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PennyMac Mortgage Investment Trust (PMT)

- NYSE
  • May. 7, 2014, 10:22 PM
    • Net income of $37.9M or $0.50 per share is off 28% from Q4 on net investment income of $76.6M off 20%. Dividend of $0.59 per share.
    • Book value per share of $20.88 up from $20.82 at the end of the 2013 after payment of dividend.
    • CEO Stan Kurland: "The reduction in earnings for Q1 was driven by reduced income in PMT's correspondent lending business and lower gains in the distressed whole loan portfolio."
    • Investment activities segment: $33.1M in pretax income on revenue of $64.3M vs. $48.4M and $78M in Q4. Net gain on investments of $42.6M off 11%. Net interest income of $19.6M is lower by $2.9M. Net loan servicing fees of $7.4M fell from $12.2M.
    • Distressed mortgage investments: Distressed mortgage loan portfolio gains of $39.9M down from $50.6M. Company acquired $436M UPB of nonperforming whole loans and REO in Q1; has another $41M UPB under agreement and expected to settle in Q2.
    • Correspondent lending segment: Pretax income of $3.1M falls from $6.3M on revenue of $12.3M, off 32%.
    • Source: Press Release
    • Previously: PennyMac Mortgage misses by $0.14
    • PMT -3.7% AH
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  • May. 7, 2014, 4:39 PM
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  • Apr. 7, 2014, 3:00 PM
    • Rolling with the trend, Credit Suisse ups its return expectations for mREITs to 9% for 2014 from a 6% guess at the start of the year. Said 9% will be comprised of 11% in dividends and a 2% decline in book value - a bold statement considering book values have likely grown smartly YTD.
    • The top picks include a couple of hybrid players. PennyMac Mortgage Investment Trust (PMT +0.1%) and Two Harbors (TWO +0.9%), plus Newcastle Investment (NCT +1.6%). Newcastle management won't throw the recommendation out of bed, but must be scratching its head as - two spinoffs later - investors still casually lump the company into a sector it probably doesn't belong in. At this point, NCT is more senior housing REIT than anything else. Still, CS's point is those REITs with real operating assets as opposed to just paper are likely to outperform in a rising rate environment.
    • Mortgage REIT ETFs: REM, MORT, MORL
    | 5 Comments
  • Mar. 24, 2014, 4:45 PM
    • PennyMac Mortgage Investment Trust (PMT) declares $0.59/share quarterly dividend, in line with previous.
    • Forward yield 9.94%
    • Payable April 30; for shareholders of record April 16; ex-div April 11.
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  • Feb. 7, 2014, 12:55 PM
    • Looking golden at the moment is Compass Point's Kevin Barker, who stepped into yesterday's major decline in the specialty servicers with an upgrade to Ocwen Financial (OCN +3.9%). The decline was sparked by a story - later confirmed by Ocwen - that Ben Lawsky's NY Dept. of Financial Services had blocked Ocwen's purchase of MSR's from Wells Fargo.
    • If Lawsky's concern is Ocwen's ability to properly service a massive influx of new loans, this isn't an issue, says Barker as the company can take steps to ensure compliance. If Lawsky is upset about Ocwen's current servicing practices, that's a more complicated issue, but Barker doesn't believe this to be so.
    • He's got a price target of $60 assuming the Wells deal gets done and Ocwen continues buying MSRs, and utilizes free cash flow for stock repurchases or an accretive acquisition.
    • Down 14% at one point yesterday, Ocwen is back to near where it was before the news hit. Also bouncing back are Nationstar (NSM +8.3%) and Walter Investment (WAC +3.1%).
    • Others of interest: PennyMac Mortgage (PMT +0.7%), New Residential (NRZ +1.2%).
    | 3 Comments
  • Feb. 5, 2014, 4:35 PM
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  • Feb. 5, 2014, 12:10 AM
  • Feb. 4, 2014, 5:35 PM
  • Feb. 4, 2014, 11:51 AM
    • Addressing an analyst cadre somewhat uncomfortable with American Capital's (AGNC +1.6%) new policy of purchasing the common stock of its agency mREIT competitors (Wells' Joel Houck: Do you know their hedging strategies? What happens when one blows up?), CIO Gary Kain says the discounts to asset value are so great as to mitigate much of the risk.
    • Kain does acknowledge some risks though, and reminds that the purchase program is but a small slice of AGNC's overall portfolio ($400M of others' stock bought so far vs. nearly $600M of AGNC buybacks just in Q4).
    • For now, there won't be any disclosure of which names American Capital is buying - a position also not sitting well with those on the call. Should the positions get large enough though, regulatory filings might be required.
