# EDGAR Filing Document

**Accession Number:** 0001745916
**File Stem:** 0001104659-23-009927
**Filing Date:** 2023-2
**Character Count:** 81875
**Document Hash:** 24d0d094c047baafeff3a92f49dbd21b
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001104659-23-009927.hdr.sgml**: 20230202

**ACCESSION NUMBER**: 0001104659-23-009927

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 49

**CONFORMED PERIOD OF REPORT**: 20230202

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230202

**DATE AS OF CHANGE**: 20230202

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** PennyMac Financial Services, Inc.
- **CENTRAL INDEX KEY:** 0001745916
- **STANDARD INDUSTRIAL CLASSIFICATION:** MORTGAGE BANKERS & LOAN CORRESPONDENTS [6162]
- **IRS NUMBER:** 831098934
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-38727
- **FILM NUMBER:** 23581409

**BUSINESS ADDRESS:**
- **STREET 1:** 3043 TOWNSGATE ROAD
- **CITY:** WESTLAKE VILLAGE
- **STATE:** CA
- **ZIP:** 91361
- **BUSINESS PHONE:** (818) 224-7442

**MAIL ADDRESS:**
- **STREET 1:** 3043 TOWNSGATE ROAD
- **CITY:** WESTLAKE VILLAGE
- **STATE:** CA
- **ZIP:** 91361

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** New PennyMac Financial Services, Inc.
- **DATE OF NAME CHANGE:** 20180709

?xml version="1.0" encoding="utf-8"?

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 8-K**

**CURRENT REPORT**

**Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934**

**Date of Report (Date of earliest event reported): February 2, 2023**

**PennyMac Financial Services, Inc.**

(Exact name of registrant as specified in its charter)

---

| | | |
|:---|:---|:---|
| **Delaware** | **001-38727** | **83-1098934** |
| (State or other jurisdiction<br> of incorporation) | (Commission<br> File Number) | (IRS Employer<br> Identification No.) |

---

---

| | |
|:---|:---|
| **3043 Townsgate Road, Westlake Village, California** | **91361** |
| (Address of principal executive offices) | (Zip Code) |

---

**(818) 224-7442**

(Registrant's telephone number, including area code)

**Not Applicable**

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| **Title of each class** | **Trading Symbol(s)** | **Name of each exchange on which registered** |
| Common Stock, $0.0001 par value | PFSI | New York Stock Exchange |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ◻

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ◻

**Item 2.02&nbsp;&nbsp;&nbsp;&nbsp;Results of Operations and Financial Condition.**

On February 2, 2023, PennyMac Financial Services, Inc. (the "Company") issued a press release announcing its financial results for the fiscal quarter and year ended December 31, 2022. A copy of the press release and the slide presentation used in connection with the Company's recorded presentation of financial results were made available on February 2, 2023 and are furnished as Exhibits 99.1 and Exhibit 99.2, respectively.

The information in Item 2.02 of this report, including the exhibits hereto, shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liabilities of Section 18, nor shall it be deemed incorporated by reference into any disclosure document relating to the Company, except to the extent, if any, expressly set forth by specific reference in such filing.

**Item 9.01&nbsp;&nbsp;&nbsp;&nbsp;Financial Statements and Exhibits.**

(d) Exhibits.

---

| | |
|:---|:---|
| **Exhibit No.** | **Description** |
| [99.1](tm235244d1_ex99-1.htm) | [Press Release, dated February 2, 2023, issued by PennyMac Financial Services, Inc. pertaining to its financial results for the fiscal quarter and year ended December 31, 2022.](tm235244d1_ex99-1.htm) |
| [99.2](tm235244d1_ex99-2.htm) | [Slide Presentation for use beginning on February 3, 2023 in connection with a recorded presentation of financial results for the fiscal quarter and year ended December 31, 2022.](tm235244d1_ex99-2.htm) |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |

---

**SIGNATURE**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | |
|:---|:---|
|  | PENNYMAC FINANCIAL SERVICES, INC. |
| Dated: February 2, 2023 | /s/ Daniel S. Perotti |
|  | Daniel S. Perotti<br> Senior Managing Director and Chief Financial Officer |

---

## Exhibit 99.1

**Exhibit 99.1**

![](tm235244d1_ex99-1imag01.jpg)

**PennyMac Financial Services, Inc. Reports**

**Fourth Quarter and Full-Year 2022 Results**

**WESTLAKE VILLAGE, Calif.** – **February 2, 2023** – PennyMac Financial Services, Inc. (NYSE: PFSI) today reported net income of $37.6 million for the fourth quarter of 2022, or $0.71 per share on a diluted basis, on revenue of $340.4 million. Book value per share increased to $69.44 from $68.26 at September 30, 2022.

PFSI's Board of Directors declared a fourth quarter cash dividend of $0.20 per share, payable on February 24, 2023, to common stockholders of record as of February 14, 2023.

**Fourth Quarter** **2022 Highlights**

· Net income included non-recurring tax items of $(11.9) million primarily
driven by a tax rate increase impacting PFSI's net deferred tax liability; impact on earnings per share was $(0.22)

· Pretax income was $67.7 million, down 63 percent from the prior quarter and
71 percent from the fourth quarter of 2021

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Repurchased 1.1 million shares of PFSI's common stock at an average price of $46.99 per share for a cost of $51.3 million

· Production segment pretax loss of $9.0 million, down from pretax income of
$38.6 million in the prior quarter and $106.5 million in the fourth quarter of 2021

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Total loan acquisitions and originations, including those fulfilled for PennyMac Mortgage Investment Trust (NYSE: PMT) were $23.0
billion in unpaid principal balance (UPB), down 12 percent from the prior quarter and 51 percent from the fourth quarter of 2021

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Consumer direct interest rate lock commitments (IRLCs) were $1.7 billion in UPB, down 56 percent from the prior quarter and 88 percent
from the fourth quarter of 2021

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Broker direct IRLCs were $2.0 billion in UPB, up 8 percent from the prior quarter and down 48 percent from the fourth quarter of 2021

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Government correspondent IRLCs totaled $10.7 billion in UPB, down 14 percent from the prior quarter and 31 percent from
the fourth quarter of 2021

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Conventional correspondent IRLCs for PFSI's account totaled $4.7 billion in UPB

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Correspondent acquisitions of conventional conforming loans fulfilled for PennyMac Mortgage Investment Trust (NYSE: PMT) were $6.8
billion in UPB, down 34 percent from the prior quarter and 61 percent from the fourth quarter of 2021

· Servicing segment pretax income was $75.6 million, down from $145.3
million in the prior quarter and $126.1 million in the fourth quarter of 2021

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Pretax income excluding valuation-related items was $79.1 million, up 14 percent from the prior quarter driven by increased earnings
on custodial balances and deposits and decreased operating expenses

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Valuation items included:

$82.6 million in mortgage servicing rights (MSR) fair value gains largely offset by $72.9 million in hedging losses

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Net impact on pretax income related to these items was $9.7 million, or $0.13
in earnings per share

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· $13.2 million provision for losses on active loans

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Servicing portfolio grew to $551.7 billion in UPB, up 2 percent from September 30, 2022, driven by production volumes which more
than offset prepayment activity

· Investment Management segment pretax income was $1.2 million, down from $1.6
million in the prior quarter and $1.5 million in the fourth quarter of 2021

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Net assets under management (AUM) were $2.0 billion, down 3 percent from September 30, 2022, and 17 percent from December 31,
2021

*Notable activity after quarter end*

· PFSI exercised its option to extend the maturity for $650 million in term
notes secured by Ginnie Mae MSRs originally due in February 2023 for two years

**Full-Year 2022 Highlights**

· Net income of $475.5 million, down from $1.0 billion in 2021; return on equity
of 14 percent

· Pretax income of $665.2 million, down from $1.4 billion in 2021

· Total net revenue of $2.0 billion, down from $3.2 billion in 2021

· Repurchased approximately 7.8 million shares of PFSI's common stock,
or 14 percent of the total outstanding shares at the beginning of the year, for an approximate cost of $406 million

· Loan production of $109.0 billion in UPB, a decrease of 54 percent from 2021

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o $22.3 billion in UPB of originations in the direct lending channels, down 63 percent from 2021

· Servicing portfolio UPB of $551.7 billion at year end, up 8 percent from
December 31, 2021

· Issued $500 million of 5-year term notes secured by Ginnie Mae MSRs

"PennyMac Financial produced strong results in 2022, a year characterized by a rapid and significant increase in mortgage rates," said Chairman and CEO David Spector. "The 14 percent return on equity achieved in 2022 can be attributed to the resilience and scale of our balanced business model and the decisive actions taken throughout the year to right-size our business for the much smaller origination market. While production activity fell in 2022 our servicing earnings were strong. In fact, the majority of PennyMac Financial's income in 2022 was generated by our large and growing servicing portfolio, which totaled more than $550 billion in unpaid principal balance at year end, up 8 percent from the prior year. Strong financial performance not only enabled us to continue returning capital to stockholders and investing in innovative mortgage banking technology, but also resulted in solid growth in PFSI's book value per share, which ended the year up 16 percent from year end 2021."

Mr. Spector continued, "More than 15 years ago, we founded Pennymac with a vision to help revitalize the mortgage market and become a trusted partner in home ownership. Since then, we have grown responsibly and profitably into one of the largest residential mortgage producers and servicers in the country with an industry-leading correspondent production business and a growing presence in the direct lending channels. Though 2023 is expected to be another challenging year for the mortgage industry, I remain confident in PennyMac Financial's ability to continue executing given its balanced business model and long history of generating stockholder value through different mortgage market cycles and environments."

