And the committed pipeline at July 31 was $1.9 billion. Servicing advances outstanding decreased to approximately $424 million at June 30 from $437 million at March 31. Licensed by the Department of Financial Protection and Innovation under the California Residential Mortgage Lending Act. However, margins in this channel remain attractive. In total, these strong acquisition and origination volumes continue to drive the organic growth of our servicing portfolio despite elevated prepayment activity. Licensed Mortgage Banker-NYS Department of Financial Services. 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. Ultimately, we believe for these reasons, PennyMac will continue its market share growth as a channel leader. While many of these employees aided in our record production growth and increased servicing activities due to COVID, these hires were consistent with PFSIs long-term strategy. This concludes PennyMac Financial Services, Inc.'s second quarter earnings discussion. 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. Further, backtesting allows the security selection methodology to be adjusted until past returns are maximized. Warning! And for the month of July, we repurchased an additional 2.5 million shares for an approximate cost of $151 million. We saw significant market share growth in the conventional correspondent market this quarter and our leadership position in government loans remains as a result of our consistency, low costs and operational excellence we continue to provide to our correspondents. Importantly, and as Doug Jones, Senior Managing Director and Chief Mortgage Banking Officer, will expand on in his section of the presentation, we sold $3.4 billion in UPB of early buyout loans to third-party whole loan investors, thus reducing the risk associated with holding these loans and increasing our capital efficiency. 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. The committed pipeline at January 31 was $7.9 billion. PennyMac Financial Services Inc., a national mortgage lender and servicer, announced Thursday that Doug Jones has joined its board of directors. 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. Posted by Defense World Staff on Mar 3rd, 2023. 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. GuruFocus has detected 8 Warning Signs with PFSI. Government loan acquisitions in the quarter totaled $16.2 billion, down 7% from the prior quarter and up 47% from the second quarter of 2020. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. Most recently, David Spector sold 26,169 shares of the business's stock in a transaction on Wednesday, March 1st. BBB File Opened: 2/5/2015. The stock was sold at an average price of $60.64, for a total value of $1,586,888.16. 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. David Spectors most profitable transaction was an Informative Sell of PMT stock on March 22, 2019. Sign up for a free account. PennyMac. 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. The price of the stock has decreased by 8.12% since. The percentage of loans in forbearance decreased to 4.9% at June 30 from 6.3% at March 31, as borrowers in forbearance plans at March 31 who have since exited more than offset new forbearance plans. Learn More about David A. Spector's net worth. Speaker: David Spector - Chairman and Chief Executive Officer Thank you Isaac. T. Rowe Price Investment Management Inc. raised its position in shares of PennyMac Financial Services by 5.4% during the 4th quarter. In January, our correspondent acquisitions remained strong, with $17.9 billion in UPB of acquisitions and lock volume of $17.8 billion. As of the end of the year we have helped, or are in the process of helping, approximately 145,000 borrowers successfully emerge from their forbearance plans. While industry production margins declined in the second quarter, we saw a smaller decrease in overall production margin given the mix shift towards our consumer direct lending channel. You can see the results of our hedging strategy in the full year view on slide 19. Consumer and broker direct represented 20% of fallout adjusted lock volume in the fourth quarter but accounted for over 70% of segment pretax income. 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. The dividend yield of PennyMac Financial Services Inc stocks is 0.93%. Arizona Mortgage Banker License # 0911088. Thank you for sharing your valuable opinion. Finally, transactions like these provide meaningful savings to PennyMac Financial over the life of the loan while providing the opportunity for redelivery in the future. PennyMac Financial Services, Inc operates as a holding company. Learn More about David A. Spector's net worth. We are growing our best-in class tools and solutions we provide our brokers with to further enhance their self-service capabilities. David Spector Chief Investment Officer Agoura Hills, California, United States 1K followers 500+ connections Join to connect Penny Mac University of California, Los Angeles Activity Thank you. Thank you. Previously, Mr. Spector served as PennyMac Financials President and Chief Operating Officer. Learn More on PennyMac Financial Services' active insiders. 