PennyMac Financial Services, Inc. (NYSE: PFSI) today reported net income of $22 million, or $0.41 in diluted earnings per share (EPS), on total net revenues of $497 million for the second quarter of 2026. Adjusted net income was $74 million, or $1.39 in adjusted diluted EPS, on adjusted net revenues of $566 million1. PFSI’s Board of Directors declared a second quarter cash dividend of $0.30 per share, payable on August 27, 2026, to common stockholders of record as of August 17, 2026.
CEO Commentary
“PennyMac Financial generated a 2% annualized return on equity and a 7% annualized adjusted return on equity1 in the second quarter,” said Chairman and CEO David Spector. “While our operational execution remained solid, our results fell short of expectations due to higher interest rates during the period. As a result, we are actively taking steps to realign our cost structure to enhance profitability.”
Mr. Spector continued, “Additionally, ongoing investments in technology are providing the structural leverage required to streamline our production division and lower our cost-to-produce without compromising capacity or the customer experience. Importantly, our recapture rates improved meaningfully in the second quarter, positioning us to capture significant upside when the origination market expands. As we onboard Cenlar’s subservicing portfolio, our tech-enabled efficiency and massive scale are expected to allow us to realize substantial operating leverage. We believe this fee-based revenue stream is a key component that will help us achieve our long-term ROE targets.”
The table below highlights key financial performance metrics1:
|
($ in millions except per share metrics) |
|
2Q26 |
|
1Q26 |
|
2Q25 |
|
Q/Q |
|
Y/Y |
|||
|
Total net revenues |
|
|
497 |
|
|
545 |
|
|
445 |
|
(9)% |
|
12% |
|
Net income |
|
|
22 |
|
|
82 |
|
|
136 |
|
(74)% |
|
(84)% |
|
Diluted EPS |
|
$ |
0.41 |
|
$ |
1.53 |
|
$ |
2.54 |
|
(73)% |
|
(84)% |
|
Annualized return on equity (ROE) |
|
|
2% |
|
|
8% |
|
|
14% |
|
(6)% |
|
(12)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net revenues |
|
|
566 |
|
|
589 |
|
|
537 |
|
(4)% |
|
5% |
|
Adjusted net income |
|
|
74 |
|
|
118 |
|
|
124 |
|
(37)% |
|
(40)% |
|
Adjusted diluted EPS |
|
$ |
1.39 |
|
$ |
2.19 |
|
$ |
2.31 |
|
(37)% |
|
(40)% |
|
Annualized adjusted ROE |
|
|
7% |
|
|
11% |
|
|
13% |
|
(4)% |
|
(6)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book value per share |
|
$ |
83.49 |
|
$ |
83.31 |
|
$ |
78.04 |
|
0% |
|
7% |
|
Cash dividends declared per common share |
|
$ |
0.30 |
|
$ |
0.30 |
|
$ |
0.30 |
|
— |
|
— |
Key Operating and Financial Metrics
- Annualized ROE was 2%, down from 14% in the second quarter of 2025
- Annualized adjusted ROE was 7%2, down from 13% in the second quarter of 2025
-
Total loan acquisitions and originations were $34.9 billion in unpaid principal balance (UPB), down 8% from the second quarter of 2025
- Consumer direct originations were $5.6 billion in UPB, up 103% from the second quarter of 2025
- Production revenue margins3 were 77 basis points of total fallout adjusted lock volume, up from 55 basis points in the second quarter of 2025; production segment pretax income was $38 million, down from $58 million in the second quarter of 2025
- Owned servicing portfolio totaled $488 billion in UPB at June 30, 2026, up 5% from June 30, 2025
- Servicing segment pretax income was $22 million, down from $54 million in the second quarter of 2025; pretax income excluding valuation-related changes was $99 million, up from $57 million in the prior quarter and down from $146 million in the second quarter of 2025
- Pretax loss from Corporate and other was $29 million, compared to $35 million in the second quarter of 2025
- Book value per share was $83.49 at June 30, 2026, up 7% from June 30, 2025
Business Highlights
- Our new consumer direct loan origination system has facilitated a rapid implementation of process-automating AI agents, including the launch of a proprietary Natural Language Virtual Agent (NLVA) across both outbound and inbound calls
- Conventional first-lien refinance recapture rates increased 7 percentage points from the prior quarter to 29% and government first-lien recapture rates increased 9 percentage points from the prior quarter to 59%
- Continued to make progress on the acquisition of Cenlar’s subservicing business and expect the transaction to close in the fourth quarter
- Expanded our strategic partnership with Amazon Web Services to further bolster our transformation as an AI-driven mortgage technology leader
Guidance
- With a smaller projected origination market due to higher interest rates, we expect adjusted ROEs to remain in the high single digits through 2026 as we reduce our expense base
|
____________________ |
|
1 Items labeled as “adjusted” are non-GAAP financial measures. See pages 9 and 10 for a reconciliation of GAAP net income to adjusted net income, adjusted diluted EPS and annualized adjusted return on equity, as well as for a reconciliation of GAAP total net revenue to adjusted net revenues. |
|
2 See page 9 for a reconciliation of GAAP net income to annualized adjusted return on equity |
|
3 Presented net of loan origination expense |
Production Segment Highlights
The table below highlights key operating metrics and financial performance in the production segment:
|
|
|
2Q26 |
|
1Q26 |
|
2Q25 |
|
Q/Q |
|
Y/Y |
|
Volume ($ UPB in billions) |
|
|
|
|
|
|
|
|
|
|
|
Total fallout adjusted locks |
|
31.5 |
|
38.0 |
|
38.6 |
|
(17)% |
|
(18)% |
|
Consumer Direct |
|
4.5 |
|
6.6 |
|
2.4 |
|
(32)% |
|
87% |
|
Broker Direct |
|
6.5 |
|
7.1 |
|
5.4 |
|
(8)% |
|
21% |
|
Correspondent |
|
20.5 |
|
24.3 |
|
30.8 |
|
(16)% |
|
(33)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total acquisitions and originations |
|
34.9 |
|
37.0 |
|
37.9 |
|
(6)% |
|
(8)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Government loan first lien refinance recapture rate(1) |
|
59% |
|
50% |
|
44% |
|
9% |
|
15% |
|
Conventional loan first lien refinance recapture rate(1) |
|
29% |
|
22% |
|
17% |
|
7% |
|
12% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Profitability ($ in millions) |
|
|
|
|
|
|
|
|
|
|
|
Revenues(2) |
|
243 |
|
327 |
|
211 |
|
(26)% |
|
15% |
|
Expenses(2) |
|
205 |
|
194 |
|
153 |
|
6% |
|
34% |
|
Pretax income |
|
38 |
|
134 |
|
58 |
|
(71)% |
|
(33)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues(2) as basis points of fallout adjusted locks |
|
77 |
|
86 |
|
55 |
|
(9) |
|
23 |
|
Pretax income as basis points of fallout adjusted locks |
|
12 |
|
35 |
|
15 |
|
(23) |
|
(3) |
|
|
|
|
||||||||
|
May not sum due to rounding |
||||||||||
|
(1) Numerator = UPB of new consumer direct first lien refinance originations for existing portfolio customers; denominator = UPB of payoffs with no transfer of title or MLS listing identified |
||||||||||
|
(2) Presented net of loan origination expense |
||||||||||
Consumer direct fallout adjusted lock volumes were $4.5 billion in UPB, down from $6.6 billion in the prior quarter and up from $2.4 billion in the second quarter of 2025. The decrease from the prior quarter was driven by lower refinance volumes due to higher rates, and the increase from the second quarter of 2025 was driven by increased refinance activity and higher refinance recapture rates. Broker direct fallout adjusted lock volumes were $6.5 billion in UPB, down from $7.1 billion in the prior quarter and up from $5.4 billion in the second quarter of 2025. The increase from the second quarter of 2025 was driven by market share gains and a larger origination market. Correspondent fallout adjusted lock volumes were $20.5 billion in UPB, down from $24.3 billion in the prior quarter and $30.8 billion in the second quarter of 2025, both as a result of a highly competitive environment.
