You can see the results of our hedging strategy in the full year view on slide 19. Earnings per share grew 328% for the year with net income up 319%. This chart shows David Spector's buying and selling at PennyMac Financial Services by year and by quarter. Importantly, and as Doug Jones, Senior Managing Director and Chief Mortgage Banking Officer, will expand on in his section of the presentation, we sold $3.4 billion in UPB of early buyout loans to third-party whole loan investors, thus reducing the risk associated with holding these loans and increasing our capital efficiency. As we continue to grow our leadership positions in the direct origination channels, this growth will drive the earnings from PennyMac Financial's production segment. 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. The most recent insider tranaction occured on March, 1st when insider Steven Richard Bailey sold 13,604 shares worth more than $825,762.80. David Spector President and Chief Executive Officer Lior Ofir Senior Managing Director & Chief Information Officer Stanford L. Kurland Executive Chairman Amir Pirnia SVP Engineering Importantly, we continued to repurchase stock, with 2.6 million shares of PFSI's common stock bought back during the quarter for an approximate cost of $155 million. Backtested results are adjusted to reflect the reinvestment of dividends and other income and, except where otherwise indicated, are presented gross-of fees and do not include the effect of backtested transaction costs, management fees, performance fees or expenses, if applicable. No P&I advances are outstanding as prepayment activity continued to sufficiently cover remittance obligations. Mr. Spector owns 650,183 shares of PennyMac Financial Services stock worth more than $40,948,525 as of March 4th. David Spector. 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. Isaac Garden - Investor Relations. No credit card required. 18.5 million shares or approximately 24% of PFSI's common shares outstanding. We quickly developed a plan to deal with the COVID-19 pandemic and the various work from home orders across the nation. In the fourth quarter, the pretax income was $234.1 million, a 31% decrease from . Stockholders of record on Tuesday, February 14th were given a dividend of $0.20 per share. This balanced business helps generate strong results across a variety of market and rate environments. Co-op loans not available. 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. 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. 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. State of Wyoming now owns 5,512 shares of the real estate investment trusts stock worth $312,000 after purchasing an additional 469 shares during the last quarter. 47.206 (3) & (4). Arizona Mortgage Banker License # 0911088. What is the percentage of profitable transactions made by David Spector? 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. Director, 10% Owner Stanford L Kurland sold 31,000 shares of PFSI stock on 12/23/2020 at the average price of $67.19. David served as President and Chief Investment Officer and President and Chief Operating Officer for PennyMac. This grew our servicing portfolio to over $426 billion in UPB even with elevated prepayment speeds. This growth will be crucial in further expanding our direct lending channels and supporting our growing servicing infrastructure. Jones brings more than 25 years of financial services industry experience to PennyMac Financial Services. During 2020 we added over 2,000 employees to the PennyMac team to expand our workforce to more than 6,000. We'll review your feedback and if you chose to be contacted, we will respond within 1-2 business days. Ill now turn it over to Dan Perotti, Senior Managing Director and Chief Financial Officer to speak to the financial results for the quarter. Payoff-related expense, which includes interest shortfall and recording and release fees related to prepayments, remains elevated and increased by $8.3 million quarteroverquarter. Chart Data in Insider Trading History Table. Based on data from MarketBeat.com, the company has a consensus rating of Hold and a consensus target price of $69.50. In July, our correspondent acquisitions were $15 billion in UPB and locks were $12.8 billion. 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. 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. His family and PennyMac, which announced his passing, said he died from complications . In order to protect the value of our MSR asset, we utilize a comprehensive hedging strategy. Search over 700 PennyMac Financial Services Inc., a national mortgage lender and servicer, announced Thursday that Doug Jones has joined its board of directors. Strong production volumes across all 3 channels continue to drive the growth of our servicing portfolio despite the elevated level of prepayments. For more information, review Pennymac's state licenses and important notices. PennyMac Mortgage Investment Trust (NYSE:PMT) Q1 2021 Earnings Conference Call May 6, 2021 5:00 PM ETCompany Participants. 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. 292 Pennymac reviews in Los Angeles, CA. David works at Pennymac Loan Services, Llc as Chief Investment Officer. I'll now turn it over to Dan, who will speak to the financial results for the quarter. Following the completion of the sale, the chief executive officer now directly owns 650,183 shares of the company's stock, valued at $39,427,097.12. {{ userNotificationState.getAlertCount('bell') }}. #PennymacCaresVisit PENNYMAC.COM for details about how were assisting our family of customers during the COVID-19 crisis. free lookups / month. In the fourth quarter, PennyMac Financial delivered net income of 38 While such a market would be smaller than 2020, it would represent a large origination market by historical standards. For the complete insider trading history of PFSI, click here. For servicing on your existing mortgage account with Pennymac. In order to protect the value of our MSR asset we utilize a comprehensive hedging strategy. Thank you, David. While we experienced hedging losses in the quarter, the decrease was more than offset by PFSIs production income. 