PennyMac Mortgage Investment Trust reported record earnings of $16.6 million in the second quarter, and told investors that its correspondent mortgage purchases doubled in the second quarter to just over $50 million.
Company CEO and founder Stan Kurland noted that the publicly traded REIT anticipates tripling its 2Q volume to $150 million in 3Q, adding that, “We are targeting funding volumes reaching $200 million per month in the fourth quarter.”
Over the past few months the Calabasas-based firm has beefed up its correspondent staff by adding several top managers from Bank of America – several of whom used to work for Kurland at Countrywide Financial Corp., a firm he was forced out of back in 2006.
Originally, PennyMac was started by Kurland to buy nonperforming mortgages on the cheap, but over the past year it has morphed more into an opportunity fund, focusing on loan production and conduit activities. (However, it continues to buy NPLs in the second market.)
“During the second quarter, PMT's portfolio of whole loans, REO properties and MBS generated over $75 million in cash,” said Kurland in a statement. “New whole loan investments of $117 million completed during the second quarter were partially funded by this cash flow, ensuring that PMT's shareholders remain invested in potentially high yielding investments.”
The REIT also said that during 2Q it entered into a $200 million master repurchase agreement with Credit Suisse First Boston Mortgage Capital LLC. The facility is committed for 364 days and can be used to finance non-performing loans (NPLs) and REO properties.
“With the addition of this facility, PMT's total available credit for NPLs and REOs increased to $550 million, $253 million of which had been drawn as of the end of the second quarter,” the firm said.