The following table presents the contributions of PennyMac Financial's segments to pretax income:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Quarter ended December 31, 2022** | **Quarter ended December 31, 2022** | **Quarter ended December 31, 2022** | **Quarter ended December 31, 2022** | **Quarter ended December 31, 2022** |
|  | **Mortgage Banking** | **Mortgage Banking** | **Mortgage Banking** | | |
|  | **Production** | **Servicing** | **Total** | **Investment**<br>**Management** | <br>**Total** |
|  | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** |
| Revenue |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Net gains on loans held for sale at fair value | $84708 | $17205 | $101913 | $- | $101913 |
| &nbsp;&nbsp;&nbsp;Loan origination fees | 28019 |  | 28019 |  | 28019 |
| &nbsp;&nbsp;&nbsp;Fulfillment fees from PMT | 12184 |  | 12184 |  | 12184 |
| &nbsp;&nbsp;&nbsp;Net loan servicing fees |  | 182831 | 182831 |  | 182831 |
| &nbsp;&nbsp;&nbsp;Management fees |  |  |  | 7307 | 7307 |
| &nbsp;&nbsp;&nbsp;Net interest income (expense): |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest income | 42855 | 64467 | 107322 |  | 107322 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest expense | 36836 | 67192 | 104028 | - | 104028 |
|  | 6019 | (2725) | 3294 |  | 3294 |
| &nbsp;&nbsp;&nbsp;Other | 661 | 1655 | 2316 | 2582 | 4898 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total net revenue | 131591 | 198966 | 330557 | 9889 | 340446 |
| Expenses | 140607 | 123401 | 264008 | 8709 | 272717 |
| Income before provision for income taxes | $(9016) | $75565 | $66549 | $1180 | $67729 |

---

**Production Segment**

The Production segment includes the correspondent acquisition of newly originated government-insured and certain conventional conforming loans for PennyMac Financial's own account, fulfillment services on behalf of PMT and direct lending through the consumer direct and broker direct channels, including the underwriting and acquisition of loans from correspondent sellers on a non-delegated basis.

PennyMac Financial's loan production activity for the quarter totaled $23.0 billion in UPB, $16.2 billion of which was for its own account, and $6.8 billion of which was fee-based fulfillment activity for PMT. Correspondent locks for PFSI and direct lending IRLCs totaled $19.1 billion in UPB, up 6 percent from the prior quarter and down 43 percent from the fourth quarter of 2021.

Production segment pretax loss was $9.0 million, down from pretax income of $38.6 million in the prior quarter and $106.5 million in the fourth quarter of 2021. Production segment revenue totaled $131.6 million, down 34 percent from the prior quarter and 69 percent from the fourth quarter of 2021. The quarter-over-quarter decrease was driven by a $56.0 million decrease in net gains on loans held for sale primarily as a result of lower volume in the consumer direct lending channel and lower overall margins.

The components of net gains on loans held for sale are detailed in the following table:

---

| | | | |
|:---|:---|:---|:---|
|  | **Quarter ended** | **Quarter ended** | **Quarter ended** |
|  | **December 31,<br> 2022** | **September 30,<br> 2022** | **December 31,<br> 2021** |
|  | **(in thousands)** | **(in thousands)** | **(in thousands)** |
| Receipt of MSRs and recognition of MSLs in loan sale transactions | $358462 | $345077 | $467141 |
| Mortgage servicing rights recapture payable to PennyMac Mortgage Investment Trust | (512) | (1648) | (12701) |
| (Provision for) reversal of liability for representations and warranties, net | (444) | 118 | (315) |
| Cash (loss) gain <sup>(1)</sup> | (340869) | (16795) | 37537 |
| Fair value changes of pipeline, inventory and hedges | 85276 | (158058) | 8996 |
| Net gains on mortgage loans held for sale | $101913 | $168694 | $500658 |
| Net gains on mortgage loans held for sale by segment: |  |  |  |
| &nbsp;&nbsp;&nbsp;Production | $84708 | $140683 | $314826 |
| &nbsp;&nbsp;&nbsp;Servicing | $17205 | $28011 | $185832 |

---

<sup>(1)</sup> Including cash hedging results

PennyMac Financial performs fulfillment services for certain conventional conforming and jumbo loans acquired by PMT from non-affiliates in its correspondent production business. These services include, but are not limited to, marketing, relationship management, correspondent seller approval and monitoring, loan file review, underwriting, pricing, hedging and activities related to the subsequent sale and securitization of loans in the secondary mortgage markets for PMT.

Fees earned from the fulfillment of correspondent loans on behalf of PMT totaled $12.2 million in the fourth quarter, down 34 percent from the prior quarter and 40 percent from the fourth quarter of 2021. The quarter-over-quarter decrease in fulfillment fee revenue was driven by lower conventional acquisition volumes for PMT's account as PFSI began to acquire certain of the conventional loans sourced by PMT.

Net interest income totaled $6.0 million, up slightly from $5.9 million in the prior quarter. Interest income in the fourth quarter totaled $42.9 million, up from $30.8 million in the prior quarter, and interest expense totaled $36.8 million, up from $25.0 million in the prior quarter, both due to increasing interest rates.

Production segment expenses were $140.6 million, down 13 percent from the prior quarter and 56 percent from the fourth quarter of 2021. The decline from the prior quarter was driven by lower volumes in the direct lending channels and the expense management initiatives announced in prior quarters.

**Servicing Segment**

The Servicing segment includes income from owned MSRs, subservicing and special servicing activities. Servicing segment pretax income was $75.6 million, down from $145.3 million in the prior quarter and $126.1 million in the fourth quarter of 2021. Servicing segment net revenues totaled $199.0 million, down from $266.5 million in the prior quarter and $255.7 million in the fourth quarter of 2021. The quarter-over-quarter decrease was primarily driven by a $60.9 million decrease in net loan servicing fees and a $10.8 million decrease in net gains on loans held for sale related to early buyout (EBO) activity.

Revenue from net loan servicing fees totaled $182.8 million, down from $243.7 million in the prior quarter primarily driven by lower net valuation related gains and partially offset by increased loan servicing fees due to a larger servicing portfolio. Revenue from loan servicing fees included $321.9 million in servicing fees, reduced by $148.8 million from the realization of MSR cash flows. Net valuation-related gains totaled $9.7 million, and included MSR fair value gains of $82.6 million, and hedging losses of $72.9 million. The hedging losses were largely driven by hedge costs and higher interest rates during the quarter.

The following table presents a breakdown of net loan servicing fees:

---

| | | | |
|:---|:---|:---|:---|
|  | **Quarter ended** | **Quarter ended** | **Quarter ended** |
|  | **December 31,<br> 2022** | **September 30,<br> 2022** | **December 31,<br> 2021** |
|  | **(in thousands)** | **(in thousands)** | **(in thousands)** |
| Loan servicing fees | $321949 | $313080 | $287888 |
| Changes in fair value of MSRs and MSLs resulting from: |  |  |  |
| &nbsp;&nbsp;&nbsp;Realization of cash flows | (148835) | (141781) | (97025) |
| &nbsp;&nbsp;&nbsp;Change in fair value inputs | 82587 | 237192 | (58407) |
| Hedging losses | (72870) | (164749) | (37723) |
| &nbsp;&nbsp;&nbsp;Net change in fair value of MSRs and MSLs | (139118) | (69338) | (193155) |
| &nbsp;&nbsp;&nbsp;Net loan servicing fees | $182831 | $243742 | $94733 |

---

Servicing segment revenue included $17.2 million in net gains on loans held for sale related to reperforming government-insured and guaranteed loans purchased out of Ginnie Mae securitizations, or EBOs. These gains were down from $28.0 million in the prior quarter and $185.8 million in the fourth quarter of 2021. These EBOs are previously delinquent loans that were brought back to performing status through PennyMac Financial's successful servicing efforts.

Net interest expense totaled $2.7 million, versus $5.8 million in the prior quarter and $25.2 million in the fourth quarter of 2021. Interest income was $64.5 million, up from $52.2 million in the prior quarter as increased placement fees on custodial balances more than offset the decline in interest income on EBO loans held for sale. Interest expense was $67.2 million, up from $58.0 million in the prior quarter due to higher interest rates.

Servicing segment expenses totaled $123.4 million, up 2 percent from the prior quarter. Servicing segment expenses included $13.2 million in provisions for losses on active loans in the fourth quarter due to higher delinquency rates. The prior quarter included a reversal of the provision of $3.2 million.

The total servicing portfolio grew to $551.7 billion in UPB at December 31, 2022, an increase of 2 percent from September 30, 2022 and 8 percent from December 31, 2021. PennyMac Financial subservices and conducts special servicing for $233.6 billion in UPB, an increase of 1 percent from September 30, 2022 and 5 percent from December 31, 2021. PennyMac Financial's owned MSR portfolio grew to $318.1 billion in UPB, an increase of 3 percent from September 30, 2022 and 11 percent from December 31, 2021.

The table below details PennyMac Financial's servicing portfolio UPB:

---

| | | | |
|:---|:---|:---|:---|
|  | **December 31,<br> 2022** | **September 30,<br> 2022** | **December 31,<br> 2021** |
|  | **(in thousands)** | **(in thousands)** | **(in thousands)** |
| Prime servicing: |  |  |  |
| &nbsp;&nbsp;&nbsp;Owned |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mortgage servicing rights and liabilities |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Originated | $295032674 | $283653037 | $254524015 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Acquisitions | 19568122 | 20182332 | 23861358 |
|  | 314600796 | 303835369 | 278385373 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loans held for sale | 3498214 | 4287585 | 9430766 |
|  | 318099010 | 308122954 | 287816139 |
| &nbsp;&nbsp;&nbsp;Subserviced for PMT | 233554875 | 230959804 | 221864120 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total prime servicing | 551653885 | 539082758 | 509680259 |
| Special servicing - subserviced for PMT | 20797 | 19015 | 28022 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total loans serviced | $551674682 | $539101773 | $509708281 |

---

**Investment Management Segment**

PennyMac Financial manages PMT for which it earns base management fees and may earn incentive compensation. Net AUM were $2.0 billion as of December 31, 2022, down 3 percent from September 30, 2022 and 17 percent from December 31, 2021.