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. The percentage of loans in forbearance decreased to 7.8% at December 31 from 10.1% at September 30 as new forbearance plans implemented since September 30 were more than offset by borrowers in forbearance plans at September 30 who have since exited. As we outlined in our Investor Day, we see additional opportunities resulting from changes to the GSE's preferred stock purchase agreement. Texas office: 2201 W. Plano Parkway, Suites 150 and 300, Plano, TX 75075. Licensed by the N.J. Department of Banking and Insurance. No P&I advances have been made to date, as prepayment activity continued to sufficiently cover remittance obligations. He previously served as Chief Correspondent Lending Officer and has been a member of the company's executive management team since 2011. PennyMac Financial Services, Inc. has a 12-month low of $38.53 and a 12-month high of $73.79. For licensing information, go to: www.nmlsconsumeraccess.org. We have made significant investments to scale our end-to-end mortgage fulfillment process while we expect the substantial investments in technology we have made to continually improve the customer experience over time. This concludes PennyMac Financial Services, Inc.s fourth quarter earnings discussion. 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. The direct lending channels continued to have an outsized impact on PFSIs production earnings in the fourth quarter. 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 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. The number of approved brokers totaled 1,574, up 11% over the end of the third quarter. 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. Revenue per fallout-adjusted lock was 71 basis points, down from 140 basis points in the prior 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. Presenter SpeechMark DeVries Hello. Thanks, Doug. Currently, he occupies the position of Chairman at PNMAC Mortgage Opportunity Fund LLC, Chairman of PNMAC Mortgage Opportunity Fund LP, Chairman-Trustees Board & CEO at PennyMac Mortgage Investment Trust, Chief Executive Officer for PennyMac Corp. (a subsidiary of PennyMac Mortgage Investment Trust) and Chairman & Chief Executive Officer for PennyMac Financial Services, Inc., Chairman & Chief Executive Officer for PNMAC Holdings, Inc., Chief Executive Officer of PNMAC Capital Management LLC, President & Chief Executive Officer for Private National Mortgage Acceptance Co. LLC and Chief Executive Officer for PennyMac Loan Services LLC (which are all subsidiaries of PennyMac Financial Services, Inc.). Advances are expected to continue increasing over the next 6 to 12 months. Approve of CEO. 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 The results reflect performance of a strategy not historically offered to investors and does not represent returns that any investor actually attained. PennyMac Financial delivered strong fourth quarter results, marking the end to a record year. Net assets under management totaled $2.3 billion as of December 31, up 1% from September 30. On Monday, February 27th, David Spector sold 15,000 shares of PennyMac Financial Services stock. The corporate mailing address for Mr. Spector and other PennyMac Financial Services executives is 3043 TOWNSGATE ROAD, WESTLAKE VILLAGE CA, 91361. Trade/service marks are the property of PennyMac Loan Services, LLC and/or its subsidiaries or affiliates. 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. 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. 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. For the total servicing portfolio, we facilitated approximately 291,000 forbearance plans for our customers, with over 90% of those enrolled through our automated channels. 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. Please. Production revenue margins remain elevated, especially with PFSIs growth in consumer and broker direct volumes. Schonfeld Strategic Advisors LLC raised its position in shares of PennyMac Financial Services by 822.2% during the 4th 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. 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. On Monday, December 12th, David Spector sold 12,750 shares of PennyMac Financial Services stock. Thank you. Massachusetts Mortgage Lender License # MC35953. Get a breakdown of the different strategies based on detected insider trading activity. PennyMac Financial delivered another outstanding quarter of operational and financial performance, despite the increased volatility in the mortgage market. 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. A free inside look at company reviews and salaries posted anonymously by employees. Licensed by the Department of Financial Protection and Innovation under the California Residential Mortgage Lending Act. David Spector's most profitable transaction was an Informative Sell of PMT stock on March 22, 2019. 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. If so, please call us at 866.545.9070. I am Barclays' consumer finance analyst, Mark DeVries. 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. As the CEO of PennyMac Financial Services, Inc., Mr. Spector earned a total compensation package of $13,575,224.00 in 2021. Revenue per fallout-adjusted lock was 343 basis points in the quarter, a decrease from the first quarter. Rhode Island Licensed Lender # 20092600LL, Loan Broker, and Third Party Loan Servicer. 