PennyMac Financial Services, Inc. (NYSE: PFSI) posts weaker Q2 2026 earnings
Rhea-AI Filing Summary
PennyMac Financial Services reported second quarter 2026 net income of $22 million, or $0.41 in diluted EPS, on total net revenues of $497 million. Adjusted net income was $74 million, or $1.39 in adjusted diluted EPS, on adjusted net revenues of $566 million, with annualized ROE at 2% and annualized adjusted ROE at 7%. The board declared a $0.30 per share cash dividend, payable August 27, 2026 to stockholders of record on August 17, 2026.
Production segment pretax income was $38 million, down 71% from $134 million in the prior quarter, as total fallout adjusted locks declined to $31.5 billion and a $36 million adverse post-lock market impact reduced revenue. Servicing pretax income was $22 million, while pretax income excluding valuation-related items rose to $99 million from $57 million in the prior quarter as servicing revenues excluding valuation-related items reached $369 million and the owned servicing portfolio grew to $488 billion of unpaid principal balance within a total servicing portfolio of $731 billion. Corporate and other recorded a pretax loss of $29 million. Book value per share was $83.49 and liquidity totaled $4,010 million, and management highlighted cost-structure realignment, technology investment and onboarding of Cenlar’s subservicing portfolio.
Positive
- None.
Negative
- GAAP profitability weakened significantly, with second quarter 2026 net income of $22 million and diluted EPS of $0.41, down from $136 million and $2.54 a year earlier, and annualized ROE falling to 2% from 14%.
- Core mortgage banking earnings declined, as production segment pretax income fell to $38 million from $134 million in the prior quarter and servicing segment MSR and hedging-related losses widened to $77 million from $44 million.
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mortgage servicing rights financial
fallout adjusted locks financial
recapture rate financial
non-GAAP financial
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
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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) |
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| 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 | ||
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 | Results of Operations and Financial Condition. |
On July 29, 2026, PennyMac Financial Services, Inc. (the “Company”) issued a press release and a slide presentation announcing its financial results for the fiscal quarter ended June 30, 2026. Copies of the press release and the slide presentation used in connection with the Company’s presentation of financial results were made available on July 29, 2026 and are furnished as Exhibit 99.1 and Exhibit 99.2, respectively. In addition, the Company has made other supplemental financial information for the fiscal quarter ended June 30, 2026 available on its website at pfsi.pennymac.com.
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 Section 18 liabilities, 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 document.
| Item 9.01 | Financial Statements and Exhibits. |
(d) Exhibits.
| Exhibit No. | Description |
| 99.1 | Press Release, dated July 29, 2026, issued by PennyMac Financial Services, Inc. pertaining to its financial results for the fiscal quarter ended June 30, 2026. |
| 99.2 | Slide Presentation for use beginning on July 29, 2026 in connection with a presentation of financial results for the fiscal quarter ended June 30, 2026. |
| 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: July 29, 2026 | /s/ Daniel S. Perotti |
| Daniel S. Perotti | |
| Senior Managing Director and Chief Financial Officer |
Exhibit 99.1
PennyMac Financial Services, Inc. Reports
Second Quarter 2026 Results
WESTLAKE VILLAGE, Calif. – July 29, 2026 – PennyMac Financial Services, Inc. (NYSE: PFSI) today reported net income of $22 million, or $0.41 in diluted earnings per share (EPS), on total net revenues of $497 million for the second quarter of 2026. Adjusted net income was $74 million, or $1.39 in adjusted diluted EPS, on adjusted net revenues of $566 million1. PFSI’s Board of Directors declared a second quarter cash dividend of $0.30 per share, payable on August 27, 2026, to common stockholders of record as of August 17, 2026.
CEO Commentary
“PennyMac Financial generated a 2% annualized return on equity and a 7% annualized adjusted return on equity1 in the second quarter,” said Chairman and CEO David Spector. “While our operational execution remained solid, our results fell short of expectations due to higher interest rates during the period. As a result, we are actively taking steps to realign our cost structure to enhance profitability.”
Mr. Spector continued, “Additionally, ongoing investments in technology are providing the structural leverage required to streamline our production division and lower our cost-to-produce without compromising capacity or the customer experience. Importantly, our recapture rates improved meaningfully in the second quarter, positioning us to capture significant upside when the origination market expands. As we onboard Cenlar’s subservicing portfolio, our tech-enabled efficiency and massive scale are expected to allow us to realize substantial operating leverage. We believe this fee-based revenue stream is a key component that will help us achieve our long-term ROE targets.”
The table below highlights key financial performance metrics1:
| ($ in millions except per share metrics) | 2Q26 | 1Q26 | 2Q25 | Q/Q | Y/Y | |||||||||||||||
| Total net revenues | 497 | 545 | 445 | (9 | )% | 12 | % | |||||||||||||
| Net income | 22 | 82 | 136 | (74 | )% | (84 | )% | |||||||||||||
| Diluted EPS | $ | 0.41 | $ | 1.53 | $ | 2.54 | (73 | )% | (84 | )% | ||||||||||
| Annualized return on equity (ROE) | 2 | % | 8 | % | 14 | % | (6 | )% | (12 | )% | ||||||||||
| Adjusted net revenues | 566 | 589 | 537 | (4 | )% | 5 | % | |||||||||||||
| Adjusted net income | 74 | 118 | 124 | (37 | )% | (40 | )% | |||||||||||||
| Adjusted diluted EPS | $ | 1.39 | $ | 2.19 | $ | 2.31 | (37 | )% | (40 | )% | ||||||||||
| Annualized adjusted ROE | 7 | % | 11 | % | 13 | % | (4 | )% | (6 | )% | ||||||||||
| Book value per share | $ | 83.49 | $ | 83.31 | $ | 78.04 | 0 | % | 7 | % | ||||||||||
| Cash dividends declared per common share | $ | 0.30 | $ | 0.30 | $ | 0.30 | -- | -- |
1 Items labeled as “adjusted” are non-GAAP financial measures. See pages 9 and 10 for a reconciliation of GAAP net income to adjusted net income, adjusted diluted EPS and annualized adjusted return on equity, as well as for a reconciliation of GAAP total net revenue to adjusted net revenues.
1
Key Operating and Financial Metrics
| · | Annualized ROE was 2%, down from 14% in the second quarter of 2025 |
| · | Annualized adjusted ROE was 7%2, down from 13% in the second quarter of 2025 |
| · | Total loan acquisitions and originations were $34.9 billion in unpaid principal balance (UPB), down 8% from the second quarter of 2025 |
| ○ | Consumer direct originations were $5.6 billion in UPB, up 103% from the second quarter of 2025 |
| · | Production revenue margins3 were 77 basis points of total fallout adjusted lock volume, up from 55 basis points in the second quarter of 2025; production segment pretax income was $38 million, down from $58 million in the second quarter of 2025 |
| · | Owned servicing portfolio totaled $488 billion in UPB at June 30, 2026, up 5% from June 30, 2025 |
| · | Servicing segment pretax income was $22 million, down from $54 million in the second quarter of 2025; pretax income excluding valuation-related changes was $99 million, up from $57 million in the prior quarter and down from $146 million in the second quarter of 2025 |
| · | Pretax loss from Corporate and other was $29 million, compared to $35 million in the second quarter of 2025 |
| · | Book value per share was $83.49 at June 30, 2026, up 7% from June 30, 2025 |
Business Highlights
| · | Our new consumer direct loan origination system has facilitated a rapid implementation of process-automating AI agents, including the launch of a proprietary Natural Language Virtual Agent (NLVA) across both outbound and inbound calls |
| · | Conventional first-lien refinance recapture rates increased 7 percentage points from the prior quarter to 29% and government first-lien recapture rates increased 9 percentage points from the prior quarter to 59% |
| · | Continued to make progress on the acquisition of Cenlar’s subservicing business and expect the transaction to close in the fourth quarter |
| · | Expanded our strategic partnership with Amazon Web Services to further bolster our transformation as an AI-driven mortgage technology leader |
Guidance
| · | With a smaller projected origination market due to higher interest rates, we expect adjusted ROEs to remain in the high single digits through 2026 as we reduce our expense base |
2 See page 9 for a reconciliation of GAAP net income to annualized adjusted return on equity
3 Presented net of loan origination expense
2
Production Segment Highlights
The table below highlights key operating metrics and financial performance in the production segment:
| 2Q26 | 1Q26 | 2Q25 | Q/Q | Y/Y | ||||||||||||||||
| Volume ($ UPB in billions) | ||||||||||||||||||||
| Total fallout adjusted locks | 31.5 | 38.0 | 38.6 | (17 | )% | (18 | )% | |||||||||||||
| Consumer Direct | 4.5 | 6.6 | 2.4 | (32 | )% | 87 | % | |||||||||||||
| Broker Direct | 6.5 | 7.1 | 5.4 | (8 | )% | 21 | % | |||||||||||||
| Correspondent | 20.5 | 24.3 | 30.8 | (16 | )% | (33 | )% | |||||||||||||
| Total acquisitions and originations | 34.9 | 37.0 | 37.9 | (6 | )% | (8 | )% | |||||||||||||
| Government loan first lien refinance recapture rate(1) | 59 | % | 50 | % | 44 | % | 9 | % | 15 | % | ||||||||||
| Conventional loan first lien refinance recapture rate(1) | 29 | % | 22 | % | 17 | % | 7 | % | 12 | % | ||||||||||
| Profitability ($ in millions) | ||||||||||||||||||||
| Revenues(2) | 243 | 327 | 211 | (26 | )% | 15 | % | |||||||||||||
| Expenses(2) | 205 | 194 | 153 | 6 | % | 34 | % | |||||||||||||
| Pretax income | 38 | 134 | 58 | (71 | )% | (33 | )% | |||||||||||||
| Revenues(2) as basis points of fallout adjusted locks | 77 | 86 | 55 | (9 | ) | 23 | ||||||||||||||
| Pretax income as basis points of fallout adjusted locks | 12 | 35 | 15 | (23 | ) | (3 | ) |
May not sum due to rounding
(1) Numerator = UPB of new consumer direct first lien refinance originations for existing portfolio customers; denominator = UPB of payoffs with no transfer of title or MLS listing identified
(2) Presented net of loan origination expense
Consumer direct fallout adjusted lock volumes were $4.5 billion in UPB, down from $6.6 billion in the prior quarter and up from $2.4 billion in the second quarter of 2025. The decrease from the prior quarter was driven by lower refinance volumes due to higher rates, and the increase from the second quarter of 2025 was driven by increased refinance activity and higher refinance recapture rates. Broker direct fallout adjusted lock volumes were $6.5 billion in UPB, down from $7.1 billion in the prior quarter and up from $5.4 billion in the second quarter of 2025. The increase from the second quarter of 2025 was driven by market share gains and a larger origination market. Correspondent fallout adjusted lock volumes were $20.5 billion in UPB, down from $24.3 billion in the prior quarter and $30.8 billion in the second quarter of 2025, both as a result of a highly competitive environment.
