How Pennymac is preparing for the forthcoming refi wave - HousingWire
Pennymac Financial Services earned a profit of $98.3 million in second-quarter 2024, more than double the $39.3 million it raked in during the prior quarter. And the company is getting its ducks in a row to seize on opportunities when interest rates fall, relying on its scale and servicing portfolio to outmuscle competitors.The California-based lender generated production revenue of $202.6 million from April through June, up 10% from the prior quarter and 19% higher than in second-quarter 2023. Higher revenues drove more income for its loan production channel, which rose to $41.3 million in Q2 2024, compared to $35.9 million in Q1 2024 and $24.4 million in Q2 2023.The company has previously touted the strength of its servicing business and that sentiment was backed up by the $88.5 million in pretax income for the channel in Q2 2024. By comparison, servicing generated $4.9 million in pretax income in the prior quarter and $46.5 million in Q2 2023.“PennyMac Financial generated strong ear...