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. What is David Spector's role in PennyMac Mortgage? Click here to check it out. Our goal is to be a trusted financial partner that you can count on as long as you own your home. On slide 14, you can see the fair value of our MSR decreased by $251 million in the second quarter and included $196 million in fair value losses as a result of higher expectations for prepayment activity in the future driven by lower mortgage rates and a flatter yield curve, as well as an additional $55 million in other valuation declines. A number of research firms recently issued reports on PFSI. PennyMac Financial Services Inc had annual average EBITDA growth of 35.90% over the past five years. The shares were sold at an average price of $60.80, for a total transaction of $912,000.00. The technology based digital marketing platform, coupled with dedicated loan officers and an efficient operating processes, gives PennyMac a strong foundation for continued growth. However, he will become a special advisor to David Spector, chairman and chief . PennyMac. Stanford Kurland, who founded and served as Chairman of PennyMac Financial Services Inc., Westlake Village, Calif., following a multi-decade career at Countrywide Financial Corp., passed away on Jan. 25. The decrease from the prior quarter was primarily driven by a $76 million decrease in EBO loan-related revenue. GuruFocus has detected 8 Warning Signs with PFSI. Specifically, backtested results do not reflect actual trading or the effect of material economic and market factors on the decision-making process. Other restrictions apply. All loan programs subject to borrowers meeting appropriate underwriting conditions. Learn More on David A. Spector's salary. These businesses are foundational to PFSI and not easily replicated. Is this happening to you frequently? Head over to our Expert Center to see a list of the, Invest Like a Pro with Unique Data & Simplifed Tools, See the Hottest Stocks Based on Insider Trading >. David Spector also recently made the following trade(s): PFSI stock opened at $61.78 on Friday. NMLS ID # 35953. 3043 Townsgate Rd Ste 200, Westlake Village, CA 91361-3027. 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. Ultimately, we believe for these reasons, PennyMac will continue its market share growth as a channel leader. PennyMac Loan Services, LLC Attention: Correspondence Unit PO Box 514387 Los Angeles, CA 90051-4387, Notice of Error and Information Requests Only. This concludes PennyMac Financial Services, Inc.'s second quarter earnings discussion. 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. Stanford Kurland. During the last ninety days, David A. Spector has sold $2,498,888.16 in shares of PennyMac Financial Services stock. Thank you. We are also increasing the use of online closings and automation. PennyMac Financial Services' insider roster includes Anne Mccallion (Director), Farhad Nanji (Director), and David Spector (CEO). Following the transaction, the chief executive officer now directly owns 650,183 shares in the company, valued at approximately $39,427,097.12. PennyMac Loan Services, LLC PO Box 950002 Fort Worth, TX 76155-9802, PennyMac Loan Services, LLC PO Box 5133 Thousand Oaks, CA 91359-5133, 3043 Townsgate Rd, Suite 200 Westlake Village, CA 91361 818.224.7442. If you have an ad-blocker enabled you may be blocked from proceeding. 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. We also repurchased approximately 1.6 million shares of PFSIs common stock, at an approximate cost of $89.3 million. Payoff-related expenses, which include interest shortfall and recording and release fees related to prepayments, remained elevated but decreased slightly quarter-over-quarter. Our direct lending channels have an outsized impact on production segment earnings, as Dan will discuss later. 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. Net assets under management were down slightly quarter-over-quarter to $2.3 billion. Enter your email address below to get our daily insider buying and selling report. Item 1.01 Entry into a Material Definitive Agreement. Copyright 2023 Surperformance. And for the month of July, we repurchased an additional 2.5 million shares for an approximate cost of $151 million. 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. JMP Securities lowered PennyMac Financial Services from an outperform rating to a market perform rating in a report on Wednesday, January 18th. 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. The Servicing segment offers servicing of originated mortgage loans and execution and management of early buyout transactions. Right now, we realize the importance of home like never before. 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. Similarly, lock volume totaled $4.5 billion, down 21%. These transactions provide PennyMac the additional capacity and liquidity to efficiently execute loss mitigation strategies as sales of these loans to third parties also eliminate the potential for associated margin calls. Good afternoon and welcome to the Second Quarter 2021 Earnings Discussion for PennyMac Financial Services, Inc. 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. 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. 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. Find the best performing Analyst in each sector. 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. 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 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. PennyMac TPO Contact Information Principal Mr. David Spector, President/CEO Customer Contact Mr. David Spector, President/CEO Additional Contact Information Phone Numbers (702). million verified professionals across 35 million companies. 112 S. Lakeview Canyon Rd, Ste. 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. It operates through the following segments: Production, Servicing, and Investment Management. Stanford Kurland, who went from being pushed out of the No. 119504607, 119505929, 119506567, 119506570, 119507419. The stock was sold at an average price of $60.64, for a total value of $1,586,888.16. Servicing advances outstanding decreased to approximately $424 million at June 30 from $437 million at March 31. Total correspondent loan acquisition volume was $46.7 billion, down 9% from the prior quarter and up 56% from the second quarter of 2020. the financials in more detail later on in this discussion. David A. Spector is a businessperson who has been the head of 9 different companies. 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. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. Hedge funds and other institutional investors have recently modified their holdings of the stock. The committed pipeline at January 31 was $3 billion. 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.
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