Thank you, Dan. Net assets under management totaled $2 billion as of December 31st, down 3% from September 30th. Ill now turn it over to Dan who will review PFSIs financial results for the quarter. For any questions, please visit our website at pfsi.pennymac.com, or call our Investor Relations department at 8182644907. The fourth quarter included non-recurring tax items, which resulted in an effective tax rate of 44.4% versus 27.1% in the prior quarter. Thus far, we have received very positive feedback on the new portal, garnering the attention of top brokers in the channel who are looking to expand their relationship with PennyMac. Revenue per fallout-adjusted lock in the fourth quarter was 21 basis points, down from 24 basis points in the prior quarter, driven primarily by PFSI's purchase of lower margin conventional loans from PMT. And it means its going to be harder than ever to hold onto any money you make. As Chairman and Chief Executive Officer and Trustee at PennyMac Mortgage Investment Trust, David A. Spector made $999,981 in total compensation. Dan PerottiDavid SpectorDoug JonesEarnings Call TranscriptIsaac GardenNYSE:PFSIQ4 2022Yahoo FinanceShow moreShow less, Despite Joe Bidens age, raging inflation, and his dismal 45% approval level. We remained active in stock buybacks and in the fourth quarter we repurchased 1.1 million shares of PFSI common stock at an average price of $46.99 for an approximate cost of $51 million. Servicing and sub-servicing revenues, the majority of which are cash, totaled more than $1.2 billion in 2022. Before we begin, let me remind you that our discussion contains forwardlooking statements that are subject to risks identified on Slide 2 that could cause our actual results to differ materially, as well as non-GAAP measures that have been reconciled to their GAAP equivalent in our earnings presentation. Repurchase levels were down meaningfully from the third quarter as we prefer to maintain flexibility to address potential risks and opportunities in the evolving market environment. Headquarters 3043 Townsgate Rd Ste 200 . PennyMac Financial Servicess dividend payout ratio is currently 9.54%. More than 15 years ago, we founded PennyMac with a vision to help revitalize the mortgage market and become a trusted partner in home ownership. S&P 500 Index generated an average annual compounded return of only 9.2% during the same 10-year period. These results include a non-recurring tax rate change which negatively impacted earnings per share by $0.22. Servicing advances outstanding for PFSIs MSR portfolio increased to $520 million at year end from $397 million at September 30th due to seasonal property tax payments. Finally, given the scale we have achieved, we have begun offering our customers, homeowners and title insurance through joint ventures, which we expect will provide recurring fee income over time as the businesses grow. Boothbay Fund Management LLC Purchases Shares of 4,711 Graco Inc. UBS Group AG Reduces Stock Holdings in Builders FirstSource, Inc. (NYSE:BLDR), Boothbay Fund Management LLC Has $299,000 Stock Holdings in GMS Inc. (NYSE:GMS), Alphabet Inc. (NASDAQ:GOOG) Shares Bought by Capital Square LLC, Jeereddi Investments LP Increases Position in Alphabet Inc. (NASDAQ:GOOG), Boothbay Fund Management LLC Buys Shares of 4,680 Sonoco Products (NYSE:SON), Boothbay Fund Management LLC Purchases Shares of 4,711 Graco Inc. (NYSE:GGG), MML Investors Services LLC Buys 3,360 Shares of Wolfspeed, Inc. (NYSE:WOLF), Boothbay Fund Management LLC Takes Position in Loews Co. (NYSE:L), Boothbay Fund Management LLC Sells 9,611 Shares of Portillos Inc. 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As Chairman and Chief Executive Officer at PennyMac Financial Services, Inc., David A. Spector made $13,575,224 in total compensation. Chief Credit Officer. I believe he will not only run again next year, but could win a 2nd Presidential term and by a LANDSLIDE. Revenue per fallout-adjusted lock in the fourth quarter was 21 basis points, down from 24 basis points in the prior quarter, driven primarily by PFSIs purchase of lower margin conventional loans from PMT. Use our Premium/VIP Service to contact David Spector by email now. The ex-dividend date of this dividend was Monday, February 13th. In his role as President of PennyMac Financial, Mr. Jones is responsible for all business activities relating to the company's loan production and servicing operations. Read more. Alethea Espino. Origination volumes for the fourth quarter were $1.1 billion and interest rate lock commitments were $1.7 billion, down meaningfully from last quarter due to seasonal impacts and declining refinance volumes. Realization of MSR cash flows increased by $7 million driven by higher average MSR values during the quarter. Their PFSI share price forecasts range from $60.00 to $82.00. That means much bigger government. Duration: 19 minutes. 10550 W Charleston Blvd STE A. Las Vegas, NV 89135-1012. These results include a non-recurring tax rate change which negatively impacted earnings per share by $0.22. View David A Spector's profile for company associations, background information, and partnerships. We and our partners use data for Personalised ads and content, ad and content measurement, audience insights and product development. The good news is, this powerful new force can help you make a lot of money even in a bear market. As I briefly mentioned earlier, our servicing portfolio growth can be attributed to the large volume of loans we produce every quarter, as we retain the MSRs on nearly all of our mortgage loan production. His investors didnt mind that he underperformed the market in 1958 because he beat the market by a large margin in 1957. More than 15 years ago we founded PennyMac with an unwavering focus on enterprise risk management