PennyMac Financial Services, Inc. (NYSE:PFSI) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01Entry into a Material Definitive Agreement.
Repurchase Agreements with Credit Suisse
On June 23, 2017, PennyMac Financial Services, Inc. (the
Company), through two of its controlled subsidiaries, PennyMac
Loan Services, LLC (PLS) and Private National Mortgage Acceptance
Company, LLC (PNMAC), entered into an amendment (the CS
Repurchase Amendment) to the terms of its Third Amended and
Restated Master Repurchase Agreement, dated as of April 28, 2017,
by and among Credit Suisse First Boston Mortgage Capital LLC, as
administrative agent to the buyers (CSFB), Credit Suisse AG,
Cayman Islands Branch, as a buyer (CS Cayman or CS Buyer), Alpine
Securitization LTD, as a buyer (Alpine or CS Buyer, and, together
with CS Cayman, the CS Buyers), PLS and PNMAC (the CS Repurchase
Agreement). to the terms of the CS Repurchase Agreement, PLS may
sell to, and later repurchase from, CS Buyer (i) certain newly
originated residential and small balance multifamily mortgage
loans and recently acquired Ginnie Mae early buyout mortgage
loans, and (ii) mortgage servicing advances made by PLS in
connection with certain Ginnie Mae early buyout mortgage loans.
The CS Repurchase Agreement is committed to April 27, 2018 and
the obligations of PLS under the CS Repurchase Agreement are
fully guaranteed by PNMAC.
On June 23, 2017, the Company, through PLS, also entered into an
amendment (the VFN Repurchase Amendment) to the terms of its
Master Repurchase Agreement, dated as of December 19, 2016, by
and among CSFB, as administrative agent, and CS Cayman (the VFN
Repurchase Agreement). to the VFN Repurchase Agreement, PLS sold
to CS Cayman that certain Series 2016-MSRVF1 Variable Funding
Note, dated December 19, 2016 (the VFN), with an agreement to
repurchase such VFN at a later date. The VFN Repurchase Agreement
has a term of one year.
to the terms of the CS Repurchase Amendment, the maximum combined
committed purchase price under the CS Repurchase Agreement and
the VFN Repurchase Agreement was temporarily increased from $700
million to $943 million, all of which is committed and available
for purchases under the CS Repurchase Agreement to the extent not
reduced by purchased amounts outstanding under the VFN Repurchase
Agreement. The period of the increase runs from June 23, 2017
through and including September 29, 2017. After September 29,
2017, the CS Repurchase Amendment will expire and the maximum
combined committed purchase price under the CS Repurchase
Agreement will revert back to $700 million, all of which is
committed and available for purchases under the CS Repurchase
Agreement to the extent not reduced by purchased amounts
outstanding under the VFN Repurchase Agreement.
to the terms of the VFN Repurchase Amendment, the maximum
purchase price under the VFN Repurchase Agreement was temporarily
increased from $407 million to $650 million, all of which is
committed. The period of the increase runs from June 23, 2017
through and including September 28, 2017. After September 28,
2017, the VFN Repurchase Amendment will expire and the maximum
purchase price under the VFN Repurchase Agreement will revert
back to $407 million.
The Company, through PLS, is required to pay CSFB a commitment
fee relating to the VFN Repurchase Amendment, as well as certain
other administrative costs and expenses associated with each
amendment.All other terms and conditions of the CS Repurchase
Agreement and the VFN Repurchase Agreement, including the $1.5
billion maximum combined purchase price under each, remain the
same in all material respects.
The foregoing descriptions of the CS Repurchase Amendment, the CS
Repurchase Agreement, the related guaranty, the VFN Repurchase
Amendment, and the VFN Repurchase Agreement do not purport to be
complete and are qualified in their entirety by reference to (i)
the descriptions of the CS Repurchase Agreement and the related
guaranty in the Companys Current Report on Form 8-K as filed on
May 3, 2017 and the full text of the CS Repurchase Agreement and
the related guaranty attached thereto as Exhibits 10.1 and 10.2,
respectively; and (ii) the description of the VFN Repurchase
Agreement in the Companys Current Report on Form 8-K as filed on
December 21, 2016 and the full text of the VFN Repurchase
Agreement attached thereto as Exhibit 10.9.
Item 2.03Creation 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 Current Report
on Form 8-K is incorporated herein by reference.
About PennyMac Financial Services, Inc. (NYSE:PFSI)
PennyMac Financial Services, Inc. (PFSI) is a financial services company. The Company is focused on the production and servicing of the United States residential mortgage loans and the management of investments related to the United States mortgage market. It operates through three segments: loan production, loan servicing and investment management. Its loan production segment is sourced through approximately two channels: correspondent production and consumer direct lending. Its loan servicing segment performs loan administration, collection and default management activities, including the collection and remittance of loan payments; response to customer inquiries; accounting for principal and interest; counseling delinquent mortgagors, and supervising foreclosures and property dispositions. Its investment management segment represents the activities of the Company’s investment manager, which include sourcing, performing diligence, bidding and closing investment asset acquisitions.
