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. As David mentioned earlier PFSIs net income was $452.8 million or diluted earnings per share of $5.97. 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. PennyMac. He previously served as Chief Correspondent Lending Officer and has been a member of the company's executive management team since 2011. 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. PennyMac Mortgage Investment Trust (NYSE:PMT) Q1 2021 Earnings Conference Call May 6, 2021 5:00 PM ETCompany Participants. Servicing advances outstanding were approximately $454 million at December 31, up from $346 million at September 30, primarily associated with seasonal tax payments. In July, originations for our consumer direct channel totaled $3.5 billion and locks totaled $5.5 billion. Is this happening to you frequently? Servicing advances outstanding decreased to approximately $424 million at June 30 from $437 million at March 31. Sign up for a free account. As our production mix continues to shift towards direct lending, production expenses as a percentage of fallout adjusted locks are expected to trend higher. The price of the stock has increased by 0.03% since. Director, 10% Owner Stanford L Kurland sold 31,000 shares of PFSI stock on 01/07/2021 at the average price of $60.12. Are you interested in helping the next generation of homeowners fulfill their dream of home? Net assets under management totaled $2.3 billion as of December 31, up 1% from September 30. PennyMac Financial Services can also be reached via phone at (818) 224-7442 and via email at pfsi_ir@pnmac.com. Our investment management segment delivered pretax income of $4.1 million, up from $1.4 million in the prior quarter as a result of incentive fees earned and down from $4.7 million in the second quarter of 2020. For the complete insider trading history of PFSI, click here. Thanks, Andy. Dan Perotti , PFSIs Senior Managing Director and Chief Financial Officer will discuss the financials in more detail later on in this discussion. No P&I advances are outstanding as prepayment activity continued to sufficiently cover remittance obligations. 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. This performance added to a remarkable year that saw PFSI achieve a return on equity of 62% with almost $200 billion in UPB of loans funded. The Production segment includes mortgage loan origination, acquisition, and sale activities. President & CEO David Spector sold 30,000 shares of PFSI stock on 01/12/2021 at the average price of $57.43. Mr. Spector owns 650,183 shares of PennyMac Financial Services stock worth more than $40,948,525 as of March 4th. Operating revenue decreased $2 million from the prior quarter driven by declines in earnings on custodial balances. 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. Good morning and thank you for joining us. Headquarters. If you have an ad-blocker enabled you may be blocked from proceeding. This concludes PennyMac Financial Services, Inc.'s second quarter earnings discussion. Susquehanna Fundamental Investments LLC raised its position in shares of PennyMac Financial Services by 24.8% during the 4th quarter. This concludes PennyMac Financial Services, Inc.s fourth quarter earnings discussion. 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. Previously, Mr. Spector served as PennyMac Financials President and Chief Operating Officer. Lastly, we encourage investors with any questions to reach out to our Investor Relations team by email or phone. We achieved record production across all channels, with increased market penetration in our higher margin direct lending channels. Segment revenue was $13.5 million, up 41% from the first quarter and 28% from June 30, 2020. The TipRanks Smart Score performance is based on backtested results. As we outlined in our Investor Day, we see additional opportunities resulting from changes to the GSE's preferred stock purchase agreement. We are also increasing the use of online closings and automation. Massachusetts Mortgage Lender License # MC35953. 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. 47.206 (3) & (4). And finally, PFSIs Board of Directors approved an increase to its stock repurchase authorization from $500 million to $1 billion of outstanding common stock. We encourage investors with any questions to reach out to our Investor Relations team by e-mail or phone. David Spector also recently made the following trade(s): PFSI stock opened at $61.78 on Friday. The percentage of profitable transactions made by David Spector is 44%. Finally, our Mortgage Fulfillment Division is making enhancements to further automate and improve the production and distribution of loan documents. However, he will become a special advisor to David Spector, chairman and chief . Net assets under management totaled $2.3 billion as of June 30, down slightly from March 31 and up 5% from June 30, 2020. In July, our correspondent acquisitions were $15 billion in UPB and locks were $12.8 billion. Business Incorporated: The expertise of our deep management team, combined with the technology investments we have made, support PennyMac's growth strategy in a changing mortgage market. Learn More about David A. Spector's net worth. PennyMac Financial's servicing portfolio totaled $473 billion in unpaid principal balance at June 30, up 5% from the end of the prior quarter and 22% from June 30, 2020. Based on data from MarketBeat.com, the company has a consensus rating of Hold and a consensus target price of $69.50. On Wednesday, March 1st, David Spector sold 26,169 shares of PennyMac Financial Services stock. David Spector, Chairman & CEO, Director at PennyMac Mortgage, holds 259.60K shares in PennyMac Mortgage (Ticker: PMT), holds 1.10M shares in PennyMac Financial (Ticker: PFSI). 