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. On average, they predict the company's stock price to reach $69.50 in the next twelve months. 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. Loan servicing followed at 4.1% and broker direct channel trailed at 2.2%. The UPB of completed modifications was $2.3 billion, down slightly from the prior quarter while EBO loan volumes remained low. Net assets under management totaled $2 billion as of December 31st, down 3% from September 30th. And with that, I would like to turn it back to David for some closing remarks. Segment revenue was $9.9 million, down 4% from the prior quarter. Close extra sharing options. To view the purposes they believe they have legitimate interest for, or to object to this data processing use the vendor list link below. . David works at Pennymac Loan Services, Llc as Chief Investment Officer. Billionaire Leon Cooperman Is Buying These 5 Stocks. Payoff-related expenses, which include interest shortfall and recording and release fees related to prepayments, decreased by $1 million. 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. Collection of Different Signatures of David Spector-2 PDF PennyMac Financial Services, Inc. Announces Doug Jones Joined Its Board David Spector Net Worth (2023) | wallmine other compensation of $82,229 . We and our partners use data for Personalised ads and content, ad and content measurement, audience insights and product development. Visit Website. Presenter SpeechMark DeVries Hello. Log in . 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. Overview. 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. (NASDAQ:PTLO), MML Investors Services LLC Sells 139 Shares of Extra Space Storage Inc. (NYSE:EXR), Lazard Asset Management LLC Has $308,000 Stake in Marqeta, Inc. (NASDAQ:MQ), Lazard Asset Management LLC Has $329,000 Position in The Williams Companies, Inc. (NYSE:WMB), Boothbay Fund Management LLC Invests $267,000 in Synaptics Incorporated (NASDAQ:SYNA), 7,728 Shares in SEI Investments (NASDAQ:SEIC) Acquired by Ergoteles LLC, Lazard Asset Management LLC Trims Stake in iQIYI, Inc. (NASDAQ:IQ), 2,549 Shares in Hess Co. (NYSE:HES) Acquired by Boothbay Fund Management LLC, The Interpublic Group of Companies, Inc. (NYSE:IPG) Shares Sold by Lazard Asset Management LLC, Boothbay Fund Management LLC Acquires 38,651 Shares of Consolidated Communications Holdings, Inc. (NASDAQ:CNSL), Boothbay Fund Management LLC Takes $260,000 Position in Advanced Drainage Systems, Inc. (NYSE:WMS), Boothbay Fund Management LLC Takes $288,000 Position in ShotSpotter, Inc. (NASDAQ:SSTI). We encourage investors with any questions to reach out to our Investor Relations team by email or phone. Realization of MSR cash flows increased by $7 million driven by higher average MSR values during the quarter. 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. Contact Information. Hedging losses totaled $73 million, primarily driven by hedge costs and higher interest rates. Doug Jones: Thanks, David. PennyMac Financial Services' profit sags but beats analyst estimates View David Spector's email address (d*****@pennym***.com) and phone number. Before their time at Countrywide Bank, David was a Vice President at Citibank, NA from . David A. Spector. We estimate that in 2022 we represented approximately 2% of the origination volume in the channel. Payoff-related expenses, which include interest shortfall and recording and release fees related to prepayments, decreased by $1 million. 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. For any questions, please visit our website at pfsi.pennymac.com, or call our Investor Relations department at 8182644907. The shares were sold at an average price of $60.64, for a total value of $1,586,888.16. A number of hedge funds and other institutional investors have recently bought and sold shares of PFSI. In order to protect the value of our MSR asset we utilize a comprehensive hedging strategy. David Spector received compensation valued at about $12,375,328 in 2020 after becoming Chairman & CEO. 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. Get Directions. While overall delinquency rates increased from the prior quarter, they remain consistent with our expectations for a primarily government-insured or guaranteed portfolio. See also 12 Top Performing Energy Stocks in Januaryand 25 Countries with Most Billionaires. Email forwarders (aliases) provide a consistent email address even though the person handling the inquiry changes. Thank you. David Spector email address & phone number | Penny Mac Chief Investment Search Crunchbase . Isaac Garden: Good afternoon, and welcome to the Fourth Quarter and Full Year 2022 Earnings Discussion for PennyMac Financial Services, Inc. With mortgage interest rates currently still above 6%, the most recent third-party forecasts for 2023 originations range from $1.6 trillion to $1.9 trillion, down meaningfully from 2022. In addition to his many sources of revenue, he also has other qualities that have propelled him to the top of a prominent list of celebrities in such a short . Contribute. 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. Pennymac is a home mortgage lender. Insider Selling: PennyMac Financial Services, Inc. (NYSE:PFSI) CEO PennyMac Loan Services, LLC CEO David Spector At a Glance. PENNYMAC - National Home Mortgage Lender PENNYMAC Careers and Employment | Indeed.com Of this total $0 was received as a salary, $0 was received as a bonus, $0 was received in stock options, $999,981 was awarded as stock and $0 came from other types of compensation. Finally, our Investment Management segment delivered pretax income of $1.2 million, down from $1.6 million in the prior quarter. Doug Jones: Thanks, David. 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. 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. While many industry participants have taken the appropriate steps to reduce capacity, it has been happening slowly and we believe overcapacity still remains. Sherman Oaks, California, United States View. Last quarter, we completed the roll out of POWER+, our next generation technology platform providing brokers with the tools they need to successfully grow their businesses and convert leads into loans. Pennymac Financial Services Inc (PFSI) President & CEO David Spector The stock has a market capitalization of $3.09 billion, a price-to-earnings ratio of 7.36 and a beta of 1.49. Send an email to David Spector. Dan Perotti, PFSI's Senior Managing Director and Chief Financial Officer will provide greater detail later on in this discussion. 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. Though 2023 is expected to be another challenging year for the mortgage industry, I remain confident in PennyMac Financial's ability to continue executing given its balanced business model and long history of generating stockholder value through different mortgage market cycles and environments. David Spector PennyMac Loan Services, LLC CEO Rating 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. Please. | 3 Mrz 2023. 