PennyMac's mortgage division reported a net loss of $38.6 million in the fourth quarter, which includes one-time accruals related to mortgage loans.
Quarterly results, which the company reported after the close of the regular trading day, were down from $93 million.
“While we disagree with the ruling, we believe that SSE remains our proprietary technology and our ability to utilize it as we see fit to benefit our customers and stakeholders. We are very pleased with the arbitrator's confirmation to provide PennyMac,” said the Chairman and Chairman. CEO David Spector said this at an earnings conference.
He added: “We believe this technology is now free of any restrictions on its use or development and may create further opportunities for us and our stakeholders over time.”
In response to an analyst's question, he declined to say whether these opportunities are external or internal, saying the company is still exploring its options in this area.
The company also recorded negative items related to certain hedging cost adjustments and the valuation of mortgage servicing rights, which tend to decline as interest rates rise. However, arbitration receivables were the largest contributor to the pretax negative $96 million in service costs. His pre-tax service income, excluding valuation-related items, was $144 million.
Meanwhile, the relative decline in interest rates during the quarter contributed to pre-tax income from mortgage originations of $39 million, of which $26.7 billion flowed primarily through correspondent channels.
Pre-tax income for the previous quarter was categorized by business area as follows: Service industry, $101 million. The production value is $25.1 million. A year ago, the pre-tax numbers were: Services, $145.3 million; and a $9 million loss on origination.
PennyMac's financial services division was profitable for the full year with net income of $144.7 million, but profits declined by that much in 2022. His net income for the year was $475.5 million.
As of press time Thursday, PennyMac's financial services unit's stock price was $87.64 in after-hours trading, up slightly from its opening price of $87.21. However, it was down from the trading day's closing price of $89.02.
Separately, PennyMac's real estate investment trust affiliate reported net income attributable to common stockholders of $42.5 million. This number was down compared to his $51 million in the previous quarter, but up compared to his $4.7 million net loss in the year-ago period. For the full year, the REIT earned him $199.7 million in net income. This compares favorably to his $73.3 million net loss in 2022.
The REIT's closing price for the trading day at $14.44 was unchanged by after-hours earnings announcements as of this writing. PennyMac Mortgage Trust shares opened the day at $14.37.