Production segment pretax income was $38 million, down from $134 million in the prior quarter and $58 million in the second quarter of 2025.
Revenues net of loan origination expenses were $243 million, down from $327 million in the prior quarter and up from $211 million in the second quarter of 2025. The decline from the prior quarter was primarily driven by lower volumes in the consumer direct and correspondent channels, and a $36 million adverse shift in post-lock impacts driven by market price changes on specialized pools and other cross-channel impacts.
Expenses net of loan origination expenses were $205 million, up from $194 million in the prior quarter and $153 million in the second quarter of 2025. The increase from the prior quarter was due to higher capacity and funded unit volume in the consumer direct lending channel.
Servicing Segment Highlights
The table below highlights key operating metrics and financial performance in the servicing segment:
|
|
|
2Q26 |
|
1Q26 |
|
2Q25 |
|
Q/Q |
|
Y/Y |
|
Servicing portfolio |
|
|
|
|
|
|
|
|
|
|
|
Total UPB ($ in billions, at period end) |
|
731 |
|
720 |
|
700 |
|
1% |
|
4% |
|
Owned servicing |
|
488 |
|
474 |
|
463 |
|
3% |
|
5% |
|
Subservicing |
|
235 |
|
237 |
|
230 |
|
(1)% |
|
2% |
|
Loans held for sale |
|
8 |
|
10 |
|
7 |
|
(22)% |
|
13% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Actual CPR (owned portfolio) |
|
11.6% |
|
13.7% |
|
8.5% |
|
(2.1)% |
|
3.1% |
|
60+ Day Delinquency (owned portfolio, at period end) |
|
4.1% |
|
4.2% |
|
3.2% |
|
(0.1)% |
|
0.9% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Profitability (in millions)(1) |
|
|
|
|
|
|
|
|
|
|
|
Loan servicing fees |
|
536 |
|
532 |
|
507 |
|
1% |
|
6% |
|
Earnings on custodial balances and deposits and other income |
|
119 |
|
105 |
|
116 |
|
13% |
|
2% |
|
Realization of mortgage servicing rights (MSR) cash flows |
|
(323) |
|
(355) |
|
(263) |
|
(9)% |
|
23% |
|
EBO loan-related income(2) |
|
37 |
|
34 |
|
32 |
|
9% |
|
15% |
|
Revenues excluding valuation-related items |
|
369 |
|
316 |
|
392 |
|
17% |
|
(6)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses |
|
76 |
|
81 |
|
77 |
|
(6)% |
|
(2)% |
|
Payoff-related expenses(3) |
|
29 |
|
31 |
|
17 |
|
(8)% |
|
66% |
|
Credit losses and provisions for defaulted loans |
|
26 |
|
23 |
|
22 |
|
13% |
|
19% |
|
Interest expense |
|
140 |
|
125 |
|
130 |
|
12% |
|
8% |
|
Expenses excluding valuation-related items |
|
270 |
|
260 |
|
246 |
|
4% |
|
10% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Pretax income excluding valuation-related items |
|
99 |
|
57 |
|
146 |
|
75% |
|
(32)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
MSR fair value changes |
|
118 |
|
183 |
|
16 |
|
N/M |
|
N/M |
|
Hedging results(4) |
|
(187) |
|
(221) |
|
(112) |
|
N/M |
|
N/M |
|
(Provision for) reversal of losses on active loans |
|
(8) |
|
(6) |
|
4 |
|
N/M |
|
N/M |
|
Valuation-related items |
|
(77) |
|
(44) |
|
(92) |
|
N/M |
|
N/M |
|
|
|
|
|
|
|
|
|
|
|
|
|
Pretax income |
|
22 |
|
13 |
|
54 |
|
71% |
|
(60)% |
|
May not sum due to rounding |
||||||||||
|
(1) Non-GAAP presentation – see pages 10 and 13 |
||||||||||
|
(2) Includes EBO related revenues and associated expenses |
||||||||||
|
(3) Includes interest shortfall and recording and release fees |
||||||||||
|
(4) Includes principal-only stripped MBS valuation-related accretion changes included in net interest income in the GAAP presentation |
||||||||||
The owned servicing portfolio totaled $488 billion in UPB at June 30, 2026, up 5% from June 30, 2025 as additions from production more than offset runoff from prepayments.
Servicing segment pretax income was $22 million, up from $13 million in the prior quarter and down from $54 million in the second quarter of 2025. Servicing segment pretax income excluding valuation-related items was $99 million, up from $57 million in the prior quarter and down from $146 million in the second quarter of 2025.
