PennyMac Mortgage Investment Trust
For the period ended Sep 30, 2024. Filed Oct 30, 2024.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2024 · Filed Oct 30, 2024
Extracted filing text, with the paragraph anchors used by the comparison.
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Asset Acquisitions
Our asset acquisitions are summarized below.
Correspondent Production
Following is a summary of our correspondent production acquisitions at fair value:
| Quarter ended September 30, | Nine months ended September 30, | |||
|---|---|---|---|---|
| 2024 | 2023 | 2024 | 2023 | |
| (in thousands) | ||||
| Correspondent loan purchases: | ||||
| GSE-Eligible Loans (1) | $14,384,633 | $12,810,679 | $36,834,544 | $33,722,514 |
| Government insured or guaranteed (2) | 12,047,525 | 8,945,053 | 30,892,013 | 29,975,859 |
| Jumbo loans | 97,982 | — | 134,886 | 1,002 |
| Advances to home equity lines of credit | — | 52 | — | 102 |
| $26,530,140 | $21,755,784 | $67,861,443 | $63,699,477 | |
(1)
GSE eligibility refers to the eligibility of loans for sale to Fannie Mae or Freddie Mac. The Company sells or finances a portion of its GSE eligible loan production to or with other investors, including PLS.
(2)
The Company sells all of its loans eligible for inclusion in Ginnie Mae securities to PLS. The Company is not approved by Ginnie Mae as an issuer of Ginnie Mae-guaranteed securities which are backed by government-insured or guaranteed loans. The Company earns a sourcing fee for all loans that it purchases from correspondent sellers and subsequently sells to PLS as described in Note 4 –Transactions with Related Parties – Operating Activities – Correspondent Production Activities.
During the quarter and nine months ended September 30, 2024, we purchased for sale $26.5 billion and $67.9 billion, respectively, in fair value of correspondent production loans as compared to $21.8 billion and $63.7 billion during the same periods in 2023.
Other Investment Activities
Following is a summary of our net acquisitions (sales) of mortgage-related investments held in our credit sensitive strategies and interest rate sensitive strategies segments:
| Quarter ended September 30, | Nine months ended September 30, | |||
|---|---|---|---|---|
| 2024 | 2023 | 2024 | 2023 | |
| (in thousands) | ||||
| Credit sensitive assets: | ||||
| Subordinate credit-linked securities | $— | $6,555 | $(111,044) | $70,616 |
| Interest rate sensitive assets: | ||||
| Agency fixed-rate pass-through securities | — | — | (830,296) | 308,742 |
| Principal-only stripped mortgage-backed securities | 80,442 | — | 479,902 | — |
| Senior non-Agency securities | — | 57,829 | — | 99,803 |
| Interest-only stripped mortgage-backed securities | — | 103,547 | — | 103,547 |
| Mortgage servicing rights: | ||||
| Purchases | — | 16,263 | 29,428 | 16,263 |
| Received in loan sales (1) | 51,979 | (46,536) | 123,847 | 144,829 |
| 132,421 | 131,103 | (197,119) | 673,184 | |
| $132,421 | $137,658 | $(308,163) | $743,800 | |
(1)
Net of exchange of mortgage servicing spread for interest-only stripped mortgage-backed securities.
Our acquisitions during the quarter and nine months ended September 30, 2024 and 2023 were financed through the use of a combination of proceeds from borrowings and liquidations of existing investments. We continue to identify additional means of increasing our investment portfolio through cash flow from our business activities, existing investments, borrowings, and transactions that minimize current cash outlays. However, we expect that, over time, our ability to continue our investment portfolio growth will depend on our ability to raise additional equity capital.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.