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. 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. 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. If you have an ad-blocker enabled you may be blocked from proceeding. Finally, broker direct originations totaled $4.5 billion in UPB in the fourth quarter, up 28% from the prior quarter and 215% percent from the fourth quarter of 2019. Please note all regulatory considerations regarding the presentation of fees must be taken into account. The ex-dividend date was Monday, February 13th. The business also recently declared a quarterly dividend, which was paid on Friday, February 24th. Susquehanna Fundamental Investments LLC raised its position in shares of PennyMac Financial Services by 24.8% during the 4th quarter. Please. 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. Since trades have not actually been executed, results may have under- or over-compensated for the impact, if any, of certain market factors, such as lack of liquidity, and may not reflect the impact that certain economic or market factors may have had on the decision-making process. Get contact details including emails and phone numbers PennyMac Mortgage Investment Trust (NYSE:PMT) Q1 2021 Earnings Conference Call May 6, 2021 5:00 PM ETCompany Participants. Approve of CEO. And with that, I would like to turn it back to David for some closing remarks. The return on the trade was 60.70%. 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. Jeffrey W. Martin Sells 10,413 Shares of Sempra (NYSE:SRE) Stock, Robert Brian Mitchell Sells 38,000 Shares of Globe Life Inc. (NYSE:GL) Stock, Get a free copy of the StockNews.com research report on PennyMac Financial Services (PFSI), Hormel Hits 2-Year Low, And The Dip Gets Bought, Heres Why Ross Could Soon Be Hitting All Time Highs. Recent economic forecasts for 2021 originations range from $3.6 trillion to $4.2 trillion, while average forecast for 2022 originations remained strong at $2.7 trillion. PennyMac Financial reported strong earnings in the fourth quarter driven by core production and servicing results. PennyMac Financial Services can also be reached via phone at (818) 224-7442 and via email at pfsi_ir@pnmac.com. The company reported a net income of $1 billion in 2021, down from a record of $1.6 billion in the previous year. I am Barclays' consumer finance analyst, Mark DeVries. Operating revenue decreased $2 million from the prior quarter driven by declines in earnings on custodial balances. Revenue per fallout-adjusted lock was 71 basis points, down from 140 basis points in the prior quarter. This expertise and experience has served us well, enhancing our ability to help many borrowers affected by the COVID-19 pandemic. 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. 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. Enter your email to receive our newsletter. PennyMac is a mortgage lender and servicer headquartered in Westlake Village, California. Thanks, Andy. With that, I will turn the call over to Andy Chang, Senior Managing Director and Chief Operating Officer, who will go through some of the initiatives we are focused on to position us for future success in the years to come. This brings the total repurchases year-to-date to approximately $600 million. Our costs vary by channel, ranging from approximately 15 basis points in correspondent to 150 basis points in consumer direct. Our Investment Management segment delivered pretax income of $2.6 million, down from $3.3 million in the prior quarter and down from $5.2 million in the fourth quarter of 2019. (03-2023). What was David Spector's most profitable transaction? Thanks, Doug. 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 Production segment includes mortgage loan origination, acquisition, and sale activities. And we believe the role of a well capitalized correspondent aggregator like PennyMac will be increasingly important over time. For more information, review Pennymac's state licenses and important notices. Learn More on David A. Spector's trading history. The Servicing segment offers servicing of originated mortgage loans and execution and management of early buyout transactions. T. Rowe Price Investment Management Inc. raised its position in shares of PennyMac Financial Services by 5.4% during the 4th quarter. 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. The firm engages in the production and servicing of U.S. residential mortgage loans. The TipRanks Smart Score performance is based on backtested results. Now Ill turn it over to Doug Jones, PFSIs Senior Managing Director and Chief Mortgage Banking Officer to provide you some more details on our mortgage banking businesses. This outstanding income generated excess capital that we redeployed into increased levels of production, share repurchases, reduction of debt, and increased servicing activity. 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. Stockholders of record on Tuesday, February 14th were given a dividend of $0.20 per share. No P&I advances have been made to date, as prepayment activity continued to sufficiently cover remittance obligations. Good afternoon, and welcome to the Fourth Quarter and Full-Year 2020 Earnings discussion for PennyMac Financial Services, Inc. Conventional correspondent acquisitions, for which PFSI earns a fulfillment fee from PMT, totaled $30.5 billion, down 10% from the prior quarter and up 61% from the second quarter of 2020. Hedging and related gains totaled $91 million. Lastly, we encourage investors with any questions to reach out to our Investor Relations team by email or phone. President & CEO David Spector sold 30,000 shares of PFSI stock on 01/12/2021 at the average price of $57.43. In total, these strong acquisition and origination volumes continue to drive the organic growth of our servicing portfolio despite elevated prepayment activity. On Monday, February 27th, David Spector sold 15,000 shares of PennyMac Financial Services stock. Actual performance may differ significantly from backtested performance. As our production mix continues to shift towards direct lending, production expenses as a percentage of fallout adjusted locks are expected to trend higher. Net assets under management were down slightly quarter-over-quarter to $2.3 billion. 