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. Learn More on PennyMac Financial Services' active insiders. The average return per transaction made by David Spector is 3.50%. David Spector is currently Chairman of the Board, President and Chief Executive Officer at PennyMac - View - PennyMac org chart Interest rate lock volume was $5.7 billion in UPB, up 4% from the third quarter and 234% from the fourth quarter of 2019. Learn More about insider trades at PennyMac 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. I am Barclays' consumer finance analyst, Mark DeVries. 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. What was David Spector's most profitable transaction? PennyMac TPO Contact Information Principal Mr. David Spector, President/CEO Customer Contact Mr. David Spector, President/CEO Additional Contact Information Phone Numbers (702). 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. 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%. PennyMac Financial Services Inc had annual average EBITDA growth of 35.90% over the past five years. The most recent insider tranaction occured on March, 1st when insider Steven Richard Bailey sold 13,604 shares worth more than $825,762.80. The committed pipeline at January 31 was $3 billion. 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%. 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 direct lending channels have an outsized impact on production segment earnings, as Dan will discuss later. Pennymac Westlake Village, CA office. Our correspondent mix percentage was essentially unchanged from the previous quarter, as 35% of the acquisitions were government loans and 65% were conventional loans. 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. We'll review your feedback and if you chose to be contacted, we will respond within 1-2 business days. David A. Spector is also on the board of 7 other companies. 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. This information is provided for illustrative purposes only. PennyMac Financial's owned portfolio reported a prepayment speed of 28.3% in the second quarter, down from 32.6% in the prior quarter. View David Spector's email address (d*****@pennym***.com) and phone number. Some products may not be available in all states. PennyMac Financial Services Inc provides mortgage loans to customers in the United States. Search over 700 Learn More on David A. Spector's salary. 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. 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. If so, please call us at 866.545.9070. This growth in production is not only due to the significant investments we have made in our production technology, which Doug will elaborate on later, but is also due to the considerable investments we have made in people. 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. Government correspondent locks were $15.7 billion, down 8% from the prior quarter and up 21% from the second quarter of 2020. 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. At PennyMac, our commitment to our customers doesnt end at closing. 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. The committed pipeline at July 31 was $7.2 billion. Licensed by the N.J. Department of Banking and Insurance. Our costs vary by channel, ranging from approximately 15 basis points in correspondent to 150 basis points in consumer direct. The corporate mailing address for Mr. Spector and other PennyMac Financial Services executives is 3043 TOWNSGATE ROAD, WESTLAKE VILLAGE CA, 91361. Contact our customer service team with any inquiries by sending us a message through the Message Center by simply logging in to your account. 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. What is the average return per transaction made by David Spector? 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. 3043 Townsgate Rd Ste 200, Westlake Village, CA 91361-3027. We built our correspondent business into the largest in the U.S. over the last decade while at the same time growing our servicing portfolio, primarily organically. PennyMac Financial Services, Inc. has a 12-month low of $38.53 and a 12-month high of $73.79. These strong production volumes again led to servicing portfolio growth despite continued elevated prepayment activity. StockNews.com raised PennyMac Financial Services from a sell rating to a hold rating in a report on Saturday, February 11th. 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. In order to protect the value of our MSR asset, we utilize a comprehensive hedging strategy. 