman-Trustees Board & CEO at PennyMac Mortgage Investment Trust, Chief Executive Officer for PennyMac Corp. (a subsidiary of PennyMac Mortgage Investment Trust) and Chairman & Chief Executive Officer for PennyMac Financial Services, Inc., Chairman & Chief Executive Officer for PNMAC Holdings, Inc., Chief Executive Officer of PNMAC Capital Management LLC, President & Chief Executive Officer for Private National Mortgage Acceptance Co. LLC and Chief Executive Officer for PennyMac Loan Services LLC (which are all subsidiaries of PennyMac Financial Services, Inc.). The ongoing success can be attributed to the increased application of data analytics, our growing servicing portfolio and the investments we have made in the loan fulfillment and sales process. A number of research firms recently issued reports on PFSI. These businesses provide PFSI a stable foundation through their low cost structures while our scaled fulfillment operation enables more aggressive growth in our higher margin direct lending channels. BBB File Opened: 2/5/2015. While Stan had retired from day-to-day responsibilities at PennyMac, he remained a trusted advisor and dear friend. And we ended the quarter with a servicing portfolio of $473 billion in unpaid principal balance, approximately 4% of all residential mortgage debt in the United States. The slides that accompany this discussion are available on PennyMac Financial's website at ir.pennymacfinancial.com. So while refinance origination volumes are expected to decline significantly over the next several years as a result of higher interest rates, we believe the outlook for PennyMac Financial remained strong, given our large profitable and growing servicing business, our position as one of the largest producers of purchase money loans in the U.S. and the continued expansion of our direct lending businesses. Giving consideration to the pretax income from our record production, you can see that our hedging strategies were very successful at mitigating the impact of interest rate changes and MSR fair value losses on our income in 2020. As you can see on slide seven of our presentation, PennyMac maintained its leadership position in the correspondent channel, and we estimate that we currently represent approximately 18% of the channel overall. For more information, review Pennymac's state licenses and important notices. The history of PennyMac Financial was borne out of the Great Financial Crisis, with a desire to help distressed borrowers. David A Spector, Pennymac Mortgage Investment: Profile and Biography - Bloomberg Markets Markets Trafigura's Nickel Nemesis Was Already Notorious in Metal Circles The Week Your Saturday UK. Payoff-related expenses, which include interest shortfall and recording and release fees related to prepayments, remained elevated but decreased slightly quarter-over-quarter. In January, our correspondent acquisitions remained strong, with $17.9 billion in UPB of acquisitions and lock volume of $17.8 billion. David Spector received compensation valued at about $12,375,328 in 2020 after becoming . Pennymac's servicing portfolio grew to $518 billion in unpaid balance, up 2% from Dec. 31, 2021, and 16% from March 31, 2021, led by production volumes which more than offset prepayment activity,. Co-op loans not available. Strong production volumes across all 3 channels continue to drive the growth of our servicing portfolio despite the elevated level of prepayments. The Servicing segment offers servicing of originated mortgage loans and execution and management of early buyout transactions. This represents a $0.80 dividend on an annualized basis and a dividend yield of 1.29%. Learn More about insider trades at PennyMac Financial Services. Thank you Isaac. Book value per share grew 5% to $54.49 at June 30. This is not a commitment to lend. Government loan acquisitions in the quarter totaled $18.9 billion in UPB, up 11% from the prior quarter and up 14% from the fourth quarter of 2019. Pretax income, excluding valuation-related items for the servicing segment, was $174.4 million, down 33% from the prior quarter and up 101% from the second quarter of 2020. Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world. This concludes PennyMac Financial Services, Inc.'s second quarter earnings discussion. We continue to invest in people, systems and processes across our businesses, laying the groundwork that would allow us to achieve the medium-term goals we outlined in our recent Investor Day. How can I follow the stock ratings of top corporate insiders? Pennymac's state licenses and important notices. Main Telephone (818) 224-7442 Primary Address 3043 Townsgate Road Suite 200 Westlake Village, CA 91361 USA Fiscal Close December Founded 2008 PFSIs owned servicing portfolio, which consists primarily of Ginnie Mae MSRs, had a 60 day plus delinquency rate of 10.2%, down from 11.4% at the end of the prior quarter, while our subserviced portfolio, primarily consisting of conventional loans, reported a 60 plus day delinquency rate of 2.7%, down from 3.7% at September 30 as borrowers continue to emerge from forbearance plans. Texas office: 2201 W. Plano Parkway, Suites 150 and 300, Plano, TX 75075. PennyMac Financial Services, Inc. operates as a holding company. It operates through the following segments: Production, Servicing, and Investment Management. No cash balance or cash flow is included in the calculation. View open jobs at this location. Insiders at PennyMac Financial Services own 18.0% of the company. And I'm pleased to be joined by PennyMac Financial Services CEO,. PennyMac Financial's servicing portfolio totaled $473 billion in unpaid principal balance at June 30, up 5% from the end of the prior quarter and 22% from June 30, 2020. Economic forecasts are calling for the mortgage origination market to remain strong in 2021, and while these forecasts vary, they currently average $3.3 trillion. Lastly, we encourage investors with any questions to reach out to our Investor Relations team by email or phone.