8-K
PennyMac Financial Services, Inc. (PFSI)
UNITED STATES
SECURITIES AND
EXCHANGE COMMISSION
Washington, D.C.
20549
FORM 8-K
CURRENT REPORT
Pursuant to Section
13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):January 29, 2026
PennyMacFinancial Services, Inc.
(Exact name of registrant as specified in its charter)
| Delaware | 001-38727 | 83-1098934 |
|---|---|---|
| (State or other jurisdiction<br><br>of incorporation) | (Commission <br><br>File Number) | (IRS Employer<br><br>Identification No.) |
| 3043 Townsgate Road**, Westlake Village** , California | 91361 | |
| --- | --- | |
| (Address of principal executive<br> offices) | (Zip Code) |
(818) 224-7442
(Registrant’s telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ¨ | Written<br>communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|---|---|
| ¨ | Soliciting<br>material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| --- | --- |
| ¨ | Pre-commencement<br>communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| --- | --- |
| ¨ | Pre-commencement<br>communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
| --- | --- |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
|---|---|---|
| Common Stock, $0.0001 par value | PFSI | New York Stock Exchange |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ¨
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
Item 2.02 Results of Operations and FinancialCondition.
On January 29, 2026, PennyMac Financial Services, Inc. (the “Company”) issued a press release announcing its financial results for the fiscal quarter and year ended December 31, 2025. A copy of the press release and the slide presentation used in connection with the Company’s presentation of financial results were made available on January 29, 2026 and are furnished as Exhibits 99.1 and Exhibit 99.2, respectively. In addition, the Company has made available other supplemental financial information for the fiscal quarter and year ended December 31, 2025 on its website at pfsi.pennymac.com.
The information in Item 2.02 of this report, including the exhibits hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liabilities of Section 18, nor shall it be deemed incorporated by reference into any disclosure document relating to the Company, except to the extent, if any, expressly set forth by specific reference in such filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
| Exhibit No. | Description |
|---|---|
| 99.1 | Press Release, dated January 29, 2026, issued by PennyMac Financial Services, Inc. pertaining to its financial results for the fiscal quarter and year ended December 31, 2025. |
| 99.2 | Earnings Report for use beginning on January 29, 2026 in connection with a presentation of financial results for the fiscal quarter and year ended December 31, 2025. |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| PENNYMAC FINANCIAL SERVICES, INC. | |
|---|---|
| Dated: January 29, 2026 | /s/ Daniel S. Perotti |
| Daniel S. Perotti<br><br> <br>Senior Managing Director and Chief Financial Officer |
Exhibit 99.1
PennyMac Financial Services, Inc. Reports
Fourth Quarter and Full-Year 2025 Results
WESTLAKE VILLAGE, Calif. – January 29, 2026 – PennyMac Financial Services, Inc. (NYSE: PFSI) today reported net income of $106.8 million for the fourth quarter of 2025, or $1.97 per share on a diluted basis, on total net revenues of $538.0 million. Book value per share increased to $82.77 from $81.12 at September 30, 2025.
PFSI’s Board of Directors declared a fourth quarter cash dividend of $0.30 per share, payable on February 26, 2026, to common stockholders of record as of February 16, 2026.
Fourth Quarter 2025 Highlights
| · | Pretax income was $134.4 million, down from $236.4 million in the prior quarter<br>and up from $129.4 million in the fourth quarter of 2024 |
|---|---|
| · | Production segment pretax income was $127.3 million, up from $122.9 million<br>in the prior quarter and $78.0 million in the fourth quarter of 2024 |
| --- | --- |
| o | Total loan acquisitions and originations, including those fulfilled for PennyMac Mortgage Investment Trust (NYSE: PMT), were $42.2<br>billion in unpaid principal balance (UPB), up 16 percent from the prior quarter and 18 percent from the fourth quarter of 2024 |
| --- | --- |
| – | Correspondent acquisitions of conventional conforming and non-Agency eligible loans fulfilled for PMT were $3.7 billion in UPB, up<br>10 percent from the prior quarter and 5 percent from the fourth quarter of 2024 |
| --- | --- |
| – | PMT purchased 17 percent of total conventional conforming correspondent loan volume and 100 percent of total non-Agency eligible correspondent<br>loan volume from PFSI through their fulfillment agreement in the fourth quarter, both percentages unchanged from the prior quarter |
| --- | --- |
| o | Total locks, including those for PMT, were $46.8 billion in UPB, up 8 percent from the prior quarter and 29 percent from the fourth<br>quarter of 2024 |
| --- | --- |
| – | Correspondent lock volume for PMT’s account was $4.1 billion in UPB, down 7 percent from the prior quarter and up 28 percent<br>from the fourth quarter of 2024 |
| --- | --- |
| · | Servicing segment pretax income was $37.3 million,<br>down from $157.4 million in the prior quarter and $87.3 million in the fourth quarter of 2024 |
| --- | --- |
1
| o | Pretax income excluding valuation-related items was $47.8 million, down 70 percent from the prior quarter driven primarily by increased<br>realization of mortgage servicing rights (MSR) cash flows as lower mortgage rates drove higher prepayment activity |
|---|---|
| o | Valuation-related items included: |
| --- | --- |
| – | $40.4 million in MSR fair value gains and $39.4 million in hedging losses |
| --- | --- |
| · | Net impact on pretax income related to these items was $1.0 million or $0.01<br>in diluted earnings per share |
| --- | --- |
| – | $11.4 million provision for losses on active loans |
| --- | --- |
| o | Servicing portfolio grew to $733.6 billion in UPB, up 2 percent from September 30, 2025 and 10 percent from December 31,<br>2024, driven by production volumes which more than offset prepayment activity |
| --- | --- |
| o | Completed the sale of an MSR portfolio totaling $24.4 billion in UPB; PFSI subserviced the portfolio on an interim basis through December 31,<br>2025 and the servicing transfer was completed in early January 2026 |
| --- | --- |
| · | Pretax loss from Corporate and Other was $30.2 million, down from $43.9 million<br>in the prior quarter and $35.9 million in the fourth quarter of 2024 |
| --- | --- |
Full-Year 2025 Highlights
| · | Net income of $501.1 million, up from $311.4 million in 2024 and representing<br>a return on equity of 12 percent |
|---|---|
| · | Pretax income of $551.4 million, up from $401.0 million in 2024 |
| --- | --- |
| · | Total net revenue of $2.0 billion, up from $1.6 billion in 2024 |
| --- | --- |
| · | Total loan production of $145.5 billion in UPB, an increase of 25 percent<br>from 2024 |
| --- | --- |
| · | Servicing portfolio UPB of $733.6 billion at year end, up 10 percent from<br>December 31, 2024 |
| --- | --- |
| · | Issued $2.35 billion of unsecured senior notes with maturities ranging from<br>2032 to 2034 |
| --- | --- |
| · | Issued $300 million of Ginnie Mae MSR term notes due August 2030 |
| --- | --- |
| · | Redeemed $650 million of unsecured notes and $700 million of Ginnie Mae MSR<br>term notes |
| --- | --- |
2
“PFSI finished the year with a solid fourth quarter, generating a 10 percent annualized return on equity with strong production results offset by increased runoff on our MSR asset as prepayment speeds increased,” said Chairman and CEO David Spector. “For the full year 2025, our balanced business model generated very strong financial results. We achieved double-digit earnings growth across both operating segments, with servicing pretax income up 58 percent and production pretax income up 19 percent. These results were driven by significant operational momentum, including a 25 percent increase in production volumes and 10 percent growth in our servicing portfolio UPB. In total, we generated a 12 percent return on equity for the year and 11 percent growth in book value per share, underscoring our ability to consistently create stockholder value through disciplined execution.”
Mr. Spector concluded, “As we look to 2026, Pennymac is uniquely positioned to lead the industry. Our balanced business model and cutting edge technology provides a powerful foundation for our continued growth. We remain focused on the continued advancement of our strategies to drive sustained long-term value for our stockholders.”
3
The following table presents the contributions of PFSI’s segments to pretax income:
| Quarter ended December 31, 2025 | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Production | Servicing | Reportable<br><br> segment total | Corporate <br> and other | Total | |||||||||
| (in thousands) | |||||||||||||
| Revenue: | |||||||||||||
| Net gains on loans held for sale at fair value | $ | 276,060 | $ | 25,543 | $ | 301,603 | $ | - | $ | 301,603 | |||
| Loan origination fees | 68,437 | - | 68,437 | - | 68,437 | ||||||||
| Fulfillment fees from PMT | 6,538 | - | 6,538 | - | 6,538 | ||||||||
| Net loan servicing fees | - | 149,780 | 149,780 | - | 149,780 | ||||||||
| Management fees | - | - | - | 6,856 | 6,856 | ||||||||
| Net interest income (expense): | |||||||||||||
| Interest income | 128,953 | 134,642 | 263,595 | 299 | 263,894 | ||||||||
| Interest expense | 109,189 | 153,807 | 262,996 | - | 262,996 | ||||||||
| 19,764 | (19,165 | ) | 599 | 299 | 898 | ||||||||
| Other | 187 | (2,256 | ) | (2,069 | ) | 5,962 | 3,893 | ||||||
| Total net revenue | 370,986 | 153,902 | 524,888 | 13,117 | 538,005 | ||||||||
| Expenses | |||||||||||||
| Compensation | 123,386 | 51,612 | 174,998 | 33,075 | 208,073 | ||||||||
| Loan origination | 69,651 | - | 69,651 | - | 69,651 | ||||||||
| Technology | 27,909 | 10,847 | 38,756 | (3,378 | ) | 35,378 | |||||||
| Servicing | - | 43,360 | 43,360 | - | 43,360 | ||||||||
| Marketing and advertising | 8,506 | 555 | 9,061 | 1,242 | 10,303 | ||||||||
| Professional services | 3,942 | 1,986 | 5,928 | 4,483 | 10,411 | ||||||||
| Occupancy and equipment | 5,162 | 2,477 | 7,639 | 2,324 | 9,963 | ||||||||
| Other | 5,123 | 5,726 | 10,849 | 5,612 | 16,461 | ||||||||
| Total expenses | 243,679 | 116,563 | 360,242 | 43,358 | 403,600 | ||||||||
| Income (loss) before provision for income taxes | $ | 127,307 | $ | 37,339 | $ | 164,646 | $ | (30,241 | ) | $ | 134,405 |
Production Segment
The Production segment includes the correspondent acquisition of newly originated government-insured and conventional conforming loans for PFSI’s own account, fulfillment services on behalf of PMT and direct lending through the consumer direct and broker direct channels, including the underwriting and acquisition of loans from correspondent sellers on a non-delegated basis.
