8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): January 31, 2014

PennyMac Financial Services, Inc.

 (Exact name of registrant as specified in its charter)

Delaware	001- 35916	80-0882793
(State or other jurisdiction	(Commission	(IRS Employer
of incorporation)	File Number)	Identification No.)

6101 Condor Drive, Moorpark, California	93021
(Address of principal executive offices)	(Zip Code)

(818) 224-7442

(Registrant’s telephone number, including area code)

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

oWritten communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

oSoliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

oPre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

oPre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 1.01 Entry into a Material Definitive Agreement.

On January 31, 2014, PennyMac Financial Services, Inc. (the “Company”), through two of its subsidiaries, PennyMac Loan Services, LLC (“PLS”) and Private National Mortgage Acceptance Company, LLC (“PNMAC”), entered into an amendment to its master repurchase agreement, dated as of March 17, 2011, by and among Bank of America, N.A. (“BANA”), PLS and PNMAC (the “BANA Repurchase Agreement”).

Pursuant to the terms of the BANA Repurchase Agreement, PLS may sell to, and later repurchase from, BANA newly originated residential mortgage loans that it originates or acquires from correspondent lenders through PennyMac Mortgage Investment Trust (NYSE: PMT). The principal amount paid by BANA for each eligible mortgage loan is based on a percentage of the lesser of the market value, unpaid principal balance, purchase price or take-out price of such mortgage loan. Upon PLS’s repurchase of a mortgage loan, it is required to repay BANA the principal amount related to such mortgage loan plus accrued interest (at a rate reflective of the current market and based on LIBOR plus a margin) to the date of such repurchase. The BANA Repurchase Agreement is committed to January 30, 2015, and the obligations of PLS are fully guaranteed by PNMAC.

The BANA Repurchase Agreement contains margin call provisions that provide BANA with certain rights in the event of a decline in the market value of the purchased mortgage loans.  Under these provisions, BANA may require PLS to transfer cash or additional eligible mortgage loans with an aggregate market value in an amount sufficient to eliminate any margin deficit resulting from such a decline.

The BANA Repurchase Agreement requires PLS to maintain various financial and other covenants, which include maintaining (i) a minimum tangible net worth of $200 million, (ii) a minimum of $20 million in unrestricted cash and cash equivalents, (iii) a maximum ratio of total liabilities to tangible net worth of less than 10:1, and (iv) profitability each calendar quarter.

In addition, the BANA Repurchase Agreement contains events of default (subject to certain materiality thresholds and grace periods), including payment defaults, breaches of covenants and/or certain representations and warranties, cross-defaults, guarantor defaults, servicer termination events, material adverse changes, bankruptcy or insolvency proceedings and other events of default customary for this type of transaction.  The remedies for such events of default are also customary for this type of transaction and include the acceleration of the principal amount outstanding and the liquidation by BANA of the mortgage loans then subject to the BANA Repurchase Agreement.

The amendment increases the amount of liquidity PLS is required to maintain from $10 million to $20 million, and it increases the minimum tangible net worth that PLS is required to maintain from $90 million to $200 million, in each case as set forth above. All other terms and conditions of the BANA Repurchase Agreement and the related guaranty remain the same in all material respects. The Company, through PLS, is required to pay BANA fees for the structuring of the amendment, as well as certain other administrative costs and expenses.

The foregoing description of the amendment to the BANA Repurchase Agreement does not purport to be complete and is qualified in its entirety by reference to the full text of the amendment, which has been filed with this Current Report on Form 8-K as Exhibit 10.1, and the full text of the BANA Repurchase Agreement and its amendments, which were filed as Exhibit 10.18 to the Company’s Form S-1 Registration Statement filed on February 7, 2013 and Exhibit 10.19 to the Company’s Amendment No. 3 to Form S-1 Registration Statement filed on April 22, 2013, respectively.

Item 2.02 Results of Operations and Financial Condition.

On February 5, 2014, the Company issued a press release announcing its financial results for the fiscal quarter ended December 31, 2013.  A copy of the press release and the slide presentation used in connection with the Company’s recorded presentation of financial results were made available on February 5, 2014 and are furnished as Exhibit 99.1 and Exhibit 99.2, respectively.

The information in Item 2.02 of this report, including the exhibits hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liabilities of Section 18, nor shall it be deemed incorporated by reference into any disclosure document relating to the Company, except to the extent, if any, expressly set forth by specific reference in such filing.

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Item 2.03   Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.

The information set forth in Item 1.01 of this report is incorporated herein by reference.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

Exhibit No.	Description
10.1	Amendment No. 6 to Master Repurchase Agreement, dated as of January 31, 2014, by and among Bank of America, N.A., PennyMac Loan Services, LLC and Private National Mortgage Acceptance Company, LLC.
99.1	Press Release, dated February 5, 2014, issued by PennyMac Financial Services, Inc. pertaining to its financial results for the fiscal quarter and year ended December 31, 2013.
99.2	Slide Presentation for use on February 5, 2014 in connection with a recorded presentation of financial results for the fiscal quarter and year ended December 31, 2013.

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SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	PENNYMAC FINANCIAL SERVICES, INC.
Dated: February 6, 2014	/s/ Anne D. McCallion
	Anne D. McCallion
	Chief Financial Officer

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EXHIBIT INDEX

Exhibit No.	Description
10.1	Amendment No. 6 to Master Repurchase Agreement, dated as of January 31, 2014, by and among Bank of America, N.A., PennyMac Loan Services, LLC and Private National Mortgage Acceptance Company, LLC.
99.1	Press Release, dated February 5, 2014, issued by PennyMac Financial Services, Inc. pertaining to its financial results for the fiscal quarter and year ended December 31, 2013.
99.2	Slide Presentation for use on February 5, 2014 in connection with a recorded presentation of financial results for the fiscal quarter and year ended December 31, 2013.

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EX-10.1

Exhibit 10.1

EXECUTION

AMENDMENT NO. 6
TO MASTER REPURCHASE AGREEMENT

Amendment No. 6 to Master Repurchase Agreement, dated as of January 31, 2014 (this “Amendment”), by and among Bank of America, N.A. (“Buyer”), PennyMac Loan Services, LLC (“Seller”) and Private National Mortgage Acceptance Company, LLC (the “Guarantor”).

RECITALS

Buyer, Guarantor and Seller are parties to that certain Master Repurchase Agreement, dated as of March 17, 2011, (as amended by Amendment No. 1, dated as of July 21, 2011, Amendment No. 2, dated as of March 23, 2012, Amendment No. 3, dated as of August 28, 2012, Amendment No. 4, dated as of January 3, 2013 and Amendment No. 5 to Master Repurchase Agreement, dated as of March 28, 2013, the “Existing Master Repurchase Agreement”; and as further amended by this Amendment, the “Master Repurchase Agreement”).  The Guarantor is a party to that certain Guaranty (as amended from time to time, the “Guaranty”), dated as of March 17, 2011, made by Guarantor in favor of Buyer.

Buyer, Seller and Guarantor have agreed, subject to the terms and conditions of this Amendment, that the Existing Master Repurchase Agreement be amended to reflect certain agreed upon revisions to the terms of the Existing Master Repurchase Agreement.  As a condition precedent to amending the Existing Master Repurchase Agreement, Buyer has required Guarantor to ratify and affirm the Guaranty on the date hereof.

Accordingly, Buyer, Seller and Guarantor hereby agree, in consideration of the mutual premises and mutual obligations set forth herein, that the Existing Master Repurchase Agreement is hereby amended as follows:

SECTION 1.Transactions. The Existing Master Repurchase Agreement is hereby amended by:

1.1deleting Section 1 in its entirety and replacing it with the following:

From time to time prior to the Termination Date (as hereinafter defined) the parties hereto may enter into transactions in which Seller agrees to transfer to Buyer Mortgage Loans (as hereinafter defined) on a servicing released basis against the transfer of funds by Buyer, with a simultaneous agreement by Buyer to transfer to Seller such Mortgage Loans on a servicing released basis at a date certain or on demand, against the transfer of funds by Seller.  This Agreement is a commitment by Buyer to engage in the Transactions as set forth herein not to exceed the Committed Amount; provided, that Buyer shall have no commitment to enter into any Transaction requested with respect to the Uncommitted Amount or that would result in the aggregate Purchase Price of then-outstanding Transactions to exceed the Committed Amount. All funds made available by Buyer to Seller under this Agreement will first be attributed to the Committed Amount. Each such transaction shall be referred to herein as a “Transaction” and, unless otherwise agreed in writing, shall be governed by this Agreement, including any supplemental terms or conditions contained in any annexes identified herein, as applicable hereunder.

1.2deleting Section 3(a) in its entirety and replacing it with the following (modified text underlined for review purposes):

a.  Terms.  From time to time, Buyer will purchase from Seller certain Mortgage Loans that have been originated or acquired by Seller.  This Agreement is a commitment by Buyer to enter into Transactions with Seller for an aggregate amount up to the Committed Amount.  This Agreement is not a commitment by Buyer to enter into Transactions with Seller for amounts exceeding the Committed Amount, but rather, sets forth the procedures to be used in connection with periodic requests for Buyer to enter into Transactions with Seller.  Seller hereby acknowledges that, beyond the Committed Amount, Buyer is under no obligation to agree to enter into, or to enter into, any Transaction pursuant to this Agreement.  Buyer may, without cause and for any reason whatsoever, terminate this Agreement with respect to the Uncommitted Amount at any time by providing two (2) Business Days’ prior notice to Seller.  All Purchased Mortgage Loans shall exceed or meet the Underwriting Guidelines and shall be serviced by Subservicer.  The aggregate Purchase Price of Purchased Mortgage Loans subject to outstanding Transactions shall not exceed the Aggregate Transaction Limit.

