Pennymac’s profit is shrinking, but the service portfolio achieves $ 680 billion
“Pennymac Financial yielded solid financial results of the first quarter, which shows that our ability to consistently generate strong returns in a volatile market,” said Pennymac chairman and CEO David Spector in a statement.
“In our production segment we have acquired nearly $ 30 billion or arose from unpaid main balance (UPB) of loans against higher note percentages, which strategically positions our consumer -direct division for a significant growth when interest rates are falling. This production led to a continued growth of our service portfolio, that the quarter of the Duke Portpolio, that that has the quarterly inwatery portfolio, that that has the quarterly inwatery portfolio that balance. “
The acquisitions and original loans – including those observed for PMT, the MortGage Investment Trust of the company – amounted to $ 28.9 billion in unpaid main balance, with 19% compared to the previous quarter and an increase of 33% compared to Q1 2024.
‘[That’s] In accordance with the decline of the total market of total acquisitions and origination volumes, ”said Daniel Perotti, senior director of Pennymac and Chief Financial Officer, during Tuesday’s win.
Spector added that the company canceled operational return on the equity of 15% that “was driven by continuous force in our service company and a solid contribution from our production segments despite increased mortgage interest.”
The costs of fulfilling correspondent loans for PMT amounted to $ 5.3 million in Q1 2025, with 17% falling compared to Q4 2024 only 32% years by year. Pennymac attributed the decline in reducing conventional acquisition volumes. In Q2 2025 it is expected that PMT will retain all Jumbo production.
“In the second quarter we expect PMT that about 15% to 25% of the total conventional/conforming correspondent production will retain, consistent with remarkable loans from the first quarter,” Perotti said. “Based on our renewed mortgage bank agreement with PMT, starting in the third quarter of 2025, all correspondent loans are initially obtained by PFSI.”
The operational income of the Services -Segment company saw from $ 76 million before tax from January to March, compared to $ 87.3 million in Q4 2024 and an increase of $ 23.7 million in Q1 2024.
But Pennymac’s service portfolio also grew to $ 680.2 billion in UPB, an increase of 2% from the end of 2024 and 10% higher compared to March 2024. The company said this was driven by production volumes that compensate more than the activity of the pre -payment activity.
Pennymac had a loss of $ 33.7 million in front of business activities that are not directly due to the production and service segments. This was comparable to losses of $ 35.9 million in the previous quarter and $ 28.4 million in the same period last year.
“We have terminated the quarter with $ 4 billion in total liquidity, including cash and amounts that are available to draw on facilities where we have collaterally,” said Perotti.
Despite the lower performing figures compared to the past quarter, Spector spoke positively about the future of the company and praised the four -year partnership with the American Olympic and Paralympic teams.
“This phased approach enables us to build strategic brand relevance, consciousness and involvement without prior costs,” he said.
Above all, Spector expressed promise about the future versions of Pennymac.
“We are uniquely positioned in the industry. Our large and growing portfolio of borrowers who have recently entered into mortgages at higher rates will benefit from a refinancing in the future when interest rates are falling,” he said.
“We expect further market penetration, with the aim of establishing a broader share of MSR owners who are looking for a best-in-class, cheap sub-serviceer. This strategic focus on sub-service is proof of our dedication to diversify our income flows and maximizing the value of our service platform.”
