PennyMac Mortgage Investment Trust, which started out in life solely as a nonperforming loan investor, is now cleaning up as a correspondent buyer of newly originated loans.
According to the company’s just released second quarter earnings statement, the nonbank REIT bought $3.4 billion of mortgages from correspondent originators during the period, a stunning 88% gain from 1Q.
It now has correspondent interest rate lock commitments of $4.6 billion, a 94% jump from the prior quarter.
Moreover, the firm reported net income of almost $30 million, compared to $19 million in 1Q. (In trading Thursday its shares hit a new 52-week high of $21.48.)
The company is still active in the NPL market, and bought $402 million (UPB) of such notes during the period.
“During the quarter PMT’s correspondent volume grew to new highs and we added to our portfolio of distressed whole loans through four acquisitions,” said company CEO Stan Kurland. “Through PCM, our manager, and PLS, our servicer and fulfillment provider, we exceeded our target for correspondent of purchasing $1 billion per month in June by over $400 million and continue to see excellent resolutions in our distressed portfolio.”
The company achieved a return on average equity of over 17% during the quarter and raised more than $200 million in new equity capital.
The company trades under the symbol PMT and has several affiliates, including a servicing division.
