See also 12 Top Performing Energy Stocks in Januaryand 25 Countries with Most Billionaires. Production segment pretax income was negative $9 million. And it means its going to be harder than ever to hold onto any money you make. We and our partners use cookies to Store and/or access information on a device. The shares were sold at an average price of $60.80, for a total transaction of $912,000.00. Following the transaction, the chief executive officer now directly owns 450,604 shares of the company's stock, valued at $27,396,723.20. Finally, our Investment Management segment delivered pretax income of $1.2 million, down from $1.6 million in the prior quarter. As we continue to add significant volumes of servicing to our portfolio at current market rates, we will continue to build significant refinance opportunities in the future for our consumer direct division if mortgage rates decline. In addition, the board of directors at PennyMac Financial . I believe it will make millions of Americans vastly wealthier. Now, I'd like to introduce David Spector, PMT's chairman and chief executive officer, who will discuss the company's first-quarter 2021results. Servicing advances outstanding for PFSI's MSR portfolio increased to $520 million at year end from $397 million at September 30th due to seasonal property tax payments. For any questions, please visit our website at pfsi.pennymac.com, or call our Investor Relations department at 8182644907. Since then, we have grown responsibly and profitably into one of the largest residential mortgage producers and servicers in the country with an industry-leading correspondent production business, and a growing presence in the direct lending channels. Finally, I believe this management team is the best in the industry and I'd like to thank them all for their various contributions to PFSI's strong performance in 2022. $98.81K . Total correspondent loan acquisition volume in the fourth quarter was $20.8 billion. UBS Group AG Reduces Stock Holdings in Builders FirstSource, Inc. Boothbay Fund Management LLC Has $299,000 Stock Holdings in GMS Inc. Isaac Garden - Investor Relations. While the Pennymac workforce stays home to help flatten the curve, we know first responders,. Billionaire Leon Cooperman Is Buying These 5 Stocks. Twitter; LinkedIn; . . 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. Active Calabasas, CA Chairman for Pennymac Corp. (818)224-7442. While overall delinquency rates increased from the prior quarter, they remain consistent with our expectations for a primarily government-insured or guaranteed portfolio. The fourth quarter included non-recurring tax items, which resulted in an effective tax rate of 44.4% versus 27.1% in the prior quarter. As David discussed earlier, these acquisition and origination volumes continue to drive the organic growth of our servicing portfolio. David Spector received compensation valued at about $12,375,328 in 2020 after becoming Chairman & CEO. Along the way, I believe Biden could become one of the most powerful Presidents in history. David A. Spector (updated October 5, 2014) Page 14 of 15 . As you will see on Slide 12, 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 the conventional correspondent loans it retains. Dan PerottiDavid SpectorDoug JonesEarnings Call TranscriptIsaac GardenNYSE:PFSIQ4 2022Yahoo FinanceShow moreShow less, Despite Joe Bidens age, raging inflation, and his dismal 45% approval level. 10 stocks we like better than PennyMac Mortgage . If Warren Buffetts hedge fund didnt generate any outperformance (i.e. Similarly, prepayment speeds in PennyMac Financials subserviced portfolio, which includes mostly Fannie Mae and Freddie Mac mortgage servicing rights owned by PMT were 4.4%, down from 6.9% in the prior quarter. More than 15 years ago, we founded PennyMac with a vision to help revitalize the mortgage market and become a trusted partner in home ownership. 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 efficiently through the volatile market environment, even as other participants have exited or retreated from the channel. Following the sale, the chief executive officer now directly owns 450,604 shares in the company, valued at approximately $27,396,723.20. We have a long history of successfully developing and deploying innovative mortgage technology, which has resulted in an extremely flexible and scalable platform as evidenced by our ability to rapidly right-size our cost structure. Quarterly operating expenses in the fourth quarter were down 44% from average 2021 levels. Well, its almost entirely because of a surprising July 25th twist that hardly anybodys talking about right now. 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. Before joining PennyMac in March 2008, Mr. Spector was co-head of global residential . Quarterly operating expenses in the fourth quarter were down 44% from average 2021 levels. And with that, I would like to turn it back to David for some closing remarks. Thank you. Series 2023-GTL1 Loan On February 28, 2023, PennyMac Financial Services, Inc. (the "Company"), through two of its indirect, wholly owned subsidiaries, PNMAC GMSR ISSUER TRUST ("Issuer Trust") and PennyMac Loan Services, LLC ("PLS"), entered into a syndicated series of term notes (the "Series 2023-GTL1 Loan"), as part of the structured . These are often email forwarders, allowing organizations with a volatile staff or high turn-over rate to avoid . Additionally, higher short-term rates have driven strong earnings on custodial balances. Share Show more sharing options. $856.66K on November 2, 2022. We estimate that over the past 12 months we represented approximately 15% of the channel overall. Purchase loans