PennyMac Financial Services Enters Material Agreement

TL;DR

PMT signed a big deal, creating new financial obligations. Details in the 8-K.

AI Summary

On December 16, 2024, PennyMac Financial Services, Inc. entered into a material definitive agreement and created a direct financial obligation. The company filed an 8-K report detailing these events, which include financial statements and exhibits.

Why It Matters

This filing indicates a significant new financial commitment or partnership for PennyMac, which could impact its future operations and financial standing.

Risk Assessment

Risk Level: medium — Entering into material definitive agreements and creating financial obligations can introduce new risks or opportunities that may affect the company's financial health.

Key Players & Entities

• PennyMac Financial Services, Inc. (company) — Registrant
• December 16, 2024 (date) — Date of earliest event reported

FAQ

Key Financial Figures

• $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
• $1,500 — to fees accruing (i) at a rate equal to $1,500 per year per early purchase facility ad

Filing Documents

• tm2431496d1_8k.htm (8-K) — 59KB
• tm2431496d1_ex10-1.htm (EX-10.1) — 230KB
• tm2431496d1_ex10-2.htm (EX-10.2) — 632KB
• tm2431496d1_ex10-3.htm (EX-10.3) — 142KB
• tm2431496d1_ex10-4.htm (EX-10.4) — 79KB
• tm2431496d1_ex10-5.htm (EX-10.5) — 763KB
• 0001104659-24-130234.txt ( ) — 2411KB
• pfsi-20241216.xsd (EX-101.SCH) — 3KB
• pfsi-20241216_lab.xml (EX-101.LAB) — 33KB
• pfsi-20241216_pre.xml (EX-101.PRE) — 22KB
• tm2431496d1_8k_htm.xml (XML) — 3KB

01 Entry into a Material Definitive Agreement

Item 1.01 Entry into a Material Definitive Agreement. On December 16, 2024, PennyMac Financial Services, Inc. (the "Company") or subsidiaries thereof entered into the following agreements: (i) Fourth Amended and Restated Management Agreement (the "Management Agreement"), by and among PennyMac Mortgage Investment Trust ("PMT"), PennyMac Operating Partnership, L.P., a wholly-owned subsidiary of PMT (the "Operating Partnership"), and PNMAC Capital Management, LLC, a wholly-owned subsidiary of the Company ("PCM"), (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 the Company ("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 directors comprised solely of independent board members, as well as the Company's full board of directors. Each of the agreements is effective as of January 1, 2025, and was 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 Manageme

03 Creation of a Direct Financial Obligation or an Obligation

Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant. The information set forth under Item 1.01 of this report is incorporated herein by reference.

01Financial Statements and Exhibits

Item 9.01Financial Statements and Exhibits. (d) Exhibits. Exhibit No. Description 10.1 Fourth Amended and Restated Management Agreement, by and among PennyMac Mortgage Investment Trust, PennyMac Operating Partnership, L.P. and PNMAC Capital Management, LLC, dated as of December 16, 2024. 10.2 Fifth Amended and Restated Flow Servicing Agreement, between PennyMac Operating Partnership, L.P. and PennyMac Loan Services, LLC, dated as of December 16, 2024. 10.3 Third Amended and Restated Mortgage Banking Service