Pretax income for the Investment Management segment was $1.2 million, down from $1.6 million in the prior quarter and $1.5 million in the fourth quarter of 2021. Base management fees from PMT were $7.3 million, down from $7.7 million in the prior quarter and $8.9 million in the fourth quarter of 2021 due to the decline in AUM. No performance incentive fees were earned in the fourth quarter.

The following table presents a breakdown of management fees:

---

| | | | |
|:---|:---|:---|:---|
|  | **Quarter ended** | **Quarter ended** | **Quarter ended** |
|  | **December 31,<br> 2022** | **September 30,<br> 2022** | **December 31,<br> 2021** |
|  | **(in thousands)** | **(in thousands)** | **(in thousands)** |
| Management fees: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Base | $7307 | $7731 | $8919 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Performance incentive | - | - | - |
| &nbsp;&nbsp;&nbsp;Total management fees | $7307 | $7731 | $8919 |
| Net assets of PennyMac Mortgage Investment Trust | $1962815 | $2017331 | $2367518 |

---

Investment Management segment expenses totaled $8.7 million, unchanged from the prior quarter and down 2 percent from the fourth quarter of 2021.

**Consolidated Expenses**

Total expenses were $272.7 million, down 6 percent from the prior quarter and 41 percent from the fourth quarter of 2021. The quarter-over-quarter decrease was primarily driven by lower production volumes in the direct lending channels, expense management activities and a reduction of performance-based compensation accruals.

**Taxes**

PFSI recorded a provision for tax expense of $30.1 million, resulting in an effective tax rate of 44.4 percent versus 27.1 percent in the prior quarter. The increase in the effective tax rate in the fourth quarter was primarily driven by an increase in the provision tax rate, which increased from 26.5 percent to 26.85 percent for 2022. The increase in tax rate resulted in the repricing of PFSI's net deferred tax liability, which was the primary driver of a non-recurring tax expense of approximately $11.9 million in the quarter.

\*\*\*

Management's slide presentation will be available in the Investor Relations section of the Company's website at <u>pfsi.pennymac.com</u> after the market closes on Thursday, February 2, 2023.

# -

**About PennyMac Financial Services, Inc.**

PennyMac Financial Services, Inc. is a specialty financial services firm focused on the production and servicing of U.S. mortgage loans and the management of investments related to the U.S. mortgage market. Founded in 2008, the company is recognized as a leader in the U.S. residential mortgage industry and employs approximately 4,000 people across the country. In 2022, PennyMac Financial's production of newly originated loans totaled $109 billion in unpaid principal balance, making it the third largest mortgage lender in the nation. As of December 31, 2022, PennyMac Financial serviced loans totaling $552 billion in unpaid principal balance, making it a top ten mortgage servicer in the nation. Additional information about PennyMac Financial Services, Inc. is available at <u>pfsi.pennymac.com</u>.

---

| | |
|:---|:---|
| **Media** | **Investors** |
| Kristyn Clark | Kevin Chamberlain |
| <u>kristyn.clark@pennymac.com</u> | Isaac Garden |
| (805) 395-9943 | <u>PFSI_IR@pennymac.com</u> |
|  | (818) 224-7028 |

---

**Forward-Looking Statements**

This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, regarding management's beliefs, estimates, projections, and assumptions with respect to, among other things, the Company's financial results, future operations, business plans and investment strategies, as well as industry and market conditions, all of which are subject to change. Words like "believe," "expect," "anticipate," "promise," "project," "plan," and other expressions or words of similar meanings, as well as future or conditional verbs such as "will," "would," "should," "could," or "may" are generally intended to identify forward-looking statements. Actual results and operations for any future period may vary materially from those projected herein and from past results discussed herein. Factors which could cause actual results to differ materially from historical results or those anticipated include, but are not limited to: interest rate changes; declines in real estate or significant changes in U.S. housing prices or activity in the U.S. housing market; the continually changing federal, state and local laws and regulations applicable to the highly regulated industry in which we operate; lawsuits or governmental actions that may result from any noncompliance with the laws and regulations applicable to our business; the mortgage lending and servicing-related regulations promulgated by the Consumer Financial Protection Bureau and its enforcement of these regulations; our dependence on U.S. government-sponsored entities and changes in their current roles or their guarantees or guidelines; changes to government mortgage modification programs; the licensing and operational requirements of states and other jurisdictions applicable to our business, to which our bank competitors are not subject; foreclosure delays and changes in foreclosure practices; changes in macroeconomic and U.S. real estate market conditions; difficulties inherent in adjusting the size of our operations to reflect changes in business levels; purchase opportunities for mortgage servicing rights and our success in winning bids; our substantial amount of indebtedness; the discontinuation of LIBOR; increases in loan delinquencies, defaults and forbearances; failure to modify, resell or refinance early buyout loans; our reliance on PennyMac Mortgage Investment Trust (NYSE: PMT) as a significant contributor to our mortgage banking business; maintaining sufficient capital and liquidity and compliance with financial covenants; our obligation to indemnify third-party purchasers or repurchase loans if loans that we originate, acquire, service or assist in the fulfillment of, fail to meet certain criteria or characteristics or under other circumstances; our obligation to indemnify PMT if our services fail to meet certain criteria or characteristics or under other circumstances; decreases in investment management and incentive fees; conflicts of interest in allocating our services and investment opportunities among us and our advised entities; the effect of public opinion on our reputation; 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 COVID-19; our ability to effectively identify, manage and hedge our credit, interest rate, prepayment, liquidity and climate risks; our initiation or expansion of new business activities or strategies; our ability to detect misconduct and fraud; our ability to mitigate cybersecurity risks and cyber incidents; our ability to pay dividends to our stockholders; and our organizational structure and certain requirements in our charter documents. You should not place undue reliance on any forward- looking statement and should consider all of the uncertainties and risks described above, as well as those more fully discussed in reports and other documents filed by the Company with the Securities and Exchange Commission from time to time. The Company undertakes no obligation to publicly update or revise any forward-looking statements or any other information contained herein, and the statements made in this press release are current as of the date of this release only.

The Company's earnings materials contain financial information calculated other than in accordance with U.S. generally accepted accounting principles ("GAAP"), such as pretax income excluding valuation-related items that provide a meaningful perspective on the Company's business results since the Company utilizes this information to evaluate and manage the business. Non-GAAP disclosure has limitations as an analytical tool and should not be viewed as a substitute for financial information determined in accordance with GAAP.

**PENNYMAC FINANCIAL SERVICES, INC.**

**CONSOLIDATED BALANCE SHEETS (UNAUDITED)**

---

| | | | |
|:---|:---|:---|:---|
|  | **December 31,<br> 2022** | **September 30,<br> 2022** | **December 31,<br> 2021** |
|  | **(in thousands, except share amounts)** | **(in thousands, except share amounts)** | **(in thousands, except share amounts)** |
| **ASSETS** | | | |
| Cash | $1328536 | $1558679 | $340069 |
| Short-term investments at fair value | 12194 | 36098 | 6873 |
| Loans held for sale at fair value | 3509300 | 4149726 | 9742483 |
| Derivative assets | 99003 | 164160 | 333695 |
| Servicing advances, net | 696753 | 455083 | 702160 |
| Mortgage servicing rights at fair value | 5953621 | 5661672 | 3878078 |
| Operating lease right-of-use assets | 65866 | 72138 | 89040 |
| Investment in PennyMac Mortgage Investment Trust at fair value | 929 | 884 | 1300 |
| Receivable from PennyMac Mortgage Investment Trust | 36372 | 32306 | 40091 |
| Loans eligible for repurchase | 4702103 | 3757538 | 3026207 |
| Other | 417907 | 473527 | 616616 |
| &nbsp;&nbsp;&nbsp;Total assets | $16822584 | $16361811 | $18776612 |
| **LIABILITIES** |  |  |  |
| Assets sold under agreements to repurchase | $3001283 | $3487335 | $7292735 |
| Mortgage loan participation purchase and sale agreements | 287592 | 367473 | 479845 |
| Obligations under capital lease |  |  | 3489 |
| Notes payable secured by mortgage servicing assets | 1942646 | 1793972 | 1297622 |
| Unsecured senior notes | 1779920 | 1778988 | 1776219 |
| Derivative liabilities | 21712 | 125487 | 22606 |
| Mortgage servicing liabilities at fair value | 2096 | 2214 | 2816 |
| Accounts payable and accrued expenses | 262358 | 358187 | 359413 |
| Operating lease liabilities | 85550 | 92380 | 110003 |
| Payable to PennyMac Mortgage Investment Trust | 205011 | 87978 | 228019 |
| Payable to exchanged Private National Mortgage Acceptance Company, LLC unitholders under tax receivable agreement | 26099 | 26675 | 30530 |
| Income taxes payable | 1002744 | 964307 | 685262 |
| Liability for loans eligible for repurchase | 4702103 | 3757538 | 3026207 |
| Liability for losses under representations and warranties | 32421 | 37187 | 43521 |
| &nbsp;&nbsp;&nbsp;Total liabilities | 13351535 | 12879721 | 15358287 |
| **STOCKHOLDERS' EQUITY** |  |  |  |
| Common stock¾authorized 200,000,000 shares of $0.0001 par value; issued and outstanding 49,988,492, 51,011,021, and 56,867,202 shares, respectively | 5 | 5 | 6 |
| Additional paid-in capital |  |  | 125396 |
| Retained earnings | 3471044 | 3482085 | 3292923 |
| &nbsp;&nbsp;&nbsp;Total stockholders' equity | 3471049 | 3482090 | 3418325 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and stockholders' equity | $16822584 | $16361811 | $18776612 |

