Mortgage Daily Logo
mortgage news from industry experts

Record Mortgage Originations at PennyMac

Quarterly and annual home-lending volume at PennyMac Financial Services Inc. climbed to the highest level ever achieved.

In its fourth-quarter 2016 earnings report, the Westlake Village, California-based firm disclosed pre-tax income of $129 million.

Earnings retreated from the prior three-month period, when the total was $139 million, but were up from $79 million a year prior.

From Oct. 1, 2016, through year-end 2016, PennyMac originated a record $22.076 billion. Business improved from $20.597 billion in the third quarter and doubled from $11.058 billion in the fourth-quarter 2015.

Fourth-quarter 2016 production included $20.036 billion in correspondent acquisitions and $2.040 billion in consumer-direct originations.

For all four quarters of last year, overall originations amounted to a record $69.672 billion, growing from $48.448 billion in 2015.

PennyMac says its market share of the origination market widened to 3.4 percent last year from 2.8 percent in 2015.
Within just correspondent lending, market share was 10.9 percent. Further expansion of market share is expected this year.

There were 522 correspondent seller relationships in place as of year-end 2016, more than the 504 as of Sept. 30.

First-quarter 2017 business has likely slowed based on total rate locks, which fell to $21.6 billion in the fourth-quarter 2016 from $25.0 billion three months earlier.

As of Dec. 31, 2016, PennyMac serviced
$129.177 billion in residential loans. The servicing portfolio grew from $121.313 billion at the end of September and $110.603 billion at the end of 2015.

In addition, $60.864 billion was subserviced as of the most-recent date.

The weighted-average servicing fee rate was 0.31 percent.

Delinquency of at least 60 days closed out last year at 3.1 percent, worsening from 2.9 percent at the end of the third quarter and at the end of 2015.

Last year finished with 3,099 people on the payroll.
Headcount was up from more than 2,900 employees three months earlier and 2,523 people one year earlier.

Popular posts

How Long Does It Take to Refinance a Mortgage
How Long Does It Take to Refinance a Mortgage

So, you’re interested in refinancing your mortgage. Maybe you want some extra capital to do that home project you’ve always dreamed of, interest rates are nearing record lows, or you want to start consolidating debt. Regardless of the motivation behind the refinance,...

How Does Refinancing a Mortgage Work
How Does Refinancing a Mortgage Work

A home purchase is considered an investment, and a robust one at that. Savvy owners are constantly looking for new ways to reduce debt, save money, pay less in interest, and ultimately build equity. Refinancing is one way to leverage your investment and do just that....

What Does It Mean to Refinance Your Home
What Does It Mean to Refinance Your Home

You can think of refinancing your mortgage as a debt redo. Essentially, you’ll swap out the existing loan for a new one - ideally with better terms and conditions. Only this time it could help you save money on high mortgage payments, rather than just borrow it....

Setting up the Utilities in My New House
Setting up the Utilities in My New House

All the tedious, time-consuming home closing documents have been signed, sealed, and delivered. Your belongings are packed into what seems like a million boxes and you have a solid plan to haul all your existing furniture to the new place. Just as your boxes and...

When Is My First Mortgage Payment Due?
When Is My First Mortgage Payment Due?

Navigating your way through a brand new mortgage loan can be a difficult task, especially for first time homeowners. After handing over a large sum of money for the down payment and closing costs, it’s important to pay attention to the timing of your first mortgage...


Don’t worry, we don’t spam

calculate your monthly mortgage payment

Related Topics

Helpful Links

Daily mortgage rate trends

Best mortgage lenders

First-time homebuyers programs by state

Loan limits by state

Types of mortgages

APR vs interest rate

Understanding PMI

Related Posts