With rates at current levels, we expect a continued meaningful contribution to overall servicing profitability. Operator: This concludes PennyMac Financial Services, Inc.'s fourth quarter earnings discussion. 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. Investors of record on Tuesday, February 14th were issued a $0.20 dividend. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. David has made over 67 trades of the Pennymac Mortgage Investment Trust stock since 2013, according to the Form 4 filled with the SEC. David Spector: Thank you, Dan. With rates at current levels, we expect a continued meaningful contribution to overall servicing profitability. PennyMac Financials owned servicing portfolio reported a prepayment speed of 5.4% in the fourth quarter, down from 9% in the prior quarter. 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. PennyMac Financial Services, Inc. (NYSE:PFSI) Q4 2022 Earnings Call Transcript February 2, 2023. Contacts. 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. Company profile for PennyMac Financial Services Inc. including key executives, insider trading, ownership, revenue and average growth rates. Segment revenue was $9.9 million, down 4% 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. Even as interest rates increased, the UPB of our production volume on a quarterly basis consistently represented 4% to 5% of the total servicing portfolio balance. 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. We see several investors trying to strike it rich in options market by risking their entire savings. Age : 59. Here are a few tips for establishing great contacts. A number of hedge funds and other institutional investors have recently bought and sold shares of PFSI. Were Hedge Funds Right About PennyMac Financial Services Inc (PFSI)? Servicing income, certain secondary market gains, layoffs and other cost-cutting did more to offset the impact of the marketwide originations slump at PennyMac Financial Services than analysts expected, but its second-quarter earnings still fell relative to comparable prior periods. Plano, TX 75075-8413. View detailed PFSI description & address. Is this happening to you frequently? Originations in our broker direct channel totaled $1.1 billion and locks totaled $2 billion, also down meaningfully from the prior quarter, reflecting a smaller market, seasonal impacts and the continuation of intense competition from channel leaders. other compensation of $82,229 . Most recently he sold 12,750 units of PMT stock worth $741,030 on 12 December 2022.. These are often email forwarders, allowing organizations with a volatile staff or high turn-over rate to avoid . The slides that accompany this discussion are available on PennyMac Financial's website at pfsi.pennymac.com. While 2022 was a challenging year for the mortgage industry due to the rapid and significant increase in interest rates, our operating discipline combined with the meaningful actions we took throughout the year to right-size our business for a smaller origination market, led to strong financial performance. 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. Visit Website. Active Calabasas, CA Chairman for Pennymac Corp. (818)224-7442. Chang (pictured), who has been with PennyMac since 2008, will step down from his roles at the end of the year. And I'm pleased to be joined by PennyMac Financial Services CEO,. Conventional acquisitions for PMT's account totaled $6.8 billion, down from $10.2 billion in the prior quarter, as a result of the previously mentioned sales to PFSI. Close extra sharing options. 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. Dan Perotti: Thanks, Doug. Four research analysts have rated the stock with a hold rating and three have issued a buy rating to the stock. We estimate broker originations in January totaled $500 million and locks totaled $800 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. In a free sample issue of our monthly newsletter we analyzed Warren Buffetts stock picks covering the 1999-2017 period and identified the best performing stocks in Warren Buffetts portfolio. View David Spector's business profile as Chairman & Chief Executive Officer at PennyMac Mortgage Investment Trust. While overall delinquency rates increased from the prior quarter, they remain consistent with our expectations for a primarily government-insured or guaranteed portfolio. As Chairman and Chief Executive Officer at PennyMac Financial Services, Inc., David A. Spector made $13,575,224 in total compensation. Chief Credit Officer. Production revenue margins were lower across all three channels. PFSIs Board of Directors also declared a fourth quarter cash dividend of $0.20 per share. Total production, including acquisitions made by PMT, was $109 billion in UPB. Thank you. Though profitability was down from last year, our strong financial performance enabled us to continue returning capital to shareholders while simultaneously positioning the company for success in the future. With Skype, And with that, I would like to turn it back to David for some closing remarks. Net assets under management totaled $2 billion as of December 31st, down 3% from September 30th. Finally, our Investment Management segment delivered pretax income of $1.2 million, down from $1.6 million in the prior quarter. As you will see on Slide 12, 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 the conventional correspondent loans it retains. As David mentioned earlier PFSIs net income was $38 million or diluted earnings per share of $0.71. In January, we estimate that correspondent acquisitions totaled $6.8 billion and locks totaled $6.1 billion. Email; Show more sharing options. The UPB of completed modifications was $2.3 billion, down slightly from the prior quarter while EBO loan volumes remained low. 5 MLS prospects to keep an eye on this season. We estimate that over the past 12 months we represented approximately 15% of the channel overall. Following the sale, the chief executive officer now directly owns 450,604 shares in the company, valued at approximately $27,396,723.20. For example S&P 500 Index returned 43.4% in 1958. We estimate originations in our consumer direct channel in January totaled $300 million, and locks totaled $700 million. You can enter your email below to get our FREE report. Doug Jones: Thanks, David. 