---

**PENNYMAC FINANCIAL SERVICES, INC.**

**CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)**

---

| | | | |
|:---|:---|:---|:---|
|  | **Quarter ended** | **Quarter ended** | **Quarter ended** |
|  | **December 31,<br> 2022** | **September 30,<br> 2022** | **December 31,<br> 2021** |
|  | **(in thousands, except per share amounts)** | **(in thousands, except per share amounts)** | **(in thousands, except per share amounts)** |
| **Revenue** |  |  |  |
| &nbsp;&nbsp;&nbsp;Net gains on loans held for sale at fair value | $101913 | $168694 | $500658 |
| &nbsp;&nbsp;&nbsp;Loan origination fees | 28019 | 34037 | 88245 |
| &nbsp;&nbsp;&nbsp;Fulfillment fees from PennyMac Mortgage Investment Trust | 12184 | 18407 | 20150 |
| &nbsp;&nbsp;&nbsp;Net loan servicing fees: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loan servicing fees | 321949 | 313080 | 287888 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in fair value of mortgage servicing rights, mortgage servicing liabilities and excess servicing spread financing | (66248) | 95411 | (155432) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mortgage servicing rights hedging results | (72870) | (164749) | (37723) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net loan servicing fees | 182831 | 243742 | 94733 |
| &nbsp;&nbsp;&nbsp;Net interest income: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest income | 107322 | 82994 | 68979 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest expense | 104028 | 82965 | 89844 |
|  | 3294 | 29 | (20865) |
| &nbsp;&nbsp;&nbsp;Management fees from PennyMac Mortgage Investment Trust | 7307 | 7731 | 8919 |
| &nbsp;&nbsp;&nbsp;Other | 4898 | 3650 | 1971 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total net revenue | 340446 | 476290 | 693811 |
| **Expenses** |  |  |  |
| &nbsp;&nbsp;&nbsp;Compensation | 133699 | 157793 | 226723 |
| &nbsp;&nbsp;&nbsp;Servicing | 37424 | 20399 | 31470 |
| &nbsp;&nbsp;&nbsp;Technology | 34896 | 35647 | 41112 |
| &nbsp;&nbsp;&nbsp;Loan origination | 25002 | 28356 | 86789 |
| &nbsp;&nbsp;&nbsp;Professional services | 16144 | 16230 | 31734 |
| &nbsp;&nbsp;&nbsp;Occupancy and equipment | 9985 | 11299 | 8354 |
| &nbsp;&nbsp;&nbsp;Marketing and advertising | 3751 | 7601 | 16568 |
| &nbsp;&nbsp;&nbsp;Other | 11816 | 13493 | 16950 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total expenses | 272717 | 290818 | 459700 |
| Income before provision for income taxes | 67729 | 185472 | 234111 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision for income taxes | 30112 | 50338 | 61028 |
| Net income | $37617 | $135134 | $173083 |
| **Earnings per share** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic | $0.75 | $2.59 | $2.97 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Diluted | $0.71 | $2.46 | $2.79 |
| **Weighted-average common shares outstanding** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic | 50164 | 52170 | 58247 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Diluted | 53088 | 54968 | 61944 |
| Dividend declared per share | $0.20 | $0.20 | $0.20 |

---

**PENNYMAC FINANCIAL SERVICES, INC.**

**CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)**

---

| | | | |
|:---|:---|:---|:---|
|  | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** |
|  | **2022** | **2021** | **2020** |
|  | **(in thousands, except earnings per share)** | **(in thousands, except earnings per share)** | **(in thousands, except earnings per share)** |
| **Revenue** |  |  |  |
| &nbsp;&nbsp;&nbsp;Net gains on loans held for sale at fair value | $791633 | $2464401 | $2740785 |
| &nbsp;&nbsp;&nbsp;Loan origination fees | 169859 | 384154 | 285551 |
| &nbsp;&nbsp;&nbsp;Fulfillment fees from PennyMac Mortgage Investment Trust | 67991 | 178927 | 222200 |
| &nbsp;&nbsp;&nbsp;Net loan servicing fees: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loan servicing fees: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;From non-affiliates | 1054828 | 875570 | 814646 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;From PennyMac Mortgage Investment Trust | 81915 | 80658 | 67181 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other fees | 91894 | 118884 | 116464 |
|  | 1228637 | 1075112 | 998291 |
| &nbsp;&nbsp;&nbsp;Change in fair value of mortgage servicing rights, mortgage servicing liabilities and excess servicing spread financing | 354176 | (416943) | (1477023) |
| &nbsp;&nbsp;&nbsp;Hedging results | (631484) | (475215) | 918180 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net loan servicing fees | 951329 | 182954 | 439448 |
| &nbsp;&nbsp;&nbsp;Net interest expense: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest income | 294062 | 300169 | 247026 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest expense | 335427 | 390699 | 271551 |
|  | (41365) | (90530) | (24525) |
| &nbsp;&nbsp;&nbsp;Management fees from PennyMac Mortgage Investment Trust | 31065 | 37801 | 34538 |
| &nbsp;&nbsp;&nbsp;Other | 15243 | 9654 | 7600 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total net revenue | 1985755 | 3167361 | 3705597 |
| **Expenses** |  |  |  |
| &nbsp;&nbsp;&nbsp;Compensation | 735231 | 999802 | 738569 |
| &nbsp;&nbsp;&nbsp;Loan origination | 173622 | 330788 | 219746 |
| &nbsp;&nbsp;&nbsp;Technology | 139950 | 141426 | 112570 |
| &nbsp;&nbsp;&nbsp;Professional services | 73270 | 94283 | 64064 |
| &nbsp;&nbsp;&nbsp;Servicing | 59628 | 109835 | 256934 |
| &nbsp;&nbsp;&nbsp;Marketing and advertising | 46762 | 44806 | 8658 |
| &nbsp;&nbsp;&nbsp;Occupancy and equipment | 40124 | 35810 | 33357 |
| &nbsp;&nbsp;&nbsp;Other | 51921 | 51428 | 31090 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total expenses | 1320508 | 1808178 | 1464988 |
| Income before provision for income taxes | 665247 | 1359183 | 2240609 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision for income taxes | 189740 | 355693 | 593725 |
| Net income | $475507 | $1003490 | $1646884 |
| **Earnings per share** |  |  |  |
| Basic | $8.96 | $15.73 | $21.91 |
| Diluted | $8.50 | $14.87 | $20.92 |
| **Weighted average shares outstanding** |  |  |  |
| Basic | 53065 | 63799 | 75161 |
| Diluted | 55950 | 67471 | 78728 |

---

## Exhibit 99.2

**Exhibit 99.2**

![](tm235244d1_ex99-2img001.jpg)

4Q22 EARNINGS REPORT PennyMac Financial Services, Inc. February 2023

![](tm235244d1_ex99-2img002.jpg)

2 This presentation contains forward - looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, regarding management's beliefs, estimates, projections and assumptions with respect to, among other things, our financial results, future operations, business plans and in vestment strategies, as well as industry and market conditions, all of which are subject to change. Words like "believe," "expect," "anticipate," "promise," "project," "plan," and other expression s o r words of similar meanings, as well as future or conditional verbs such as "will," "would," "should," "could," or "may" are generally intended to identify forward - looking statements. Actual results and o perations for any future period may vary materially from those projected herein and from past results discussed herein. These forward - looking statements include, but are not limited to, statements rega rding the future interest rate, housing and prepayment rates changes; future loan origination, servicing and production, including future production and operating expenses; future loan delinquenc ies and forbearances; future early buyout loans; future custodial balance earnings; future earnings and return on equity as well as other business and financial expectations. Factors which could caus e a ctual results to differ materially from historical results or those anticipated include, but are not limited to: interest rate changes; declines in real estate or significant changes in U.S. ho usi ng prices or activity in the U.S. housing market; the continually changing federal, state and local laws and regulations applicable to the highly regulated industry in which we operate; lawsuits or go ver nmental actions that may result from any noncompliance with the laws and regulations applicable to our business; the mortgage lending and servicing - related regulations promulgated by the Consumer F inancial Protection Bureau and its enforcement of these regulations; our dependence on U.S. government - sponsored entities and changes in their current roles or their guarantees or guid elines; changes to government mortgage modification programs; the licensing and operational requirements of states and other jurisdictions applicable to our business, to which our bank compet ito rs are not subject; foreclosure delays and changes in foreclosure practices; changes in macroeconomic and U.S. real estate market conditions; difficulties inherent in adjusting the size of ou r o perations to reflect changes in business levels; purchase opportunities for mortgage servicing rights and our success in winning bids; our substantial amount of indebtedness; the discontinuation of LI BOR; increases in loan delinquencies, defaults and forbearances; failure to modify, resell or refinance early buyout loans; our reliance on PennyMac Mortgage Investment Trust (NYSE: PMT) as a significant contributor to our mortgage banking business; maintaining sufficient capital and liquidity and compliance with financial covenants; our obligation to indemnify third - party pu rchasers or repurchase loans if loans that we originate, acquire, service or assist in the fulfillment of, fail to meet certain criteria or characteristics or under other circumstances; our obligatio n t o indemnify PMT if our services fail to meet certain criteria or characteristics or under other circumstances; decreases in investment management and incentive fees; conflicts of interest in allocating our ser vices and investment opportunities among us and our advised entities; the effect of public opinion on our reputation; our exposure to risks of loss and disruptions in operations resulti ng from adverse weather conditions, man - made or natural disasters, climate change and pandemics such as COVID - 19; our ability to effectively identify, manage and hedge our credit, interest rate, prepayme nt, liquidity and climate risks; our initiation or expansion of new business activities or strategies; our ability to detect misconduct and fraud; our ability to mitigate cybersecurity risks an d c yber incidents; our ability to pay dividends to our stockholders; and our organizational structure and certain requirements in our charter documents. You should not place undue reliance on any forwar d - l ooking statement and should consider all of the uncertainties and risks described above, as well as those more fully discussed in reports and other documents filed by the Company with the Sec uri ties and Exchange Commission from time to time. The Company undertakes no obligation to publicly update or revise any forward - looking statements or any other information contained herein, and the statements made in this presentation are current as of the date of this presentation only. This presentation contains financial information calculated other than in accordance with U.S. generally accepted accounting pri nciples ("GAAP"), such as pretax income excluding valuation - related items that provide a meaningful perspective on the Company's business results since the Company utilizes this information to eva luate and manage the business. Non - GAAP disclosure has limitations as an analytical tool and should not be viewed as a substitute for financial information determined in accordance wi th GAAP. FORWARD - LOOKING STATEMENTS

