Servicing advances outstanding decreased to approximately $424 million at June 30 from $437 million at March 31. These record volumes resulted in the growth of our servicing portfolio to $427 billion in UPB, despite extraordinary levels of prepayment activity. While our sub-service portfolio, consisting primarily of conventional loans, reported a 60-plus delinquency rate of 1.6%, down from 2.1% at March 31 as borrowers continue to emerge from forbearance plans. The direct lending channels have an outsized impact on PFSI's production earnings, as Andy mentioned earlier. In January, our broker direct originations totaled $1.4 billion in UPB, and locks totaled $2.1 billion. The expertise of our deep management team, combined with the technology investments we have made, support PennyMac's growth strategy in a changing mortgage market. The results reflect performance of a strategy not historically offered to investors and does not represent returns that any investor actually attained. Massachusetts Mortgage Lender License # MC35953. Specifically, backtested results do not reflect actual trading or the effect of material economic and market factors on the decision-making process. Mr. Kurland was 68. We saw significant market share growth in the conventional correspondent market this quarter and our leadership position in government loans remains as a result of our consistency, low costs and operational excellence we continue to provide to our correspondents. 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. 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. Please disable your ad-blocker and refresh. 130 Westlake Village, CA, 91362 Get Directions. Roles that David Spector holds in companies, The most profitable trade made by David Spector, List of latest transactions for each holding click on a transaction to see David Spector's performance on stock. Presenter SpeechMark DeVries Hello. Posted by Defense World Staff on Mar 3rd, 2023. Total correspondent loan acquisition volume was $46.7 billion, down 9% from the prior quarter and up 56% from the second quarter of 2020. And since the beginning of 2020, we have now repurchased over 18.5 million shares or approximately 24% of PFSI's common shares outstanding. David Spector Email Address Found 7 email address listings: @pennymacfinancial.com @countrywide.com @pennymacusa.com @pnmac.com @yahoo.com +2 more David Spector Phone Number Found 6 phone numbers: 818-292-XXXX 818-324-XXXX 818-224-XXXX 818-332-XXXX 212-761-XXXX +1 more View David's Email & Phone (It's Free) 5 free lookups per month. Main Telephone (818) 224-7442 Primary Address 3043 Townsgate Road Suite 200 Westlake Village, CA 91361 USA Fiscal Close December Founded 2008 The Production segment includes mortgage loan origination, acquisition, and sale activities. This website may include combined information from PennyMac Financial Services, Inc. ("PFSI") and PennyMac Mortgage Investment Trust ("PMT") collectively Pennymac. All rights reserved. Thank you. And with that, I would like to turn it back to David for some closing remarks. 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. These transactions provide PennyMac the additional capacity and liquidity to efficiently execute loss mitigation strategies as sales of these loans to third parties also eliminate the potential for associated margin calls. He previously served as Chief Correspondent Lending Officer and has been a member of the company's executive management team since 2011. Having difficulty making payments? As we outlined in our Investor Day, we see additional opportunities resulting from changes to the GSE's preferred stock purchase agreement. The percentage of loans in forbearance decreased to 4.9% at June 30 from 6.3% at March 31, as borrowers in forbearance plans at March 31 who have since exited more than offset new forbearance plans. Learn More on David A. Spector's trading history. We quickly developed a plan to deal with the COVID-19 pandemic and the various work from home orders across the nation. 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. With that, I will now turn the call over to Andy Chang, Senior Managing Director and Chief Operating Officer, who will review the mortgage origination landscape and the drivers of profitability for PFSI going forward. 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. No credit card required. 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. We have used our cloud-based technology systems to aid in scaling our businesses to the market and supported that growth with strategic hiring of employees. These technology investments are critical drivers to the growth of our direct lending businesses. Our large, organically built servicing portfolio provides a counter-balance to our production activity. Stanford Kurland. While such a market would be smaller than 2020, it would represent a large origination market by historical standards. 