Servicing revenues excluding valuation-related items totaled $369 million, up from $316 million in the prior quarter and down from $392 million in the second quarter of 2025. The increase from the prior quarter was primarily due to lower realization of MSR cash flows, reflecting lower prepayment speeds, and an increase in earnings on custodial deposits and other income due to higher average balances. The decrease from the second quarter of 2025 was primarily due to higher realization of MSR cash flows from increased runoff partially offset by increased loan servicing fees.
Servicing expenses excluding valuation-related items were $270 million, up from $260 million in the prior quarter and $246 million in the second quarter of 2025. The increase from the prior quarter was primarily due to higher interest expense due to higher average balances of outstanding financing for MSRs. The increase from the second quarter of 2025 was primarily due to higher interest expense, payoff-related expense, as well as losses and provisions for defaulted loans.
MSR and hedging-related losses were $77 million, compared to $44 million in the prior quarter and $92 million in the second quarter of 2025. These losses included $52 million in hedge costs, compared to $14 million in the prior quarter and $54 million in the second quarter of 2025.
Corporate and Other
Pretax loss from corporate and other was $29 million, compared to $42 million in the prior quarter and $35 million in the second quarter of 2025.
Revenues were $23 million, up from $13 million in the prior quarter and $12 million in the second quarter of 2025, both primarily due to a non-recurring gain resulting from an increase in the value of our minority equity interest in Vesta.
Expenses were $52 million, down slightly from $55 million in the prior quarter and up from $47 million in the second quarter of 2025. The decrease from the prior quarter was driven primarily by lower marketing and advertising expenses, as the prior quarter contained elevated expenses related to the 2026 Winter Olympics. The increase from the second quarter of 2025 was primarily driven by higher marketing and advertising expenses and legal expenses.
Management’s slide presentation and accompanying material will be available in the Investor Relations section of the Company’s website at pfsi.pennymac.com after the market closes on Wednesday, July 29, 2026. Management will also host a conference call and live audio webcast at 5:00 p.m. Eastern Time to review the Company’s financial results. The webcast can be accessed at pfsi.pennymac.com, and a replay will be available shortly after its conclusion.
About PennyMac Financial Services, Inc.
PennyMac Financial Services, Inc. is a specialty financial services firm focused on the production and servicing of U.S. mortgage loans and the management of investments related to the U.S. mortgage market. Founded in 2008, the company is recognized as a leader in the U.S. residential mortgage industry and employs approximately 5,500 people across the country. For the twelve months ended June 30, 2026, PFSI’s production of newly originated loans totaled $151 billion in UPB, making it a top lender in the nation. As of June 30, 2026, PFSI serviced loans totaling $731 billion in UPB, making it a top mortgage servicer in the nation. Additional information about PFSI is available at pfsi.pennymac.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, regarding management’s beliefs, estimates, projections, and assumptions with respect to, among other things, our financial results, future operations, business plans and investment strategies, as well as industry and market conditions, all of which are subject to change. Words like “believe,” “expect,” “anticipate,” “promise,” “project,” “plan,” and other expressions or words of similar meanings, as well as future or conditional verbs such as “will,” “would,” “should,” “could,” or “may” are generally intended to identify forward-looking statements. Actual results and operations for any future period may vary materially from those projected herein and from past results discussed herein. Factors which could cause actual results to differ materially from historical results or those anticipated include, but are not limited to: interest rate changes; changes in macroeconomic, consumer and real estate market conditions; changes in housing prices, housing sales and real estate values; rising homeownership costs negatively impacting housing affordability; the continually changing federal, state and local laws and regulations applicable to our highly regulated industry; lawsuits or governmental actions resulting from noncompliance with laws and regulations; the mortgage lending and servicing-related regulations promulgated by federal and state regulators and the enforcement of these regulations; licensing and operational requirements of jurisdictions applicable to our business, to which our bank competitors are not subject; our ability to close and integrate acquisitions, including the acquisition of Cenlar’s subservicing business, changes to government modification programs; difficulties inherent in adjusting the size of our operations to reflect changes in business levels; purchase and sales opportunities for mortgage servicing rights; our substantial amount of indebtedness; increases in loan delinquencies, defaults and forbearances; foreclosure delays and changes in foreclosure practices; our dependence on U.S. government-sponsored entities and changes in their roles; our ability to manage third-party vendors and mortgage investor requirements; our exposure to counterparties that do not fulfill contractual obligations; our reliance on PennyMac Mortgage Investment Trust (NYSE: PMT) as a significant contributor to our mortgage banking business; maintaining sufficient capital and liquidity and compliance with financial covenants; our obligation to indemnify third-party purchasers or repurchase loans if loans that we originate, acquire, service or assist in the fulfillment of, fail to meet certain criteria; our obligation to indemnify PMT if our services fail to meet certain criteria or characteristics or under other circumstances; investment management and incentive fees; the accuracy or changes in the estimates we make about uncertainties, contingencies and asset and liability valuations; conflicts of interest in allocating our services and investment opportunities among us and our advised entity; our ability to mitigate cybersecurity risks, cyber incidents and technology disruptions; our ability to implement and develop new technologies and artificial intelligence ; the effect of public opinion on our reputation; our exposure to risks of loss and disruption in operations from severe weather events, man-made or other natural conditions, including climate change and pandemics; our ability to effectively identify, manage and hedge our credit, interest rate, prepayment, liquidity and climate risks; expansion of new business activities or strategies; our ability to detect misconduct and fraud; our ability to pay dividends to our stockholders; and our organizational structure and certain requirements in our charter documents. You should not place undue reliance on any forward- looking statement and should consider all of the uncertainties and risks described above, as well as those more fully discussed in reports and other documents filed by the Company with the Securities and Exchange Commission from time to time. The Company undertakes no obligation to publicly update or revise any forward-looking statements or any other information contained herein, and the statements made in this press release are current as of the date of this release only.