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. Strong production volumes across all 3 channels continue to drive the growth of our servicing portfolio despite the elevated level of prepayments. In total, these strong acquisition and origination volumes continue to drive the organic growth of our servicing portfolio despite elevated prepayment activity. GuruFocus has detected 8 Warning Signs with PFSI. The direct lending channels continued to have an outsized impact on PFSIs production earnings in the fourth quarter. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. The stock was sold at an average price of $60.64, for a total value of $1,586,888.16. Government correspondent locks were $19.7 billion in UPB, down 2% from the prior quarter and up 22% from the fourth quarter of 2019. David is based out of Agoura Hills, California, United States and works in the Financial Services industry. 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. These technology investments are critical drivers to the growth of our direct lending businesses. However, margins in this channel remain attractive. Lastly, I would like to touch on the trends we are seeing related to forbearance and loss mitigation. 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. 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. 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. The Servicing segment offers servicing of originated mortgage loans and execution and management of early buyout transactions. Please take a moment to watch a special video from our President and CEO, David Spector. In the last year, insiders at the real estate investment trust sold shares 23 times. No P&I advances have been made to date, as prepayment activity continued to sufficiently cover remittance obligations. On Monday, December 12th, David Spector sold 12,750 shares of PennyMac Financial Services stock. Backtested performance is not an indicator of future actual results. 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. 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. 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. On Monday, December 12th, David Spector sold 12,750 shares of PennyMac Financial Services stock. Up to 5 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. David Spector - Chairman and Chief . Payoff-related expense, which includes interest shortfall and recording and release fees related to prepayments, remains elevated and increased by $8.3 million quarteroverquarter. 119504607, 119505929, 119506567, 119506570, 119507419. 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. Production revenue margins remain elevated, especially with PFSIs growth in consumer and broker direct volumes. This net worth estimate does not reflect any other assets that Mr. Spector may own. As you can see in greater detail on slide 21, EBO loan-related revenue increased significantly to $233.3 million as a result of continued loss mitigation activity with borrowers emerging from forbearance while related expenses were modest as most of the loans bought out returned to performing status immediately. 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. The predominant outcome has been through loan modifications to the borrowers to aid in their recovery. Item 1.01 Entry into a Material Definitive Agreement. PennyMac Financial Services, Inc. a annonc que Doug Jones, prsident et directeur des services hypothcaires, a rejoint son conseil d'administration compter du 1er mars 2023. Fourth quarter performance was very strong across loan production and servicing and we continue to see the strength of our balanced business model in our results. What was David Spectors latest transaction? This outstanding income generated excess capital that we redeployed into increased levels of production, share repurchases, reduction of debt, and increased servicing activity. Stockholders of record on Tuesday, February 14th were given a dividend of $0.20 per share. If you have an ad-blocker enabled you may be blocked from proceeding. Main Telephone (818) 224-7442 Primary Address 3043 Townsgate Road Suite 200 Westlake Village, CA 91361 USA Fiscal Close December Founded 2008 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. And since the beginning of 2020, we have now repurchased over 18.5 million shares or approximately 24% of PFSI's common shares outstanding. While our servicing group was aiding borrowers, our corporate groups were ensuring our capital and liquidity were protected. 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. A free inside look at company reviews and salaries posted anonymously by employees. PennyMac Financial Services, Inc. (NYSE:PFSI) Q4 2020 Earnings Conference Call February 4, 2021 4:30 PM ET, Isaac Garden - Vice President Investor Relations, David Spector - President and Chief Executive Officer, Doug Jones - Chief Mortgage Banking Officer. Our balanced business model is a key strategic advantage for PFSI, which has consistently delivered outstanding returns across different environments, producing a 33% return on equity for the first half of 2021. Our costs vary by channel, ranging from approximately 15 basis points in correspondent to 150 basis points in consumer direct.