![](tm235244d1_ex99-2img003.jpg)

FOURTH QUARTER HIGHLIGHTS 3 3 PRODUCTION INVESTMENT MANAGEMENT Net income (1) $38mm 4Q22 Results Diluted EPS (1) $0.71 Return on equity 4 % Book value per share $69.44 Capital Return Shares repurchased 1.1mm Dividend per common share $0.20 Pretax income $(9)mm $1.7bn PFSI correspondent lock volume $15.4bn Broker direct lock volume $2.0bn $23.0bn Pretax income $1mm Assets under management $2.0bn Revenue $9.9mm Note: All figures are for 4Q22 or as of 12/31/22 (1) Net income included non - recurring tax items of $(12) million primarily driven by a tax rate increase impacting PFSI's net deferred tax liability; impact on Diluted EPS (earnings per share) was $(0.22) (2) Includes volume fulfilled or subserviced for PennyMac Mortgage Investment Trust (NYSE: PMT) (3) MSR = mortgage servicing rights. UPB = unpaid principal balance (4) Excludes $82.6 million in MSR fair value gains, $72.9 million in hedging losses and a $13.2 million provision for losses on a ct ive loans. See slide 15 for additional details SERVICING Pretax income $76mm MSR (3) fair value changes and hedging results $10mm Pretax income excluding valuation - related items (4) $79mm MSR fair value changes and hedging impact to EPS $0.13 Total servicing portfolio UPB (2)(3) $552bn Total loan acquisitions and originations (2) Consumer direct lock volume Strong servicing results were partially offset by reduced profitability in Consumer Direct and non - recurring tax items (1)

![](tm235244d1_ex99-2img004.jpg)

4 PFSI 2022 HIGHLIGHTS AND ACCOMPLISHMENTS Note: All figures are for the full year 2022 or as of 12/31/22 (1) Includes volume fulfilled or subserviced for PMT $109bn Total Production Volume in UPB (1) $552bn Total Servicing Portfolio UPB (1) Investment Management AUM Operational Highlights Financial Results Capital Activity $2.0bn Net Income $476mm Diluted EPS $8.50 Growth in Book Value per Share 16% Return on Equity 14% $406mm Share Repurchases Cash Dividends $55mm $500mm Secured Long - Term D ebt R aised Operating discipline to right size capacity and reduce expenses drove strong financial performance in the challenging mortgage environment of 2022

![](tm235244d1_ex99-2img005.jpg)

5 ORIGINATION MARKET HAS DECLINED MEANINGFULLY U.S. Mortgage Origination Market (1) ($ in trillions) Mortgage Rates Remain High • Third party forecasts for 2023 originations range from $1.6 to $1.9 trillion, down meaningfully from 2022 originations ‒ Excess industry capacity established in recent years continues to be reduced by market participants, albeit at a slow pace • Mortgage banking companies with large servicing portfolios and diversified business models are better positioned to offset the decline in profitability that has resulted from decreased origination volumes and margins (1) Actual originations: Inside Mortgage Finance. F orecast originations: Average of Mortgage Bankers Association (1 /19/23) and Fannie Mae (1 /10/23) forecasts. (2) Freddie Mac Primary Mortgage Market Survey. 6.13 % as of 1/26/23. (3) Bloomberg: Difference between Freddie Mac Primary Mortgage Market Survey and the 30 - Year Fannie Mae or Freddie Mac Par Coupon (MTGEFNCL) Index. (2) (3) $1.5 $1.8 $1.5 $1.4 $2.6 $2.6 $0.7 $0.4 $4.1 $4.4 $2.2 $1.8 2020 2021 2022 2023E Purchase Refinance 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% Average 30-year fixed rate mortgage Primary/secondary spread

![](tm235244d1_ex99-2img006.jpg)

• Offering homeowners and title insurance to customers through joint ventures • Evaluating additional partnerships and revenue opportunities 6 • $1.2 billion in revenue from servicing and sub - servicing fees in 2022 • Higher short - term rates driving increased placement fee income • Cloud - based servicing system built for Pennymac's unique needs • Operational and cost efficiencies, as well as increased flexibility • Drives efficient lead generation for consumer direct • Purchase originations, new products, second liens • Loss mitigation expertise to assist consumers and minimize losses • Enhanced by flexible and proprietary servicing technology BENEFITS AND POTENTIAL VALUE FROM PENNYMAC'S LARGE AND GROWING SERVICING PORTFOLIO SERVICING PORTFOLIO Recurring Cash Flows Proprietary Technology New Production Opportunities Loss Mitigation Ancillary Products and Services 2.3M customers $5 52 B unpaid principal balance

![](tm235244d1_ex99-2img007.jpg)

4.7% 6.4% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% Average 30-year fixed rate mortgage $26.7 bn $26.0 bn $23.0 bn 2Q22 3Q22 4Q22 Total Production (UPB in billions) Pennymac's Total Production Volumes versus Average 30 - year Fixed Rate Mortgage FUTURE RECAPTURE OPPORTUNITIES ENHANCED BY RECENT PRODUCTION AT HIGHER RATES 7 • Pennymac , through its multi - channel production platform, has been one of the largest producers of mortgage loans over the last nine months as interest rates increased (1) ‒ Pennymac retains MSRs on nearly all mortgage loan production, driving continued organic portfolio growth ‒ UPB of production volume on a quarterly basis consistently represents 4 - 5% of the total servicing portfolio ‒ The majority of loans Pennymac produces a re originated at note rates consistent with the market (currently 5% or higher) • The continued addition of higher interest rate loans that PFSI services provides significant refinance opportunities for Consumer Direct if mortgage rates decline (1) Includes volume fulfilled for PMT (2) Freddie Mac Primary Mortgage Market Survey (2) (1) Average Note Rate: 4.41% Average Note Rate: 5.11% Average Note Rate: 5.85%

![](tm235244d1_ex99-2img008.jpg)

$465 $456 $356 $294 $259 AVG2021 1Q22 2Q22 3Q22 4Q22 Quarterly Operating Expenses (1) ($ in millions) 8 MEANINGFUL EXPENSE SAVINGS AND CAPACITY REDUCTIONS IN 2022 PFSI was proactive at aligning capacity to the anticipated decline in the origination market • Fourth quarter operating expenses (1) were down $206 million from average 2021 levels, or 44% • Pennymac remains disciplined and will continue to rapidly adjust capacity levels relative to the origination market, whether growing or contracting (1) Operating expenses excludes reversal of (provision for) losses on active loans, which averaged $13 million per quarter in 202 1, and totaled $33 million, $22 million, $3 million, and $(13) million in 1Q22, 2Q22, 3Q22, and 4Q22, respectively 44% reduction from average 2021 levels

![](tm235244d1_ex99-2img009.jpg)

$21.34 $26.26 $47.80 $60.11 $69.44 12/31/18 12/31/19 12/31/20 12/31/21 12/31/22 13% 22% 61% 29% 14% 2018 2019 2020 2021 2022 9 PFSI IS WELL - POSITIONED FOR CONTINUED EXECUTION IN 2023 AND BEYOND Book Value Per Share of PFSI Return on Equity (ROE) PFSI's ROE is projected to trend toward its pre - COVID range during 2023 (2) Multi - Channel Approach to Mortgage Production • Flexibility to adapt to different market conditions; drives consistent, organic servicing portfolio growth Large and Growing Servicing Portfolio • Significant cash flow generation; provides efficient leads to Consumer Direct channel Highly Scalable, Technology - Enabled Platform • Long history of developing and deploying innovative mortgage technology Successful Hedging of Mortgage Servicing Rights • Historically successful in moderating the impact of interest rate volatility on the fair value of MSRs Best - in - Class Management Team • 15 years of operations and 9 years as a publicly traded company with a total annualized return to stockholders of 15% since IPO (1) (1) Bloomberg : Through 1/31/23 (2) See Slide 24

![](tm235244d1_ex99-2img010.jpg)

PENNYMAC'S MARKET SHARE OVER TIME ACROSS ITS BUSINESSES 10 Loan Servicing Market Share (1) Correspondent Production Market Share (1) Consumer Direct Market Share (1) Broker Direct Market Share (1) Note: All figures are for PFSI and include volume fulfilled or subserviced for PMT (1) Historical market share estimates based on Inside Mortgage Finance. Inside Mortgage Finance estimates $2.2 billion in total o ri gination volume for the year ended 2022. For the year ended 2022, we estimate the correspondent channel represented 26% of th e overall origination market, retail represented 59%, and broker represented 15%. Loan servicing market share is based on PFSI's servicing portfolio UPB of $552 billion divided by an estimated $13.3 trillion in mortgage debt outstanding. 2.8% 3.3% 3.7% 4.1% 4.1% 12/31/18 12/31/19 12/31/20 12/31/21 12/31/22 0.5% 0.7% 0.9% 1.6% 1.2% 2018 2019 2020 2021 2022 0.3% 1.2% 2.1% 2.4% 2.0% 2018 2019 2020 2021 2022 11.8% 15.3% 17.7% 16.7% 15.3% 2018 2019 2020 2021 2022

