PennyMac Q3 Profit Rises as Hedging Cushions MSR Losses
Selling $12 billion of servicing to Annaly redirected capital to higher‑coupon assets with subservicing retained.
Overview
- Net income was $181.5 million on $632.9 million of revenue, with revenue topping consensus and profit coming in below S&P Capital IQ’s estimate.
- Servicing pretax income climbed to $157.4 million as $98.3 million of hedge gains largely offset $102.5 million in MSR fair‑value losses.
- The servicing portfolio reached $716.6 billion in UPB at quarter end, up 2% from Q2 and 11% year over year.
- Total acquisitions and originations were $36.5 billion, and production pretax income rose to $122.9 million as direct and broker channels expanded.
- PennyMac Mortgage Investment Trust increased private‑label securities activity and reported $48 million in net income to common shareholders.