Net income in the fourth quarter was the second highest in the history of. This growth has focused on new customer acquisition and resulted in our non-portfolio interest rate lock commitments hitting a record in the fourth quarter at 1.3 billion, up from 906 million in the third quarter, an increase of 43%. Lastly, I would like to touch on the trends we are seeing related to forbearance and loss mitigation. PennyMac Financial Services, Inc. operates as a holding company. We issued $650 million in an inaugural senior unsecured note offering, raised funding capacity with our banking partners, and enhanced our existing Ginnie Mae MSR financing structure to include servicing advances. 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. As you can see on the selected operational metrics on slide 13, PennyMac Financials owned portfolio reported a prepayment speed of 32.5% in the fourth quarter, up from 29.7% in the prior quarter. We quickly developed a plan to deal with the COVID-19 pandemic and the various work from home orders across the nation. David Spector is currently Chairman of the Board, President and Chief Executive Officer at PennyMac - View - PennyMac org chart We achieved record production across all channels, with increased market penetration in our higher margin direct lending channels. As David mentioned earlier PFSIs net income was $452.8 million or diluted earnings per share of $5.97. 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. Ultimately, we believe for these reasons, PennyMac will continue its market share growth as a channel leader. PennyMac Mortgage Investment Trust (PMT) CEO David Spector on Q1 2021 As David mentioned earlier, PFSI's net income was $204.2 million or diluted earnings per share of $2.94. The company reported a net income of $1 billion in 2021, down from a record of $1.6 billion in the previous year. 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. Our consumer direct lending division produced record origination and lock volumes again despite a smaller origination market in the second quarter. And while we believe the mortgage market will continue to change from a competitive and regulatory perspective, the infrastructure and risk management disciplines that distinguish PennyMac from others in the industry position us well. Meet our Smart Portfolio. Based on data from MarketBeat.com, the company has a consensus rating of Hold and a consensus target price of $69.50. Contact our customer service team with any inquiries by sending us a message through the Message Center by simply logging in to your account. 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. David Spector latest transaction was an Uninformative Buy of . For any questions, please visit our website at ir.pennymacfinancial.com, or call our Investor Relations department at 8182644907. The company was founded by Stanford L. Kurland on July 2, 2008 and is headquartered in Westlake Village, CA. 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. GuruFocus has detected 5 severe warning signs with PennyMac Financial Services Inc. . Pennymac Cares | Thank You from President & CEO, David Spector Our goal is to be a trusted financial partner that you can count on as long as you own your home. PENNYMAC Careers and Employment | Indeed.com approve of David Spector's performance Founded 2008 Company size 5,001 to 10,000 Revenue $1B to $5B (USD) Industry Banking & Lending Headquarters Westlake Village, CA Link PENNYMAC website Pennymac (NMLS #35953) is a top national mortgage lender with over 4 million lifetime customers. And the committed pipeline at July 31 was $1.9 billion. Copyright 2023 Surperformance. In January, our correspondent acquisitions remained strong, with $17.9 billion in UPB of acquisitions and lock volume of $17.8 billion. No P&I advances have been made to date, as prepayment activity continued to sufficiently cover remittance obligations. In total, these strong acquisition and origination volumes continue to drive the organic growth of our servicing portfolio despite elevated prepayment activity. David Spector Sells 26,169 Shares of PennyMac Financial Services, Inc The UPB of completed modifications was $6.3 billion, up significantly from $4 billion last quarter and the UPB of EBO loan volume totaled $5 billion, also up significantly from last quarter as a result of the continued focus on loss mitigation activities. Mr. David Spector, CEO Mr. Andrew Chang, CFO Mr. Derek Stark, Chief Legal Officer Additional Contact Information Phone Numbers (800) 777-4001 Other Phone Email Addresses Email this. 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. You can see the results of our hedging strategy in the full year view on slide 19. If you need the payment address, click here. PennyMac Loan Services, LLC | Better Business Bureau Profile (03-2023). The stock was sold at an average price of $60.64, for a total value of $1,586,888.16. PennyMac CEO David Spector to serve as chairmen of its mortgage REIT, financial services The CEO of both PennyMac companies, David Spector (pictured), has added the chairman's title, filling the vacancies created by the death of founder Stanford Kurland. In total, loan acquisition and origination volumes were $61 billion in the second quarter. While our servicing group was aiding borrowers, our corporate groups were ensuring our capital and liquidity were protected. StockNews.com raised PennyMac Financial Services from a sell rating to a hold rating in a report on Saturday, February 11th. 