![](tm235244d1_ex99-2img011.jpg)

11 PRODUCTION SEGMENT HIGHLIGHTS – VOLUME BY CHANNEL Consumer Direct (UPB in billions) Broker Direct (UPB in billions) January 2023 January 2023 January 2023 Note: Figures may not sum due to rounding (1) For government - insured loans, PFSI earns income from holding and selling or securitizing the loans (2) Includes loans fulfilled for PMT as well as loans for PFSI's own account. For loans fulfilled for PMT, PFSI earns a fulfillme nt fee from PMT rather than income from holding and selling or securitizing the loans (3) Includes locks related to PMT loan acquisitions as well as loans for which PFSI earns a fulfillment fee (4) Commitments to originate mortgage loans at specified terms at period end (1) (2) (3) Correspondent (UPB in billions) $4.3 $1.1 $0.6 $6.3 $1.2 $0.5 $10.6 $2.3 $1.1 $14.2 $3.8 $1.7 4Q21 3Q22 4Q22 Government loans Conventional loans Total locks $0.9 $0.4 $0.4 $2.8 $0.9 $0.8 $3.7 $1.3 $1.1 $3.9 $1.9 $2.0 4Q21 3Q22 4Q22 Government loans Conventional loans Total locks $15.7 $12.2 $10.1 $17.2 $10.2 $10.7 $32.8 $22.4 $20.8 $30.3 $23.0 $22.9 4Q21 3Q22 4Q22 Government loans Conventional loans Total locks Locks: (UPB in billions) $6.1 Locks: (UPB in billions) $0.7 Locks: (UPB in billions) $0.8 Acquisitions: (UPB in billions) $6.8 Originations: (UPB in billions) $0.2 Originations: (UPB in billions) $0.5 Committed pipeline (4) : (UPB in billions) $0.7 Committed pipeline (4) : (UPB in billions) $0.8

![](tm235244d1_ex99-2img012.jpg)

12 (1) Expected revenue net of direct origination costs at time of lock (2) Includes government - insured or guaranteed loans, as well as certain conventional loans for PFSI's own account in 4Q22 (3) Reflects timing of revenue and loan origination expense recognition, hedging, pricing & execution changes, and other items DRIVERS OF PRODUCTION SEGMENT RESULTS • Production revenue margins were lower in all channels ; revenue per fallout adjusted lock for PFSI's own account was 55 basis points in 4Q22, down from 3Q22 driven primarily by lower volumes in Consumer Direct • PFSI Correspondent includes $3.9 billion in UPB of lower margin conventional production from PMT which resulted in a reduction of margins in 4Q22 • Production expenses decreased 7% from the prior quarter while fallout adjusted locks were up 11% Fallout Adjusted Locks Margin / Fulfillment Fee (bps) (1) Revenue Contribution (net of Loan origination expense) % of Production Revenue Fallout Adjusted Locks Margin / Fulfillment Fee (bps) (1) Revenue Contribution (net of Loan origination expense) % of Production Revenue Fallout Adjusted Locks Margin / Fulfillment Fee (bps) (1) Revenue Contribution (net of Loan origination expense) % of Production Revenue PFSI Correspondent (2) 15,059$24 36.3$11% 12,014$24 29.4$17% 14,873$21 30.5$29% Consumer Direct 10,070 336 338.7 99% 2,140 366 78.3 46% 894 358 32.0 30% Broker Direct 3,155 68 21.4 6% 1,319 70 9.3 5% 1,466 56 8.2 8% Other (3) n/a n/a (75.6) -22% n/a n/a 35.7 21% n/a n/a 23.6 22% Total PFSI account revenues (net of Loan origination expense) 28,284$113 320.8$94% 15,473$99 152.7$89% 17,234$55 94.4$89% PMT Conventional Correspondent 13,991 14 20.2 6% 10,232 18 18.4 11% 6,683 18 12.2 11% Total Production revenues (net of Loan origination expense) 81 340.9$100% 67 171.1$100% 45 106.6$100% Production expenses (less Loan origination expense) 55 234.4$69% 52 132.5$77% 48 115.6$108% Production segment pretax income 25 106.5$31% 15 38.6$23% (4) (9.0)$-8% 4Q22 23,916$3Q22 25,705$4Q21 42,275$

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PRODUCTION SEGMENT HIGHLIGHTS – BUSINESS TRENDS BY CHANNEL 13 • Pennymac remains the largest correspondent aggregator in the U.S. • 772 correspondent sellers as of December 31, up slightly from 771 at September 30 • Purchase volume in 4Q22 was 93% of acquisitions, up from 90% in 3Q22 • Correspondent volume drives servicing portfolio growth while generating additional opportunities for consumer direct • Lower fulfillment fees Q/Q due to the purchase of certain conventional correspondent loans from PMT ‒ PFSI will continue such purchases in 1Q23 • Additional opportunities in the channel driven by the exit of Wells Fargo • Focused on meeting the changing needs of the 2.3 million customers in our servicing portfolio in a higher interest rate environment ‒ Purchase lock volume in 4Q22 was $681 million, or 40 % of total locks, compared to $1.37 billion, or 36% of total locks in 3Q22 ‒ $572 million or approximately 85% of total purchase locks sourced from our large and growing servicing portfolio ‒ $45 million of closed end second lien mortgage loans funded in 4Q22, up significantly from 3Q22 • Funding volumes were down from 3Q22 consistent with the overall market decline • Approved brokers totaled 2,684 a t December 31, 2022, or approximately 18% of the total population of brokers ‒ Large opportunity with approximately 15,000 brokers and non - delegated sellers active in the market • Purchase loans were 85% of total originations • Margins were lower than in the prior quarter as the channel remains highly competitive • Launch of POWER+, our next generation technology platform, combined with consolidation in the channel, has led to more brokers looking to expand their relationship with Pennymac CORRESPONDENT CONSUMER DIRECT BROKER DIRECT Multi - channel approach provides flexibility and has proven to be a competitive advantage, supporting profitability and pricing discipline while driving growth of the servicing portfolio

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$539.1 $551.7 ($10.4) $23.0 At 9/30/22 Runoff Additions from loan production At 12/31/22 SERVICING SEGMENT HIGHLIGHTS 14 • Servicing portfolio totaled $551.7 billion in UPB at December 31, 2022, up 2% Q/Q and 8% Y/Y • Production volumes more than offset prepayment activity, leading to continued portfolio growth • Slight increase in delinquency rates from the prior quarter, consistent with seasonal fluctuations • Modifications were down slightly from the prior quarter while EBO loan volumes remain low Loan Servicing Portfolio Composition (UPB in billions) Net Portfolio Growth (UPB in billions) (1) Owned portfolio is predominantly government - insured and guaranteed loans – see Appendix slide 29 for additional details. Delinqu ency data based on loan count (i.e., not UPB). CPR = Conditional Prepayment Rate. (2) Represents PMT's MSRs. Excludes distressed loan investments. (3) UPB of completed modifications includes loss mitigation efforts associated with partial claims programs (4) Early buyouts of delinquent loans from Ginnie Mae pools during the period (5) Also includes loans sold with servicing released in connection with any asset sales by PMT (6) Includes consumer and broker direct production, government and conventional correspondent acquisitions , and conventional conforming and jumbo loan acquisitions subserviced for PMT (5) (6) 3Q22 4Q22 Loans serviced (in thousands) 2,221 2,261 60+ day delinquency rate - owned portfolio (1) 3.5% 3.8% 60+ day delinquency rate - sub-serviced portfolio (2) 0.5% 0.6% Actual CPR - owned portfolio (1) 9.0% 5.4% Actual CPR - sub-serviced (2) 6.9% 4.4% UPB of completed modifications ($ in millions) (3) $2,377 $2,349 EBO loan volume ($ in millions) (4) $250 $307 Selected Operational Metrics $509.7 $539.1 $551.7 12/31/21 9/30/22 12/31/2022 Prime owned Prime subserviced and other

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SERVICING PROFITABILITY EXCLUDING VALUATION - RELATED CHANGES 15 (1) Of average portfolio UPB, annualized (2) Comprised of net gains on mortgage loans held for sale at fair value and interest income related to EBO loans (3) Consists of interest shortfall and recording and release fees (4) Changes in fair value do not include realization of MSR cash flows (5) Considered in the assessment of MSR fair value changes • Loan servicing fees increased from the prior quarter due to continued portfolio growth; operating expenses declined driven pr ima rily by expense management activities and seasonal impacts • Earnings on custodial balances and deposits increased $17 million from the prior quarter – Custodial funds managed for PFSI's owned servicing portfolio totaled $3.3 billion at December 31, 2022 – Quarter over quarter decline in balances driven largely by seasonal property tax payments – Earnings rate generally fluctuates with changes in the Federal Funds rate • EBO loan - related revenue decreased $14 million from the prior quarter and is expected to remain low for a period of time $ in millions basis points (1) $ in millions basis points (1) $ in millions basis points (1) Loan servicing fees 287.8$22.9 313.1$23.5 321.9$23.6 Earnings on custodial balances and deposits and other income 8.8 0.7 43.8 3.3 60.8 4.5 Realization of MSR cash flows (97.0) (7.7) (141.8) (10.6) (148.8) (10.9) EBO loan-related revenue (2) 206.0 16.4 36.3 2.7 21.9 1.6 Servicing expenses: Operating expenses (106.6) (8.5) (108.7) (8.2) (93.8) (6.9) Payoff-related expense (3) (33.0) (2.6) (10.0) (0.7) (9.0) (0.7) Losses and provisions for defaulted loans (13.6) (1.1) (12.8) (1.0) (14.1) (1.0) EBO loan transaction-related expense (3.9) (0.3) (0.2) (0.0) (0.1) (0.0) Interest expense (30.6) (2.4) (50.2) (3.8) (59.7) (4.4) Pretax income excluding valuation-related changes 217.9$17.3 69.6$5.2 79.1$5.8 Valuation-related changes MSR fair value (4) (58.4) 237.2 82.6 Hedging derivatives gains (losses) (37.7) (164.7) (72.9) Provision for losses on active loans (5) 4.3 3.2 (13.2) Servicing segment pretax income 126.1$145.3$75.6$ Average servicing portfolio UPB 503,176$532,861$545,367$4Q21 4Q223Q22