The press release contains financial information calculated other than in accordance with U.S. generally accepted accounting principles (“GAAP”), such as adjusted net income, adjusted net revenue, adjusted earnings per share, pretax income excluding valuation-related items, and adjusted return on equity. Adjustments to GAAP financial measures include items that the Company deems non-operating, non-recurring and market-driven fair value adjustments to Mortgage Servicing Rights (MSRs) and associated hedging results that change based on interest rate shifts rather than operational efficiency. These non-GAAP measures provide a meaningful perspective on the Company’s business results because the Company utilizes this information to evaluate and manage the business, and investors use this information to calculate financial and cash flow measures. These non-GAAP measures have limitations as analytical tools and should not be viewed as a substitute for financial information determined in accordance with GAAP. Furthermore, these non-GAAP measures may not be comparable to similarly titled metrics presented by other financial institutions.
|
Consolidated Statements of Income ($ in millions, except per share amounts) |
||||||||||||
|
|
|
2Q26 |
|
1Q26 |
|
4Q25 |
|
3Q25 |
|
2Q25 |
|
Y/Y |
|
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
Owned servicing fees |
|
471 |
|
469 |
|
463 |
|
460 |
|
436 |
|
8% |
|
Subservicing fees |
|
20 |
|
21 |
|
21 |
|
21 |
|
22 |
|
(6)% |
|
Ancillary and other fees |
|
45 |
|
42 |
|
48 |
|
54 |
|
50 |
|
(10)% |
|
Total loan servicing fees |
|
536 |
|
532 |
|
532 |
|
535 |
|
507 |
|
6% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Realization of MSR cash flows |
|
(323) |
|
(355) |
|
(383) |
|
(290) |
|
(263) |
|
23% |
|
Changes in fair value of MSRs due to changes in fair value inputs |
|
118 |
|
183 |
|
40 |
|
(102) |
|
16 |
|
N/M |
|
Hedging results |
|
(186) |
|
(207) |
|
(39) |
|
98 |
|
(109) |
|
N/M |
|
Net servicing income |
|
146 |
|
153 |
|
150 |
|
241 |
|
150 |
|
(3)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net gains on loans held for sale |
|
280 |
|
345 |
|
302 |
|
314 |
|
235 |
|
19% |
|
Loan origination fees |
|
70 |
|
72 |
|
68 |
|
62 |
|
59 |
|
18% |
|
Fulfillment fees from PMT |
|
5 |
|
6 |
|
7 |
|
6 |
|
6 |
|
(14)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
242 |
|
208 |
|
264 |
|
249 |
|
222 |
|
9% |
|
Interest expense |
|
(271) |
|
(250) |
|
(263) |
|
(250) |
|
(240) |
|
13% |
|
Net interest (expense) income |
|
(28) |
|
(42) |
|
1 |
|
(1) |
|
(18) |
|
60% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Management fees |
|
7 |
|
7 |
|
7 |
|
7 |
|
7 |
|
(1)% |
|
Other revenues |
|
18 |
|
4 |
|
4 |
|
4 |
|
6 |
|
N/M |
|
Total net revenues |
|
497 |
|
545 |
|
538 |
|
633 |
|
445 |
|
12% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation |
|
223 |
|
216 |
|
208 |
|
205 |
|
188 |
|
19% |
|
Technology |
|
44 |
|
46 |
|
35 |
|
45 |
|
42 |
|
5% |
|
Mortgage loan origination |
|
94 |
|
80 |
|
70 |
|
69 |
|
69 |
|
36% |
|
Professional services |
|
16 |
|
14 |
|
10 |
|
10 |
|
8 |
|
90% |
|
Servicing |
|
43 |
|
38 |
|
43 |
|
29 |
|
28 |
|
50% |
|
Occupancy and equipment |
|
11 |
|
10 |
|
10 |
|
9 |
|
8 |
|
28% |
|
Marketing and advertising |
|
17 |
|
21 |
|
10 |
|
14 |
|
12 |
|
36% |
|
Other expenses |
|
18 |
|
14 |
|
16 |
|
15 |
|
12 |
|
50% |
|
Total expenses |
|
465 |
|
440 |
|
404 |
|
397 |
|
368 |
|
26% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before provision for (benefit from) income taxes |
|
32 |
|
105 |
|
134 |
|
236 |
|
76 |
|
(59)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes |
|
10 |
|
22 |
|
28 |
|
55 |
|
(60) |
|
N/M |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
22 |
|
82 |
|
107 |
|
182 |
|
136 |
|
(84)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
51.9 |
|
52.1 |
|
52.0 |
|
51.7 |
|
51.7 |
|
1% |
|
Diluted |
|
53.3 |
|
53.9 |
|
54.2 |
|
53.9 |
|
53.6 |
|
(1)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ 0.42 |
|
$ 1.58 |
|
$ 2.05 |
|
$ 3.51 |
|
$ 2.64 |
|
(84)% |
|
Diluted |
|
$ 0.41 |
|
$ 1.53 |
|
$ 1.97 |
|
$ 3.37 |
|
$ 2.54 |
|
(84)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends declared per common share |
|
$ 0.30 |
|
$ 0.30 |
|
$ 0.30 |
|
$ 0.30 |
|
$ 0.30 |
|
— |
|
May not sum due to rounding |
||||||||||||
|
Non-GAAP Reconciliations ($ in millions, except per share amounts) |
||||||||||
|
Reconciliation of GAAP Total net revenues to Adjusted net revenues |
||||||||||
|
|
|
2Q26 |
|
1Q26 |
|
4Q25 |
|
3Q25 |
|
2Q25 |
|
Total net revenues |
|
497 |
|
545 |
|
538 |
|
633 |
|
445 |
|
Increase (decrease) in fair value of MSRs and MSLs due to changes in valuation inputs used in the valuation model |
|
118 |
|
183 |
|
40 |
|
(102) |
|
16 |
|
Hedging gains (losses) associated with MSRs(1) |
|
(187) |
|
(221) |
|
(37) |
|
105 |
|
(112) |
|
