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. And with that, I would like to turn it back to David for some closing remarks. We estimate the committed pipeline at January 31st was $700 million. Finally, given the scale we have achieved, we have begun offering our customers, homeowners and title insurance through joint ventures, which we expect will provide recurring fee income over time as the businesses grow. Our servicing business provides ongoing cash flow to support business operations and produces low cost leads to our consumer direct business in the future. The company has a current ratio of 0.55, a quick ratio of 0.55 and a debt-to-equity ratio of 1.46. We stand ready and able to absorb the volumes left by Wells Fargos exit and remain committed to being a strong capital partner for independent mortgage companies throughout the country. As David mentioned earlier PFSI's net income was $38 million or diluted earnings per share of $0.71. Of this total $1,000,000 was received as a salary, $8,864,938 was received as a bonus, $1,101,254 was received in stock options, $2,537,435 was awarded as stock and $71,597 came from other types of compensation. Despite elevated levels of competition currently, we believe PennyMac is well-positioned for market share growth in the channel over time given our strong capital position, operational excellence and the exit of channel participants. 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 PFSI's purchase of lower margin conventional loans from PMT. David Spector Thank you, Dan. 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. secretly invested like a closet index fund), Warren Buffett would have pocketed a quarter of the 37.4% excess return. UBS Group AG Reduces Stock Holdings in Builders FirstSource, Inc. Boothbay Fund Management LLC Has $299,000 Stock Holdings in GMS Inc. Our servicing portfolio ended the year at $552 billion in unpaid principal balance as additions from loan production continued to exceed prepayment activity. Jeereddi Investments LP Increases Position in Alphabet Inc. Boothbay Fund Management LLC Buys Shares of 4,680 Sonoco Products. While the Pennymac workforce stays home to help flatten the curve, we know first responders,. 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. While overall delinquency rates increased from the prior quarter, they remain consistent with our expectations for a primarily government-insured or guaranteed portfolio. 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. The growth of our servicing portfolio continues to differentiate PFSI from its competition, serving as an increasingly important asset, which I will discuss later on. Dan Perotti, PFSIs Senior Managing Director and Chief Financial Officer will provide greater detail later on in this discussion. Finally, our Investment Management segment delivered pretax income of $1.2 million, down from $1.6 million in the prior quarter. In order to protect the value of our MSR asset we utilize a comprehensive hedging strategy. This represents a $0.80 dividend on an annualized basis and a dividend yield of 1.29%. In fact, for the full year PFSI produced net income of $476 million, which drove book value per share up 16% from year end 2021. Acquisitions for PFSIs own account totaled $14 billion, up 15% from the prior quarter due to the acquisition of certain conventional loans from PMT in addition to government loans during the quarter. Mr. Spector owns 450,604 shares of PennyMac Financial Services stock worth more than $27,676,098 as of March 1st. In the fourth quarter, PennyMac Financial delivered net income of $38 million, or $0.71 in earnings per share. Save my name, email, and website in this browser for the next time I comment. The slides that accompany this discussion are available on PennyMac Financial's website at pfsi.pennymac.com. 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. 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. Share Show more sharing options. COVID-19 has robbed us of a great leader, mentor and friend," said David Spector, president and CEO of PennyMac Mortgage Investment Trust. $98.81K . As David discussed earlier, these acquisition and origination volumes continue to drive the organic growth of our servicing portfolio. (866) 549-3583. 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. With Skype, Wenn Sie Ihre Auswahl anpassen mchten, klicken Sie auf Datenschutzeinstellungen verwalten. We encourage investors with any questions to reach out to our Investor Relations team by email or phone. Importantly, the $650 million of Ginnie Mae MSR term notes due in August 2023 also contain an optional extension at PFSIs discretion. Servicing advances outstanding for PFSIs MSR portfolio increased to $520 million at year end from $397 million at September 30th due to seasonal property tax payments. Get Email Updates. Co-Founder/Chairman ThirdLove l Early Angel investor (30+ companies) l Working on Newco. View David Spector's email address (d*****@pennym***.com) and phone number. David A. Spector (updated October 5, 2014) Page 13 of 15 Here is Information from the SEC website (www.sec.gov): David Spector, Director, Officer: President and COO, PennyMac Mortgage Investment Trust (PMT) Corporate Offices: PennyMac, 6101 Condor Drive, Moorpark, CA 93021 (818) 224-7442. 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 . 