PFSI’s loan production activity for the quarter totaled $42.2 billion in UPB, $38.5 billion of which was for its own account, and $3.7 billion of which was fee-based fulfillment activity for PMT. Correspondent locks for PFSI and direct lending IRLCs totaled $42.8 billion in UPB, up 10 percent from the prior quarter and 30 percent from the fourth quarter of 2024.
Production segment pretax income was $127.3 million, up from $122.9 million in the prior quarter and $78.0 million in the fourth quarter of 2024. Production segment net revenues totaled $371.0 million, up 3 percent from the prior quarter and 42 percent from the fourth quarter of 2024. The increase in revenue from the prior quarter was primarily due to higher volumes in the consumer direct lending channel and was largely offset by lower margins. The increase from the fourth quarter of 2024 was primarily due to higher volumes across all channels.
4
The components of net gains on loans held for sale are detailed in the following table:
| Quarter ended | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| December 31, <br> 2025 | September 30, <br> 2025 | December 31, <br> 2024 | |||||||
| (in thousands) | |||||||||
| Receipt of MSRs | $ | 775,242 | $ | 700,326 | $ | 748,121 | |||
| Gains on sale of loans to PennyMac Mortgage Investment Trust<br> net of mortgage servicing rights recapture payable | 16,341 | 17,454 | 2,387 | ||||||
| Provision for representations and warranties, net | (2,924 | ) | (2,354 | ) | (1,633 | ) | |||
| Cash loss, including cash hedging results | (492,013 | ) | (284,589 | ) | (373,307 | ) | |||
| Fair value changes of pipeline, inventory and hedges | 4,957 | (116,382 | ) | (153,524 | ) | ||||
| Net gains on mortgage loans held for sale | $ | 301,603 | $ | 314,455 | $ | 222,044 | |||
| Net gains on mortgage loans held for sale by segment: | |||||||||
| Production | $ | 276,060 | $ | 280,092 | $ | 195,070 | |||
| Servicing | $ | 25,543 | $ | 34,363 | $ | 26,974 |
PFSI performs fulfillment services for certain conventional conforming and non-Agency eligible loans that it acquires from non-affiliates in its correspondent production business and subsequently sells to PMT. These services include, but are not limited to, marketing, relationship management, correspondent seller approval and monitoring, loan file review, underwriting, pricing, hedging and activities related to the subsequent sale and securitization of loans in the secondary mortgage markets for PMT.
Fees earned from the fulfillment of correspondent loans on behalf of PMT totaled $6.5 million in the fourth quarter, up 6 percent from the prior quarter and 3 percent from the fourth quarter of 2024. The increase was driven by higher acquisition volumes for PMT’s account.
Correspondent production volumes are initially acquired by PFSI. PMT retains the right to purchase up to 100 percent of non-government correspondent loan production. In the fourth quarter, PMT acquired all non-Agency eligible correspondent production and 17 percent of total conventional conforming correspondent production. In the first quarter of 2026, we expect PMT to acquire all non-Agency eligible correspondent production and 15 to 25 percent of total conventional conforming correspondent production.
Net interest income in the fourth quarter totaled $19.8 million, up from $13.7 million in the prior quarter. Interest income totaled $129.0 million, up from $111.3 million in the prior quarter, and interest expense totaled $109.2 million, up from $97.7 million in the prior quarter, both due to the increase in volumes.
5
Production segment expenses were $243.7 million, up 2 percent from the prior quarter and 33 percent from the fourth quarter of 2024. The increase from the prior quarter was primarily due to higher compensation expenses that resulted from the increase in consumer direct volumes. The increase from the fourth quarter of 2024 was primarily due to higher compensation and loan origination expenses from growth in the direct lending channels.
Servicing Segment
The Servicing segment includes income from owned MSRs and subservicing. The total servicing portfolio increased to $733.6 billion in UPB at December 31, 2025, up 2 percent from September 30, 2025 and up 10 percent from December 31, 2024. PFSI’s owned MSR portfolio totaled $471.0 billion in UPB, a decrease of 1 percent from September 30, 2025 as runoff along with the sale of $24.4 billion in UPB of MSRs more than offset the net growth from production. PFSI’s owned MSR portfolio UPB increased 8 percent from December 31, 2024, primarily due to production volumes, which more than offset runoff and MSR sales. PFSI subservices $262.6 billion in UPB, up 10 percent from the prior quarter. Of total subservicing UPB, $226.8 billion was for PMT, $24.3 billion was subserviced on an interim basis and $11.6 billion was for other non-affiliates.
The table below details PFSI’s servicing portfolio UPB:
| December 31, <br> 2025 | September 30, <br> 2025 | December 31, <br> 2024 | ||||
|---|---|---|---|---|---|---|
| (in thousands) | ||||||
| Owned | ||||||
| Mortgage servicing rights and liabilities | ||||||
| Originated | $ | 448,035,447 | $ | 455,894,902 | $ | 410,393,342 |
| Purchased | 13,999,998 | 14,404,290 | 15,681,406 | |||
| 462,035,445 | 470,299,192 | 426,074,748 | ||||
| Loans held for sale | 8,930,477 | 7,303,091 | 8,128,914 | |||
| 470,965,922 | 477,602,283 | 434,203,662 | ||||
| Subserviced for: | ||||||
| PMT | 226,774,067 | 227,101,009 | 230,753,581 | |||
| Interim servicing | 24,257,095 | 65,286 | 806,584 | |||
| Other non-affiliates | 11,616,738 | 11,863,843 | - | |||
| 262,647,900 | 239,030,138 | 231,560,165 | ||||
| Total loans serviced | $ | 733,613,822 | $ | 716,632,421 | $ | 665,763,827 |
Servicing segment pretax income was $37.3 million, down from $157.4 million in the prior quarter and $87.3 million in the fourth quarter of 2024. Servicing segment net revenues totaled $153.9 million, down from $259.5 million in the prior quarter and $197.5 million in the fourth quarter of 2024.
6
Revenue from net loan servicing fees totaled $149.8 million, down from $241.2 million in the prior quarter and $189.3 million in the fourth quarter of 2024. Net loan servicing fee revenues included $532.2 million in loan servicing fees, down slightly from the prior quarter due to the aforementioned sale of MSRs. Realization of cash flows was $383.4 million in the fourth quarter, up 32 percent from the prior quarter, consistent with the increase in prepayment speeds for the owned portfolio as lower mortgage rates drove higher prepayment activity. Net valuation-related gains totaled $1.0 million, comprised of MSR fair value gains of $40.4 million and hedging losses of $39.4 million.
The following table presents a breakdown of net loan servicing fees:
| Quarter ended | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| December 31, <br> 2025 | September 30, <br> 2025 | December 31, <br> 2024 | |||||||
| (in thousands) | |||||||||
| Loan servicing fees | $ | 532,192 | $ | 535,106 | $ | 472,563 | |||
| Changes in fair value of MSRs and MSLs resulting from: | |||||||||
| Realization of cash flows | (383,368 | ) | (289,679 | ) | (215,590 | ) | |||
| Change in fair value inputs | 40,388 | (102,495 | ) | 540,406 | |||||
| Hedging (losses) gains | (39,432 | ) | 98,306 | (608,112 | ) | ||||
| Net change in fair value of MSRs and MSLs | (382,412 | ) | (293,868 | ) | (283,296 | ) | |||
| Net loan servicing fees | $ | 149,780 | $ | 241,238 | $ | 189,267 |
Servicing segment revenue included $25.5 million in net gains on loans held for sale related to early buyout loans (EBOs), down from $34.4 million in the prior quarter and $27.0 million in the fourth quarter of 2024. The decrease from the prior quarter was primarily driven by the re-introduction of FHA’s trial payment plans, which extended modification timelines and delayed redeliveries into future quarters. These EBOs are previously delinquent loans that were brought back to performing status through PFSI’s successful servicing efforts.
Net interest expense totaled $19.2 million, compared to $15.1 million in the prior quarter and $19.5 million in the fourth quarter of 2024. Interest income was $134.6 million, down slightly from $137.1 million in the prior quarter as lower earnings rates on custodial balances more than offset the benefit of higher average balances. Interest expense was $153.8 million, up slightly from $152.2 million in the prior quarter.
7
Servicing segment expenses totaled $116.6 million, up from $102.1 million in the prior quarter primarily due to an increased provision for losses on active loans associated with seasonal increases in delinquencies and servicing advance balances.
Corporate and Other
Corporate and Other items include amounts attributable to corporate activities not directly attributable to the production and servicing segments as well as management fees earned from PMT. PFSI manages PMT for which it earns base management fees and may earn performance incentive fees.
Pretax loss for Corporate and Other was $30.2 million, down from $43.9 million in the prior quarter and $35.9 million in the fourth quarter of 2024.