SECTION 2.Definitions. Section 2 of the Existing Master Repurchase Agreement is hereby amended by:

2.1deleting (a) the definition of “Maximum Committed Purchase Price” in its entirety and replacing all references thereto with the defined term “Aggregate Transaction Limit”, (b) the definition of “Reserve Interest Rate” in its entirety and all references thereto and (c) the definition of “FICO” in its entirety and replacing all references thereto with the defined term “FICO Score”:

2.2deleting the definitions of “Effective Date”, “LIBOR”, “Liquidity Amount”, “Noncompliant I”, “Noncompliant II” and “Total Liabilities” in their entirety and replacing with the following:

“Effective Date” has the meaning set forth in the Transactions Terms Letter.

“LIBOR” means the daily rate per annum (rounded to three (3) decimal places) for one-month U.S. dollar denominated deposits as offered to prime banks in the London interbank market, as published on the Official BBA LIBOR Fixings page by Bloomberg or in the Wall Street Journal as of the date of determination; provided, that if Buyer determines that any law, regulation, treaty or directive or any change therein or in the interpretation or application thereof, or any circumstance materially and adversely affecting the London interbank market, shall make it unlawful, impractical or commercially unreasonable for Buyer to enter into or maintain Transactions as contemplated by this Agreement using LIBOR, then Buyer may, in addition to its rights under Section 11(b) and Section 10(b)(5) herein, select an alternative rate of interest or index in its discretion.

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“Liquidity Amount” means, as of any date of determination, the sum of (a) Seller’s unrestricted and unencumbered cash and Cash Equivalents and (b) the balance in the Over/Under Account exclusive of funds held due to a Margin Deficit or Margin Call.  By way of example but not limitation, cash in escrow and/or impound accounts shall not be included in this calculation.

“Noncompliant I” means either (a) a Purchased Mortgage Loan other than a Jumbo Mortgage Loan, which has been subject to one or more Transactions hereunder for a period of greater than 30 days but not greater than 60 days, or (b) a Purchased Mortgage Loan that is a Jumbo Mortgage Loan, which has been subject to one or more Transactions hereunder for a period of greater than 180 days but not greater than 210 days.

“Noncompliant II” means either (a) a Purchased Mortgage Loan other than a Jumbo Mortgage Loan, which has been subject to one or more Transactions hereunder for a period of greater than 60 days but not greater than 90 days, or (b) a Purchased Mortgage Loan that is a Jumbo Mortgage Loan, which has been subject to one or more Transactions hereunder for a period of greater than 210 days but not greater than 240 days.

“Total Liabilities” means, as of any date of determination, the sum of (a) the total liabilities of Seller on any given date of determination, to be determined in accordance with GAAP consistent with those applied in the preparation of Seller’s financial statements, plus (b) to the extent not already included under GAAP, the total aggregate outstanding amount owed by Seller under any repurchase, refinance or other similar credit arrangements, plus (c) to the extent not already included under GAAP, any “off balance sheet” repurchase, refinance or other similar credit arrangements, less (d) non-recourse debt.

2.3adding the following defined terms in their proper alphabetical order:

“Ability to Repay Rule” means 12 CFR 1026.43(c).

“Aggregate Transaction Limit” has the meaning set forth in the Transaction Terms Letter.

“Committed Amount” has the meaning set forth in the Transaction Terms Letter.

“Facility Fee” has the meaning set forth in the Transaction Terms Letter.

“FICO Score” means the credit score of the Mortgagor provided by Fair, Isaac & Company, Inc. or such other organization providing credit scores; provided, that if (a) two separate credit scores are obtained on such origination date, the FICO Score shall be the lower credit score; and (b) three separate credit scores are obtained on such origination date, the FICO Score shall be the middle credit score.

“QM Rule” means 12 CFR 1026.43(e).

“Qualified Mortgage” means a Mortgage Loan that satisfies the criteria for a “qualified mortgage” as set forth in the QM Rule.

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“Rebuttable Presumption Qualified Mortgage” means a Qualified Mortgage with an annual percentage rate that exceeds the average prime offer rate for a comparable mortgage loan as of the date the interest rate is set by 1.5 or more percentage points for a first-lien Mortgage Loan or by 3.5 or more percentage points for a subordinate-lien Mortgage Loan.

“Safe Harbor Qualified Mortgage” means a Qualified Mortgage with an annual percentage rate that does not exceed the average prime offer rate for a comparable mortgage loan as of the date the interest rate is set by 1.5 or more percentage points for a first-lien Mortgage Loan or by 3.5 or more percentage points for a subordinate-lien Mortgage Loan.

“Trade Assignment” means an assignment to Buyer of a forward trade between an Approved Investor and Seller with respect to one or more Purchased Mortgage Loans or the related Mortgage-Backed Security, in each case in substantially the form of Exhibit M hereto, together with the related Purchase Commitment that has been fully executed, is enforceable and is in full force and effect and confirms the details of such forward trade.

“Uncommitted Amount” has the meaning set forth in the Transaction Terms Letter.

SECTION 3.Repurchase Acceleration Events.  Section 4(e) of the Existing Master Repurchase Agreement is hereby amended by (a) deleting “or” at the end of subclause (5), (b) deleting the “.” at the end of subclause (6) and replacing it with  “; or” and (c) adding the following subclause (7) at the end thereof:

(7)with respect to any Certified Mortgage Loan or Mortgage-Backed Security, if the Seller has failed to deliver the related Trade Assignment to Buyer in accordance with the requirements set forth in Section 10(b)(2)(vi) (for the avoidance of doubt, Seller and Buyer agree any Trade Assignment shall be in the form attached hereto and not in the form attached to the Custodial Agreement).

SECTION 4.Security Interest.  Section 8 of the Existing Master Repurchase Agreement is hereby amended by deleting clause (a) in its entirety and replacing it with the following (modified text underlined for review purposes):

a.Although the parties intend that all Transactions hereunder be sales and purchases and not loans, in the event any such Transactions are deemed to be loans, and in any event, Seller hereby pledges to Buyer as security for the performance by Seller of its Obligations and hereby grants, assigns and pledges to Buyer a fully perfected first priority security interest in the Purchased Mortgage Loans, any Agency Security or right to receive such Agency Security when issued to the extent backed by any of the Purchased Mortgage Loans, the Records (including, without limitation, copies of all documentation in connection with the underwriting and origination of any Purchased Mortgage Loan that evidences compliance with the Ability to Repay Rule and the QM Rule), all related Servicing Rights, the Program Agreements (to the extent such Program Agreements and Seller’s right thereunder relate to the Purchased Mortgage Loans), any related Purchase Commitments, any Property relating to the Purchased Mortgage Loans, all insurance policies and insurance proceeds relating to any Purchased Mortgage Loan or the related Mortgaged Property, including, but not limited to, any payments or proceeds under

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any related primary insurance, hazard insurance and FHA Mortgage Insurance Contracts and VA Loan Guaranty Agreements (if any), Income, the Securities Account and all amounts held therein, the Over/Under Account and all amounts held therein, Interest Rate Protection Agreements to the extent of the Purchased Mortgage Loans protected thereby, accounts (including any interest of Seller in escrow accounts) and any other contract rights, instruments, accounts, payments, rights to payment (including payments of interest or finance charges), all collateral, however defined, securing any other agreement between Seller, Guarantor or any of their Affiliates on the one hand and Buyer or any of its Affiliates on the other hand, general intangibles and other assets relating to the Purchased Mortgage Loans (including, without limitation, any other accounts) or any interest in the Purchased Mortgage Loans, and any proceeds (including the related securitization proceeds) and distributions with respect to any of the foregoing and any other property, rights, title or interests as are specified on a Trust Receipt, in all instances, whether now owned or hereafter acquired, now existing or hereafter created (collectively, the “Repurchase Assets”).

SECTION 5.Conditions Precedent.  Section 10(b) of the Existing Master Repurchase Agreement is hereby amended by:

5.1inserting the following clause (vi) immediately following subsection (2)(v):

(vi)Seller hereby acknowledges that, in order for Buyer to satisfy the “good delivery standards” of the Securities Industry and Financial Markets Association (“SIFMA”) as set forth in the SIFMA Uniform Practices Manual and SIFMA’s Uniform Practices for the Clearance and Settlement of Mortgage Backed Securities and other Related Securities, in each case, as amended from time to time, Buyer must deliver each Trade Assignment in respect of Certified Mortgage Loans or Mortgage-Backed Securities to the related Approved Investor no later than seventy-two (72) hours prior to settlement of the related Mortgage-Backed Security.  Seller hereby acknowledges and agrees to deliver to Buyer, in form and substance satisfactory to Buyer and not later than 1:00 p.m. (New York City time) on the date on which such seventy-two (72) hour period commences, each related Trade Assignment executed by Seller, together with a true and complete copy of the related Purchase Commitment for any Purchased Mortgage Loans subject to the proposed Transaction that are subject to a Purchase Commitment.

5.2inserting the following at the end thereof:

(12) Qualified Mortgage.  A schedule identifying each Mortgage Loan subject to the proposed Transaction as either a Safe Harbor Qualified Mortgage or a Rebuttable Presumption Qualified Mortgage.

(13) Additional Documentation.  Such other documents pertaining to the Transaction as Buyer may reasonably request, from time to time.

