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. Ill now turn it over to Dan Perotti, Senior Managing Director and Chief Financial Officer to speak to the financial results for the quarter. 3043 Townsgate Rd Ste 200, Westlake Village, CA 91361-3027. Get a breakdown of the different strategies based on detected insider trading activity. 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 . The return on the trade was 60.70%. The Investment Management segment consists of sourcing, performing diligence, bidding and closing investment asset acquisitions, managing correspondent production activities and managing the acquired assets. Government correspondent locks were $19.7 billion in UPB, down 2% from the prior quarter and up 22% from the fourth quarter of 2019. The firm engages in the production and servicing of U.S. residential mortgage loans. PennyMac TPO Contact Information Principal Mr. David Spector, President/CEO Customer Contact Mr. David Spector, President/CEO Additional Contact Information Phone Numbers (702). No P&I advances have been made to date, as prepayment activity continued to sufficiently cover remittance obligations. Pennymac Westlake Village, CA office. David works at Pennymac Loan Services, Llc as Chief Investment Officer. Thank you. The technology based digital marketing platform, coupled with dedicated loan officers and an efficient operating processes, gives PennyMac a strong foundation for continued growth. The price of the stock has decreased by 4.44% since. 130 Westlake Village, CA, 91362 Get Directions. Licensed by the N.J. Department of Banking and Insurance. 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. What is David Spector's role in PennyMac Mortgage? 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. 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. Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world. The stock was sold at an average price of $58.12, for a total value of $741,030.00. The stock was sold at an average price of $60.80, for a total value of $912,000.00. Consumer and broker direct represented 20% of fallout adjusted lock volume in the fourth quarter but accounted for over 70% of segment pretax income. Search over 700 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. And, we continue to enhance our MAC portal, thus improving the ability for borrowers to self-service throughout the entire origination process. 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. In the last year, insiders at the real estate investment trust sold shares 23 times. 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. 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. 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. In our broker direct channel, we are focused on further reducing the length of our loan origination cycle via workflow enhancements and upgrades to our broker portal, POWER. 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. I will review each segments results and then we will touch on our forbearance and servicing advance trends. Earnings per share grew 328% for the year with net income up 319%. Thanks, Andy. | 3 Mrz 2023. 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. I will cover each segment's results and then briefly review our forbearance and servicing advance trends. 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. Pricing margins in the channel decreased sharply, reflecting intense levels of competition between channel leaders. 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. 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. 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%. Get contact details including emails and phone numbers No credit card required. 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. 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. PennyMac remained the largest correspondent aggregator in the U.S. in the fourth quarter. Thank you, Isaac. 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. Equal Housing Opportunity 2023 PennyMac Loan Services, LLC, 3043 Townsgate Rd, Suite 200, Westlake Village, CA 91361, 818-224-7442. {{ userNotificationState.getAlertCount('bell') }}. For the complete insider trading history of PFSI, click here. 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. Our costs vary by channel, ranging from approximately 15 basis points in correspondent to 150 basis points in consumer direct. Speaker: David Spector - Chairman and Chief Executive Officer Thank you Isaac. 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. "I am delighted to announce Doug Jones' election to our. 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. Based on data from MarketBeat.com, the company has a consensus rating of Hold and a consensus target price of $69.50. PennyMac Financial Services, Inc. has a 12-month low of $38.53 and a 12-month high of $73.79. Trade/service marks are the property of PennyMac Loan Services, LLC and/or its subsidiaries or affiliates. While the Pennymac workforce stays. 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. If you have additional questions or would like to speak with a Pennymac representative, please call (800) 777-4001. 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. This was all done while the vast majority of our employees were working from home for most of the year. In the fourth quarter, the pretax income was $234.1 million, a 31% decrease from . This chart shows David Spector's buying and selling at PennyMac Financial Services by year and by quarter. Thank you Isaac. We have also seen a large group of borrowers that reperform and exit forbearance on their own. In July, originations for our consumer direct channel totaled $3.5 billion and locks totaled $5.5 billion. 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. Im proud of the actions we have taken and the dedicated management team across the company that has helped put these plans into action. 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. 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. PennyMac Loan Services, LLC Attention: Correspondence Unit PO Box 514387 Los Angeles, CA 90051-4387, Notice of Error and Information Requests Only. Chief Enterprise Ops Officer Jeffrey Grogin sold 13,521 shares of PFSI stock on 01/04/2021 at the average price of $62.53. The TipRanks Smart Score performance is based on backtested results. GuruFocus has detected 8 Warning Signs with PFSI. PennyMac Financial's owned portfolio reported a prepayment speed of 28.3% in the second quarter, down from 32.6% in the prior quarter. All loan programs subject to borrowers meeting appropriate underwriting conditions. 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. David Spector is currently Chairman of the Board, President and Chief Executive Officer at PennyMac - View - PennyMac org chart The Production segment includes mortgage loan origination, acquisition, and sale activities. North Carolina Permit No. 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. Net assets under management were down slightly quarter-over-quarter to $2.3 billion. Please disable your ad-blocker and refresh. 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. David Spector's most profitable transaction was an Informative Sell of PMT stock on March 22, 2019. The committed pipeline at January 31 was $3 billion. Headquarters. Co-op loans not available. Licensed Mortgage Banker-NYS Department of Financial Services. Posted by Defense World Staff on Mar 3rd, 2023. Texas office: 2201 W. Plano Parkway, Suites 150 and 300, Plano, TX 75075. And finally, PFSIs Board of Directors approved an increase to its stock repurchase authorization from $500 million to $1 billion of outstanding common stock. 