While such a market would be smaller than 2020, it would represent a large origination market by historical standards. Colorado office: 5500 South Quebec Street, Suite 260 Greenwood Village, CO 80111, (877) 215-2552. 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. Thank you, Isaac. The return on the trade was 60.70%. In total, these strong acquisition and origination volumes continue to drive the organic growth of our servicing portfolio despite elevated prepayment activity. I will cover each segment's results and then briefly review our forbearance and servicing advance trends. Net income was $453 million or diluted earnings per share of $5.97 resulting in book value growth per share of 15% to $47.80, up from $41.67 at the end of the prior quarter. As David mentioned earlier PFSIs net income was $452.8 million or diluted earnings per share of $5.97. While our servicing group was aiding borrowers, our corporate groups were ensuring our capital and liquidity were protected. I am Barclays' consumer finance analyst, Mark DeVries. 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 company. 3043 Townsgate Rd Ste 200, Westlake Village, CA 91361-3027. The committed pipeline at July 31 was $7.2 billion. While 2020 was a record, we have a long track record of strong performance. 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. Revenue per fallout adjusted lock for PFSIs own account was 217 basis points in the fourth quarter, down slightly from 236 basis points in the third quarter. Good morning and thank you for joining us. Production segment pretax income was $244.4 million, down 33% from the prior quarter and 55% from the second quarter of 2020. JMP Securities lowered PennyMac Financial Services from an outperform rating to a market perform rating in a report on Wednesday, January 18th. We quickly developed a plan to deal with the COVID-19 pandemic and the various work from home orders across the nation. | 3 Mrz 2023. These valuation declines were primarily driven by significant levels of prepayment activity and early buyouts. Equal Housing Opportunity 2023 PennyMac Loan Services, LLC, 3043 Townsgate Rd, Suite 200, Westlake Village, CA 91361, 818-224-7442. Enter your email address below to get our daily insider buying and selling report. Learn More on PennyMac Financial Services' active insiders. Pricing margins in the channel decreased sharply, reflecting intense levels of competition between channel leaders. We believe this represents approximately 13% of the total brokers and non-delegated sellers active in the market today, providing continued room for growth and expansion within the channel in the future. Learn More on David A. Spector's trading history. 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. David Spector. Changes in these assumptions may have a material impact on the backtested returns presented. And the committed pipeline at July 31 was $1.9 billion. 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. While Stan had retired from day-to-day responsibilities at PennyMac, he remained a trusted advisor and dear friend. GuruFocus has detected 5 severe warning signs with PennyMac Financial Services Inc. . GuruFocus has detected 8 Warning Signs with PFSI. Hedge funds and other institutional investors have recently modified their holdings of the stock. Pennymac has 10 current employee profiles, including President and Chief Executive Officer David Spector. However, margins in this channel remain attractive. Item 1.01 Entry into a Material Definitive Agreement. Sign up for a free account. The Big Take is the very best of Bloomberg's in-depth, original reporting from around the globe every day. the financials in more detail later on in this discussion. The shares were sold at an average price of $60.64, for a transaction totalling $1,586,888.16. Also, our investments in technology, such as our cloud-based proprietary servicing system, have helped us to maximize economies of scale and grow efficiently, and help drive strong results for years to come. The total sale was $1.7 million. For licensing information, go to: www.nmlsconsumeraccess.org. 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. Ready to apply or complete your application? Information on this page was last updated on 3/1/2023. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. President & CEO David Spector sold 30,000 shares of PFSI stock on 01/12/2021 at the average price of $57.43. For any questions, please visit our website at ir.pennymacfinancial.com or call our Investor Relations department at 818-264-4907. Net income in the fourth quarter was the second highest in the history of. Thank you. 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. And with that, I would like to turn it back to David for some closing remarks. 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. The average return per transaction made by David Spector is 3.50%. He previously served as Chief Correspondent Lending Officer and has been a member of the company's executive management team since 2011. Based on data from MarketBeat.com, the company has a consensus rating of Hold and a consensus target price of $69.50. Posted by Defense World Staff on Mar 3rd, 2023. 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. On Monday, December 12th, David Spector sold 12,750 shares of PennyMac Financial Services stock. What is David Spector's role in PennyMac Mortgage? 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. While our employee base grew by 60% during the year, our production volumes grew by 67% and our earnings increased by 328%. 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. 