Quarterly home loan originations moved up at PennyMac Financial Services Inc. and appear to be headed to even higher ground. Earnings improved, staffing expanded and servicing grew.
Third-quarter earnings data indicate that $8.582 billion in residential loans were originated during the period.
New business was better than the $7.386 billion in production during the three months ended June 30.
The Moorpark, Calif.-based company closed $7.957 billion during the third-quarter 2013.
During the period beginning Jan. 1, 2014, and ending Sept. 30, 2014, PennyMac originations were $21.115 billion.
Fee-based production processed for affiliate PennyMac Mortgage Investment Trust accounted for $3.7 billion of third-quarter originations.
Total third-quarter business included $8.056 billion in correspondent volume. PennyMac reported an 8.02 percent correspondent market share.
As of the third quarter, PennyMac had 342 correspondent clients. That was more than the 316 correspondent business partners at the end of the second quarter.
While direct originations were a more modest $1.024 billion during the latest period, they have been on a vertical trajectory and were just $0.417 billion in the year-earlier period.
PennyMac closed out September with $9.397 billion in total locks, more than the second quarter’s $8.864 billion and a sign that fourth-quarter business could continue higher.
The mortgage servicing portfolio finished September at $62.083 billion, more than the $58.010 billion portfolio as of June 30.
PennyMac has built up its servicing portfolio substantially from the same point last year, when it was $23.267 billion.
An additional $38.001 billion in loans were subserviced as of the latest date.
PennyMac said it maintained a 1.02 percent servicing market share in the third quarter.
Pretax income improved to $63 million from the second quarter’s $58 million. Earnings were far better than the $35 million generated in the third-quarter 2013.
More than 1,600 people were employed by PennyMac at the end of September, expanding from more than 1,500 employees as of the end of the second quarter.
The sixty most senior executives reportedly had an average mortgage career of 23 years.
