PennyMac Mortgage Investment Trust

This Quarterly Report on Form 10-Q (this “Report”) contains certain forward-looking statements that are subject to various risks and uncertainties. Forward-looking statements are generally identifiable by use of forward-looking terminology such as “may,” “will,” “should,” “potential,” “intend,” “expect,” “seek,” “anticipate,” “estimate,” “approximately,” “believe,” “could,” “project,” “predict,” “continue,” “plan” or other similar words or expressions.

Forward-looking statements are based on certain assumptions, discuss future expectations, future plans and strategies, contain financial and operating projections or state other forward-looking information. Examples of forward-looking statements include the following:

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projections of our revenues, income, earnings per share, capital structure or other financial items;

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descriptions of our plans or objectives for future operations, products or services;

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forecasts of our future economic performance, interest rates, profit margins and our share of future markets; and

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descriptions of assumptions underlying or relating to any of the foregoing expectations regarding the timing of generating any revenues.

Our ability to predict results or the actual effect of future events, actions, plans or strategies is inherently uncertain. Although we believe that the expectations reflected in such forward-looking statements are based on reasonable assumptions, our actual results and performance could differ materially from those set forth in the forward-looking statements. There are a number of factors, many of which are beyond our control that could cause actual results to differ significantly from management’s expectations. Some of these factors are discussed below.

You should not place undue reliance on any forward-looking statement and should consider the following uncertainties and risks, as well as the risks and uncertainties discussed elsewhere in this Report and the section entitled “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2023, filed with the Securities and Exchange Commission (“SEC”) on February 22, 2024.

Factors that could cause actual results to differ materially from historical results or those anticipated include, but are not limited to:

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changes in interest rates and other macroeconomic conditions;

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our ability to comply with various federal, state and local laws and regulations that govern our business;

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changes in our investment objectives or investment or operational strategies, including any new lines of business or new products and services that may subject us to additional risks;

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changes in real estate values, housing prices and housing sales;

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the degree and nature of our competition;

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volatility in our industry, the debt or equity markets, the general economy or the real estate finance and real estate markets specifically, whether the result of market events or otherwise;

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events or circumstances which undermine confidence in the financial and housing markets or otherwise have a broad impact on financial and housing markets, such as the sudden instability or collapse of large depository institutions or other significant corporations, terrorist attacks, natural or man-made disasters, or threatened or actual armed conflicts;

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changes in general business, economic, market, employment and domestic and international political conditions, or in consumer confidence and spending habits from those expected;

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the availability of, and level of competition for, attractive risk-adjusted investment opportunities in loans and mortgage-related assets that satisfy our investment objectives;

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the inherent difficulty in winning bids to acquire loans, and our success in doing so;

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the concentration of credit risks to which we are exposed;

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our dependence on PennyMac Financial Services, Inc., PNMAC Capital Management, LLCand PennyMac Loan Services, LLC, potential conflicts of interest with such entities and their affiliates, and the performance of such entities;

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changes in personnel and lack of availability of qualified personnel at PennyMac Financial Services, Inc., PNMAC Capital Management, LLC and PennyMac Loan Services, LLC, and their affiliates;

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the availability, terms and deployment of short-term and long-term capital;

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the adequacy of our cash reserves and working capital;

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our substantial amount of debt;

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our ability to maintain the desired relationship between our financing and the interest rates and maturities of our assets;

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the timing and amount of cash flows, if any, from our investments;

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our exposure to risks of loss and disruptions in operations resulting from adverse weather conditions, man-made or natural disasters, climate change and pandemics such as the COVID-19 pandemic;

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unanticipated increases or volatility in financing and other costs, including a rise in interest rates;

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the performance, financial condition and liquidity of borrowers;

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the ability of our servicer, which also provides us with fulfillment services, to approve and monitor correspondent sellers and underwrite loans to investor standards;

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incomplete or inaccurate information or documentation provided by customers or counterparties, or adverse changes in the financial condition of our customers and counterparties;

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our indemnification and repurchase obligations in connection with loans we purchase and later sell or securitize;

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the quality and enforceability of the collateral documentation evidencing our ownership and rights in the assets in which we invest;

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increased rates of delinquency, default and/or decreased recovery rates on our investments;

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the performance of loans underlying mortgage-backed securities in which we retain credit risk;

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our ability to foreclose on our investments in a timely manner or at all;

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the degree to which our hedging strategies may or may not protect us from interest rate volatility;

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the effect of the accuracy of or changes in the estimates we make about uncertainties, contingencies and asset and liability valuations when measuring and reporting upon our financial condition and income;

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our ability to maintain appropriate internal control over financial reporting;

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technology failures, cybersecurity risks and incidents, and our ability to mitigate cybersecurity risks and cyber intrusions;

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our ability to obtain and/or maintain licenses and other approvals in those jurisdictions where required to conduct our business;

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our ability to detect misconduct and fraud;

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changes in our credit risk transfer arrangements and agreements;

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developments in the secondary markets for our loan products;

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legislative and regulatory changes that impact the loan industry or housing market;

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changes in regulations that impact the business, operations or governance of mortgage lenders and/or publicly-traded companies or such changes that increase the cost of doing business with such entities;

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the Consumer Financial Protection Bureau and its issued and future rules and the enforcement thereof;

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changes in government support of homeownership;

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our ability to effectively identify, manage and hedge our credit, interest rate, prepayment, liquidity and climate risks;

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changes in government or government-sponsored home affordability programs;

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limitations imposed on our business and our ability to satisfy complex rules for us to qualify as a real estate investment trust (“REIT”) for U.S. federal income tax purposes and qualify for an exclusion from the Investment Company Act of 1940 and the ability of certain of our subsidiaries to qualify as REITs or as taxable REIT subsidiaries for U.S. federal income tax purposes, as applicable, and our ability and the ability of our subsidiaries to operate effectively within the limitations imposed by these rules;

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changes in governmental regulations, accounting treatment, tax rates and similar matters (including changes to laws governing the taxation of REITs, or the exclusions from registration as an investment company);

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our ability to make distributions to our shareholders in the future;

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our failure to deal appropriately with issues that may give rise to reputational risk; and

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our organizational structure and certain requirements in our charter documents.

Other factors that could also cause results to differ from our expectations may not be described in this Report or any other document. Each of these factors could by itself, or together with one or more other factors, adversely affect our business, income and/or financial condition.

Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update any forward-looking statement to reflect the impact of circumstances or events that arise after the date the forward-looking statement was made.