Pennymac trims lending, fulfillment roles in layoff round

Pennymac imposed another round of layoffs ahead of its after-market earnings report on Wednesday, as the mortgage sector navigates a higher-for-longer interest-rate environment.

“Pennymac has executed well against a challenging backdrop, even as sustained high interest rates have reduced industry loan volumes and the size of the addressable market,” a company spokesperson said in a statement to HousingWire. “As we align our operations accordingly, the organization has made the difficult decision to eliminate select positions within its lending and mortgage fulfillment operations.”

Social media posts by affected employees indicate that the impacted roles include loan consultants, managers and team leaders. In one case, the impacted employee joined the company from Cenlar, a subservicer that Pennymac is in the process of acquiring for $257.5 million ($172.5 million upfront). The deal is expected to close in the second half of the year.

The company spokesperson did not disclose the number of employees laid off or provide details on the affected roles, but said the lender is offering severance support.

“As we move forward, Pennymac remains focused on building an even stronger organization, including continued investment in technology and automation to improve how we serve customers and support our people,” the spokesperson said. “Together with our disciplined approach, these investments strategically position us to grow and create new opportunities as the market recovers.”

The move comes a month after the company’s decision to close its office in Franklin, Tennessee, when staff in its consumer direct lending operations were laid off.

The Westlake Village, California-based mortgage lender and servicer posted net income of $82 million in the first quarter, down from $107 million in the prior quarter but up from $76 million in the same period last year.

Stronger mortgage production revenues helped offset weaker servicing results stemming from mortgage servicing rights (MSR) valuation changes and hedging losses. The servicing segment reported pretax income of $12.7 million, down from $37.3 million in the fourth quarter.