SECTION 6.Servicing.  Section 12 of the Existing Master Repurchase Agreement is hereby amended by deleting clause (d) in its entirety and replacing it with the following (modified text underlined for review purposes):

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d.  Upon the occurrence and continuance of an Event of Default hereunder, Buyer shall have the right to immediately terminate Seller’s right to service the Purchased Mortgage Loans without payment of any penalty or termination fee.  Seller shall cooperate in transferring the servicing of the Purchased Mortgage Loans to a successor servicer or subservicer appointed by Buyer in its sole discretion.  For the avoidance of doubt, any termination of the Servicer’s rights to service by the Buyer as a result of an Event of Default shall be deemed part of an exercise of the Buyer’s rights to cause the liquidation, termination or acceleration of this Agreement.

SECTION 7.Representations and Warranties.  Section 13(a) of the Existing Master Repurchase Agreement is hereby amended by deleting clause (17) in its entirety and replacing it with the following (modified text underlined for review purposes):

(17)Chief Executive Office; Jurisdiction of Organization.  On the Effective Date, Seller’s chief executive office, is, and has been, located at 6101 Condor Drive, Moorpark, CA 93021.  On the Effective Date, Seller’s jurisdiction of organization is the State of Delaware.  Seller shall provide Buyer with thirty days advance notice of any change in Seller’s principal office or place of business or jurisdiction.  Seller has no trade name.  During the preceding five years, Seller has not been known by or done business under any other name, corporate or fictitious, and has not filed or had filed against it any bankruptcy receivership or similar petitions nor has it made any assignments for the benefit of creditors.

SECTION 8.Covenants.  Section 14 of the Existing Master Repurchase Agreement is hereby amended by deleting Subsections (a), (c), (dd) and (ff), each in its entirety and replacing each respectively with the following (modified text underlined for review purposes):

a.   Adjusted Tangible Net Worth.  Seller shall maintain an Adjusted Tangible Net Worth of at least $200,000,000.

c.  Litigation.  Seller and Guarantor, as applicable, will promptly, and in any event within ten (10) days after service of process on any of the following, give to Buyer notice of all litigation, actions, suits, arbitrations, investigations (including, without limitation, any of the foregoing which are threatened or pending) or other legal or arbitrable proceedings affecting Seller, Guarantor or any of their Subsidiaries or affecting any of the Property of any of them before any Governmental Authority that (i) questions or challenges the validity or enforceability of any of the Program Agreements or any action to be taken in connection with the transactions contemplated hereby, (ii) makes a claim individually in an amount greater than $5,000,000 or in an aggregate amount greater than $10,000,000, (iii) which, individually or in the aggregate, if adversely determined, could be reasonably likely to have a Material Adverse Effect or (iv) questions or challenges compliance of any Purchased Mortgage Loan with the Ability to Repay Rule or QM Rule. On each Reporting Date, Seller and Guarantor, as applicable, will provide to Buyer a litigation docket listing all litigation, actions, suits, arbitrations, investigations (including, without limitation, any of the foregoing which are threatened or pending) or other legal or arbitrable proceedings affecting Seller, Guarantor or any of their Subsidiaries or affecting any of the Property of any of them before any Governmental Authority. Seller and Guarantor, as applicable, will promptly provide notice of any judgment, which with the passage of time, could cause an Event of Default hereunder.

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dd.  Maintenance of Liquidity.  Seller has maintained a Liquidity Amount of not less than $20,000,000.

ff.  Most Favored Status.  Seller, Guarantor and Buyer each agree that should Seller, Guarantor or any Affiliate thereof enter into a repurchase agreement, warehouse facility, guaranty or similar credit facility with any Person other than Buyer or an Affiliate of Buyer which by its terms provides any of the following (each, a “More Favorable Agreement”):

(1)  more favorable terms with respect to any guaranties or financial covenants, including without limitation covenants covering the same or similar subject matter set forth in Sections 14a, 14b, 14e, 14p, 14dd and 14kk hereof;

(2) a security interest to any Person other than Buyer or an Affiliate of Buyer in substantially all assets of Seller, Guarantor or any Affiliate thereof; or

(3) a requirement that Seller has added or will add any Person other than Buyer or an Affiliate of Buyer as a loss payee under Seller’s Fidelity Insurance;

then the Seller shall provide the Buyer with prompt notice of such more favorable terms contained in such  More Favorable Agreement and the terms of this Agreement shall be deemed automatically amended to include such more favorable terms contained in such More Favorable Agreement, such that such terms operate in favor of Buyer or an Affiliate of Buyer; provided, that in the event that such More Favorable Agreement is terminated, upon notice by Seller to Buyer of such termination, the original terms of this Agreement shall be deemed to be automatically reinstated.  Seller, Guarantor and Buyer further agree to execute and deliver any new guaranties, agreements or amendments to this Agreement evidencing such provisions, provided that the execution of such amendment shall not be a precondition to the effectiveness of such amendment, but shall merely be for the convenience of the parties hereto.  Promptly upon Seller, Guarantor or any Affiliate thereof entering into a repurchase agreement or other credit facility with any Person other than Buyer, Seller or Guarantor, as applicable, shall deliver to Buyer a true, correct and complete copy of such repurchase agreement, loan agreement, guaranty or other financing documentation.

SECTION 9.Reporting.  Section 17 of the Existing Master Repurchase Agreement is hereby amended by inserting the following at the end thereof:

h.  QM/ATR Reporting.  Seller shall deliver to Buyer, with reasonable promptness upon Buyer’s request, copies of all documentation in connection with the underwriting and origination of any Purchased Mortgage Loan that evidences compliance with the Ability to Repay Rule and the QM Rule.

SECTION 10.Notices.  Section 20 of the Existing Master Repurchase Agreement is hereby amended by deleting the address for notices to Buyer in its entirety and replacing it with the following:

If to Buyer:Bank of America, N.A.

4500 Park Granada

Mail Code: CA7-910-02-38

7

Calabasas, California 91302

Attention: Adam Gadsby, Director

Telephone: (818) 225-6541

Facsimile: (213) 457-8707

Email: Adam.Gadsby@baml.com

With copies to:

Bank of America, N.A.

One Bryant Park, 11th Floor

Mail Code: NY1-100-11-01

New York, New York 10036

Attention: Eileen Albus, Vice President, Mortgage Finance

Telephone:  (646) 855-0946

Facsimile:  (646) 855-5050

Email: Eileen.Albus@baml.com

and

Bank of America, N.A.

50 Rockefeller Plaza

Mail Code: NY1-050-12-03

New York, New York 10020

Attention: Mr. Michael McGovern Esq.

Telephone: 646-855-0183

Email: Michael.Mcgovern@bankofamerica.com

SECTION 11.Fees.  Section 34 of the Existing Master Repurchase Agreement is hereby amended by:

11.1deleting clause (a) in its entirety and replacing it with the following (modified text underlined for review purposes):

a.The Commitment Fee shall be deemed earned in full on the Effective Date and if this Agreement is renewed, thereafter on or before the anniversary of the Effective Date.  The Commitment Fee shall be paid in four equal installments, which shall be paid on the Effective Date and on the Price Differential Payment Date every third (3rd) month thereafter.  Such payment shall be made in Dollars, in immediately available funds, without deduction, set-off or counterclaim, to Buyer at such account designated by Buyer.  In the event Seller terminates this Agreement prior to the Termination Date, the unpaid portion of the Commitment Fee shall be paid in full.

11.2inserting the following at the end thereof:

c.  The Facility Fee shall be deemed earned in full on the Effective Date and if this Agreement is renewed, thereafter on or before the anniversary of the Effective Date.  The Facility Fee shall be paid in four equal installments, which shall be paid on the Effective Date and on the Price Differential Payment Date every third (3rd) month thereafter.  Such payment shall be made in Dollars, in immediately available funds, without deduction, set-off or counterclaim, to Buyer at such account designated by Buyer.  In the event Seller terminates this Agreement prior to the Termination Date, the unpaid portion of the Facility Fee shall be paid in full.

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SECTION 12.Examination and Oversight.  The Existing Master Repurchase Agreement is hereby amended by inserting the following at the end thereof as Section 40:

40.Examination and Oversight by Regulators

Seller agrees that the transactions with Buyer under this Agreement may be subject to regulatory examination and oversight by one or more Governmental Authorities.  Seller shall comply with all requests made by Buyer to assist Buyer in complying with regulatory requirements imposed on Buyer.

SECTION 13.Representations and Warranties.  Schedule 1 of the Existing Master Repurchase Agreement is hereby amended by:

13.1deleting clause (aaa) in its entirety and replacing it with the following:

(aaa) Points and Fees. All points and fees related to the Mortgage Loan were disclosed in writing to the Mortgagor in accordance with applicable state and federal law and regulation. The points and fees related to such Mortgage Loan did not exceed 3% of the total loan amount (or such other applicable limits for lower balance Mortgages) as specified under 12 CFR 1026.43(e)(3), and the points and fees were calculated using the calculation required for Qualified Mortgages under 12 CFR 1026.32(b) to determine compliance with applicable requirements.

13.2adding the following clauses (hhh) and (iii) at the end thereof:

(hhh)  Qualified Mortgage.  Each Mortgage Loan satisfies the following criteria:

(i) such Mortgage Loan is a Qualified Mortgage;

(ii) such Mortgage Loan is accurately identified in writing to Buyer as either a Safe Harbor Qualified Mortgage or a Rebuttable Presumption Qualified Mortgage;

(iii) prior to the origination of such Mortgage Loan, the related originator made a reasonable and good faith determination that the related Mortgagor would have a reasonable ability to repay such Mortgage Loan according to its terms, in accordance with, at a minimum, the eight underwriting factors set forth in 12 CFR 1026.43(c)(2); and

(iv) such Mortgage Loan is supported by documentation that evidences compliance with the Ability to Repay Rule and the QM Rule.