Production segment pretax income was $38 million, down from $134 million in the prior quarter and $58 million in the second quarter of 2025.
Revenues net of loan origination expenses were $243 million, down from $327 million in the prior quarter and up from $211 million in the second quarter of 2025. The decline from the prior quarter was primarily driven by lower volumes in the consumer direct and correspondent channels, and a $36 million adverse shift in post-lock impacts driven by market price changes on specialized pools and other cross-channel impacts.
3
Expenses net of loan origination expenses were $205 million, up from $194 million in the prior quarter and $153 million in the second quarter of 2025. The increase from the prior quarter was due to higher capacity and funded unit volume in the consumer direct lending channel.
Servicing Segment Highlights
The table below highlights key operating metrics and financial performance in the servicing segment:
| 2Q26 | 1Q26 | 2Q25 | Q/Q | Y/Y | ||||||||||||||||
| Servicing portfolio | ||||||||||||||||||||
| Total UPB ($ in billions, at period end) | 731 | 720 | 700 | 1 | % | 4 | % | |||||||||||||
| Owned servicing | 488 | 474 | 463 | 3 | % | 5 | % | |||||||||||||
| Subservicing | 235 | 237 | 230 | (1 | )% | 2 | % | |||||||||||||
| Loans held for sale | 8 | 10 | 7 | (22 | )% | 13 | % | |||||||||||||
| Actual CPR (owned portfolio) | 11.6 | % | 13.7 | % | 8.5 | % | (2.1 | )% | 3.1 | % | ||||||||||
| 60+ Day Delinquency (owned portfolio, at period end) | 4.1 | % | 4.2 | % | 3.2 | % | (0.1 | )% | 0.9 | % | ||||||||||
| Profitability (in millions)(1) | ||||||||||||||||||||
| Loan servicing fees | 536 | 532 | 507 | 1 | % | 6 | % | |||||||||||||
| Earnings on custodial balances and deposits and other income | 119 | 105 | 116 | 13 | % | 2 | % | |||||||||||||
| Realization of mortgage servicing rights (MSR) cash flows | (323 | ) | (355 | ) | (263 | ) | (9 | )% | 23 | % | ||||||||||
| EBO loan-related income(2) | 37 | 34 | 32 | 9 | % | 15 | % | |||||||||||||
| Revenues excluding valuation-related items | 369 | 316 | 392 | 17 | % | (6 | )% | |||||||||||||
| Operating expenses | 76 | 81 | 77 | (6 | )% | (2 | )% | |||||||||||||
| Payoff-related expenses(3) | 29 | 31 | 17 | (8 | )% | 66 | % | |||||||||||||
| Credit losses and provisions for defaulted loans | 26 | 23 | 22 | 13 | % | 19 | % | |||||||||||||
| Interest expense | 140 | 125 | 130 | 12 | % | 8 | % | |||||||||||||
| Expenses excluding valuation-related items | 270 | 260 | 246 | 4 | % | 10 | % | |||||||||||||
| Pretax income excluding valuation-related items | 99 | 57 | 146 | 75 | % | (32 | )% | |||||||||||||
| MSR fair value changes | 118 | 183 | 16 | N/M | N/M | |||||||||||||||
| Hedging results(4) | (187 | ) | (221 | ) | (112 | ) | N/M | N/M | ||||||||||||
| (Provision for) reversal of losses on active loans | (8 | ) | (6 | ) | 4 | N/M | N/M | |||||||||||||
| Valuation-related items | (77 | ) | (44 | ) | (92 | ) | N/M | N/M | ||||||||||||
| Pretax income | 22 | 13 | 54 | 71 | % | (60 | )% | |||||||||||||
May not sum due to rounding
(1) Non-GAAP presentation - see pages 10 and 13
(2) Includes EBO related revenues and associated expenses
(3) Includes interest shortfall and recording and release fees
(4) Includes principal-only stripped MBS valuation-related accretion changes included in net interest income in the GAAP presentation
The owned servicing portfolio totaled $488 billion in UPB at June 30, 2026, up 5% from June 30, 2025 as additions from production more than offset runoff from prepayments.
Servicing segment pretax income was $22 million, up from $13 million in the prior quarter and down from $54 million in the second quarter of 2025. Servicing segment pretax income excluding valuation-related items was $99 million, up from $57 million in the prior quarter and down from $146 million in the second quarter of 2025.
4
Servicing revenues excluding valuation-related items totaled $369 million, up from $316 million in the prior quarter and down from $392 million in the second quarter of 2025. The increase from the prior quarter was primarily due to lower realization of MSR cash flows, reflecting lower prepayment speeds, and an increase in earnings on custodial deposits and other income due to higher average balances. The decrease from the second quarter of 2025 was primarily due to higher realization of MSR cash flows from increased runoff partially offset by increased loan servicing fees.
Servicing expenses excluding valuation-related items were $270 million, up from $260 million in the prior quarter and $246 million in the second quarter of 2025. The increase from the prior quarter was primarily due to higher interest expense due to higher average balances of outstanding financing for MSRs. The increase from the second quarter of 2025 was primarily due to higher interest expense, payoff-related expense, as well as losses and provisions for defaulted loans.
MSR and hedging-related losses were $77 million, compared to $44 million in the prior quarter and $92 million in the second quarter of 2025. These losses included $52 million in hedge costs, compared to $14 million in the prior quarter and $54 million in the second quarter of 2025.
Corporate and Other
Pretax loss from corporate and other was $29 million, compared to $42 million in the prior quarter and $35 million in the second quarter of 2025.
Revenues were $23 million, up from $13 million in the prior quarter and $12 million in the second quarter of 2025, both primarily due to a non-recurring gain resulting from an increase in the value of our minority equity interest in Vesta.
Expenses were $52 million, down slightly from $55 million in the prior quarter and up from $47 million in the second quarter of 2025. The decrease from the prior quarter was driven primarily by lower marketing and advertising expenses, as the prior quarter contained elevated expenses related to the 2026 Winter Olympics. The increase from the second quarter of 2025 was primarily driven by higher marketing and advertising expenses and legal expenses.
***
Management’s slide presentation and accompanying material will be available in the Investor Relations section of the Company’s website at pfsi.pennymac.com after the market closes on Wednesday, July 29, 2026. Management will also host a conference call and live audio webcast at 5:00 p.m. Eastern Time to review the Company’s financial results. The webcast can be accessed at pfsi.pennymac.com, and a replay will be available shortly after its conclusion.
***
5
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 5,500 people across the country. For the twelve months ended June 30, 2026, PFSI’s production of newly originated loans totaled $151 billion in UPB, making it a top lender in the nation. As of June 30, 2026, PFSI serviced loans totaling $731 billion in UPB, making it a top mortgage servicer in the nation. Additional information about PFSI is available at pfsi.pennymac.com.
| Media | Investors |
| Kristyn Clark | Isaac Garden |
| mediarelations@pennymac.com | PFSI_IR@pennymac.com |
| 805.395.9943 | 818.264.4907 |
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, our 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; changes in macroeconomic, consumer and real estate market conditions; changes in housing prices, housing sales and real estate values; rising homeownership costs negatively impacting housing affordability; the continually changing federal, state and local laws and regulations applicable to our highly regulated industry; lawsuits or governmental actions resulting from noncompliance with laws and regulations; the mortgage lending and servicing-related regulations promulgated by federal and state regulators and the enforcement of these regulations; licensing and operational requirements of jurisdictions applicable to our business, to which our bank competitors are not subject; our ability to close and integrate acquisitions, including the acquisition of Cenlar’s subservicing business, changes to government modification programs; difficulties inherent in adjusting the size of our operations to reflect changes in business levels; purchase and sales opportunities for mortgage servicing rights; our substantial amount of indebtedness; increases in loan delinquencies, defaults and forbearances; foreclosure delays and changes in foreclosure practices; our dependence on U.S. government-sponsored entities and changes in their roles; our ability to manage third-party vendors and mortgage investor requirements; our exposure to counterparties that do not fulfill contractual obligations; 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; our obligation to indemnify PMT if our services fail to meet certain criteria or characteristics or under other circumstances; investment management and incentive fees; the accuracy or changes in the estimates we make about uncertainties, contingencies and asset and liability valuations; conflicts of interest in allocating our services and investment opportunities among us and our advised entity; our ability to mitigate cybersecurity risks, cyber incidents and technology disruptions; our ability to implement and develop new technologies and artificial intelligence ; the effect of public opinion on our reputation; our exposure to risks of loss and disruption in operations from severe weather events, man-made or other natural conditions, including climate change and pandemics; our ability to effectively identify, manage and hedge our credit, interest rate, prepayment, liquidity and climate risks; expansion of new business activities or strategies; our ability to detect misconduct and fraud; 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.