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. In order to protect the value of our MSR asset, we utilize a comprehensive hedging strategy. 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. David Spector's role in PennyMac Mortgage is Chairman & CEO, Director. 292 Pennymac reviews in Los Angeles, CA. In January, our consumer direct originations totaled $3.1 billion in UPB and locks totaled $4.4 billion. Learn More about David A. Spector's net worth. I am Barclays' consumer finance analyst, Mark DeVries. David Spector President and Chief Executive Officer Lior Ofir Senior Managing Director & Chief Information Officer Stanford L. Kurland Executive Chairman Amir Pirnia SVP Engineering Speaker: David Spector - Chairman and Chief Executive Officer Thank you Isaac. The stock was sold at an average price of $60.80, for a total value of $912,000.00. PennyMac Financial Services' insider roster includes Anne Mccallion (Director), Farhad Nanji (Director), and David Spector (CEO). While margins across channels have come in lower from the third quarter, we saw the shift in Government correspondent margins come in the most towards more normalized levels. January 25, 2021, 12:31 p.m. EST 1 Min Read. I will review each segments results and then we will touch on our forbearance and servicing advance trends. All rights reserved. Our balanced business with our large and growing servicing portfolio also becomes an increasingly important component of our earnings as interest rates increase, and we believe this provides a competitive advantage relative to others when the industry's origination volumes return to more normalized levels. While 2020 was a record, we have a long track record of strong performance. PennyMac Financial Services, Inc. Announces Doug Jones Joined Its Board The firm engages in the production and servicing of U.S. residential mortgage loans. We estimate we are now represent approximately 2.5% market share in the channel with over 2,000 brokers approved to offer our products, an increase of 11% from March 31, 2021. Learn More on David A. Spector's salary. PennyMac. The shares were sold at an average price of $60.64, for a total transaction of $1,586,888.16. Click here to check it out. Susquehanna Fundamental Investments LLC now owns 85,385 shares of the real estate investment trusts stock worth $4,838,000 after purchasing an additional 16,980 shares during the last quarter. This brings the total repurchases year-to-date to approximately $600 million. Licensed by the Department of Financial Protection and Innovation under the California Residential Mortgage Lending Act. This balanced business helps generate strong results across a variety of market and rate environments. Learn More on PennyMac Financial Services' active insiders. The stock was sold at an average price of $58.12, for a total value of $741,030.00. Russia's war on Ukraine latest: Putin casts war as battle for nation's survival, India FM Jaishankar says Soros dangerous, debate needed on democracy, Buffett's Berkshire profit falls on investments, currencies, Bill Gates buys Heineken stake, despite saying he's 'not a big beer drinker', Elon Musk recruits team to develop OpenAI rival - The Information, Hedge fund manager Chris Hohn demands Airbus drop Atos deal - letter, Elon Musk's challenge: Stay ahead of the competition, ISS urges Apple shareholders to vote for CEO Tim Cook, other execs' pay packages, Elon Musk accuses media of racism after newspapers drop 'Dilbert' cartoon, French media billionaire Niel fails with bid for TNT television frequence - Arcom, Private National Mortgage Acceptance Co. LLC. PennyMac is a mortgage lender and servicer headquartered in Westlake Village, California. On Wednesday, March 1st, David Spector sold 26,169 shares of PennyMac Financial Services stock. This information is provided for illustrative purposes only. The business also recently declared a quarterly dividend, which was paid on Friday, February 24th. Thank you, Dan. #PennymacCaresVisit PENNYMAC.COM for details about how were assisting our family of customers during the COVID-19 crisis. Production segment pretax income was $244.4 million, down 33% from the prior quarter and 55% from the second quarter of 2020. the financials in more detail later on in this discussion. In the last year, insiders at the real estate investment trust sold shares 23 times. Purchase originations in 2021 are forecasted to increase 10% year-over-year while refinance originations are expected to decrease but remain elevated relative to historical norms. And with that, I would like to turn it back to David for some closing remarks. PennyMac Financial Services Inc., a national mortgage lender and servicer, announced Thursday that Doug Jones has joined its board of directors. PennyMac Financial Services, Inc. has a 12-month low of $38.53 and a 12-month high of $73.79. This financial performance is driven by the balanced business model in mortgage banking that we have built over the last 13 years. PennyMac Financial Services can also be reached