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. In order to protect the value of our MSR asset, we utilize a comprehensive hedging strategy. These increases were primarily driven by continued loss mitigation activities related to COVID-19. Additionally, PFSI's Board of Directors approved an increase to its stock repurchase authorization from $1 billion to $2 billion. View David Spector's email address (d*****@pennym***.com) and phone number. Many of these employees were on-boarded virtually and have begun their PennyMac careers working from home. 2 job at Countrywide Financial to founding the pair of publicly traded companies known as PennyMac, has died at 68. Approve of CEO. David Spector - Chairman and Chief . On Wednesday, March 1st, David Spector sold 26,169 shares of PennyMac Financial Services stock. 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. Stockholders of record on Tuesday, February 14th were given a dividend of $0.20 per share. These technology investments are critical drivers to the growth of our direct lending businesses. Main Telephone (818) 224-7442 Primary Address 3043 Townsgate Road Suite 200 Westlake Village, CA 91361 USA Fiscal Close December Founded 2008 And we ended the quarter with a servicing portfolio of $473 billion in unpaid principal balance, approximately 4% of all residential mortgage debt in the United States. PennyMac CEO David Spector to serve as chairmen of its mortgage REIT, financial services The CEO of both PennyMac companies, David Spector (pictured), has added the chairman's title, filling the vacancies created by the death of founder Stanford Kurland. PennyMac. The percentage of profitable transactions made by David Spector is 44%. Thank you, Dan. Up to 5 As David mentioned earlier, PFSI's net income was $204.2 million or diluted earnings per share of $2.94. 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. Thank you, David. The committed pipeline at January 31 was $7.9 billion. The return on the trade was 60.70%. Previously, Mr. Spector served as PennyMac Financials President and Chief Operating Officer. 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. 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. 47.206 (3) & (4). DO NOT SEND PAYMENTS TO THIS ADDRESS. 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. For licensing information, go to: www.nmlsconsumeraccess.org. Based on data from MarketBeat.com, the company has a consensus rating of Hold and a consensus target price of $69.50. 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. All rights reserved. 112 S. Lakeview Canyon Rd, Ste. Actual performance may differ significantly from backtested performance. During the last ninety days, David A. Spector has sold $2,498,888.16 in shares of PennyMac Financial Services stock. This concludes PennyMac Financial Services, Inc.s fourth quarter earnings discussion. BBB File Opened: 2/5/2015. 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. Now Ill turn it over to Doug Jones, PFSIs Senior Managing Director and Chief Mortgage Banking Officer to provide you some more details on our mortgage banking businesses. As Chairman & CEO of Pennymac Financial Services, Inc, David Spector has a total base salary of $1,000,000 . 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. Operating expenses were also down quarter-over-quarter as the prior quarter included seasonal accruals of compensation related expenses. As a management team, we are committed to putting the health and safety of our team members at the heart of our decisions. Each of our business segments performed well during the fourth quarter as the continued low interest rate environment drove record production volumes across all of our channels. Our costs vary by channel, ranging from approximately 15 basis points in correspondent to 150 basis points in consumer direct. While 2020 was a record, we have a long track record of strong performance. So, from our home to yours, thank you! Operating revenue decreased $2 million from the prior quarter driven by declines in earnings on custodial balances. The number of approved brokers totaled 1,574, up 11% over the end of the third quarter. Colorado office: 5500 South Quebec Street, Suite 260 Greenwood Village, CO 80111, (877) 215-2552. 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 balanced business helps generate strong results across a variety of market and rate environments. Our direct lending channels have an outsized impact on production segment earnings, as Dan will discuss later. The price of the stock has decreased by 4.44% since. 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. JMP Securities lowered PennyMac Financial Services from an outperform rating to a market perform rating in a report on Wednesday, January 18th. (business & personal). Schonfeld Strategic Advisors LLC raised its position in shares of PennyMac Financial Services by 822.2% during the 4th quarter. 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. Revenue per fallout-adjusted lock was 343 basis points in the quarter, a decrease from the first quarter. All of these activities allowed us to not only fund record volumes of loans, but also effectively deploy capital into technology and operational projects, as well as repurchase a significant amount of our common stock. Warning! Copyright 2023 Surperformance. PennyMac Financial Services' insider roster includes Anne Mccallion (Director), Farhad Nanji (Director), and David Spector (CEO). The Servicing segment offers servicing of originated mortgage loans and execution and management of early buyout transactions. The committed pipeline at July 31 was $7.2 billion. Equal Housing Opportunity 2023 PennyMac Loan Services, LLC, 3043 Townsgate Rd, Suite 200, Westlake Village, CA 91361, 818-224-7442. Changes in these assumptions may have a material impact on the backtested returns presented. 