PennyMac Financial Services, Inc.

Previous wording

Our investment management subsidiary is PNMAC Capital Management, LLC (“PCM”), a Delaware limited liability company registered with the Securities Exchange Commission (“SEC”) as an investment adviser under the Investment Advisers Act of 1940, as amended. PCM has an investment management contract with PMT.

Current wording

Our investment management subsidiary is Pennymac Capital Management, LLC (“PCM”), a Delaware limited liability company registered with the Securities Exchange Commission (“SEC”) as an investment adviser under the Investment Advisers Act of 1940, as amended. PCM has an investment management contract with PMT.

Previous wording

Recent actions by the U.S. government administration with respect to trade, tariffs, government cost reduction initiatives and the shutdown of the federal government have led to significant volatility in financial markets and uncertainty regarding the economic outlook, including inflation and interest rates. Elevated interest rates in recent years have constrained growth in the size of the mortgage origination market, which is currently projected to increase from $1.7 trillion in 2024 to $2.0 trillion in 2025 according to mortgage industry economists.

Current wording

Recent macroeconomic trend and U.S. federal government administration actions with respect to trade, tariffs, government cost reduction efforts and foreign military action have led to significant volatility in financial markets and uncertainty regarding the economic outlook, including inflation and interest rates. Elevated interest rates in recent years have also constrained the mortgage origination market, which is currently projected to increase from $1.9 trillion in 2025 to $2.3 trillion in 2026 according to mortgage industry economists.

Previous wording

The opportunity for refinancing has increased in recent periods, driven by interest rate volatility and a greater proportion of outstanding mortgages with note rates near current market rates. If such interest rate volatility continues, it may drive greater mortgage production activity and higher prepayment speeds than we have experienced in recent years. Additionally, reductions in the Federal Reserve’s federal funds rate have reduced the costs of floating rate borrowings and placement fees we receive in relation to custodial funds that we manage as compared to the same periods in the prior year. The current period of economic uncertainty and market volatility may also lead to a reduction in economic activity and slowing home price growth or depreciation, which could lead to increasing mortgage delinquencies or defaults and increase losses from our representations and warranties. A prolonged federal government shutdown could increase loan delinquencies, delay the processing of government loan applications and make it more difficult for customers in flood-prone areas to procure government-backed insurance.

Current wording

The opportunity for refinancing has increased in recent periods, driven by interest rate volatility and a greater proportion of outstanding mortgages with note rates near current market rates. If such interest rate volatility continues, it may drive greater mortgage production activity and higher prepayment speeds than we have experienced in recent years. Additionally, reductions in the Federal Reserve’s federal funds rate have reduced the costs of floating rate borrowings and placement fees we receive in relation to custodial funds that we manage as compared to the same periods in the prior year. The current period of economic uncertainty and market volatility may also lead to a reduction in economic activity and slowing home price growth or depreciation, which could lead to increasing mortgage delinquencies or defaults and increase losses from the representations and warranties we provide in our loan sales transactions.

Previous wording

We expect to sell a portion of the conventional loans and all of the jumbo loans from our correspondent channel to PMT in the fourth quarter of 2025.

Current wording

We expect to sell a portion of our conventional conforming correspondent loan production and all of our nonagency correspondent loan production to PMT in the second quarter of 2026.

Previous wording

We define “Adjusted EBITDA” as net income plus provision for income taxes, depreciation and amortization, excluding decrease (increase) in fair value of mortgage servicing rights (“MSRs”) net of mortgage servicing liabilities (“MSLs”), due to changes in the valuation inputs we use in our valuation models, hedging (gains) losses associated with MSRs, stock-based compensation and interest expense on corporate debt or corporate revolving credit facilities and capital leases.

Current wording

We define “Adjusted EBITDA” as net income plus provision for income taxes, depreciation and amortization, excluding decrease (increase) in fair value of mortgage servicing rights (“MSRs”) net of mortgage servicing liabilities (“MSLs”), due to changes in the valuation inputs we use in our valuation models, hedging (gains) losses associated with MSRs, principal-only stripped MBS valuation-related accretion changes, provision for (reversal of) losses on active loans, stock-based compensation, interest expense on corporate debt or corporate revolving credit facilities and capital lease and certain unusual or non-recurring items.

Previous wording

For the quarter ended September 30, 2025, income before income taxes increased $142.4 million compared to the same quarter in 2024. The increase was primarily due to a $165.4 million increase inNet loan servicing fees resulting from growth in servicing fees and decreased net MSR valuation losses, as well as a $64.5 million increase in loan production revenue due to higher volume across all production channels, partially offset by a $9.0 million increase inNet interest (expense) income and a $78.6 million increase in total expenses.