6
The press release contains financial information calculated other than in accordance with U.S. generally accepted accounting principles (“GAAP”), such as adjusted net income, adjusted net revenue, adjusted earnings per share, pretax income excluding valuation-related items, and adjusted return on equity. Adjustments to GAAP financial measures include items that the Company deems non-operating, non-recurring and market-driven fair value adjustments to Mortgage Servicing Rights (MSRs) and associated hedging results that change based on interest rate shifts rather than operational efficiency. These non-GAAP measures provide a meaningful perspective on the Company’s business results because the Company utilizes this information to evaluate and manage the business, and investors use this information to calculate financial and cash flow measures. These non-GAAP measures have limitations as analytical tools and should not be viewed as a substitute for financial information determined in accordance with GAAP. Furthermore, these non-GAAP measures may not be comparable to similarly titled metrics presented by other financial institutions.
7
Consolidated Statements of Income
($ in millions, except per share amounts)
| 2Q26 | 1Q26 | 4Q25 | 3Q25 | 2Q25 | Y/Y | |||||||||||||||||||
| Revenue | ||||||||||||||||||||||||
| Owned servicing fees | 471 | 469 | 463 | 460 | 436 | 8 | % | |||||||||||||||||
| Subservicing fees | 20 | 21 | 21 | 21 | 22 | (6 | )% | |||||||||||||||||
| Ancillary and other fees | 45 | 42 | 48 | 54 | 50 | (10 | )% | |||||||||||||||||
| Total loan servicing fees | 536 | 532 | 532 | 535 | 507 | 6 | % | |||||||||||||||||
| Realization of MSR cash flows | (323 | ) | (355 | ) | (383 | ) | (290 | ) | (263 | ) | 23 | % | ||||||||||||
| Changes in fair value of MSRs due to changes in fair value inputs | 118 | 183 | 40 | (102 | ) | 16 | N/M | |||||||||||||||||
| Hedging results | (186 | ) | (207 | ) | (39 | ) | 98 | (109 | ) | N/M | ||||||||||||||
| Net servicing income | 146 | 153 | 150 | 241 | 150 | (3 | )% | |||||||||||||||||
| Net gains on loans held for sale | 280 | 345 | 302 | 314 | 235 | 19 | % | |||||||||||||||||
| Loan origination fees | 70 | 72 | 68 | 62 | 59 | 18 | % | |||||||||||||||||
| Fulfillment fees from PMT | 5 | 6 | 7 | 6 | 6 | (14 | )% | |||||||||||||||||
| Interest income | 242 | 208 | 264 | 249 | 222 | 9 | % | |||||||||||||||||
| Interest expense | (271 | ) | (250 | ) | (263 | ) | (250 | ) | (240 | ) | 13 | % | ||||||||||||
| Net interest (expense) income | (28 | ) | (42 | ) | 1 | (1 | ) | (18 | ) | 60 | % | |||||||||||||
| Management fees | 7 | 7 | 7 | 7 | 7 | (1 | )% | |||||||||||||||||
| Other revenues | 18 | 4 | 4 | 4 | 6 | N/M | ||||||||||||||||||
| Total net revenues | 497 | 545 | 538 | 633 | 445 | 12 | % | |||||||||||||||||
| Expenses | ||||||||||||||||||||||||
| Compensation | 223 | 216 | 208 | 205 | 188 | 19 | % | |||||||||||||||||
| Technology | 44 | 46 | 35 | 45 | 42 | 5 | % | |||||||||||||||||
| Mortgage loan origination | 94 | 80 | 70 | 69 | 69 | 36 | % | |||||||||||||||||
| Professional services | 16 | 14 | 10 | 10 | 8 | 90 | % | |||||||||||||||||
| Servicing | 43 | 38 | 43 | 29 | 28 | 50 | % | |||||||||||||||||
| Occupancy and equipment | 11 | 10 | 10 | 9 | 8 | 28 | % | |||||||||||||||||
| Marketing and advertising | 17 | 21 | 10 | 14 | 12 | 36 | % | |||||||||||||||||
| Other expenses | 18 | 14 | 16 | 15 | 12 | 50 | % | |||||||||||||||||
| Total expenses | 465 | 440 | 404 | 397 | 368 | 26 | % | |||||||||||||||||
| Income before provision for (benefit from) income taxes | 32 | 105 | 134 | 236 | 76 | (59 | )% | |||||||||||||||||
| Income taxes | 10 | 22 | 28 | 55 | (60 | ) | N/M | |||||||||||||||||
| Net income | 22 | 82 | 107 | 182 | 136 | (84 | )% | |||||||||||||||||
| Weighted average shares outstanding | ||||||||||||||||||||||||
| Basic | 51.9 | 52.1 | 52.0 | 51.7 | 51.7 | 1 | % | |||||||||||||||||
| Diluted | 53.3 | 53.9 | 54.2 | 53.9 | 53.6 | (1 | )% | |||||||||||||||||
| Earnings per share | ||||||||||||||||||||||||
| Basic | $ | 0.42 | $ | 1.58 | $ | 2.05 | $ | 3.51 | $ | 2.64 | (84 | )% | ||||||||||||
| Diluted | $ | 0.41 | $ | 1.53 | $ | 1.97 | $ | 3.37 | $ | 2.54 | (84 | )% | ||||||||||||
| Cash dividends declared per common share | $ | 0.30 | $ | 0.30 | $ | 0.30 | $ | 0.30 | $ | 0.30 | -- |
May not sum due to rounding
8
Non-GAAP Reconciliations
($ in millions, except per share amounts)
Reconciliation of GAAP Total net revenues to Adjusted net revenues
| 2Q26 | 1Q26 | 4Q25 | 3Q25 | 2Q25 | ||||||||||||||||
| Total net revenues | 497 | 545 | 538 | 633 | 445 | |||||||||||||||
| Increase (decrease) in fair value of MSRs and MSLs due to changes in valuation inputs used in the valuation model | 118 | 183 | 40 | (102 | ) | 16 | ||||||||||||||
| Hedging gains (losses) associated with MSRs(1) | (187 | ) | (221 | ) | (37 | ) | 105 | (112 | ) | |||||||||||
| Provision for credit losses on active loans | (8 | ) | (6 | ) | (11 | ) | (0 | ) | 4 | |||||||||||
| Non-recurring revenues(2) | 9 | 0 | 0 | 0 | 0 | |||||||||||||||
| Adjusted net revenues | 566 | 589 | 546 | 630 | 537 |
May not sum due to rounding
(1) Includes principal-only stripped MBS valuation-related accretion changes included in interest income for GAAP purposes
(2) 2Q26 non-recurring revenues consist of a $9 million valuation gain related to investments in closely held entities
Reconciliation of GAAP Net Income to Adjusted net income,
Adjusted diluted EPS and Adjusted return on equity (ROE)
| 2Q26 | 1Q26 | 4Q25 | 3Q25 | 2Q25 | ||||||||||||||||
| Net income | 22 | 82 | 107 | 182 | 136 | |||||||||||||||
| (Increase) decrease in fair value of MSRs and MSLs due to changes in valuation inputs used in the valuation model | (118 | ) | (183 | ) | (40 | ) | 102 | (16 | ) | |||||||||||
| Hedging (gains) losses associated with MSRs(1) | 187 | 221 | 37 | (105 | ) | 112 | ||||||||||||||
| Provision for (reversal of) losses on active loans | 8 | 6 | 11 | 0 | (4 | ) | ||||||||||||||
| Non-recurring pretax items(2) | (7 | ) | 3 | 0 | 0 | 0 | ||||||||||||||
| Total adjustments: | 70 | 47 | 8 | (3 | ) | 92 | ||||||||||||||
| Tax rate for adjustments | 25.1 | % | 25.1 | % | 25.1 | % | 25.2 | % | 25.2 | % | ||||||||||
| Tax impacts of adjustments | (18 | ) | (12 | ) | (2 | ) | 1 | (23 | ) | |||||||||||
| Non-recurring tax adjustment | 0 | 0 | 0 | 0 | (82 | ) | ||||||||||||||
| Adjusted net income | 74 | 118 | 113 | 180 | 124 | |||||||||||||||
| Diluted shares outstanding | 53.5 | 53.9 | 54.2 | 53.9 | 53.6 | |||||||||||||||
| Adjusted diluted EPS | $ | 1.39 | $ | 2.19 | $ | 2.08 | $ | 3.33 | $ | 2.31 | ||||||||||
| Average stockholders' equity | 4,323 | 4,324 | 4,238 | 4,110 | 3,940 | |||||||||||||||
| Annualized return on equity (ROE) | 2 | % | 8 | % | 10 | % | 18 | % | 14 | % | ||||||||||
| Annualized adjusted ROE | 7 | % | 11 | % | 11 | % | 17 | % | 13 | % |
May not sum due to rounding
(1) Includes principal-only stripped MBS valuation-related accretion changes included in interest income for GAAP purposes
(2) 2Q26 non-recurring pretax items include a $9 million valuation gain related to investments in closely held entities and $1 million of Cenlar acquisition related expenses
9
Non-GAAP Reconciliations (continued)
($ in millions)
Reconciliation of GAAP Net income to Adjusted EBITDA
| 2Q26 | 1Q26 | 4Q25 | 3Q25 | 2Q25 | ||||||||||||||||
| Net income | 22 | 82 | 107 | 182 | 136 | |||||||||||||||
| Provision for (benefit from) income taxes | 10 | 22 | 28 | 55 | (60 | ) | ||||||||||||||
| Income (loss) before provisions for income taxes | 32 | 105 | 134 | 236 | 76 | |||||||||||||||
| Depreciation and amortization | 14 | 14 | 13 | 13 | 15 | |||||||||||||||
| (Increase) decrease in fair value of MSRs and MSLs due to changes in valuation inputs used in the valuation model | (118 | ) | (183 | ) | (40 | ) | 102 | (16 | ) | |||||||||||
| Hedging (gains) losses associated with MSRs(1) | 187 | 221 | 37 | (105 | ) | 112 | ||||||||||||||
| Provision for (reversal of) losses on active loans | 8 | 6 | 11 | 0 | (4 | ) | ||||||||||||||
| Stock-based compensation | 4 | 2 | 8 | 10 | 8 | |||||||||||||||
| Non-recurring items(2) | (7 | ) | 3 | 0 | 0 | 0 | ||||||||||||||
| Interest expense on corporate debt and capital lease | 83 | 83 | 83 | 78 | 70 | |||||||||||||||
| Adjusted EBITDA | 204 | 251 | 246 | 335 | 261 |
May not sum due to rounding
(1) Includes principal-only stripped MBS valuation-related accretion changes included in interest income for GAAP purposes
