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. Contact Us: We Are Here to Help You | Pennymac 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. Changes in these assumptions may have a material impact on the backtested returns presented. While the Pennymac workforce stays. Now I'll turn it over to Doug, who will discuss our mortgage banking businesses. David Spector President and Chief Executive Officer Lior Ofir Senior Managing Director & Chief Information Officer Stanford L. Kurland Executive Chairman Amir Pirnia SVP Engineering Pennymac Westlake Village, CA Office | Glassdoor The predominant outcome has been through loan modifications to the borrowers to aid in their recovery. It operates through the following segments: Production, Servicing, and Investment Management. As David mentioned earlier, PFSI's net income was $204.2 million or diluted earnings per share of $2.94. Pricing margins in the channel decreased sharply, reflecting intense levels of competition between channel leaders. PennyMac Financial Services, Inc. (PFSI) CEO David Spector on Q2 2021 The technology based digital marketing platform, coupled with dedicated loan officers and an efficient operating processes, gives PennyMac a strong foundation for continued growth. Broker originations in July totaled $1.2 billion and locks totaled $1.7 billion. Earnings per share grew 328% for the year with net income up 319%. David Spector joined PennyMac in 2008. Trade/service marks are the property of PennyMac Loan Services, LLC and/or its subsidiaries or affiliates. So, from our home to yours, thank you! 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.). All loan programs subject to borrowers meeting appropriate underwriting conditions. Director, 10% Owner Stanford L Kurland sold 31,000 shares of PFSI stock on 01/07/2021 at the average price of $60.12. 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,. 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. If youre new to trading, then youve probably heard the wrong thing about optionsthat theyre risky, unpredictable, or difficult. GuruFocus has detected 8 Warning Signs with PFSI. We were quick to step up and aid borrowers as the COVID-19 pandemic spread across the U.S., affecting many of our customers. Payoff-related expense, which includes interest shortfall and recording and release fees related to prepayments, remains elevated and increased by $8.3 million quarteroverquarter. 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. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. Similar Profiles. Meet our Smart Portfolio. The dividend yield of PennyMac Financial Services Inc stocks is 0.93%. 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. Some products may not be available in all states. Good afternoon, and welcome to the Fourth Quarter and Full-Year 2020 Earnings discussion for PennyMac Financial Services, Inc. Learn More on David A. Spector's trading history. We are growing our best-in class tools and solutions we provide our brokers with to further enhance their self-service capabilities. 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. David Spector's most profitable transaction was an Informative Sell of PMT stock on March 22, 2019. PennyMac Founder Stanford Kurland Passes Away - MBA Newslink The origination market continues to be strong on a historical basis as mortgage rates have recently returned to near record lows. Stanford Kurland. Following the transaction, the chief executive officer now directly owns 650,183 shares in the company, valued at approximately $39,427,097.12. And I'm pleased to be joined by PennyMac Financial Services CEO,. The Servicing segment offers servicing of originated mortgage loans and execution and management of early buyout transactions. During the last ninety days, David A. Spector has sold $2,498,888.16 in shares of PennyMac Financial Services stock. Revenue per fallout adjusted lock for PFSIs own account was 217 basis points in the fourth quarter, down slightly from 236 basis points in the third quarter. Company profile for PennyMac Financial Services Inc. including key executives, insider trading, ownership, revenue and average growth rates. What is the average return per transaction made by David Spector? Operating revenue decreased $2 million from the prior quarter driven by declines in earnings on custodial balances. This high level of efficiency was largely due to our cloud-based, proprietary servicing system, otherwise known as SSE. 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. Main Telephone (818) 224-7442 Primary Address 3043 Townsgate Road Suite 200 Westlake Village, CA 91361 USA Fiscal Close December Founded 2008 Thank you, Dan. 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 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. The corporate mailing address for Mr. Spector and other PennyMac Financial Services executives is 3043 TOWNSGATE ROAD, WESTLAKE VILLAGE CA, 91361. 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. Equal Housing Opportunity 2023 PennyMac Loan Services, LLC, 3043 Townsgate Rd, Suite 200, Westlake Village, CA 91361, 818-224-7442. 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. These increases were primarily driven by continued loss mitigation activities related to COVID-19. While 2020 was a record, we have a long track record of strong performance. Servicing advances outstanding decreased to approximately $424 million at June 30 from $437 million at March 31. Pennymac Financial Services' profit sinks 31% in Q4 The most recent insider tranaction occured on March, 1st when insider Steven Richard Bailey sold 13,604 shares worth more than $825,762.80. Chief Enterprise Ops Officer Jeffrey Grogin sold 13,521 shares of PFSI stock on 01/04/2021 at the average price of $62.53. Revenue per fallout-adjusted lock was 343 basis points in the quarter, a decrease from the first quarter. 