PennyMac Mortgage Investment Trust saw its fourth-quarter profit rise as its correspondent lending business surged.
Moorpark, Calif.-based PennyMac posted net income for the fourth-quarter of $19.6 million, or 70 cents a share, beating analysts estimates. That compared to net income of $7.3 million, or 43 cents a share, a year ago.
On average, analysts expected the company to earn 65 cents a share, according to Thomson Reuters I/B/E/S.
For the 2011 fiscal year, PennyMac earned $64.4 million, or $2.41 a share, on total net investment income for the year of $128.6 million.
PennyMac said it expects 2012 mortgage originations in the United States to hit the $1 trillion mark, with $300 million through coorespondent lending. However, new regulatory and capital requirements are causing the big banks to retreat from the mortgage industry, PennyMac said. The result is more opportunity in the mortgage servicing space, the real estate investment trust said, especially with the industry in a period of reform.
"PennyMac will continue to pursue distressed whole loan investments, while also seeking new opportunities, such as mortgage servicing rights," the earnings report states. "Correspondent volume should steadily increase as this becomes a greater component of PennyMac's earnings over the year."
In the most recent fourth quarter, PennyMac's fundings in the correspondent lending side of the business hit $991 million with rate locks of $1.3 billion. Conventional loans made up $566 million of total correspondent funding, followed by Federal Housing Administration loans, which made up $410 million, and jumbo loans, which hit $15 million.
The pre-tax gain of $7.4 million tied to the correspondent lending segment is attributed to conventional and jumbo loans.
During the quarter, PMT agreed to purchase a pool of mortgage loans and REOs with an unpaid principal balance of $49 million. By year end, the company's portfolio of residential mortgage loans, REOs and mortgage-backed securities were valued at $826 million.
Total investment income for 4Q hit $38.7 million.
by Kerri Panchuk Housingwire Feb 8, 2012
PennyMac posts $19.6 million in earnings, plans to expand correspondent lending | HousingWire
Reuters: Business News
National Commercial Real Estate News From CoStar Group
Latest stock market news from Wall Street - CNNMoney.com
- ► 2017 (81)
- ► 2016 (145)
- ► 2015 (146)
- ► 2014 (102)
- ► 2013 (395)
- Building-permit complaints in Phoenix increased in...
- Report: Upbeat findings for Arizona housing market...
- Arizona bills target home-affidavit law
- Investors have eye on McDowell Corridor - USATODAY...
- Rising sales point to a stronger year for housing
- Expert: Building jobs on rebound
- Paradise Valley residents get first glimpse of res...
- Builder Sentiment Up Again « Eye on Housing
- California Mortgage Applicants Tops in the Nation ...
- Arizona gets $1.6 billion in mortgage fraud settle...
- PennyMac posts $19.6 million in earnings, plans to...
- Real estate bidding wars
- Arizona housing experts guarded but hopeful
- Apartments are planned
- Foreclosures hit 4-year low in metro area
- Economist sees hope for Ariz. recovery
- Obama unveils plan on housing
- Mom who lost 3 kids in plane crash about to lose h...
- EU blocks $10 billion Deutsche Boerse, NYSE merger...
- FHFA Takes First Step in Its REO Pilot Initiative ...
- Government Triples Payout to Servicers for Princip...
- ▼ February (21)
- ► 2011 (704)