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. Good morning and thank you for joining us. David A. Spector is also on the board of 7 other companies. Our direct lending channels, which include both our consumer direct lending and broker direct lending, have experienced faster growth and are becoming much more significant contributors to PFSIs earnings profile. Arizona Mortgage Banker License # 0911088. NMLS ID # 35953. These technology investments are critical drivers to the growth of our direct lending businesses. These businesses are foundational to PFSI and not easily replicated. 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. 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. Meet our Smart Portfolio. Payoff-related expenses, which include interest shortfall and recording and release fees related to prepayments, remained elevated but decreased slightly quarter-over-quarter. You can see the results of our hedging strategy in the full year view on slide 19. 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. President & CEO of Pennymac Financial Services Inc (30-Year Financial, Insider Trades) David Spector (insider trades) sold 30,000 shares of PFSI on 01/12/2021 at an average price of $57.43 a share. Texas office: 2201 W. Plano Parkway, Suites 150 and 300, Plano, TX 75075. Revenue per fallout-adjusted lock was 343 basis points in the quarter, a decrease from the first quarter. Four analysts have rated the stock with a hold rating and three have assigned a buy rating to the companys stock. 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. Pennymac's state licenses and important notices. PennyMac Financial Services Inc had annual average EBITDA growth of 35.90% over the past five years. David works at Pennymac Loan Services, Llc as Chief Investment Officer. Posted by Defense World Staff on Mar 3rd, 2023. On Monday, February 27th, David Spector sold 15,000 shares of PennyMac Financial Services stock. Warning! The Production segment includes mortgage loan origination, acquisition, and sale activities. 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. 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. 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. Learn More on PennyMac Financial Services' active insiders. With that, I will now turn the call over to Andy Chang, Senior Managing Director and Chief Operating Officer, who will review the mortgage origination landscape and the drivers of profitability for PFSI going forward. We are growing our best-in class tools and solutions we provide our brokers with to further enhance their self-service capabilities. 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. 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. However, margins in this channel remain attractive. He currently serves as a senior advisor to TPG Capital, a global private investment firm, and . All loan programs subject to borrowers meeting appropriate underwriting conditions. Now Id like to begin by introducing David Spector, PennyMac Financials President and Chief Executive Officer who will review the Companys fourth quarter and full year 2020 results. Tower Research Capital LLC TRC Increases Stake in Centrus Energy Corp. Tower Research Capital LLC TRC Boosts Stock Position in Centrus Energy Corp. 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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 received compensation valued at about $12,375,328 in 2020 after becoming . While our employee base grew by 60% during the year, our production volumes grew by 67% and our earnings increased by 328%. The shares were sold at an average price of $60.64, for a transaction totalling $1,586,888.16. Most recently, David Spector sold 26,169 shares of the business's stock in a transaction on Wednesday, March 1st. 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. Some products may not be available in all states. 119504607, 119505929, 119506567, 119506570, 119507419. Lastly, originations in our broker direct channel totaled $4 billion in UPB, down 22% from the prior quarter. President & CEO of Pennymac Financial Services Inc ( 30-Year Financial, Insider Trades) David Spector ( insider trades) sold 30,000 shares of PFSI on 01/12/2021 at an average price of $57.43. Learn More on PennyMac Financial Services' active insiders. This hedging strategy is designed to moderate the impact of interest rate changes on the fair value of our MSR asset and also considers production-related income. "I am delighted to announce Doug Jones' election to our. In order to protect the value of our MSR asset we utilize a comprehensive hedging strategy. Get a breakdown of the different strategies based on detected insider trading activity. This net worth estimate does not reflect any other assets that Mr. Spector may own. Chief Enterprise Ops Officer Jeffrey Grogin sold 13,521 shares of PFSI stock on 01/04/2021 at the average price of $62.53. Information, rates and pricing are subject to change without prior notice at the sole discretion of PennyMac Loan Services, LLC. The shares were sold at an average price of $60.64, for a total transaction of $1,586,888.16. It operates through the following segments: Production, Servicing, and Investment Management. the company. Pennymac Westlake Village, CA office. Lastly, I would like to touch on the trends we are seeing related to forbearance and loss mitigation. 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. Hedging and other gains of over $943 million largely offset an MSR fair value decrease of over $1.1 billion. Book value per share grew 5% to $54.49 at June 30. 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. The price of the stock has increased by 0.03% since. 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. Mr. Spector owns 650,183 shares of PennyMac Financial Services stock worth more than $40,948,525 as of March 4th. 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. The direct lending channels have an outsized impact on PFSI's production earnings, as Andy mentioned earlier.