Im proud of the actions we have taken and the dedicated management team across the company that has helped put these plans into action. Advances are expected to continue increasing over the next 6 to 12 months. 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. SSE allowed us to quickly implement changes that enabled us to complete the roll-out of large programs, like the CARES Act forbearance program, in a fast and cost-effective manner. What was David Spectors latest transaction? 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. Dan Perotti, PFSI's Senior Managing Director and Chief Financial Officer, will discuss our financial performance in more detail later on in his discussion. Massachusetts Mortgage Lender License # MC35953. Are you interested in helping the next generation of homeowners fulfill their dream of home? A number of research firms recently issued reports on PFSI. I am Barclays' consumer finance analyst, Mark DeVries. Thank you. Arizona Mortgage Banker License # 0911088. Chart Data in Insider Trading History Table. Up to 5 He previously served as Chief Correspondent Lending Officer and has been a member of the company's executive management team since 2011. In the last year, insiders at the real estate investment trust sold shares 23 times. This financial performance is driven by the balanced business model in mortgage banking that we have built over the last 13 years. The Investment Management segment consists of sourcing, performing diligence, bidding and closing investment asset acquisitions, managing correspondent production activities and managing the acquired assets. Thank you, David. This expertise and experience has served us well, enhancing our ability to help many borrowers affected by the COVID-19 pandemic. 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. This outstanding income generated excess capital that we redeployed into increased levels of production, share repurchases, reduction of debt, and increased servicing activity. Within our consumer direct lending channel, initiatives include enhancing our lead generation capabilities and use of data analytics, in addition to increasing the use of digital marketing to drive non-portfolio originations. Thank you. The predominant outcome has been through loan modifications to the borrowers to aid in their recovery. 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. million verified professionals across 35 million companies. Backtested performance is not an indicator of future actual results. PennyMac Financial Services' insider roster includes Anne Mccallion (Director), Farhad Nanji (Director), and David Spector (CEO). PennyMac Financial delivered another outstanding quarter of operational and financial performance, despite the increased volatility in the mortgage market. Approve of CEO. While we experienced hedging losses in the quarter, the decrease was more than offset by PFSIs production income. 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 . StockNews.com raised PennyMac Financial Services from a sell rating to a hold rating in a report on Saturday, February 11th. PennyMac Financial Services Inc has a market cap of $4.16 billion; its shares were traded at around $57.450000 with a P/E ratio of 3.36 and P/S ratio of 1.35. David Spector's most profitable transaction was an Informative Sell of PMT stock on March 22, 2019. Licensed by the Department of Financial Protection and Innovation under the California Residential Mortgage Lending Act. We encourage investors with any questions to reach out to our Investor Relations team by e-mail or phone. PennyMac Financial Services Inc had annual average EBITDA growth of 35.90% over the past five years. 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. Isaac Garden - Investor Relations. We were quick to step up and aid borrowers as the COVID-19 pandemic spread across the U.S., affecting many of our customers. Margins in our consumer direct channel still remain elevated relative to historical levels. David A. Spector is a businessperson who has been the head of 9 different companies. Net income in the fourth quarter was the second highest in the history of. No P&I advances have been made to date, as prepayment activity continued to sufficiently cover remittance obligations. 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. Learn More about David A. Spector's net worth. While the Pennymac workforce stays home to help flatten the curve, we know first responders, medical staff, delivery drivers, our essential workers and more, are out there heroically providing for those in need. Further, backtesting allows the security selection methodology to be adjusted until past returns are maximized. The servicing segment recorded pretax income of $30.9 million, down from pretax income of $141.7 million in the prior quarter and up from a pretax loss of $62.4 million in the second quarter of 2020. We quickly developed a plan to deal with the COVID-19 pandemic and the various work from home orders across the nation. This hedging strategy is designed to moderate the impact of interest rate changes on the fair value of our MSR asset and also considers productionrelated income. Pennymac Cares | Thank You from President & CEO, David Spector 108,081 views Apr 21, 2020 Right now, we realize the importance of home like never before. PFSI's Investment Management segment delivered increased profitability as a result of incentive fees earned based on PMT's profitability over the last 4 quarters. And for the month of July, we repurchased an additional 2.5 million shares for an approximate cost of $151 million. Good morning and thank you for joining us. Contact our customer service team with any inquiries by sending us a message through the Message Center by simply logging in to your account. Ill now turn it over to Dan Perotti, Senior Managing Director and Chief Financial Officer to speak to the financial results for the quarter. The firm engages in the production and servicing of U.S. residential mortgage loans. You will be contacted by a representative that will help answer any inquiries you have. No credit card required. 