Current wording

For the quarter ended March 31, 2026, income before income taxes increased $495,000 compared to the same quarter in 2025. The increase was primarily due to a $150.2 million increase in loan production revenue due to higher volume across all production channels, partially offset by a $11.5 million decrease inNet loan servicing fees resulting from increases in net MSR valuation losses in excess of growth in servicing fees, a $23.3 million increase inNet interest expense and a $113.6 million increase in total expenses.

Previous wording

In our production segment, revenues reflect the effects of larger mortgage market volumes and increased share in our direct lending channels during the quarter and nine months ended September 30, 2025 compared to the same periods in 2024. During the quarter and nine months ended September 30, 2025, we recognizedNet gains on loans held for sale at fair value totaling $314.5 million and $770.1 million, respectively, representing an increase of $57.6 million and $174.8 million, respectively, compared to the same periods in 2024.

Current wording

In our production segment, revenues reflect the effects of larger mortgage market volumes and increased share in our broker and consumer direct lending channels during the quarter ended March 31, 2026 compared to the same quarter in 2025. During the quarter ended March 31, 2026, we recognizedNet gains on loans held for sale at fair value totaling $345.0 million representing an increase of $123.9 million compared to the same quarter in 2025.

Previous wording

Our gains on loans held for sale include both cash and non-cash elements. We recognize a significant portion of our gains on loans held for sale when we make commitments to purchase or fund mortgage loans. We recognize this gain in the form of interest rate lock commitment (“IRLC”) derivatives. We adjust our initial gain amount as the loan purchase or origination process progresses until the loan is either funded or cancelled.

Current wording

Our gains on loans held for sale include both cash and non-cash elements. We recognize a significant portion of our gains on loans held for sale when we make commitments to purchase or fund mortgage loans. Therefore, we recognize a substantial portion of our net gains before we fund or purchase the loans. We recognize this gain in the form of interest rate lock commitment (“IRLC”) derivatives. We adjust our initial gain amount as the loan purchase or origination process progresses until the loan is either funded or cancelled.

Previous wording

The MSRs, MSLs, and liabilities for representations and warranties we recognize represent our estimate of the fair value of future benefits and costs we will realize for years in the future. These estimates represented approximately 222% and 280% of our gains on sales of loans held for sale at fair value for the quarter and nine months ended September 30, 2025, respectively, as compared to 225% and 257% for the same periods in 2024. These estimates change as circumstances change and changes in these estimates are recognized in income in subsequent periods. Subsequent changes in the fair value of our MSRs may significantly affect our income.

Current wording

The MSRs, MSLs, and liabilities for representations and warranties we recognize represent our estimate of the fair value of future benefits and costs we will realize for years in the future. These estimates represented approximately 208% of our gains on sales of loans held for sale at fair value for the quarter ended March 31, 2026, as compared to 293% for the same quarter in 2025. These estimates change as circumstances change and changes in these estimates are recognized in income in subsequent periods. Subsequent changes in the fair value of our MSRs may significantly affect our income.

Previous wording

We recorded provisions for losses under representations and warranties relating to current loan sales as a component ofNet gains on loans held for sale at fair value totaling $4.7 million and $12.3 million for the quarter and nine months ended September 30, 2025, respectively, compared to $4.1 million and $12.2 million for the same periods in 2024. The increases in the provision relating to current loan sales was primarily attributable to an increase in production volume for the quarter and nine months ended September 30, 2025 compared to the same periods in 2024.

Current wording

We recorded provisions for losses under representations and warranties relating to current loan sales as a component ofNet gains on loans held for sale at fair value totaling $4.5 million for the quarter ended March 31, 2026 compared to $3.5 million for the same quarter in 2025. The increases in the provision relating to current loan sales was primarily attributable to an increase in production volume for the quarter ended March 31, 2026 compared to the same quarter in 2025.

Previous wording

We also recorded reductions in the liability of $2.4 million and $6.0 million for the quarter and nine months ended September 30, 2025 compared to $3.5 million and $10.9 million for the same periods in 2024. The reductions in the liability resulted from previously sold loans meeting performance criteria established by the Agencies which significantly limit the likelihood of certain repurchase or indemnification claims.

