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. This growth will be crucial in further expanding our direct lending channels and supporting our growing servicing infrastructure. PennyMac Financial Services can also be reached via phone at (818) 224-7442 and via email at pfsi_ir@pnmac.com. 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. The stock was sold at an average price of $60.80, for a total value of $912,000.00. 112 S. Lakeview Canyon Rd, Ste. In the fourth quarter, the pretax income was $234.1 million, a 31% decrease from . We also repurchased approximately 1.6 million shares of PFSIs common stock, at an approximate cost of $89.3 million. Approve of CEO. Now I'd like to begin by introducing David Spector, PennyMac Financial's Chairman and Chief Executive Officer, who will review the company's second quarter 2021 results. Director, 10% Owner Stanford L Kurland sold 31,000 shares of PFSI stock on 01/07/2021 at the average price of $60.12. In the last year, insiders at the real estate investment trust sold shares 23 times. Margins in our consumer direct channel still remain elevated relative to historical levels. 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). GuruFocus has detected 5 severe warning signs with PennyMac Financial Services Inc. . StockNews.com raised PennyMac Financial Services from a sell rating to a hold rating in a report on Saturday, February 11th. Production segment pretax income was $244.4 million, down 33% from the prior quarter and 55% from the second quarter of 2020. We built our correspondent business into the largest in the U.S. over the last decade while at the same time growing our servicing portfolio, primarily organically. Government correspondent locks were $19.7 billion in UPB, down 2% from the prior quarter and up 22% from the fourth quarter of 2019. SSE allowed us to quickly implement changes that enabled us to complete the roll-out of large programs, like the CARES Act forbearance program, in a fast and cost-effective manner. And the committed pipeline at July 31 was $1.9 billion. So while refinance origination volumes are expected to decline significantly over the next several years as a result of higher interest rates, we believe the outlook for PennyMac Financial remained strong, given our large profitable and growing servicing business, our position as one of the largest producers of purchase money loans in the U.S. and the continued expansion of our direct lending businesses. 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. Are you interested in helping the next generation of homeowners fulfill their dream of home? Warning! Our investment management segment delivered pretax income of $4.1 million, up from $1.4 million in the prior quarter as a result of incentive fees earned and down from $4.7 million in the second quarter of 2020. Thanks, Andy. 10 Ratings. David Spector's most profitable transaction was an Informative Sell of PMT stock on March 22, 2019. What was David Spectors latest transaction? Book value per share grew 5% to $54.49 at June 30. Thanks, Andy. 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. Our higher-margin consumer direct lending channel continued to expand, producing record locked and funded volumes during the quarter, which we estimate has resulted in a significant increase in market share. The direct lending channels continued to have an outsized impact on PFSIs production earnings in the fourth quarter. PennyMac Financial Services can also be reached via phone at (818) 224-7442 and via email at [emailprotected] Learn More on David A. Spector's contact information. Presenter SpeechMark DeVries Hello. 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 correspondent mix percentage was essentially unchanged from the previous quarter, as 35% of the acquisitions were government loans and 65% were conventional loans. 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. PennyMac Financial reported strong earnings in the fourth quarter driven by core production and servicing results. January 25, 2021. Specifically, backtested results do not reflect actual trading or the effect of material economic and market factors on the decision-making process. Good morning and thank you for joining us. As you will see on slide 10, 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 conventional correspondent loans. While Stan had retired from day-to-day responsibilities at PennyMac, he remained a trusted advisor and dear friend. This chart shows David Spector's buying and selling at PennyMac Financial Services by year and by quarter. Is this happening to you frequently? 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. Enter your email address below to get our daily insider buying and selling report. The total sale was $1.7 million. 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. 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. While margins across channels have come in lower from the third quarter, we saw the shift in Government correspondent margins come in the most towards more normalized levels. 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. Our goal is to be a trusted financial partner that you can count on as long as you own your home. We have made significant investments to scale our end-to-end mortgage fulfillment process while we expect the substantial investments in technology we have made to continually improve the customer experience over time. 