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. 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. Our direct lending channels have an outsized impact on production segment earnings, as Dan will discuss later. This chart shows David Spector's buying and selling at PennyMac Financial Services by year and by quarter. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. Its Time For A Fresh Look At The Kroger Co. West Frasers Earnings Scream Timber, Outlook Says Buy, MarketBeat.com's FREE daily email newsletter, Tower Research Capital LLC TRC Increases Position in ABB Ltd. Tower Research Capital LLC TRC Has $254,000 Holdings in Daqo New Energy Corp. ABB Ltd Shares Bought by Tower Research Capital LLC TRC. Other restrictions apply. And since the beginning of 2020, we have now repurchased over 18.5 million shares or approximately 24% of PFSI's common shares outstanding. 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. PennyMac Mortgage Investment Trust (NYSE:PMT) Q1 2021 Earnings Conference Call May 6, 2021 5:00 PM ETCompany Participants. 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. As David mentioned earlier PFSIs net income was $452.8 million or diluted earnings per share of $5.97. 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. | 3 Mrz 2023. Schonfeld Strategic Advisors LLC raised its position in shares of PennyMac Financial Services by 822.2% during the 4th quarter. Production revenue margins remain elevated, especially with PFSIs growth in consumer and broker direct volumes. 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. 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%. This information is provided for illustrative purposes only. PennyMac Financial Services, Inc. (NYSE:NYSE:PFSI) Q4 2020 Earnings Conference Call February 4, 2021 4:30 PM ETCompany ParticipantsIsaac Garden - Vice President Investor RelationsDavid. 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. Based on data from MarketBeat.com, the company has a consensus rating of Hold and a consensus target price of $69.50. The return on the trade was 60.70%. What was David Spector's most profitable transaction? The Servicing segment recorded pretax income of $42 million, down from pretax income of $111.7 million in the prior quarter and up from a pretax loss of $5.1 million in the fourth quarter of 2019. If you need the payment address, click here. Please. Thank you for sharing your valuable opinion. PennyMac remained the largest correspondent aggregator in the U.S. in the fourth quarter. This website may include combined information from PennyMac Financial Services, Inc. ("PFSI") and PennyMac Mortgage Investment Trust ("PMT") collectively Pennymac. Operating expenses were also down quarter-over-quarter as the prior quarter included seasonal accruals of compensation related expenses. 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. 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. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. Lastly, originations in our broker direct channel totaled $4 billion in UPB, down 22% from the prior quarter. PennyMac. 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. Revenue per fallout-adjusted lock was 343 basis points in the quarter, a decrease from the first quarter. 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. Find the best performing Analyst in each sector. Following the transaction, the chief executive officer now directly owns 650,183 shares in the company, valued at approximately $39,427,097.12. 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. January 25, 2021, 12:31 p.m. EST 1 Min Read. 67.03% of the stock is currently owned by institutional investors and hedge funds. 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. Before we begin, let me remind you that our discussion contains forward-looking statements that are subject to risks identified on slide two that could cause our actual results to differ materially as well as non-GAAP measures that have been reconciled to their GAAP equivalent in our earnings presentation. Strong production volumes across all 3 channels continue to drive the growth of our servicing portfolio despite the elevated level of prepayments. Our large, organically built servicing portfolio provides a counter-balance to our production activity. However, he will become a special advisor to David Spector, chairman and chief . (business & personal). During 2020 we added over 2,000 employees to the PennyMac team to expand our workforce to more than 6,000. 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. 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. View detailed PFSI description & address. 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. 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.