(2) 2Q26 non-recurring pretax items include a $9 million valuation gain related to investments in closely held entities and $1 million of Cenlar acquisition related expenses
Reconciliation of GAAP servicing pretax income to
servicing pretax income net of valuation related changes
| 2Q26 | 1Q26 | 4Q25 | 3Q25 | 2Q25 | ||||||||||||||||
| Servicing pretax income | 22 | 13 | 37 | 157 | 54 | |||||||||||||||
| (Increase) decrease in fair value of MSRs and MSLs due to changes in valuation inputs used in the valuation model | (118 | ) | (183 | ) | (40 | ) | 102 | (16 | ) | |||||||||||
| Hedging (gains) losses associated with MSRs(1) | 187 | 221 | 37 | (105 | ) | 112 | ||||||||||||||
| Provision for (reversal of) losses on active loans | 8 | 6 | 11 | 0 | (4 | ) | ||||||||||||||
| Servicing pretax income net of valuation related changes | 99 | 57 | 45 | 155 | 146 |
May not sum due to rounding
(1) Includes principal-only stripped MBS valuation-related accretion changes included in interest income for GAAP purposes
10
Production Segment Profitability and Key Metrics
($ in millions)
Production Segment Contribution to Pretax Income
| 2Q26 | 1Q26 | 4Q25 | 3Q25 | 2Q25 | Y/Y | |||||||||||||||||||
| Net gains on loans held for sale at fair value | 245 | 311 | 276 | 280 | 204 | 20 | % | |||||||||||||||||
| Loan origination fees | 70 | 72 | 68 | 62 | 59 | 18 | % | |||||||||||||||||
| Fulfillment fees from PMT | 5 | 6 | 7 | 6 | 6 | (14 | )% | |||||||||||||||||
| Interest income | 119 | 113 | 129 | 111 | 104 | 14 | % | |||||||||||||||||
| Interest expense | (105 | ) | (96 | ) | (109 | ) | (98 | ) | (94 | ) | 12 | % | ||||||||||||
| Net interest income | 14 | 17 | 20 | 14 | 11 | 35 | % | |||||||||||||||||
| Other revenues | 3 | 0 | 0 | 0 | 0 | N/M | ||||||||||||||||||
| Net revenues | 337 | 407 | 371 | 362 | 280 | 21 | % | |||||||||||||||||
| Compensation | 146 | 136 | 123 | 114 | 104 | 40 | % | |||||||||||||||||
| Technology | 30 | 30 | 28 | 31 | 28 | 8 | % | |||||||||||||||||
| Loan origination expenses | 94 | 80 | 70 | 69 | 69 | 36 | % | |||||||||||||||||
| Professional Services | 5 | 6 | 4 | 3 | 4 | 42 | % | |||||||||||||||||
| Occupancy and equipment | 6 | 5 | 5 | 4 | 4 | 50 | % | |||||||||||||||||
| Marketing and advertising | 12 | 12 | 9 | 12 | 10 | 18 | % | |||||||||||||||||
| Other expenses | 6 | 4 | 5 | 4 | 3 | N/M | ||||||||||||||||||
| Expenses | 299 | 273 | 244 | 239 | 222 | 35 | % | |||||||||||||||||
| Pretax income | 38 | 134 | 127 | 123 | 58 | (33 | )% |
May not sum due to rounding
11
Production Segment Profitability and Key Metrics (continued)
($ UPB in billions)
Production Segment Volumes and Key Metrics
| 2Q26 | 1Q26 | 4Q25 | 3Q25 | 2Q25 | Y/Y | |||||||||||||||||||
| Volumes | ||||||||||||||||||||||||
| Consumer direct fallout adjusted locks | 4.5 | 6.6 | 5.0 | 3.9 | 2.4 | 87 | % | |||||||||||||||||
| Broker direct fallout adjusted locks | 6.5 | 7.1 | 5.6 | 5.9 | 5.4 | 21 | % | |||||||||||||||||
| Correspondent fallout adjusted locks | 20.5 | 24.3 | 30.5 | 27.2 | 30.8 | (33 | )% | |||||||||||||||||
| Total fallout adjusted locks | 31.5 | 38.0 | 41.0 | 37.0 | 38.6 | (18 | )% | |||||||||||||||||
| Consumer direct originations | 5.6 | 6.0 | 5.2 | 3.1 | 2.8 | 103 | % | |||||||||||||||||
| Broker direct originations | 7.0 | 6.7 | 6.5 | 5.6 | 5.3 | 32 | % | |||||||||||||||||
| Correspondent acquisitions | 22.3 | 24.4 | 30.5 | 27.8 | 29.8 | (25 | )% | |||||||||||||||||
| Total acquisitions and originations | 34.9 | 37.0 | 42.2 | 36.5 | 37.9 | (8 | )% | |||||||||||||||||
| Consumer direct locks | 6.1 | 9.2 | 7.4 | 6.0 | 3.8 | 62 | % | |||||||||||||||||
| Broker direct locks | 8.5 | 9.5 | 7.6 | 8.0 | 7.2 | 19 | % | |||||||||||||||||
| Correspondent locks | 21.8 | 26.1 | 31.8 | 29.3 | 32.2 | (32 | )% | |||||||||||||||||
| Total locks | 36.5 | 44.8 | 46.8 | 43.2 | 43.1 | (15 | )% | |||||||||||||||||
| Key Metrics | ||||||||||||||||||||||||
| Revenues(1) as basis points of fallout adjusted locks | 77 | 86 | 73 | 79 | 55 | 23 | ||||||||||||||||||
| Pretax income as basis points of total fallout adjusted locks | 12 | 35 | 31 | 33 | 15 | (3 | ) | |||||||||||||||||
| Consumer direct margins(2) | 3.17 | % | 2.67 | % | 2.74 | % | 3.28 | % | 4.08 | % | (22 | )% | ||||||||||||
| Broker direct margins(2) | 1.04 | % | 0.99 | % | 1.01 | % | 0.97 | % | 0.87 | % | 19 | % | ||||||||||||
| PFSI correspondent margins(2) | 0.29 | % | 0.28 | % | 0.25 | % | 0.30 | % | 0.25 | % | 15 | % | ||||||||||||
| % Purchase acquisitions and originations | 69 | % | 58 | % | 66 | % | 83 | % | 83 | % | N/M | |||||||||||||
| Government loan first lien refinance recapture rate(3) | 59 | % | 50 | % | 51 | % | 48 | % | 44 | % | 15 | % | ||||||||||||
| Conventional loan first lien refinance recapture rate(3) | 29 | % | 22 | % | 17 | % | 16 | % | 17 | % | 12 | % | ||||||||||||
| WA FICO at acquisition / origination | 742 | 749 | 747 | 749 | 746 | (4 | ) | |||||||||||||||||
| WA DTI at acquisition / origination | 40 | 40 | 40 | 40 | 41 | (1 | ) | |||||||||||||||||
May not sum due to rounding
(1) Net of loan origination expenses
(2) Revenue contribution excluding post-lock impacts divided by fallout adjusted locks
(3) Numerator = UPB of new consumer direct first lien refinance originations for existing portfolio customers; denominator = UPB of payoffs with no transfer of title or MLS listing identified
12
Servicing Segment Profitability and Key Metrics
($ in millions)
Servicing Segment Contribution to Pretax Income
| 2Q26 | 1Q26 | 4Q25 | 3Q25 | 2Q25 | Y/Y | |||||||||||||||||||
| Owned servicing fees | 471 | 469 | 463 | 460 | 436 | 8 | % | |||||||||||||||||
| Subservicing fees | 20 | 21 | 21 | 21 | 22 | (6 | )% | |||||||||||||||||
| Ancillary and other fees | 45 | 42 | 48 | 54 | 50 | (10 | )% | |||||||||||||||||
| Total loan servicing fees | 536 | 532 | 532 | 535 | 507 | 6 | % | |||||||||||||||||
| Realization of MSR cash flows | (323 | ) | (355 | ) | (383 | ) | (290 | ) | (263 | ) | 23 | % | ||||||||||||
| Changes in MSR fair value due to changes in valuation inputs | 118 | 183 | 40 | (102 | ) | 16 | N/M | |||||||||||||||||
| Hedging results | (186 | ) | (207 | ) | (39 | ) | 98 | (109 | ) | N/M | ||||||||||||||
| Net loan servicing fees | 146 | 153 | 150 | 241 | 150 | (3 | )% | |||||||||||||||||
| Gains on loans held for sale | 35 | 34 | 26 | 34 | 31 | 15 | % | |||||||||||||||||
| Interest income | 123 | 95 | 135 | 137 | 117 | 5 | % | |||||||||||||||||
| Interest expense | (166 | ) | (154 | ) | (154 | ) | (152 | ) | (146 | ) | 14 | % | ||||||||||||
| Net interest expense | (43 | ) | (59 | ) | (19 | ) | (15 | ) | (29 | ) | 48 | % | ||||||||||||
| Other revenues | (2 | ) | (2 | ) | (2 | ) | (1 | ) | 1 | N/M | ||||||||||||||
| Net revenues | 137 | 125 | 154 | 259 | 153 | (11 | )% | |||||||||||||||||
| Compensation | 52 | 53 | 52 | 52 | 51 | 1 | % | |||||||||||||||||
| Technology | 8 | 11 | 11 | 10 | 10 | (11 | )% | |||||||||||||||||
| Servicing | 43 | 38 | 43 | 29 | 28 | 50 | % | |||||||||||||||||
| Other expenses | 12 | 11 | 11 | 11 | 10 | 20 | % | |||||||||||||||||
| Expenses | 115 | 112 | 117 | 102 | 99 | 16 | % | |||||||||||||||||
| Servicing pretax income | 22 | 13 | 37 | 157 | 54 | (60 | )% |
May not sum due to rounding
13
Servicing Segment Profitability and Key Metrics (continued)
($ UPB in billions)
Servicing Segment Portfolio and Key Metrics
| 2Q26 | 1Q26 | 4Q25 | 3Q25 | 2Q25 | Y/Y | |||||||||||||||||||
| Servicing Portfolio ($ UPB in billions, at period end) | ||||||||||||||||||||||||
| Owned MSR UPB | 488 | 474 | 462 | 470 | 463 | 5 | % | |||||||||||||||||
| Subserviced UPB | 235 | 237 | 263 | 239 | 230 | 2 | % | |||||||||||||||||
| Loans held for sale | 8 | 10 | 9 | 7 | 7 | 13 | % | |||||||||||||||||
| Total UPB | 731 | 720 | 734 | 717 | 700 | 4 | % | |||||||||||||||||
| Total loans serviced (in thousands) | 2,753 | 2,725 | 2,788 | 2,746 | 2,704 | 2 | % | |||||||||||||||||
| Key Metrics (owned portfolio, at period end except CPR) | ||||||||||||||||||||||||
| 60+ Day Delinquency | 4.1 | % | 4.2 | % | 4.2 | % | 3.4 | % | 3.2 | % | 0.9 | % | ||||||||||||
| Actual CPR | 11.6 | % | 13.7 | % | 13.0 | % | 8.6 | % | 8.5 | % | 3.1 | % | ||||||||||||
| Weighted average coupon | 5.1 | % | 5.1 | % | 5.0 | % | 4.9 | % | 4.7 | % | 0.4 | % | ||||||||||||
| Weighted average servicing fee | 0.39 | % | 0.39 | % | 0.39 | % | 0.39 | % | 0.39 | % | 0.00 | % | ||||||||||||