accounted for 93% of total correspondent acquisitions during the quarter. JMP Securities downgraded shares of PennyMac Financial Services from an outperform rating to a market perform rating in a research report on Wednesday, January 18th. The layoffs come as Pennymac ups its investment in technology and marketing to help it do more business directly with . As David discussed earlier, these acquisition and origination volumes continue to drive the organic growth of our servicing portfolio. We remained active in stock buybacks and in the fourth quarter we repurchased 1.1 million shares of PFSI common stock at an average price of $46.99 for an approximate cost of $51 million. PennyMac Financial Services, Inc. announced today that Doug Jones, President and Chief Mortgage Banking Officer, joined its Board of Directors effective March 1, 2023. Segment revenue was $9.9 million, down 4% from the prior quarter. To get here required a long and winding route. This information is according to proxy statements filed for the 2021 . This concludes PennyMac Financial Services, Inc.s fourth quarter earnings discussion. Servicing and sub-servicing revenues, the majority of which are cash, totaled more than $1.2 billion in 2022. Search Contacts. We expect EBO revenues to remain low in the coming quarters as lower overall volumes and redelivery gains are expected to be limited due to the higher interest rate environment. PennyMac Financial Services, Inc operates as a holding company. 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 non-GAAP measures that have been reconciled to their GAAP equivalent in our earnings presentation. Potential PennyMac Mortgage Investment Trust shareholders may wish to note that the Chairman of the Board & CEO, David Spector, recently bought US$274k worth of stock, paying US$13.71 for each share. PennyMac Mortgage Investment Trust. 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 efficiently through the volatile market environment, even as other participants have exited or retreated from the channel. Our proprietary servicing technology provides us with significant operational scale and workflow efficiencies that enable us to adapt quickly to forthcoming market conditions and regulations while also providing quality service to our customers. You can get rich by returning 20% per year and compounding that for several years. Before their time at Countrywide Bank, David was a Vice President at Citibank, NA from . Repurchase levels were down meaningfully from the third quarter as we prefer to maintain flexibility to address potential risks and opportunities in the evolving market environment. The fourth quarter included non-recurring tax items, which resulted in an effective tax rate of 44.4% versus 27.1% in the prior quarter. San Francisco, CA. Earnings on custodial balances and deposits and other income increased $17 million. Revenue per fallout-adjusted lock for PFSIs own account was 55 basis points in the fourth quarter, down from 99 basis points in the prior quarter driven by lower volumes in Consumer Direct and lower overall margins. Back then they werent called hedge funds, they were called partnerships. As David mentioned earlier PFSIs net income was $38 million or diluted earnings per share of $0.71. Institutional investors own 67.03% of the companys stock. For the full year, PFSI achieved a return on equity of 14%, driving continued growth in book value per share, which ended 2022 at $69.44. I am Barclays' consumer finance analyst, Mark DeVries. For the full year, PFSI achieved a return on equity of 14%, driving continued growth in book value per share, which ended 2022 at $69.44. For the fourth quarter only, Pennymac was ranked #2. PennyMac Financial Servicess dividend payout ratio is currently 9.54%. With mortgage interest rates currently still above 6%, the most recent third-party forecasts for 2023 originations range from $1.6 trillion to $1.9 trillion, down meaningfully from 2022. The consent submitted will only be used for data processing originating from this website. Pretax income excluding valuation-related items for the servicing segment was $79 million, up from the prior quarter as higher realization of MSR cash flows, interest expense, and lower EBO-related income was more than offset by higher loan servicing revenue, higher earnings on custodial balances and deposits, and lower operating expenses. I am pleased to report that we ended the quarter with a servicing portfolio of $552 billion, or approximately 4.1% of all residential mortgage debt in the U.S. Prepayment speeds have slowed meaningfully given higher mortgage rates. Man Who Predicted Lehman Crash Makes New Warning, 12 Top Performing Energy Stocks in January. In PFSI's Investment Management segment, net assets under management were $2 billion at quarter end, down slightly from the prior quarter due to PMT's financial performance. 