Earnings increased and servicing expanded at PennyMac Financial Services Inc. But originations were down from last year, and delinquency deteriorated.
In its second-quarter earnings report, the Westlake Village, California-based company disclosed pre-tax income during the period of $75 million.
Earnings
accelerated from the same three months last year, when pre-tax income was $58 million. Results were modestly better than $73 million in the prior period.
Most recently, earnings were comprised of $19 million in production income, $55 million in servicing income and $1 million in investment management income.
Single-family loan originations came to $15.924 billion during the second quarter. Although business improved from $14.329 billion the previous quarter, it was down from $17.579 billion in the same three months last year.
The latest period’s production was comprised of $0.911 billion in consumer-direct originations, 0.062 billion in wholesale lending and $14.951 billion in correspondent acquisitions.
Total first-half 2018 originations amounted to $30.253 billion.
Current-quarter originations are likely exceeding the volume of the second quarter based on interest rate locks, which climbed to $18.0 billion in the second quarter from $15.3 billion in the first quarter.
The company had 631 correspondent seller relationships
and 268 approved mortgage brokers.
PennyMac said it expects to introduce a prime jumbo product for its wholesale channel in the third quarter.
PennyMac serviced $178.264 billion as of mid-year 2018. The servicing portfolio grew from $173.487 billion three months prior and $157.224 billion one year prior.
In addition, another $81.215 billion was subserviced for advised entities.
The number of loans serviced as of the most-recent date was 1.328 million.
Sixty-day delinquency was 2.9 percent, worsening from 2.6 percent as of March 31 and 2.5 percent as of mid-2017.
Headcount exceeded 3,000 people. On the same date last year, staffing stood at 3,028 people..