and doing the right thing for our customers. Our proprietary servicing technology provides us with significant operational scale and workflow efficiencies that enable us to adapt quickly to forthcoming market conditions and regulations while also providing quality service to our customers. Chair of InspirASIAN BRG. Warren Buffett has been investing and compounding for at least 65 years. | 3 Mrz 2023. While overall delinquency rates increased from the prior quarter, they remain consistent with our expectations for a primarily government-insured or guaranteed portfolio. The increase in tax rate resulted in the repricing of PFSIs net deferred tax liability, which was the primary driver of a non-recurring tax expense of approximately $11.9 million in the quarter. Similarly, prepayment speeds in PennyMac Financials subserviced portfolio, which includes mostly Fannie Mae and Freddie Mac mortgage servicing rights owned by PMT were 4.4%, down from 6.9% in the prior quarter. We have a long history of successfully developing and deploying innovative mortgage technology, which has resulted in an extremely flexible and scalable platform as evidenced by our ability to rapidly right-size our cost structure. While PennyMac Financial is not insulated from the challenges presented by todays mortgage market, I believe we are the best-positioned in the industry to continue executing with our balanced business model in 2023. PFSI's owned servicing portfolio, which consists primarily of Ginnie Mae MSRs, had a 60-day plus delinquency rate of 3.8%, up from 3.5% at the end of the prior quarter, while our subserviced portfolio, consisting primarily of conventional loans, reported a 60-day plus delinquency rate of 0.6%, up from 0.5% at September 30th. The scale we have achieved in our correspondent business, combined with our low cost structure and operational excellence in the channel allow us to operate efficiently through the volatile market environment, even as other participants have exited or retreated from the channel. David Spector received compensation valued at about $12,375,328 in 2020 after becoming Chairman & CEO. While we respected Wells Fargo as a competitor in the correspondent channel, we believe their exit from the channel creates additional opportunities for PennyMac, particularly in the community bank and credit union sector of the market where they previously had a strong presence. $856.66K on November 2, 2022. Log in . Payoff-related expenses, which include interest shortfall and recording and release fees related to prepayments, decreased by $1 million. Currently, he occupies the position of Chairman at PNMAC Mortgage Opportunity Fund LLC, Chairman of . Thus far, we have received very positive feedback on the new portal, garnering the attention of top brokers in the channel who are looking to expand their relationship with PennyMac. David has made over 64 trades of the Pennymac Mortgage Investment Trust stock since 2013, according to the Form 4 filled with the SEC. We initially share this idea in October 2018 and the stock already returned more than 150%. An investor who invested $10,000 in Warren Buffetts hedge fund at the beginning of 1957 saw his capital turn into $103,000 before fees and $64,100 after fees (this means Warren Buffett made more than $36,000 in fees from this investor). It operates through the following segments: Production, Servicing, and Investment Management. As Chairman & CEO of Pennymac Financial Services, Inc, David Spector has a total base salary of $1,000,000 . Finally, Barclays boosted their price target on shares of PennyMac Financial Services from $58.00 to $69.00 and gave the stock an equal weight rating in a research report on Friday, February 3rd. A number of research firms recently weighed in on PFSI. (I received his email on June 22, 2013) Figure 3: Loansafe.org member (register first - for free) "oneofsubstance" (4-23-2012) . David has made over 67 trades of the Pennymac Mortgage Investment Trust stock since 2013, according to the Form 4 filled with the SEC. 2201 W Plano Pkwy STE 300. The UPB of completed modifications was $2.3 billion, down slightly from the prior quarter while EBO loan volumes remained low. We estimate that in 2022 we represented approximately 2% of the origination volume in the channel. Quarterly operating expenses in the fourth quarter were down 44% from average 2021 levels. To get here required a long and winding route. PennyMac widened its leadership position in correspondent lending as our strong capital position and consistent commitment to the channel provides our partners with the stability and support they need to successfully navigate the challenging mortgage market. Finally, given the scale we have achieved, we have begun offering our customers, homeowners and title insurance through joint ventures, which we expect will provide recurring fee income over time as the businesses grow. This net worth estimate does not reflect any other assets that Mr. Spector may own. Follow. He currently serves as a senior advisor to TPG Capital, a global private investment firm, and . Operating revenues increased from the prior quarter as loan servicing fees grew by $9 million primarily due to growth in our servicing portfolio. Revenue per fallout-adjusted lock for PFSIs own account was 55 basis points in the fourth quarter, down from 99 basis points in the prior quarter driven by lower volumes in Consumer Direct and lower overall margins. Purchase loans accounted for 93% of total correspondent acquisitions during the quarter. For any questions, please visit our website at pfsi.pennymac.com, or call our Investor Relations department at 8182644907. As I briefly mentioned earlier, our servicing portfolio growth can be attributed to the large volume of loans we produce every quarter, as we retain