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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.

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