PennyMac Loan Services, LLC, is an American residential mortgage company headquartered in Westlake Village, California and is the principal mortgage banking subsidiary of PennyMac Financial Services, Inc. PennyMac originated $22.0 billion in mortgage loans in 2012. On May 14, 2013, its parent was listed on the New York Stock Exchange under the ticker PFSI with a market capitalization of $346.06 million as of the close of the market on January 10, 2014. At the time of its IPO, PennyMac had more than 600 employees at its Moorpark headquarters, making it one of the largest private employers and biggest tenants in the city. PennyMac does not have a "brick and mortar" branch network. The company conducts its business through a consumer-direct model, which relies on the Internet and call center-based staff to acquire and interact with customers across the country. PennyMac was founded in 2008 and was set up initially to do workouts on distressed loans, then later began refinancing and originating mortgages online and buying loans from smaller lenders. PennyMac is a separate organization from PennyMac Mortgage Investment Trust, a mortgage REIT. PennyMac is a member of the Russell 2000.
Business structure
PennyMac Loan Services consists of three primary businesses:
Correspondent Lending. PennyMac acquires newly originated loans from small banks and independent originators. As of December 2013, PennyMac is the largest non-bank correspondent lender in the United States and the 3rd largest overall according to Inside Mortgage Finance.
Retail Lending. The retail lending business originates new prime credit quality, first-lien residential conventional and government-insured mortgage loans on a national basis to allow customers to purchase or refinance their homes. In 2013, PennyMac originated $1.1 billion of residential mortgage loans in the retail lending business, a 105% growth rate compared to 2012.
Loan Servicing. The loan servicing business performs loan administration, collection and default activities, including the collection and remittance of loan payments; response to customer inquiries; accounting for principal and interest; holding custodial funds for the payment of property taxes and insurance premiums; counseling delinquent mortgagors; and supervising foreclosures and property dispositions. PennyMac provides prime servicing for conventional and government-insured loans, as well as special servicing for distressed loans that have been acquired as investments. As of October 31, 2013, PennyMac's serviced or subserviced approximately 371,000 loans worth $78.2 billion.