(iii) Ability to Repay Determination.  There is no action, suit or proceeding instituted by or against or threatened against Seller in any federal or state court or before any commission or other regulatory body (federal, state or local, foreign or domestic) that questions or challenges the compliance of any Mortgage Loan (or the related underwriting) with the Ability to Repay Rule or the QM Rule.

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SECTION 14.Temporary Increase. The Existing Master Repurchase Agreement is hereby amended by:

14.1deleting Section 3(l) in its entirety and replacing it with the following:

l.Temporary Increase.  Seller may request a temporary increase of the Aggregate Transaction Limit (a “Temporary Increase”) by submitting to Buyer an executed request for Temporary Increase in the form of Exhibit L hereto (a “Request for Temporary Increase”), setting forth the requested increased Aggregate Transaction Limit, the effective date and time of such Temporary Increase and the date and time on which such Temporary Increase shall terminate.  Buyer may from time to time, in its sole and absolute discretion, consent to such Temporary Increase, which consent shall be in writing as evidenced by Buyer’s delivery to Seller of a countersigned Request for Temporary Increase.  At any time that a Temporary Increase is in effect (and only for such time as such Temporary Increase is in effect), the Aggregate Transaction Limit shall be increased by the amount of the Temporary Increase for all purposes of this Agreement and all calculations and provisions relating to the Aggregate Transaction Limit shall refer to such increased amount.

14.2deleting Exhibit L thereto it in its entirety and replacing it with Exhibit 1 hereof.

SECTION 15.Trade Assignment.  The Existing Master Repurchase Agreement is hereby amended by adding the attached Exhibit 2 as Exhibit M at the end thereof.

SECTION 16.Fees and Expenses.  Seller hereby agrees to pay to Buyer, on demand, any and all reasonable fees, costs and expenses (including reasonable fees and expenses of counsel) incurred by Buyer in connection with the development, preparation and execution of this Amendment, irrespective of whether any transactions hereunder are executed.

SECTION 17.Conditions Precedent.  This Amendment shall become effective as of the date hereof upon Buyer’s receipt of this Amendment, executed and delivered by a duly authorized officer of Buyer, Seller and Guarantor.

SECTION 18.Limited Effect.  Except as expressly amended and modified by this Amendment, the Existing Master Repurchase Agreement shall continue to be, and shall remain, in full force and effect in accordance with its terms.

SECTION 19.Counterparts.  This Amendment may be executed by each of the parties hereto on any number of separate counterparts, each of which shall be an original and all of which taken together shall constitute one and the same instrument.

SECTION 20.Severability.  Each provision and agreement herein shall be treated as separate and independent from any other provision or agreement herein and shall be enforceable notwithstanding the unenforceability of any such other provision or agreement.

SECTION 21.GOVERNING LAW.  THE AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE CONSTRUED IN ACCORDANCE WITH, AND GOVERNED BY, THE LAW OF THE STATE OF NEW YORK, WITHOUT GIVING EFFECT TO THE CONFLICT OF LAWS PRINCIPLES THEREOF.

10

SECTION 22.Reaffirmation of Guaranty. The Guarantor hereby (i) agrees that the liability of Guarantor or rights of Buyer under the Guaranty shall not be affected as a result of this Amendment, (ii) ratifies and affirms all of the terms, covenants, conditions and obligations of the Guaranty and (iii) acknowledges and agrees that such Guaranty is and shall continue to be in full force and effect.

[SIGNATURE PAGE FOLLOWS]

11

IN WITNESS WHEREOF, the parties have caused their names to be signed hereto by their respective officers thereunto duly authorized as of the day and year first above written.

BANK OF AMERICA, N.A.,
	as Buyer
By:	/s/ Adam Robitshek
	Name: Adam Robitshek
	Title: Vice President
PENNYMAC LOAN SERVICES, LLC,
	as Seller
By:	/s/ Pamela Marsh
	Name: Pamela Marsh
	Title: Executive Vice President, Treasurer
PRIVATE NATIONAL MORTGAGE
	ACCEPTANCE COMPANY, LLC,
	as Guarantor
By:	/s/ Pamela Marsh
	Name: Pamela Marsh
	Title: Executive Vice President, Treasurer

Signature Page to Amendment No. 6 to Master Repurchase Agreement

Exhibit 1 to Amendment No 6

EXHIBIT L

REQUEST FOR TERMPORARY INCREASE

Bank of America, N.A.

One Bryant Park, 11th floor

New York, New York 10036

NY1-100-11-01

Attention: Eileen Albus

Re: The Master Repurchase Agreement, dated as of March 17, 2011 (as amended, supplemented or otherwise modified from time to time, the “Agreement”), between Bank of America, N.A. (“Buyer”), PennyMac Loan Services, LLC (“Seller”) and Private National Mortgage Acceptance Company, LLC (“Guarantor”).

Ladies and Gentlemen:

In accordance with Section 3(l) of the Agreement, Buyer hereby consents to a Temporary Increase of the Aggregate Transaction Limit, the Committed Amount or the Uncommitted Amount as further set forth below:

Amount of Temporary Increase: $                                    .

Temporary Committed Amount: $                                    .

Temporary Uncommitted Amount : $                                    .

Effective date and time:  [dd/mm/yyyy at       :         .m.]

Termination date and time:  [dd/mm/yyyy at       :         .m.]

On and after the effective date and time indicated above and until the termination date and time indicated above, the Aggregate Transaction Limit, Committed Amount, and Uncommitted Amount shall equal the Temporary Aggregate Transaction Limit, Temporary Committed Amount and Temporary Uncommitted Amount, respectively, indicated above for all purposes of the Agreement and all calculations and provisions relating to the Aggregate Transaction Limit, Committed Amount, and Uncommitted Amount shall refer to the Temporary Aggregate Transaction Limit, Temporary Committed Amount and Temporary Uncommitted Amount, respectively, including without limitation, Type Sublimits.  Unless otherwise terminated pursuant to the Agreement, this Temporary Increase shall terminate on the termination date and time indicated above.  Upon the termination of this Temporary Increase, Seller shall repurchase Purchased Mortgage Loans such that (i) the aggregate outstanding Purchase Price does not exceed the Aggregate Transaction Limit and (ii) the applicable portion of the aggregate outstanding Purchase Price does not exceed any Type Sublimit.  Seller shall repurchase

L-1

Purchased Mortgage Loans in order to reduce the aggregate outstanding Purchase Price to the Aggregate Transaction Limit (as reduced by the termination of such Temporary Increase) in accordance with Section 6 of the Agreement.

All terms used herein and not otherwise defined herein shall have the respective meanings ascribed to such terms in the Agreement.

		PennyMac Loan Services, LLC
		By:
			Name:
			Title:
Agreed and Consented by:
BANK OF AMERICA, N.A., Buyer
By:
	Name:
	Title:
Date:

L-2

Exhibit 2 to Amendment No 6

EXHIBIT M

FORM OF TRADE ASSIGNMENT

(“Approved Investor”)
(Address)

Attention:               
Fax No.:

Dear Sirs:

Attached hereto is a correct and complete copy of your confirmation of commitment (the “Commitment”), trade-dated                        ,         , to purchase

[$            of     %        year],

(Check Box)

(a)Ginnie Mae;

(b)Fannie Mae; or

(c)Freddie Mac

mortgage-backed pass-through securities (“Securities”) at a purchase price of $                       from                    on [insert Settlement Date].

Our intention is to assign $           of this Commitment’s full amount, which assignment shall be effective and shall be fully enforceable by the assignee on the Settlement Date.  This is to confirm that (i) the form of this assignment conforms to the SIFMA guidelines, (ii) the Commitment is in full force and effect, (iii) the Commitment has been assigned to [Bank of America, N.A. (“BANA”)] [Merrill Lynch Pierce Fenner & Smith Incorporated (MLPF&S)] as security for the obligations of PennyMac Loan Services, LLC, the “Seller” under that certain Master Repurchase Agreement, dated as of March 17, 2011, among Seller, Private National Mortgage Acceptance Company, LLC and Bank of America, N.A., whose acceptance of such assignment is indicated below, [and] (iv) upon delivery of this trade assignment to you by [BANA][MLPF&S] you will accept Seller’s direction set forth herein to pay [BANA][MLPF&S]  for such Securities, [(v) you will accept delivery of such Securities directly from [BANA][MLPF&S], (vi) [BANA][MLPF&S]  is obligated to make delivery of such Securities to you in accordance with the attached Commitment and (vii) you have released Seller from its obligation to deliver the Securities to you under the Commitment.]  Payment will be made “delivery versus payment (DVP)” to [BANA][MLPF&S]  in immediately available funds.

L-1

If you have any questions, please call Pamela Marsh at (805) 330-6059 or Maurice Watkins at (818) 746-2861 immediately.

	Very truly yours,
	PENNYMAC LOAN SERVICES, LLC
	By:
	Name:
	Title:
Agreed to:
[BANK OF AMERICA, N.A.] [MERRILL LYNCH PIRECE FENNER & SMITH INCORPORATED]
By:
Name:
Title:

Notice of delivery and confirmation of receipt are the obligations of [BANA] [MLPF&S].  Prompt notification of incorrect information or rejection of the trade assignment should be made to [            ].

