New York, New York--(Newsfile Corp. - March 6, 2026) - WHY: Rosen Law Firm, a global investor rights law firm, continues to investigate potential securities claims on behalf of shareholders of PennyMac Financial Services, Inc. (NYSE: PFSI) resulting from allegations that PennyMac may have issued materially misleading business information to the investing public.SO WHAT: If you purchased PennyMac securities you may be entitled to compensation without payment of any out of pocket fees or costs through a cont ...

Core Viewpoint - PennyMac Financial Services, Inc. is under investigation for potential violations of federal securities laws related to its mortgage recapture efforts as interest rates declined [1][2][3]. Group 1: Investigation Details - Bleichmar Fonti & Auld LLP is investigating whether PennyMac misrepresented its ability to recapture customers refinancing their mortgages during a period of declining interest rates [3]. - The investigation follows PennyMac's claims of improving recapture rates, which may not accurately reflect the company's performance [2][3]. Group 2: Stock Performance - On January 29, 2026, PennyMac reported disappointing financial results for Q4 2025, revealing that increased origination capacity did not translate into expected refinance business due to heightened competition [4]. - Following the earnings call, PennyMac's stock price dropped over 37%, from $140.70 per share to as low as $93.50 per share on January 30, 2026 [4].

Core Viewpoint - Rosen Law Firm is investigating potential securities claims on behalf of shareholders of PennyMac Financial Services, Inc. due to allegations of materially misleading business information issued by the company [1]. Group 1: Legal Action and Investor Rights - Investors who purchased PennyMac securities may be entitled to compensation through a class action lawsuit without any out-of-pocket fees, as the Rosen Law Firm is preparing to seek recovery of investor losses [2]. - Interested investors can join the prospective class action by submitting a form or contacting the firm directly for more information [2]. Group 2: Financial Performance and Stock Impact - On January 29, 2026, PennyMac reported its fourth quarter and full-year 2025 financial results, revealing a significant decline in its servicing segment pretax income to $37.3 million, down from $157.4 million in the prior quarter and $87.3 million in the same quarter of 2024 [3]. - The report indicated that pretax income excluding valuation-related items was $47.8 million, reflecting a 70% decrease from the previous quarter, primarily due to increased realization of mortgage servicing rights cash flows driven by lower mortgage rates and higher prepayment activity [3]. - Following the financial report, PennyMac's stock price dropped by $49.78 per share, or 33.3%, closing at $99.92 per share on January 30, 2026 [3]. Group 3: Rosen Law Firm's Credentials - The Rosen Law Firm emphasizes the importance of selecting qualified legal counsel with a successful track record in securities class actions, highlighting its own achievements in recovering significant amounts for investors [4]. - The firm has been recognized for its success in securities class action settlements, including being ranked No. 1 by ISS Securities Class Action Services in 2017 and securing over $438 million for investors in 2019 [4].

Core Viewpoint - Rosen Law Firm is investigating potential securities claims on behalf of shareholders of PennyMac Financial Services, Inc. due to allegations of materially misleading business information issued to the public [1]. Group 1: Financial Performance - On January 29, 2026, PennyMac reported its fourth quarter and full-year 2025 financial results, revealing a pretax income of $37.3 million for its servicing segment, a significant decrease from $157.4 million in the prior quarter and $87.3 million in the fourth quarter of 2024 [3]. - The report indicated that pretax income excluding valuation-related items was $47.8 million, down 70% from the prior quarter, primarily due to increased realization of mortgage servicing rights cash flows as lower mortgage rates led to higher prepayment activity [3]. Group 2: Stock Market Reaction - Following the financial report, PennyMac's stock price dropped by $49.78 per share, or 33.3%, closing at $99.92 per share on January 30, 2026 [3]. Group 3: Legal Action - Investors who purchased PennyMac securities may be entitled to compensation through a class action lawsuit being prepared by Rosen Law Firm, which operates on a contingency fee basis, meaning no out-of-pocket costs for investors [2]. - Interested investors can join the class action by submitting a form or contacting the firm directly for more information [2]. Group 4: Rosen Law Firm's Credentials - Rosen Law Firm has a strong track record in securities class actions, having achieved the largest securities class action settlement against a Chinese company and being ranked No. 1 for the number of settlements in 2017 [4]. - The firm has recovered hundreds of millions of dollars for investors, securing over $438 million in 2019 alone, and has consistently ranked in the top 4 for securities class action settlements since 2013 [4].

