The mortgage lender PennyMac reported a $30 million profit in the first quarter of this year. The company benefited from increased demand in the origination and servicing business, a 24% increase year over year, as well financials such as net interest income, helping to buoy its bottom line.
In Q1, PennyMac saw an approximate $12.3 billion in loan originations, nearly double the production from a year ago. PennyMac President and CEO David Spector said the loan production during the quarter was the “strongest start” in the company’s history.
The company’s mortgage servicing portfolio was up 12% year over year, and the total loan count at the end of March was nearly $93 billion. With their respective rises of 7% and 10%, PennyMac was also able to see growth in both loan purchases and acquisitions as well as a jump in portfolio investments.
PennyMac ended the first quarter with revenue of $592 million, net income of $30 million, and a diluted EPS of $0.17. Total originations revenue totaled $345 million, of which $238 million derived from the company’s retail home loan operations and approximately $46 million from its correspondence channel. A majority of the remainder of revenue was due to servicing, service release, and other ancillary services.
Overall, PennyMac’s first quarter performance proved strong as the company’s retail mortgage and core loan portfolios both increased. The mortgage lender was also able to deliver high asset quality, making it well-positioned for continued success. Through further improvements of its origination, servicing, and investments branches, PennyMac was able to report a $30 million profit at the end of the quarter.
You can read this full article at: https://www.housingwire.com/articles/pennymac-delivers-30m-profit-in-q1/(subscription required)
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