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Pennymac Financial cuts 32 more jobs in California

Non-bank mortgage lender Pennymac Financial Services laid off 32 additional employees in July, ahead of the second-quarter earnings report due Aug. 2.

This is the California-based company’s third round of layoffs this year, as Pennymac cut its workforce by 236 employees in March and cut another 207 staff in May.

According to a Worker Accommodation and Retraining Notification (WARN) alert submitted to the Employment Development Department (EDD) on July 18, the company laid off 30 employees in its Thousand Oaks office and two others who worked from Westlake Village.

HousingWire emailed the company requesting additional information, but did not immediately receive a response.

The downsizing includes seven data science management employees, four senior analysts and three data scientists. The cuts mainly focus on the vice-presidential positions, including areas such as financial risk, secondary market and portfolio investments.

Bumping rights do not exist for these positions and employees are not represented by a union, wrote Stacy Diaz, executive vice president of human resources at Pennymac, in a letter to EDD filed May 19 and reviewed. by HousingWire.

Pennymac is expected to report second-quarter results on August 2. However, an estimate of Inside Mortgage Financing places Pennymac as the fourth largest U.S. mortgage lender by volume during the period, behind rocket mortgage, Wells Fargo and United Wholesale Mortgage.

According to the most recent data available, Pennymac reached $26 billion in issuance from April to June, down 21.8% quarter over quarter.

During the previous three months, the company reported to the Security and Exchange Commission (SEC) total loan originations and acquisitions of $33.3 billion in outstanding balance, down 29% from the prior quarter and 50% from the first quarter of 2021.

In the first quarter, its net income fell more than 50% compared to the same period in 2021. However, the company still reported net income before taxes of $234.5 million from January to March, essentially unchanged from compared to the previous quarter.

“The unprecedented increase in mortgage rates has resulted in lower overall industry origination volumes and left originators and aggregators who still hold excess operating capacity competing for a much smaller loan population,” said David Spector, president and chief executive of Pennymac, in an earnings report. call.

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