"Spector said the transaction allows Pennymac to monetize a mature asset, freeing up capital to deploy into new, higher-coupon MSRs with greater recapture and return potential. Importantly, we retain the core elements that drive the growth of our mortgage flywheel the subservicing, recapture and marketing rights for closed-end seconds and other products, preserving our customers' ongoing relationship with PennyMac, he added."
"In a move to grow in a capital-light way, Pennymac completed the sale of $12 billion in mortgage servicing rights (MSRs) to Annaly Capital Management. The MSRs have a weighted average coupon of 3.1% and PennyMac will retain subservicing of the portfolio. At the end of September, PennyMac's servicing portfolio value rose 2% on a quarterly basis and 11% year over year to $717 billion in unpaid principal balance."
"Roughly 41% of these loans carry note rates above 5%, while 28% have rates above 6%. The company said it's seeking to add more high note-rate servicing to drive recapture opportunities. PennyMac continues to derive most of its volume from the correspondent channel, originating $27.8 billion in Q3 2025 down 7% from the previous quarter but with margins that were 5 basis points higher. The company estimates a 20% market share in that segment."
Pennymac completed the sale of $12 billion in mortgage servicing rights to Annaly Capital Management while retaining subservicing and related marketing and recapture rights. The MSRs sold carry a weighted average coupon of 3.1%, and the transaction frees capital to seek higher-coupon MSRs with greater recapture and return potential. The servicing portfolio stood at $717 billion in unpaid principal balance at quarter end, up 2% sequentially and 11% year over year, with about 41% of loans above 5% and 28% above 6%. Origination remains concentrated in the correspondent channel at $27.8 billion in Q3 2025, with broker volume of $5.6 billion and opportunities to gain share amid community bank pressures.
Read at www.housingwire.com
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