Pennymac posts $29M profit amid expense cuts and leadership changes

Pennymac Financial Services Inc., a California-based mortgage lender and servicer, reported a net income of $29 million for the third quarter of 2026, according to HousingWire. This figure represents an 84% decline from the previous year but a 32% increase from the second quarter.

The company is facing challenges in its originations business, which has been squeezed by the highest mortgage rates in years, causing a 30% fall in originations. However, its servicing business is performing well and is expected to expand through an upcoming acquisition.

To address these challenges, Pennymac is implementing cost-cutting measures, including layoffs, aiming for approximately $160 million in annualized expense reductions from the second quarter of 2026 to the first quarter of 2027.

Leadership changes are also planned. Effective January 1, 2027, chief strategy officer Kevin Ryan will become the chief financial officer, succeeding Dan Perotti, who will stay on in an advisory role through the first quarter of 2027. Additionally, president and chief mortgage banking officer Doug Jones will retire on June 30, 2027.

Pennymac also announced an agreement to sell $29 billion in unpaid principal balance of low-coupon mortgage servicing rights. This transaction is expected to close in the fourth quarter and is projected to generate net proceeds of about $490 million, which will largely support the company’s financial position.