Corporate and Other net revenues totaled $13.1 million, and consisted of $6.9 million in management fees, $6.0 million in other revenue, and $0.3 million of net interest income. No performance incentive fees were earned in the fourth quarter.
Expenses were $43.4 million, down from $55.5 million in the prior quarter and $47.4 million in the fourth quarter of 2024. The decrease from the prior quarter was primarily driven by increased capitalization of certain technology expenses and decreased performance-based incentive compensation.
Average PMT shareholders’ equity was $1.8 billion for the fourth quarter of 2025, essentially unchanged from the third quarter of 2025, and down slightly from the fourth quarter of 2024.
8
The following table presents a breakdown of management fees:
| Quarter ended | ||||||
|---|---|---|---|---|---|---|
| December 31, <br> 2025 | September 30, <br> 2025 | December 31, <br> 2024 | ||||
| (in thousands) | ||||||
| Management fees: | ||||||
| Base fees | $ | 6,856 | $ | 6,912 | $ | 7,149 |
| Performance incentive fees | - | - | - | |||
| Total management fees | $ | 6,856 | $ | 6,912 | $ | 7,149 |
| Average PMT shareholders' equity used to calculate base management fees | $ | 1,813,357 | $ | 1,828,365 | $ | 1,896,220 |
Consolidated Expenses
Total expenses were $403.6 million, up from $396.5 million in the prior quarter due to higher expenses in both the production and servicing segments as mentioned above.
Taxes
PFSI recorded a provision for tax expense of $27.6 million, resulting in an effective tax rate of 20.5 percent. The provision for tax expense included a $4.3 million tax benefit consisting of a repricing of deferred tax liabilities and an adjustment to the 2025 tax accrual. PFSI’s tax provision rate in future periods is expected to be 25.1percent, down slightly from 25.2 percent in recent quarters.
***
Management’s slide presentation and accompanying material will be available in the Investor Relations section of the Company’s website at pfsi.pennymac.com after the market closes on Thursday, January 29, 2026. Management will also host a conference call and live audio webcast at 5:00 p.m. Eastern Time to review the Company’s financial results. The webcast can be accessed at pfsi.pennymac.com, and a replay will be available shortly after its conclusion.
***
About PennyMac Financial Services, Inc.
PennyMac Financial Services, Inc. is a specialty financial services firm focused on the production and servicing of U.S. mortgage loans and the management of investments related to the U.S. mortgage market. Founded in 2008, the company is recognized as a leader in the U.S. residential mortgage industry and employs approximately 4,900 people across the country. In 2025, PFSI’s production of newly originated loans totaled $145 billion in UPB, making it a top lender in the nation. As of December 31, 2025, PFSI serviced loans totaling $734 billion in UPB, making it a top mortgage servicer in the nation. Additional information about PFSI is available at pfsi.pennymac.com.
| Media | Investors |
|---|---|
| Kristyn Clark | Kevin Chamberlain |
| mediarelations@pennymac.com | Isaac<br> Garden |
| 805.395.9943 | PFSI_IR@pennymac.com |
| 818.264.4907 |
9
Forward-Looking Statements
This press release 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, our financial results, future operations, business plans and investment strategies, as well as industry and market conditions, all of which are subject to change. Words like “believe,” “expect,” “anticipate,” “promise,” “project,” “plan,” and other expressions or words of similar meanings, as well as future or conditional verbs such as “will,” “would,” “should,” “could,” or “may” are generally intended to identify forward-looking statements. Actual results and operations for any future period may vary materially from those projected herein and from past results discussed herein. Factors which could cause actual results to differ materially from historical results or those anticipated include, but are not limited to: interest rate changes; changes in macroeconomic, consumer and real estate market conditions; changes in housing prices, housing sales and real estate values; changes in homeownership costs and affordability; compliance with changing federal, state and local laws and regulations applicable to the highly regulated industry in which we operate; lawsuits or governmental actions that may result from any noncompliance with the laws and regulations applicable to our business; the mortgage lending and servicing-related regulations promulgated by federal and state regulators and the enforcement of these regulations; the licensing and operational requirements of states and other jurisdictions applicable to our business, to which our bank competitors are not subject; difficulties inherent in adjusting the size of our operations to reflect changes in business levels; purchase and sales opportunities for mortgage servicing rights; our substantial amount of indebtedness; increases in loan delinquencies, defaults and forbearances; foreclosure delays and changes in foreclosure practices; our dependence on U.S. government-sponsored entities and changes in their current roles or their guarantees or guidelines; our reliance on PennyMac Mortgage Investment Trust (NYSE: PMT) as a significant contributor to our mortgage banking business; maintaining sufficient capital and liquidity and compliance with financial covenants; our obligation to indemnify third-party purchasers or repurchase loans if loans that we originate, acquire, service or assist in the fulfillment of, fail to meet certain criteria; our obligation to indemnify PMT if our services fail to meet certain criteria or characteristics or under other circumstances; investment management and incentive fees; the accuracy or changes in the estimates we make about uncertainties, contingencies and asset and liability valuations; conflicts of interest in allocating our services and investment opportunities among us and our advised entity; our ability to mitigate cybersecurity risks, cyber incidents and technology disruptions; the development of artificial intelligence; the effect of public opinion on our reputation; our exposure to risks of loss from severe weather events, man-made or other natural conditions, including climate change and pandemics; our ability to effectively identify, manage and hedge our credit, interest rate, prepayment, liquidity and climate risks; expanding or creating new business activities or strategies; our ability to detect misconduct and fraud; our ability to pay dividends to our stockholders; and our organizational structure and certain requirements in our charter documents. You should not place undue reliance on any forward- looking statement and should consider all of the uncertainties and risks described above, as well as those more fully discussed in reports and other documents filed by the Company with the Securities and Exchange Commission from time to time. The Company undertakes no obligation to publicly update or revise any forward-looking statements or any other information contained herein, and the statements made in this press release are current as of the date of this release only. The press release contains financial information calculated other than in accordance with U.S. generally accepted accounting principles (“GAAP”), such as pretax income excluding valuation-related items and operating net income that provide a meaningful perspective on the Company’s business results since the Company utilizes this information to evaluate and manage the business. Non-GAAP disclosures have limitations as an analytical tool and should not be viewed as a substitute for financial information determined in accordance with GAAP.
10
PENNYMAC FINANCIAL SERVICES, INC.
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
| September 30, <br> 2025 | December 31, <br> 2024 | ||||
|---|---|---|---|---|---|
| ASSETS | |||||
| Cash | 301,680 | $ | 621,921 | $ | 238,482 |
| Short-term investment at fair value | 410,037 | 62,228 | 420,553 | ||
| Principal-only stripped mortgage-backed securities at fair value | 722,528 | 774,021 | 825,865 | ||
| Loans held for sale at fair value | 9,123,410 | 7,490,473 | 8,217,468 | ||
| Derivative assets | 187,775 | 202,082 | 113,076 | ||
| Servicing advances, net | 589,542 | 396,006 | 568,512 | ||
| Mortgage servicing rights at fair value | 9,598,941 | 9,653,942 | 8,744,528 | ||
| Receivable from PennyMac Mortgage Investment Trust | 17,122 | 40,165 | 30,206 | ||
| Loans eligible for repurchase | 7,409,800 | 5,416,967 | 6,157,172 | ||
| Other | 1,027,854 | 743,315 | 771,025 | ||
| Total assets | 29,388,689 | $ | 25,401,120 | $ | 26,086,887 |
| LIABILITIES | |||||
| Assets sold under agreements to repurchase | 8,794,002 | $ | 7,130,423 | $ | 8,685,207 |
| Mortgage loan participation purchase and sale agreements | 696,618 | 699,182 | 496,512 | ||
| Notes payable secured by mortgage servicing assets | 1,326,021 | 1,325,716 | 2,048,972 | ||
| Unsecured senior notes | 4,831,742 | 4,829,113 | 3,164,032 | ||
| Derivative liabilities | 15,806 | 24,276 | 40,900 | ||
| Mortgage servicing liabilities at fair value | 1,572 | 1,593 | 1,683 | ||
| Accounts payable and accrued expenses | 643,896 | 476,094 | 354,414 | ||
| Payable to PennyMac Mortgage Investment Trust | 116,585 | 80,605 | 122,317 | ||
| Payable to exchanged Private National Mortgage Acceptance <br> Company, LLC unitholders under tax receivable agreement | 24,757 | 24,806 | 25,898 | ||
| Income taxes payable | 1,184,020 | 1,151,395 | 1,131,000 | ||
| Liability for loans eligible for repurchase | 7,409,800 | 5,416,967 | 6,157,172 | ||
| Liability for losses under representations and warranties | 34,894 | 33,064 | 29,129 | ||
| Total liabilities | 25,079,713 | 21,193,234 | 22,257,236 | ||
| STOCKHOLDERS' EQUITY | |||||
| Common stock—authorized 200,000,000 shares of 0.0001 par <br> value; issued and outstanding 52,061,346, 51,875,223, and<br> 51,376,616 shares, respectively | 5 | 5 | 5 | ||
| Additional paid-in capital | 96,870 | 86,680 | 56,072 | ||
| Retained earnings | 4,212,101 | 4,121,201 | 3,773,574 | ||
| Total stockholders' equity | 4,308,976 | 4,207,886 | 3,829,651 | ||
| Total liabilities and stockholders’ equity | 29,388,689 | $ | 25,401,120 | $ | 26,086,887 |
All values are in US Dollars.
11
PENNYMAC FINANCIAL SERVICES, INC.