    • Kain also reminds that AGNC isn't just boosting risk with these purchases - instead it's selling MBS at 100 cents on the dollar to buy them back (via other mREITs) at somewhere in the area of 80 cents on the dollar.
    • Most of the mREIT sector (REM +0.7%) is ahead again today - Armour (ARR +0.9%), CYS (CYS +2.8%), Hatteras (HTS +1.6%), American Capital Mortgage (MTGE +0.6%), PennyMac (PMT +1.2%) - but Annaly (NLY -0.6%) lags, perhaps as investors feel it was far more conservatively positioned going into 2014 than AGNC was.
    • Earnings call is still ongoing
    • Previous coverage
    | 28 Comments
  • Jan. 21, 2014, 8:34 AM
    • New mortgage rules from the CFPB are making a bad situation worse, with DBRS predicting historically low volumes in H1 and just slight improvement in the year's 2nd half.
    • "Not all industry participants are confident that they have appropriately adopted the changes into their operations or fully understand how to quantify the liability for noncompliance," says DBRS's Kathleen Tillwitz, noting how complicated the rules are and the high level of technological capabilities to ensure compliance.
    • Things don't look any better for servicers who will spend the year attempting to "perfect the art" of following along with the new rules. "2014 will be a year of fines and lawsuits."
    • Servicers: OCN, NSM, WAC, HLSS, PMT, NRZ, ASPS.
    | 5 Comments
  • Jan. 15, 2014, 10:59 AM
    • Bank of America today joined Wells Fargo and JPMorgan in reporting big drops in mortgage business, but it's not all coming from the general slowdown in refinancing. Both Wells and JPMorgan reported Q4 declines larger than that seen by the Mortgage Bankers Association, suggesting a loss in market share.
    • "Some of the smaller lenders are offering better pricing," says Compass Point's Kevin Barker, noting PennyMac Mortgage Investment (PMT +1.3%), Ocwen Financial (OCN -0.7%), and Nationstar Mortgage (NSM -2.1%) have all increased their business over the year (though Nationstar, at least, hasn't been immune to the overall slowdown, and Ocwen benefits more on the servicing side). Barker figures Wells and JPM lost about 4% in market share in Q4.
    | 5 Comments
  • Dec. 30, 2013, 6:45 AM
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  • Nov. 8, 2013, 1:12 PM
    • "We have two takeaways from the quarter and both are negative," says Sterne Agee of the mortgage finance and servicing sector:
    • 1) The land grab is coming to an end, i.e. the easy money (for servicers) from buying MSRs being unloaded by the banks is about done. While regulators want more MSRs out of the banking system, this must be balanced against the GSEs which may be slowing down the approval process as they question the transfer of servicing rights from banks to nonbanks.
    • 2) HARP margins are down more than expected and the pipeline of future volumes is slowing.
    • Already taking a hit amid disappointing earnings were OCN, NSM, WAC, PMT, WD, and NRZ. "We think it will take two to five days for investors to readjust to the quarter's disappointing news and then investors will need to take a more realistic, long-term view," says the team, which, nevertheless, upgrades Two Harbors (TWO -2.7%) to Buy because of its new mortgage servicing investment.
    • Also of interest are the single-family rental shops, SBY, AMH, ARPI amid Blackstone's successful rental securitization. High leverage combined with this new low cost of funds could make for some "exceptionally high" return on equity.
    | 9 Comments
  • Nov. 7, 2013, 10:32 AM
    • PennyMac Mortgage Investment (PMT -5.9%) slumps after a weak Q3 in which correspondent lending revenues fell to $18.9M, a 63% decline from Q2. Gain on sale on mortgages fell to $11M from $44.4M. The pretax loss in correspondent lending of $300K compared to $28.1 of income in Q2.
    • Q3 earnings presentation slides.
    • The company was able to deploy $350M in capital, acquiring 2 pools of nonperforming loans with $930M in UPB, completing a $550.5M jumbo loan securitization, and completing its initial investment in excess MSRs acquired by PennyMac Financial Services (PFSI -0.2%) which also reported weak mortgage results last night.
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  • Nov. 6, 2013, 4:38 PM
    • PennyMac Mortgage (PMT): Q3 EPS of $0.57 misses by $0.12.(PR)
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  • Nov. 6, 2013, 12:10 AM
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Company Description
PennyMac Mortgage Investment Trust is a real estate investment trust investing in residential mortgage loans and mortgage-related assets.The Company operates in two segments: correspondent production and investment activities.
Sector: Financial
Country: United States