Profile: PennyMac Mortgage Investment Trust (PMT.N)
23 May 2018
PennyMac Mortgage Investment Trust (PMT), incorporated on May 18, 2009, is a specialty finance company that invests primarily in residential mortgage loans and mortgage-related assets. The Company conducts all of its operations, and makes all of its investments, through PennyMac Operating Partnership, L.P. (its Operating Partnership) and its subsidiaries. The Company operates through two segments: correspondent production and investment activities. The Company's investment activities segment represents the Company's investments in mortgage-related assets, which include distressed mortgage loans, real estate acquired in settlement of loans (REO), mortgage-backed securities (MBS), mortgage servicing rights (MSRs) and excess servicing spread (ESS). The Company seeks to maximize the value of its acquired distressed mortgage loans through loan modification programs, special servicing or other initiatives focused on keeping borrowers in their homes. Where this is not possible, such as in the case of many nonperforming mortgage loans, the Company seeks to effect property resolution in a manner, including through the use of resolution alternatives to foreclosure. The correspondent production segment represents the Company's operations aimed at serving as an intermediary between mortgage lenders and the capital markets by purchasing, pooling and reselling newly originated prime credit quality mortgage loans either directly or in the form of MBS, using the services of PNMAC Capital Management (the Manager or PCM) and PennyMac Loan Services, LLC (PLS or the Servicer), both indirect subsidiaries of PennyMac Financial Services, Inc. (PFSI or PennyMac).
The management of the Company's business and execution of its operations is performed on the Company's behalf by subsidiaries of PFSI. PFSI is a specialty financial services firm with a mortgage platform and integrated business focused on the production and servicing of the United States residential mortgage loans and the management of investments related to the United States residential mortgage market. The Company is managed by PCM, a subsidiary of PennyMac and an investment advisor that specializes in, and focuses on, the United States residential mortgage assets. The Company's targeted investments are in the United States residential mortgage market, including credit sensitive assets, such as distressed mortgage loans, credit risk transfer (CRT) securities related to its correspondent production, non-Agency subordinate bonds, small-balance commercial real estate (including multifamily) loans and subordinate interests, and interest rate sensitive assets, such as MSRs, ESS, MBS, and non-Agency senior MBS.
In addition to its investment activities, the Company is engaged in correspondent production, which is the acquisition of newly originated, prime credit quality, first-lien residential mortgage loans that have been underwritten to investor guidelines, pooling such loans into MBS and selling the resulting securities into the secondary markets. It purchases Agency-eligible mortgage loans and jumbo mortgage loans. It then sells or securitizes Agency-eligible mortgage loans meeting the guidelines of Federal National Mortgage Association (Fannie Mae) and Federal Home Loan Mortgage Corporation (Freddie Mac) on a servicing-retained basis whereby it retains the related MSRs; government mortgage loans (insured by the Federal Housing Administration (FHA) or guaranteed by the Veterans Administration (VA)), which it sells to PLS, a Government National Mortgage Association (Ginnie Mae) approved issuer and servicer, and jumbo mortgage loans, which generally on a servicing-retained basis, it securitizes or sells to third parties. As of December 31, 2016, its portfolio of mortgage investments consisted of Credit Sensitive Assets and Interest Rate Sensitive Assets.
PennyMac Mortgage Investment Trust
3043 Townsgate Rd
WESTLAKE VILLAGE CA 91361-3027