the MSRs on nearly all of our mortgage loan production. David Spector: Thank you, Dan. Production revenue margins were lower across all three channels. $3.6M on March 1, 2023. We estimate that over the past 12 months we represented approximately 15% of the channel overall. Thank you. Based on 7 ratings, David Spector ranks right below Stonegate Mortgage's CEO, James Smith. Production segment pretax income was negative $9 million. In fact, for the full year PFSI produced net income of $476 million, which drove book value per share up 16% from year end 2021. The growth of our servicing portfolio continues to differentiate PFSI from its competition, serving as an increasingly important asset, which I will discuss later on. This strategy is designed to moderate the impact of interest rate changes on the fair value of our MSR asset and also considers productionrelated income. Investors of record on Tuesday, February 14th were issued a $0.20 dividend. We estimate the committed pipeline at January 31st was $800 million. The CEO score provides an understanding of how employees feel about the CEO's leadership style and effectiveness at PennyMac Loan Services, LLC. Your email address will not be published. Mr. Spector owns 450,604 shares of PennyMac Financial Services stock worth more than $27,676,098 as of March 1st. The CEO of PENNYMAC is David Spector. Finally, Senvest Management LLC grew its stake in shares of PennyMac Financial Services by 12.6% in the 4th quarter. JMP Securities downgraded shares of PennyMac Financial Services from an outperform rating to a market perform rating in a research report on Wednesday, January 18th. Finally, our Investment Management segment delivered pretax income of $1.2 million, down from $1.6 million in the prior quarter. Isaac Garden: Good afternoon, and welcome to the Fourth Quarter and Full Year 2022 Earnings Discussion for PennyMac Financial Services, Inc. Revenue per fallout-adjusted lock for PFSI's own account was 55 basis points in the fourth quarter, down from 99 basis points in the prior quarter driven by lower volumes in Consumer Direct and lower overall margins. Search Contacts. The firm engages in the production and servicing of U.S. residential mortgage loans. Includes PMT loan acquisitions, for which PFSI earns a fulfillment fee upon loan funding. Since then, we have become one of the largest mortgage producers and servicers in the country, while also providing strong returns to our stakeholders. Servicing and sub-servicing revenues, the majority of which are cash, totaled more than $1.2 billion in 2022. So while PFSI's ROE is projected to trend towards its pre-COVID range during 2023, I remain confident in our ability to continue delivering strong financial performance as the market returns to more normalized conditions over time. The estimated net worth of David A. Spector is at least $27.68 million as of February 27th, 2023. We estimate that in 2022 we represented approximately 2% of the origination volume in the channel. Acquisitions for PFSIs own account totaled $14 billion, up 15% from the prior quarter due to the acquisition of certain conventional loans from PMT in addition to government loans during the quarter. Our servicing portfolio ended the year at $552 billion in unpaid principal balance as additions from loan production continued to exceed prepayment activity. Thanks, David. Now Ill turn it over to Doug Jones, PennyMacs President and Chief Mortgage Banking Officer, who will review our market share trends and fourth quarter mortgage banking results. Finally, our Investment Management segment delivered pretax income of $1.2 million, down from $1.6 million in the prior quarter. Purchase loans accounted for 93% of total correspondent acquisitions during the quarter. Again, we implemented meaningful expense savings and capacity reductions early and throughout 2022 given the anticipated significant decline in the overall market, and we took additional actions in the fourth quarter. The largest trade he's ever made was exercising 77,902 units of Pennymac Mortgage Investment Trust stock on 2 April 2018 . The Servicing segment recorded pretax income of $76 million, down from pretax income of $145 million in the prior quarter and $126 million in the fourth quarter of 2021. Some of our partners may process your data as a part of their legitimate business interest without asking for consent. COVID-19 has robbed us of a great leader, mentor and friend," said David Spector, president and CEO of PennyMac Mortgage Investment Trust. We estimate the committed pipeline at January 31st was $700 million. While we believe the majority of expense management activities have been completed, we remain disciplined, continuing to rapidly adjust capacity levels relative to the size of the origination market, whether growing or contracting. Total correspondent loan acquisition volume in the fourth quarter was $20.8 billion. David served as President and Chief Investment Officer and President and Chief Operating Officer for PennyMac. As you will see on Slide 12, we provide a breakdown of the revenue contribution from each of PFSI's loan production channels, net of loan origination expenses, including the fulfillment fees received from PMT for the conventional correspondent loans it retains. Item 1.01 Entry into a Material Definitive Agreement. These are often email forwarders, allowing organizations with a volatile staff or high turn-over rate to avoid . While 2022 was a challenging year for the mortgage industry due to the rapid and significant increase in interest rates, our operating discipline combined with the meaningful actions we took throughout the year to right-size our business for a smaller origination market, led to strong financial performance. 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