51% were conventional loans and 49% were government-insured or guaranteed loans. 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. 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. Thanks, David. 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. PennyMac Mortgage Investment Trust. Please disable your ad-blocker and refresh. Warren Buffett never mentions this but he is one of the first hedge fund managers who unlocked the secrets of successful stock market investing. This led to servicing portfolio growth of 8% for the year to more than $550 billion in UPB with nearly 2.3 million customers. 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. 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. We encourage investors with any questions to reach out to our Investor Relations team by email or phone. Alethea Espino. Billionaire Leon Cooperman Is Buying These 5 Stocks. Please. and Farhad Nanji, Director 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. 5. We and our partners use data for Personalised ads and content, ad and content measurement, audience insights and product development. Sherman Oaks, California, United States View. See 5 answers. PMT - key executives, insider trading, ownership, revenue and average growth rates. Contribute. 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. Get our editors daily picks straight in your inbox! The shares were sold at an average price of $60.80, for a total transaction of $912,000.00. See also 12 Top Performing Energy Stocks in Januaryand 25 Countries with Most Billionaires. Production revenue margins were lower across all three channels. So while PFSIs ROE is projected to trend towards its pre-COVID range during 2023, I remain confident in our ability to continue delivering strong financial performance as the market returns to more normalized conditions over time. PENNYMAC has 5,001 to 10,000 employees. PFSI PennyMac Financial Services: David Spector CEO: Sell: 15,000 shares @ $60.80: $912,000.00: 2/27/2023: $61.42: PFSI PennyMac Financial Services: David Spector CEO: Sell: 26,169 shares @ $60.64 . This information is according to proxy statements filed for the 2021 . 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. Thank you. 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. Contact Information. 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. These results include a non-recurring tax rate change which negatively impacted earnings per share by $0.22. The stock was sold at an average price of $60.80, for a total transaction of $912,000.00. 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. The increase in tax rate resulted in the repricing of PFSIs net deferred tax liability, which was the primary driver of a non-recurring tax expense of approximately $11.9 million in the quarter. 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. 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. stock awards of $1,688,936 , Sign Up. As you can guess, Warren Buffetts #1 wealth building strategy is to generate high returns in the 20% to 30% range. . And I'm pleased to be joined by PennyMac Financial Services CEO,. We and our partners use cookies to Store and/or access information on a device. Based on data from MarketBeat, the stock currently has an average rating of Hold and an average target price of $69.50. 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. As David discussed earlier, these acquisition and origination volumes continue to drive the organic growth of our servicing portfolio. Presenter SpeechMark DeVries Hello. Again, we implemented meaningful expense savings and capacity reductions early and throughout 2022 given the anticipated significant decline in the overall market, and we took additional actions in the fourth quarter. Job Department. Anne McCallion, Director, That means much bigger government. 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. We estimate the committed pipeline at January 31st was $800 million. Log in . Save my name, email, and website in this browser for the next time I comment. Thank you. See also 12 Top Performing Energy Stocks in Januaryand 25 Countries with Most Billionaires. Though profitability was down from last year, our strong financial performance enabled us to continue returning capital to shareholders while simultaneously positioning the company for success 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. Manage Settings Management segment, net assets under management were $2 billion at quarter end, down slightly from the prior quarter due to PMT's financial performance. Mr. David Spector, President/CEO; . I believe he will not only run again next year, but could win a 2nd Presidential term and by a LANDSLIDE. 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. PennyMac has laid off a total of 475 employees since March 1st. 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. We estimate that in 2022 we represented approximately 2% of the origination volume in the channel. **According to Inside Mortgage Finance ranking of Top 25 Primary Mortgage Servicers by dollar amount for Q4 2022. In addition, the board of directors at PennyMac Financial . Originations in our broker direct channel totaled $1.1 billion and locks totaled $2 billion, also down meaningfully from the prior quarter, reflecting a smaller market, seasonal impacts and the continuation of intense competition from channel leaders. PennyMac Financial Services, Inc operates as a holding company. For any questions, please visit our website at pfsi.pennymac.com, or call our Investor Relations department at 8182644907. While PennyMac Financial is not insulated from the challenges presented by todays mortgage market, I believe we are the best-positioned in the industry to continue executing with our balanced business model in 2023. David is based out of Agoura Hills, California, United States and works in the Financial Services industry. We estimate that over the past 12 months we represented approximately 15% of the channel overall. The stock was sold at an average price of $60.80, for a total value of $912,000.00. David Spector - Chairman and Chief . . Total correspondent loan acquisition volume in the fourth quarter was $20.8 billion. 