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. Mr. Spector owns 650,183 shares of PennyMac Financial Services stock worth more than $40,948,525 as of March 4th. Revenue per fallout-adjusted lock was 71 basis points, down from 140 basis points in the prior quarter. He currently serves as a senior advisor to TPG Capital, a global private investment firm, and . During 2020 we added over 2,000 employees to the PennyMac team to expand our workforce to more than 6,000. While our employee base grew by 60% during the year, our production volumes grew by 67% and our earnings increased by 328%. On Monday, February 27th, David Spector sold 15,000 shares of PennyMac Financial Services stock. For servicing on your existing mortgage account with Pennymac. A free inside look at company reviews and salaries posted anonymously by employees. 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. Mr. David Spector, CEO Mr. Andrew Chang, CFO Mr. Derek Stark, Chief Legal Officer Additional Contact Information Phone Numbers (800) 777-4001 Other Phone Email Addresses Email this. Isaac Garden - Investor Relations. Advances are expected to increase over the next few quarters as many property tax payments become due toward the end of the calendar year. David Spector Chief Investment Officer Agoura Hills, California, United States 1K followers 500+ connections Join to connect Penny Mac University of California, Los Angeles Activity Thank you. 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 . the financials in more detail later on in this discussion. PennyMac Financial's servicing portfolio totaled $473 billion in unpaid principal balance at June 30, up 5% from the end of the prior quarter and 22% from June 30, 2020. Get contact details including emails and phone numbers Stockholders of record on Tuesday, February 14th were given a dividend of $0.20 per share. Chief Enterprise Ops Officer Jeffrey Grogin sold 13,521 shares of PFSI stock on 01/04/2021 at the average price of $62.53. BBB File Opened: 2/5/2015. 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. Jones brings more than 25 years of financial services industry experience to PennyMac Financial Services. T. Rowe Price Investment Management Inc. raised its position in shares of PennyMac Financial Services by 5.4% during the 4th quarter. Learn More on PennyMac Financial Services' active insiders. David Spector - Chairman and Chief . We encourage investors with any questions to reach out to our Investor Relations team by e-mail or phone. Thank you, David. 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. 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. PennyMac. Stanford Kurland. In total, these strong acquisition and origination volumes continue to drive the organic growth of our servicing portfolio despite elevated prepayment activity. The technology based digital marketing platform, coupled with dedicated loan officers and an efficient operating processes, gives PennyMac a strong foundation for continued growth. Stanford Kurland, who went from being pushed out of the No. Importantly, and as Doug Jones, Senior Managing Director and Chief Mortgage Banking Officer, will expand on in his section of the presentation, we sold $3.4 billion in UPB of early buyout loans to third-party whole loan investors, thus reducing the risk associated with holding these loans and increasing our capital efficiency. Net income in the fourth quarter was the second highest in the history of the company. 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. Licensed by the Department of Financial Protection and Innovation under the California Residential Mortgage Lending Act. Production revenue margins remain elevated, especially with PFSIs growth in consumer and broker direct volumes. Business Incorporated: This hiring mostly occurred in three key areas, servicing, direct lending and fulfillment services. The prepayment speeds of PennyMac Financials subserviced portfolio which includes mostly Fannie Mae and Freddie Mac mortgage servicing rights owned by PMT decreased slightly to 38.9% from 39.2%. The shares were sold at an average price of $60.64, for a total transaction of $1,586,888.16. This balanced business helps generate strong results across a variety of market and rate environments. How can I follow the stock ratings of top corporate insiders? Learn More on PennyMac Financial Services' active insiders. Further, backtesting allows the security selection methodology to be adjusted until past returns are maximized. PFSI's Investment Management segment delivered increased profitability as a result of incentive fees earned based on PMT's profitability over the last 4 quarters. Learn More on David A. Spector's trading history. And finally, PFSIs Board of Directors approved an increase to its stock repurchase authorization from $500 million to $1 billion of outstanding common stock. Interest rate lock volume was $5.7 billion in UPB, up 4% from the third quarter and 234% from the fourth quarter of 2019. The company has a market cap of $3.09 billion, a price-to-earnings ratio of 7.36 and a beta of 