PennyMac Mortgage Investment Trust earned $19.6 million in the fourth quarter – almost flat compared to 3Q – as it ramped up its correspondent division.
In the company’s earnings report, PennyMac CEO Stan Kurland predicted that the publicly traded REIT will lock in roughly $1.8 billion of product through the correspondent channel compared to $991 million of fundings in the fourth quarter.
Originally conceived as a distressed mortgage fund, PennyMac is shifting its strategy somewhat to focus on one of the most underserved sectors in the business: correspondent purchases.
“This was a transformative quarter for PMT,” said Kurland. “The company’s correspondent lending segment had a measurable positive impact on earnings.”
Kurland noted that the Calabasas-based company will continue to buy distressed mortgage assets – and servicing rights.
PennyMac is also a warehouse provider, but made no mention of that business in its brief earnings statement. PennyMac’s backers include BlackRock Financial. Its repo lender is Citigroup.