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. Dans son rle . 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. 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. David Spector also recently made the following trade(s): PFSI stock opened at $61.78 on Friday. Lastly, I would like to touch on the trends we are seeing related to forbearance and loss mitigation. The shares were sold at an average price of $60.64, for a total value of $1,586,888.16. These valuation declines were primarily driven by significant levels of prepayment activity and early buyouts. David Spector received compensation valued at about $12,375,328 in 2020 after becoming . .This article first appeared on GuruFocus. Licensed by the N.J. Department of Banking and Insurance. Information on this page was last updated on 3/1/2023. Senior Managing Director and Chief Financial Officer, will discuss our financial performance in more detail later on in his discussion. 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. It operates through the following segments: Production, Servicing, and Investment Management. Certain assumptions have been made for modeling purposes and are unlikely to be realized. While Kurland had been battling brain cancer, the cause of death was attributed to complications from COVID-19, separate . PennyMac Mortgage Investment Trust (NYSE:PMT) Q1 2021 Earnings Conference Call May 6, 2021 5:00 PM ETCompany Participants. 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. Operating expenses were also down quarter-over-quarter as the prior quarter included seasonal accruals of compensation related expenses. 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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. Share Your Design Ideas, New JerseysMurphy Defends $10 Billion Rainy Day Fund as States Economy Slows, What Led to Europes Deadliest Train Crash in a Decade, This Week in Crypto: Ukraine War, Marathon Digital, FTX, Chairman/CEO, Pennymac Mortgage Investment. 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. Thank you for sharing your valuable opinion. T. Rowe Price Investment Management Inc. raised its position in shares of PennyMac Financial Services by 5.4% during the 4th quarter. Before I turn this over to Andy, I want to take a moment to say all of us at PennyMac are very grateful for the many kind thoughts and tributes we have received since announcing the sad passing of Stan Kurland, our founder and Chairman. The price of the stock has increased by 0.03% since. 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. 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. The origination market continues to be strong on a historical basis as mortgage rates have recently returned to near record lows. DO NOT SEND PAYMENTS TO THIS ADDRESS. Now Id like to begin by introducing David Spector, PennyMac Financials President and Chief Executive Officer who will review the Companys fourth quarter and full year 2020 results. In July, our correspondent acquisitions were $15 billion in UPB and locks were $12.8 billion. And we believe the role of a well capitalized correspondent aggregator like PennyMac will be increasingly important over time. On slide 14, you can see the fair value of our MSR decreased by $251 million in the second quarter and included $196 million in fair value losses as a result of higher expectations for prepayment activity in the future driven by lower mortgage rates and a flatter yield curve, as well as an additional $55 million in other valuation declines. For any questions, please visit our website at ir.pennymacfinancial.com or call our Investor Relations department at 818-264-4907. Find the best performing Analyst in each sector. the company. Backtested results are calculated by the retroactive application of a model constructed on the basis of historical data and based on assumptions integral to the model which may or may not be testable and are subject to losses. We achieved record production across all channels, with increased market penetration in our higher margin direct lending channels. While the Pennymac workforce stays. million verified professionals across 35 million companies. The prepayment speeds of PennyMac Financial's sub-service portfolio, which includes mostly Fannie Mae and Freddie Mac mortgage servicing rights owned by PMT, decreased to 24.7% from 35.1%. How do I contact David A. Spector? Thanks, Doug. The percentage of loans in forbearance decreased to 7.8% at December 31 from 10.1% at September 30 as new forbearance plans implemented since September 30 were more than offset by borrowers in forbearance plans at September 30 who have since exited. PFSI's Board of Directors also declared a second quarter cash dividend of $0.20 per share. State of Wyoming raised its position in shares of PennyMac Financial Services by 9.3% during the 4th quarter. He