via phone at (818) 224-7442 and via email at [emailprotected] Learn More on David A. Spector's contact information. Before I turn this over to Andy, I want to take a moment to say all of us at PennyMac are very grateful for the many kind thoughts and tributes we have received since announcing the sad passing of Stan Kurland, our founder and Chairman. Please disable your ad-blocker and refresh. David Spector email address & phone number | Penny Mac Chief Investment Download the Pennymac Mobile app from the App Store. Learn More about David A. Spector's net worth. General assumptions include: XYZ firm would have been able to purchase the securities recommended by the model and the markets were sufficiently liquid to permit all trading. David Spector Work Experience and Education Work Experience Chairman & Chief Executive Officer PennyMac Mortgage Investment Trust 2007-2022 Chief Credit Officer Santander Consumer USA 2013-2016 Co-Head of Global Residential Mortgages Morgan Stanley 2005-2008 Global Managing Director, Banking & Markets Bank of America 2004-2010 Education Up to 5 free lookups / month. PennyMac Financial reported strong earnings in the fourth quarter driven by core production and servicing results. Thank you. A number of research firms recently issued reports on PFSI. David works at Pennymac Loan Services, Llc as Chief Investment Officer. (business & personal). PennyMac remained the largest correspondent aggregator in the U.S. in the fourth quarter. Our correspondent mix percentage was essentially unchanged from the previous quarter, as 35% of the acquisitions were government loans and 65% were conventional loans. PennyMac Financial Services, Inc. (NYSE: PFSI) announced today that Doug Jones, President and Chief Mortgage Banking Officer, joined its Board of Directors effective March 1, 2023. Share Your Design Ideas, New JerseysMurphy Defends $10 Billion Rainy Day Fund as States Economy Slows, What Led to Europes Deadliest Train Crash in a Decade, This Week in Crypto: Ukraine War, Marathon Digital, FTX, Chairman/CEO, Pennymac Mortgage Investment. 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. NMLS ID # 35953. 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. I will cover each segment's results and then briefly review our forbearance and servicing advance trends. Thank you. Biography of David Spector - The Official Board On Monday, December 12th, David Spector sold 12,750 shares of PennyMac Financial Services stock. 112 S. Lakeview Canyon Rd, Ste. Specifically, backtested results do not reflect actual trading or the effect of material economic and market factors on the decision-making process. David Spector received compensation valued at about $12,375,328 in 2020 after becoming . Trade/service marks are the property of PennyMac Loan Services, LLC and/or its subsidiaries or affiliates. David Spector - PennyMac Mortgage Insider Transactions - TipRanks.com Roles that David Spector holds in companies, The most profitable trade made by David Spector, List of latest transactions for each holding click on a transaction to see David Spector's performance on stock. We believe PennyMac Financial's business model with production from the correspondent, consumer direct and broker direct channels contributes to PennyMac Financial's profitability across different production environments. Pretax income excluding valuation-related items for the servicing segment was $234.3 million, up 30% from the prior quarter and 499% from the fourth quarter of 2019. 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. Since the start of 2020, we have repurchased approximately 13% of the PFSI shares that were outstanding at the beginning of 2020. Posted by Defense World Staff on Mar 3rd, 2023. Now I'll turn it over to Doug, who will discuss our mortgage banking businesses. 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. Thanks, Andy. No P&I advances are outstanding as prepayment activity continued to sufficiently cover remittance obligations. PennyMac Financial Services Inc provides mortgage loans to customers in the United States. 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. Lastly, I would like to touch on the trends we are seeing related to forbearance and loss mitigation. They sold a total of 398,609 shares worth more than $22,789,635.48. He currently serves as a senior advisor to TPG Capital, a global private investment firm, and . The UPB of completed modifications was $5.5 billion, essentially unchanged from the prior quarter, and the UPB of EBO loan volume totaled $6.8 billion, up from $4.2 billion in the prior quarter. The firm engages in the production and servicing of U.S. residential mortgage loans. Pennymac's state licenses and important notices. Stockholders of record on Tuesday, February 14th were given a dividend of $0.20 per share. The company has a current ratio of 0.55, a quick ratio of 0.55 and a debt-to-equity ratio of 1.46. And for the month of July, we repurchased an additional 2.5 million shares for an approximate cost of $151 million. | 3 Mrz 2023. David A. Spector has been President and Chief Executive Officer of PennyMac Financial Services, Inc. (NYSE: PFSI) since January 2017, and he has been a member of PennyMac Financials board of directors since the companys