Provision for credit losses on active loans |
|
(8) |
|
(6) |
|
(11) |
|
(0) |
|
4 |
|
Non-recurring revenues(2) |
|
9 |
|
0 |
|
0 |
|
0 |
|
0 |
|
Adjusted net revenues |
|
566 |
|
589 |
|
546 |
|
630 |
|
537 |
|
May not sum due to rounding |
||||||||||
|
(1) Includes principal-only stripped MBS valuation-related accretion changes included in interest income for GAAP purposes |
||||||||||
|
(2) 2Q26 non-recurring revenues consist of a $9 million valuation gain related to investments in closely held entities |
||||||||||
|
Reconciliation of GAAP Net Income to Adjusted net income, Adjusted diluted EPS and Adjusted return on equity (ROE) |
||||||||||
|
|
|
2Q26 |
|
1Q26 |
|
4Q25 |
|
3Q25 |
|
2Q25 |
|
Net income |
|
22 |
|
82 |
|
107 |
|
182 |
|
136 |
|
(Increase) decrease in fair value of MSRs and MSLs due to changes in valuation inputs used in the valuation model |
|
(118) |
|
(183) |
|
(40) |
|
102 |
|
(16) |
|
Hedging (gains) losses associated with MSRs(1) |
|
187 |
|
221 |
|
37 |
|
(105) |
|
112 |
|
Provision for (reversal of) losses on active loans |
|
8 |
|
6 |
|
11 |
|
0 |
|
(4) |
|
Non-recurring pretax items(2) |
|
(7) |
|
3 |
|
0 |
|
0 |
|
0 |
|
Total adjustments: |
|
70 |
|
47 |
|
8 |
|
(3) |
|
92 |
|
Tax rate for adjustments |
|
25.1% |
|
25.1% |
|
25.1% |
|
25.2% |
|
25.2% |
|
Tax impacts of adjustments |
|
(18) |
|
(12) |
|
(2) |
|
1 |
|
(23) |
|
Non-recurring tax adjustment |
|
0 |
|
0 |
|
0 |
|
0 |
|
(82) |
|
Adjusted net income |
|
74 |
|
118 |
|
113 |
|
180 |
|
124 |
|
Diluted shares outstanding |
|
53.5 |
|
53.9 |
|
54.2 |
|
53.9 |
|
53.6 |
|
Adjusted diluted EPS |
|
$ 1.39 |
|
$ 2.19 |
|
$ 2.08 |
|
$ 3.33 |
|
$ 2.31 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Average stockholders’ equity |
|
4,323 |
|
4,324 |
|
4,238 |
|
4,110 |
|
3,940 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Annualized return on equity (ROE) |
|
2% |
|
8% |
|
10% |
|
18% |
|
14% |
|
Annualized adjusted ROE |
|
7% |
|
11% |
|
11% |
|
17% |
|
13% |
|
May not sum due to rounding |
||||||||||
|
(1) Includes principal-only stripped MBS valuation-related accretion changes included in interest income for GAAP purposes |
||||||||||
|
(2) 2Q26 non-recurring pretax items include a $9 million valuation gain related to investments in closely held entities and $1 million of Cenlar acquisition related expenses |
||||||||||
|
Non-GAAP Reconciliations (continued) ($ in millions) |
||||||||||
|
Reconciliation of GAAP Net income to Adjusted EBITDA |
||||||||||
|
|
|
2Q26 |
|
1Q26 |
|
4Q25 |
|
3Q25 |
|
2Q25 |
|
Net income |
|
22 |
|
82 |
|
107 |
|
182 |
|
136 |
|
Provision for (benefit from) income taxes |
|
10 |
|
22 |
|
28 |
|
55 |
|
(60) |
|
Income (loss) before provisions for income taxes |
|
32 |
|
105 |
|
134 |
|
236 |
|
76 |
|
Depreciation and amortization |
|
14 |
|
14 |
|
13 |
|
13 |
|
15 |
|
(Increase) decrease in fair value of MSRs and MSLs due to changes in valuation inputs used in the valuation model |
|
(118) |
|
(183) |
|
(40) |
|
102 |
|
(16) |
|
Hedging (gains) losses associated with MSRs(1) |
|
187 |
|
221 |
|
37 |
|
(105) |
|
112 |
|
Provision for (reversal of) losses on active loans |
|
8 |
|
6 |
|
11 |
|
0 |
|
(4) |
|
Stock-based compensation |
|
4 |
|
2 |
|
8 |
|
10 |
|
8 |
|
Non-recurring items(2) |
|
(7) |
|
3 |
|
0 |
|
0 |
|
0 |
|
Interest expense on corporate debt and capital lease |
|
83 |
|
83 |
|
83 |
|
78 |
|
70 |
|
Adjusted EBITDA |
|
204 |
|
251 |
|
246 |
|
335 |
|
261 |
|
May not sum due to rounding |
||||||||||
|
(1) Includes principal-only stripped MBS valuation-related accretion changes included in interest income for GAAP purposes |
||||||||||
|
(2) 2Q26 non-recurring pretax items include a $9 million valuation gain related to investments in closely held entities and $1 million of Cenlar acquisition related expenses |
||||||||||
|
Reconciliation of GAAP servicing pretax income to servicing pretax income net of valuation related changes |
||||||||||
|
|
|
2Q26 |
|
1Q26 |
|
4Q25 |
|
3Q25 |
|
2Q25 |
|
Servicing pretax income |
|
22 |
|
13 |
|
37 |
|
157 |
|
54 |
|
(Increase) decrease in fair value of MSRs and MSLs due to changes in valuation inputs used in the valuation model |
|
(118) |
|
(183) |
|
(40) |
|
102 |
|
(16) |
|
Hedging (gains) losses associated with MSRs(1) |
|
187 |
|
221 |
|
37 |
|
(105) |
|
112 |
|
Provision for (reversal of) losses on active loans |
|
8 |
|
6 |
|
11 |
|
0 |
|
(4) |
|
Servicing pretax income net of valuation related changes |
|
99 |
|
57 |
|
45 |
|
155 |
|
146 |
|
May not sum due to rounding |
||||||||||
|
(1) Includes principal-only stripped MBS valuation-related accretion changes included in interest income for GAAP purposes |
||||||||||
|
Production Segment Profitability and Key Metrics ($ in millions) |
||||||||||||
|
Production Segment Contribution to Pretax Income |
||||||||||||
|
|
|
2Q26 |
|
1Q26 |
|
4Q25 |
|
3Q25 |
|
2Q25 |
|
Y/Y |