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. 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. These results include a non-recurring tax rate . 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. While many industry participants have taken the appropriate steps to reduce capacity, it has been happening slowly and we believe overcapacity still remains. As David mentioned earlier PFSI's net income was $38 million or diluted earnings per share of $0.71. While overall delinquency rates increased from the prior quarter, they remain consistent with our expectations for a primarily government-insured or guaranteed portfolio. With his passion and vision, Stan led and . | 3 Mrz 2023. In the last 8 years, insiders at Pennymac Financial Services, Inc have sold an estimated value of $316.31M Importantly, the $650 million of Ginnie Mae MSR term notes due in August 2023 also contain an optional extension at PFSIs discretion. David Spector. David Spector's profile - email address, phone number, address and contact information | get free emails&phones for business contacts. Net assets under management totaled $2 billion as of December 31st, down 3% from September 30th. Jeereddi Investments LP Increases Position in Alphabet Inc. Boothbay Fund Management LLC Buys Shares of 4,680 Sonoco Products. In a few years, he will reach at another point to reach and will achieve many popularities. Duration: 19 minutes. I believe it will make millions of Americans vastly wealthier. We estimate broker originations in January totaled $500 million and locks totaled $800 million. 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. 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. Thank you. Thanks, Doug. David A. Spector (updated October 5, 2014) Page 1 of 15 . Get Email Updates. Dan PerottiDavid SpectorDoug JonesEarnings Call TranscriptIsaac GardenNYSE:PFSIQ4 2022Yahoo FinanceShow moreShow less, Despite Joe Bidens age, raging inflation, and his dismal 45% approval level. Companies. 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. . As Chairman & CEO of Pennymac Financial Services, Inc, David Spector has a total base salary of $1,000,000 . 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. UBS Group AG Reduces Stock Holdings in Builders FirstSource, Inc. Boothbay Fund Management LLC Has $299,000 Stock Holdings in GMS Inc. 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. Our servicing business provides ongoing cash flow to support business operations and produces low cost leads to our consumer direct business in the future. 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. 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. PennyMac's results were published this month. 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 A. Spector (updated October 5, 2014) Page 14 of 15 . StockNews.com upgraded PennyMac Financial Services from a sell rating to a hold rating in a report on Saturday, February 11th. Sign Up . Since then, we have become one of the largest mortgage producers and servicers in the country, while also providing strong returns to our stakeholders. Purchase loans were 85% of total originations. "Stan leaves an indelible mark not only on PennyMac, but on the mortgage industry he helped to build and shape. United States. 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. Thank you. Our servicing business provides ongoing cash flow to support business operations and produces low cost leads to our consumer direct business in the future. Boothbay Fund Management LLC Purchases Shares of 4,711 Graco Inc. UBS Group AG Reduces Stock Holdings in Builders FirstSource, Inc. (NYSE:BLDR), Boothbay Fund Management LLC Has $299,000 Stock Holdings in GMS Inc. (NYSE:GMS), Alphabet Inc. (NASDAQ:GOOG) Shares Bought by Capital Square LLC, Jeereddi Investments LP Increases Position in Alphabet Inc. (NASDAQ:GOOG), Boothbay Fund Management LLC Buys Shares of 4,680 Sonoco Products (NYSE:SON), Boothbay Fund Management LLC Purchases Shares of 4,711 Graco Inc. (NYSE:GGG), MML Investors Services LLC Buys 3,360 Shares of Wolfspeed, Inc. (NYSE:WOLF), Boothbay Fund Management LLC Takes Position in Loews Co. (NYSE:L), Boothbay Fund Management LLC Sells 9,611 Shares of Portillos Inc. (NASDAQ:PTLO), MML Investors Services LLC Sells 139 Shares of Extra Space Storage Inc. (NYSE:EXR), Lazard Asset Management LLC Has $308,000 Stake in Marqeta, Inc. (NASDAQ:MQ), Lazard Asset Management LLC Has $329,000 Position in The Williams Companies, Inc. (NYSE:WMB), Boothbay Fund Management LLC Invests $267,000 in Synaptics Incorporated (NASDAQ:SYNA), 7,728 Shares in SEI Investments (NASDAQ:SEIC) Acquired by Ergoteles LLC, Lazard Asset Management LLC Trims Stake in iQIYI, Inc. (NASDAQ:IQ), 2,549 Shares in Hess Co. (NYSE:HES) Acquired by Boothbay Fund Management LLC, The Interpublic Group of Companies, Inc. (NYSE:IPG) Shares Sold by Lazard Asset Management LLC, Boothbay Fund Management LLC Acquires 38,651 Shares of Consolidated Communications Holdings, Inc. (NASDAQ:CNSL), Boothbay Fund Management LLC Takes $260,000 Position in Advanced Drainage Systems, Inc. (NYSE:WMS), Boothbay Fund Management LLC Takes $288,000 Position in ShotSpotter, Inc. (NASDAQ:SSTI). (I received his email on June 22, 2013) Figure 3: Loansafe.org member (register first - for free) "oneofsubstance" (4-23-2012) . We estimate that in 2022 we represented approximately 2% of the origination volume in the channel. 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. Sie knnen Ihre Einstellungen jederzeit ndern, indem Sie auf unseren Websites und Apps auf den Link Datenschutz-Dashboard klicken. 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. Donald White who sold, In the last 8 years, insiders at Pennymac Financial Services, Inc have sold an estimated value of, https://www.sec.gov/Archives/edgar/data/1745916/000119312521116436/d112997ddef14a.htm, Mailing address is C/o Pennymac, 6101 Condor Drive Upper Level Moorpark CA 93021 CA.