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. Item 1.01 Entry into a Material Definitive Agreement. Years in Business: 14. Business Started: 3/25/2008. Before we begin, let me remind you that our discussion contains forwardlooking statements that are subject to risks identified on Slide 2 that could cause our actual results to differ materially, as well as certain non-GAAP measures that have been reconciled to their GAAP equivalent. The shares were sold at an average price of $60.64, for a total value of $1,586,888.16. PennyMac Mortgage Investment Trust (PMT) CEO David Spector on Q1 2021 The company has a current ratio of 0.55, a quick ratio of 0.55 and a debt-to-equity ratio of 1.46. PennyMac Financial delivered another outstanding quarter of operational and financial performance, despite the increased volatility in the mortgage market. Pennymac notches a profitable Q1 due to servicing segment Revenue per fallout-adjusted government lock in the second quarter was 30 basis points, down from 37 basis points in the prior quarter. 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). 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 achieved record production across all channels, with increased market penetration in our higher margin direct lending channels. The shares were sold at an average price of $60.64, for a total transaction of $1,586,888.16. However, he will become a special advisor to David Spector, chairman and chief . Backtested performance is developed with the benefit of hindsight and has inherent limitations. Finally, Maverick Capital Ltd. raised its position in shares of PennyMac Financial Services by 33.5% during the 4th quarter. For servicing on your existing mortgage account with Pennymac. 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. Dans son rle . And with that, I would like to turn it back to David for some closing remarks. Wells Fargo & Company raised PennyMac Financial Services from an equal weight rating to an overweight rating and lifted their price objective for the company from $54.00 to $75.00 in a report on Tuesday, December 6th. Good morning and thank you for joining us. 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. If you have additional questions or would like to speak with a Pennymac representative, please call (800) 777-4001. And finally, PMT, the investment vehicle that PFSI manages was able to largely preserve its book value in 2020 which led to solid results in PFSIs Investment Management segment. David Spector's role in PennyMac Mortgage is Chairman & CEO, Director. PennyMac | Better Business Bureau Profile Massachusetts Mortgage Lender License # MC35953. 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. 292 Pennymac reviews in Los Angeles, CA. Similarly, lock volume totaled $4.5 billion, down 21%. Doug Jones Joins PennyMac Financial Services Board - NMP 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. David Spector - Chairman & Chief Executive Officer, PennyMac Loan Co-op loans not available. Pennymac Cares | Thank You from President & CEO, David Spector David Spector - Chief Investment Officer - Penny Mac | LinkedIn David works at Pennymac Loan Services, Llc as Chief Investment Officer. 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. 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. the company. David A. Spector is also on the board of 7 other companies. David Spector - Chairman and Chief . What is David Spector's role in PennyMac Mortgage? Find the best performing Analyst in each sector. 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. PennyMac Financial Services, Inc. (PFSI) CEO David Spector on Q4 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%. Warning! Director, 10% Owner Stanford L Kurland sold 31,000 shares of PFSI stock on 12/23/2020 at the average price of $67.19. 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. As you will see on slide 10, we provide a breakdown of the revenue contribution from each of PFSI's loan production channels, net of loan origination expenses, including the fulfillment fees received from PMT for conventional correspondent loans. PennyMac Financial Services Inc had annual average EBITDA growth of 35.90% over the past five years. approve of David Spector's performance Founded 2008 Company size 5,001 to 10,000 Revenue $1B to $5B (USD) Industry Banking & Lending Headquarters Westlake Village, CA Link PENNYMAC website Pennymac (NMLS #35953) is a top national mortgage lender with over 4 million lifetime customers. 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. 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%. This brings the total repurchases year-to-date to approximately $600 million. 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. While our servicing group was aiding borrowers, our corporate groups were ensuring our capital and liquidity were protected. GuruFocus has detected 5 severe warning signs with PennyMac Financial Services Inc. . 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. 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. 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. During 2020 we added over 2,000 employees to the PennyMac team to expand our workforce to more than 6,000. 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. Thank you, David. Headquarters. David Spector received compensation valued at about $12,375,328 in 2020 after becoming . Our consumer direct lending division produced record origination and lock volumes again despite a smaller origination market in the second quarter. JMP Securities lowered PennyMac Financial Services from an outperform rating to a market perform rating in a report on Wednesday, January 18th. 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. Ultimately, we believe for these reasons, PennyMac will continue its market share growth as a channel leader. Additionally, PFSI's Board of Directors approved an increase to its stock repurchase authorization from $1 billion to $2 billion. Thanks, Andy. I'll now turn it over to Dan, who will speak to the financial results for the quarter. Thank you. Certain assumptions have been made for modeling purposes and are unlikely to be realized. At PennyMac, our commitment to our customers doesnt end at closing. Pennymac Loan Services LLC | Better Business Bureau Profile As David mentioned earlier PFSIs net income was $452.8 million or diluted earnings per share of $5.97. We also remain very active repurchasing shares driven by our medium-term expectations for PFSI's return on equity. 