David is based out of Agoura Hills, California, United States and works in the Financial Services industry. A number of hedge funds and other institutional investors have recently bought and sold shares of PFSI. We and our partners use cookies to Store and/or access information on a device. Operator: This concludes PennyMac Financial Services, Inc.s fourth quarter earnings discussion. Now I'll turn it over to Doug Jones, PennyMac's President and Chief Mortgage Banking Officer, who will review our market share trends and fourth quarter mortgage banking results. Servicing income, certain secondary market gains, layoffs and other cost-cutting did more to offset the impact of the marketwide originations slump at PennyMac Financial Services than analysts expected, but its second-quarter earnings still fell relative to comparable prior periods. Search Crunchbase . (866) 549-3583. David Spector - Chairman and Chief . Good afternoon, and welcome to the Fourth Quarter and Full Year 2022 Earnings Discussion for PennyMac Financial Services, Inc. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. 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. Pennymac notches a profitable Q1 due to servicing segment David Walker, Chief Risk Officer, I am pleased to report that we ended the quarter with a servicing portfolio of $552 billion, or approximately 4.1% of all residential mortgage debt in the U.S. Prepayment speeds have slowed meaningfully given higher mortgage rates. An example of data being processed may be a unique identifier stored in a cookie. Quarterly operating expenses in the fourth quarter were down 44% from average 2021 levels. 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. PennyMac Financial Services, Inc operates as a holding company. 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. Even as interest rates increased, the UPB of our production volume on a quarterly basis consistently represented 4% to 5% of the total servicing portfolio balance. 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. How and When to Use Email Forwarders or Aliases We initially share this idea in October 2018 and the stock already returned more than 150%. "Stan leaves an indelible mark not only on PennyMac, but on the mortgage industry he helped to build and shape. Twitter; LinkedIn; . We encourage investors with any questions to reach out to our Investor Relations team by email or phone. David Spector | ZoomInfo 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. PennyMac Financial Services, Inc. (NYSE:PFSI) Q4 2022 Earnings Call Transcript February 2, 2023. Prior to joining PennyMac Financial, Mr. Spector was co-head of global residential mortgages for Morgan Stanley, a global financial services firm, based . a bonus of $6,400,000 , PennyMac Mortgage Investment Trust. 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. Additionally, higher short-term rates have driven strong earnings on custodial balances. 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. Please. About. We estimate that in 2022 we represented approximately 2% of the origination volume in the channel. This includes $24 million in gains realized related to the timing of revenue and loan origination expense recognition, hedging, pricing & execution changes, and other items. 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. Thank you, Isaac. PennyMac Financial Services, Inc. Announces Doug Jones Joined Its Board Get Directions. Realization of MSR cash flows increased by $7 million driven by higher average MSR values during the quarter. David has made over 63 trades of the Pennymac Mortgage Investment Trust stock since 2013, according to the Form 4 filled with the SEC. David Spector usually trades in March, with the busiest year in 2021. We stand ready and able to absorb the volumes left by Wells Fargos exit and remain committed to being a strong capital partner for independent mortgage companies throughout the country. Margins in this channel were down slightly with revenue per fallout adjusted lock of 358 basis points versus 366 basis points in the third quarter. 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. While many industry participants have taken the appropriate steps to reduce capacity, it has been happening slowly and we believe overcapacity still remains. His storied career in mortgage banking spanned more than four decades. 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. Verified contact information for David Spector - Chairman & Chief Executive Officer, PennyMac Loan Services, LLC including email address, phone number and personality insights that will make your sales and marketing efforts much more effective. PennyMac Loan Services, LLC | Better Business Bureau Profile As David discussed earlier, these acquisition and origination volumes continue to drive the organic growth of our servicing portfolio. Access the headquarters listing for Pennymac Loan Services, LLC. 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 . If you would like to change your settings or withdraw consent at any time, the link to do so is in our privacy policy accessible from our home page.. 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. Alignment Healthcare (NASDAQ:ALHC) Shares Gap Down to $9.94, Envestnet Asset Management Inc. option awards of $3,204,163 , and Isaac Garden: Good afternoon, and welcome to the Fourth Quarter and Full Year 2022 Earnings Discussion for PennyMac Financial Services, Inc. Alethea Espino. 51% were conventional loans and 49% were government-insured or guaranteed loans. Sherman Oaks, California, United States View. PENNYMAC Careers and Employment | Indeed.com We estimate broker originations in January totaled $500 million and locks totaled $800 million. 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. PennyMac Financial Services, Inc. announced today that Doug Jones, President and Chief Mortgage Banking Officer, joined its Board of Directors effective March 1, 2023. I am Barclays' consumer finance analyst, Mark DeVries. . Pennymac has 10 current employee profiles, including President and Chief Executive Officer David Spector. These results include a non-recurring tax rate change which negatively impacted earnings per share by $0.22. Pennymac Financial Services, Inc. annonce que Doug Jones s'est joint Legal battle erupts between Black Knight, PennyMac over allegations of 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. We're all familiar with the general email addresses like customerservice@SomeBusiness.com or info@SmallNon-Profit.org. Despite elevated levels of competition currently, we believe PennyMac is well-positioned for market share growth in the channel over time given our strong capital position, operational excellence and the exit of channel participants. 