| Servicing fee multiple | 5.6 | x | 5.5 | x | 5.3 | x | 5.3 | x | 5.3 | x | 0.3 | x |
May not sum due to rounding
14
Corporate & Other Profitability
($ in millions)
| 2Q26 | 1Q26 | 4Q25 | 3Q25 | 2Q25 | Y/Y | |||||||||||||||||||
| Management fees | 7 | 7 | 7 | 7 | 7 | (1 | )% | |||||||||||||||||
| Interest income | 0 | 0 | 0 | 0 | 1 | N/M | ||||||||||||||||||
| Interest expense | 0 | 0 | 0 | 0 | 0 | N/M | ||||||||||||||||||
| Net interest income (expense) | 0 | 0 | 0 | 0 | 1 | N/M | ||||||||||||||||||
| Other revenues | 16 | 6 | 6 | 4 | 4 | N/M | ||||||||||||||||||
| Net revenues | 23 | 13 | 13 | 12 | 12 | 98 | % | |||||||||||||||||
| Compensation | 25 | 28 | 33 | 39 | 32 | (21 | )% | |||||||||||||||||
| Technology | 6 | 5 | (3 | ) | 4 | 5 | 20 | % | ||||||||||||||||
| Marketing and advertising | 5 | 9 | 1 | 1 | 2 | 170 | % | |||||||||||||||||
| Professional Services | 9 | 7 | 4 | 5 | 3 | 180 | % | |||||||||||||||||
| Occupancy and equipment | 2 | 2 | 2 | 2 | 2 | 28 | % | |||||||||||||||||
| Other expenses | 6 | 5 | 6 | 5 | 4 | 34 | % | |||||||||||||||||
| Expenses | 52 | 55 | 43 | 56 | 47 | 10 | % | |||||||||||||||||
| Corporate & Other pretax loss | (29 | ) | (42 | ) | (30 | ) | (44 | ) | (35 | ) | (19 | )% |
May not sum due to rounding
15
Consolidated Balance Sheets
($ in millions)
| 6/30/26 | 3/31/26 | 12/31/25 | 9/30/25 | 6/30/25 | Y/Y | |||||||||||||||||||
| Assets | ||||||||||||||||||||||||
| Cash | 214 | 220 | 302 | 622 | 162 | 32 | % | |||||||||||||||||
| Short-term investment at fair value | 534 | 434 | 410 | 62 | 462 | 16 | % | |||||||||||||||||
| Principal-only stripped mortgage-backed securities at fair value | 609 | 659 | 723 | 774 | 785 | (22 | )% | |||||||||||||||||
| Loans held for sale at fair value | 7,820 | 9,954 | 9,123 | 7,490 | 6,961 | 12 | % | |||||||||||||||||
| Derivative assets | 202 | 283 | 188 | 202 | 181 | 12 | % | |||||||||||||||||
| Servicing advances, net | 589 | 623 | 590 | 396 | 431 | 37 | % | |||||||||||||||||
| Mortgage servicing rights at fair value | 10,587 | 10,149 | 9,599 | 9,654 | 9,531 | 11 | % | |||||||||||||||||
| Loans eligible for repurchase | 8,291 | 8,594 | 7,410 | 5,417 | 4,963 | 67 | % | |||||||||||||||||
| Other assets | 1,013 | 1,028 | 1,045 | 783 | 746 | 36 | % | |||||||||||||||||
| Total Assets | 29,859 | 31,944 | 29,389 | 25,401 | 24,222 | 23 | % | |||||||||||||||||
| Liabilities | ||||||||||||||||||||||||
| Assets sold under agreements to repurchase | 8,435 | 10,178 | 8,794 | 7,130 | 7,344 | 15 | % | |||||||||||||||||
| Mortgage loan participation purchase and sale agreements | 696 | 691 | 697 | 699 | 700 | (1 | )% | |||||||||||||||||
| Notes payable secured by mortgage servicing assets | 1,426 | 1,426 | 1,326 | 1,326 | 1,327 | 7 | % | |||||||||||||||||
| Unsecured senior notes | 4,837 | 4,834 | 4,832 | 4,829 | 4,185 | 16 | % | |||||||||||||||||
| Accounts payable and accrued expenses | 437 | 459 | 644 | 476 | 395 | 11 | % | |||||||||||||||||
| Income taxes payable | 1,216 | 1,206 | 1,184 | 1,151 | 1,097 | 11 | % | |||||||||||||||||
| Liability for mortgage loans eligible for repurchase | 8,291 | 8,594 | 7,410 | 5,417 | 4,963 | 67 | % | |||||||||||||||||
| Other liabilities | 184 | 229 | 194 | 164 | 178 | 4 | % | |||||||||||||||||
| Total Liabilities | 25,523 | 27,618 | 25,080 | 21,193 | 20,189 | 26 | % | |||||||||||||||||
| Stockholders' Equity | 4,337 | 4,326 | 4,309 | 4,208 | 4,033 | 8 | % | |||||||||||||||||
May not sum due to rounding
16
Capital and Liquidity
($ in millions)
| 2Q26 | 1Q26 | 4Q25 | 3Q25 | 2Q25 | Y/Y | |||||||||||||||||||
| Liquidity | ||||||||||||||||||||||||
| Cash and short-term investments | 749 | 654 | 712 | 684 | 624 | 20 | % | |||||||||||||||||
| Amounts available to draw on facilities with collateral pledged | 3,261 | 3,507 | 3,928 | 4,288 | 3,538 | (8 | )% | |||||||||||||||||
| Total liquidity | 4,010 | 4,161 | 4,639 | 4,972 | 4,163 | (4 | )% | |||||||||||||||||
| Total liquidity as a % of MSR fair value | 38 | % | 41 | % | 48 | % | 52 | % | 44 | % | (6 | )% | ||||||||||||
| Capital | ||||||||||||||||||||||||
| Total equity | 4,337 | 4,326 | 4,309 | 4,208 | 4,033 | 8 | % | |||||||||||||||||
| (-) Capitalized software | 111 | 112 | 108 | 105 | 112 | (1 | )% | |||||||||||||||||
| Tangible equity | 4,226 | 4,214 | 4,201 | 4,103 | 3,920 | 8 | % | |||||||||||||||||
| Face value of unsecured senior notes | 4,900 | 4,900 | 4,900 | 4,900 | 4,250 | 15 | % | |||||||||||||||||
| Face value of MSR term notes and loans | 1,330 | 1,330 | 1,330 | 1,330 | 1,230 | 8 | % | |||||||||||||||||
| Amount drawn on variable funding note | 1,145 | 860 | 410 | 230 | 905 | 27 | % | |||||||||||||||||
| Freddie Mac MSR facilities | 310 | 235 | -- | -- | 100 | 210 | % | |||||||||||||||||
| Face value of non-funding debt | 7,685 | 7,325 | 6,640 | 6,460 | 6,485 | 19 | % | |||||||||||||||||
| Face value of assets sold under agreements to repurchase(1) | 7,085 | 9,189 | 8,391 | 6,908 | 6,447 | 10 | % | |||||||||||||||||
| Face value of mortgage loan participation purchase and sale agreements | 696 | 691 | 697 | 700 | 701 | (1 | )% | |||||||||||||||||
| Face value of funding debt | 7,782 | 9,880 | 9,088 | 7,608 | 7,148 | 9 | % | |||||||||||||||||
| Face value of total debt | 15,467 | 17,205 | 15,728 | 14,068 | 13,633 | 13 | % | |||||||||||||||||
| Unamortized debt issuance costs | (72 | ) | (76 | ) | (80 | ) | (84 | ) | (76 | ) | (6 | )% | ||||||||||||
| Carrying value of total debt | 15,395 | 17,129 | 15,648 | 13,984 | 13,557 | 14 | % | |||||||||||||||||
| Total assets | 29,859 | 31,944 | 29,389 | 25,401 | 24,222 | 23 | % | |||||||||||||||||
| (-) Capitalized software | 111 | 112 | 108 | 105 | 112 | (1 | )% | |||||||||||||||||
| Adjusted assets | 29,748 | 31,832 | 29,281 | 25,296 | 24,110 | 23 | % | |||||||||||||||||
| (-) Loans eligible for repurchase | 8,291 | 8,594 | 7,410 | 5,417 | 4,963 | 67 | % | |||||||||||||||||
| Adjusted assets less loans eligible for repurchase | 21,458 | 23,237 | 21,871 | 19,879 | 19,147 | 12 | % | |||||||||||||||||
| Capital Ratios | ||||||||||||||||||||||||
| Non-funding debt / total equity(2) | 1.8 | x | 1.7 | x | 1.5 | x | 1.5 | x | 1.6 | x | 0.2 | x | ||||||||||||
| Non-funding debt / tangible equity(2) | 1.8 | x | 1.7 | x | 1.6 | x | 1.6 | x | 1.7 | x | 0.2 | x | ||||||||||||
| Total debt / total equity | 3.6 | x | 4.0 | x | 3.7 | x | 3.3 | x | 3.4 | x | 0.2 | x | ||||||||||||
| Total debt / tangible equity | 3.7 | x | 4.1 | x | 3.7 | x | 3.4 | x | 3.5 | x | 0.2 | x | ||||||||||||
| Total equity / adjusted assets less loans eligible for repurchase | 20.2 | % | 18.6 | % | 19.7 | % | 21.2 | % | 21.1 | % | (0.8 | )% | ||||||||||||
| Tangible equity / adjusted assets less loans eligible for repurchase | 19.7 | % | 18.1 | % | 19.2 | % | 20.6 | % | 20.5 | % | (0.8 | )% |
May not sum due to rounding
(1) Assets sold under agreements to repurchase shown above excludes the amount drawn on variable funding note and a certain portion of the Freddie Mac MSR facilities
(2) Uses face value of debt outstanding
17
Exhibit 99.2
| PennyMac Financial Services, Inc. 2Q26 EARNINGS REPORT July 2026 |
| 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 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. These forward-looking statements include, but are not limited to, statements regarding future changes in interest rates, prepayment rates and the housing market; future loan origination, servicing and production, including future production, operating and hedge expenses; future loan delinquencies, defaults and forbearances; future earnings, return on equity as well as other business and financial projections and expectations. Factors which could cause actual results to differ materially from historical results or those anticipated include, but are not limited to: interest rate changes; changes in macroeconomic, consumer and real estate market conditions; changes in housing prices, housing sales and real estate values; rising homeownership costs negatively impacting housing affordability; the continually changing federal, state and local laws and regulations applicable to our highly regulated industry; lawsuits or governmental actions resulting from noncompliance with laws and regulations; the mortgage lending and servicing-related regulations promulgated by federal and state regulators and the enforcement of these regulations; licensing and operational requirements of jurisdictions applicable to our business, to