currently serves as a senior advisor to TPG Capital, a global private investment firm, and . These returns have led to a 29% compounded annual growth rate in our book value per share since our IPO. Good morning and thank you for joining us. As we continue to grow our leadership positions in the direct origination channels, this growth will drive the earnings from PennyMac Financial's production segment. PennyMac Financial Services, Inc. (NYSE:NYSE:PFSI) Q4 2020 Earnings Conference Call February 4, 2021 4:30 PM ETCompany ParticipantsIsaac Garden - Vice President Investor RelationsDavid. Pennymac Cares | Thank You from President & CEO, David Spector 108,081 views Apr 21, 2020 Right now, we realize the importance of home like never before. Stanford Kurland, who founded and served as Chairman of PennyMac Financial Services Inc., Westlake Village, Calif., following a multi-decade career at Countrywide Financial Corp., passed away on Jan. 25. Thank you, David. However, he will become a special advisor to David Spector, chairman and chief . Receive News & Ratings for PennyMac Financial Services Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for PennyMac Financial Services and related companies with MarketBeat.com's FREE daily email newsletter. On Monday, December 12th, David Spector sold 12,750 shares of PennyMac Financial Services stock. As Andy described earlier, all of this record production feeds our servicing portfolio, which at December 31, 2020 totaled $426.8 billion in UPB, up 6% from the end of the third quarter and up 16% over the end of 2019. These businesses are foundational to PFSI and not easily replicated. This outstanding income generated excess capital that we redeployed into increased levels of production, share repurchases, reduction of debt, and increased servicing activity. 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. However, margins in this channel remain attractive. 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. We are also increasing the use of online closings and automation. 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. Earnings per share grew 328% for the year with net income up 319%. 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. And finally, PFSIs Board of Directors approved an increase to its stock repurchase authorization from $500 million to $1 billion of outstanding common stock. 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. Conventional correspondent acquisitions, for which PFSI earns a fulfillment fee from PMT, totaled $30.5 billion, down 10% from the prior quarter and up 61% from the second quarter of 2020. In January, our consumer direct originations totaled $3.1 billion in UPB and locks totaled $4.4 billion. The shares were sold at an average price of $60.64, for a total transaction of $1,586,888.16. With the large and growing servicing portfolio and an industry leading correspondent production group, PFSI is an established leader with a growing presence across all facets of mortgage banking. 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. David Spector - Chairman and Chief . 10 Ratings. Business Incorporated: 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. If you have additional questions or would like to speak with a Pennymac representative, please call (800) 777-4001. Our direct lending channels have an outsized impact on production segment earnings, as Dan will discuss later. David Spector joined PennyMac in 2008. 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. Chang (pictured), who has been with PennyMac since 2008, will step down from his roles at the end of the year. No representations and warranties are made as to the reasonableness of the assumptions. In order to protect the value of our MSR asset, we utilize a comprehensive hedging strategy. PennyMac is a mortgage lender and servicer headquartered in Westlake Village, California. Other restrictions apply. The company reported a net income of $1 billion in 2021, down from a record of $1.6 billion in the previous year. 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,. 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. 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. What was David Spector's most profitable transaction? Learn More about David A. Spector's net worth. We estimate we are now represent approximately 2.5% market share in the channel with over 2,000 brokers approved to offer our products, an increase of 11% from March 31, 2021. Schonfeld Strategic Advisors LLC now owns 60,866 shares of the real estate investment trusts stock worth $3,449,000 after purchasing an additional 54,266 shares during the last quarter. The total sale was $1.7 million. Enter your email to receive our newsletter. 