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. Lastly, our broker direct channel continued its impressive growth in both locked and funded volumes as we increase the number of approved brokers and our presence in the channel grows. Consumer and broker direct represented 20% of fallout adjusted lock volume in the fourth quarter but accounted for over 70% of segment pretax income. Many of these employees were on-boarded virtually and have begun their PennyMac careers working from home. The barriers to entry for these businesses that require scale for success provide PFSI a strategic advantage over our competitors. 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. 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. His family and PennyMac, which announced his passing, said he died from complications . PennyMac Financial Servicess payout ratio is 9.54%. 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 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. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. T. Rowe Price Investment Management Inc. raised its position in shares of PennyMac Financial Services by 5.4% during the 4th quarter. 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. 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. Licensed by the N.J. Department of Banking and Insurance. 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. Segment revenue was $13.5 million, up 41% from the first quarter and 28% from June 30, 2020. We encourage investors with any questions to reach out to our Investor Relations team by e-mail or phone. #PennymacCaresVisit PENNYMAC.COM for details about how were assisting our family of customers during the COVID-19 crisis. This concludes PennyMac Financial Services, Inc.'s second quarter earnings discussion. Strong production volumes across all 3 channels continue to drive the growth of our servicing portfolio despite the elevated level of prepayments. Meet our Smart Portfolio. Thank you, Dan. Similar Profiles. The corporate mailing address for Mr. Spector and other PennyMac Financial Services executives is 3043 TOWNSGATE ROAD, WESTLAKE VILLAGE CA, 91361. The direct lending channels have an outsized impact on PFSI's production earnings, as Andy mentioned earlier. 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. In order to protect the value of our MSR asset, we utilize a comprehensive hedging strategy. 18.5 million shares or approximately 24% of PFSI's common shares outstanding. The shares were sold at an average price of $60.64, for a total transaction of $1,586,888.16. Net income in the fourth quarter was the second highest in the history of the company. David A. Spector is also on the board of 7 other companies. 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. 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. Thank you. Other restrictions apply. 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. Advances are expected to continue increasing over the next 6 to 12 months. Contact our customer service team with any inquiries by sending us a message through the Message Center by simply logging in to your account. In July, originations for our consumer direct channel totaled $3.5 billion and locks totaled $5.5 billion. Earnings per share grew 328% for the year with net income up 319%. (business & personal). Thank you. 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. Being one of the Find contact details for 700 million professionals. 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%. How do I contact David A. Spector? 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. The estimated net worth of David A. Spector is at least $40.95 million as of March 1st, 2023. This grew our servicing portfolio to over $426 billion in UPB even with elevated prepayment speeds. Learn More on David A. Spector's contact information. Our balanced business model continues to deliver consistent profitability and value creation as it has done over the last seven years as a public company. 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. Production revenue margins remain elevated, especially with PFSIs growth in consumer and broker direct volumes. If you have an ad-blocker enabled you may be blocked from proceeding. 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. Please disable your ad-blocker and refresh. 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. Actual performance may differ significantly from backtested performance. 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. January 25, 2021, 12:31 p.m. EST 1 Min Read. 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. If so, please call us at 866.545.9070. 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. What is David Spector's role in PennyMac Mortgage? If you're not automatically redirected, please click here. 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. Servicing advances outstanding decreased to approximately $424 million at June 30 from $437 million at March 31. 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. Is this happening to you frequently? The price of the stock has decreased by 14.5% since. 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. Our higher-margin consumer direct lending channel continued to expand, producing record locked and funded volumes during the quarter, which we estimate has resulted in a significant increase in market share. 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. Lastly, I would like to touch on the trends we are seeing related to forbearance and loss mitigation. "I am delighted to announce Doug Jones' election to our. Company profile for PennyMac Financial Services Inc. including key executives, insider trading, ownership, revenue and average growth rates.

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