L-2

EX-99.1

Exhibit 99.1

Investors and Media

Christopher Oltmann

(818) 746-2046

PennyMac Financial Services, Inc. Reports

Fourth Quarter 2013 Results

Moorpark, CA, February 5, 2014 — PennyMac Financial Services, Inc. (NYSE: PFSI) today reported net income of $37.3 million for the fourth quarter of 2013, on revenue of $90.4 million.  Net income attributable to PFSI common stockholders was $6.4 million, or $0.32 per diluted share.

Fourth Quarter 2013 Highlights

·Total net revenue of $90.4 million, up 4 percent from the prior quarter

·Mortgage Banking revenue of $75.7 million, up 4 percent from the prior quarter

·Investment Management revenue of $14.7 million, up 3 percent from the prior quarter

·Total loan production activity of $6.0 billion in unpaid principal balance (UPB), down 25 percent from the prior quarter

·Servicing portfolio reached $78.2 billion in UPB, up 48 percent from September 30, 2013

·Net assets under management totaled $2.0 billion, down 1 percent from September 30, 2013

·Successfully closed and transferred two previously announced bulk mortgage servicing rights (MSR) portfolio acquisitions totaling $20.1 billion in UPB, with co-investment by PennyMac Mortgage Investment Trust (NYSE: PMT) in the excess servicing spread

Full-Year 2013 Highlights

·Pretax income of $182.1 million, up 54 percent from the prior year

·Total net revenue of $386.6 million, up 46 percent from the prior year

·Mortgage Banking revenue of $330.2 million, up 44 percent from the prior year

·Investment Management revenue of $56.3 million, up 57 percent from the prior year

·Loan production totaled $31.7 billion, an increase of 44 percent from the prior year, which includes over $1 billion in originations in PFSI’s retail lending business.

1

“PennyMac Financial ended a successful year with a solid quarter despite continuing headwinds in the mortgage origination market,” said Chairman and Chief Executive Officer Stanford L. Kurland.  “We successfully completed and transferred two bulk MSR acquisitions, helping to grow our servicing portfolio by 48 percent and presenting attractive opportunities for our retail lending business.  Loan production volumes were lower, driven by a decline in the U.S. origination market.  Nevertheless, our mortgage banking revenues increased quarter-over-quarter and we remained focused on expense management, leading to a 19 percent increase in net income for the quarter.”

The following table presents the contribution of PFSI’s Mortgage Banking and Investment Management segments to pretax income:

	Quarter ended December 31, 2013
Unaudited ($ in thousands)	Mortgage banking			Investment management		Total
Revenue:
Net gains on mortgage loans held for sale at fair value	$	29,453		$	—	$	29,453
Loan origination fees	5,315			—		5,315
Fulfillment fees from PMT	11,087			—		11,087
Net servicing fees	30,500			—		30,500
Management fees	—			10,955		10,955
Carried Interest from Investment Funds	—			3,008		3,008
Net interest (expense) income:
Interest income	4,314			8		4,322
Interest expense	(4,987		)	—		(4,987		)
	(673		)	8		(665		)
Other	—			767		767
	75,682			14,738		90,420
Expenses:
Compensation	33,136			1,575		34,711
Loan origination	2,118			—		2,118
Other	11,508			396		11,904
	46,762			1,971		48,733
Pretax income	$	28,920		$	12,767	$	41,687
Segment assets at period end	$	1,481,790		$	56,022	$	1,537,812

2

Mortgage Banking Segment

PFSI’s Mortgage Banking segment consists of loan production, which includes retail lending and correspondent lending both for its own account and on behalf of PMT for which it provides fulfillment services, and loan servicing, which includes owned servicing rights and subservicing activities.  Mortgage Banking revenues were $75.7 million, an increase of 4 percent from the third quarter, driven by an increase in net servicing income.  During the quarter, PFSI’s loan production activity totaled $6.0 billion in UPB, of which $2.4 billion was fee-based fulfillment activity for PMT.

Loan Production

During the fourth quarter, PFSI originated and managed the acquisition of $3.6 billion in UPB of loans for its own account, and interest rate lock commitments (IRLCs) totaled $3.9 billion, compared to $4.3 billion and $4.1 billion, respectively, in the third quarter.  PFSI generated $29.5 million in net gains on mortgage loans held for sale in the fourth quarter, a 14 percent increase from the third quarter.  The net gain on mortgage loans held for sale is detailed in the following table:

	Quarter ended
	December 31, 2013			September 30, 2013			December 31, 2012
	($ in thousands)
MSR Value	$	50,630		$	60,051		$	39,466
Provision for representations and warranties	(909		)	(1,069		)	(1,199		)
Cash investment (1)	(31,686		)	(4,936		)	(1,664		)
Fair value changes of pipeline, inventory and hedges	11,418			(28,097		)	13,080
Net gain on mortgage loans held for sale	$	29,453		$	25,949		$	49,683

(1) Cash receipt at sale, net of cash hedge expense.

PFSI performs fulfillment services for conventional conforming and jumbo loans acquired by PMT in its correspondent lending business.  These services include, but are not limited to, reviews of loan data, documentation and appraisals to assess loan quality and risk; the approval of correspondent sellers and monitoring of their ongoing performance; and the subsequent sale and securitization of loans in the secondary mortgage markets for PMT.  Fees earned from fulfillment of correspondent loans on behalf of PMT totaled $11.1 million in the fourth quarter, compared to $18.3 million in the third quarter, primarily driven by a decrease in the volume of correspondent acquisitions by PMT in the fourth quarter.  The average fulfillment fee for the fourth quarter was 46 basis points.

3

Loan Servicing

Net loan servicing fees for the quarter ended December 31, 2013 totaled $30.5 million, an increase of 43 percent from the third quarter.  This included $1.1 million in provision for impairment of MSRs carried at lower of amortized cost or fair value and a $0.6 million reduction in fair value of MSRs carried at fair value primarily related to changes in the projected performance of government-insured and guaranteed loans, partially offset by a reduction in prepayment speed expectations during the quarter.  The following table presents a breakdown of the net servicing fees:

	Quarter ended
	December 31, 2013			September 30, 2013			December 31, 2012
	($ in thousands)
Servicing fees (1)	$	43,588		$	29,562		$	17,987
Effect of MSRs:
Amortization	(6,538		)	(5,367		)	(2,076		)
Provision for impairment of MSRs carried at lower of amortized cost or fair value	(1,094		)	(1,192		)	(1,124		)
Change in fair value of MSRs carried at fair value:
Due to changes in valuation inputs or assumptions used in valuation model	(574		)	(635		)	(332		)
Due to realization of cash flows	(2,488		)	(940		)	(1,068		)
	(3,062		)	(1,575		)	(1,400		)
Change in fair value of excess servicing spread financing liability	(2,394		)	(29		)	—
Net gains on hedging derivatives	—			—			1,372
Net loan servicing fees	$	30,500		$	21,399		$	14,759

(1) Includes contractually-specified servicing fees.

In addition, the payment of excess servicing spread to PMT for the quarter amounted to $1.1 million and is included in interest expense.

The total servicing portfolio reached $78.2 billion in UPB, an increase of 48 percent from September 30, 2013, primarily as a result of the completion of the two bulk portfolio acquisitions during the quarter totaling $20.1 billion in UPB.  Of the total servicing portfolio at December 31, 2013, prime servicing was $72.3 billion in UPB and special servicing was $5.9 billion in UPB.  The Company subservices and services under contract $31.7 billion in UPB, an increase of 7 percent from

4

September 30, 2013, due to correspondent acquisitions and distressed whole loan acquisitions by PMT.  PFSI’s MSR portfolio grew to $45.9 billion in UPB, an increase of 102 percent over the prior quarter, resulting from the purchase of the bulk MSR portfolios, the acquisition of government-insured loans via PMT’s correspondent business, and PFSI’s retail lending activities.

The table below details PFSI’s servicing portfolio as of December 31, 2013:

	December 31, 2013		September 30, 2013		December 31, 2012
	(in thousands)
Loans serviced at period end:
Prime servicing:
Subserviced for Advised Entities	$	26,788,479	$	24,540,141	$	12,993,046
Owned MSRs—Originations	22,499,847		20,024,781		8,919,765
Owned MSRs—Acquisitions	22,469,179		1,700,612		990,461
Mortgage loans held for sale	506,540		490,088		417,742
Total prime servicing	72,264,045		46,755,622		23,321,014
Special servicing:
Subserviced for Advised Entities	4,844,239		5,015,113		3,559,893
Subserviced for non-affiliates	89,361		50,379		—
Owned MSRs—Acquisitions	969,794		1,051,220		1,271,642
Total special servicing	5,903,394		6,116,712		4,831,535
Total loans serviced	$	78,167,439	$	52,872,334	$	28,152,549

Investment Management Segment

PFSI earns management fees and incentive compensation from its advised entities, which had combined net assets of approximately $2.0 billion as of December 31, 2013, a decrease of 1 percent from the third quarter.  The modest decrease was primarily driven by a reduction in PMT shareholders’ equity due to a shift in the timing of PMT’s regular dividend implemented during the quarter.  Total revenue for the Investment Management segment was $14.7 million, up 3 percent from the third quarter.  Base management fees, incentive fees, and carried interest rose 5 percent quarter-over-quarter largely due to higher management fees from PMT.  Pretax income for the segment was up 4 percent for the quarter.

5

Expenses

Expenses for the fourth quarter of 2013 totaled $48.7 million, a decrease of 7 percent from the third quarter, driven by lower compensation and other expenses.  Compensation expenses fell to $34.7 million, a 3 percent decline from the third quarter, partly as a result of headcount reductions in the third and fourth quarters.  The other expenses line item declined to $3.4 million from the third quarter in part due to lower marketing expenses.