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
| Quarter ended | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| December 31, <br> 2025 | September 30, <br> 2025 | December 31, <br> 2024 | |||||||
| (in thousands, except per share amounts) | |||||||||
| Revenues | |||||||||
| Net gains on loans held for sale at fair value | $ | 301,603 | $ | 314,455 | $ | 222,044 | |||
| Loan origination fees | 68,437 | 61,696 | 57,824 | ||||||
| Fulfillment fees from PennyMac Mortgage Investment Trust | 6,538 | 6,162 | 6,356 | ||||||
| Net loan servicing fees: | |||||||||
| Loan servicing fees | 532,192 | 535,106 | 472,563 | ||||||
| Change in fair value of mortgage servicing rights and mortgage servicing liabilities | (342,980 | ) | (392,174 | ) | 324,816 | ||||
| Mortgage servicing rights hedging results | (39,432 | ) | 98,306 | (608,112 | ) | ||||
| Net loan servicing fees | 149,780 | 241,238 | 189,267 | ||||||
| Net interest income (expense): | |||||||||
| Interest income | 263,894 | 248,753 | 210,859 | ||||||
| Interest expense | 262,996 | 249,900 | 228,111 | ||||||
| 898 | (1,147 | ) | (17,252 | ) | |||||
| Management fees from PennyMac Mortgage Investment Trust | 6,856 | 6,912 | 7,149 | ||||||
| Other | 3,893 | 3,582 | 4,722 | ||||||
| Total net revenues | 538,005 | 632,898 | 470,110 | ||||||
| Expenses | |||||||||
| Compensation | 208,073 | 205,314 | 173,090 | ||||||
| Loan origination | 69,651 | 69,407 | 48,046 | ||||||
| Servicing | 43,360 | 29,105 | 38,088 | ||||||
| Technology | 35,378 | 44,772 | 40,831 | ||||||
| Professional services | 10,411 | 10,145 | 9,987 | ||||||
| Marketing and advertising | 10,303 | 14,016 | 7,765 | ||||||
| Occupancy and equipment | 9,963 | 8,604 | 8,173 | ||||||
| Other | 16,461 | 15,161 | 14,766 | ||||||
| Total expenses | 403,600 | 396,524 | 340,746 | ||||||
| Income before provision for income taxes | 134,405 | 236,374 | 129,364 | ||||||
| Provision for income taxes | 27,574 | 54,871 | 24,875 | ||||||
| Net income | $ | 106,831 | $ | 181,503 | $ | 104,489 | |||
| Earnings per share | |||||||||
| Basic | $ | 2.05 | $ | 3.51 | $ | 2.04 | |||
| Diluted | $ | 1.97 | $ | 3.37 | $ | 1.95 | |||
| Weighted-average common shares outstanding | |||||||||
| Basic | 52,003 | 51,730 | 51,274 | ||||||
| Diluted | 54,171 | 53,879 | 53,576 | ||||||
| Dividend declared per share | $ | 0.30 | $ | 0.30 | $ | 0.30 |
12
PENNYMAC FINANCIAL SERVICES, INC.
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
| Year ended December 31, | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| 2025 | 2024 | 2023 | |||||||
| (in thousands, except earnings per share) | |||||||||
| Revenues | |||||||||
| Net gains on loans held for sale at fair value | $ | 1,071,754 | $ | 817,368 | $ | 545,943 | |||
| Loan origination fees | 235,835 | 185,700 | 146,118 | ||||||
| Fulfillment fees from PennyMac Mortgage Investment Trust | 23,804 | 26,291 | 27,826 | ||||||
| Net loan servicing fees: | |||||||||
| Loan servicing fees | 2,062,433 | 1,799,480 | 1,484,946 | ||||||
| Change in fair value of mortgage servicing rights and mortgage servicing liabilities | (1,413,280 | ) | (433,342 | ) | (605,568 | ) | |||
| Mortgage servicing rights hedging results | 56,546 | (832,483 | ) | (236,778 | ) | ||||
| Net loan servicing fees | 705,699 | 533,655 | 642,600 | ||||||
| Net interest expense: | |||||||||
| Interest income | 924,447 | 793,566 | 632,924 | ||||||
| Interest expense | 960,555 | 819,348 | 637,777 | ||||||
| (36,108 | ) | (25,782 | ) | (4,853 | ) | ||||
| Management fees from PennyMac Mortgage Investment Trust | 27,649 | 28,623 | 28,762 | ||||||
| Other | 17,903 | 27,876 | 15,260 | ||||||
| Total net revenues | 2,046,536 | 1,593,731 | 1,401,656 | ||||||
| Expenses | |||||||||
| Compensation | 782,916 | 632,738 | 576,964 | ||||||
| Loan origination | 251,990 | 164,092 | 114,500 | ||||||
| Technology | 162,604 | 149,547 | 143,152 | ||||||
| Servicing | 122,626 | 105,997 | 69,433 | ||||||
| Marketing and advertising | 46,140 | 21,969 | 17,631 | ||||||
| Professional services | 37,973 | 37,992 | 60,521 | ||||||
| Occupancy and equipment | 35,328 | 32,898 | 36,558 | ||||||
| Legal settlements | — | 1,591 | 162,770 | ||||||
| Other | 55,542 | 45,881 | 36,496 | ||||||
| Total expenses | 1,495,119 | 1,192,705 | 1,218,025 | ||||||
| Income before provision for income taxes | 551,417 | 401,026 | 183,631 | ||||||
| Provision for income taxes | 50,340 | 89,603 | 38,975 | ||||||
| Net income | $ | 501,077 | $ | 311,423 | $ | 144,656 | |||
| Earnings per share | |||||||||
| Basic | $ | 9.69 | $ | 6.11 | $ | 2.89 | |||
| Diluted | $ | 9.30 | $ | 5.84 | $ | 2.74 | |||
| Weighted average shares outstanding | |||||||||
| Basic | 51,728 | 50,990 | 49,978 | ||||||
| Diluted | 53,882 | 53,356 | 52,733 |
13
Exhibit 99.2
| PennyMac Financial Services, Inc.<br>4Q25 EARNINGS REPORT<br>January 2026 |
|---|
| 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,<br>estimates, projections and assumptions with respect to, among other things, our financial results, future operations, business plans and investment strategies, as well as industry<br>and market conditions, all of which are subject to change. Words like “believe,” “expect,” “anticipate,” “promise,” “project,” “plan,” and other expressions or words of similar meanings,<br>as well as future or conditional verbs such as “will,” “would,” “should,” “could,” or “may” are generally intended to identify forward-looking statements. Actual results and operations for<br>any future period may vary materially from those projected herein and from past results discussed herein. These forward-looking statements include, but are not limited to,<br>statements regarding future changes in interest rates, prepayment rates and the housing market; future loan origination, servicing and production, including future production,<br>operating and hedge expenses; future loan delinquencies, defaults and forbearances; future earnings, return on equity as well as other business and financial projections and<br>expectations. Factors which could cause actual results to differ materially from historical results or those anticipated include, but are not limited to: interest rate changes; changes<br>in macroeconomic, consumer and real estate market conditions; changes in housing prices, housing sales and real estate values; changes in homeownership costs and<br>affordability; compliance with changing federal, state and local laws and regulations applicable to the highly regulated industry in which we operate; lawsuits or governmental<br>actions that may result from any noncompliance with the laws and regulations applicable to our business; the mortgage lending and servicing-related regulations promulgated by<br>federal and state regulators and the enforcement of these regulations; the licensing and operational requirements of states and other jurisdictions applicable to our business, to<br>which our bank competitors are not subject; difficulties inherent in adjusting the size of our operations to reflect changes in business levels; purchase and sales opportunities for<br>mortgage servicing rights; our substantial amount of indebtedness; increases in loan delinquencies, defaults and forbearances; foreclosure delays and changes in foreclosure<br>practices; our dependence on U.S. government-sponsored entities and changes in their current roles or their guarantees or guidelines; our reliance on PennyMac Mortgage<br>Investment Trust (NYSE: PMT) as a significant contributor to our mortgage banking business; maintaining sufficient capital and liquidity and compliance with financial covenants;<br>our obligation to indemnify third-party purchasers or repurchase loans if loans that we originate, acquire, service or assist in the fulfillment of, fail to meet certain criteria; our<br>obligation to indemnify PMT if our services fail to meet certain criteria or characteristics or under other circumstances; investment management and incentive fees; the accuracy or<br>changes in the estimates we make about uncertainties, contingencies and asset and liability valuations; conflicts of interest in allocating our services and investment opportunities<br>among us and our advised entity; our ability to mitigate cybersecurity risks, cyber incidents and technology disruptions; the development of artificial intelligence; the effect of public<br>opinion on our reputation; our exposure to risks of loss from severe weather events, man-made or other natural conditions, including climate change and pandemics; our ability to<br>effectively identify, manage and hedge our credit, interest rate, prepayment, liquidity and climate risks; expanding or creating new business activities or strategies; our ability to<br>detect misconduct and fraud; our ability to pay dividends to our stockholders; and our organizational structure and certain requirements in our charter documents. You should not<br>place undue reliance on any forward-looking statement and should consider all of the uncertainties and risks described above, as well as those more fully discussed in reports and<br>other documents filed by the Company with the Securities and Exchange Commission from time to time. The Company undertakes no obligation to publicly update or revise any<br>forward-looking statements or any other information contained herein, and the statements made in this presentation are current as of the date of this presentation only. This<br>presentation contains financial information calculated other than in accordance with U.S. generally accepted accounting principles (“GAAP”), such as pretax income excluding<br>valuation-related items, operating net income, operating return on equity and others that provide a meaningful perspective on the Company’s business results since the Company<br>utilizes this information to evaluate and manage the business. Non-GAAP disclosures have limitations as an analytical tool and should not be viewed as a substitute for financial<br>information determined in accordance with GAAP.<br>2<br>FORWARD-LOOKING STATEMENTS |