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($58.4) $237.2 $82.6 ($37.7) ($164.7) ($72.9) $106.5 $38.6 ($9.0) 4Q21 3Q22 4Q22 MSR fair value change before recognition of realization of cash flows Hedging and related gains (declines) Production pretax income 16 HEDGING APPROACH MODERATES THE VOLATILITY OF PFSI'S RESULTS MSR Valuation Changes and Offsets ($ in millions) • PFSI seeks to moderate the impact of interest rate changes on the fair value of its MSR asset through a comprehensive hedge strategy that also considers production - related income • In 4Q22, MSR fair value increased slightly (1) – Realized prepayment speeds were lower than expected – E xpectations for lower prepayment activity in the future • Largely o ffset by hedging and other losses – Primarily driven by hedge costs and higher interest rates (1) Before recognition of realization of cash flows

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6.7% 15.4% 14.0% 12.0% 9.5% 8.0% 7.2% 5.8% 5.0% 5.0% 5.5% 6.1% 3/31/20 6/30/20 9/30/20 12/31/20 3/31/21 6/30/21 9/30/21 12/31/21 3/31/22 6/30/22 9/30/22 12/31/22 30-60 Days 60-90 Days 90+ Days In Foreclosure • Overall mortgage delinquency rates increased from the prior quarter but remain below pre - pandemic levels • Servicing advances outstanding for PFSI's MSR portfolio increased to approximately $520 million at December 31, 2022 from $397 million at September 30, 2022 due to seasonal property tax payments – No P&I advances are outstanding, as prepayment activity continues to sufficiently cover remittance obligations HISTORICAL TRENDS IN DELINQUENCIES AND ADVANCES 17 Historical Trends in Delinquency and Foreclosure Rates (1) (1) Owned MSR portfolio. Delinquency and foreclosure rates based on UPB. As of 12/31/22, the UPB of mortgage servicing rights own ed totaled $318 billion.

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INVESTMENT MANAGEMENT SEGMENT HIGHLIGHTS 18 • Net AUM as of December 31, 2022 were $2.0 billion, down 3% from September 30, 2022 and 17 % from December 31, 2021 ‒ Decrease in AUM primarily due to PMT's financial performance • Investment Management segment revenues were $9.9 million, down 4 % from 3Q22 and 5 % from 4Q21 Investment Management AUM ($ in billions) Investment Management Revenues ($ in millions) $2.4 $2.0 $2.0 12/31/21 9/30/22 12/31/22 $10.5 $10.4 $9.9 4Q21 3Q22 4Q22 Base management fees & other revenue

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APPENDIX

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In August 2022, the Federal Housing Finance Agency (FHFA) and Ginnie Mae released updated eligibility standards for non - bank seller/servicers with a proposed effective date for most requirements of September 30, 2023 • PennyMac Loan Services, LLC (PLS), the entity at which these standards are applicable, is a subsidiary of PFSI and is approve d a s a seller/servicer of mortgage loans by Fannie Mae and Freddie Mac and as an issuer of securities guaranteed by Ginnie Mae PFSI IS WELL IN EXCESS OF PROSPECTIVE REGULATORY CAPITAL AND LIQUIDITY REQUIREMENTS 20 New GNMA Eligibility Requirements (Pro - Forma) New FHFA Eligibility Requirements (Pro - Forma) Capital Liquidity Capital Ratios (1) Risk - based Capital Ratio. GNMA has extended the mandatory implementation date of the RBC requirement to December 31, 2024. As of Decem ber 31, 2022 (in millions) (1) 6% 36% Requirement PLS 6% 37% 52% Requirement PLS RBCR PLS Leverage Ratio $340 $2,041 Requirement PLS $1,045 $6,170 Requirement PLS $1,101 $6,170 Requirement PLS $476 $1,556 Requirement PLS

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21 PENNYMAC IS AN ESTABLISHED LEADER IN THE U.S. MORTGAGE MARKET WITH SUBSTANTIAL LONG - TERM GROWTH POTENTIAL $552 billion outstanding IN SER VIC ING (2) YEARS FOR PFSI AS A PUBLIC COMPANY 9 15 YEARS OF OPERATIONS PMT # 3 • CORRESPONDENT PRODUCTION • CONSUMER DIRECT • BROKER DIRECT IN PRODUCTION (1) IS A LEADING RESIDENTIAL MORTGAGE REIT # 6 Note: All figures are for PFSI and include volume fulfilled or subserviced for PMT. All figures are as of 12/31/22 unless oth erw ise noted. (1) Inside Mortgage Finance for the full year 2022 (2) Inside Mortgage Finance as of 9/30/22 $2.0 billion in assets under management 13 - year track record 2.3 million customers $109 billion in 2022

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OVERVIEW OF PENNYMAC FINANCIAL'S BUSINESSES 22 LOAN PRODUCTION Correspondent aggregation of newly originated loans from third - party sellers - PFSI earns gains on delegated government - insured and non - delegated loans - Fulfillment fees for PMT's delegated conventional loans Consumer direct origination of conventional and government - insured loans Broker direct origination launched in 2018 LOAN SERVICING Servicing for owned MSRs and subservicing for MSRs owned by PMT Major loan servicer for Fannie Mae, Freddie Mac and Ginnie Mae Industry - leading capabilities in special servicing Organic growth results from loan production, supplemented by MSR acquisitions and PMT investment activity INVESTMENT MANAGEMENT External manager of PMT, which invests in mortgage - related assets: - GSE credit risk transfer investments - MSR investments - Investments in prime non - agency MBS and asset - backed securities Synergistic partnership with PMT Complex and highly regulated mortgage industry requires effective governance, compliance and operating systems Operating platform has been developed organically and is highly scalable Commitment to strong corporate governance, compliance and risk management since inception PFSI is well - positioned to navigate the current market and regulatory environment

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23 PFSI'S BALANCED BUSINESS MODEL IS A FLYWHEEL • Diversified business through correspondent, consumer direct and broker direct channels • Correspondent and broker direct channels in particular allow PFSI to access purchase - money volume • Lacks the fixed overhead of the traditional, retail origination model • Recurring fee income business captured over the life of the loan • With higher interest rates, expected life of the loan increases resulting in a more valuable MSR asset • Creates a natural hedge to production income Customer base of 2.3 million drives leads for consumer direct Large volumes of production grow servicing portfolio Loan Production 3 rd largest in the U.S. (1) Loan Servicing 6 th largest in the U.S. (2) In both businesses, scale and efficiency are critical for success Note: All figures are for PFSI and include volume fulfilled or subserviced for PMT (1) Inside Mortgage Finance for the full year 2022 (2) Inside Mortgage Finance as of 9/30/22

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48% 75% 64% 61% 73% 80% 63% 40% 45% 73% 40% 58% 53% 49% 63% 71% 54% 36% 42% 67% 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 PFSI Purchase Mix Industry Purchase Mix 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 10-Year Treasury Yield 11% 19% 20% 22% 26% 13% 22% 61% 29% 14% 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 PFSI's Annualized Return on Average Common Stockholders' Equity (ROE) Proven ability to generate attractive ROEs… 24 PFSI'S TRACK RECORD ACROSS VARIOUS MARKET ENVIRONMENTS IS UNIQUE AMONG INDEPENDENT MORTGAGE BANKS …across different market environments… …with a strong orientation towards purchase money mortgages. (1) Represents partial year. Initial Public Offering was May 8, 2013. (2) Inside Mortgage Finance (3) Bloomberg (4) Inside Mortgage Finance for historical data. Industry purchase mix for 4 Q22 represents the average of Mortgage Bankers Association (1/19/23) and Fannie Mae (1/10/23) estimates . (1) (2) (3) (4) Average: 24% $1.8 $1.3 $1.7 $2.1 $1.8 $1.6 $2.3 $4.1 $4.4 $2.2 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 U.S. Origination Market (in trillions)

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$1,800mm $1,800mm $1,750mm Senior Unsecured Notes Secured Term Notes Secured Revolving Bank Financing Lines $500mm GNMA MSR Term Notes due May 2027 PFSI'S STRONG BALANCE SHEET AND DIVERSE CAPITAL STRUCTURES 25 Low Debt - to - Equity Ratio Diverse Financing Sources High TNW (1) /Assets • Tangible net worth (TNW) / assets excluding loans eligible for repurchase has increased due to growth in stockholders' equity and a reduction in balances of loans held for sale at fair value from peak levels $650mm GNMA MSR Term Notes due February 2025 $650mm GNMA MSR Term Notes due August 2023 $500mm 5.750% due September 2031 $650mm 4.250% due February 2029 $650mm 5.375% due October 2025 • Targeted debt - to - equity ratio near or below 3.5x with fluctuations largely driven by the origination environment or other market opportunities • Non - funding debt - to - equity has historically remained near or below 1.0x • Senior unsecured notes provide low, fixed interest rates; more than 3 - years until first maturity • Secured term notes due February 2023 were extended for 2 years; secured term notes due in August 2023 contain the ability to extend the maturity for 2 - years at PFSI's discretion • Secured revolving bank financing lines provide flexibility to finance fluctuating MSR and advance balances MSR & Servicing Advance Financing Financing capacity across multiple banks Note: All figures are as of December 31, 2022 (1) Tangible net worth excludes capitalized software $250 mm drawn 22% 20% 10% 18% 20% 25% 22% 19% 21% 27% 12/31/18 12/31/19 12/31/20 12/31/21 12/31/22 Tangible Net Worth / Assets Tangible Net Worth / Assets ex. Loans eligible for repurchase 0.9x 0.7x 0.6x 0.9x 1.1x 2.4x 3.0x 3.6x 3.2x 2.0x 12/31/18 12/31/19 12/31/20 12/31/21 12/31/2022 Non-funding debt-to-equity Total debt-to-equity

