PennyMac Financial Services, Inc. (PFSI) Q3 2023 Earnings Call

Investor webinar replay

Replay transcript excerpt

good afternoon and welcome to penny mac financial services inc's third quarter 2023 earnings call additional earnings materials including presentation slides that will be referred to in this call are available on penny mac financials website at pfsi.pennymac.com before we begin let me remind you that this call may contain forward-looking statements that are subject to certain risks identified on slide two of the earnings presentation that could cause the company's actual results to differ materially, as well as non-GAAP measures that have been reconciled to their GAAP equivalent in the earnings material. I would like to remind everyone, we will only take questions related to PennyMac Financial Services Inc. or PFSI. We also ask that you please keep your questions limited to one preliminary question and one follow-up question, as we'd like to ensure that we can answer as many questions as possible. Now, I'd like to introduce David Spector, PennyMac Financial's Chairman and Chief Executive Officer, and Dan Perotti, PennyMac Financial's Chief Financial Officer. Thank you, Operator. PennyMac Financial produced outstanding results in the third quarter, returning to a double-digit annualized return on equity. While average mortgage rates were up 50 basis points in the prior quarter, we demonstrated the earning power of our balanced business model with exceptionally strong operating income from our large and growing servicing business combined with continued profitability and production. As a result, book value per share grew 3% from the prior quarter. As you can see on slide 4 of the presentation, mortgage rates have continued to increase from record lows in recent years and are now near 8%. As a result, many borrowers who locked in a low fixed-rate mortgage have been ince...