Case 4 PennyMac Financial Services

PennyMac Financial Services, Inc. (PFSI) is a specialty financial service firm with a comprehensive mortgage platform with focus on the production and servicing of US mortgage loans and management of investments related to the US mortgage market. The company has synergistic partnership with PennyMac Mortgage Investment Trust which is a publicly traded mortgage real estate investment trust (REIT). The operating subsidiaries of the company was founded in year 2008. The company was publicly listed in the year 2013. The company had over 6900 employees as of the end of fiscal year 2021. PennyMac Financial had registered a strong performance with revenue and net income of $3.2 billion and $1.0 billion, respectively, in 2021. The diluted EPS was $14.87 in the period. In 2021, approximately 25% of PennyMac Financial Services originated in the higher margin consumer and broker direct lending channels. The market value of PFSI as of June 24, 2022, was $2436.26 million. PFSI operates and controls all the business operations of Private National Mortgage Acceptance Company, LLC (PNMAC) and its subsidiaries. The loan production segment sources new prime credit quality first lien residential conventional and government-insured or guaranteed mortgage loans through the three channels of correspondent production, consumer direct lending, and broker direct lending. The total cumulative monthly return for PFSI stock was 133% during the period June 2017 to June 2022.