“2013 was a transformational year for PFSI that included many important accomplishments: year-over-year servicing portfolio growth of 178 percent, loan production growth of 44 percent, and total revenue growth of 46 percent,” concluded Mr. Kurland.  “The opportunities for a non-bank lender and servicer in the U.S. mortgage markets remain substantial.  PennyMac Financial remains focused on growing volumes in correspondent and retail lending, driving servicing growth through organic production and additional MSR acquisitions, and increasing the profitability of our businesses.  We believe that PennyMac Financial is uniquely positioned with the expertise across mortgage production, servicing and investment management in addition to the operational capabilities required to successfully and sustainably manage this growth over the long term.”

Management’s slide presentation will be available in the Investor Relations section of the Company’s website at www.PennyMacFinancial.com beginning at 1:30 p.m. (Pacific Standard Time) on Wednesday, February 5, 2014.  We encourage investors to submit questions via email to InvestorRelations@pnmac.com; if any questions are submitted, we will post responses via a document on our website.

About PennyMac Financial Services, Inc.

PennyMac Financial Services, Inc. is a specialty financial services firm with a comprehensive mortgage platform and integrated business focused on the production and servicing of U.S. residential mortgage loans and the management of investments related to the U.S. residential mortgage market.  PennyMac Financial Services, Inc. trades on the New York Stock Exchange under the symbol “PFSI.” Additional information about PennyMac Financial Services, Inc. is available at www.PennyMacFinancial.com.

6

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, the Company’s 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,” “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: changes in federal, state and local laws and regulations applicable to the highly regulated industry in which we operate; lawsuits or governmental actions if we do not comply with the laws and regulations applicable to our businesses; the creation of the Consumer Financial Protection Bureau, or CFPB, and enforcement of its rules; changes in existing U.S. government-sponsored entities, their current roles or their guarantees or guidelines; changes to government mortgage modification programs; the licensing and operational requirements of states and other jurisdictions applicable to our businesses, to which our bank competitors are not subject; foreclosure delays and changes in foreclosure practices; certain banking regulations that may limit our business activities; changes in macroeconomic and U.S. residential real estate market conditions; difficulties in growing loan production volume; changes in prevailing interest rates; increases in loan delinquencies and defaults; our reliance on PennyMac Mortgage Investment Trust as a significant source of financing for, and revenue related to, our correspondent lending business; availability of required additional capital and liquidity to support business growth; our obligation to indemnify third-party purchasers or repurchase loans that we originate, acquire or assist in with fulfillment; our obligation to indemnify advised entities or investment funds to meet certain criteria or characteristics or under other circumstances; decreases in the historical returns on the assets that we select and manage for our clients, and our resulting management and incentive fees; regulation applicable to our investment management segment; conflicts of interest in allocating our services and investment opportunities among ourselves and our advised entities; the potential damage to our reputation and adverse impact to our business resulting from ongoing negative publicity; and our rapid growth. 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.

7

PENNYMAC FINANCIAL SERVICES, INC.

CONSOLIDATED BALANCE SHEETS

(In thousands, except share data)

	December 31, 2013		September 30, 2013		December 31, 2012
ASSETS
Cash	$	30,639	$	56,398	$	12,323
Short-term investments at fair value	142,582		127,487		53,164
Mortgage loans held for sale at fair value	531,004		530,248		448,384
Derivative assets	21,540		24,066		27,290
Servicing advances	154,328		105,344		93,152
Real estate acquired in settlement of loans	—		—		—
Carried Interest due from Investment Funds	61,142		58,134		47,723
Investment in PennyMac Mortgage Investment Trust at fair value	1,722		1,701		1,897
Mortgage servicing rights at lower of cost or fair value	258,751		226,090		89,177
Mortgage servicing rights at fair value	224,913		26,768		19,798
Furniture, fixtures, equipment and building improvements, net	9,837		8,498		5,065
Capitalized software, net	764		743		795
Receivable from Investment Funds	2,915		2,541		3,672
Receivable from PennyMac Mortgage Investment Trust	18,636		20,030		16,691
Deferred tax asset	63,117		54,530		—
Other	15,922		11,806		13,032
Total assets	$	1,537,812	$	1,254,384	$	832,163
LIABILITIES
Mortgage loans sold under agreements to repurchase	$	471,592	$	387,883	$	393,534
Excess servicing spread financing at fair value	138,723		2,857		—
Note payable	52,154		56,775		53,013
Derivative liabilities	2,462		5,776		509
Accounts payable and accrued expenses	46,387		53,355		36,279
Payable to PennyMac Mortgage Investment Trust	81,174		55,523		46,779
Payable to exchanged Private National Mortgage Acceptance Company, LLC unitholders under tax receivable agreement	71,056		58,615		—
Payable to Investment Funds	36,937		36,424		36,795
Liability for losses under representations and warranties	8,123		7,215		3,504
Total liabilities	908,608		664,423		570,413
STOCKHOLDERS’ EQUITY
Class A common stock, par value $0.0001 per share, 200,000,000 shares authorized, 20,812,777 shares issued and outstanding	2		2		—
Class B common stock, par value $0.0001 per share, 1,000 shares authorized, 61 shares issued and outstanding	—		—		—
Additional paid-in capital	153,000		136,484		—
Retained earnings	14,304		7,990		—
Total stockholders’ equity attributable to PennyMac Financial Services, Inc. common stockholders	167,306		144,476		—
Members’ equity attributable to Private National Mortgage Acceptance Company, LLC	—		—		261,750
Noncontrolling interests in Private National Mortgage Acceptance Company, LLC	461,898		445,485		—
Total stockholders’ equity	629,204		589,961		261,750
Total liabilities and stockholders’ equity	$	1,537,812	$	1,254,384	$	832,163

8

PENNYMAC FINANCIAL SERVICES, INC.

CONSOLIDATED STATEMENTS OF INCOME

(in thousands except per share data)

	Quarter ended
	December 31, 2013			September 30, 2013			December 31, 2012
Revenue
Net gains on mortgage loans held for sale at fair value	$	29,453		$	25,949		$	49,683
Loan origination fees	5,315			6,280			4,195
Fulfillment fees from PennyMac Mortgage Investment Trust	11,087			18,327			31,809
Net servicing fees:
Loan servicing fees
From non-affiliates	26,126			14,596			11,897
From PennyMac Mortgage Investment Trust	12,162			10,738			5,445
From Investment Funds	1,739			1,813			2,586
Mortgage servicing rebate to Investment Funds	(165		)	(362		)	(525		)
Ancillary and other fees	3,726			2,777			(1,416		)
	43,588			29,562			17,987
Amortization, impairment and change in estimated fair value of mortgage servicing rights	(13,088		)	(8,163		)	(3,228		)
Net servicing fees	30,500			21,399			14,759
Management fees:
From PennyMac Mortgage Investment Trust	8,924			8,539			4,472
From Investment Funds	2,031			2,001			2,164
	10,955			10,540			6,636
Carried Interest from Investment Funds	3,008			2,812			3,219
Net interest (expense) income:
Interest income	4,322			5,093			1,863
Interest expense	4,987			4,156			3,653
	(665		)	937			(1,790		)
Change in fair value of investment in and dividends received from PennyMac Mortgage Investment Trust	109			165			187
Other	658			785			821
Total net revenue	90,420			87,194			109,519
Expenses
Compensation	34,711			35,830			46,258
Professional services	2,705			2,831			2,030
Loan origination	2,118			2,802			1,150
Servicing	1,956			1,931			1,294
Technology	3,002			2,587			1,204
Occupancy	862			796			443
Other	3,379			5,500			1,720
Total expenses	48,733			52,277			54,099
Income before provision for income taxes	41,687			34,917			55,420
Provision for income taxes	4,430			3,493			—
Net income	37,257			31,424			$	55,420
Less: Net income attributable to noncontrolling interest	30,847			26,227
Net income attributable to PennyMac Financial Services, Inc. common stockholders	$	6,410		$	5,197
Earnings per common share
Basic	$	0.33		$	0.29
Diluted	$	0.32		$	0.28
Weighted-average common share outstanding
Basic	19,324			17,958
Diluted	75,922			75,892

9

PENNYMAC FINANCIAL SERVICES, INC.

