Market Overview

PennyMac Financial Services, Inc. Announces Issuance of Term Note Secured by Ginnie Mae MSRs and ESS


PennyMac Financial Services, Inc. (NYSE:PFSI) (the "Company") today
announced the completion of its fourth private offering of secured term
notes, Series 2018-GT2 (the "Notes"), in an aggregate principal amount
of $650 million issued by the Company's indirect controlled subsidiary,
PNMAC GMSR ISSUER TRUST (the "Trust"). The Notes were offered only to
qualified institutional buyers, as defined in the Securities Act of
1933, as amended (the "Securities Act"), pursuant to Rule 144A under the
Securities Act.

Further, the Company simultaneously redeemed the previously issued
secured term notes, Series 2017-GT2. The redemption amount was $500
million plus all accrued and unpaid interest.

"This transaction marks our second term note issuance this year as we
continued to optimize the existing financing of our MSR asset and raise
additional five-year debt for the Company's continued growth," said
President and Chief Executive Officer David A. Spector. "Strong investor
demand continues to help drive down our financing costs and speaks to
the Company's financial strength and operational excellence, in addition
to the emergence of MSR-backed notes as an asset class."

The secured term notes mature on August 25, 2023 and are collateralized
by Ginnie Mae mortgage servicing rights (MSRs) and excess servicing
spread (ESS) evidenced by participation certificates, which are sold to
the Trust by one of the Company's subsidiaries, PennyMac Loan Services,
LLC ("PLS"), under a master repurchase agreement. The secured term notes
bear interest at a rate of one month LIBOR plus 2.65 percent per annum
and the maturity date can be extended though a two-year step-up
provision at the Company's discretion. The secured term notes were
issued by the Trust pursuant to the terms of a third amended and
restated base indenture, which is further described in the Company's
Current Report on Form 8-K filed March 6, 2018, and the terms of a
supplemental indenture and an amendment to the base indenture executed
in connection with the offering. The term notes have been assigned an
investment grade rating of BBB- by Kroll Bond Rating Agency, and will
rank pari passu with the term notes due February 25, 2023. PLS'
obligations to the Trust under the master repurchase agreement is
guaranteed by the Company's direct controlled subsidiary, Private
National Mortgage Acceptance Company, LLC.

The secured term notes have not been and are not expected to be
registered under the Securities Act or any state securities laws and,
unless so registered, may not be offered or sold in the United States or
to U.S. persons absent an applicable exemption from the registration
requirements of the Securities Act and applicable state securities laws.

This press release does not constitute an offer to sell or the
solicitation of an offer to buy any security and shall not constitute an
offer, solicitation or sale of any security in any jurisdiction in which
such offering, solicitation or sale would be unlawful.

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.
Additional information about PennyMac Financial Services, Inc. is
available at

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: 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 businesses; 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 the
Company's 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; our dependence on
the multifamily and commercial real estate sectors for future
originations of commercial mortgage loans and other commercial real
estate related loans; changes in macroeconomic and U.S. real estate
market conditions; difficulties inherent in growing loan production
volume; 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; changes in prevailing
interest rates; increases in loan delinquencies and defaults; our
reliance on PennyMac Mortgage Investment Trust (NYSE:PMT) as a
significant source of financing for, and revenue related to, our
mortgage banking business; any required additional capital and liquidity
to support business growth that may not be available on acceptable
terms, if at all; 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 and the
Investment Funds if its services fail to meet certain criteria or
characteristics or under other circumstances; decreases in the returns
on the assets that we select and manage for our clients, and our
resulting management and incentive fees; the extensive amount of
regulation applicable to our investment management segment; 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 recent growth; our ability to effectively identify,
manage, monitor and mitigate financial risks; our initiation of new
business activities or investment strategies or expansion of existing
business activities or investment strategies; our ability to detect
misconduct and fraud; our ability to mitigate cybersecurity risks and
cyber incidents; our exposure to risks of loss with real estate
investments resulting from adverse weather conditions and man-made or
natural disasters; 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.

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