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. Find contact's direct phone number, email address, work history, and more. Major name to depart PennyMac | Mortgage Professional Our servicing portfolio ended the year at $552 billion in unpaid principal balance as additions from loan production continued to exceed prepayment activity. 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. Here are a few tips for establishing great contacts. 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. Includes PMT loan acquisitions, for which PFSI earns a fulfillment fee upon loan funding. Our multi-channel approach to mortgage production provides the flexibility to adapt to different market conditions and drives organic growth of our servicing portfolio. 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. Mr. David Spector, President/CEO; . Purchase loans were 85% of total originations. PFSI's Board of Directors also declared a fourth quarter cash dividend of $0.20 per share. The most active traders at the company are PennyMac has laid off a total of 475 employees since March 1st. Though 2023 is expected to be another challenging year for the mortgage industry, I remain confident in PennyMac Financials ability to continue executing given its balanced business model and long history of generating stockholder value through different mortgage market cycles and environments. 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. 6 Wall Street analysts have issued twelve-month target prices for PennyMac Financial Services' shares. On Wednesday, March 1st, David Spector sold 26,169 shares of PennyMac Financial Services stock. 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. 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. We initially share this idea in October 2018 and the stock already returned more than 150%. We estimate the committed pipeline at January 31st was $800 million. Follow. 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. Ill now turn it over to Dan who will review PFSIs financial results for the quarter. Operating expenses as a percentage of average servicing portfolio UPB decreased. No principal and interest advances are currently outstanding, as prepayment activity continues to sufficiently cover remittance obligations. Institutional investors own 67.03% of the companys stock. PennyMac's results were published this month. 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. 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. On Monday, December 12th, David Spector sold 12,750 shares of PennyMac Financial Services stock. repurchased 1.1 million shares of PFSI common stock at an average price of $46.99 for an approximate cost of $51 million. We estimate that over the past 12 months we represented approximately 15% of the channel overall. Management segment, net assets under management were $2 billion at quarter end, down slightly from the prior quarter due to PMT's financial performance. 10 stocks we like better than PennyMac Mortgage . 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. David A. Spector (updated October 5, 2014) Page 1 of 15 . Get Email Updates. We estimate the committed pipeline at January 31st was $800 million. Production revenue margins were lower across all three channels. Purchase lock volume for the quarter of $681 million was 40% of total locks, compared to $1.37 billion, or 36% in the prior quarter. We estimate originations in our consumer direct channel in January totaled $300 million, and locks totaled $700 million. Operating expenses as a percentage of average servicing portfolio UPB decreased. Search our database of over 100 million company and executive profiles. "Stan leaves an indelible mark not only on PennyMac, but on the mortgage industry he helped to build and shape. And it means its going to be harder than ever to hold onto any money you make. We estimate that in 2022 we represented approximately 2% of the origination volume in the channel. 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. and bought an estimated value of $566.3M worth of shares. 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. 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 Financial Services, Inc. (NYSE:PFSI) Q4 2022 Earnings Call While overall delinquency rates increased from the prior quarter, they remain consistent with our expectations for a primarily government-insured or guaranteed portfolio. 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. With rates at current levels, we expect a continued meaningful contribution to overall servicing profitability. Realization of MSR cash flows increased by $7 million driven by higher average MSR values during the quarter. Servicing and sub-servicing revenues, the majority of which are cash, totaled more than $1.2 billion in 2022. Net assets under management totaled $2 billion as of December 31st, down 3% from September 30th. 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. That means much bigger government. Trade Alert: The Chairman of the Board & CEO Of PennyMac - Yahoo Get our editors daily picks straight in your inbox! And with that, I would like to turn it back to David for some closing remarks. 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. View David A Spector's profile for company associations, background information, and partnerships. With mortgage interest rates currently still above 6%, the most recent third-party forecasts for 2023 originations range from $1.6 trillion to $1.9 trillion, down meaningfully from 2022. The increase in tax rate resulted in the repricing of PFSI's net deferred tax liability, which was the primary driver of a non-recurring tax expense of approximately $11.9 million in the quarter. PENNYMAC has 5,001 to 10,000 employees. Average of 2,121 Customer Reviews. Finally, I believe this management team is the best in the industry and I'd like to thank them all for their various contributions to PFSI's strong performance in 2022. Man Who Predicted Lehman Crash Makes New Warning, 12 Top Performing Energy Stocks in January. 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. 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 Financial Services, Inc. (NYSE:PFSI Get Rating) CEO David Spector sold 15,000 shares of the businesss stock in a transaction on Monday, February 27th. Conventional acquisitions for PMTs account totaled $6.8 billion, down from $10.2 billion in the prior quarter, as a result of the previously mentioned sales to PFSI. David Walker, Chief Risk Officer, 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. As a key part of our balanced business model, our large and growing servicing portfolio provides significant value to the company. However, he will become a special advisor to David Spector, chairman and chief . The slides that accompany this discussion are available on PennyMac Financial's website at pfsi.pennymac.com. 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). 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. 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. Thank you. For any questions, please visit our website at pfsi.pennymac.com, or call our Investor Relations department at 8182644907. For example S&P 500 Index returned 43.4% in 1958. 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. **According to Inside Mortgage Finance ranking of Top 25 Primary Mortgage Servicers by dollar amount for Q4 2022.