Advances are expected to continue increasing over the next 6 to 12 months. Main Telephone (818) 224-7442 Primary Address 3043 Townsgate Road Suite 200 Westlake Village, CA 91361 USA Fiscal Close December Founded 2008 Approve of CEO. Similarly, lock volume totaled $4.5 billion, down 21%. 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. You can see the results of our hedging strategy in the full year view on slide 19. PennyMac Financial Services can also be reached via phone at (818) 224-7442 and via email at pfsi_ir@pnmac.com. 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. We were quick to step up and aid borrowers as the COVID-19 pandemic spread across the U.S., affecting many of our customers. We estimate that our market share in the channel has increased meaningfully since last year, and we now account for approximately 1.3% of total originations in the channel. million verified professionals across 35 million companies. 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. In order to protect the value of our MSR asset, we utilize a comprehensive hedging strategy. Our costs vary by channel, ranging from approximately 15 basis points in correspondent to 150 basis points in consumer direct. Some products may not be available in all states. 2 job at Countrywide Financial to founding the pair of publicly traded companies known as PennyMac, has died at 68. Mr. Kurland was 68. NMLS ID # 35953. Trade/service marks are the property of PennyMac Loan Services, LLC and/or its subsidiaries or affiliates. David Spector joined PennyMac in 2008. 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. As David mentioned earlier, we sold $3.4 billion in UPB of EBO loans to third-party whole loan investors, up significantly from last quarter. All rights reserved. As you will see on slide 20, we provide a breakdown of the revenue contribution from each of PFSIs loan production channels, net of loan origination expenses, including the fulfillment fees received from PMT for conventional correspondent loans. Business Incorporated: Specifically, backtested results do not reflect actual trading or the effect of material economic and market factors on the decision-making process. 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. Payoff-related expenses, which include interest shortfall and recording and release fees related to prepayments, remained elevated but decreased slightly quarter-over-quarter. Many of these employees were on-boarded virtually and have begun their PennyMac careers working from home. The price of the stock has decreased by 4.44% since. President & CEO David Spector sold 30,000 shares of PFSI stock on 01/12/2021 at the average price of $57.43. David Spector's most profitable transaction was an Informative Sell of PMT stock on March 22, 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. Revenue per fallout-adjusted lock was 71 basis points, down from 140 basis points in the prior quarter. In the fourth quarter, the pretax income was $234.1 million, a 31% decrease from . Pennymac Westlake Village, CA office. However, he will become a special advisor to David Spector, chairman and chief . 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%. Get a breakdown of the different strategies based on detected insider trading activity. As the CEO of PennyMac Financial Services, Inc., Mr. Spector earned a total compensation package of $13,575,224.00 in 2021. Thank you, David. And we believe the role of a well capitalized correspondent aggregator like PennyMac will be increasingly important over time. 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. PennyMac Financial Services, Inc. (NYSE:PFSI) Q2 2021 Earnings Conference Call August 5, 2021 5:05 PM ET, Isaac Garden - Vice President, Investor Relations, David Spector - Chairman & Chief Executive Officer, Andy Chang - Senior Managing Director & Chief Operating Officer, Doug Jones - President & Chief Mortgage Banking Officer, Dan Perotti - Senior Managing Director & Chief Financial Officer. Purchase originations in 2021 are forecasted to increase 10% year-over-year while refinance originations are expected to decrease but remain elevated relative to historical norms. 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. Sign up for a free account. On Monday, February 27th, David Spector sold 15,000 shares of PennyMac Financial Services stock. This brings the total repurchases year-to-date to approximately $600 million. The stock was sold at an average price of $60.80, for a total value of $912,000.00. 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. PennyMac Financial reported strong earnings in the fourth quarter driven by core production and servicing results. 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. PennyMac Financial's owned portfolio reported a prepayment speed of 28.3% in the second quarter, down from 32.6% in the prior 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. 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. David Spectors most profitable transaction was an Informative Sell of PMT stock on March 22, 2019. As David mentioned earlier, PFSI's net income was $204.2 million or diluted earnings per share of $2.94. Origination volumes totaled $10.7 billion in UPB, while interest rate lock commitments totaled $14.1 billion. Learn More about insider trades at PennyMac Financial Services. Thanks, Doug. We have long-standing partnerships with several EBO loan investors, with a program in place to buy delinquent Ginnie Mae loans out of securitizations and sell them to these third-party investors. We'll review your feedback and if you chose to be contacted, we will respond within 1-2 business days. David Spector's role in PennyMac Mortgage is Chairman & CEO, Director. Isaac Garden - Investor Relations. 