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Form 8-K

sec.gov

8-K — PennyMac Financial Services, Inc.

Accession: 0001104659-26-120224

Filed: 2026-10-29

Period: 2026-10-29

CIK: 0001745916

SIC: 6162 (MORTGAGE BANKERS & LOAN CORRESPONDENTS)

Item: Entry into a Material Definitive Agreement

Item: Results of Operations and Financial Condition

Item: Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers: Compensatory Arrangements of Certain Officers

Item: Financial Statements and Exhibits

Documents

8-K — tm2628494d1_8k.htm (Primary)

EX-10.1 — EXHIBIT 10.1 (tm2628494d1_ex10-1.htm)

EX-10.2 — EXHIBIT 10.2 (tm2628494d1_ex10-2.htm)

EX-99.1 — EXHIBIT 99.1 (tm2628494d1_ex99-1.htm)

EX-99.2 — EXHIBIT 99.2 (tm2628494d1_ex99-2.htm)

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8-K — FORM 8-K

8-K (Primary)

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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):

October 29, 2026

PennyMac

Financial Services, Inc.

(Exact name of registrant as specified in

its charter)

Delaware

001-38727

83-1098934

(State or other jurisdiction

of incorporation)

(Commission

File Number)

(IRS Employer

Identification No.)

3043 Townsgate Road, Westlake Village, California

91361

(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:

¨ Written

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

¨ Soliciting

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

¨ Pre-commencement

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

¨ Pre-commencement

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

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name

of each exchange on which registered

Common Stock, $0.0001 par value

PFSI

New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth

company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange

Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ¨

If an emerging growth company, indicate by check mark if the

registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards

provided pursuant to Section 13(a) of the Exchange Act. ¨

Item 1.01 Entry into a Material Definitive Agreement.

Employment Agreements

On October 29, 2026, PennyMac Financial Services, Inc. (the “Company”)

and Private National Mortgage Acceptance Company, LLC (“PNMAC”), its wholly-owned subsidiary, entered into amended employment

agreements with David A. Spector (the “Amended Spector Agreement”) and Doug Jones (the “Amended Jones Agreement”

and together with the Amended Spector Agreement, the “Amended Employment Agreements”). Mr. Spector shall continue to serve

as Chairman and Chief Executive Officer of the Company and Chief Executive Officer of PNMAC throughout the term of the Amended Spector

Agreement. Mr. Jones shall continue to serve as President and Chief Mortgage Banking Officer of the Company and PNMAC throughout the term

of the Amended Jones Agreement. The material terms of the Amended Spector Agreement and the Amended Jones Agreement are described in Item

5.02 of this report.

Item 2.02 Results

of Operations and Financial Condition.

On October

29, 2026, the Company issued a press release and a slide presentation announcing its financial results for the fiscal quarter ended September

30, 2026. Copies of the press release and the slide presentation used in connection with the Company’s presentation of financial

results were made available on October 29, 2026, and are furnished as Exhibit 99.1 and Exhibit 99.2, respectively.  In

addition, the Company has made other supplemental financial information for the fiscal quarter ended September 30, 2026 available on

its website at pfsi.pennymac.com.

The information in Item 2.02 of this report,

including Exhibit 99.1 and Exhibit 99.2, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange

Act of 1934, or subject to Section 18 liabilities, 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 document.

Item 5.02 Departure of Directors or Certain Officers; Election of

Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

Officer Changes – Daniel S. Perotti

and Kevin Ryan

On

October 29, 2026, the Company issued a press release furnished as Exhibit 99.1 announcing changes in the roles of certain officers

in conjunction with its financial results for the fiscal quarter ended September 30, 2026.

Daniel S. Perotti, the Company’s Senior

Managing Director and Chief Financial Officer, will resign from that role as of December 31, 2026, and will continue with the Company

in an advisory role.

