PennyMac Mortgage Investment Trust is a finance company that specializes in investing in residential mortgage loans and related assets. The company engages in various activities such as creating and managing financial securities based on residential loans and selling high-quality mortgages in batches.
The company has four segments: correspondent production, credit-sensitive strategies, interest-rate-sensitive strategies, and corporate activities. About 50% of the company’s income comes from the correspondent production segment, which involves buying, pooling, and reselling loans or mortgage-backed securities.
PennyMac Mortgage Investment Trust is externally managed by PennyMac Financial Services, Inc. (NYSE: PFSI). The company leverages the expertise and infrastructure of its parent company to invest in various opportunities available in the United States mortgage market. It also has servicing agreements with PFSI’s mortgage banking subsidiary, PennyMac Loan Services, LLC (PLS). PLS performs loan servicing activities such as collecting principal and interest payments, escrow account management, customer service, and loss mitigation for PMT’s portfolio.
Overall, PennyMac Mortgage Investment Trust is a real estate investment trust that specializes in providing attractive returns to its shareholders through dividends and capital appreciation by investing in residential mortgage loans and mortgage-related assets. The company leverages the expertise of its parent company, PFSI, to engage in profitable activities including correspondent production, credit-sensitive strategies, interest-rate sensitive strategies, and corporate activities. Thus, PMT offers a great opportunity for investors to benefit from the expanding U.S. housing market.