formation in January 2008. Pennymac notches a profitable Q1 due to servicing segment 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. Advances are expected to continue increasing over the next 6 to 12 months. David A. Spector Age : 59 Public asset : 66,368,555 USD Linked companies : PennyMac Financial Services, Inc. - PennyMac Mortgage Investment Trust Summary David A. Spector is a businessperson who has been the head of 9 different companies. PennyMac Financial Services, Inc. (PFSI) CEO David Spector on Q4 2020 The history of PennyMac Financial was borne out of the Great Financial Crisis, with a desire to help distressed borrowers. T. Rowe Price Investment Management Inc. now owns 4,992,531 shares of the real estate investment trusts stock worth $282,877,000 after purchasing an additional 256,717 shares during the last quarter. His leadership helped lay the foundation for PennyMacs long term success which included building and developing a deep management team that carries on his legacy. In the fourth quarter, the pretax income was $234.1 million, a 31% decrease from . Stanford Kurland. The dividend yield of PennyMac Financial Services Inc stocks is 0.93%. Similarly, new customer acquisition or non-portfolio interest rate lock commitments were $1.5 billion, essentially unchanged from the prior quarter and up from $274 million in the second quarter of 2020. The scale we have achieved in our correspondent business, combined with our low-cost structure and operational excellence in the channel, allow us to operate profitably through volatile market environments. The average return per transaction made by David Spector is 3.50%. PennyMac Financial Services, Inc. (NYSE:PFSI) Q2 2021 Earnings Conference Call August 5, 2021 5:05 PM ET, Isaac Garden - Vice President, Investor Relations, David Spector - Chairman & Chief Executive Officer, Andy Chang - Senior Managing Director & Chief Operating Officer, Doug Jones - President & Chief Mortgage Banking Officer, Dan Perotti - Senior Managing Director & Chief Financial Officer. 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. 119504607, 119505929, 119506567, 119506570, 119507419. The slides that accompany this discussion are available on PennyMac Financials website at ir.pennymacfinancial.com. Get a breakdown of the different strategies based on detected insider trading activity. Schonfeld Strategic Advisors LLC raised its position in shares of PennyMac Financial Services by 822.2% during the 4th quarter. While the Pennymac workforce stays. In July, originations for our consumer direct channel totaled $3.5 billion and locks totaled $5.5 billion. PennyMac Financial Services, Inc. (PFSI) CEO David Spector on Q2 2021 PennyMac. These businesses are foundational to PFSI and not easily replicated. "I am delighted to announce Doug Jones' election to our. Learn More about insider trades at PennyMac Financial Services. Get contact details including emails and phone numbers 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. As you can see on slide 11, approximately $37 billion of portfolio runoff in the second quarter was more than offset by the addition of $61 billion in total production. Hedging and other gains of over $943 million largely offset an MSR fair value decrease of over $1.1 billion. Production revenue margins declined from the prior quarter and revenue per fallout-adjusted lock for PFSI's own account was 154 basis points in the second quarter, down from 176 basis points in the first quarter of 2021. Are you interested in helping the next generation of homeowners fulfill their dream of home? 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. 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. On Monday, February 27th, David Spector sold 15,000 shares of PennyMac Financial Services stock. As we outlined in our Investor Day, we see additional opportunities resulting from changes to the GSE's preferred stock purchase agreement. Our phased approach to returning to our offices extends beyond simply ensuring that PennyMacers return to a safe working environment, but also takes mindful consideration for the challenges faced by our employees related to issues such as dependent care and schooling. 3043 Townsgate Road, Suite 200, Westlake Village, California 91361, US, View If you have an ad-blocker enabled you may be blocked from proceeding. PENNYMAC FINANCIAL SERVICES, INC. : Entry into a Material Definitive PennyMac Financial Services Inc had annual average EBITDA growth of 35.90% over the past five years. Further, backtesting allows the security selection methodology to be adjusted until past returns are maximized. Our direct lending channels have an outsized impact on production segment earnings, as Dan will discuss later. 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. We also remain very active repurchasing shares driven by our medium-term expectations for PFSI's return on equity. 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. Pricing margins in the channel decreased sharply, reflecting intense levels of competition between channel leaders. 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. the company. 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. Thank you, Isaac. 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%.