which our bank competitors are not subject; our ability to close and integrate acquisitions, including the acquisition of Cenlar’s subservicing business, changes to government modification programs; difficulties inherent in adjusting the size of our operations to reflect changes in business levels; purchase and sales opportunities for mortgage servicing rights; our substantial amount of indebtedness; increases in loan delinquencies, defaults and forbearances; foreclosure delays and changes in foreclosure practices; our dependence on U.S. government-sponsored entities and changes in their roles; our ability to manage third-party vendors and mortgage investor requirements; our exposure to counterparties that do not fulfill contractual obligations; 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; our obligation to indemnify PMT if our services fail to meet certain criteria or characteristics or under other circumstances; investment management and incentive fees; the accuracy or changes in the estimates we make about uncertainties, contingencies and asset and liability valuations; conflicts of interest in allocating our services and investment opportunities among us and our advised entity; our ability to mitigate cybersecurity risks, cyber incidents and technology disruptions; our ability to implement and develop new technologies and artificial intelligence; the effect of public opinion on our reputation; our exposure to risks of loss and disruption in operations from severe weather events, man-made or other natural conditions, including climate change and pandemics; our ability to effectively identify, manage and hedge our credit, interest rate, prepayment, liquidity and climate risks; expansion of new business activities or strategies; our ability to detect misconduct and fraud; 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 presentation are current as of the date of this presentation only. The press release contains financial information calculated other than in accordance with U.S. generally accepted accounting principles (“GAAP”), such as adjusted net income, adjusted net revenue, adjusted earnings per share, pretax income excluding valuation-related items, and adjusted return on equity. Adjustments to GAAP financial measures include items that the Company deems non-operating, non-recurring and market-driven fair value adjustments to Mortgage Servicing Rights (MSRs) and associated hedging results that change based on interest rate shifts rather than operational efficiency. These non-GAAP measures provide a meaningful perspective on the Company’s business results because the Company utilizes this information to evaluate and manage the business, and investors use this information to calculate financial and cash flow measures. These non-GAAP measures have limitations as analytical tools and should not be viewed as a substitute for financial information determined in accordance with GAAP. Furthermore, these non-GAAP measures may not be comparable to similarly titled metrics presented by other financial institutions. 2 FORWARD-LOOKING STATEMENTS |
| 3 2Q26 Results Production Segment Servicing Segment SECOND QUARTER HIGHLIGHTS Note: All figures are for 2Q26 or are as of 6/30/26 (1) EPS = earnings per share; ROE = return on equity (2) See slide 24 for a reconciliation of GAAP net income to non-GAAP adjusted net income, adjusted EPS and annualized adjusted ROE (3) Includes volume fulfilled for PennyMac Mortgage Investment Trust (NYSE: PMT) (4) Valuation-related changes include $118 million in MSR fair value gains, $2 million in principal-only stripped MBS valuation-related accretion declines, $186 million in hedging losses, and $8 million in provision for losses on active loans - see slide 14 (5) UPB = unpaid principal balance; includes loans subserviced for PMT and others Annualized ROE(1) Annualized adjusted ROE(2) Pretax income Total loan acquisitions and originations(3) PFSI correspondent lock volume Broker direct lock volume Consumer direct lock volume Pretax income Pretax income excluding valuation-related changes(4) Impact to diluted EPS from valuation-related changes(4) Valuation-related changes(4) Total servicing portfolio UPB(5) Book value per share Net income Diluted EPS(1) Adjusted EPS(1)(2) $0.41 $1.39 $22mm $83.49 $38mm $22mm $34.9bn $18.6bn $8.5bn $6.1bn $99mm $(77)mm 2% 7% $(1.09) $731bn |
| BUSINESS UPDATES Continued to make progress on the acquisition of Cenlar’s subservicing business and expect the transaction to close in the fourth quarter 4 Conventional first-lien refinance recapture rates increased 7 percentage points from the prior quarter to 29% and government first-lien refinance rapture rates increased 9 percentage points from the prior quarter to 59% Expanded our strategic partnership with Amazon Web Services to further bolster our transformation as an AI-driven mortgage technology leader Our new consumer direct loan origination system has facilitated a rapid implementation of process-automating AI agents, including the launch of a proprietary Natural Language Virtual Agent (NLVA) across both outbound and inbound calls |
| With a smaller projected origination market due to higher interest rates, we expect adjusted ROEs to remain in the high single digits through 2026 as we reduce our expense base Mortgage Banking Adjusted Pretax Income ($ in millions) Production 5 Annualized Adjusted ROE(1) Note: Figures may not sum due to rounding (1) See slides 24 and 25 for a reconciliation of GAAP to non-GAAP items Servicing net of valuation related changes(1) RECENT AND EXPECTED ADJUSTED RETURNS ON EQUITY |
| 6 DRIVING TOWARD MID-TEENS RETURNS ON EQUITY Structural Cost Reductions Tech Expense Inflection Capital Light Fee Growth Technology spend currently funding our AI transformation Decline in technology expenses has begun and will continue into 2027 Increased Direct Channel Earnings Cenlar expected to add stable, contractual fee revenue while leveraging our existing infrastructure Expands B2B relationships and potential for additional product offerings Expect to maintain or continue growing recapture rates Continued growth in broker direct AI adoption drives down origination and processing costs Plaisse automation drives a lower cost to service and structural efficiencies |
| 7 EARNINGS POTENTIAL FROM CONSUMER DIRECT RECAPTURE OPPORTUNITY Gov’t. Loan First Lien Refinance Recapture Conv. Loan First Lien Refinance Recapture > 7.00% 6.50 - 6.99% 5.50 - 5.99% 6.00 - 6.49% 5.00 - 5.49% Note: Figures may not sum due to rounding (1) Includes first-lien loans serviced for PFSI’s own account as well as those subserviced for PMT and others with recapture arrangements with PFSI (2) Numerator = UPB of new consumer direct first lien refinance originations for existing portfolio customers; denominator = UPB of payoffs with no transfer of title or MLS listing identified Refinance Recapture Origination Volume (UPB in billions) First-lien refinance recapture rate(2) Gov’t. Loans: Note Rates >5%(1) (UPB in billions) Conv. Loans: Note Rates >5%(1) (UPB in billions) 6/30/26 6/30/26 > 7.00% 6.50 - 6.99% 6.00 - 6.49% 5.50 - 5.99% 5.00 - 5.49% Refinance Recapture Origination Volume (UPB in billions) First-lien refinance recapture rate(2) Strong improvement in first-lien recapture rates reflects enhanced efficiency from technology investments Significant improvements as we continue to implement specific solutions to drive higher recapture rates and unit profitability |
| • Pennymac’s per loan servicing expenses are among the lowest in the industry, despite a higher concentration of government loans, which are more costly to service • Industry-leading customer service as evidenced by our multi-year servicing excellence awards from HUD, Fannie Mae and Freddie Mac 8 Operating Expenses (annualized bps of average servicing portfolio UPB) Direct Servicing Expense(1) (annual $ cost per loan) TECHNOLOGY DRIVING EFFICIENCIES AND LOWER EXPENSES IN SERVICING • Continuing to increase efficiency through the use of emerging technologies, including capabilities of generative AI • Increased scale and efficiency as the portfolio grows • Delinquencies remain moderated in the current market environment, further reducing operating expenses % Government Portfolio (1) MBA 2026 Servicing Operations Study (2025 data), Pennymac is included within Large IMBs |
