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Pennymac cuts lending and fulfillment roles ahead of earnings
The mortgage lender reported Q1 net income of $82 million, with servicing pretax income falling to $12.7 million from $37.3 million in the prior quarter.
Ahead of its after-market earnings report Wednesday, Pennymac said it eliminated select positions in its lending and mortgage fulfillment operations and is offering severance, citing a challenging environment shaped by sustained high interest rates, HousingWire reports.
The lender tied the changes to its plan to align operations with industry loan volume pressure, after recent layoffs in its consumer direct lending operations that included closing an office in Franklin, Tennessee, a month earlier.
In results, Pennymac posted first-quarter net income of $82 million, down from $107 million in the prior quarter but up from $76 million in the year-ago quarter. HousingWire also reports that servicing pretax income declined to $12.7 million from $37.3 million.
Pennymac said weaker servicing performance was driven by mortgage servicing rights valuation changes and hedging losses, though stronger mortgage production revenues helped offset that decline. Separately, the article notes Pennymac is in the process of acquiring subservicer Cenlar for $257.5 million, with the deal expected to close in the second half of the year.