Existing home inventory has soared … but few sales are begin transacted … will the flood gates open after rate cuts? … three options for real estate investing Remember when there were no available homes for sale on the market? Well, that's no longer a thing. As you can see below, there are now 476,000 new homes for sale in the U.S. This is the highest level since 2008. Source: Creative Planning / Charlie Bilello So, why are existing home sales still in the gutter? You already know the reasons… Record-high h ...

Financial Performance - Loan production revenues for Q2 2024 reached $222.566 million, up from $185.828 million in Q2 2023, representing a 19.7% increase[189]. - Net loan servicing fees increased to $167.604 million in Q2 2024, compared to $146.078 million in Q2 2023, a rise of 14.8%[189]. - Total net revenues for Q2 2024 were $406.127 million, up from $336.547 million in Q2 2023, marking a 20.6% increase[189]. - Net income for Q2 2024 was $98.258 million, compared to $58.250 million in Q2 2023, reflecting a 68.8% increase[189]. - Basic earnings per share for Q2 2024 were $1.93, up from $1.17 in Q2 2023, an increase of 64.1%[189]. - Adjusted EBITDA for Q2 2024 was $249,718,000, up 70.5% from $146,445,000 in Q2 2023[193]. - Income before provision for income taxes increased by $60.9 million in Q2 2024, driven by a $36.7 million rise in loan production revenue[194]. - Net gains on loans held for sale at fair value reached $176.1 million in Q2 2024, an increase of 24.5% compared to $141.5 million in Q2 2023[196]. - For the first half of 2024, net gains on loans held for sale totaled $338.5 million, a 37.9% increase from $245.8 million in the same period of 2023[196]. Loan and Servicing Metrics - The unpaid principal balance of loans produced or fulfilled for PMT was $27.360 billion, up from $25.047 billion, a 9.2% increase[189]. - Interest rate lock commitments issued during the period totaled $27.998 billion, compared to $23.246 billion in the previous year, a 20.5% increase[189]. - Total loans serviced increased to $632,738,612 as of June 30, 2024, compared to $607,216,769 in the same period of 2023, representing an increase of approximately 4.2%[218]. - The average unpaid principal balance of loans subject to representations and warranties was $381.5 billion at the end of the period, compared to $321.0 billion at the end of June 30, 2023, reflecting an 18.9% increase[207]. - Total loans repurchased during the quarter ended June 30, 2024, amounted to $23.5 million, compared to $13.9 million for the same period in 2023, marking a 68.3% increase[208]. Market Outlook - The company expects the mortgage origination market to grow from $1.5 trillion in 2023 to an estimated $1.7 trillion in 2024, although this may decline if interest rates remain elevated[187]. - The company continues to acquire conventional loans from PMT, expecting to purchase at a reduced rate for the remainder of 2024[188]. Expenses and Liabilities - Total cash losses from loans were $(321,270,000) in Q2 2024, compared to $(308,199,000) in Q2 2023[198]. - Non-cash gains from loans held for sale were $497,807,000 in Q2 2024, compared to $450,127,000 in Q2 2023[198]. - The company reported a $26.4 million decrease in net loan servicing fees due to increased net MSR valuation losses in the first half of 2024[195]. - Provisions for losses under representations and warranties totaled $4.1 million for the quarter ended June 30, 2024, compared to $3.1 million for the same period in 2023, reflecting a 32.3% increase[206]. - The company recorded a reduction in liability of $4.1 million for the quarter ended June 30, 2024, compared to $2.0 million for the same period in 2023, representing a 105% increase[206]. Cash Flow and Financing - Net cash used in operating activities totaled $2.0 billion during the six months ended June 30, 2024, compared to $1.0 billion during the same period in 2023[234]. - Net cash used in investing activities was $1.5 billion for the six months ended June 30, 2024, primarily due to $935.4 million in purchases of principal-only stripped MBS[235]. - Net cash provided by financing activities totaled $3.2 billion during the six months ended June 30, 2024, reflecting an increase in borrowings[236]. - The company has a common stock repurchase program allowing up to $2 billion, with approximately $1.8 billion repurchased as of June 30, 2024[247]. Risk Management - The company is exposed to primary market risks including fair value risk, interest rate risk, and prepayment risk[260]. - Fair value of assets such as IRLCs and mortgage loans fluctuates primarily due to changes in interest rates[261]. - Rising interest rates negatively impact the fair value of IRLCs and mortgage loans held for sale, while positively affecting the fair value of MSRs[262]. - A decrease in principal balances or an increase in prepayment expectations will reduce the fair value estimates of MSRs, impacting net servicing income[264]. - The company employs derivative financial instruments to mitigate the effects of interest rate changes on asset fair values[265]. - Daily reviews of risk management strategies are conducted, utilizing various interest rate and spread shifts to define target limits for market value and liquidity loss[266].