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| 3<br>4Q25<br>Results<br>Production<br>Segment<br>Servicing<br>Segment<br>FOURTH QUARTER HIGHLIGHTS<br>Note: All figures are for 4Q25 or are as of 12/31/25<br>(1) EPS = earnings per share; ROE = return on equity; MSR = mortgage servicing rights<br>(2) See slide 31 for a reconciliation of GAAP net income to non-GAAP operating income and annualized operating return on equity<br>(3) Includes volume fulfilled for PennyMac Mortgage Investment Trust (NYSE: PMT)<br>(4) Excludes $40 million in MSR fair value gains, $39 million in hedging losses, and an $11 million provision for losses on active loans - see slide 15<br>(5) UPB = unpaid principal balance; includes loans subserviced for PMT and others<br>Annualized<br>ROE(1)<br>Annualized<br>operating ROE(2)<br>Book value<br>per share<br>Dividend per<br>common share<br>Pretax<br>income<br>Total loan acquisitions<br>and originations(3)<br>PFSI correspondent<br>lock volume<br>Broker direct<br>lock volume<br>Consumer direct<br>lock volume<br>Pretax<br>income<br>Pretax income<br>excluding valuation-related items(4)<br>MSR(1) fair value<br>changes and hedging<br>results<br>MSR fair value<br>changes and hedging<br>impact to diluted EPS<br>Total servicing<br>portfolio UPB(5)<br>$107mm $1.97<br>10% 10%<br>$82.77 $0.30<br>$42.2bn $27.8bn<br>$7.6bn $7.4bn<br>$127mm $37mm<br>$48mm $1mm<br>$0.01 $734bn<br>Net<br>income<br>Diluted<br>EPS(1)<br>Financial results impacted by increased runoff of mortgage servicing rights, which outpaced the growth in<br>production-related income |
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| 2025 WAS ANOTHER YEAR OF STEADY GROWTH AND CONSISTENT PROFITABILITY<br>4<br>38%<br>Y/Y Growth<br>in Pretax<br>Income<br>12%<br>Return on<br>Equity<br>61%<br>Y/Y Growth<br>in Net<br>Income<br>11%<br>Y/Y Growth in<br>Book Value<br>Per Share<br>Financial Highlights<br>(1) Includes volume fulfilled for PMT<br>(2) Includes loans subserviced for PMT and others<br>Production Segment Highlights<br>Total Volumes(1) (UPB in billions) - up 25% Y/Y<br>Pretax Income (in millions) - up 19% Y/Y<br>Servicing Segment Highlights<br>Total Portfolio(2) (UPB in billions) - up 10% Y/Y<br>Pretax Income (in millions) - up 58% Y/Y<br>2025<br>2024<br>2025<br>2024<br>2025<br>2024<br>2025<br>2024 |
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| 4Q25 STRATEGIC UPDATE |
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| Mortgage Banking Operating Pretax Income<br>($ in millions)<br>Production<br>6<br>Annualized Operating ROE(1)<br>Note: Figures may not sum due to rounding<br>(1) See slide 31 for a reconciliation of GAAP to non-GAAP items<br>Servicing net of valuation related changes(1)<br>DELIVERING DOUBLE-DIGIT OPERATING RETURNS ON EQUITY<br> • Through 2026, we expect operating returns on equity to move from low double digits to mid-to-high<br>teens as we continue to ramp operations and enhance efficiencies |
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| 7<br>EARNINGS POTENTIAL FROM CONSUMER DIRECT RECAPTURE OPPORTUNITY<br>Gov’t. Loan Refinance Recapture Rates<br>Conv. Loans Refinance Recapture Rates<br> > 7.00%<br>6.50 - 6.99%<br>5.50 - 5.99%<br>6.00 - 6.49%<br>5.00 - 5.49%<br>Note: Figures may not sum due to rounding<br>(1) Includes first-lien serviced for PFSI’s own account as well as those subserviced for PMT and others<br>(2) Numerator = UPB of new consumer direct first lien refinance originations for existing portfolio customers; denominator = UPB of payoffs with no transfer of title or MLS listing identified<br>(3) Numerator = UPB of new consumer direct first lien refinance originations for existing portfolio customers + UPB of new consumer direct closed-end second lien (CES) originations from portfolio customers<br>+ UPB of retained first-liens for associated CES originations; denominator = UPB of payoffs with no transfer of title or MLS listing identified + UPB of retained first-liens for associated CES originations<br>Refinance recapture(2)<br>Refinance recapture (inc. CES)(3)<br>Refinance recapture(2)<br>Refinance recapture (inc. CES)(3)<br>Gov’t. Loans: Note Rates >5%(1)<br>(UPB in billions)<br>Conv. Loans: Note Rates >5%(1)<br>(UPB in billions)<br>12/31/25<br>12/31/25<br> > 7.00%<br>6.50 - 6.99%<br>6.00 - 6.49%<br>5.50 - 5.99%<br>5.00 - 5.49%<br> • Strong production<br>segment results in 2025<br>driven by successful<br>recapture activities<br> • While recapture rates have<br>improved, significant<br>upside potential remains<br> ‒ Investments in AI and<br>other technologies,<br>including the<br>introduction of Vesta’s<br>loan origination system,<br>and implementation of<br>specific solutions to<br>increase recapture rates<br> • Closed-end second liens for<br>customers to access home<br>equity while retaining their<br>low-rate, first lien mortgage |
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| 8<br>THE VESTA TRANSFORMATION: DRIVING CONSUMER DIRECT GROWTH AND EFFICIENCY<br>Loan Officer Time<br>Spent Locking a Loan<br>(per call)<br>Average Loan<br>Processing Time<br>(end-to-end)<br>~50%<br>efficiency gains<br>for loan officers<br>~25%<br>reduced loan<br>processing time<br>SALES<br> ● Enables loan officers to<br>handle significantly more<br>lead volume, driving<br>scalability without a dramatic<br>headcount increase<br> ● Less time on the phone<br>improves conversion rates<br>FULFILLMENT<br> ● Increases capacity without<br>increasing operational costs<br> ● Represents a massive<br>efficiency gain when<br>multiplied across<br>Pennymac’s total production<br>volumes<br>Automation of previously manual tasks is delivering an immediate impact,<br>and Vesta’s modern architecture has potential to unlock significantly more efficiency gains<br>Note: PFSI has a long-term minority equity investment in Vesta |
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| 9<br>Synchronizing technology, brand growth, and data-driven execution to<br>own the customer relationship and drive recapture to new heights<br>Leveraging Vesta<br>Our new LOS enables growth in<br>capacity, quicker closing times and<br>higher conversion rates with a<br>modern and transparent closing<br>experience<br>Skill-Based Routing<br>Ensuring every customer is instantly<br>connected to the expert best suited<br>to their unique profile for a<br>personalized, high-touch experience<br>Deeper Servicing Integrations<br>Anticipating borrower needs through<br>real-time data to provide timely,<br>personalized loan solutions the moment<br>market conditions shift<br>Brand & Marketing Technology<br>Pairing growth in brand awareness with<br>data-driven insights to maintain a<br>consistent, helpful presence,<br>transforming a single transaction into a<br>lifetime partnership<br>A TECH-ENABLED ORIGINATION EXPERIENCE TO RETAIN CUSTOMERS FOR LIFE |
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| KEY OPERATING METRICS &<br>OTHER FINANCIAL SCHEDULES |
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| PENNYMAC’S MARKET SHARE OVER TIME ACROSS ITS BUSINESSES<br>11<br>Loan Servicing Market Share Correspondent Production Market Share(1) (1)<br>Broker Direct Market Share(1) Consumer Direct Market Share(1)<br>Note: All figures are for PFSI and include volume fulfilled or subserviced for PMT<br>(1) Historical market share: Inside Mortgage Finance; excludes second lien originations. For 2025, we estimate $1.9 trillion in total origination volume, and that the correspondent channel represented 30% of the overall origination market, retail represented<br>50%, and broker represented 20%. Loan servicing market share is based on PFSI’s servicing portfolio UPB of $734 billion divided by $14.7 trillion in mortgage debt outstanding |