Current wording

We also recorded reductions in the liability of $3.0 million for the quarter ended March 31, 2026 compared to $1.4 million for the same quarter in 2025. The reductions in the liability resulted from previously sold loans meeting performance criteria established by the Agencies which significantly limit the likelihood of certain repurchase or indemnification claims.

Previous wording

During the quarter and nine months ended September 30, 2025, we repurchased loans totaling $31.7 million and $77.1 million, respectively. We charged losses of $1.1 million and $2.4 million against the liability during the quarter and nine months ended September 30, 2025. Our losses arising from representations and warranties have historically been minimized by our ability to either recover most of the losses from our correspondent sellers or from our ability to profitably refinance and resell repurchased loans.

Current wording

During the quarter ended March 31, 2026, we repurchased loans totaling $24.9 million. We charged losses of $567,000 against the liability during the quarter ended March 31, 2026. Our losses arising from representations and warranties have historically been minimized by our ability to either recover most of the losses from our correspondent sellers or from our ability to profitably refinance and resell repurchased loans.

Previous wording

Loan origination fees increased $12.2 million and $39.5 million during the quarter and nine months ended September 30, 2025, compared to the same periods in 2024 primarily due to an increase in production volume.

Current wording

Loan origination fees increased $25.8 million during the quarter ended March 31, 2026, compared to the same quarter in 2025 primarily due to an increase in production volume.

Previous wording

Fulfillment fees from PMT represent fees we collect for services we perform on behalf of PMT in connection with the acquisition, packaging and sale of loans. The fulfillment fees are calculated based on the number of loans we fulfill for PMT.

Current wording

Fulfillment fees from PMT represent fees we collect for services we perform on behalf of PMT in connection with the acquisition, packaging and sale of loans. The fulfillment fees are calculated based on the number of loans we fulfill for PMT and an increase in the number of loans included in PMT’s non-Agency securitization and loan sales.

Previous wording

Loan servicing fees from non-affiliates generally relate to our MSRs which are primarily related to servicing we provide for loans included in Agency securitizations. These fees are contractually established at an annualized percentage of the UPB of the loan serviced and we collect these fees from borrower payments. Loan servicing fees from PMT are primarily related to PMT’s MSRs and are established at monthly per-loan amounts based on whether the loan is a fixed-rate or adjustable-rate loan and the loan’s delinquency or foreclosure status as detailed in Note 5*–Transactions with Related Parties*to the consolidated financial statements included in this Quarterly Report. Other loan servicing fees are comprised primarily of borrower-contracted fees such as late charges and reconveyance fees.

Current wording

Loan servicing fees from non-affiliates generally relate to our MSRs which are primarily related to servicing we provide for loans included in Agency securitizations. These fees are contractually established at an annualized percentage of the UPB of the loan serviced and we collect these fees from borrower payments. Loan servicing fees from PMT are primarily related to PMT’s MSRs and are established at monthly per-loan amounts based on whether the loan is a fixed-rate or adjustable-rate loan and the loan’s delinquency or foreclosure status as detailed in Note 5*–Transactions with Related Parties*to the consolidated financial statements included in this Quarterly Report. Subservicing fees from non-affiliates are based upon rates negotiated between the Company and the owner of the servicing rights at the time a subservicing agreement is entered into. Other loan servicing fees are comprised primarily of borrower-contracted fees such as late charges and reconveyance fees.

Previous wording

Loan servicing fees from non-affiliates and other fees increased during the quarter and nine months ended September 30, 2025 compared to the same periods in 2024. The increases were primarily due to growth of our loan servicing portfolio. Other servicing fees increased due to growth in our MSR portfolio combined with increased incentives received for loss mitigation activities.

Current wording

Loan servicing fees from non-affiliates and other fees increased during the quarter ended March 31, 2026 compared to the same quarter in 2025. The increases were primarily due to growth of our loan servicing portfolio. Other servicing fees decreased primarily due to decreased incentives received for loss mitigation activities.

Previous wording

We have elected to carry our servicing assets and liabilities at fair value. Changes in fair value have two components: changes due to realization of cash flows of the MSRs and MSLs and changes due to changes in market inputs used to estimate the fair value of MSRs and MSLs. We endeavor to moderate the effects of changes in fair value by entering into derivatives transactions and holding principal-only stripped mortgage-backed securities.

Current wording

We have elected to carry our servicing assets and liabilities at fair value. Changes in fair value have two components: changes due to realization of cash flows of the MSRs and MSLs and changes due to changes in market inputs used to estimate the fair value of MSRs and MSLs. We endeavor to moderate the effects of changes in fair value arising from changes in market inputs by entering into derivatives transactions and holding principal-only stripped mortgage-backed securities (“MBS”).