2Q24 EARNINGS REPORT PennyMac Financial Services, Inc. July 2024 FORWARD-LOOKING STATEMENTS This presentation contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, regarding management's beliefs, estimates, projections and assumptions with respect to, among other things, our financial results, future operations, business plans and investment strategies, as well as industry and market conditions, all of which are subject to change. Words lik ...

For the quarter ended June 2024, PennyMac Financial (PFSI) reported revenue of $406.13 million, up 20.7% over the same period last year. EPS came in at $2.67, compared to $1.11 in the year-ago quarter. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health. Here is how PennyMac performed in the just reported quarter in terms of ...

Over the last four quarters, the company has surpassed consensus EPS estimates four times. PennyMac shares have added about 12.3% since the beginning of the year versus the S&P 500's gain of 16.7%. There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Investors should be mi ...

PennyMac Financial Services, Inc. (NYSE:PFSI) Q2 2024 Earnings Conference Call July 23, 2024 5:00 PM ET Company Participants David Spector - Chairman & Chief Executive Officer Dan Perotti - Chief Financial Officer Conference Call Participants Terry Ma - Barclays Bose George - KBW Michael Kaye - Wells Fargo Crispin Love - Piper Sandler Doug Harter - UBS Derek Sommers - Jefferies Eric Hagen - BTIG Shanna Qiu - Barclays Operator Good afternoon and welcome to PennyMac Financial Services Incorporated Second Quar ...

Production Segment 4 The components of net gains on loans held for sale are detailed in the following table: | --- | --- | --- | --- | --- | --- | --- | --- | |---------------------------------------------------------------------------------------------------|-------|-------|-----------------|---------------|---------------------------------------|-------|-----------------| | | | | June 30, 2024 | Quarter \n(in | ended \nMarch 31, 2024 \nthousands) | | June 30, 2023 | | Receipt of MSRs | $ | | 541,207 | $ | ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 Form 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-38727 PennyMac Financial Services, Inc. (Exact name of registrant as specified in its charter) (State or other ...

PennyMac Financial (PFSI) reported $305.66 million in revenue for the quarter ended March 2024, representing a year-over-year increase of 0.9%. EPS of $2.48 for the same period compares to $0.57 a year ago.The reported revenue represents a surprise of -27.72% over the Zacks Consensus Estimate of $422.87 million. With the consensus EPS estimate being $2.34, the EPS surprise was +5.98%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to ...

PennyMac Financial Services, Inc. (NYSE:PFSI) Q1 2024 Earnings Conference Call April 24, 2024 5:00 PM ET Company Participants David Spector - Chairman and CEO Dan Perotti - Chief Financial Officer Conference Call Participants Bose George - KBW Doug Harter - UBS Crispin Love - Piper Sandler Kyle Joseph - Jefferies Terry Ma - Barclays Eric Hagen - BTIG Operator Good afternoon and welcome to PennyMac Financial Services Inc.’s First Quarter 2024 Earnings Call. Additional earnings materials, including presentati ...