Pennymac Financial Services, Inc. · NYSE:PFSI
Pennymac Financial Services — Barclays Global Financial Services Conference 2013
10 slides from Pennymac Financial Services's conference presentation, Sep 10, 2013
Slide 1: Barclays Global Financial Services Conference
Barclays Global Financial Services Conference September 10, 2013
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, regarding management’s beliefs, estimates, projections and assumptions with respect to, among other things, the Company’s financial r
Slide 3: PennyMac Is a Leading Non-Bank Residential Mortgage Specialist
PennyMac Is a Leading Non-Bank Residential Mortgage Specialist Specialized mortgage platform for the post-financial crisis market – Legacy-free operations developed organically that are highly scalable to support continued growth Largest non-bank correspondent lender in the U.S. in 1H13 (4th overall
Slide 4: PFSI Has a Unique Business Model With Diverse Revenue Sources
PFSI Has a Unique Business Model With Diverse Revenue Sources Loan Production Correspondent Lending Retail Lending Aggregates from approved third-party sellers, Originates conventional and government loans newly originated mortgage loans for purchase and refinance transactions Revenue sources: Reven
Slide 5: Correspondent Lending Opportunity
Correspondent Lending Opportunity Aggregator $ Well-capitalized firm with many sources of financing Sophisticated capital markets expertise to hedge pipeline and $ $ interest rate risk Agencies and Capabilities and scale to service loans and retain MSRs other investors Approvals and established Smal
Slide 6: Retail Lending Opportunity
Retail Lending Opportunity Banks have dominated the market since the Consumer direct lending has significant financial crisis, but they are retreating advantages over branch-based model – Increased capital requirements – Call centers result in an efficient concentration of personnel and expertise –
Slide 7: Rising Rates Present Challenges to Loan Production
Rising Rates Present Challenges to Loan Production Rising mortgage rates have significantly slowed % Mortgage Rates(1) refinancing activity, resulting in a smaller mortgage 5.0 origination market for the foreseeable future 4.5 − Volume decline from 1H13 to 2H13 is expected to be 4.0 >30% 3.5 Adjusta
Slide 8: Growth Trends Across PFSI's Businesses
Growth Trends Across PFSI’s Businesses Mortgage Banking Loan Production UPB(1) ($ in billions) $12 $10.2 In correspondent lending, $8.8 $8.9 disciplined growth with initiatives to $8 $6.5 Loan Production further develop the business and $3.5 capture additional market share $4 In retail lending, cont
Slide 9: Long-Term Initiatives to Profitably Expand Share in Loan Production
Long-Term Initiatives to Profitably Expand Share in Loan Production Correspondent Lending Retail Lending Continue to develop a complete platform to serve Bring the efficiency of the consumer direct model to smaller originators the purchase-money market ̶ Recognizing changing industry dynamics and gr
Slide 10: PennyMac Financial Services, Inc.
(ennyMac Financial Services, Inc.
PennyMac Financial Services — Barclays Global Financial Services Conference 2013 on 6ix