Previous wording

Changes in fair value of MSRs attributable to changes in fair value inputs did not decline as significantly during the quarter ended September 30, 2025 compared to the same period in 2024 due to less significant decreases in interest rates during the quarter ended September 30, 2025 compared to the same period in 2024. Changes in fair value of MSRs attributable to changes in fair value inputs decreased more significantly during the nine months ended September 30, 2025 compared to the same periods in 2024 due to more significant decreases in interest rates during the nine months ended September 30, 2025 compared to the same period in 2024. Decreasing interest rates increase the rate of prepayments of the underlying loans, which decreases the cash flows expected from the servicing rights, while increasing interest rates have the opposite effect.

Current wording

Changes in fair value of MSRs attributable to changes in fair value inputs increased during the quarter ended March 31, 2026 compared to the same quarter in 2025 due to increases in interest rates during the quarter ended March 31, 2026 compared to decreasing interest rates during the same quarter in 2025. Increasing interest rates reduce the rate of prepayments of the underlying loans, which increases the cash flows expected from the servicing rights, while decreasing interest rates have the opposite effect.

Previous wording

Changes in fair value attributable to realization of cash flows are influenced by changes in the level of servicing assets and liabilities and changes in estimates of the remaining cash flows to be realized. During the quarter and nine months ended September 30, 2025, realization of cash flows increased compared to the same periods in 2024, primarily due to the growth in our investment in MSRs and increased realized and projected prepayments.

Current wording

Changes in fair value attributable to realization of cash flows are influenced by changes in the level of servicing assets and liabilities and changes in estimates of the remaining cash flows to be realized. During the quarter ended March 31, 2026, realization of cash flows increased compared to the same quarter in 2025, primarily due to expectations for faster loan prepayments in the first quarter of 2026 as opposed to the same period in 2025.

Previous wording

Following is a summary of net interest (expense) income:

Current wording

Following is a summary of net interest expense:

Previous wording

Management fees decreased $241,000 and $681,000 during the quarter and nine months ended September 30, 2025 compared to the same periods in 2024, due to decreases in PMT’s average shareholders’ equity which is the basis for the base management fees.

Current wording

Management fees decreased $250,000 during the quarter ended March 31, 2026 compared to the same quarter in 2025, due to decreases in PMT’s average shareholders’ equity which is the basis for the base management fees.

Previous wording

Compensation expenses increased $34.0 million and $115.2 million during the quarter and nine months ended September 30, 2025 compared to the same periods in 2024. The increases were primarily due to an increase in head count and increased incentive compensation during the quarter and nine months ended September 30, 2025, reflecting higher loan production volume and increased bonus accruals resulting from higher profitability.

Current wording

Compensation expenses increased $34.4 million during the quarter ended March 31, 2026 compared to the same quarter in 2025. The increase was primarily due to an increase in head count and increased incentive compensation reflecting higher loan production volume.

Previous wording

Loan origination expenses increased $24.2 million and $66.3 million for the quarter and nine months ended September 30, 2025 compared to the same periods in 2024. The increases were primarily due to higher origination volumes.

Current wording

Loan origination expenses increased $35.6 million for the quarter ended March 31, 2026 compared to the same quarter in 2025. The increases were primarily due to higher origination volumes.

Previous wording

Technology expenses increased $7.7 million and $18.5 million during the quarter and nine months ended September 30, 2025 compared to the same quarter in 2024. The increases were primarily due to increases in virtual desktop and cloud-related expenses and a $4.3 million impairment of capitalized software recorded during the quarter ended September 30, 2025.

Current wording

Technology expenses increased $5.9 million during the quarter ended March 31, 2026 compared to the same quarter in 2025. The increases were primarily due to an increase in software license expenses and a $371,000 impairment of capitalized software recorded during the quarter ended March 31, 2026.

Previous wording

Servicing expenses increased $220,000 and $11.4 million during the quarter and nine months ended September 30, 2025 compared to the same periods in 2024. The increases were primarily due to increases in provision for losses on servicing advances resulting from higher delinquent loan balances resulting from a larger servicing portfolio during the quarter and nine months ended September 30, 2025 compared to the same periods in 2024.

Current wording

Servicing expenses increased $16.4 million during the quarter ended March 31, 2026 compared to the same quarter in 2025. The increase was primarily due to increases in provision for losses on servicing advances resulting from higher delinquent loan balances resulting from a larger servicing portfolio and a larger proportion of delinquencies of 90 days of greater.