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. Thank you, David. This financial performance is driven by the balanced business model in mortgage banking that we have built over the last 13 years. million verified professionals across 35 million companies. I am pleased to note that PFSIs Board of Directors declared a fourth quarter cash dividend of $0.20 per share, representing a 33% increase from the prior quarter. The history of PennyMac Financial was borne out of the Great Financial Crisis, with a desire to help distressed borrowers. 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. Pretax income excluding valuation-related items for the servicing segment was $234.3 million, up 30% from the prior quarter and 499% from the fourth quarter of 2019. PennyMac Financial Services can also be reached via phone at (818) 224-7442 and via email at [emailprotected] Learn More on David A. Spector's contact information. How do I contact David A. Spector? Learn More on David A. Spector's salary. Our goal is to be a trusted financial partner that you can count on as long as you own your home. Segment revenue was $9.7 million, down from $9.8 million in the prior quarter which included gains related to PMT shares owned by PFSI. Lastly, I would like to touch on the trends we are seeing related to forbearance and loss mitigation. the 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. Copyright 2023 Surperformance. The return on the trade was 60.70%. The price of the stock has decreased by 8.12% since. The decrease from the prior quarter was primarily driven by a $76 million decrease in EBO loan-related revenue. So while refinance origination volumes are expected to decline significantly over the next several years as a result of higher interest rates, we believe the outlook for PennyMac Financial remained strong, given our large profitable and growing servicing business, our position as one of the largest producers of purchase money loans in the U.S. and the continued expansion of our direct lending businesses. Thanks, Doug. 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. Our costs vary by channel, ranging from approximately 15 basis points in correspondent to 150 basis points in consumer direct. During 2020 we added over 2,000 employees to the PennyMac team to expand our workforce to more than 6,000. The total sale was $1.7 million. NMLS ID # 35953. 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. 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. 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. The direct lending channels continued to have an outsized impact on PFSIs production earnings in the fourth quarter. This high level of efficiency was largely due to our cloud-based, proprietary servicing system, otherwise known as SSE. As Chairman & CEO of Pennymac Financial Services, Inc, David Spector has a total base salary of $1,000,000 . 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. 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. This outstanding income generated excess capital that we redeployed into increased levels of production, share repurchases, reduction of debt, and increased servicing activity. Main Telephone (818) 224-7442 Primary Address 3043 Townsgate Road Suite 200 Westlake Village, CA 91361 USA Fiscal Close December Founded 2008 Book value per share grew 5% to $54.49 at June 30. Now I'll turn it over to Doug, who will discuss our mortgage banking businesses. 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., a national mortgage lender and servicer, announced Thursday that Doug Jones has joined its board of directors. The estimated net worth of David A. Spector is at least $40.95 million as of March 1st, 2023. The business also recently declared a quarterly dividend, which was paid on Friday, February 24th. Operating expenses were also down quarter-over-quarter as the prior quarter included seasonal accruals of compensation related expenses. Director, 10% Owner Stanford L Kurland sold 31,000 shares of PFSI stock on 12/23/2020 at the average price of $67.19. 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. The firm engages in the production and servicing of U.S. residential mortgage loans. This website may include combined information from PennyMac Financial Services, Inc. ("PFSI") and PennyMac Mortgage Investment Trust ("PMT") collectively Pennymac. We quickly developed a plan to deal with the COVID-19 pandemic and the various work from home orders across the nation. Operating revenue decreased $2 million from the prior quarter driven by declines in earnings on custodial balances. On Monday, December 12th, David Spector sold 12,750 shares of PennyMac Financial Services stock. 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. We encourage investors with any questions to reach out to our Investor Relations team by e-mail or phone. 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. Our direct lending channels have an outsized impact on production segment earnings, as Dan will discuss later. 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. During the last ninety days, David A. Spector has sold $2,498,888.16 in shares of PennyMac Financial Services stock. 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. 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. 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. 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. As our production mix continues to shift towards direct lending, production expenses as a percentage of fallout adjusted locks are expected to trend higher. Backtested results are calculated by the retroactive application of a model constructed on the basis of historical data and based on assumptions integral to the model which may or may not be testable and are subject to losses. Stanford Kurland, who went from being pushed out of the No. Being one of the Find contact details for 700 million professionals. 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. Payoff-related expense, which includes interest shortfall and recording and release fees related to prepayments, remains elevated and increased by $8.3 million quarteroverquarter. And with that, I would like to turn it back to David for some closing remarks. We believe we will continue to increase their respective market positions as we execute on our growth initiatives in each channel. The shares were sold at an average price of $60.80, for a total transaction of $912,000.00. T. Rowe Price Investment Management Inc. now owns 4,992,531 shares of the real estate investment trusts stock worth $282,877,000 after purchasing an additional 256,717 shares during the last quarter. In the fourth quarter, PennyMac Financial delivered net income of 38 As David mentioned earlier PFSIs net income was $452.8 million or diluted earnings per share of $5.97. These technology investments are critical drivers to the growth of our direct lending businesses. Servicing advances outstanding were approximately $454 million at December 31, up from $346 million at September 30, primarily associated with seasonal tax payments. Presenter SpeechMark DeVries Hello. 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. (business & personal). 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.