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Sep 30, 2021
PennyMac Q3 2021 Earnings Report
PennyMac reported a net loss for the third quarter of 2021, impacted by fair value changes in Interest Rate Sensitive Strategies.
Key Takeaways
PennyMac Mortgage Investment Trust reported a net loss attributable to common shareholders of $43.9 million, or $(0.45) per common share on a diluted basis for the third quarter of 2021, on net investment income of $47.9 million.
Net loss attributable to common shareholders was $43.9 million, down from net income of $31.9 million in the prior quarter.
Conventional correspondent loan production volumes were $28.6 billion in UPB, down 6 percent from the prior quarter and up 5 percent from the third quarter of 2020.
Added $425 million in new MSRs.
Purchased subordinated securities from two securitizations of Agency-eligible investor loans totaling $548 million in UPB, sourced organically from PMT’s conventional correspondent production volumes.
Revenue by Segment
Forward Guidance
PMT is well-positioned over the long term with a valuable portfolio of existing investments, alignment to the purchase market in its correspondent production business, and a proven ability to organically generate new investments.
Positive Outlook
- Valuable portfolio of existing investments
- Alignment to the purchase market in its correspondent production business
- Proven ability to organically generate new investments
- Tirelessly focused on driving improved execution
- Capitalizing on the current and evolving investment environment
Challenges Ahead
- Rising interest rates are driving a competitive environment for aggregators that presents near term challenges
- Fair value changes in Interest Rate Sensitive Strategies had an adverse impact on results
- FHFA’s elimination of the Adverse Market Refinance Fee contributed to a significant decline in the fair value of PMT’s MSRs
Historical Earnings Impact
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Avg. Return Before/After Earnings
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