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| Acquisitions for PFSI(1)<br>12<br>PRODUCTION SEGMENT HIGHLIGHTS – VOLUME BY CHANNEL<br>Broker Direct<br>(UPB in billions)<br>See slides 22 and 23 for more details<br>(1) Government-insured or guaranteed loans and certain conventional loans acquired through PFSI’s correspondent production business; PFSI earns income from holding and selling or securitizing the loans<br>(2) Loans fulfilled for PMT; for these loans, PFSI earns a fulfillment fee from PMT rather than income from holding and selling or securitizing the loans<br>(3) Includes locks related to loans sold to PMT<br>(4) Commitments to originate mortgage loans at specified terms at period end<br>Consumer Direct<br>(UPB in billions)<br>Correspondent<br>(UPB in billions)<br>Acquisitions for PMT(2) Originations<br>Locks: $8.0bn<br>Acquisitions: $8.9bn<br>Locks: $3.2bn<br>Originations: $1.7bn<br>Committed pipeline(4): $2.8bn<br>Locks: $3.2bn<br>Originations: $1.6bn<br>Committed pipeline(4): $3.6bn<br>Total Locks(3)<br>January (estimated) January (estimated) January (estimated)<br>Locks Originations Locks |
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| • Revenue per fallout adjusted lock for PFSI’s own account was 78 basis points in 4Q25, down from 86 basis points in 3Q25<br> ‒ Lower margins in PFSI correspondent due to higher levels of competition<br> ‒ Increased revenue contribution from consumer direct; higher volumes partially offset by lower margins due to a higher percentage of first-lien<br>versus closed-end second lien loans, as well as a more focused effort on recapture of higher-balance but lower-margin conventional loans<br> ‒ Other revenue driven primarily by improved secondary market execution relative to initial pricing<br> • Production expenses(4) increased 3% from the prior quarter due primarily to higher volumes<br>13<br>DRIVERS OF PRODUCTION SEGMENT RESULTS<br>4Q24 3Q25 4Q25<br>($ in millions)<br>Fallout<br>Adjusted<br>Locks<br>Margin /<br>Fulfillment<br>Fee (bps)(1)<br>Revenue<br>Contribution<br>(net of Loan<br>origination<br>expense)<br>% of<br>Production<br>Revenue<br>Fallout<br>Adjusted<br>Locks<br>Margin /<br>Fulfillment<br>Fee (bps)(1)<br>Revenue<br>Contribution<br>(net of Loan<br>origination<br>expense)<br>% of<br>Production<br>Revenue<br>Fallout<br>Adjusted<br>Locks<br>Margin /<br>Fulfillment<br>Fee (bps)(1)<br>Revenue<br>Contribution<br>(net of Loan<br>origination<br>expense)<br>% of<br>Production<br>Revenue<br>PFSI correspondent(2) $ 24,101 27 $ 66.1 31% $ 23,585 30 $ 71.7 25% $ 27,149 25 $ 69.0 23%<br>Broker direct 3,287 99 32.5 15% 5,893 97 57.1 20% 5,576 101 56.1 19%<br>Consumer direct 2,334 344 80.3 38% 3,872 328 127.1 43% 4,971 274 136.1 45%<br>Other(3) n/a n/a 27.9 13% n/a n/a 30.3 10% n/a n/a 33.6 11%<br>Total PFSI account revenues(4) $ 29,723 70 $ 206.7 97% $ 33,350 86 $ 286.2 98% $ 37,697 78 $ 294.8 98%<br>PMT conventional correspondent 2,550 25 6.4 3% 3,602 17 6.2 2% 3,303 20 6.5 2%<br>Total Production revenues(4) 66 $ 213.1 100% 79 $ 292.4 100% 73 $ 301.3 100%<br>Production expenses(4) $ 32,273 42 $ 135.1 63% $ 36,953 46 $ 169.5 58% $ 41,000 42 $ 174.0 58%<br>Production segment pretax income 24 $ 78.0 37% 33 $ 122.9 42% 31 $ 127.3 42%<br>Note: Figures may not sum due to rounding<br>(1) Expected revenue net of direct origination costs at time of lock (2) Includes government-insured or guaranteed loans and certain conventional loans for PFSI’s own account (3) Reflects timing of revenue and loan origination expense recognition, hedging,<br>pricing & execution changes, and other items (4) Total PFSI account revenues, total production revenues and production expenses are presented net of loan origination expenses, which are managed as a component of revenue margins |
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| Selected Operational Metrics<br>3Q25 4Q25<br>Loans serviced (in thousands) 2,746 2,788<br>60+ day delinquency rate - owned portfolio(1) 3.4% 4.2%<br>60+ day delinquency rate - sub-serviced portfolio(2) 0.7% 0.7%<br>Actual CPR - owned portfolio(1) 8.6% 13.0%<br>Actual CPR - sub-serviced portfolio(2) 6.6% 7.9%<br>UPB of completed modifications ($ in millions)(3) $3,664 $1,622<br>EBO loan volume ($ in millions)(4) $1,146 $623<br>Owned Subserviced(2)<br>SERVICING SEGMENT HIGHLIGHTS<br>14<br>Loan Servicing Portfolio Composition<br>(UPB in billions)<br>Net Portfolio Growth<br>(UPB in billions)<br>Note: Figures may not sum due to rounding<br>(1) Owned portfolio is predominantly government-insured and guaranteed loans – see slide 29 for additional details; delinquency data based on loan count (i.e., not UPB); CPR = Conditional Prepayment Rate<br>(2) Represents MSRs that we subservice for PMT and others<br>(3) UPB of completed modifications includes loss mitigation efforts associated with partial claims programs<br>(4) Early buyouts of delinquent loans from Ginnie Mae pools during the period<br>(5) Also includes loans sold with servicing released<br>(6) Includes consumer and broker direct production, government and conventional correspondent acquisitions, and conventional conforming and jumbo loan acquisitions subserviced for PMT<br>(5) (6)<br> • Servicing portfolio totaled $733.6 billion in UPB at December 31,<br>2025, up 2% Q/Q and 10% Y/Y<br> • Sold $24 billion in UPB of low note-rate Ginnie Mae MSR; servicing<br>transfer was completed after quarter-end<br> • Production volumes more than offset prepayment activity, leading<br>to continued portfolio growth<br> • 60+ day delinquency rates for owned MSR were up from the end of<br>the prior quarter, consistent with typical seasonal trends<br> • Modification and EBO loan volume decreased from the prior quarter |
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| SERVICING PROFITABILITY EXCLUDING VALUATION-RELATED CHANGES<br>15<br>Note: Figures may not sum due to rounding<br>(1) Of average portfolio UPB, annualized (2) Comprised of net gains on mortgage loans held for sale at fair value and interest income related to EBO loans (3) Consists of interest shortfall and recording and release fees<br>(4) Changes in fair value do not include realization of MSR cash flows (5) Considered in the assessment of MSR fair value changes<br>4Q24 3Q25 4Q25<br>$ in millions<br>basis<br>points⁽¹⁾ $ in millions<br>basis<br>points⁽¹⁾ $ in millions<br>basis<br>points⁽¹⁾<br>Loan servicing fees $ 472.6 28.8 $ 535.1 30.2 $ 532.2 29.4<br>Earnings on custodial balances and deposits and other income 109.7 6.7 133.6 7.5 133.6 7.4<br>Realization of MSR cash flows (215.6) (13.1) (289.7) (16.4) (383.4) (21.2)<br>EBO loan-related revenue⁽²⁾ 34.1 2.1 37.9 2.1 26.6 1.5<br>Servicing expenses:<br>Operating expenses (81.5) (5.0) (84.5) (4.8) (81.8) (4.5)<br>Payoff-related expense⁽³⁾ (20.0) (1.2) (18.2) (1.0) (29.3) (1.6)<br>Losses and provisions for defaulted loans (13.4) (0.8) (18.5) (1.0) (23.9) (1.3)<br>EBO loan transaction-related expense (1.1) (0.1) (1.0) (0.1) (0.6) (0.0)<br>Interest expense (116.6) (7.1) (133.0) (7.5) (125.7) (6.9)<br>Non-GAAP: Pretax income excluding valuation-related changes $ 168.3 10.3 $ 161.7 9.1 $ 47.8 2.6<br>Valuation-related changes<br>MSR fair value⁽⁴⁾ 540.4 (102.5) 40.4<br>Hedging derivatives (losses) gains (608.1) 98.3 (39.4)<br>(Provision for) reversal of losses on active loans⁽⁵⁾ (13.3) (0.1) (11.4)<br>GAAP: Servicing segment pretax income $ 87.3 $ 157.4 $ 37.3<br>Average servicing portfolio UPB $ 656,406 $ 708,612 $ 724,283<br> • Loan servicing fees essentially unchanged from the prior quarter as MSR sales offset owned portfolio growth from production; operating expenses<br>decreased<br> • Earnings on custodial balances and deposits were unchanged from the prior quarter as the impact from higher average balances was offset by lower<br>earnings rates<br> – Custodial funds managed for PFSI’s owned servicing portfolio averaged $9.1 billion in 4Q25, up from $8.5 billion in 3Q25<br> • Realization of MSR cash flows was up 32% from the prior quarter, consistent with the increase in prepayment speeds for our owned portfolio as lower<br>mortgage rates drove higher prepayment activity<br> • EBO revenue decreased as the re-introduction of FHA’s trial payment plans extended modification timelines and delayed redeliveries into future quarters |