Core Viewpoint - PennyMac Financial Services, Inc. is under investigation for potential violations of federal securities laws related to its mortgage recapture efforts as interest rates declined [1][2][3]. Group 1: Investigation Details - Bleichmar Fonti & Auld LLP is investigating whether PennyMac misrepresented its ability to recapture customers refinancing their mortgages during a period of declining interest rates [3]. - The investigation follows PennyMac's claims of improving recapture rates, which may not align with actual performance [2]. Group 2: Financial Performance and Stock Impact - On January 29, 2026, PennyMac reported disappointing financial results for Q4 2025, revealing that increased origination capacity did not translate into expected refinance business due to heightened competition [4]. - Following the earnings call, PennyMac's stock price dropped over 37%, from $140.70 per share to as low as $93.50 per share [4].

Core Viewpoint - PennyMac Financial Services, Inc. is under investigation for potential violations of federal securities laws related to its mortgage recapture efforts as interest rates declined [1][2][3]. Group 1: Investigation Details - Bleichmar Fonti & Auld LLP is investigating whether PennyMac misrepresented its ability to recapture customers refinancing their mortgages during a period of declining interest rates [3]. - The investigation follows PennyMac's claims of improved recapture rates, which may not align with actual performance [2][3]. Group 2: Financial Performance and Stock Impact - On January 29, 2026, PennyMac reported disappointing financial results for Q4 2025, revealing that increased origination capacity did not translate into expected refinancing opportunities due to heightened competition [4]. - Following the earnings call, PennyMac's stock price dropped over 37%, from $140.70 per share to as low as $93.50 per share [4].

Core Viewpoint - Rosen Law Firm is investigating potential securities claims on behalf of shareholders of PennyMac Financial Services, Inc. due to allegations of materially misleading business information issued to the investing public [1]. Group 1: Legal Action and Compensation - Shareholders who purchased PennyMac securities may be entitled to compensation through a class action lawsuit without any out-of-pocket fees, facilitated by a contingency fee arrangement [2]. - The Rosen Law Firm is preparing a class action to seek recovery of investor losses related to PennyMac [2]. Group 2: Financial Performance and Stock Impact - On January 29, 2026, PennyMac reported its fourth quarter and full-year 2025 financial results, revealing a pretax income of $37.3 million for the servicing segment, a significant decrease from $157.4 million in the prior quarter and $87.3 million in Q4 2024 [3]. - The report indicated that pretax income excluding valuation-related items was $47.8 million, down 70% from the previous quarter, primarily due to increased realization of mortgage servicing rights cash flows as lower mortgage rates led to higher prepayment activity [3]. - Following the financial report, PennyMac's stock price dropped by $49.78 per share, or 33.3%, closing at $99.92 per share on January 30, 2026 [3]. Group 3: Rosen Law Firm's Credentials - The Rosen Law Firm emphasizes the importance of selecting qualified legal counsel with a successful track record in securities class actions, highlighting its own achievements in this area [4]. - The firm has been recognized for its significant settlements, including the largest securities class action settlement against a Chinese company and has consistently ranked among the top firms for securities class action settlements since 2013 [4]. - In 2019, the firm secured over $438 million for investors, showcasing its capability in recovering substantial amounts for its clients [4].

Core Viewpoint - Rosen Law Firm is investigating potential securities claims on behalf of shareholders of PennyMac Financial Services, Inc. due to allegations of materially misleading business information issued by the company [1]. Group 1: Financial Performance - On January 29, 2026, PennyMac reported its fourth quarter and full-year 2025 financial results, revealing a pretax income of $37.3 million for its servicing segment, a significant decrease from $157.4 million in the prior quarter and $87.3 million in the fourth quarter of 2024 [3]. - The report indicated that pretax income excluding valuation-related items was $47.8 million, down 70% from the prior quarter, primarily due to increased realization of mortgage servicing rights cash flows as lower mortgage rates led to higher prepayment activity [3]. - Following the financial report, PennyMac's stock price dropped by $49.78 per share, or 33.3%, closing at $99.92 per share on January 30, 2026 [3]. Group 2: Legal Action and Investor Rights - Investors who purchased PennyMac securities may be entitled to compensation through a class action lawsuit being prepared by Rosen Law Firm, which operates on a contingency fee basis, meaning no out-of-pocket costs for investors [2]. - Interested investors can join the prospective class action by visiting the provided link or contacting the firm directly for more information [2]. Group 3: Rosen Law Firm's Credentials - Rosen Law Firm emphasizes the importance of selecting qualified legal counsel with a proven track record in securities class actions, highlighting its own success in recovering hundreds of millions of dollars for investors [4]. - The firm has been recognized for its achievements, including the largest securities class action settlement against a Chinese company and being ranked No. 1 for securities class action settlements in 2017 [4].

