We achieved record production across all channels, with increased market penetration in our higher margin direct lending channels. Right now, we realize the importance of home like never before. 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. A number of research firms recently issued reports on PFSI. In total, these strong acquisition and origination volumes continue to drive the organic growth of our servicing portfolio despite elevated prepayment activity. What was David Spector's most profitable transaction? 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. 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. 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%. David Spector latest transaction was an Uninformative Buy of . Ready to apply or complete your application? All rights reserved. View open jobs at this location. 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. The stock was sold at an average price of $58.12, for a total value of $741,030.00. We are growing our best-in class tools and solutions we provide our brokers with to further enhance their self-service capabilities. This concludes PennyMac Financial Services, Inc.s fourth quarter earnings discussion. 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. 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. 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. He previously served as Chief Correspondent Lending Officer and has been a member of the company's executive management team since 2011. Production revenue margins declined from the prior quarter and revenue per fallout-adjusted lock for PFSI's own account was 154 basis points in the second quarter, down from 176 basis points in the first quarter of 2021. Net income in the fourth quarter was the second highest in the history of. Advances are expected to continue increasing over the next 6 to 12 months. Schonfeld Strategic Advisors LLC raised its position in shares of PennyMac Financial Services by 822.2% during the 4th 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. Information on this page was last updated on 3/1/2023. As David mentioned earlier PFSIs net income was $452.8 million or diluted earnings per share of $5.97. 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. Earnings per share grew 328% for the year with net income up 319%. The committed pipeline at January 31 was $7.9 billion. Thank you, Dan. Lastly, originations in our broker direct channel totaled $4 billion in UPB, down 22% from the prior quarter. He currently serves as a senior advisor to TPG Capital, a global private investment firm, and . 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. We encourage investors with any questions to reach out to our Investor Relations team by e-mail or phone. Other restrictions apply. Net income was $204 million or diluted earnings per share of $2.94, representing an annualized return on equity of 23%. Thank you. During 2020 we added over 2,000 employees to the PennyMac team to expand our workforce to more than 6,000. Servicing advances outstanding decreased to approximately $424 million at June 30 from $437 million at March 31. If you're not automatically redirected, please click here. This outstanding income generated excess capital that we redeployed into increased levels of production, share repurchases, reduction of debt, and increased servicing activity. 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. 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. If you have an ad-blocker enabled you may be blocked from proceeding. Thank you for sharing your valuable opinion. The percentage of profitable transactions made by David Spector is 44%. 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. Ill now turn it over to Dan Perotti, Senior Managing Director and Chief Financial Officer to speak to the financial results for the quarter. Ultimately, we believe for these reasons, PennyMac will continue its market share growth as a channel leader. Thank you. 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. I'll now turn it over to Dan, who will speak to the financial results for the quarter. PennyMac Financial Services Inc., a national mortgage lender and servicer, announced Thursday that Doug Jones has joined its board of directors. Chang (pictured), who has been with PennyMac since 2008, will step down from his roles at the end of the year. Pennymac's state licenses and important notices. Search over 700 The price of the stock has increased by 0.03% since. 2 job at Countrywide Financial to founding the pair of publicly traded companies known as PennyMac, has died at 68. 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. Thanks, Andy. PennyMac Financial Servicess payout ratio is 9.54%. GuruFocus has detected 8 Warning Signs with PFSI. Tower Research Capital LLC TRC Increases Stake in Centrus Energy Corp. Tower Research Capital LLC TRC Boosts Stock Position in Centrus Energy Corp. UBS Group AG Increases Position in Northern Oil and Gas, Inc. Tower Research Capital LLC TRC Increases Position in ABB Ltd (NYSE:ABB), Tower Research Capital LLC TRC Has $254,000 Holdings in Daqo New Energy Corp. (NYSE:DQ), ABB Ltd (NYSE:ABB) Shares Bought by Tower Research Capital LLC TRC, Tower Research Capital LLC TRC Increases Stake in Centrus Energy Corp. (NYSEAMERICAN:LEU), Tower Research Capital LLC TRC Boosts Stock Position in Centrus Energy Corp. (NYSEAMERICAN:LEU), UBS Group AG Increases Position in Northern Oil and Gas, Inc. 