PennyMac Strikes Repo Deal With CSFB
PennyMac Mortgage Investment Trust has a struck a new master repurchase facility with Credit Suisse First Boston that will help the REIT fund its correspondent mortgage business.
According to a recent filing with the Securities and Exchange Commission, the repo line “provides for repurchases in an aggregate principal amount of up to $150 million.” The agreement is good through October 2012.
The publicly traded PennyMac has been ramping up its third-party platform the past six months and is predicting explosive growth in this area. It comes during a time when many megabanks such as Bank of America and Ally Financial have either left the space or cut way back.
The repo facility requires PennyMac affiliates to meet certain net worth requirements with stipulations about profits being posted in consecutive fiscal quarters.
PennyMac has repo/borrowing agreements with other banks, including Citigroup.