![](tm235244d1_ex99-2img026.jpg)

PENNYMAC HAS DEVELOPED IN A SUSTAINABLE MANNER FOR LONG - TERM SUCCESS 26 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Operations launched; de novo build of legacy - free mortgage servicer Raised $500 million of capital in private opportunity funds PMT formed in an initial public offering raising $320 million Correspondent group established with a focus on operations development and process design Added servicing leadership for prime portfolio and to drive scalable growth Correspondent system launches Expanded infrastructure with flagship operations facility in Moorpark, CA Correspondent leadership team expands Expanded infrastructure in Tampa, FL Became largest non - bank correspondent aggregator PFSI completed initial public offering Expanded infrastructure in Fort Worth, TX Continued organic growth and servicing portfolio UPB reaches $100 billion (1) PFSI stockholders' equity surpasses $1 billion Substantial growth in PFSI's consumer direct capacity PFSI issued MSR - backed term notes PFSI launched broker - direct lending channel PFSI completes corporate reorganization Achieved position as the largest correspondent aggregator in the U.S. PFSI launched proprietary, cloud - based Servicing Systems Environment (SSE) Record production volumes across all channels; nearly $200 billion in UPB (1) PFSI issued inaugural $650 million of unsecured Senior Notes PFSI issued an additional $1.15 billion of unsecured Senior Notes Servicing portfolio surpasses 2 million customers (1) (1) All figures are for PFSI and include volume fulfilled or subserviced for PMT • Disciplined growth to address the demands of the GSEs, Agencies, regulators and our financing partners ‒ Since inception, PennyMac has focused on building and testing processes and systems before adding significant transaction vol ume s • Highly experienced management team has created a robust corporate governance system centered on compliance, risk management a nd quality control 2022 Launched "Greatness Lives Here" brand marketing campaign celebrating home as the foundation for achieving life's aspirations

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2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% Average 30 - year fixed rate mortgage (1) 6.70% 3.83% CURRENT MARKET ENVIRONMENT AND MACROECONOMIC TRENDS 27 Macroeconomic Metrics (3) Footnotes (1) Freddie Mac Primary Mortgage Market Survey. 6.13% as of 1/26/23 (2) U.S. Department of the Treasury. 3.49% as of 1/26/23 (3) 10 - year Treasury bond yield and 2/10 year Treasury yield spread: Bloomberg. Average 30 - year fixed rate mortgage: Freddie Mac Primary Mortgage Market Survey. Average secondary mortgage rate: 30 - Year FNCL Par Coupon Index (MTGEFNCL), Bloomberg. U.S. home price appreciation: S&P CoreLogic Case - Shiller U.S. National Home Price NSA Index (SPCSUSA). Data is as of 11/30/22 Residential mortgage originations are for the quarterly period ended. Source: Inside Mortgage Finance. 10 - year Treasury Bond Yield (2) 3.87% 6.42% 12/31/21 3/31/22 6/30/22 9/30/22 12/31/22 10-year Treasury bond yield 1.5% 2.3% 3.0% 3.8% 3.9% 2/10 year Treasury yield spread 0.8% 0.0% 0.1% -0.5% -0.7% 30-year fixed rate mortgage 3.1% 4.7% 5.7% 6.7% 6.4% Secondary mortgage rate 2.1% 3.5% 4.4% 5.6% 5.3% U.S. home price appreciation (Y/Y % change) 18.8% 20.6% 19.7% 13.0% 7.7% Residential mortgage originations (in billions) $995 $725 $650 $505 $335

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28 MSR ASSET VALUATION (1) Weighted average Mortgage Servicing Rights Pool UPB $314,568 Coupon (1) 3.4% Servicing fee/spread (1) 0.36% Prepayment speed assumption (CPR) (1) 7.5% Fair value $5,953.6 As a multiple of servicing fee 5.20 December 31, 2022 Unaudited ($ in millions)

![](tm235244d1_ex99-2img029.jpg)

29 PFSI'S OWNED MSR PORTFOLIO CHARACTERISTICS (1) Government loans include loans securitized in Ginnie Mae pools as well as loans sold to private investors (2) Other represents MSRs collateralized by conventional loans sold to private investors Segment UPB ($ in billions) % of Total UPB Loan Count (in thousands) Note Rate Age (months) Maturity (months) Loan Size ($ in thousands) FICO Credit Score at origination Original LTV Current LTV 60+ Delinquency (by UPB) Government (1) FHA $118.0 37.5% 613 3.7% 42 321 $193 674 93% 67% 5.6% VA $113.8 36.2% 423 3.2% 26 332 $269 724 90% 72% 2.3% USDA $21.3 6.8% 144 3.6% 43 320 $148 698 98% 68% 5.2% GSE FNMA $29.2 9.3% 106 3.3% 24 306 $275 760 69% 56% 0.5% FHLMC $31.8 10.1% 112 3.4% 16 316 $282 753 71% 61% 0.4% Other (2) Other $0.6 0.2% 2 3.7% 15 334 $311 765 65% 59% 0.1% Grand Total $314.6 100.0% 1,400 3.4% 32 323 $225 710 88% 67% 3.3% As of December 31, 2022

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ACQUISITIONS AND ORIGINATIONS BY PRODUCT 30 Acquisitions/Originations Note: Figures may not sum exactly due to rounding Unaudited ($ in millions) 4Q21 1Q22 2Q22 3Q22 4Q22 Correspondent Acquisitions Conventional Conforming - for PMT 17,157$9,768$10,320$10,225$6,771$ Conventional Conforming - for PFSI - - - - 3,912 Government 15,651 12,730 10,649 12,161 10,081 Jumbo - 1 3 2 - Total 32,808$22,500$20,973$22,387$20,764$ Consumer Direct Originations Conventional Conforming 6,311$4,553$2,246$1,198$489$ Government 4,289 3,669 1,492 1,130 572 Jumbo - - 5 2 4 Closed-end second liens - - - 1 45 Total 10,600$8,222$3,744$2,330$1,110$ Broker Direct Originations Conventional Conforming 2,823$1,979$1,556$909$758$ Government 860 560 396 384 362 Jumbo - 2 24 5 7 Total 3,684$2,541$1,976$1,298$1,126$ Total acquisitions/originations 47,092$33,262$26,693$26,016$23,000$ UPB of loans fulfilled for PMT (included in correspondent acquisitions) 17,157$9,768$10,324$10,227$6,771$

![](tm235244d1_ex99-2img031.jpg)

INTEREST RATE LOCKS BY PRODUCT 31 Note: Figures may not sum exactly due to rounding Interest Rate Lock Commitments Unaudited ($ in millions) 4Q21 1Q22 2Q22 3Q22 4Q22 Correspondent Locks Conventional Conforming - for PMT 14,717$10,194$11,080$10,647$7,507$ Conventional Conforming - for PFSI - - - - 4,747 Government 15,544 12,487 11,326 12,351 10,681 Jumbo - - 3 2 7 Total 30,261$22,682$22,410$22,999$22,941$ Consumer Direct Locks Conventional Conforming 8,264$5,242$2,511$1,892$700$ Government 5,937 3,861 1,804 1,889 885 Jumbo - 8 11 14 6 Closed-end second liens - - - 10 93 Total 14,200$9,112$4,326$3,804$1,684$ Broker Direct Locks Conventional Conforming 2,884$2,732$1,663$1,236$1,338$ Government 984 784 535 622 656 Jumbo - 10 21 6 20 Total 3,867$3,527$2,220$1,865$2,014$ Total locks 48,329$35,320$28,956$28,668$26,639$

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CREDIT CHARACTERISTICS BY ACQUISITION/ORIGINATION PERIOD 32 Correspondent Consumer Direct Broker Direct 4Q21 1Q22 2Q22 3Q22 4Q22 4Q21 1Q22 2Q22 3Q22 4Q22 Government-insured 693 691 682 680 690 Government-insured 42 43 43 45 46 Conventional 750 750 753 758 756 Conventional 36 36 37 38 39 4Q21 1Q22 2Q22 3Q22 4Q22 4Q21 1Q22 2Q22 3Q22 4Q22 Government-insured 704 708 700 680 680 Government-insured 40 40 42 43 44 Conventional 742 738 727 724 728 Conventional 34 35 37 37 38 4Q21 1Q22 2Q22 3Q22 4Q22 4Q21 1Q22 2Q22 3Q22 4Q22 Government-insured 720 702 694 679 676 Government-insured 44 43 44 45 46 Conventional 755 754 757 759 756 Conventional 35 36 37 37 38 Weighted Average FICO Weighted Average DTI Weighted Average FICO Weighted Average DTI Weighted Average FICO Weighted Average DTI

![](tm235244d1_ex99-2img033.jpg)

ADJUSTED EBITDA RECONCILED TO NET INCOME 33 ($ in millions) 4Q21 3Q22 4Q22 Net income 173.1$135.1$37.6$ Provision for income taxes 61.0 50.3 30.1 Income before provisions for income taxes 234.1 185.5 67.7 Depreciation and amortization 6.9 9.4 10.6 Decrease (increase) in fair value of MSRs and MSLs due to changes in valuation inputs used in the valuation model 58.4 (237.2) (82.6) Hedging losses associated with MSRs 37.7 164.7 72.9 Stock-based compensation 9.1 6.5 11.9 Interest expense on corporate debt and capital base 24.0 23.9 23.9 Adjusted EBITDA 370.3$152.9$104.4$

![](tm235244d1_ex99-2img034.jpg)