This hedging strategy is designed to moderate the impact of interest rate changes on the fair value of our MSR asset and also considers productionrelated income. 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. 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. Mr. Spector owns 650,183 shares of PennyMac Financial Services stock worth more than $40,948,525 as of March 4th. The average return per transaction made by David Spector is 3.50%. The firm engages in the production and servicing of U.S. residential mortgage loans. 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. David Spector President and Chief Executive Officer Lior Ofir Senior Managing Director & Chief Information Officer Stanford L. Kurland Executive Chairman Amir Pirnia SVP Engineering The stock was sold at an average price of $58.12, for a total value of $741,030.00. Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world. View David Spector's email address (d*****@pennym***.com) and phone number. PennyMac Financial Services Inc., a national mortgage lender and servicer, announced Thursday that Doug Jones has joined its board of directors. 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. Presenter SpeechMark DeVries Hello. Government correspondent locks were $19.7 billion in UPB, down 2% from the prior quarter and up 22% from the fourth quarter of 2019. 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. This was all done while the vast majority of our employees were working from home for most of the year. Similarly, lock volume totaled $4.5 billion, down 21%. Thank you, Dan. Margins in our consumer direct channel still remain elevated relative to historical levels. This financial performance is driven by the balanced business model in mortgage banking that we have built over the last 13 years. Get notified the next time David A. Spector buys or sells PennyMac Financial Services stock. 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. This brings the total repurchases year-to-date to approximately $600 million. 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. 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The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Find the best performing Analyst in each sector. You will be contacted by a representative that will help answer any inquiries you have. Learn More on David A. Spector's trading history. 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. PennyMac Financial Services' insider roster includes Anne Mccallion (Director), Farhad Nanji (Director), and David Spector (CEO). 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. 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. Licensed by the Department of Financial Protection and Innovation under the California Residential Mortgage Lending Act. Head over to our Expert Center to see a list of the, Invest Like a Pro with Unique Data & Simplifed Tools, See the Hottest Stocks Based on Insider Trading >. 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. 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. Isaac Garden - Investor Relations. If youre new to trading, then youve probably heard the wrong thing about optionsthat theyre risky, unpredictable, or difficult. The stock was sold at an average price of $60.80, for a total value of $912,000.00. PennyMac Financial Services, Inc operates as a holding company. Jones brings more than 25 years of financial services industry experience to PennyMac Financial Services. Strong production volumes across all 3 channels continue to drive the growth of our servicing portfolio despite the elevated level of prepayments. PennyMac Financial Servicess payout ratio is 9.54%. 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. This concludes PennyMac Financial Services, Inc.s fourth quarter earnings discussion. And for the month of July, we repurchased an additional 2.5 million shares for an approximate cost of $151 million. 3043 Townsgate Road, Suite 200, Westlake Village, California 91361, US, View 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. Is this happening to you frequently? PennyMac Financial Services, Inc. (NYSE:NYSE:PFSI) Q2 2021 Earnings Conference Call August 5, 2021 5:05 PM ETCompany ParticipantsIsaac Garden - Vice President, Investor RelationsDavid. Trade/service marks are the property of PennyMac Loan Services, LLC and/or its subsidiaries or affiliates. This net worth estimate does not reflect any other assets that Mr. Spector may own. 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. No cash balance or cash flow is included in the calculation. The TipRanks Smart Score performance is based on backtested results. Origination volumes totaled $10.7 billion in UPB, while interest rate lock commitments totaled $14.1 billion. While margins across channels have come in lower from the third quarter, we saw the shift in Government correspondent margins come in the most towards more normalized levels. 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 financials in more detail later on in this discussion. 112 S. Lakeview Canyon Rd, Ste. All loan programs subject to borrowers meeting appropriate underwriting conditions. BBB File Opened: 2/5/2015. 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. Being one of the Find contact details for 700 million professionals. 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. GuruFocus has detected 8 Warning Signs with PFSI. In January, our correspondent acquisitions remained strong, with $17.9 billion in UPB of acquisitions and lock volume of $17.8 billion. The corporate mailing address for Mr. Spector and other PennyMac Financial Services executives is 3043 TOWNSGATE ROAD, WESTLAKE VILLAGE CA, 91361. What is David Spector's role in PennyMac Mortgage? If so, please call us at 866.545.9070. All rights reserved. As our production mix continues to shift towards direct lending, production expenses as a percentage of fallout adjusted locks are expected to trend higher. If you need the payment address, click here. We also repurchased approximately 1.6 million shares of PFSIs common stock, at an approximate cost of $89.3 million. The shares were sold at an average price of $60.64, for a transaction totalling $1,586,888.16. No representations and warranties are made as to the reasonableness of the assumptions. 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. Thank you. 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,. Finally, our Mortgage Fulfillment Division is making enhancements to further automate and improve the production and distribution of loan documents. While Kurland had been battling brain cancer, the cause of death was attributed to complications from COVID-19, separate . The price of the stock has decreased by 14.5% since. We have also seen a large group of borrowers that reperform and exit forbearance on their own. In the last year, insiders at the real estate investment trust sold shares 23 times. We quickly developed a plan to deal with the COVID-19 pandemic and the various work from home orders across the nation. Chang (pictured), who has been with PennyMac since 2008, will step down from his roles at the end of the year. 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. Follow them so you never miss a recommendation. Minnesota: This is not an offer to enter into an agreement and an offer may only be made pursuant to Minn. Stat. PennyMac Financial delivered strong fourth quarter results, marking the end to a record year. Earnings per share grew 328% for the year with net income up 319%. The company was founded by Stanford L. Kurland on July 2, 2008 and is headquartered in Westlake Village, CA. Our higher-margin consumer direct lending channel continued to expand, producing record locked and funded volumes during the quarter, which we estimate has resulted in a significant increase in market share. 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. Co-op loans not available. 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. Learn More on David A. Spector's contact information. David Spector's most profitable transaction was an Informative Sell of PMT stock on March 22, 2019. Ultimately, we believe for these reasons, PennyMac will continue its market share growth as a channel leader. I'll now turn it over to Dan, who will speak to the financial results for the quarter. | 3 Mrz 2023. The Investment Management segment consists of sourcing, performing diligence, bidding and closing investment asset acquisitions, managing correspondent production activities and managing the acquired assets. Equal Housing Opportunity 2023 PennyMac Loan Services, LLC, 3043 Townsgate Rd, Suite 200, Westlake Village, CA 91361, 818-224-7442. 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. Approve of CEO. PennyMac Financial delivered another outstanding quarter of operational and financial performance, despite the increased volatility in the mortgage market. PennyMac Financial Services can also be reached via phone at (818) 224-7442 and via email at [emailprotected] Learn More on David A. Spector's contact information. 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. 33% of correspondent acquisitions were government loans and 67% were conventional loans. While many of these employees aided in our record production growth and increased servicing activities due to COVID, these hires were consistent with PFSIs long-term strategy. Information, rates and pricing are subject to change without prior notice at the sole discretion of PennyMac Loan Services, LLC. This is not a commitment to lend. 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