| 9 ADDITIONAL EFFICIENCIES TO BE REALIZED IN CONSUMER DIRECT Workflow & Objective Automation Substantial Reduction in Cost-to-Produce Standardizing 150 distinct operational workflows across the full origination lifecycle for all products % of processes automated or done by AI agents Automating labor-intensive, lower-funnel tasks to enable additional sales and processing capacity Expecting to achieve significant annualized cost savings Targeting a 20%+ reduction in processing costs per loan from June to September Turn-Time Reduction VA IRRRL(1) FHA Streamline Conv. CES(1) 1.6 days 8.7 days 2.9 days 10.1 days 8.2 days 8.7 days Submission to conditional approval 4.9 days 3.7 days Natural Language Virtual Agent: Outbound dispatch and 24/7 service for borrower inquiries and callback scheduling Frictionless Onboarding: Automated link delivery, real-time pre-qualification, and routing of priority contacts directly to loan officers Conversion & Loyalty: Superior customer experience strengthens brand trust and directly feeds higher portfolio retention ~40-80% reductions in turn times across major loan programs AI agents are accelerating submission to conditional approval and closing loans quicker Elevated Customer Service & Engagement (1) VA IRRRL = VA Interest Rate Reduction Refinance Loan; CES = closed end second lien |
| KEY OPERATING METRICS & OTHER FINANCIAL SCHEDULES |
| Acquisitions for PFSI(1) 11 PRODUCTION SEGMENT HIGHLIGHTS – VOLUME BY CHANNEL Broker Direct (UPB in billions) (1) Government-insured or guaranteed loans and certain conventional loans acquired through PFSI’s correspondent production business; PFSI earns income from holding and selling or securitizing the loans (2) Loans fulfilled for PMT; for these loans, PFSI earns a fulfillment fee from PMT rather than income from holding and selling or securitizing the loans (3) Includes locks related to loans sold to PMT Consumer Direct (UPB in billions) Correspondent (UPB in billions) Acquisitions for PMT(2) Originations Locks: $5.2bn Acquisitions: $5.5bn Locks: $2.2bn Originations: $2.0bn Locks: $1.6bn Originations: $1.3bn Total Locks(3) July (Estimated) July (Estimated) July (Estimated) Locks Originations Locks |
| 12 DRIVERS OF PRODUCTION SEGMENT RESULTS • Negative contribution in 2Q26 from post-lock impacts driven by adverse market price changes on specialized pools and other cross-channel impacts • Consumer direct revenue contribution declined due to lower volumes; higher margins reflect a higher proportion of closed-end second liens compared to first lien originations • Broker direct revenue contribution declined slightly due to lower volumes, largely offset by higher margins • PFSI correspondent revenue contribution declined due to lower volumes as a result of a highly competitive environment • Production expenses(4) increased from 1Q26 due to higher capacity and funded unit volume in the consumer direct lending channel Note: Figures may not sum due to rounding (1) Expected revenue net of direct origination costs at time of lock (2) Includes government-insured or guaranteed loans and certain conventional loans for PFSI’s own account (3) Reflects timing of revenue and loan origination expense recognition, hedging, pricing & execution changes, and other items (4) Total PFSI account revenues, total production revenues and production expenses are presented net of loan origination expenses, which are managed as a component of revenue margins 2Q25 1Q26 2Q26 ($ in millions) Fallout adjusted locks Margin / fulfillment fee (bps)(1) Revenue contribution (net of loan origination expense) Fallout adjusted locks Margin / fulfillment fee (bps)(1) Revenue contribution (net of loan origination expense) Fallout adjusted locks Margin / fulfillment fee (bps)(1) Revenue contribution (net of loan origination expense) PFSI correspondent(2) $ 27,634 25 $ 70 $ 21,539 28 $ 61 $ 18,227 29 $ 52 Broker direct 5,355 87 46 7,066 99 70 6,475 104 67 Consumer direct 2,403 408 98 6,649 267 178 4,490 317 142 Post-lock impacts & other(3) n/a n/a (10) n/a n/a 13 n/a n/a (23) Total PFSI account revenues(4) $ 35,392 58 $ 205 $ 35,254 91 $ 321 $ 29,193 82 $ 238 PMT conventional correspondent 3,183 18 6 2,776 21 6 2,292 22 5 Total Production revenues(4) 55 $ 211 86 $ 327 77 $ 243 Production expenses(4) $ 38,575 40 $ 153 $ 38,030 51 $ 194 $ 31,485 65 $ 205 Production segment pretax income 15 $ 58 35 $ 134 12 $ 38 |
| Net Portfolio Growth (UPB in billions) Owned Subserviced(1) Note: Figures may not sum due to rounding (1) Represents MSRs that we subservice for PMT and others (2) Owned portfolio is predominantly government-insured and guaranteed loans - delinquency data based on loan count (i.e., not UPB); CPR = Conditional Prepayment Rate (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) Includes consumer and broker direct production, government and conventional correspondent acquisitions, and conventional conforming and jumbo loan acquisitions subserviced for PMT SERVICING SEGMENT HIGHLIGHTS 13 Loan Servicing Portfolio Composition (UPB in billions) (5) • Servicing portfolio totaled $731 billion in UPB at June 30, 2026, up 1% Q/Q and 4% Y/Y • Production volumes more than offset prepayment activity, leading to continued portfolio growth • 60+ day delinquency rate for owned MSR was down slightly from the prior quarter • Modification volume and EBO loan volume increased from the prior quarter Selected Operational Metrics 1Q26 2Q26 Loans serviced (in thousands) 2,725 2,753 60+ day delinquency rate - owned portfolio(2) 4.2% 4.1% Actual CPR - owned portfolio(2) 13.7% 11.6% UPB of completed modifications ($ in millions)(3) $1,400 $2,850 EBO loan volume ($ in millions)(4) $632 $1,218 |
| 14 Note: Figures may not sum due to rounding (1) Of average portfolio UPB, annualized (2) Also includes non-valuation related income from principal-only bonds (3) Comprised of net gains on mortgage loans held for sale at fair value and interest income related to EBO loans, net of related expenses (4) Consists of interest shortfall and recording and release fees (5) Changes in fair value do not include realization of MSR cash flows (6) Considered in the assessment of MSR fair value changes DRIVERS OF SERVICING SEGMENT RESULTS • Average custodial deposit balances increased 7% from the prior quarter, driving a $14 million increase in revenue • Realization of MSR cash flows was down from the prior quarter due primarily to lower prepayment speeds • Interest expense was up $15 million from 1Q26 due to higher average financing balances for MSRs 2Q25 1Q26 2Q26 $ in millions basis points(1) $ in millions basis points(1) $ in millions basis points(1) Loan servicing fees $ 507 29.4 $ 532 29.5 $ 536 29.5 Earnings on custodial balances and deposits and other income(2) 116 6.7 105 5.8 119 6.6 Realization of MSR cash flows (263) (15.3) (355) (19.7) (323) (17.8) EBO loan-related income(3) 32 1.9 34 1.9 37 2.0 Servicing expenses: Operating expenses (77) (4.5) (81) (4.5) (76) (4.2) Payoff-related expense(4) (17) (1.0) (31) (1.7) (29) (1.6) Losses and provisions for defaulted loans (22) (1.2) (23) (1.3) (26) (1.4) Interest expense (130) (7.5) (125) (6.9) (140) (7.7) Non-GAAP: Pretax income excluding valuation-related changes $ 146 8.5 $ 57 3.1 $ 99 5.5 Valuation-related changes MSR fair value(5) 16 183 118 Principal-only stripped MBS valuation-related accretion changes (3) (14) (2) Hedging derivatives (losses) gains (109) (207) (186) (Provision for) reversal of losses on active loans(6) 4 (6) (8) GAAP: Servicing segment pretax income $ 54 $ 13 $ 22 Average servicing portfolio UPB $ 689,612 $ 721,377 $ 726,149 |
| 15 HEDGING APPROACH MODERATES THE VOLATILITY OF PFSI’S RESULTS MSR Valuation Changes and Offsets ($ in millions) MSR fair value changes before realization of cash flows(1) Hedging and related gains (losses)(2) (1) Includes (provision for) reversal of losses on active loans (2) Includes principal-only stripped MBS valuation-related accretion changes • In 2Q26, gains from changes in fair value inputs on MSR were more than offset by hedging declines and costs • Hedge costs were meaningfully higher than the prior quarter due to elevated interest rate volatility • Shape of the yield curve, volatility, changes in mortgage basis and other factors can impact our realized hedge ratio Attributed Performance MSR(1) Hedge(2) Net Rate Impacts $96 $(135) $(38) Hedge Costs - $(52) $(52) Other Assumption & Performance Impacts $13 - $13 Prepayment-related $0 - $0 Delinquency-related $3 - $3 Other $10 - $10 Total $110 $(187) $(77) |