|
Net gains on loans held for sale at fair value |
|
245 |
|
311 |
|
276 |
|
280 |
|
204 |
|
20% |
|
Loan origination fees |
|
70 |
|
72 |
|
68 |
|
62 |
|
59 |
|
18% |
|
Fulfillment fees from PMT |
|
5 |
|
6 |
|
7 |
|
6 |
|
6 |
|
(14)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
119 |
|
113 |
|
129 |
|
111 |
|
104 |
|
14% |
|
Interest expense |
|
(105) |
|
(96) |
|
(109) |
|
(98) |
|
(94) |
|
12% |
|
Net interest income |
|
14 |
|
17 |
|
20 |
|
14 |
|
11 |
|
35% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other revenues |
|
3 |
|
0 |
|
0 |
|
0 |
|
0 |
|
N/M |
|
Net revenues |
|
337 |
|
407 |
|
371 |
|
362 |
|
280 |
|
21% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation |
|
146 |
|
136 |
|
123 |
|
114 |
|
104 |
|
40% |
|
Technology |
|
30 |
|
30 |
|
28 |
|
31 |
|
28 |
|
8% |
|
Loan origination expenses |
|
94 |
|
80 |
|
70 |
|
69 |
|
69 |
|
36% |
|
Professional Services |
|
5 |
|
6 |
|
4 |
|
3 |
|
4 |
|
42% |
|
Occupancy and equipment |
|
6 |
|
5 |
|
5 |
|
4 |
|
4 |
|
50% |
|
Marketing and advertising |
|
12 |
|
12 |
|
9 |
|
12 |
|
10 |
|
18% |
|
Other expenses |
|
6 |
|
4 |
|
5 |
|
4 |
|
3 |
|
N/M |
|
Expenses |
|
299 |
|
273 |
|
244 |
|
239 |
|
222 |
|
35% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pretax income |
|
38 |
|
134 |
|
127 |
|
123 |
|
58 |
|
(33)% |
|
May not sum due to rounding |
||||||||||||
|
Production Segment Profitability and Key Metrics (continued) ($ UPB in billions) |
||||||||||||
|
Production Segment Volumes and Key Metrics |
||||||||||||
|
|
|
2Q26 |
|
1Q26 |
|
4Q25 |
|
3Q25 |
|
2Q25 |
|
Y/Y |
|
Volumes |
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer direct fallout adjusted locks |
|
4.5 |
|
6.6 |
|
5.0 |
|
3.9 |
|
2.4 |
|
87% |
|
Broker direct fallout adjusted locks |
|
6.5 |
|
7.1 |
|
5.6 |
|
5.9 |
|
5.4 |
|
21% |
|
Correspondent fallout adjusted locks |
|
20.5 |
|
24.3 |
|
30.5 |
|
27.2 |
|
30.8 |
|
(33)% |
|
Total fallout adjusted locks |
|
31.5 |
|
38.0 |
|
41.0 |
|
37.0 |
|
38.6 |
|
(18)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer direct originations |
|
5.6 |
|
6.0 |
|
5.2 |
|
3.1 |
|
2.8 |
|
103% |
|
Broker direct originations |
|
7.0 |
|
6.7 |
|
6.5 |
|
5.6 |
|
5.3 |
|
32% |
|
Correspondent acquisitions |
|
22.3 |
|
24.4 |
|
30.5 |
|
27.8 |
|
29.8 |
|
(25)% |
|
Total acquisitions and originations |
|
34.9 |
|
37.0 |
|
42.2 |
|
36.5 |
|
37.9 |
|
(8)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer direct locks |
|
6.1 |
|
9.2 |
|
7.4 |
|
6.0 |
|
3.8 |
|
62% |
|
Broker direct locks |
|
8.5 |
|
9.5 |
|
7.6 |
|
8.0 |
|
7.2 |
|
19% |
|
Correspondent locks |
|
21.8 |
|
26.1 |
|
31.8 |
|
29.3 |
|
32.2 |
|
(32)% |
|
Total locks |
|
36.5 |
|
44.8 |
|
46.8 |
|
43.2 |
|
43.1 |
|
(15)% |
|
Key Metrics |
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues(1) as basis points of fallout adjusted locks |
|
77 |
|
86 |
|
73 |
|
79 |
|
55 |
|
23 |
|
Pretax income as basis points of total fallout adjusted locks |
|
12 |
|
35 |
|
31 |
|
33 |
|
15 |
|
(3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer direct margins(2) |
|
3.17% |
|
2.67% |
|
2.74% |
|
3.28% |
|
4.08% |
|
(22)% |
|
Broker direct margins(2) |
|
1.04% |
|
0.99% |
|
1.01% |
|
0.97% |
|
0.87% |
|
19% |
|
PFSI correspondent margins(2) |
|
0.29% |
|
0.28% |
|
0.25% |
|
0.30% |
|
0.25% |
|
15% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% Purchase acquisitions and originations |
|
69% |
|
58% |
|
66% |
|
83% |
|
83% |
|
N/M |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Government loan first lien refinance recapture rate(3) |
|
59% |
|
50% |
|
51% |
|
48% |
|
44% |
|
15% |
|
Conventional loan first lien refinance recapture rate(3) |
|
29% |
|
22% |
|
17% |
|
16% |
|
17% |
|
12% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WA FICO at acquisition / origination |
|
742 |
|
749 |
|
747 |
|
749 |
|
746 |
|
(4) |
|
WA DTI at acquisition / origination |
|
40 |
|
40 |
|
40 |
|
40 |
|
41 |
|
(1) |
|
May not sum due to rounding |
||||||||||||
|
(1) Net of loan origination expenses |
||||||||||||
|
(2) Revenue contribution excluding post-lock impacts divided by fallout adjusted locks |
||||||||||||
|
(3) Numerator = UPB of new consumer direct first lien refinance originations for existing portfolio customers; denominator = UPB of payoffs with no transfer of title or MLS listing identified |
||||||||||||
|
Servicing Segment Profitability and Key Metrics ($ in millions) |
||||||||||||
|
Servicing Segment Contribution to Pretax Income |
||||||||||||
|
|
|
2Q26 |
|
1Q26 |
|
4Q25 |
|
3Q25 |
|
2Q25 |
|
Y/Y |
|
Owned servicing fees |
|
471 |
|
469 |
|
463 |
|
460 |
|
436 |
|
8% |
|
Subservicing fees |
|
20 |
|
21 |
|
21 |
|
21 |
|
22 |
|
(6)% |
|
Ancillary and other fees |
|
45 |
|
42 |
|
48 |
|
54 |
|
50 |
|
(10)% |
|
Total loan servicing fees |
|
536 |
|
532 |
|
532 |
|
535 |
|
507 |
|
6% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Realization of MSR cash flows |