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. 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 also remain very active repurchasing shares driven by our medium-term expectations for PFSI's return on equity. Interest rate lock volume was $5.7 billion in UPB, up 4% from the third quarter and 234% from the fourth quarter of 2019. 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. Information on this page was last updated on 3/1/2023. Actual performance may differ significantly from backtested performance. Other restrictions apply. Learn More on PennyMac Financial Services' active insiders. On Monday, December 12th, David Spector sold 12,750 shares of PennyMac Financial Services stock. PFSI's Board of Directors also declared a second quarter cash dividend of $0.20 per share. Please disable your ad-blocker and refresh. GuruFocus has detected 8 Warning Signs with PFSI. The fair value of our MSR decreased modestly in the fourth quarter, driven by higher-than-expected prepayments, increased projections for short-term prepayments and elevated levels of early buyout activity. The price of the stock has increased by 0.03% since. 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. #PennymacCaresVisit PENNYMAC.COM for details about how were assisting our family of customers during the COVID-19 crisis. Copyright 2023 Surperformance. Senior Managing Director and Chief Financial Officer, will discuss our financial performance in more detail later on in his discussion. We believe we will continue to increase their respective market positions as we execute on our growth initiatives in each channel. State of Wyoming raised its position in shares of PennyMac Financial Services by 9.3% during the 4th quarter. 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, broker direct originations totaled $4.5 billion in UPB in the fourth quarter, up 28% from the prior quarter and 215% percent from the fourth quarter of 2019. Thank you Isaac. We also repurchased approximately 1.6 million shares of PFSIs common stock, at an approximate cost of $89.3 million. Co-op loans not available. In January, our broker direct originations totaled $1.4 billion in UPB, and locks totaled $2.1 billion. 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. It operates through the following segments: Production, Servicing, and Investment Management. His family and PennyMac, which announced his passing, said he died from complications . Thanks, Andy. Finally, Maverick Capital Ltd. raised its position in shares of PennyMac Financial Services by 33.5% during the 4th quarter. Dans son rle . Additionally, we believe FHFA's elimination of the adverse market refinance fee has resulted in a larger population of loans that would benefit from a refinance at today's lower rates, further supporting the origination market. | 3 Mrz 2023. The ex-dividend date was Monday, February 13th. The slides that accompany this discussion are available on PennyMac Financial's website at ir.pennymacfinancial.com. Search over 700 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. PennyMac Financial Services Inc provides mortgage loans to customers in the United States. This hiring mostly occurred in three key areas, servicing, direct lending and fulfillment services. Our goal is to be a trusted financial partner that you can count on as long as you own your home. As we look at 2021 we believe the market environment provides PFSI a good opportunity for continued elevated financial performance. On Wednesday, March 1st, David Spector sold 26,169 shares of PennyMac Financial Services stock. David is based out of Agoura Hills, California, United States and works in the Financial Services industry. 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. The company has a current ratio of 0.55, a quick ratio of 0.55 and a debt-to-equity ratio of 1.46. With PFSIs historical focus on purchase market originations combined with our large and growing servicing portfolio, we believe we are well-positioned to successfully grow share in all three of our production channels, driving an increase in our overall market position. 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. What is the average return per transaction made by David Spector? PennyMac Financial Services Inc had annual average EBITDA growth of 35.90% over the past five years. 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. Now I'll turn it over to Doug, who will discuss our mortgage banking businesses. Get contact details including emails and phone numbers However, margins in this channel remain attractive. 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. Equal Housing Opportunity 2023 PennyMac Loan Services, LLC, 3043 Townsgate Rd, Suite 200, Westlake Village, CA 91361, 818-224-7442. Massachusetts Mortgage Lender License # MC35953. Item 1.01 Entry into a Material Definitive Agreement. These businesses provide PFSI a stable foundation through their low cost structures while our scaled fulfillment operation enables more aggressive growth in our higher margin direct lending channels. The average return per transaction made by David Spector is 3.50%. PennyMac Financial delivered strong fourth quarter results, marking the end to a record year. 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. 