1.49. The Investment Management segment consists of sourcing, performing diligence, bidding and closing investment asset acquisitions, managing correspondent production activities and managing the acquired assets. Payoff-related expense, which includes interest shortfall and recording and release fees related to prepayments, remains elevated and increased by $8.3 million quarteroverquarter. This expertise and experience has served us well, enhancing our ability to help many borrowers affected by the COVID-19 pandemic. The firm engages in the production and servicing of U.S. residential mortgage loans. Our costs vary by channel, ranging from approximately 15 basis points in correspondent to 150 basis points in consumer direct. And with that, I would like to turn it back to David for some closing remarks. This quarter, we increased meaningful the number of partnerships we have with these third parties and also expanded the volumes of sales to our existing partners, driving the quarterly increase in the EBO loan volume I mentioned earlier. 3043 Townsgate Rd Ste 200, Westlake Village, CA 91361-3027. In January, our broker direct originations totaled $1.4 billion in UPB, and locks totaled $2.1 billion. The origination market continues to be strong on a historical basis as mortgage rates have recently returned to near record lows. This net worth estimate does not reflect any other assets that Mr. Spector may own. Learn More about David A. Spector's net worth. Similarly, new customer acquisition or non-portfolio interest rate lock commitments were $1.5 billion, essentially unchanged from the prior quarter and up from $274 million in the second quarter of 2020. While 2020 was a record, we have a long track record of strong performance. David works at Pennymac Loan Services, Llc as Chief Investment Officer. Trade/service marks are the property of PennyMac Loan Services, LLC and/or its subsidiaries or affiliates. 130 Westlake Village, CA, 91362 Get Directions. Main Telephone (818) 224-7442 Primary Address 3043 Townsgate Road Suite 200 Westlake Village, CA 91361 USA Fiscal Close December Founded 2008 David Spector. These valuation declines were primarily driven by significant levels of prepayment activity and early buyouts. Economic forecasts are calling for the mortgage origination market to remain strong in 2021, and while these forecasts vary, they currently average $3.3 trillion. And I'm pleased to be joined by PennyMac Financial Services CEO,. As you can see on page 11 of our slide presentation, correspondent acquisition volumes totaled $56.9 billion in UPB in the fourth quarter, up 28% from the prior quarter and 53% from the fourth quarter of 2019. Years in Business: 14. Business Started: 3/25/2008. As a management team, we are committed to putting the health and safety of our team members at the heart of our decisions. The return on the trade was 60.70%. Licensed by the N.J. Department of Banking and Insurance. David Spector is currently Chairman of the Board, President and Chief Executive Officer at PennyMac - View - PennyMac org chart However, he will become a special advisor to David Spector, chairman and chief . 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. Our consumer direct lending division produced record origination and lock volumes again despite a smaller origination market in the second quarter. Please disable your ad-blocker and refresh. Net income in the fourth quarter was the second highest in the history of. 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. Government loan acquisitions in the quarter totaled $16.2 billion, down 7% from the prior quarter and up 47% from the second quarter of 2020. Im proud of the actions we have taken and the dedicated management team across the company that has helped put these plans into action. If you have additional questions or would like to speak with a Pennymac representative, please call (800) 777-4001. 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. We also remain very active repurchasing shares driven by our medium-term expectations for PFSI's return on equity. Many of these employees were on-boarded virtually and have begun their PennyMac careers working from home. {{ userNotificationState.getAlertCount('bell') }}. 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. All of these workflow and technology investments will improve the experience for the consumer and for the broker, improve productivity, specifically in sales and operations, which will enable higher volumes at a reduced cost to originate. The average return per transaction made by David Spector is 3.50%. Net assets under management totaled $2.3 billion as of June 30, down slightly from March 31 and up 5% from June 30, 2020. As Chairman & CEO of Pennymac Financial Services, Inc, David Spector has a total base salary of $1,000,000 . As you can see in greater detail on slide 21, EBO loan-related revenue increased significantly to $233.3 million as a result of continued loss mitigation activity with borrowers emerging from forbearance while related expenses were modest as most of the loans bought out returned to performing status immediately. Our costs vary by channel, ranging from approximately 15 basis points in correspondent to 150 basis points in consumer direct.