A national shareholder rights law firm has launched an investigation into PennyMac Financial Services Inc. over potential violations of federal securities laws.

Glancy Prongay Wolke & Rotter LLP, which represents investors and consumers in securities litigation, said the probe follows PennyMac’s Jan. 29 release of fourth-quarter and full-year 2025 results, which showed revenue of $538 million and earnings of $1.96 per share, both of which were below analysts’ estimates.

PennyMac’s net loan servicing fees declined to $149.8 million, compared to $241.2 million in Q3 2025. The company said the increase in prepayments led to higher realization of mortgage servicing rights (MSR) cash flows.

The company also reported a 10% return on equity, missing its previous guidance of high-teens to low-20s. A PennyMac spokesperson told HousingWire that it does not express views regarding unconfirmed reports.

Following the earnings report, PennyMac’s stock fell 33% to $99.92 on Jan. 30. The law firm is encouraging investors who lost money to contact them about potentially pursuing claims.

Bloomberg reported that the decline in PennyMac shares spilled over into other mortgage-related stocks, dragging down Rocket Companies Inc., UWM Holdings Corp., Onity Group Inc. and LoanDepot Inc. Some of these losses were recovered in Monday’s trading, the outlet reported.

In a Tuesday morning interview on CNBC’s ‘Squawk Box,’ Rocket Companies’ CEO Varun Krishna addressed the stock declines and offered an outlook on why the decline may have occurred. During Krishna’s appearance, Rocket’s stock jumped up 6%. At 1:45 pm EST, the stock was up over 9%.

“We’re getting ready for our earnings call here in just a couple of weeks, and I will share with this group that we’re on track to produce the highest mortgage loan production in terms of volume that we’ve had in four years, and the highest gain on sale that we’ve had in four years as well,” Krishna said on CNBC’s “Squawk Box.”

Krishna added, “This really is a function of different players having different business models, and I expect that you’re going to start to see more of that separation as winners like Rocket distance themselves.”

This story was updated to include Varun Krishna’s commentary

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