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. 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. You can enter your email below to get our FREE report. The estimated net worth of David A. Spector is at least $27.68 million as of February 27th, 2023. Edit Contacts Section. In total, David Spector has made about 51 transactions over 8 years of their time at 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. 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. Sie knnen Ihre Einstellungen jederzeit ndern, indem Sie auf unseren Websites und Apps auf den Link Datenschutz-Dashboard klicken. Senvest Management LLC now owns 2,509,575 shares of the real estate investment trusts stock worth $142,193,000 after acquiring an additional 281,289 shares in the last quarter. View David A Spector's profile for company associations, background information, and partnerships. It operates through the following segments: Production, Servicing, and Investment Management. With rates at current levels, we expect a continued meaningful contribution to overall servicing profitability. Ratings from 281 employees, gives David Spector an approval rating of 56%. Search our database of over 100 million company and executive profiles. Send an email to David Spector. As David mentioned earlier PFSIs net income was $38 million or diluted earnings per share of $0.71. Pretax income excluding valuation-related items for the servicing segment was $79 million, up from the prior quarter as higher realization of MSR cash flows, interest expense, and lower EBO-related income was more than offset by higher loan servicing revenue, higher earnings on custodial balances and deposits, and lower operating expenses. Earnings on custodial balances and deposits and other income increased $17 million. FL 33634-2367 Email this Business. 23. PennyMac Financial Services, Inc. (NYSE:PFSI) CEO David Spector Sells On Slide 16, you can see the fair value of our MSR increased by $83 million in the fourth quarter, driven by lower than expected realized prepayment speeds as well as expectations for lower prepayment activity in the future. Despite elevated levels of competition currently, we believe PennyMac is well-positioned for market share growth in the channel over time given our strong capital position, operational excellence and the exit of channel participants. 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. PFSI PennyMac Financial Services: David Spector CEO: Sell: 15,000 shares @ $60.80: $912,000.00: 2/27/2023: $61.42: PFSI PennyMac Financial Services: David Spector CEO: Sell: 26,169 shares @ $60.64 . The increase in the effective tax rate was primarily driven by an increase in the provision tax rate, which increased from 26.5% to 26.85% for 2022. President & CEO of Pennymac Financial Services Inc (30-Year Financial, Insider Trades) David Spector (insider trades) sold 30,000 shares of PFSI on 01/12/2021 at an average price of $57.43 a share. Purchase loans were 85% of total originations. Realization of MSR cash flows increased by $7 million driven by higher average MSR values during the quarter. Revenue per fallout-adjusted lock was 56 basis points, down from 70 basis points in the prior quarter, although we have seen margins in this channel improve thus far in the first quarter. Now Id like to begin by introducing David Spector, PennyMac Financials Chairman and Chief Executive Officer who will review the Companys fourth quarter and full-year 2022 results. We expect EBO revenues to remain low in the coming quarters as lower overall volumes and redelivery gains are expected to be limited due to the higher interest rate environment. David Spector owns about 650,183 units of Pennymac Financial Services, Inc common stock. 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. The impact of this tax rate change was negative $0.22 in earnings per share. Continue with Recommended Cookies, Your email address will not be published. See also 12 Top Performing Energy Stocks in Januaryand 25 Countries with Most Billionaires. On Monday, February 27th, David Spector sold 15,000 shares of PennyMac Financial Services stock. 20. Isaac Garden - Investor Relations. And with that, I would like to turn it back to David for some closing remarks. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. We expect EBO revenues to remain low in the coming quarters as lower overall volumes and redelivery gains are expected to be limited due to the higher interest rate environment. PennyMac Financials owned servicing portfolio reported a prepayment speed of 5.4% in the fourth quarter, down from 9% in the prior quarter. Thank you, Dan. Hedging losses totaled $73 million, primarily driven by hedge costs and higher interest rates. We estimate broker originations in January totaled $500 million and locks totaled $800 million. We estimate the committed pipeline at January 31st was $700 million. Hedging losses totaled $73 million, primarily driven by hedge costs and higher interest rates. Even as interest rates increased, the UPB of our production volume on a quarterly basis consistently represented 4% to 5% of the total servicing portfolio balance. 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. David Spector's largest purchase order was 40,735 units , worth over to generate high returns in the 20% to 30% range. PFSIs 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. Loan servicing followed at 4.1% and broker direct channel trailed at 2.2%. We stand ready and able to absorb the volumes left by Wells Fargo's exit and remain committed to being a strong capital partner for independent mortgage companies throughout the country. repurchased 1.1 million shares of PFSI common stock at an average price of $46.99 for an approximate cost of $51 million.