Previous wording

Marketing and advertising expenses increased $8.9 million and $21.6 million during the quarter and nine months ended September 30, 2025 compared to the same periods in 2024. The increases were primarily due to additional marketing expenses incurred as an Official Supporter of Team USA and increased marketing expenses for consumer direct lending.

Current wording

Marketing and advertising expenses increased $11.7 million during the quarter ended March 31, 2026 compared to the same quarter in 2025. The increase was primarily due to additional marketing expenses incurred as an Official Supporter of Team USA, including marketing during the 2026 winter Olympics and increased marketing expenses for consumer direct lending.

Previous wording

Our effective income tax rates were 23.2% and 26.1% for the quarters ended September 30, 2025 and 2024, respectively, and 5.5% and 23.8% for the nine months ended September 30, 2025 and 2024, respectively. The decreases in the effective income tax rates for the quarter and nine months ended September 30, 2025 compared to the same periods in 2024 are primarily due to the enactment of California Senate Bill 132, signed into law June 27, 2025 and effective January 1, 2025. The law requires financial institutions to apportion their California income using a single sales factor instead of a factor equally weighted with property, payroll and sales. Our effective income tax rate for the nine months ended September 30, 2025 includes a repricing of deferred tax liabilities resulting from this apportionment rule change.

Current wording

Our effective income tax rates were 21.4% and 26.8% for the quarters ended March 31, 2026 and 2025, respectively. The decrease in the effective income tax rate for the quarter ended March 31, 2026 compared to the same quarter in 2025 is due to the effet of an increase in deductible compensation, as well as a favorable change in California apportionment rules enacted into law in June 2025 allowing us to apportion income to California using a single sales factor instead of a factor equally weighed with property, payroll and sales.

Previous wording

Total assets decreased $685.8 million from $26.1 billion at December 31, 2024 to $25.4 billion at September 30, 2025. The decrease was primarily due to a decrease of $727.0 million in loans held for sale at fair value and a decrease of $740.2 million of loans eligible for repurchase, partially offset by an increase of $909.4 million of mortgage servicing rights.

Current wording

Total assets increased $2.5 billion from $29.4 billion at December 31, 2025 to $31.9 billion at March 31, 2026. The increase was primarily due to an increase of $1.2 billion of loans eligible for repurchase, an increase of $831.1 million in loans held for sale at fair value and an increase of $550.1 million of mortgage servicing rights.

Previous wording

Total liabilities decreased $1.1 billion from $22.3 billion at December 31, 2024 to $21.0 billion at September 30, 2025. The decrease was primarily due to a decrease of $410.3 million in borrowings and a decrease of $740.2 million in liability for loans eligible for repurchase. As a result of our decreased inventory financing requirements, our leverage ratios decreased during the quarter ended September 30, 2025 from December 31, 2024.

Current wording

Total liabilities increased $2.5 billion from $25.1 billion at December 31, 2025 to $27.6 billion at March 31, 2026. The increase was primarily due to an increase of $1.2 billion in liability for loans eligible for repurchase and an increase of $1.5 billion in borrowings to finance increases in loans held for sale and MSRs. As a result of our increased inventory financing requirements, our leverage ratios increased during the quarter ended March 31, 2026 from December 31, 2025.

Previous wording

The net increase in cash of $383.4 million during the nine months ended September 30, 2025 is discussed below.

Current wording

The net decrease in cash of $82.2 million during the quarter ended March 31, 2026 is discussed below.

Previous wording

Net cash provided by operating activities totaled $237.3 million during the nine months ended September 30, 2025 compared with net cash used in operating activities of $2.4 billion during the same period in 2024. Our cash flows from operating activities are primarily influenced by changes in the levels of our inventory of mortgage loans held for sale as shown below:

Current wording

Net cash used in operating activities totaled $1.3 billion during the quarter ended March 31, 2026 compared with net cash provided by operating activities of $1.1 billion during the same quarter in 2025. Our cash flows from operating activities are primarily influenced by changes in the levels of our inventory of mortgage loans held for sale as shown below:

Previous wording

Net cash provided by investing activities during the nine months ended September 30, 2025 totaled $626.0 million, primarily due to a $358.3 million decrease in short-term investment, a $185.4 million sale of MSRs and $119.3 million from the repayment of principal-only stripped mortgage-backed securities. Net cash used in investing activities during the nine months ended September 30, 2024 totaled $1.8 billion, primarily due to $935.4 million in purchases of principal-only stripped mortgage-backed securities, a $657.7 million increase in short-term investment and $210.2 million in net settlement of derivative financial instruments used to hedge our investment in MSRs.