Core Viewpoint - PennyMac Financial Services, Inc. is under investigation for potential violations of federal securities laws related to its mortgage recapture efforts as interest rates declined [1][2][3]. Group 1: Investigation Details - Bleichmar Fonti & Auld LLP is investigating whether PennyMac misrepresented its ability to recapture customers refinancing their mortgages during a period of declining interest rates [3]. - The investigation follows PennyMac's claims of improved recapture rates, which may not align with actual performance [2][3]. Group 2: Financial Performance and Stock Impact - On January 29, 2026, PennyMac reported disappointing financial results for Q4 2025, revealing that increased origination capacity did not translate into expected refinancing opportunities due to heightened competition [4]. - Following the earnings call, PennyMac's stock price dropped over 37%, from $140.70 per share to as low as $93.50 per share [4].

Financial Performance - Total net revenues for 2025 reached $2,046,536,000, a 28.4% increase from $1,593,731,000 in 2024[17] - The production segment generated net revenues of $1,260,280,000 in 2025, up 33.8% from $941,702,000 in 2024[17] - The servicing segment reported net revenues of $737,383,000 in 2025, an increase of 24% compared to $595,364,000 in 2024[17] - The company reported total loan production of $146,102,988,000 in 2025, compared to $115,819,663,000 in 2024, indicating a 26.2% increase[27] - Net loan servicing fees from owned servicing increased to $620.1 million in 2025, up from $450.4 million in 2024, representing a growth of 37.6%[33] Loan and Asset Growth - The unpaid principal balance (UPB) of loans purchased and originated for sale increased to $152,419,382,000 in 2025, up from $115,819,663,000 in 2024, representing a 31.5% growth[17] - The UPB of loans serviced for PMT and non-affiliates at the end of 2025 was $733,613,822,000, compared to $665,763,827,000 in 2024, marking a 10.2% increase[17] - The total assets at the end of 2025 were $29,388,689,000, up from $26,086,887,000 in 2024, reflecting a growth of 8.8%[17] - The company’s loan production totaled $152.4 billion in UPB in 2025, with mortgage servicing rights backed by loans totaling $462.0 billion[38] Segment Income - The production segment's income before income taxes was $369,920,000 in 2025, a 18.8% increase from $311,231,000 in 2024[17] - The servicing segment's income before income taxes rose to $324,893,000 in 2025, up 58.5% from $205,002,000 in 2024[17] Market and Economic Conditions - The U.S. residential mortgage market had approximately $14.7 trillion of debt outstanding as of December 31, 2025, with first lien mortgage loan origination volume at approximately $1.9 trillion in 2025, expected to rise to $2.3 trillion in 2026[41] - The business is significantly affected by changes in interest rates, with higher rates constraining mortgage origination and refinancing activity compared to previous years[74] - Rising homeownership costs have negatively impacted housing affordability, increasing the likelihood of mortgage delinquencies and defaults[79] - The company faces risks related to macroeconomic conditions, including inflation and unemployment, which could reduce disposable income and negatively impact loan production volume[76] Servicing and Compliance Risks - Increased mortgage delinquencies and defaults may lead to lower revenue from servicing loans, as servicing fees are only collected from performing loans[81] - The company is required to make servicing advances that may not be recoverable due to delinquencies and defaults, adversely affecting its financial condition and liquidity[83] - The company operates in a highly regulated industry, and changes in laws and regulations could materially affect its business and financial condition[73] - The company must maintain various Agency approvals and state licenses to conduct its business, and failure to do so could adversely impact its operations[208] Funding and Financial Stability - As of December 31, 2025, the company had $15.6 billion in total indebtedness, with approximately $10.8 billion secured and an additional capacity of up to $4.9 billion under secured borrowings[92] - The company relies on external financial arrangements for funding mortgage loans, and any inability to refinance or secure new financing could adversely affect its operations[96] - The company is dependent on a limited number of banks and investors for credit, and changes in their risk management strategies could increase the cost of capital or limit access to financing[98] Technology and Innovation - The company relies on a combination of trademarks, copyrights, and trade secrets to protect its intellectual property, including a proprietary workflow-driven cloud-based servicing system and pricing engines[66] - The development and protection of proprietary technologies require significant capital and legal expenditures to remain competitive[73] - The company relies on third-party vendors for cloud-based and artificial intelligence systems, which are critical for maintaining the quality and timeliness of services[168] Legal and Reputational Risks - The company is exposed to significant legal risks, including potential lawsuits and regulatory actions that could adversely affect its financial condition and results of operations[147] - Reputational risks from various issues, including conflicts of interest and regulatory compliance, could harm the company's business prospects and earnings[152] - The company may incur significant costs to resolve disruptions in service from vendors, which could adversely affect its financial condition[151] Future Outlook and Strategic Plans - The company plans to expand its servicing portfolio through acquisitions and new non-affiliate clients, enhancing its market presence[38] - The company aims to grow its correspondent production business, leveraging management expertise and relationships with correspondent sellers[35] - The company may face challenges in expanding its subservicing business, which could impact overall servicing revenue and increase compliance risks[135]