2 job at Countrywide Financial to founding the pair of publicly traded companies known as PennyMac, has died at 68. 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. This grew our servicing portfolio to over $426 billion in UPB even with elevated prepayment speeds. Our capital markets group achieved significant hedging gains that largely offset $1.1 billion in MSR fair value losses over the year, which were driven by historically low interest rates and fast prepayment speeds. The direct lending channels have an outsized impact on PFSI's production earnings, as Andy mentioned earlier. January 25, 2021, 12:31 p.m. EST 1 Min Read. 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. PennyMac Financial reported strong earnings in the fourth quarter driven by core production and servicing results. PennyMac Financial Services, Inc. operates as a holding company. 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. 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. And since the beginning of 2020, we have now repurchased over 18.5 million shares or approximately 24% of PFSI's common shares outstanding. Main Telephone (818) 224-7442 Primary Address 3043 Townsgate Road Suite 200 Westlake Village, CA 91361 USA Fiscal Close December Founded 2008 You can see the results of our hedging strategy in the full year view on slide 19. For licensing information, go to: www.nmlsconsumeraccess.org. 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. Thank you. 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). In the fourth quarter, the pretax income was $234.1 million, a 31% decrease from . Ultimately, we believe for these reasons, PennyMac will continue its market share growth as a channel leader. As the CEO of PennyMac Financial Services, Inc., Mr. Spector earned a total compensation package of $13,575,224.00 in 2021. The TipRanks Smart Score performance is based on backtested results. 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"I am delighted to announce Doug Jones' election to our. 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. 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,. And with that, I would like to turn it back to David for some closing remarks. 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. Licensed Mortgage Banker-NYS Department of Financial Services. 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. Following the transaction, the chief executive officer now directly owns 650,183 shares in the company, valued at approximately $39,427,097.12. Approve of CEO. No P&I advances have been made to date, as prepayment activity continued to sufficiently cover remittance obligations. 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. And while we believe the mortgage market will continue to change from a competitive and regulatory perspective, the infrastructure and risk management disciplines that distinguish PennyMac from others in the industry position us well. 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. Pennymac Westlake Village, CA office. The UPB of completed modifications was $5.5 billion, essentially unchanged from the prior quarter, and the UPB of EBO loan volume totaled $6.8 billion, up from $4.2 billion in the prior quarter. What is David Spector's role in PennyMac Mortgage? 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. Advances are expected to continue increasing over the next 6 to 12 months. DO NOT SEND PAYMENTS TO THIS ADDRESS. Production segment pretax income was $244.4 million, down 33% from the prior quarter and 55% from the second quarter of 2020. Thank you. Our costs vary by channel, ranging from approximately 15 basis points in correspondent to 150 basis points in consumer direct. The company has a market cap of $3.09 billion, a price-to-earnings ratio of 7.36 and a beta of 1.49. Lastly, we encourage investors with any questions to reach out to our Investor Relations team by email or phone. 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. {{ userNotificationState.getAlertCount('bell') }}. Backtested performance is not an indicator of future actual results. Similar Profiles. 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. Director, 10% Owner Stanford L Kurland sold 31,000 shares of PFSI stock on 01/07/2021 at the average price of $60.12. Specifically, backtested results do not reflect actual trading or the effect of material economic and market factors on the decision-making process. Please. GuruFocus has detected 5 severe warning signs with PennyMac Financial Services Inc. . | 3 Mrz 2023. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. 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. PennyMac Financial Services, Inc operates as a holding company. In total, these strong acquisition and origination volumes continue to drive the organic growth of our servicing portfolio despite elevated prepayment activity. In the last year, insiders at the real estate investment trust sold shares 23 times. PennyMac Financial Services Inc had annual average EBITDA growth of 35.90% over the past five years. The return on the trade was 60.70%. In total, loan acquisition and origination volumes were $61 billion in the second quarter. 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. Government correspondent locks were $19.7 billion in UPB, down 2% from the prior quarter and up 22% from the fourth quarter of 2019. Ill now turn it over to Dan Perotti, Senior Managing Director and Chief Financial Officer to speak to the financial results for the quarter. 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. 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. President & CEO David Spector sold 30,000 shares of PFSI stock on 01/12/2021 at the average price of $57.43. The price of the stock has decreased by 14.5% since. David Spector's most profitable transaction was an Informative Sell of PMT stock on March 22, 2019. Thank you Isaac. The decrease from the prior quarter was primarily driven by a $76 million decrease in EBO loan-related revenue. 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'll review your feedback and if you chose to be contacted, we will respond within 1-2 business days. While Kurland had been battling brain cancer, the cause of death was attributed to complications from COVID-19, separate . In July, our correspondent acquisitions were $15 billion in UPB and locks were $12.8 billion. 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. 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. The stock was sold at an average price of $60.80, for a total value of $912,000.00. In the fourth quarter, PennyMac Financial delivered net income of 38 Interest rate lock volume was $5.7 billion in UPB, up 4% from the third quarter and 234% from the fourth quarter of 2019. Headquarters. Mr. Kurland was 68. Many of these employees were on-boarded virtually and have begun their PennyMac careers working from home. Get notified the next time David A. Spector buys or sells PennyMac Financial Services stock. 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. I will cover each segment's results and then briefly review our forbearance and servicing advance trends. We quickly developed a plan to deal with the COVID-19 pandemic and the various work from home orders across the nation. All loan programs subject to borrowers meeting appropriate underwriting conditions. The results reflect performance of a strategy not historically offered to investors and does not represent returns that any investor actually attained.