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| 16<br>HEDGING APPROACH MODERATES THE VOLATILITY OF PFSI’S RESULTS<br>MSR Valuation Changes and Offsets<br>($ in millions)<br>MSR fair value change before realization of cash flows<br>Hedging and related gains (losses)<br>Production pretax income<br>Attributed Performance MSR Hedge Net<br>Rate Impacts $35.5 $(37.6) $(2.1)<br>Hedge Costs - $(1.8) $(1.8)<br>Other Assumption & Performance Impacts $4.9 - $4.9<br> Prepayment-related $0.0 - $0.0<br> Delinquency-related $12.1 - $12.1<br> Other $(7.2) - $(7.2)<br>Total $40.4 $(39.4) $1.0<br> ● In 4Q25, gains from changes in fair value inputs on MSR<br>were offset by hedging declines and costs<br> ● Hedge costs are expected to remain contained, and we<br>expect to more consistently realize results in line with our<br>targeted hedge ratio going forward<br> ● Shape of the yield curve, volatility, changes in mortgage<br>basis and other factors can impact our realized hedge<br>ratio |
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| • Active management of targeted D/E ratios:<br> ‒ Total D/E near 3.5x with fluctuations largely driven<br>by the origination environment or other market<br>opportunities<br> ‒ Non-funding D/E ratio near 1.5x<br>MSR & Servicing<br>Advance Financing<br>PFSI’S STRONG BALANCE SHEET AND DIVERSE CAPITAL STRUCTURES<br>17<br>Low Debt-to-Equity (D/E) Ratio<br>Diverse Financing Sources<br>High Tangible Net Worth (TNW)(2)/Assets<br> • High tangible net worth (TNW) / assets excluding loans<br>eligible for repurchase<br> • Unsecured senior notes enhance liquidity at low, fixed<br>interest rates; first maturity in February 2029<br> • As of December 31, 2025 total liquidity including cash<br>and amounts available to draw with collateral pledged<br>was $4.6 billion<br>Non-funding D/E(1) Total D/E<br>TNW / Assets TNW / Assets ex. Loans eligible for repurchase<br>Financing capacity<br>across multiple<br>banks<br>Note: All figures are as of December 31, 2025<br>(1) Non-funding debt includes face value of unsecured senior notes and notes payable secured by MSR, in addition to the amount drawn on the variable funding note<br>(2) Tangible net worth excludes capitalized software |
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| APPENDIX |
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| Portfolio growth drives higher recurring fee income; prepayment speeds<br>slow in rising rate environments, a natural hedge to origination income<br>Refinance recapture to<br>drive earnings growth<br>when rates decline<br>19<br>COMPREHENSIVE MORTGAGE BANKING PLATFORM IS A FLYWHEEL<br>Large volumes of production<br>grow servicing portfolio<br>2<br>nd largest in the U.S.(1) 5<br>th largest in the U.S.(2)<br>A culture of continuous process improvement and technological innovation<br>to drive further scale and operational efficiency gains<br>Customer base of 2.8 million<br>drives leads for consumer direct<br>Correspondent<br>Production<br>Broker<br>Direct<br>Consumer<br>Direct<br>Leading market position in third-party lending<br>enables access to the more consistent and<br>growing purchase market<br>Servicing Portfolio UPB(2)<br>(in billions)<br>(1) Inside Mortgage Finance for the 12 months ended 12/31/25<br>(2) Inside Mortgage Finance as of 9/30/25; includes volume subserviced for PMT and others<br>Loan Production Loan Servicing |
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| PFSI Purchase Mix Industry Purchase Mix(5)<br>20<br>TRACK RECORD OF STRONG PERFORMANCE ACROSS MARKET ENVIRONMENTS<br>Proven ability to<br>generate attractive<br>ROEs…<br> …across different<br>market environments…<br> …with a strong<br>orientation towards<br>purchase money<br>mortgages.<br>(1) Represents partial year; initial public offering was May 8, 2013<br>(2) Adjusted return on equity was 7% excluding arbitration accrual of $158 million and related tax impact<br>(3) Inside Mortgage Finance<br>(4) Bloomberg<br>(5) Inside Mortgage Finance for historical industry purchase mix, 4Q25 is an estimate based on Mortgage Bankers Association (1/21/26) and Fannie Mae (1/13/26) forecasts<br>Average: 20%<br>U.S. Origination Market(3)<br>(in trillions)<br>PFSI's Annualized Return on Average Common Stockholders' Equity (ROE)<br>10-Year Treasury Yield(4) |
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| (1) Freddie Mac Primary Mortgage Market Survey. (2) U.S. Department of the Treasury. (3) Actual originations: Inside Mortgage Finance; Forecast originations; Average of Mortgage Bankers Association (1/21/26) and Fannie Mae (1/13/26) forecasts<br>(4) 10-year Treasury bond yield and 2/10 year Treasury yield spread: Bloomberg. Average 30-year fixed rate mortgage: Freddie Mac Primary Mortgage Market Survey. Average secondary mortgage rate: 30-Year FNCL Par Coupon Index (MTGEFNCL), Bloomberg.<br>U.S. home price appreciation: S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index (SPCSUSA); data is as of 10/31/25. Residential mortgage originations are for the quarterly period ended; source: Inside Mortgage Finance<br>CURRENT MARKET ENVIRONMENT AND MACROECONOMIC TRENDS<br>21<br>Average 30-year fixed rate mortgage(1)<br>Macroeconomic Metrics(4) U.S. Origination Market Forecast(3)<br>(UPB in trillions)<br>10-year Treasury Bond Yield(2)<br>12/31/24 3/31/25 6/30/25 9/30/25 12/31/25<br>10-year Treasury bond yield 4.6% 4.2% 4.2% 4.2% 4.2%<br>2/10 year Treasury yield spread 0.3% 0.3% 0.5% 0.5% 0.7%<br>30-year fixed rate mortgage 6.9% 6.7% 6.8% 6.3% 6.2%<br>Secondary mortgage rate 5.9% 5.6% 5.5% 5.2% 5.0%<br>U.S. home price appreciation<br>(Y/Y% change) 4.0% 3.4% 1.9% 1.3% 1.4%<br>Residential mortgage originations<br>(in billions) $460 $355 $495 $485 $575<br>6.30% 6.18% 4.15% 4.17%<br>Purchase Refinance |
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| ACQUISITIONS AND ORIGINATIONS BY PRODUCT<br>22<br>Note: Figures may not sum due to rounding<br>Unaudited ($ in millions) 4Q24 1Q25 2Q25 3Q25 4Q25<br>Correspondent Acquisitions<br>Conventional Conforming - for PMT $ 3,241 $ 2,437 $ 2,740 $ 2,786 $ 2,903<br>Conventional Conforming - for PFSI 13,567 8,961 13,521 13,444 14,525<br>Government - for PFSI 11,018 11,263 13,235 11,020 12,286<br>Jumbo - for PMT 256 344 346 557 748<br>Non-QM - for PMT - - - - 32<br>Total $ 28,082 $ 23,005 $ 29,841 $ 27,807 $ 30,494<br>Broker Direct Originations - for PFSI<br>Conventional Conforming $ 2,115 $ 1,658 $ 2,876 $ 3,205 $ 3,528<br>Government 1,340 887 1,546 1,315 1,651<br>Jumbo 698 744 813 1,028 1,280<br>Closed-end second liens 29 28 37 44 39<br>Total $ 4,182 $ 3,316 $ 5,272 $ 5,592 $ 6,497<br>Consumer Direct Originations - for PFSI<br>Conventional Conforming $ 580 $ 517 $ 739 $ 778 $ 1,620<br>Government 2,514 1,728 1,593 1,833 3,230<br>Jumbo 22 22 20 36 20<br>Closed-end second liens 302 338 417 446 333<br>Total $ 3,418 $ 2,604 $ 2,768 $ 3,093 $ 5,203<br>Total acquisitions / originations $ 35,682 $ 28,926 $ 37,882 $ 36,492 $ 42,195<br>UPB of loans fulfilled for PMT<br>(included in correspondent acquisitions) $ 3,497 $ 2,782 $ 3,086 $ 3,343 $ 3,682<br>UPB of non-fulfillment loans sold to PMT $ 463 $ 637 $ 1,010 $ 1,296 $ 1,810 |
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| Unaudited ($ in millions) 4Q24 1Q25 2Q25 3Q25 4Q25<br>Correspondent Locks<br>Conventional Conforming - for PMT $ 2,741 $ 2,210 $ 3,009 $ 3,364 $ 3,282<br>Conventional Conforming - for PFSI 13,810 9,988 14,697 13,936 14,669<br>Government - for PFSI 11,088 12,107 13,960 10,965 13,087<br>Jumbo - for PMT 454 526 529 1,036 700<br>Non-QM - for PMT - - - - 107<br>Total $ 28,093 $ 24,831 $ 32,197 $ 29,301 $ 31,844<br>Broker Direct Locks - for PFSI<br>Conventional Conforming $ 2,334 $ 2,647 $ 3,651 $ 4,205 $ 4,056<br>Government 1,249 1,592 2,094 1,931 2,132<br>Jumbo 834 1,192 1,354 1,767 1,320<br>Closed-end second liens 34 48 52 65 45<br>Total $ 4,451 $ 5,478 $ 7,151 $ 7,967 $ 7,553<br>Consumer Direct Locks - for PFSI<br>Conventional Conforming $ 744 $ 939 $ 992 $ 1,601 $ 2,708<br>Government 2,480 2,416 2,155 3,724 4,270<br>Jumbo 29 27 29 53 42<br>Closed-end second liens 397 501 613 574 423<br>Total $ 3,650 $ 3,883 $ 3,788 $ 5,952 $ 7,444<br>Total locks $ 36,194 $ 34,192 $ 43,136 $ 43,220 $ 46,841<br>INTEREST RATE LOCKS BY PRODUCT<br>23<br>Note: Figures may not sum due to rounding |
