PennyMac Mortgage Investment Trust (NYSE: PMT) is a specialty finance company and real estate investment trust (REIT) that invests primarily in residential mortgage loans and mortgage-related assets in the United States. The company operates through three reportable segments: Correspondent Production, Credit Sensitive Strategies, and Interest Rate Sensitive Strategies.
The Correspondent Production segment focuses on purchasing, pooling, and reselling newly originated prime credit quality loans. PMT primarily sells these loans to government-sponsored enterprises such as Fannie Mae and Freddie Mac, or to PennyMac Loan Services for securitizations guaranteed by Ginnie Mae. The Credit Sensitive Strategies segment includes investments in credit risk transfer (CRT) agreements and subordinate mortgage-backed securities (MBS) derived from its production. The Interest Rate Sensitive Strategies segment involves investments in mortgage servicing rights (MSRs), Agency and senior non-Agency MBS, and related interest rate hedging activities.
PMT is externally managed by PNMAC Capital Management, LLC, a wholly-owned subsidiary of PennyMac Financial Services, Inc. (NYSE: PFSI). This relationship provides PMT with significant operational scale and access to extensive loan pipelines. PennyMac Loan Services, another PFSI subsidiary, conducts PMT's correspondent production operations on a fee-for-service basis and services most of the loans in its investment portfolio. The company generates revenue primarily through net investment income, net gains on investments, and loan servicing fees.