2014 - 2016. . "Stan leaves an indelible mark not only on PennyMac, but on the mortgage industry he helped to build and shape. We estimate the committed pipeline at January 31st was $700 million. The bad news is, this July 25th twist is also likely to make Biden and the progressives more powerful than ever. As Chairman & CEO of Pennymac Financial Services, Inc, David Spector has a total base salary of $1,000,000 . Purchase loans accounted for 93% of total correspondent acquisitions during the quarter. In addition to his many sources of revenue, he also has other qualities that have propelled him to the top of a prominent list of celebrities in such a short . This represents a $0.80 dividend on an annualized basis and a dividend yield of 1.29%. Insider trading is most common in March, with the busiest year in 2020. I am pleased to report that we ended the quarter with a servicing portfolio of $552 billion, or approximately 4.1% of all residential mortgage debt in the U.S. Prepayment speeds have slowed meaningfully given higher mortgage rates. Regarding the $650 million of Ginnie Mae MSR term notes originally due February 2023, we exercised our option to extend the maturity for 2 years. PMT - key executives, insider trading, ownership, revenue and average growth rates. Operating expenses as a percentage of average servicing portfolio UPB decreased. Summary. The largest trade he's ever made was exercising 77,902 units of Pennymac Mortgage Investment Trust stock on 2 April 2018 . David Spector's largest sale order was 59,634 units , worth over Our multi-channel approach to mortgage production provides the flexibility to adapt to different market conditions and drives organic growth of our servicing portfolio. Jones brings more than 25 years of financial services industry experience to PennyMac Financial Services. How many employees does PENNYMAC have? In the last 8 years at Pennymac Financial Services, Inc, David Spector has sold an estimated value of $51.14M worth. Job Department. The UPB of completed modifications was $2.3 billion, down slightly from the prior quarter while EBO loan volumes remained low. Pennymac Financial Services, Inc's most recent insider trade came on March 2, 2023 by 5. As David mentioned earlier, we remain focused on managing expenses in the current market environment, and although fallout adjusted locks were up 11% from the prior quarter, production expenses net of loan origination expense were down 13%. "In fact, the . Thus far, we have received very positive feedback on the new portal, garnering the attention of top brokers in the channel who are looking to expand their relationship with PennyMac. If you would like to change your settings or withdraw consent at any time, the link to do so is in our privacy policy accessible from our home page.. That means much bigger government. Turning to consumer direct, we estimate we accounted for approximately 1.2% of total originations in the channel over the last 12 months. We encourage investors with any questions to reach out to our Investor Relations team by email or phone. The shares were sold at an average price of $60.64, for a total transaction of $1,586,888.16. Read more. Hedging losses totaled $73 million, primarily driven by hedge costs and higher interest rates. Contribute. Thus far, we have received very positive feedback on the new portal, garnering the attention of top brokers in the channel who are looking to expand their relationship with PennyMac. Executive Management. 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. Were Hedge Funds Right About PennyMac Financial Services Inc (PFSI)? Pretax income excluding valuation-related items for the servicing segment was $79 million, up from the prior quarter as higher realization of MSR cash flows, interest expense, and lower EBO-related income was more than offset by higher loan servicing revenue, higher earnings on custodial balances and deposits, and lower operating expenses. Production revenue margins were lower across all three channels. Mr. David Spector, President/CEO; . Get our editors daily picks straight in your inbox! Mortgage lender Pennymac Financial Services has laid off an additional 32 employees in July. Anne McCallion, Director, 5+ . In the same report you can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12-24 months. View detailed PFSI description & address. That year Buffetts hedge fund returned 10.4% and Buffett took only 1.1 percentage points of that as fees. Realization of MSR cash flows increased by $7 million driven by higher average MSR values during the quarter. Alignment Healthcare (NASDAQ:ALHC) Shares Gap Down to $9.94, Envestnet Asset Management Inc. Most recently he exercised 57,707 units of PMT stock worth $928,506 on 23 February 2022. In the same report you can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12-24 months. Pretax income excluding valuation-related items for the servicing segment was $79 million, up from the prior quarter as higher realization of MSR cash flows, interest expense, and lower EBO-related income was more than offset by higher loan servicing revenue, higher earnings on custodial balances and deposits, and lower operating expenses. The company also recently announced a quarterly dividend, which was paid on Friday, February 24th. In the fourth quarter, PennyMac Financial delivered net income of $38 million, or $0.71 in earnings per share. Doug Jones: Thanks, David. A number of hedge funds and other institutional investors have recently bought and sold shares of PFSI. 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. In short, a powerful new economic force is quietly building behind Joe Biden and Im confident Biden can harness this forces inevitable wave, carrying him to a LANDSLIDE re-election win. While we respected Wells Fargo as a competitor in the correspondent channel, we believe their exit from the channel creates additional opportunities for PennyMac, particularly in the community bank and credit union sector of the market where they previously had a strong presence. Ill now turn it over to Dan who will review PFSIs financial results for the quarter. Chang (pictured), who has been with PennyMac since 2008, will step down from his roles at the end of the year. Similarly, correspondent lock volume for PFSIs account was up 25% from the prior quarter. Our servicing portfolio ended the year at $552 billion in unpaid principal balance as additions from loan production continued to exceed prepayment