CONSOLIDATED STATEMENTS OF INCOME

 (In thousands, except share data)

	Year ended December 31,
	2013			2012
Revenue
Net gains on mortgage loans held for sale at fair value	$	138,013		$	118,170
Loan origination fees	23,575			9,634
Fulfillment fees from PennyMac Mortgage Investment Trust	79,712			62,906
Net servicing income:
Loan servicing fees
From non-affiliates	61,523			20,673
From PennyMac Mortgage Investment Trust	39,413			18,608
From Investment Funds	7,799			11,716
Mortgage servicing rebate from (to) Investment Funds	(700		)	(885		)
Ancillary and other fees	11,426			2,245
	119,461			52,357
Amortization, impairment and change in estimated fair value of mortgage servicing rights	(29,451		)	(12,252		)
Net servicing income	90,010			40,105
Management fees:
From PennyMac Mortgage Investment Trust	32,410			12,436
From Investment Funds	7,920			9,363
	40,330			21,799
Carried Interest from Investment Funds	13,419			10,473
Net interest income (expense):
Interest income	15,632			6,354
Interest expense	16,673			7,879
	(1,041		)	(1,525		)
Change in fair value of investment in and dividends received from PennyMac Mortgage Investment Trust	41			817
Other	2,500			2,707
Total net revenue	386,559			265,086
Expenses
Compensation	148,561			124,014
Professional services	10,606			5,568
Loan origination	9,943			2,953
Technology	9,205			4,455
Servicing	7,028			3,642
Occupancy	2,745			1,521
Other	16,345			4,610
Total expenses	204,433			146,763
Income before provision for income taxes	182,126			118,323
Provision for income taxes	9,961			—
Net income	172,165			$	118,323
Less: Net income attributable to noncontrolling interest	157,765
Net income attributable to PennyMac Financial Services, Inc. common shareholders	$	14,400
Earnings per common share
Basic	$	0.83
Diluted	$	0.82
Weighted-average common shares outstanding
Basic	17,311
Diluted	75,892

(end)

10

EX-99.2

Exhibit 99.2

Fourth Quarter 2013 Earnings Report

Forward-Looking Statements 2 This presentation 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, the Company’s 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,” “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, from past results discussed herein, or from illustrative examples provided herein. Factors which could cause actual results to differ materially from historical results or those anticipated include, but are not limited to: changes in federal, state and local laws and regulations applicable to the highly regulated industry in which we operate; lawsuits or governmental actions if we do not comply with the laws and regulations applicable to our businesses; the creation of the Consumer Financial Protection Bureau, or CFPB, and enforcement of its rules; changes in existing U.S. government-sponsored entities, their current roles or their guarantees or guidelines; changes to government mortgage modification programs; the licensing and operational requirements of states and other jurisdictions applicable to our businesses, to which our bank competitors are not subject; foreclosure delays and changes in foreclosure practices; certain banking regulations that may limit our business activities; changes in macroeconomic and U.S. residential real estate market conditions; difficulties in growing loan production volume; changes in prevailing interest rates; increases in loan delinquencies and defaults; our reliance on PennyMac Mortgage Investment Trust as a significant source of financing for, and revenue related to, our correspondent lending business; availability of required additional capital and liquidity to support business growth; our obligation to indemnify third-party purchasers or repurchase loans that we originate, acquire or assist in with fulfillment; our obligation to indemnify advised entities or investment funds to meet certain criteria or characteristics or under other circumstances; decreases in the historical returns on the assets that we select and manage for our clients, and our resulting management and incentive fees; regulation applicable to our investment management segment; conflicts of interest in allocating our services and investment opportunities among ourselves and our advised entities; the potential damage to our reputation and adverse impact to our business resulting from ongoing negative publicity; and our rapid growth. 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 presentation are current as of the date of this presentation only.

Fourth Quarter Highlights 3 Pretax income of $41.7 million; diluted earnings per common share of $0.32 Total net revenue of $90.4 million, up 4% from 3Q13 Expenses totaled $48.7 million, down 7% from 3Q13 Loan production totaled $6.0 billion in unpaid principal balance (UPB), down 25% from 3Q13(1) Correspondent loan acquisitions were $5.8 billion, down 25% from 3Q13 Retail originations were $211 million, down 26% from 3Q13 Both correspondent and retail continue to gain share; higher mortgage rates continued to cause a decline in U.S. mortgage originations for the quarter, with the top lenders reporting volume declines in excess of 35 percent Servicing portfolio reached $78.2 billion in UPB, up 48% from September 30, 2013 Successfully closed and transferred previously announced bulk mortgage servicing rights (MSR) portfolio acquisitions totaling $20.1 billion in UPB Now one of the 20 largest servicers in the U.S.(2) Net assets under management totaled $2.0 billion, down 1% from September 30, 2013(3) (1) Includes $2.5 billion of fee-based fulfillment activity for PMT (2) Source: Inside Mortgage Finance, as of January 24, 2014 (3) Largely due to a reduction in PMT shareholders’ equity resulting from a shift in the timing of its quarterly dividends

Substantial Opportunity in the U.S. Mortgage Markets for Non-Banks U.S. Origination Market(4) 2010 2013 Mortgage markets remain large components of U.S. financial services $10 trillion in mortgage debt outstanding (servicing) at year-end $1.2 trillion in originations forecast for 2014(1) -opportunities in the retail, correspondent, and wholesale channels In the post-crisis era, large banks have been retreating, creating opportunities for non-banks with the capital, expertise, and requisite operational capabilities Substantial transfers of mortgage assets to new firms in the last 3 years alone Over $1 trillion in UPB of loan servicing(2) Over $50 billion in UPB of distressed whole loans(3) We expect these shifts to continue, providing significant growth opportunities for PennyMac U.S. Servicing Market(4) Dec. 2010 Sept. 2013 PennyMac was the 10th largest originator by volume in 2013(5) PFSI was the 20th largest servicer by UPB in 3Q13 Banks in top 20(6) Non-banks in top 20(7) Firms outside top 20 (1) Source: Average of Mortgage Bankers Association, Fannie Mae and Freddie Mac mortgage market forecasts as of January 2014 (2) Source: Goldman Sachs (3) Source: PNMAC Capital Management estimate (4) Source: Inside Mortgage Finance (5) Includes loan acquisitions by PMT in correspondent lending and originations by PFSI’s retail lending business (6) Market share held by banks that are among the 20 largest originators in the U.S. by volume or servicers by unpaid principal balance (7) Market share held by nonbank firms that are among the 20 largest originators in the U.S. by volume or servicers by unpaid principal balance 4

2010 PFSI Has Developed in a Sustainable Manner for Long-Term Growth 2009 2011 2012 2013 1,373 1,028 435 Employees at year end 230 128 PFSI completed initial public offering Opened additional servicing facility in Fort Worth Servicing UPB reaches $78 billion Primary operations moved to new flagship facility in Moorpark, CA Correspondent leadership team expands 5 2008 Servicing leadership team strengthened Correspondent lending system launches Opened Tampa facility for correspondent fulfillment operations Becomes largest non-bank correspondent aggregator Correspondent Lending Group (CLG) established with a focus on product development Organic growth with a focus on the quality of our operations Culture of building management, processes and systems before adding large transaction volumes Disciplined growth, in recognition of the demands of the GSEs and other Agencies, our financing partners and regulators Operations launched De novo build of legacy-free mortgage servicer 72

PFSI’s Full Range of Capabilities for Mortgage Banking and Investment Management Loan Production Servicing Capital Markets Credit Governance Corporate Public Company Management 6 Correspondent acquisitions Counterparty review and management Consumer direct lending Consumer marketing Loan fulfillment systems and operations Underwriting Loan program / product development GSE/Agency relationship management Appraisal review Quality control Secondary marketing Mortgage structuring and trading Pooling and securitization Hedging / interest rate risk management Transaction management Customer service and collections Default management (special servicing) Systems/workflow development Loan administration Investor accounting Portfolio strategy Compliance (mortgage lending, securities-related, corporate) Internal audit Enterprise risk management Strategic planning Finance Accounting IT infrastructure and development Treasury Legal Capabilities in place to manage multiple complex, regulated entities Over 1,300 employees led by a highly experienced management team (60 senior-most executives have on average 23 years of relevant industry experience)

PFSI’s Revenues Continue to Grow Steadily and Diversify Total net revenue grew 46% in 2013, in spite of volatile markets Loan Servicing and Investment Management revenues, which are mostly recurring fees, grew to more than one third of total net revenue Relatively more stable businesses that are increasingly important components of PFSI’s business model Loan production businesses generate fee income and MSR assets and drive organic growth of the servicing portfolio Total Net Revenue 37% ($ in millions) 7

Market Environment and Outlook 8 Correspondent Lending Competition Jumbo Private-Label Securitization Mortgage Originations and Housing Distressed Whole Loans (1) Source: Average of Mortgage Bankers Association, Fannie Mae and Freddie Mac mortgage market forecasts as of January 2014. Mortgage Servicing Rights Increased interest rates result in a smaller mortgage origination market; $1.2 trillion in originations forecast for 2014, >60% expected to be purchase money(1) Home purchase demand aided by improving U.S. employment and economic outlook Reduced origination market has led to tight margins Opportunities for improved economics from smaller originators and best efforts deliveries Pipeline of distressed whole loan opportunities remains strong; increased competition from new entrants Home price appreciation expected to moderate from 2013 growth rates Alternatives to property resolution (e.g., modification, refinance) are increasingly important strategies to maximize returns Bulk portfolio opportunities, including legacy MSRs from money-center banks, expected to continue Limited market for private-label securities – significant near-term challenge Banks’ originations and acquisitions for balance sheet comprise most of current jumbo activity; potential for nonbanks such as PMT to aggregate and sell Policy actions on conforming loan limits and GSE reform will affect potential for jumbo market

Growth Trends Across PennyMac Financial’s Businesses 9 Loan Production Loan Servicing Mortgage Banking Investment Management Loan Production UPB(1) Loan Servicing UPB Net Assets Under Mgmt. (AUM) (At period end) (For the quarterly period) (1) Includes loans purchased by PMT for which PFSI earns a fulfillment fee Bulk Agency MSR acquisitions successfully closed and transferred in 4Q13 as scheduled Continued organic growth of prime servicing from loan production activities Special servicing growth from PMT’s distressed loan acquisitions continues over time AUM growth over the long term expected to be driven by PMT Investment opportunities in mortgage-related assets remain significant Origination market remains challenged by higher rates; PennyMac gained market share throughout the year in correspondent and retail In correspondent lending, initiatives to increase share, including through smaller originators In retail lending, focus on refinance opportunities enabled by bulk MSR acquisitions (At period end) ($ in billions) ($ in billions) ($ in billions)