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 shares were sold at an average price of $60.64, for a total value of $1,586,888.16. 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. Learn More on David A. Spector's trading history. We quickly developed a plan to deal with the COVID-19 pandemic and the various work from home orders across the nation. Lastly, I would like to touch on the trends we are seeing related to forbearance and loss mitigation. 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. Thank you. 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 Loan Services, LLC Attention: Correspondence Unit PO Box 514387 Los Angeles, CA 90051-4387, Notice of Error and Information Requests Only. The return on the trade was 60.70%. 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. Russia's war on Ukraine latest: Putin casts war as battle for nation's survival, India FM Jaishankar says Soros dangerous, debate needed on democracy, Buffett's Berkshire profit falls on investments, currencies, Bill Gates buys Heineken stake, despite saying he's 'not a big beer drinker', Elon Musk recruits team to develop OpenAI rival - The Information, Hedge fund manager Chris Hohn demands Airbus drop Atos deal - letter, Elon Musk's challenge: Stay ahead of the competition, ISS urges Apple shareholders to vote for CEO Tim Cook, other execs' pay packages, Elon Musk accuses media of racism after newspapers drop 'Dilbert' cartoon, French media billionaire Niel fails with bid for TNT television frequence - Arcom, Private National Mortgage Acceptance Co. LLC. Lastly, originations in our broker direct channel totaled $4 billion in UPB, down 22% from the prior quarter. The stock was sold at an average price of $58.12, for a total value of $741,030.00. 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. These strong production volumes again led to servicing portfolio growth despite continued elevated prepayment activity. Hedging and related gains totaled $91 million. Pennymac's servicing portfolio grew to $518 billion in unpaid balance, up 2% from Dec. 31, 2021, and 16% from March 31, 2021, led by production volumes which more than offset prepayment activity,. In July, originations for our consumer direct channel totaled $3.5 billion and locks totaled $5.5 billion. Total correspondent loan acquisition volume was $46.7 billion, down 9% from the prior quarter and up 56% from the second quarter of 2020. Headquarters. Good afternoon and welcome to the Second Quarter 2021 Earnings Discussion for PennyMac Financial Services, Inc. No cash balance or cash flow is included in the calculation. David Spector also recently made the following trade(s): PFSI stock opened at $61.78 on Friday. What was David Spectors latest transaction? .This article first appeared on GuruFocus. 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. While our employee base grew by 60% during the year, our production volumes grew by 67% and our earnings increased by 328%. Operating expenses were also down quarter-over-quarter as the prior quarter included seasonal accruals of compensation related expenses. In order to protect the value of our MSR asset we utilize a comprehensive hedging strategy. During the last ninety days, David A. Spector has sold $2,498,888.16 in shares of PennyMac Financial Services stock. While 2020 was a record, we have a long track record of strong performance. No credit card required. These returns have led to a 29% compounded annual growth rate in our book value per share since our IPO. Production segment pretax income was $244.4 million, down 33% from the prior quarter and 55% from the second quarter of 2020. 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. The committed pipeline at January 31 was $3 billion. 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While Stan had retired from day-to-day responsibilities at PennyMac, he remained a trusted advisor and dear friend. David A. Spector Age : 59 Public asset : 66,368,555 USD Linked companies : PennyMac Financial Services, Inc. - PennyMac Mortgage Investment Trust Summary David A. Spector is a businessperson who has been the head of 9 different companies. 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. Download the Pennymac Mobile app from the App Store. 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 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. He previously served as Chief Correspondent Lending Officer and has been a member of the company's executive management team since 2011. Thank you, David. Thank you. While such a market would be smaller than 2020, it would represent a large origination market by historical standards. Backtested performance is developed with the benefit of hindsight and has inherent limitations. Susquehanna Fundamental Investments LLC now owns 85,385 shares of the real estate investment trusts stock worth $4,838,000 after purchasing an additional 16,980 shares during the last quarter. This chart shows David Spector's buying and selling at PennyMac Financial Services by year and by quarter. And I'm pleased to be joined by PennyMac Financial Services CEO,. Enter your email address below to get our daily insider buying and selling report. 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. 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. 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. This financial performance is driven by the balanced business model in mortgage banking that we have built over the last 13 years. 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.