PennyMac Mortgage Investment Trust Enters Material Definitive Agreement

TL;DR

PMT just signed a big deal, could affect their finances.

AI Summary

On December 16, 2024, PennyMac Mortgage Investment Trust entered into a material definitive agreement related to its financial obligations. The filing indicates the creation of a direct financial obligation or an off-balance sheet arrangement for the registrant. Specific details regarding the nature and terms of this agreement, including any associated dollar amounts or specific counterparties, are not fully elaborated in the provided text.

Why It Matters

This filing signals a significant financial commitment or arrangement for PennyMac Mortgage Investment Trust, which could impact its balance sheet and future financial obligations.

Risk Assessment

Risk Level: medium — The filing indicates a material definitive agreement and a direct financial obligation, suggesting potential financial risks or opportunities that are not fully detailed.

Key Players & Entities

• PennyMac Mortgage Investment Trust (company) — Registrant
• December 16, 2024 (date) — Date of earliest event reported

FAQ

Key Financial Figures

• $0.01 — Common Shares of Beneficial Interest, $0.01 par value PMT New York Stock Exchan
• $2 b — ear of PMT's shareholders' equity up to $2 billion, (ii) 1.375% per year of PMT's sh
• $2 billion — PMT's shareholders' equity in excess of $2 billion and up to $5 billion, and (iii) 1.25% p
• $5 b — quity in excess of $2 billion and up to $5 billion, and (iii) 1.25% per year of PMT'
• $5 billion — PMT's shareholders' equity in excess of $5 billion. The base management fee is paid in cas
• $7.50 — loans subserviced on behalf of PMT are $7.50 per month for fixed-rate mortgage loans
• $8.50 — month for fixed-rate mortgage loans and $8.50 per month for adjustable-rate mortgage
• $18 — mortgage loan falling within a range of $18 to $80 per month and based on the delin
• $80 — e loan falling within a range of $18 to $80 per month and based on the delinquency,
• $75 — eclosure status of the mortgage loan or $75 per month if the underlying mortgaged p
• $585 — d in the Pennymac Guide, (C) the sum of $585 for each pull-through adjusted loan com
• $355 — to and including 16,500 per quarter and $355 for each pull-through adjusted loan com
• $315 — during the quarter, and (B) the sum of $315 for each purchased loan up to and inclu
• $195 — to and including 16,500 per quarter and $195 for each purchased loan exceeding 16,50
• $500 m — xceeding 16,500 per quarter, plus (iii) $500 multiplied by the number of all purchased

Filing Documents

• d916203d8k.htm (8-K) — 69KB
• d916203dex101.htm (EX-10.1) — 199KB
• d916203dex102.htm (EX-10.2) — 547KB
• d916203dex103.htm (EX-10.3) — 104KB
• d916203dex104.htm (EX-10.4) — 63KB
• d916203dex105.htm (EX-10.5) — 542KB
• 0001193125-24-282092.txt ( ) — 2014KB
• pmtu-20241216.xsd (EX-101.SCH) — 4KB
• pmtu-20241216_def.xml (EX-101.DEF) — 14KB
• pmtu-20241216_lab.xml (EX-101.LAB) — 24KB
• pmtu-20241216_pre.xml (EX-101.PRE) — 15KB
• d916203d8k_htm.xml (XML) — 9KB

From the Filing

8-K UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): December 16, 2024 PennyMac Mortgage Investment Trust (Exact name of registrant as specified in its charter) Maryland 001-34416 27-0186273 (State or other jurisdiction of incorporation) (Commission File Number) (IRS Employer Identification No.) 3043 Townsgate Road , Westlake Village , California 91361 (Address of principal executive offices) (Zip Code) (818) 224-7442 (Registrant's telephone number, including area code) Not Applicable (Former name or former address, if changed since last report) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Securities registered pursuant to Section 12(b) of the Act: Title of each class Trading Symbol(s) Name of each exchange on which registered Common Shares of Beneficial Interest, $0.01 par value PMT New York Stock Exchange 8.125% Series A Cumulative Redeemable Preferred Shares of Beneficial Interest, $0.01 par value PMT/PA New York Stock Exchange 8.00% Series B Cumulative Redeemable Preferred Shares of Beneficial Interest, $0.01 par value PMT/PB New York Stock Exchange 6.75% Series C Cumulative Redeemable Preferred Shares of Beneficial Interest, $0.01 par value PMT/PC New York Stock Exchange 8.50% Senior Note Due 2028 PMTU New York Stock Exchange Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (240.12b-2 of this chapter). Emerging growth company If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. Item1.01 Entry into a Material Definitive Agreement. On December 16, 2024, PennyMac Mortgage Investment Trust (the "Company" or "PMT") or subsidiaries thereof entered into the following agreements: (i) Fourth Amended and Restated Management Agreement (the "Management Agreement"), by and among PMT, PennyMac Operating Partnership, L.P., a wholly-owned subsidiary of PMT (the "Operating Partnership"), and PNMAC Capital Management, LLC ("PCM"), a wholly-owned subsidiary of PennyMac Financial Services, Inc. ("PFSI") , (ii) Fifth Amended and Restated Flow Servicing Agreement (the "5 th A&R Servicing Agreement"), between the Operating Partnership and PennyMac Loan Services, LLC, a wholly-owned subsidiary of PFSI ("PLS"), (iii) Third Amended and Restated Mortgage Banking Services Agreement ("MBS Agreement"), between PLS and PennyMac Corp. ("PMC"), a wholly-owned subsidiary of PMT, (iv) Third Amended and Restated MSR Recapture Agreement ("MSR Recapture Agreement"), between PLS and PMC, and (v) Amended and Restated Flow Servicing Agreement (the "A&R Servicing Agreement"), between PLS and PMC. Each of the agreements was approved by the Related Party Matters ("RPM") Committee of the Company's board of trustees comprised solely of independent trustee members, as well as the Company's full board of trustees. The RPM Committee engaged independent counsel and an independent third party consultant in connection with its consideration of the agreements, all of which were amended and restated for the primary purpose of extending the terms thereof in advance of its originally scheduled expiration date of June 30, 2025 and modifying certain fees and other terms relating thereto. Management Agreement. Pursuant to the terms of the Management Agreement, PCM manages the assets and investment strategies of PMT. For its management services, PCM collects a base management fee and may collect a performance incentive fee. The base management fee is payable quarterly and in arrears and the performance incentive fee is now payable annually and in arrears. The purpose of the Management Agreement is to align the base and performance incentive components of the management fee with PMT's investment strategies. The Management Agreement expires, unless terminated earlier in accordance with the terms of the agreement, on December 31, 2029, subject to automatic renewal for additional 18-month periods, unless terminated in accordance with the terms of the agreement. T

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View this 8-K filing on SEC EDGAR