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. David Spector is currently Chairman of the Board, President and Chief Executive Officer at PennyMac - View - PennyMac org chart The shares were sold at an average price of $60.80, for a total transaction of $912,000.00. Insiders at PennyMac Financial Services own 18.0% of the company. 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. This concludes PennyMac Financial Services, Inc.'s second quarter earnings discussion. January 25, 2021, 12:31 p.m. EST 1 Min Read. Thank you, Dan. Changes in these assumptions may have a material impact on the backtested returns presented. Co-op loans not available. Susquehanna Fundamental Investments LLC raised its position in shares of PennyMac Financial Services by 24.8% during the 4th quarter. Ready to apply or complete your application? GuruFocus has detected 5 severe warning signs with PennyMac Financial Services Inc. . 18.5 million shares or approximately 24% of PFSI's common shares outstanding. Ill now turn it over to Dan Perotti, Senior Managing Director and Chief Financial Officer to speak to the financial results for the quarter. Revenue per fallout-adjusted lock was 343 basis points in the quarter, a decrease from the first quarter. Actual performance may differ significantly from backtested performance. Revenue per fallout-adjusted government lock in the second quarter was 30 basis points, down from 37 basis points in the prior quarter. Click here to check it out. 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). This performance added to a remarkable year that saw PFSI achieve a return on equity of 62% with almost $200 billion in UPB of loans funded. PennyMac Financial Services, Inc. has a 12-month low of $38.53 and a 12-month high of $73.79. PennyMac Financial Servicess payout ratio is 9.54%. As you can see on slide seven of our presentation, PennyMac maintained its leadership position in the correspondent channel, and we estimate that we currently represent approximately 18% of the channel overall. Net income in the fourth quarter was the second highest in the history of the company. Trade/service marks are the property of PennyMac Loan Services, LLC and/or its subsidiaries or affiliates. PennyMac Financial delivered strong fourth quarter results, marking the end to a record year. Importantly, PennyMac retains the servicing rights and carries an option to repurchase these government-insured loans in the event they become eligible for redelivery into Ginnie Mae securities. Our balanced business model continues to deliver consistent profitability and value creation as it has done over the last seven years as a public company. Please disable your ad-blocker and refresh. In total, loan acquisition and origination volumes were $61 billion in the second quarter. (business & personal). Minnesota: This is not an offer to enter into an agreement and an offer may only be made pursuant to Minn. Stat. January 25, 2021. The Big Take is the very best of Bloomberg's in-depth, original reporting from around the globe every day. Net income was $453 million or diluted earnings per share of $5.97 resulting in book value growth per share of 15% to $47.80, up from $41.67 at the end of the prior quarter. {{ userNotificationState.getAlertCount('bell') }}. A free inside look at company reviews and salaries posted anonymously by employees. Pennymac has 10 current employee profiles, including President and Chief Executive Officer David Spector. Chief Enterprise Ops Officer Jeffrey Grogin sold 13,521 shares of PFSI stock on 01/04/2021 at the average price of $62.53. PennyMac Financial Services' insider roster includes Anne Mccallion (Director), Farhad Nanji (Director), and David Spector (CEO). 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. While we experienced hedging losses in the quarter, the decrease was more than offset by PFSIs production income. Thank you Isaac. Based on data from MarketBeat.com, the company has a consensus rating of Hold and a consensus target price of $69.50. This high level of efficiency was largely due to our cloud-based, proprietary servicing system, otherwise known as SSE. Recent economic forecasts for 2021 originations range from $3.6 trillion to $4.2 trillion, while average forecast for 2022 originations remained strong at $2.7 trillion. #PennymacCaresVisit PENNYMAC.COM for details about how were assisting our family of customers during the COVID-19 crisis. The Servicing segment recorded pretax income of $42 million, down from pretax income of $111.7 million in the prior quarter and up from a pretax loss of $5.1 million in the fourth quarter of 2019. Looking at the consumer direct channel in the center column, we originated $8 billion in UPB of loans, up 27% from the prior quarter and 113% from the fourth quarter of 2019. This net worth estimate does not reflect any other assets that Mr. Spector may own. Finally, broker direct originations totaled $4.5 billion in UPB in the fourth quarter, up 28% from the prior quarter and 215% percent from the fourth quarter of 2019.