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(NASDAQ:MDRX) Shares Bought by Tower Research Capital LLC TRC, UBS Group AG Has $3.26 Million Stock Holdings in Delek Logistics Partners, LP (NYSE:DKL), Tower Research Capital LLC TRC Decreases Stake in Westamerica Bancorporation (NASDAQ:WABC), Tower Research Capital LLC TRC Grows Stock Holdings in Barnes Group Inc. (NYSE:B), Woodside Energy Group Ltd (OTCMKTS:WOPEY) Shares Sold by UBS Group AG. 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. Learn More on David A. Spector's trading history. Thanks, Andy. On Monday, February 27th, David Spector sold 15,000 shares of PennyMac Financial Services stock. Production segment pretax income was $244.4 million, down 33% from the prior quarter and 55% from the second quarter of 2020. Broker originations in July totaled $1.2 billion and locks totaled $1.7 billion. If you have an ad-blocker enabled you may be blocked from proceeding. Isaac Garden - Investor Relations. Get a breakdown of the different strategies based on detected insider trading activity. In January, our correspondent acquisitions remained strong, with $17.9 billion in UPB of acquisitions and lock volume of $17.8 billion. Good morning and thank you for joining us. As Chairman & CEO of Pennymac Financial Services, Inc, David Spector has a total base salary of $1,000,000 . 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. Four analysts have rated the stock with a hold rating and three have assigned a buy rating to the companys stock. The company has a current ratio of 0.55, a quick ratio of 0.55 and a debt-to-equity ratio of 1.46. The average return per transaction made by David Spector is 3.50%. Learn More on David A. Spector's contact information. 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. Consumer and broker direct represented 20% of fallout adjusted lock volume in the fourth quarter but accounted for over 70% of segment pretax income. Finally, our Mortgage Fulfillment Division is making enhancements to further automate and improve the production and distribution of loan documents. 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. What was David Spectors latest transaction? Thanks, Doug. Learn More about David A. Spector's net worth. Arizona Mortgage Banker License # 0911088. Mr. Kurland was 68. Jones brings more than 25 years of financial services industry experience to PennyMac Financial Services. 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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. In total, loan acquisition and origination volumes were $61 billion in the second quarter. What is David Spector's role in PennyMac Mortgage? For licensing information, go to: www.nmlsconsumeraccess.org. Our costs vary by channel, ranging from approximately 15 basis points in correspondent to 150 basis points in consumer direct. See what top analysts say about your stocks. Minnesota: This is not an offer to enter into an agreement and an offer may only be made pursuant to Minn. Stat. This represents a $0.80 dividend on an annualized basis and a dividend yield of 1.29%. Following the transaction, the chief executive officer now directly owns 650,183 shares in the company, valued at approximately $39,427,097.12. The price of the stock has decreased by 8.12% since. Follow them so you never miss a recommendation. Colorado office: 5500 South Quebec Street, Suite 260 Greenwood Village, CO 80111, (877) 215-2552. Now I'll turn it over to Doug, who will discuss our mortgage banking businesses. 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 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. The Big Take is the very best of Bloomberg's in-depth, original reporting from around the globe every day. Total correspondent loan acquisition volume was $46.7 billion, down 9% from the prior quarter and up 56% from the second quarter of 2020. Thank you. (03-2023). Payoff-related expense, which includes interest shortfall and recording and release fees related to prepayments, remains elevated and increased by $8.3 million quarteroverquarter. David A. Spector has been President and Chief Executive Officer of PennyMac Financial Services, Inc. (NYSE: PFSI) since January 2017, and he has been a member of PennyMac Financials board of directors since the companys formation in January 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. While the Pennymac workforce stays. And since the beginning of 2020, we have now repurchased over 18.5 million shares or approximately 24% of PFSI's common shares outstanding. Learn More on David A. Spector's trading history. 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. 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. 130 Westlake Village, CA, 91362 Get Directions. January 25, 2021. 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. 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. 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. 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. Similarly, new customer acquisition or non-portfolio interest rate lock commitments were $1.5 billion, essentially unchanged from the prior quarter and up from $274 million in the second quarter of 2020. Hedge funds and other institutional investors have recently modified their holdings of the stock. Approve of CEO. In January, our consumer direct originations totaled $3.1 billion in UPB and locks totaled $4.4 billion. Net assets under management totaled $2.3 billion as of December 31, up 1% from September 30. 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.