PennyMac Financial reported second quarter net revenues of $497 million and diluted EPS of $0.41, missing analyst expectations. Management attributed the weaker-than-expected results to the impact of higher interest rates on the business and announced plans to realign its cost structure.
Key Highlights
- Total loan acquisitions and originations were $34.9 billion, representing an 8% decrease from the prior year, as a competitive environment impacted the correspondent channel.
- The owned servicing portfolio grew to $488 billion in unpaid principal balance (UPB), up 5% year-over-year, as additions from production outpaced runoff from prepayments.
- While overall volumes declined, consumer direct originations more than doubled, increasing 103% year-over-year to $5.6 billion in UPB, driven by increased refinance activity and higher recapture rates.