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. Dan Perotti , PFSIs Senior Managing Director and Chief Financial Officer will discuss the financials in more detail later on in this discussion. 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. 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 are growing our best-in class tools and solutions we provide our brokers with to further enhance their self-service capabilities. Net income in the fourth quarter was the second highest in the history of. 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. Headquarters. I am incredibly thankful and proud of the over 6,000 PennyMac employees who managed through the challenges of the pandemic to deliver these extraordinary results. Information, rates and pricing are subject to change without prior notice at the sole discretion of 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. free lookups / month. The direct lending channels have an outsized impact on PFSI's production earnings, as Andy mentioned earlier. For the complete insider trading history of PFSI, click here. 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. And, we continue to enhance our MAC portal, thus improving the ability for borrowers to self-service throughout the entire origination process. 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. PennyMac Loan Services, LLC Attention: Correspondence Unit PO Box 514387 Los Angeles, CA 90051-4387, Notice of Error and Information Requests Only. This brings the total repurchases year-to-date to approximately $600 million. The stock was sold at an average price of $58.12, for a total value of $741,030.00. 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. GuruFocus has detected 8 Warning Signs with PFSI. What is David Spector's role in PennyMac Mortgage? Further, backtesting allows the security selection methodology to be adjusted until past returns are maximized. Thank you Isaac. Net income was $204 million or diluted earnings per share of $2.94, representing an annualized return on equity of 23%. Lastly, I would like to touch on the trends we are seeing related to forbearance and loss mitigation. PennyMac. 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. 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. PennyMac Financial reported strong earnings in the fourth quarter driven by core production and servicing results. And I'm pleased to be joined by PennyMac Financial Services CEO,. 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 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. And since the beginning of 2020, we have now repurchased over 18.5 million shares or approximately 24% of PFSI's common shares outstanding. The Production segment includes mortgage loan origination, acquisition, and sale activities. 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. If you need the payment address, click here. 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. 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. 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. Hedging and other gains of over $943 million largely offset an MSR fair value decrease of over $1.1 billion. Declining interest rates generally produce strong earnings in our production segment, while rising rates will generally produce strong earnings in our servicing segment as prepayments decline and the value of the MSR increases. 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. 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. Search over 700 This hiring mostly occurred in three key areas, servicing, direct lending and fulfillment services. 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. 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. As we look at 2021 we believe the market environment provides PFSI a good opportunity for continued elevated financial performance. In July, our correspondent acquisitions were $15 billion in UPB and locks were $12.8 billion. 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. The TipRanks Smart Score performance is based on backtested results. In July, originations for our consumer direct channel totaled $3.5 billion and locks totaled $5.5 billion. While our servicing group was aiding borrowers, our corporate groups were ensuring our capital and liquidity were protected. The origination market continues to be strong on a historical basis as mortgage rates have recently returned to near record lows. 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 We believe we will continue to increase their respective market positions as we execute on our growth initiatives in each channel. However, he will become a special advisor to David Spector, chairman and chief . As you can see on slide 10 of the presentation, consumer and broker direct represented 23% of fallout-adjusted lock volume in the second quarter but accounted for approximately 70% of segment pretax income. 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. 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). On Wednesday, March 1st, David Spector sold 26,169 shares of PennyMac Financial Services stock. 3043 Townsgate Rd Ste 200, Westlake Village, CA 91361-3027. While we experienced hedging losses in the quarter, the decrease was more than offset by PFSIs production income.