According to a filing with the Securities and Exchange Commission, the original line was inked in May of this year. The agreement is between the bank and Penny Mac Corp., but the obligation is guaranteed by the publicly traded REIT.
Under the facility, PMC can sell, and later repurchase newly originated mortgages.
PennyMac’s shares have been trading near a 52-week high of late. The firm’s origination arm has been on a production tear of late. The nonbank REIT bought $3.4 billion of mortgages from correspondent originators during the second quarter, a stunning 88% gain from 1Q.
The lender/servicer/nonperforming loan investor is set to report third quarter earnings on Nov. 8.
In late August, Bank of America increased a repo line it had extended to PennyMac by $100 million. The company is based in Moorpark, Calif.