PennyMac Gets $200 Million Repo Line

PennyMac Financial Services Inc. has entered into a master repurchase agreement with Morgan Stanley Bank NA, where its subsidiary PennyMac Loan Services LLC can sell and repurchase up to $200 million in newly originated mortgage loans.

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The cash will be used by PennyMac to fund loans purchased from other lenders that will be held for sale on the secondary market and/or securitized.

The repo line has a 364-day term. PennyMac will pay Morgan Stanley the principal amount of the repurchased loan plus interest at Libor plus an undisclosed margin, according to an 8-K filing obtained via DisclosureNet.com.

Last week PennyMac agreed to purchase nonperforming residential mortgages and property acquired in settlement of loans with an unpaid principal balance of $140 million from Citigroup Global Markets Realty Corp.

Brad Finkelstein

Originations Editor

Brad Finkelstein is the originations editor of National Mortgage News. While he covers the entire process, Brad's specialty is loan production and... Read full bio

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