|
(323) |
|
(355) |
|
(383) |
|
(290) |
|
(263) |
|
23% |
|
Changes in MSR fair value due to changes in valuation inputs |
|
118 |
|
183 |
|
40 |
|
(102) |
|
16 |
|
N/M |
|
Hedging results |
|
(186) |
|
(207) |
|
(39) |
|
98 |
|
(109) |
|
N/M |
|
Net loan servicing fees |
|
146 |
|
153 |
|
150 |
|
241 |
|
150 |
|
(3)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gains on loans held for sale |
|
35 |
|
34 |
|
26 |
|
34 |
|
31 |
|
15% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
123 |
|
95 |
|
135 |
|
137 |
|
117 |
|
5% |
|
Interest expense |
|
(166) |
|
(154) |
|
(154) |
|
(152) |
|
(146) |
|
14% |
|
Net interest expense |
|
(43) |
|
(59) |
|
(19) |
|
(15) |
|
(29) |
|
48% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other revenues |
|
(2) |
|
(2) |
|
(2) |
|
(1) |
|
1 |
|
N/M |
|
Net revenues |
|
137 |
|
125 |
|
154 |
|
259 |
|
153 |
|
(11)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation |
|
52 |
|
53 |
|
52 |
|
52 |
|
51 |
|
1% |
|
Technology |
|
8 |
|
11 |
|
11 |
|
10 |
|
10 |
|
(11)% |
|
Servicing |
|
43 |
|
38 |
|
43 |
|
29 |
|
28 |
|
50% |
|
Other expenses |
|
12 |
|
11 |
|
11 |
|
11 |
|
10 |
|
20% |
|
Expenses |
|
115 |
|
112 |
|
117 |
|
102 |
|
99 |
|
16% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Servicing pretax income |
|
22 |
|
13 |
|
37 |
|
157 |
|
54 |
|
(60)% |
|
May not sum due to rounding |
||||||||||||
|
Servicing Segment Profitability and Key Metrics (continued) ($ UPB in billions) |
||||||||||||
|
Servicing Segment Portfolio and Key Metrics |
||||||||||||
|
|
|
2Q26 |
|
1Q26 |
|
4Q25 |
|
3Q25 |
|
2Q25 |
|
Y/Y |
|
Servicing Portfolio ($ UPB in billions, at period end) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Owned MSR UPB |
|
488 |
|
474 |
|
462 |
|
470 |
|
463 |
|
5% |
|
Subserviced UPB |
|
235 |
|
237 |
|
263 |
|
239 |
|
230 |
|
2% |
|
Loans held for sale |
|
8 |
|
10 |
|
9 |
|
7 |
|
7 |
|
13% |
|
Total UPB |
|
731 |
|
720 |
|
734 |
|
717 |
|
700 |
|
4% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans serviced (in thousands) |
|
2,753 |
|
2,725 |
|
2,788 |
|
2,746 |
|
2,704 |
|
2% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Key Metrics (owned portfolio, at period end except CPR) |
|
|
|
|
|
|
|
|
|
|
|
|
|
60+ Day Delinquency |
|
4.1% |
|
4.2% |
|
4.2% |
|
3.4% |
|
3.2% |
|
0.9% |
|
Actual CPR |
|
11.6% |
|
13.7% |
|
13.0% |
|
8.6% |
|
8.5% |
|
3.1% |
|
Weighted average coupon |
|
5.1% |
|
5.1% |
|
5.0% |
|
4.9% |
|
4.7% |
|
0.4% |
|
Weighted average servicing fee |
|
0.39% |
|
0.39% |
|
0.39% |
|
0.39% |
|
0.39% |
|
0.00% |
|
Servicing fee multiple |
|
5.6x |
|
5.5x |
|
5.3x |
|
5.3x |
|
5.3x |
|
0.3x |
|
May not sum due to rounding |
||||||||||||
|
Corporate & Other Profitability ($ in millions) |
||||||||||||
|
|
|
2Q26 |
|
1Q26 |
|
4Q25 |
|
3Q25 |
|
2Q25 |
|
Y/Y |
|
Management fees |
|
7 |
|
7 |
|
7 |
|
7 |
|
7 |
|
(1)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
0 |
|
0 |
|
0 |
|
0 |
|
1 |
|
N/M |
|
Interest expense |
|
0 |
|
0 |
|
0 |
|
0 |
|
0 |
|
N/M |
|
Net interest income (expense) |
|
0 |
|
0 |
|
0 |
|
0 |
|
1 |
|
N/M |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other revenues |
|
16 |
|
6 |
|
6 |
|
4 |
|
4 |
|
N/M |
|
Net revenues |
|
23 |
|
13 |
|
13 |
|
12 |
|
12 |
|
98% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation |
|
25 |
|
28 |
|
33 |
|
39 |
|
32 |
|
(21)% |
|
Technology |
|
6 |
|
5 |
|
(3) |
|
4 |
|
5 |
|
20% |
|
Marketing and advertising |
|
5 |
|
9 |
|
1 |
|
1 |
|
2 |
|
170% |
|
Professional Services |
|
9 |
|
7 |
|
4 |
|
5 |
|
3 |
|
180% |
|
Occupancy and equipment |
|
2 |
|
2 |
|
2 |
|
2 |
|
2 |
|
28% |
|
Other expenses |
|
6 |
|
5 |
|
6 |
|
5 |
|
4 |
|
34% |
|
Expenses |
|
52 |
|
55 |
|
43 |
|
56 |
|
47 |
|
10% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate & Other pretax loss |
|
(29) |
|
(42) |
|
(30) |
|
(44) |
|
(35) |
|
(19)% |
|
|
||||||||||||
|
May not sum due to rounding |
||||||||||||
|
Consolidated Balance Sheets ($ in millions) |
||||||||||||
|
|
|
6/30/26 |
|
3/31/26 |
|
12/31/25 |
|
9/30/25 |
|
6/30/25 |
|
Y/Y |
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash |
|
214 |
|
220 |
|
302 |
|
622 |
|
162 |
|
32% |
|
Short-term investment at fair value |
|
534 |
|
434 |
|
410 |
|
62 |
|
462 |
|
16% |
|
Principal-only stripped mortgage-backed securities at fair value |
|
609 |
|
659 |
|
723 |
|
774 |
|
785 |
|
(22)% |
|
Loans held for sale at fair value |
|
7,820 |
|
9,954 |
|
9,123 |
|
7,490 |
|
6,961 |
|
12% |
|
Derivative assets |
|
202 |
|
283 |
|
188 |
|
202 |
|
181 |
|
12% |
|
Servicing advances, net |
|
589 |
|
623 |
|
590 |
|
396 |
|
431 |
|
37% |
|
Mortgage servicing rights at fair value |
|
10,587 |
|
10,149 |
|
9,599 |
|
9,654 |
|
9,531 |
|
11% |
|
Loans eligible for repurchase |
|
8,291 |
|
8,594 |
|
7,410 |
|
5,417 |
|
4,963 |
|
67% |
|
Other assets |
|
1,013 |
|
1,028 |
|