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| Correspondent Broker Direct<br>PRODUCTION SEGMENT HIGHLIGHTS – BUSINESS TRENDS BY CHANNEL<br>24<br>Consumer Direct<br> ● Pennymac remains the largest<br>correspondent aggregator in the U.S.<br> ● Lock volumes for PFSI’s account were up<br>11% and acquisitions were up 10% from<br>3Q25<br> ● PMT purchased 17% of total conventional<br>conforming correspondent production and<br>100% of non-Agency eligible production<br>from PFSI through their fulfillment<br>agreement in 4Q25<br> ‒ We expect PMT to purchase<br>approximately 15 - 25% of total<br>conventional conforming correspondent<br>production and 100% of non-Agency<br>eligible production in 1Q26<br> ● 790 correspondent sellers at December<br>31, 2025, up from 783 on September 30,<br>2025<br> ● Purchase volume in 4Q25 was 76% of<br>total acquisitions<br>Multi-channel approach provides flexibility and has proven to be a competitive advantage, supporting profitability and<br>pricing discipline while driving growth of the servicing portfolio<br> ● Lock volumes were down 5% and<br>originations were up 16% from 3Q25<br> ● Approved brokers totaled 5,267 at<br>December 31, 2025 up 2% from<br>September 30, 2025 and 17% from<br>December 31, 2024<br> ‒ Top brokers see Pennymac as a<br>strong alternative to the top two<br>channel lenders<br> ● Purchase volume in 4Q25 was 65% of<br>total originations<br> ● Continued strength in jumbo<br>originations, which were 20% of total<br>originations in 4Q25, up from 18% in<br>3Q25<br> ● Lock volumes were up 25% and<br>originations were up 68% from 3Q25<br> ● Continue to provide for the spectrum of<br>needs of the 2.8 million customers in our<br>servicing portfolio<br> ‒ Refinance lock volume in 4Q25 was<br>$6.5 billion, or 87% of total locks,<br>compared to $4.8 billion, or 81% in<br>3Q25<br> ‒ 96% of total lock volume, including both<br>first and second-liens, was sourced<br>from our large and growing servicing<br>portfolio<br> ‒ $333 million of closed-end second lien<br>mortgage loans funded in 4Q25, down<br>from $446 million in 3Q25 |
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| CREDIT CHARACTERISTICS BY ACQUISITION/ORIGINATION PERIOD<br>25<br>Correspondent<br>Broker Direct<br>Consumer Direct<br>Note: Figures exclude closed-end second liens<br>Weighted Average FICO Weighted Average DTI<br>4Q24 1Q25 2Q25 3Q25 4Q25 4Q24 1Q25 2Q25 3Q25 4Q25<br>Government-insured 695 687 688 683 702 Government-insured 44 44 44 44 43<br>Conventional Conforming 755 755 754 749 765 Conventional Conforming 37 37 37 37 36<br>Jumbo 770 778 763 768 779 Jumbo 37 45 35 40 40<br>Weighted Average FICO Weighted Average DTI<br>4Q24 1Q25 2Q25 3Q25 4Q25 4Q24 1Q25 2Q25 3Q25 4Q25<br>Government-insured 718 712 715 714 713 Government-insured 46 45 45 45 45<br>Conventional Conforming 769 765 763 765 766 Conventional Conforming 38 38 38 38 37<br>Jumbo 778 775 778 780 777 Jumbo 37 38 37 35 35<br>Weighted Average FICO Weighted Average DTI<br>4Q24 1Q25 2Q25 3Q25 4Q25 4Q24 1Q25 2Q25 3Q25 4Q25<br>Government-insured 719 718 721 722 721 Government-insured 44 45 45 45 45<br>Conventional Conforming 770 768 769 770 769 Conventional Conforming 38 38 38 38 38<br>Jumbo 778 777 777 778 775 Jumbo 36 37 38 36 36<br>Non-QM N/A N/A N/A N/A 764 Non-QM N/A N/A N/A N/A 37 |
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| December 31, 2025<br>Mortgage<br>Servicing Rights<br>Unaudited ($ in millions)<br>Pool UPB(1) $462,020<br>Weighted average coupon 5.0%<br>Weighted average servicing fee/spread 0.39%<br>Weighted average prepayment speed assumption (CPR) 9.0%<br>Fair value $9,599<br>As a multiple of servicing fee 5.3<br>26<br>MSR ASSET VALUATION<br>(1) Excludes loans held for sale at fair value |
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| • Pennymac’s per loan servicing expenses are among the lowest in<br>the industry, despite a higher concentration of government loans,<br>which are more difficult to service<br> • Industry-leading customer service as evidenced by our multi-year<br>servicing excellence awards from HUD, Fannie Mae and Freddie Mac<br> • Lower unit costs due to the implementation of SSE, our proprietary<br>servicing system, in 2019<br>27<br>Operating Expenses<br>(annualized bps of average servicing portfolio UPB)<br>Direct Servicing Expense(1)<br>(annual $ cost per loan)<br>TECHNOLOGY DRIVING EFFICIENCIES AND LOWER EXPENSES IN SERVICING<br> • Culture of continuous process improvement<br> • Continuing to increase efficiency through the use of emerging<br>technologies, including capabilities of generative artificial<br>intelligence<br> • Increased scale and efficiency as the portfolio grows<br> • Delinquencies remain moderated in the current market<br>environment, further reducing operating expenses<br>% Government Portfolio<br>(1) MBA 2025 Servicing Operations Study (2024 data), Pennymac is included within Large IMBs |
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| DELINQUENCY TRENDS AND SERVICING ADVANCES OUTSTANDING<br>28<br>Trends in Delinquency and Foreclosure Rates(1)<br>30-60 Day 60-90 Day 90+ Day In foreclosure<br>(1) Owned MSR portfolio and includes loans acquired for sale at fair value; delinquency and foreclosure rates based on UPB; as of 12/31/25, the UPB of mortgage servicing rights owned by PFSI and loans held for sale totaled $471 billion<br> ● Overall, mortgage delinquency rates for the MSR portfolio increased slightly from the prior quarter, consistent with typical<br>seasonal trends and within expected ranges for a predominately government-insured or guaranteed loan portfolio<br> ● Servicing advances outstanding for PFSI’s MSR portfolio were approximately $522 million at December 31, 2025, up from $353<br>million at September 30, 2025 primarily due to seasonal property tax payments<br> ‒ No principal and interest advances are outstanding |
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| 29<br>PFSI’S OWNED MSR PORTFOLIO CHARACTERISTICS<br>Note: Figures may not sum due to rounding<br>(1) Government loans include loans securitized in Ginnie Mae pools as well as loans sold to private investors<br>(2) Other represents MSRs collateralized by conventional loans sold to private investors<br>(3) Loan-to-values for closed-end seconds include only the second lien balance<br>(4) Excludes loans held for sale at fair value<br>As of December 31, 2025<br>Segment UPB<br>($ in billions)⁽⁴⁾<br>% of<br>Total UPB<br>Loan<br>count<br>(in thousands)<br>Note<br>rate<br>Seasoning<br>(months)<br>Remaining<br>maturity<br>(months)<br>Loan size<br>($ in<br>thousands)<br>FICO credit<br>score at<br>origination<br>Original<br>LTV<br>Current<br>LTV<br>60+<br>Delinquency<br>(by UPB)<br>Government⁽¹⁾<br>FHA $161.0 34.9% 741 4.9% 46 317 $217 685 92% 72% 7.5%<br>VA $117.5 25.4% 418 4.3% 42 317 $281 732 91% 73% 2.1%<br>USDA $20.3 4.4% 136 4.3% 64 300 $149 701 98% 66% 5.9%<br>GSE<br>FNMA $64.9 14.0% 197 5.3% 30 318 $329 763 76% 65% 0.6%<br>FHLMC $81.5 17.6% 227 6.0% 19 332 $359 762 77% 71% 0.7%<br>Other and Closed-End Seconds<br>Other⁽²⁾ $14.1 3.0% 33 6.7% 13 346 $425 775 75% 71% 0.3%<br>Closed-End Seconds⁽³⁾ $2.8 0.6% 36 9.2% 12 250 $78 745 19% 19% 0.3%<br>Grand Total $462.0 100.0% 1,788 5.0% 37 320 $258 726 86% 71% 3.6% |
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| RECONCILIATION OF GAAP NET INCOME TO ADJUSTED EBITDA<br>30<br>Note: Figures may not sum due to rounding<br>($ in millions) 4Q24 3Q25 4Q25<br>Net income $ 104.5 $ 181.5 $ 106.8<br>Provision for (benefit from) income taxes 24.9 54.9 27.6<br>Income before provision for income taxes 129.4 236.4 134.4<br>Depreciation and amortization 13.8 13.0 12.8<br>(Increase) decrease in fair value of MSRs and MSLs due to changes in<br>valuation inputs used in the valuation model (540.4) 102.5 (40.4)<br>Hedging losses (gains) associated with MSRs 608.1 (98.3) 39.4<br>Stock-based compensation (0.4) 9.9 7.7<br>Interest expense on corporate debt 50.4 78.0 83.3<br>Adjusted EBITDA $ 260.8 $ 341.5 $ 237.2 |
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| ($ in millions) 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25<br>Net income $ 69.4 $ 104.5 $ 76.3 $ 136.5 $ 181.5 $ 106.8<br>(Increase) decrease in fair value of MSRs and MSLs due to<br>changes in valuation inputs used in the valuation model 402.4 (540.4) 205.5 (15.9) 102.5 (40.4)<br>Hedging losses (gains) associated with MSRs (242.1) 608.1 (106.8) 109.1 (98.3) 39.4<br>Adjustments 160.4 67.7 98.7 93.2 4.2 (1.0)<br>Tax impacts of adjustments(1) 43.1 18.1 26.4 23.4 1.1 (0.2)<br>Non-recurring tax adjustment - - - (81.6) - -<br>Operating net income $ 186.7 $ 154.1 $ 148.6 $ 124.6 $ 184.6 $ 106.1<br>Average stockholders' equity $ 3,694.8 $ 3,779.2 $ 3,857.5 $ 3,939.9 $ 4,109.6 $ 4,237.9<br>Annualized operating return on equity 20% 16% 15% 13% 18% 10%<br>($ in millions) 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25<br>Servicing pretax income $ 3.3 $ 87.3 $ 76.0 $ 54.2 $ 157.4 $ 37.3<br>(Increase) decrease in fair value of MSRs and MSLs due to<br>changes in valuation inputs used in the valuation model 402.4 (540.4) 205.5 (15.9) 102.5 (40.4)<br>Hedging losses (gains) associated with MSRs (242.1) 608.1 (106.8) 109.1 (98.3) 39.4<br>Provision for credit losses on active loans 5.7 13.3 (3.2) (3.6) 0.1 11.4<br>Servicing pretax income net of valuation related changes $ 169.4 $ 168.3 $ 171.5 $ 143.7 $ 161.7 $ 47.8<br>Reconciliation of GAAP net income to operating net income and annualized operating return on equity<br>RECONCILIATION OF GAAP ITEMS TO NON-GAAP ITEMS<br>Note: Figures may not sum due to rounding 31 (1) Assumes a tax rate of 26.85% in 3Q24, 26.70% in 4Q24 and 1Q25, 25.165% in 2Q25 and 3Q25, and 25.1% in 4Q25<br>Reconciliation of GAAP servicing pretax income (loss) to servicing pretax income net of valuation related changes |
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