Although quarterly mortgage originations slowed at PennyMac Financial Services Inc., the lender sees an opportunity to grow its correspondent lending market share through more clients.
Home loan originations during the three months ended March 31 were $5.147 billion, first-quarter earnings data indicate.
Business slumped compared to the fourth-quarter 2013, when the Moorpark, Calif.-based company closed $5.984 billion.
In the first-quarter 2013, PennyMac funded $8.793 billion.
The latest quarter included $1.9 billion in loans “fee-based fulfillment activity.”
Correspondent acquisitions accounted for $4.833 billion of first-quarter 2014 production, while the retail channel was responsible for $0.314 billion.
PennyMac said its correspondent lending market share was 7.34 percent in the first quarter, while its retail lending share was just 0.22 percent.
There were 271 approved correspondent sellers as of March 31, 2014. PennyMac hopes to increase the number to 350 by the end of this year.
Interest rate lock commitments fell to $6.099 billion from $6.413 billion at the end of last year.
The servicing portfolio closed out the latest period at $50.789 billion, rising from $46.445 billion as of Dec. 31, 2013.
At the end of the first-quarter 2013, the servicing portfolio was $14.781 billion.
In addition, PennyMac subserviced $33.055 billion as of March 31, 2014.
Prior to taxes, earnings were $49 million, improving from $42 million earned three months earlier but short of the $55 million earned a year earlier.
Staffing exceeded 1,400 employees as of the end of March, up from 1,300 at the end of December.