10 (UPB in billions) Correspondent acquisitions by PMT in 4Q13 totaled $5.8 billion 58% government-insured loans (gain on mortgage loans to PFSI); 42% fulfillment activity for PMT (fee revenue to PFSI) Smaller declines in government-insured volumes (16% Q/Q from 3Q13), reflecting specialized nature and PennyMac’s strong competitive position Purchase-money originations comprised 89% of government-insured acquisitions January correspondent acquisitions totaled $1.7 billion; locks totaled $1.5 billion PennyMac Financial’s Businesses – Correspondent Lending (1) Includes loans acquired by PMT, for which PFSI earns a fulfillment fee. Correspondent Volume and Mix Growth Opportunities (1) Operational Highlights Strategic focus on initiatives to grow volume and optimize profitability Greater emphasis on smaller mortgage originators and community banks, which benefit most from PennyMac’s broad capabilities Gaining relevance in the Northeast Opportunities to increase business from clients delivering low volumes to PMT (1)

Retail originations totaled $211 million in 4Q13, down 26% from 3Q13 Non-portfolio originations comprised 51% of total retail originations Smaller decline in portfolio-sourced originations (15% Q/Q), due to a growing servicing portfolio and targeted initiatives to enhance lead generation success from customer service activities Launched Business Development Officer (BDO) initiative to drive local/regional Realtor and builder leads to PennyMac’s national call center platform National marketing campaigns (TV, radio, direct mail) are helping build PennyMac brand recognition Continued investment in operational platform and technology, e.g., mobile phone app 11 (UPB in millions) PennyMac Financial’s Businesses – Retail Lending Retail Origination Volume Growth Opportunities Operational Highlights MSR acquisitions expected to add meaningful portfolio-sourced volume Recently acquired legacy MSRs have significant recapture potential – initial results promising Continued development of the consumer direct platform for the purchase-money market Marketing efforts supported by BDOs, national campaigns, and continuous improvements to process and customer service

12 PennyMac Financial’s Businesses – Loan Servicing Loan Servicing Portfolio as of 12/31/13 Growth Opportunities Operational Highlights Servicing portfolio totaled $78.2 billion in UPB at quarter-end, up 48% from 3Q13 Prime servicing and subservicing net growth of $25.5 billion in UPB from September 30, 2013 Bulk MSR acquisitions completed during 4Q13, adding $20.1 billion in UPB to the portfolio Successful close and transfers of the bulk MSR acquisitions as scheduled, in close cooperation with the selling institutions and Agencies Strategic relationship with PMT which co-invests in the MSR acquisitions through the purchase of excess servicing spread, reducing PFSI’s capital requirements Continue to seek additional bulk MSR acquisitions Continued flow of opportunities expected in 2014 Co-investment opportunities with PMT Ongoing growth in prime portfolio from loan production Special servicing opportunities from PMT’s distressed whole loan acquisitions 100% = $78.2 billion in UPB

13 ($ in millions) PennyMac Financial’s Businesses – Investment Management Investment Management Revenues Growth Opportunities Operational Highlights Investment opportunities for PMT in mortgage-related assets remain significant, including: Acquisitions of distressed whole loan investments MSR investments through correspondent lending Excess servicing spread on bulk MSR portfolios Net assets under management totaled $2.0 billion, down 1% from September 30, 2013, largely due to a shift in dividend declarations by PMT in 4Q13 Investment management revenues were $14.7 million, an increase of 3% from 3Q13 Management fees increased 4% quarter-over-quarter largely due to a full quarter’s impact from PMT’s 3Q13 capital raise Carried interest and incentive fees increased 7% quarter-over-quarter

Fourth Quarter Financial Review 14 Diluted earnings per common share of $0.32 Net income of $37.3 million, up 19% from 3Q13 Net income attributable to PFSI shareholders of $6.4 million Total net revenue of $90.4 million, up 4% from 3Q13 Business Segment Results Mortgage Banking segment pretax income of $28.9 million, up 28% from 3Q13 Net gain on mortgage loans held for sale totaled $29.5 million, up 14% from 3Q13 Smaller declines in government-insured correspondent locks (7% Q/Q) reflects PennyMac’s strong competitive position Net loan servicing fees totaled $30.5 million; $1.1 million in excess servicing spread paid to PMT which is included in interest expense Higher servicing fees resulted from MSR portfolio acquisitions and an increase in special servicing fees from a growing portfolio of distressed loans at PMT Investment Management segment pretax income of $12.8 million, up 4% from 3Q13

Mortgage Banking Segment Results 15 Net gains on mortgage loans held for sale at fair value 29,453 $ 25,949 $ Loan origination fees 5,315 6,280 Fulfillment fees from PennyMac Mortgage Investment Trust 11,087 18,327 Net servicing fees 30,500 21,399 Net interest (expense) income (673) 933 Other - (22) 75,682 72,866 Compensation 33,136 33,969 Loan origination 2,118 2,802 Other 11,508 13,438 46,762 50,209 Pretax income 28,920 $ 22,657 $ Segment assets at period end 1,481,790 $ 1,208,156 $ Expenses Unaudited – ($ in thousands) Revenues Quarter ended December 31 , 2013 Quarter ended September 30, 2013

Mortgage Banking Segment – Trends in Production-Related Revenue 16 (1) Includes IRLCs for government-insured correspondent acquisitions and retail originations (1) Net gains on mortgage loans $29,453 $25,949 As % of IRLCs 0.76% 0.63% Loan origination fees $5,315 $6,280 As % of PFSI fundings 0.15% 0.15% Fulfillment fees from PMT $11,087 $18,327 Average fulfillment fee 46 bps 50 bps ($ in thousands) Quarter ended December 31, 2013 Quarter ended September 30, 2013

Mortgage Banking Segment – Trends in Servicing-Related Revenue (1) Includes contractually-specified servicing fees. (2) Represents an increase in the weighted average servicing fee resulting from the addition of government MSRs and distressed loans serviced for PMT. 17 Servicing fees for 3Q13 29,562 $ Increase due to: Volume 9,305 Rate (2) 4,721 Total change 14,026 Servicing fees for 4Q13 43,588 $ ($ in thousands) Servicing Fee Roll-forward ($ in thousands) Servicing fees (1) 43,588 $ Effect of MSRs: Amortization (6,538) Provision for impairment of MSRs carried at lower of amortized cost or fair value (1,094) Change in fair value of MSRs carried at fair value: Due to changes in valuation inputs or assumptions used in valuation model (574) Due to realization of cash flows (2,488) (3,062) Change in fair value of excess servicing spread financing liability (2,394) Net loan servicing fees 30,500 $ Net Loan Servicing Fees Quarter ended December 31, 2013

Investment Management Segment Results 18 Management fees: From PennyMac Mortgage Investment Trust 8,924 $ 8,539 $ From Investment Funds 2,031 2,001 10,955 10,540 Carried Interest from Investment Funds 3,008 2,812 Net interest income 8 4 Other 767 972 14,738 14,328 Compensation 1,575 1,861 Other 396 207 1,971 2,068 Pretax income 12,767 $ 12,260 $ Segment assets at period end 56,022 $ 46,228 $ Expenses Unaudited – ($ in thousands) Revenues Quarter ended December 31 , 2013 Quarter ended September 30, 2013

Mortgage Servicing Rights (MSR) Asset Valuation 19 PFSI carries most of its originated MSRs at the lower of amortized cost or fair value MSRs where the note rate on the underlying loan is equal to or less than 4.5% Fair value of the MSRs increased in excess of their cost basis, due to higher interest rates and declining expectations for prepayments UPB $22,500 $2,926 $20,513 Weighted average coupon 3.65% 5.19% 4.44% Prepayment speed assumption (CPR) 8.0% 10.0% 9.7% Weighted average servicing fee rate 0.29% 0.36% 0.32% Fair value of MSR $269.4 $31.6 $193.3 As a multiple of servicing fee 4.01 2.97 2.90 Carrying value of MSR $258.8 $31.6 $193.3 Related excess servicing spread liability - - ($138.7) Fair value in excess of carrying value $10.7 December 31, 2013 ($ in millions) Lower of amortized cost or fair value Fair value not subject to excess servicing spread Fair value subject to excess servicing spread

Appendix

Fundings and Locks by Product 21 Note: Figures may not sum exactly due to rounding ($ in millions) Correspondent Acquisitions Conventional 6,526 $ 4,779 $ 4,216 $ 3,608 $ 2,419 $ Government 3,485 3,739 4,262 3,992 3,340 Jumbo 2 8 107 74 14 Total 10,013 $ 8,526 $ 8,586 $ 7,674 $ 5,773 $ Correspondent Locks Conventional 7,003 $ 4,251 $ 5,069 $ 2,923 $ 2,532 $ Government 3,367 3,778 4,739 3,718 3,455 Jumbo 7 101 158 22 20 Total 10,377 $ 8,129 $ 9,966 $ 6,662 $ 6,008 $ Retail Originations Conventional 115 $ 159 $ 255 $ 235 $ 169 $ Government 117 106 85 44 41 Jumbo 2 2 5 4 - Total 233 $ 267 $ 345 $ 283 $ 211 $ Retail Locks Conventional 253 $ 353 $ 457 $ 354 $ 273 $ Government 176 161 117 59 130 Jumbo 3 11 23 4 2 Total 432 $ 525 $ 597 $ 417 $ 405 $ Total acquisitions/originations 10,246 $ 8,793 $ 8,930 $ 7,957 $ 5,984 $ Total locks 10,809 $ 8,654 $ 10,563 $ 7,079 $ 6,413 $ 4Q12 1Q13 2Q13 3Q13 4Q13