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. With PFSIs historical focus on purchase market originations combined with our large and growing servicing portfolio, we believe we are well-positioned to successfully grow share in all three of our production channels, driving an increase in our overall market position. As David mentioned earlier PFSIs net income was $452.8 million or diluted earnings per share of $5.97. Thank you, Isaac. Learn More about insider trades at PennyMac Financial Services. While Kurland had been battling brain cancer, the cause of death was attributed to complications from COVID-19, separate . As you will see on slide 20, we provide a breakdown of the revenue contribution from each of PFSIs loan production channels, net of loan origination expenses, including the fulfillment fees received from PMT for conventional correspondent loans. Our costs vary by channel, ranging from approximately 15 basis points in correspondent to 150 basis points in consumer direct. David Spector President and Chief Executive Officer Lior Ofir Senior Managing Director & Chief Information Officer Stanford L. Kurland Executive Chairman Amir Pirnia SVP Engineering Massachusetts Mortgage Lender License # MC35953. On Monday, February 27th, David Spector sold 15,000 shares of PennyMac Financial Services stock. Stanford Kurland. Our goal is to be a trusted financial partner that you can count on as long as you own your home. David Spector. the company. Stockholders of record on Tuesday, February 14th were given a dividend of $0.20 per share. All of these workflow and technology investments will improve the experience for the consumer and for the broker, improve productivity, specifically in sales and operations, which will enable higher volumes at a reduced cost to originate. 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,. Purchase lock volume for the quarter was also a record $744 million, up from $514 million in the prior quarter and $505 million in 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 fourth quarter and full-year 2022 results. On Monday, February 27th, David Spector sold 15,000 shares of PennyMac Financial Services stock. The company has a market cap of $3.09 billion, a price-to-earnings ratio of 7.36 and a beta of 1.49. We are also increasing the use of online closings and automation. 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. Hedge funds and other institutional investors have recently modified their holdings of the stock. PennyMac Financial Services can also be reached via phone at (818) 224-7442 and via email at pfsi_ir@pnmac.com. 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. Receive News & Ratings for PennyMac Financial Services Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for PennyMac Financial Services and related companies with MarketBeat.com's FREE daily email newsletter. During the last ninety days, David A. Spector has sold $2,498,888.16 in shares of PennyMac Financial Services stock. The direct lending channels continued to have an outsized impact on PFSIs production earnings in the fourth quarter. PennyMac Financial Services Inc had annual average EBITDA growth of 35.90% over the past five years. 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. Additionally, PFSI's Board of Directors approved an increase to its stock repurchase authorization from $1 billion to $2 billion. As you can see on slide 10 of the presentation, consumer and broker direct represented 23% of fallout-adjusted lock volume in the second quarter but accounted for approximately 70% of segment pretax income. 3043 Townsgate Rd Ste 200, Westlake Village, CA 91361-3027. JMP Securities lowered PennyMac Financial Services from an outperform rating to a market perform rating in a report on Wednesday, January 18th. 