PennyMac Financial Announces Expansion into Commercial Real Estate Finance

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MOORPARK, Calif.--(BUSINESS WIRE)--

PennyMac Financial Services, Inc. PFSI today announced the formation of a new division, PennyMac Commercial Real Estate Finance (PCREF). The business will focus on loans that finance multifamily and other commercial real estate with a typical value of under $10 million, with the planned acquisition and securitization of such loans by PennyMac Mortgage Investment Trust PMT.

“I am excited about our entry into Commercial Real Estate Finance which complements PennyMac's existing businesses in residential mortgages and has the potential to deliver attractive returns for PFSI and PMT. The opportunity in this market is particularly attractive and fits well with the operational platform and organizational culture that distinguish PennyMac,” said Stanford L. Kurland, PennyMac Financial's Chairman and Chief Executive Officer. “We have hired a dynamic team of highly experienced commercial mortgage bankers to lead this new initiative, and I am pleased to announce that Steve Skolnik, Kevin Portnoy and Bob Roades have joined the PennyMac team.”

Steve Skolnik joins us as Chief Commercial Lending Officer, and was most recently the Chief Executive Officer and Co-Founder of ReadyCap Commercial, LLC. Kevin Portnoy is joining as Executive Vice President, Commercial Lending, from Capital Crossing, LLC where he was Director of Capital Markets. Steve Skolnik, Kevin Portnoy, and Bob Roades previously worked together at Aurora Bank/Lehman Brothers, originating, securitizing and servicing small balance commercial loans.

“Steve is a highly regarded mortgage executive whom I have known for years,” continued Mr. Kurland. “I am confident that this team will build a successful business in Commercial Real Estate Finance working closely with our existing management and the disciplined culture we have built at PennyMac.”

“Kevin, Bob and I are excited to be joining PennyMac and establishing a new business within a vibrant, growing enterprise,” Skolnik said. “Many of the attributes that have made PennyMac successful in the residential mortgage market are the same ones that are important for success in the small balance commercial market. With PennyMac's considerable capital and resources, we plan to launch a number of business channels in early 2015. PCREF will be originating through retail and conduit sales teams as well as acquiring legacy performing and non-performing pools of commercial loans.”

About PennyMac Financial Services, Inc.

PennyMac Financial Services, Inc. is a specialty financial services firm with a comprehensive mortgage platform and integrated business focused on the production and servicing of U.S. mortgage loans and the management of investments related to the U.S. mortgage market. PennyMac Financial Services, Inc. trades on the New York Stock Exchange under the symbol "PFSI." Additional information about PennyMac Financial Services, Inc. is available at www.ir.pennymacfinancial.com.

About PennyMac Mortgage Investment Trust

PennyMac Mortgage Investment Trust is a mortgage real estate investment trust (REIT) that invests primarily in residential mortgage loans and mortgage-related assets. PennyMac Mortgage Investment Trust trades on the New York Stock Exchange under the symbol "PMT" and is externally managed by PNMAC Capital Management, LLC, an indirect subsidiary of PennyMac Financial Services, Inc. Additional information about PennyMac Mortgage Investment Trust is available at www.PennyMac-REIT.com.

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,” “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: changes in federal, state and local laws and regulations applicable to the highly regulated industry in which we operate; lawsuits or governmental actions if we do not comply with the laws and regulations applicable to our businesses; the creation of the Consumer Financial Protection Bureau, or CFPB, and enforcement of its rules; changes in existing U.S. government-sponsored entities, 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 businesses, to which our bank competitors are not subject; foreclosure delays and changes in foreclosure practices; certain banking regulations that may limit our business activities; changes in macroeconomic and U.S. residential real estate market conditions; difficulties in growing loan production volume; changes in prevailing interest rates; increases in loan delinquencies and defaults; our reliance on PennyMac Mortgage Investment Trust as a significant source of financing for, and revenue related to, our correspondent production business; availability of required additional capital and liquidity to support business growth; our obligation to indemnify third-party purchasers or repurchase loans that we originate, acquire or assist in with fulfillment; our obligation to indemnify advised entities or investment funds to meet certain criteria or characteristics or under other circumstances; decreases in the historical returns on the assets that we select and manage for our clients, and our resulting management and incentive fees; regulation applicable to our investment management segment; conflicts of interest in allocating our services and investment opportunities among ourselves and our advised entities; the potential damage to our reputation and adverse impact to our business resulting from ongoing negative publicity; and our rapid growth. 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.

Investors and Media:
PennyMac Financial Services, Inc.
Christopher Oltmann
818-264-4907

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Posted In: Press Releases
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