Key facts
- Third-quarter net income was $29 million, down 84% year-over-year but up 32% from the prior quarter.
- Origination volumes totaled $24.4 billion in UPB, down 30% from the second quarter.
- The production segment posted a pretax loss of $7 million.
- Servicing pretax income totaled $99 million, up from $22 million in the second quarter.
- The company plans to use proceeds from an MSR sale to pay down debt and repurchase shares.
Pennymac Financial Services Inc. reported a third-quarter profit of $29 million, a 84% decrease from the previous year but a 32% increase from the second quarter. The company is navigating a challenging origination environment due to high mortgage rates while its servicing business shows strength, bolstered by an upcoming acquisition. Cost-cutting measures, including layoffs and the sale of $29 billion in mortgage servicing rights for an estimated $490 million, are underway to reduce debt and improve leverage. Chairman and CEO David Spector announced leadership changes, with Kevin Ryan set to become CFO on January 1, 2027, and president Doug Jones retiring on June 30, 2027.