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. Information on this page was last updated on 3/1/2023. In the fourth quarter, the pretax income was $234.1 million, a 31% decrease from . This grew our servicing portfolio to over $426 billion in UPB even with elevated prepayment speeds. Operating expenses were also down quarter-over-quarter as the prior quarter included seasonal accruals of compensation related expenses. Our correspondent mix percentage was essentially unchanged from the previous quarter, as 35% of the acquisitions were government loans and 65% were conventional loans. Thanks, Andy. Thanks, Andy. On slide 14, you can see the fair value of our MSR decreased by $251 million in the second quarter and included $196 million in fair value losses as a result of higher expectations for prepayment activity in the future driven by lower mortgage rates and a flatter yield curve, as well as an additional $55 million in other valuation declines. Senior Managing Director and Chief Financial Officer, will discuss our financial performance in more detail later on in his discussion. Conventional correspondent acquisitions, for which PFSI earns a fulfillment fee from PMT, totaled $38 billion in UPB, up 39% from the prior quarter and 85% from the fourth quarter of 2019. Advances are expected to continue increasing over the next 6 to 12 months. Over the years, PennyMac Financial has proven its ability to generate profits and value across various market environments, resulting in attractive returns on equity, with an average ROE of 24% over our last 7 plus years as a public company. For more information, review Pennymac's state licenses and important notices. Learn More on David A. Spector's contact information. We also remain very active repurchasing shares driven by our medium-term expectations for PFSI's return on equity. (03-2023). Similar Profiles. The return on the trade was 60.70%. Schonfeld Strategic Advisors LLC now owns 60,866 shares of the real estate investment trusts stock worth $3,449,000 after purchasing an additional 54,266 shares during the last quarter. 18.5 million shares or approximately 24% of PFSI's common shares outstanding. Tower Research Capital LLC TRC Increases Stake in Centrus Energy Corp. Tower Research Capital LLC TRC Boosts Stock Position in Centrus Energy Corp. UBS Group AG Increases Position in Northern Oil and Gas, Inc. Tower Research Capital LLC TRC Increases Position in ABB Ltd (NYSE:ABB), Tower Research Capital LLC TRC Has $254,000 Holdings in Daqo New Energy Corp. (NYSE:DQ), ABB Ltd (NYSE:ABB) Shares Bought by Tower Research Capital LLC TRC, Tower Research Capital LLC TRC Increases Stake in Centrus Energy Corp. (NYSEAMERICAN:LEU), Tower Research Capital LLC TRC Boosts Stock Position in Centrus Energy Corp. (NYSEAMERICAN:LEU), UBS Group AG Increases Position in Northern Oil and Gas, Inc. (NYSE:NOG), Tower Research Capital LLC TRC Sells 3,797 Shares of Daqo New Energy Corp. (NYSE:DQ), Tower Research Capital LLC TRC Lowers Stake in Invesco Defensive Equity ETF (NYSEARCA:DEF), Tower Research Capital LLC TRC Acquires 94,572 Shares of Geron Co. (NASDAQ:GERN), Tower Research Capital LLC TRC Has $255,000 Stake in Geron Co. (NASDAQ:GERN), Gentherm Incorporated (NASDAQ:THRM) Stock Position Increased by Tower Research Capital LLC TRC, Tower Research Capital LLC TRC Sells 1,356 Shares of iShares Dow Jones U.S. ETF (NYSEARCA:IYY), Tower Research Capital LLC TRC Sells 4,212 Shares of Chesapeake Utilities Co. (NYSE:CPK), Tower Research Capital LLC TRC Has $260,000 Stock Position in Veradigm Inc. (NASDAQ:MDRX), Tower Research Capital LLC TRC Sells 2,680 Shares of The Toronto-Dominion Bank (NYSE:TD), Veradigm Inc. (NASDAQ:MDRX) Shares Bought by Tower Research Capital LLC TRC, UBS Group AG Has $3.26 Million Stock Holdings in Delek Logistics Partners, LP (NYSE:DKL), Tower Research Capital LLC TRC Decreases Stake in Westamerica Bancorporation (NASDAQ:WABC), Tower Research Capital LLC TRC Grows Stock Holdings in Barnes Group Inc. (NYSE:B), Woodside Energy Group Ltd (OTCMKTS:WOPEY) Shares Sold by UBS Group AG. The stock was sold at an average price of $58.12, for a total value of $741,030.00. The results reflect performance of a strategy not historically offered to investors and does not represent returns that any investor actually attained. David Spector also recently made the following trade(s): PFSI stock opened at $61.78 on Friday. President & CEO David Spector sold 30,000 shares of PFSI stock on 01/12/2021 at the average price of $57.43. PennyMac Financial reported strong earnings in the fourth quarter driven by core production and servicing results. Click here to check it out. Our direct lending channels have an outsized impact on production segment earnings, as Dan will discuss later. No cash balance or cash flow is included in the calculation. A free inside look at company reviews and salaries posted anonymously by employees. 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. And since the beginning of 2020, we have now repurchased over 18.5 million shares or approximately 24% of PFSI's common shares outstanding. Broker originations in July totaled $1.2 billion and locks totaled $1.7 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 . We'll review your feedback and if you chose to be contacted, we will respond within 1-2 business days. 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 shares were sold at an average price of $60.64, for a transaction totalling $1,586,888.16. We encourage investors with any questions to reach out to our Investor Relations team by e-mail or phone.