PennyMac Financial Services

PennyMac Financial Services, Inc.

TypePublic company
Traded asNYSE: PFSI, Russell 2000 Component
IndustryMortgage lending and servicing
FounderStanford Kurland
HeadquartersWestlake Village, California, United States
Area servedUnited States
Products30-year fixed-rate mortgages, 15-year fixed-rate mortgages, FHA loans, VA loans, ARM loans, jumbo loans
SubsidiariesPennyMac Loan Services, LLC, PNMAC Capital Management, LLC.
  • PennyMac Financial Services, Inc. is an American residential mortgage company.
  • The company's business focuses on the production and servicing of U.S. mortgage loans and the management of investments related to the U.S. mortgage market.
  • Its subsidiary – PNMAC Capital Management, LLC. manages the PennyMac Mortgage Investment Trust (NYSE: PMT), a mortgage REIT.
  • The company conducts its business through a consumer-direct model, which relies on the Internet and call center-based staff to acquire and interact with customers across the country.
  • The company more than doubled its annual revenue in 2020, mainly attributable to favorable business conditions due the low interest rates resulting from the federal government's efforts to fight the economic impact of the COVID-19 pandemic.
  • PennyMac conducts business in three segments, namely mortgage production, mortgage servicing (together, production and servicing comprise mortgage banking activities), and investment management.
    1. The company's mortgage production focuses on the origination of first lien and government-backed or guaranteed mortgage loans through three methods:
      • Correspondent Lending. PennyMac acquires newly originated loans from small banks and independent originators.
      • Consumer Direct Lending. The retail lending business originates new prime credit quality, first lien residential conventional and government-insured mortgage loans on a national basis to allow customers to purchase or refinance their homes.
      • Broker Direct Lending. The company obtains loan application packages from nonaffiliated mortgage loan brokers, then underwrites and funds the resulting loans for sale to PennyMac Mortgage Investment Trust or investors.
    2. The loan servicing segment performs loan administration, collection, and default management activities.
    3. The investment management segment consists of management fees received from the PNMAC subsidiary for its management of the PennyMac Mortgage Investment Trust.

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