| 16 STRONG BALANCE SHEET AND DIVERSE CAPITAL STRUCTURES (1) Non-funding debt includes face value of unsecured senior notes and notes payable secured by MSR, in addition to the amount drawn on the variable funding note (2) Tangible net worth excludes capitalized software (3) As of 6/30/26 Low Debt-to-Equity (D/E) Ratio MSR & Servicing Advance Financing High Tangible Net Worth (TNW)(2)/Assets Non-funding D/E(1) Total D/E Diverse Financing Sources(3) TNW / Assets TNW / Assets ex. Loans eligible for repurchase • High tangible net worth (TNW) / assets excluding loans eligible for repurchase • Unsecured senior notes enhance liquidity at low, fixed interest rates; first maturity in February 2029 • As of June 30, 2026 total liquidity including cash and amounts available to draw with collateral pledged was $4.0 billion Financing capacity across multiple banks • Active management of targeted D/E ratios: ‒ Total D/E ratio decreased Q/Q due to lower balances of loans held for sale ‒ Non-funding D/E ratio increased slightly due to higher interest rates, which drove increased utilization of our MSR credit facilities |
| APPENDIX |
| Portfolio growth drives higher recurring fee income; prepayment speeds slow in rising rate environments, a natural hedge to origination income Refinance recapture to drive earnings growth when rates decline 18 COMPREHENSIVE MORTGAGE BANKING PLATFORM IS A FLYWHEEL Large volumes of production grow servicing portfolio 2 nd largest in the U.S.(1) 5 th largest in the U.S.(2) A culture of continuous process improvement and technological innovation to drive further scale and operational efficiency gains Customer base of 2.8 million drives leads for consumer direct Correspondent Production Broker Direct Consumer Direct Leading market position in third-party lending enables access to the more consistent and growing purchase market Servicing Portfolio UPB(2) (in billions) (1) Inside Mortgage Finance for the 12 months ended 3/31/26 (2) Inside Mortgage Finance as of 3/31/26; includes volume subserviced for PMT and others Loan Production Loan Servicing |
| PFSI Purchase Mix Industry Purchase Mix(5) 19 TRACK RECORD OF STRONG PERFORMANCE ACROSS MARKET ENVIRONMENTS Proven ability to generate attractive ROEs… …across different market environments… …with a strong orientation towards purchase money mortgages. (1) Represents partial year; initial public offering was May 8, 2013 (2) ROE was 7% excluding arbitration accrual of $158 million and related tax impact (3) Inside Mortgage Finance (4) Bloomberg (5) Inside Mortgage Finance for historical industry purchase mix, 2Q26 is an estimate based on Mortgage Bankers Association (7/22/26) and Fannie Mae (7/10/26) forecasts U.S. Origination Market(3) (in trillions) PFSI's Annualized Return on Average Common Stockholders' Equity (ROE) 10-Year Treasury Yield(4) |
| (1) Freddie Mac Primary Mortgage Market Survey. (2) U.S. Department of the Treasury. (3) Actual originations: Inside Mortgage Finance; Forecast originations; Average of Mortgage Bankers Association (7/22/26) and Fannie Mae (7/10/26) forecasts (4) 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 4/31/26. Residential mortgage originations are for the quarterly period ended; source: Inside Mortgage Finance CURRENT MARKET ENVIRONMENT AND MACROECONOMIC TRENDS 20 Average 30-year fixed rate mortgage(1) Macroeconomic Metrics(4) U.S. Origination Market Forecast(3) (UPB in trillions) 10-year Treasury Bond Yield(2) 6/30/25 9/30/25 12/31/25 3/31/26 6/30/26 10-year Treasury bond yield 4.2% 4.2% 4.2% 4.3% 4.5% 2/10 year Treasury yield spread 0.5% 0.5% 0.7% 0.5% 0.3% 30-year fixed rate mortgage 6.8% 6.3% 6.2% 6.4% 6.5% Secondary mortgage rate 5.5% 5.2% 5.0% 5.5% 5.3% U.S. home price appreciation (Y/Y% change) 1.9% 1.3% 1.1% 0.7% 0.8% Residential mortgage originations (in billions) $500 $495 $570 $525 $570 6.38% 6.49% 4.32% 4.47% Purchase Refinance |
| PENNYMAC’S MARKET SHARE OVER TIME ACROSS ITS BUSINESSES 21 Loan Servicing Market Share Correspondent Production Market Share(1) (1) Broker Direct Market Share(1) Consumer Direct Market Share(1) Note: All figures are for PFSI and include volume fulfilled or subserviced for PMT (1) Historical market share: Inside Mortgage Finance; excludes second lien originations. For LTM 2Q26, we estimate $2.2 trillion in total origination volume, and that the correspondent channel represented 27% of the overall origination market, retail represented 52%, and broker represented 21%. Loan servicing market share is based on PFSI’s servicing portfolio UPB of $729 billion divided by $14.9 trillion in mortgage debt outstanding |
| DELINQUENCY TRENDS AND SERVICING ADVANCES OUTSTANDING 22 Trends in Delinquency and Foreclosure Rates(1) (1) Owned MSR portfolio and includes loans acquired for sale at fair value; delinquency and foreclosure rates based on UPB; as of 6/30/26, the UPB of mortgage servicing rights owned by PFSI and loans held for sale totaled $496 billion ● Overall, mortgage delinquency rates for the MSR portfolio increased from the prior quarter, consistent with typical seasonal trends and within expected ranges for a predominately government-insured or guaranteed loan portfolio ● Servicing advances outstanding for PFSI’s MSR portfolio were approximately $526 million at June 30, 2026, down from $545 million at March 31, 2026 due to a smaller percentage of later-stage delinquencies 30-60 Day 60-90 Day 90+ Day In foreclosure |
| RECONCILIATION OF GAAP NET INCOME TO ADJUSTED EBITDA 23 Note: Figures may not sum due to rounding ($ in millions) 2Q25 1Q26 2Q26 Net income $ 136 $ 82 $ 22 Provision for (benefit from) income taxes (60) 22 10 Income before provision for income taxes 76 105 32 Depreciation and amortization 15 14 14 (Increase) decrease in fair value of MSRs and MSLs due to changes in valuation inputs used in the valuation model (16) (183) (118) Principal-only stripped MBS valuation-related accretion changes 3 14 2 Hedging losses (gains) associated with MSRs 109 207 186 Valuation gains relating to investment in closely held entities - - (9) Provision for (reversal of) losses on active loans (4) 6 8 Stock-based compensation 8 2 4 Cenlar acquisition related expenses - 3 1 Interest expense on corporate debt 70 83 83 Adjusted EBITDA $ 261 $ 251 $ 204 |
| Reconciliation of GAAP net income to adjusted net income, adjusted EPS and annualized adjusted return on equity RECONCILIATION OF GAAP ITEMS TO NON-GAAP ITEMS Note: Figures may not sum due to rounding 24 (1) Assumes a tax rate of 26.70% in 1Q25, 25.165% in 2Q25 and 3Q25, and 25.1% in 4Q25, 1Q26, and 2Q26 ($ in millions) 2Q25 3Q25 4Q25 1Q26 2Q26 Net income $ 136 $ 182 $ 107 $ 82 $ 22 (Increase) decrease in fair value of MSRs and MSLs due to changes in valuation inputs used in the valuation model (16) 102 (40) (183) (118) Principal-only stripped MBS valuation-related accretion changes 3 (7) (3) 14 2 Hedging losses (gains) associated with MSRs 109 (98) 39 207 186 Provision for (reversal of) losses on active loans (4) 0 11 6 8 Valuation gains relating to investment in closely held entities - - - - (9) Cenlar acquisition related expenses - - - 3 1 Total adjustments: 92 (2) 8 47 70 Tax impacts of adjustments(1) 23 (1) 2 12 18 Non-recurring tax adjustment (82) - - - - Adjusted net income $ 124 $ 180 $ 113 $ 118 $ 74 Diluted shares outstanding 53.6 53.9 54.2 53.9 53.3 Adjusted diluted EPS $ 2.31 $ 3.33 $ 2.08 $ 2.19 $ 1.39 Average stockholders' equity $ 3,940 $ 4,110 $ 4,238 $ 4,324 $ 4,323 Annualized adjusted return on equity 13% 17% 11% 11% 7% |
| 25 Note: Figures may not sum due to rounding RECONCILIATION OF GAAP ITEMS TO NON-GAAP ITEMS Reconciliation of GAAP servicing pretax income to servicing pretax income net of valuation related changes ($ in millions) 2Q25 3Q25 4Q25 1Q26 2Q26 Servicing pretax income $ 54 $ 157 $ 37 $ 13 $ 22 (Increase) decrease in fair value of MSRs and MSLs due to changes in valuation inputs used in the valuation model (16) 102 (40) (183) (118) Principal-only stripped MBS valuation-related accretion changes 3 (7) (3) 14 2 Hedging losses (gains) associated with MSRs 109 (98) 39 207 186 Provision for credit losses on active loans (4) 0 11 6 8 Servicing pretax income net of valuation related changes $ 146 $ 155 $ 45 $ 57 $ 99 |
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