1,045 |
|
783 |
|
746 |
|
36% |
|
Total Assets |
|
29,859 |
|
31,944 |
|
29,389 |
|
25,401 |
|
24,222 |
|
23% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets sold under agreements to repurchase |
|
8,435 |
|
10,178 |
|
8,794 |
|
7,130 |
|
7,344 |
|
15% |
|
Mortgage loan participation purchase and sale agreements |
|
696 |
|
691 |
|
697 |
|
699 |
|
700 |
|
(1)% |
|
Notes payable secured by mortgage servicing assets |
|
1,426 |
|
1,426 |
|
1,326 |
|
1,326 |
|
1,327 |
|
7% |
|
Unsecured senior notes |
|
4,837 |
|
4,834 |
|
4,832 |
|
4,829 |
|
4,185 |
|
16% |
|
Accounts payable and accrued expenses |
|
437 |
|
459 |
|
644 |
|
476 |
|
395 |
|
11% |
|
Income taxes payable |
|
1,216 |
|
1,206 |
|
1,184 |
|
1,151 |
|
1,097 |
|
11% |
|
Liability for mortgage loans eligible for repurchase |
|
8,291 |
|
8,594 |
|
7,410 |
|
5,417 |
|
4,963 |
|
67% |
|
Other liabilities |
|
184 |
|
229 |
|
194 |
|
164 |
|
178 |
|
4% |
|
Total Liabilities |
|
25,523 |
|
27,618 |
|
25,080 |
|
21,193 |
|
20,189 |
|
26% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders’ Equity |
|
4,337 |
|
4,326 |
|
4,309 |
|
4,208 |
|
4,033 |
|
8% |
|
May not sum due to rounding |
||||||||||||
|
Capital and Liquidity ($ in millions) |
||||||||||||
|
|
|
2Q26 |
|
1Q26 |
|
4Q25 |
|
3Q25 |
|
2Q25 |
|
Y/Y |
|
Liquidity |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and short-term investments |
|
749 |
|
654 |
|
712 |
|
684 |
|
624 |
|
20% |
|
Amounts available to draw on facilities with collateral pledged |
|
3,261 |
|
3,507 |
|
3,928 |
|
4,288 |
|
3,538 |
|
(8)% |
|
Total liquidity |
|
4,010 |
|
4,161 |
|
4,639 |
|
4,972 |
|
4,163 |
|
(4)% |
|
Total liquidity as a % of MSR fair value |
|
38% |
|
41% |
|
48% |
|
52% |
|
44% |
|
(6)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total equity |
|
4,337 |
|
4,326 |
|
4,309 |
|
4,208 |
|
4,033 |
|
8% |
|
(-) Capitalized software |
|
111 |
|
112 |
|
108 |
|
105 |
|
112 |
|
(1)% |
|
Tangible equity |
|
4,226 |
|
4,214 |
|
4,201 |
|
4,103 |
|
3,920 |
|
8% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Face value of unsecured senior notes |
|
4,900 |
|
4,900 |
|
4,900 |
|
4,900 |
|
4,250 |
|
15% |
|
Face value of MSR term notes and loans |
|
1,330 |
|
1,330 |
|
1,330 |
|
1,330 |
|
1,230 |
|
8% |
|
Amount drawn on variable funding note |
|
1,145 |
|
860 |
|
410 |
|
230 |
|
905 |
|
27% |
|
Freddie Mac MSR facilities |
|
310 |
|
235 |
|
— |
|
— |
|
100 |
|
210% |
|
Face value of non-funding debt |
|
7,685 |
|
7,325 |
|
6,640 |
|
6,460 |
|
6,485 |
|
19% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Face value of assets sold under agreements to repurchase(1) |
|
7,085 |
|
9,189 |
|
8,391 |
|
6,908 |
|
6,447 |
|
10% |
|
Face value of mortgage loan participation purchase and sale agreements |
|
696 |
|
691 |
|
697 |
|
700 |
|
701 |
|
(1)% |
|
Face value of funding debt |
|
7,782 |
|
9,880 |
|
9,088 |
|
7,608 |
|
7,148 |
|
9% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Face value of total debt |
|
15,467 |
|
17,205 |
|
15,728 |
|
14,068 |
|
13,633 |
|
13% |
|
Unamortized debt issuance costs |
|
(72) |
|
(76) |
|
(80) |
|
(84) |
|
(76) |
|
(6)% |
|
Carrying value of total debt |
|
15,395 |
|
17,129 |
|
15,648 |
|
13,984 |
|
13,557 |
|
14% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
29,859 |
|
31,944 |
|
29,389 |
|
25,401 |
|
24,222 |
|
23% |
|
(-) Capitalized software |
|
111 |
|
112 |
|
108 |
|
105 |
|
112 |
|
(1)% |
|
Adjusted assets |
|
29,748 |
|
31,832 |
|
29,281 |
|
25,296 |
|
24,110 |
|
23% |
|
(-) Loans eligible for repurchase |
|
8,291 |
|
8,594 |
|
7,410 |
|
5,417 |
|
4,963 |
|
67% |
|
Adjusted assets less loans eligible for repurchase |
|
21,458 |
|
23,237 |
|
21,871 |
|
19,879 |
|
19,147 |
|
12% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital Ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-funding debt / total equity(2) |
|
1.8x |
|
1.7x |
|
1.5x |
|
1.5x |
|
1.6x |
|
0.2x |
|
Non-funding debt / tangible equity(2) |
|
1.8x |
|
1.7x |
|
1.6x |
|
1.6x |
|
1.7x |
|
0.2x |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total debt / total equity |
|
3.6x |
|
4.0x |
|
3.7x |
|
3.3x |
|
3.4x |
|
0.2x |
|
Total debt / tangible equity |
|
3.7x |
|
4.1x |
|
3.7x |
|
3.4x |
|
3.5x |
|
0.2x |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total equity / adjusted assets less loans eligible for repurchase |
|
20.2% |
|
18.6% |
|
19.7% |
|
21.2% |
|
21.1% |
|
(0.8)% |
|
Tangible equity / adjusted assets less loans eligible for repurchase |
|
19.7% |
|
18.1% |
|
19.2% |
|
20.6% |
|
20.5% |
|
(0.8)% |
|
May not sum due to rounding |
||||||||||||
|
(1) Assets sold under agreements to repurchase shown above excludes the amount drawn on variable funding note and a certain portion of the Freddie Mac MSR facilities |
||||||||||||
|
(2) Uses face value of debt outstanding |
||||||||||||
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