activity. PennyMac widened its leadership position in correspondent lending as our strong capital position and consistent commitment to the channel provides our partners with the stability and support they need to successfully navigate the challenging mortgage market. We estimate that in 2022 we represented approximately 2% of the origination volume in the channel. Revenue per fallout-adjusted lock in the fourth quarter was 21 basis points, down from 24 basis points in the prior quarter, driven primarily by PFSIs purchase of lower margin conventional loans from PMT. Use our Premium/VIP Service to contact David Spector by email now. $3.6M on March 1, 2023. Thus far, we have received very positive feedback on the new portal, garnering the attention of top brokers in the channel who are looking to expand their relationship with PennyMac. var _Hasync=_Hasync||[];_Hasync.push(['Histats.start','1,4553220,4,511,95,18,00000000']);_Hasync.push(['Histats.fasi','1']);_Hasync.push(['Histats.track_hits','']);(function(){var hs=document.createElement('script');hs.type='text/javascript';hs.async=true;hs.src=('//s10.histats.com/js15_as.js');(document.getElementsByTagName('head')[0]||document.getElementsByTagName('body')[0]).appendChild(hs);})(); David Spector Pennymac is an individual who has become a celebrity by his charismatic works. Segment revenue was $9.9 million, down 4% from the prior quarter. While many industry participants have taken the appropriate steps to reduce capacity, it has been happening slowly and we believe overcapacity still remains. PennyMac Financial Services Inc., a national mortgage lender and servicer, announced Thursday that Doug Jones has joined its board of directors. On Wednesday, March 1st, David Spector sold 26,169 shares of PennyMac Financial Services stock. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. Contact Information. We estimate the committed pipeline at January 31st was $800 million. Last quarter, we completed the roll out of POWER+, our next generation technology platform providing brokers with the tools they need to successfully grow their businesses and convert leads into loans. Our multi-channel approach to mortgage production provides the flexibility to adapt to different market conditions and drives organic growth of our servicing portfolio. Because of his dedication, he has achieved great achievements. More than 15 years ago we founded PennyMac with an unwavering focus on enterprise risk management and doing the right thing for our customers. Duration: 19 minutes. As Chairman and Chief Executive Officer at PennyMac Financial Services, Inc., David A. Spector made $13,575,224 in total compensation. . We initially share this idea in October 2018 and the stock already returned more than 150%. We estimate originations in our consumer direct channel in January totaled $300 million, and locks totaled $700 million. Revenue per fallout-adjusted lock was 56 basis points, down from 70 basis points in the prior quarter, although we have seen margins in this channel improve thus far in the first quarter. Price T Rowe Associates Inc. MD now owns 4,940,575 shares of the real estate investment trusts stock valued at $215,953,000 after buying an additional 422,092 shares during the last quarter. Dimensional Fund Advisors LP now owns 783,884 shares of the real estate investment trusts stock valued at $41,703,000 after acquiring an additional 379,161 shares in the last quarter. The Servicing segment recorded pretax income of $76 million, down from pretax income of $145 million in the prior quarter and $126 million in the fourth quarter of 2021. Hedging losses totaled $73 million, primarily driven by hedge costs and higher interest rates. As we have demonstrated with our 2022 performance, we believe mortgage banking companies with large servicing portfolios and diversified business models like PennyMac Financial are better positioned to offset the decline in origination profitability that has resulted from lower volumes. This net worth estimate does not reflect any other assets that Mr. Spector may own. Purchase lock volume for the quarter of $681 million was 40% of total locks, compared to $1.37 billion, or 36% in the prior quarter. In order to protect the value of our MSR asset we utilize a comprehensive hedging strategy. 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 non-GAAP measures that have been reconciled to their GAAP equivalent in our earnings presentation. The shares were sold at an average price of $60.64, for a total value of $1,586,888.16. This suggests a possible upside of 14.0% from the stock's current price. 6 Wall Street analysts have issued twelve-month target prices for PennyMac Financial Services' shares. PennyMac Financial Services, Inc. (NYSE:PFSI) Q4 2022 Earnings Conference Call February 2, 2023 5:30 PM ET, Isaac Garden - Vice President, Investor Relations, David Spector - Chairman & Chief Executive Officer, Dan Perotti - Senior Managing Director & Chief Financial Officer. Verified contact information for David Spector - Chairman & Chief Executive Officer, PennyMac Loan Services, LLC including email address, phone number and personality insights that will make your sales and marketing efforts much more effective. In the fourth quarter, PennyMac Financial delivered net income of $38 million, or $0.71 in earnings per share. Goldman Sachs Group Inc. now owns 706,965 shares of the real estate investment trusts stock worth $37,610,000 after buying an additional 539,539 shares in the last quarter. Now Ill turn it over to Doug Jones, PennyMacs President and Chief Mortgage Banking Officer, who will review our market share trends and fourth quarter mortgage banking results.