Third-quarter total net revenue for PennyMac Financial Services’ (PFSI) was up 8% from the prior quarter, reaching $140.6 million.
In addition, production revenue hit $71.6 million, servicing revenue came in at $55.7 million and investment Management revenue hit $13.3 million, up 12%, 4% and 4% from the prior quester, respectively.
Total loan production activity hit $8.6 billion in unpaid principal balance (UPB), up 16% from the prior quarter, while the servicing portfolio reached $100.1 billion in UPB, up 7% from June 30, 2014.
Production includes the correspondent acquisition of newly originated mortgage loans for PennyMac Financial’s own account, fulfillment services on behalf of PennyMac Mortgage Investment Trust, and consumer direct lending.
“PennyMac Financial enjoyed record earnings in the third quarter, driven by continued revenue growth in each of our businesses – loan production, loan servicing and investment management,” said chairman and CEO Stanford Kurland.
“We see strong growth momentum in our mortgage banking businesses, including consumer direct lending which is making notable and increasing contributions to our production revenue.”