Current wording

Net cash used in investing activities during the quarter ended March 31, 2026 totaled $144.5 million, primarily due to $171.6 million in net settlement of derivative financial instruments used to hedge our investment in MSRs and an increase of $24.2 million in short-term investment, partially offset by $58.1 million in proceeds from the repayment of principal-only stripped mortgage-backed securities. Net cash provided by investing activities during the quarter ended March 31, 2025 totaled $30.4 million, primarily due to $74.6 million in net settlement of derivative financial instruments used to hedge our investment in MSRs and $37.8 million in repayment of principal-only stripped mortgage-backed securities, partially offset by increases of $22.8 million in short-term investment and $51.6 million in margin deposits.

Previous wording

Net cash used in financing activities totaled $479.8 million during the nine months ended September 30, 2025, primarily due to a decrease of $378.0 million in borrowings. The decrease in borrowings primarily reflects the decrease in inventory of loans held for sale. Net cash provided by financing activities totaled $3.4 billion during the nine months ended September 30, 2024, primarily due to an increase of $3.4 billion in borrowings. The increase in borrowings primarily reflects the increase in inventory of loans held for sale, principal-only stripped mortgage-backed securities and our investment in MSRs.

Current wording

Net cash provided by financing activities totaled $1.4 billion during the quarter ended March 31, 2026, primarily due to an increase of $1.5 billion in borrowings. The increase in borrowings primarily reflects the increase in inventory of loans held for sale. Net cash used in financing activities totaled $1.1 billion during the quarter ended March 31, 2025, primarily due to a decrease of $1.1 billion in borrowings. The decrease in borrowings primarily reflects the decrease in inventory of loans held for sale.

Previous wording

Our liquidity reflects our ability to meet our current obligations (including our operating expenses and, when applicable, the retirement of, and margin calls relating to, our debt, and margin calls relating to hedges on our commitments to purchase or originate mortgage loans and on our MSR investments), fund new originations and purchases, and make investments as we identify them. We expect our primary sources of liquidity to be through cash flows from business activities, proceeds from bank borrowings and proceeds from and issuance of equity or debt offerings. We believe that our liquidity is sufficient to meet our current liquidity needs.

Current wording

Our liquidity reflects our ability to meet our current obligations (including our operating expenses and, when applicable, the retirement of, and margin calls relating to, our debt, and margin calls relating to hedges on our commitments to purchase or originate mortgage loans and on our MSR investments), fund new originations and purchases, and make investments as we identify them. We expect our primary sources of liquidity to be through cash flows from business activities, proceeds from bank borrowings and proceeds from and issuance of equity or debt offerings. We believe that our capital resources are sufficient to meet our current liquidity requirements.

Previous wording

The differences between the average and maximum daily balances on our repurchase agreements reflect both the effect of increasing loan inventory levels during the nine months ended September 30, 2025 and the fluctuations throughout the periods of our inventory as we fund and pool mortgage loans for sale in guaranteed mortgage securitizations.

Current wording

The differences between the average and maximum daily balances on our repurchase agreements reflect both the effect of increasing loan inventory levels during the quarter ended March 31, 2026 and the fluctuations throughout the periods of our inventory as we fund and pool mortgage loans for sale in guaranteed mortgage securitizations.

Previous wording

We are also subject to liquidity and net worth requirements established by the Federal Housing Finance Agency (“FHFA”) for Agency seller/servicers and Ginnie Mae for single-family issuers. FHFA and Ginnie Mae have established minimum liquidity and net worth requirements for their approved non-depository single-family sellers/servicers in the case of Fannie Mae, Freddie Mac, and Ginnie Mae for its approved single-family issuers, and Ginnie Mae has issued risk-based capital requirements. We believe that we are in compliance with the Agency’s requirements as of September 30, 2025.

Current wording

We are also subject to liquidity and net worth requirements established by the Federal Housing Finance Agency (“FHFA”) for Agency seller/servicers and Ginnie Mae for single-family issuers. FHFA and Ginnie Mae have established minimum liquidity and net worth requirements for their approved non-depository single-family sellers/servicers in the case of Fannie Mae, Freddie Mac, and Ginnie Mae for its approved single-family issuers, and Ginnie Mae has issued risk-based capital requirements. We believe that we are in compliance with each Agency’s requirements as of March 31, 2026.