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 increase in the effective tax rate was primarily driven by an increase in the provision tax rate, which increased from 26.5% to 26.85% for 2022. Job Department. And I'm pleased to be joined by PennyMac Financial Services CEO,. Log in . Ill now turn it over to Dan who will review PFSIs financial results for the quarter. **According to Inside Mortgage Finance ranking of Top 25 Primary Mortgage Servicers by dollar amount for Q4 2022. In his role as President of. PennyMac Financial Services, Inc. (PFSI) Westlake Village, CA. Segment revenue was $9.9 million, down 4% from the prior quarter. His storied career in mortgage banking spanned more than four decades. David served as President and Chief Investment Officer and President and Chief Operating Officer for PennyMac. Acquisitions for PFSI's own account totaled $14 billion, up 15% from the prior quarter due to the acquisition of certain conventional loans from PMT in addition to government loans during the quarter. 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. Total Compensation for Fiscal Year Ending in 2021: $13,575,224. Our servicing business provides ongoing cash flow to support business operations and produces low cost leads to our consumer direct business in the future. 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. The current estimated net worth of Pennymac Financial Services, Inc's Chairman & CEO, David Spector, is estimated to be about $244.5M . We estimate that in 2022 we represented approximately 2% of the origination volume in the channel. Payoff-related expenses, which include interest shortfall and recording and release fees related to prepayments, decreased by $1 million. 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. Companies. It operates through the following segments: Production, Servicing, and Investment Management. PMT - key executives, insider trading, ownership, revenue and average growth rates. Thank you, Isaac. As David mentioned earlier PFSIs net income was $38 million or diluted earnings per share of $0.71. 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 . 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. PennyMac Financial Services, Inc. (NYSE:PFSI) Q4 2022 Earnings Call Transcript February 2, 2023. 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 year Buffetts hedge fund returned 10.4% and Buffett took only 1.1 percentage points of that as fees. . David Spector. Goldman Sachs Group Inc. grew its holdings in PennyMac Financial Services by 322.3% during the first 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. David Spector received compensation valued at about $12,375,328 in 2020 after becoming Chairman & CEO. David Spector: Thank you, Isaac. . Since then, we have become one of the largest mortgage producers and servicers in the country, while also providing strong returns to our stakeholders. You can enter your email below to get our FREE report. 2004 - 2011. 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. David Spector: Thank you, Dan. Now, I'd like to introduce David Spector, PMT's chairman and chief executive officer, who will discuss the company's first-quarter 2021results. 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. We encourage investors with any questions to reach out to our Investor Relations team by email or phone. For any questions, please visit our website at pfsi.pennymac.com, or call our Investor Relations department at 8182644907. Production segment pretax income was negative $9 million. Overall production was solid in the fourth quarter with total production volumes down only 12% from the prior quarter, while industry volumes were down 34%, according to Inside Mortgage Finance. Your email address will not be published. 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. As a key part of our balanced business model, our large and growing servicing portfolio provides significant value to the company. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. Thank you, Dan. Use Google . Similarly, correspondent lock volume for PFSI's account was up 25% from the prior quarter. Is this happening to you frequently? To view the purposes they believe they have legitimate interest for, or to object to this data processing use the vendor list link below. 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. Linked companies : PennyMac Financial Services, Inc. - PennyMac Mortgage Investment Trust. Pennymac lays off 236 workers after upping tech, marketing investments. 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. Please. We and our partners use cookies to Store and/or access information on a device. This is the California-based company's third round of layoffs this year, as Pennymac had a workforce reduction of 236 employees in March and cut another 207 staff members in May. In order to protect the value of our MSR asset we utilize a comprehensive hedging strategy. This includes $24 million in gains realized related to the timing of revenue and loan origination expense recognition, hedging, pricing & execution changes, and other items. 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. Item 1.01 Entry into a Material Definitive Agreement. 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. In the last 8 years at Pennymac Financial Services, Inc, David Spector has sold an estimated value of $51.14M worth. Get Directions. Origination volumes for the fourth quarter were $1.1 billion and interest rate lock commitments were $1.7 billion, down meaningfully from last quarter due to seasonal impacts and declining refinance volumes.