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. Texas office: 2201 W. Plano Parkway, Suites 150 and 300, Plano, TX 75075. PennyMac, Homepoint and other lenders announce new leaders | National Minnesota: This is not an offer to enter into an agreement and an offer may only be made pursuant to Minn. Stat. What was David Spector's most profitable transaction? Our goal is to be a trusted financial partner that you can count on as long as you own your home. Our costs vary by channel, ranging from approximately 15 basis points in correspondent to 150 basis points in consumer direct. Before we begin, let me remind you that our discussion contains forward-looking statements that are subject to risks identified on slide two that could cause our actual results to differ materially as well as non-GAAP measures that have been reconciled to their GAAP equivalent in our earnings presentation. Get notified the next time David A. Spector buys or sells PennyMac Financial Services stock. Posted by Defense World Staff on Mar 3rd, 2023. 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. 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. The return on the trade was 60.70%. The ex-dividend date was Monday, February 13th. The barriers to entry for these businesses that require scale for success provide PFSI a strategic advantage over our competitors. In total, loan acquisition and origination volumes were $61 billion in the second quarter. On Monday, December 12th, David Spector sold 12,750 shares of PennyMac Financial Services stock. The stock was sold at an average price of $60.64, for a total value of $1,586,888.16. In the fourth quarter, PennyMac Financial delivered net income of 38 As you can see on slide 11, approximately $37 billion of portfolio runoff in the second quarter was more than offset by the addition of $61 billion in total production. 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. Thanks, Doug. The average return per transaction made by David Spector is 3.50%. Total correspondent loan acquisition volume was $46.7 billion, down 9% from the prior quarter and up 56% from the second quarter of 2020. Pennymac Cares | Thank You from President & CEO, David Spector 108,081 views Apr 21, 2020 Right now, we realize the importance of home like never before. Right now, we realize the importance of home like never before. 67.03% of the stock is currently owned by institutional investors and hedge funds. Book value per share grew 5% to $54.49 at June 30. David A Spector, Pennymac Mortgage Investment: Profile and Biography This represents a $0.80 dividend on an annualized basis and a dividend yield of 1.29%. 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. 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. This growth will be crucial in further expanding our direct lending channels and supporting our growing servicing infrastructure. 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. Many of these employees were on-boarded virtually and have begun their PennyMac careers working from home. Thank you for sharing your valuable opinion. This quarter, we increased meaningful the number of partnerships we have with these third parties and also expanded the volumes of sales to our existing partners, driving the quarterly increase in the EBO loan volume I mentioned earlier. 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. This balanced business helps generate strong results across a variety of market and rate environments. 2023-03-02 | NYSE:PFSI | Press Release | PennyMac Financial Services Inc. On Monday, February 27th, David Spector sold 15,000 shares of PennyMac Financial Services stock. View detailed PFSI description & address. And with that, I would like to turn it back to David for some closing remarks. The company has a market cap of $3.09 billion, a price-to-earnings ratio of 7.36 and a beta of 1.49. 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. I am Barclays' consumer finance analyst, Mark DeVries. 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. January 25, 2021. 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. 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. The company was founded by Stanford L. Kurland on July 2, 2008 and is headquartered in Westlake Village, CA. This was all done while the vast majority of our employees were working from home for most of the year. PennyMac Financial Services' insider roster includes Anne Mccallion (Director), Farhad Nanji (Director), and David Spector (CEO). State of Wyoming raised its position in shares of PennyMac Financial Services by 9.3% during the 4th quarter. 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. How can I follow the stock ratings of top corporate insiders? You will be contacted by a representative that will help answer any inquiries you have. Advances are expected to continue increasing over the next 6 to 12 months. 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. David Spector - Chief Investment Officer at Pennymac Loan Services, Llc 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. Hedging and other gains of over $943 million largely offset an MSR fair value decrease of over $1.1 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. 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. Lastly, our broker direct channel continued its impressive growth in both locked and funded volumes as we increase the number of approved brokers and our presence in the channel grows. Arizona Mortgage Banker License # 0911088. Sign up for a free account. The direct lending channels have an outsized impact on PFSI's production earnings, as Andy mentioned earlier. free lookups / month. Susquehanna Fundamental Investments LLC raised its position in shares of PennyMac Financial Services by 24.8% during the 4th quarter. 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. This grew our servicing portfolio to over $426 billion in UPB even with elevated prepayment speeds.