Kevin

Ryan, age 55, the Company’s Executive Managing Director and Chief Strategy Officer, will be appointed the Company’s Chief

Financial Officer on January 1, 2027. Prior to joining the Company in October 2025,

Mr. Ryan served as President and Chief Financial Officer at Better Home & Finance Holding Company from October 2020 to October 2025,

where he managed all of the finance, accounting, markets and risk functions. Previously, Mr. Ryan worked in several executive positions

during his more than two decades at Morgan Stanley, most recently as a Managing Director in the Investment Banking division where he served

as the Co-Head of Banks and Diversified Finance, covering financial technology companies, banks, consumer finance companies and mortgage

companies. Mr. Ryan earned a B.A. from Rutgers University and a J.D. from the University of Virginia. There are no arrangements

or understandings between Mr. Ryan and any other persons pursuant to which he was appointed as an executive officer. There are no

family relationships between Mr. Ryan and any director, executive officer or any other person nominated or chosen by the Company

to become a director or executive officer. There are no related person transactions within the meaning of Item 404(a) of Regulation S-K

between Mr. Ryan and the Company.

Amended Employment Agreements – David A. Spector and Doug

Jones

As described in Item 1.01 of this report, the Company and PNMAC entered

into an Amended Spector Agreement and an Amended Jones Agreement with Mr. Spector and Mr. Jones that extended Mr. Spector’s term

through December 31, 2031, and Mr. Jones’ term through June 30, 2027.

Amended

Employment Agreements - Base Salary and Incentive Compensation

During the terms of their Amended Employment Agreements, Mr. Spector

and Mr. Jones shall each receive an annual base salary as determined by the Company’s Board of Directors (the “Board”),

at least as favorable as base salaries paid to other senior executives and shall each be entitled to receive annual cash and equity incentive

compensation, with such compensation awarded at levels based on annual performance targets determined by the compensation committee of

the Board. All future equity awards will be granted pursuant to the Company’s 2022 Equity Incentive Plan (the “2022 Plan”)

(or any successor plan thereto) and subject to vesting requirements as specified in the relevant award agreements.

Amended

Employment Agreements - Other Benefits and Perquisites

The

Amended Employment Agreements provide for the annual accrual of twenty days of paid time off for Mr. Spector and Mr. Jones, in each case

at the executive’s regular base pay rate during each year of the term. The Amended Employment Agreements also provide for

medical benefits, reimbursement for expenses related to tax advice and financial counseling, reimbursement of reasonable business expenses,

and participation in such other benefits programs as are provided to the Company’s executives generally.

Amended

Employment Agreements - Payments Upon Specified Termination Events

Pursuant to the Amended Employment Agreements, upon a termination due

to death or disability, a termination by the Company other than for cause (as defined in the Amended Employment Agreements), a termination

by the executive for good reason (as defined in the Amended Employment Agreements), or a termination as a result of a change of control

(as defined in the 2022 Plan, or any other equity incentive plan adopted by the Company), in addition to any other amounts required by

law to be paid to him, the executive would be entitled to any bonus earned but unpaid for the year prior to the year in which the termination

date occurs and the pro rata portion of any bonus earned but unpaid for the year during which the termination date occurs. In any such

termination event, any unvested equity awards granted pursuant to any equity incentive plan shall vest immediately. The Company will also

generally reimburse the executive or his estate for any amounts paid by him or his estate for coverage of him and his family under the

Company’s group health medical benefits plan pursuant to the Consolidated Omnibus Budget Reconciliation Act, or COBRA, for as long

as the executive or his family is eligible to receive such benefits under COBRA. Upon a termination due to death, the executive’s

estate will also receive a continuing payment of the executive’s annual base salary as of the termination date for a period of six

months following such termination.

Upon a termination of Mr. Spector’s or Mr. Jones’ employment

as a result of a change of control the executive shall also receive a severance payment equal to three (3) years of annual base salary

plus three (3) years of incentive compensation (based on the average bonus received in the most recent two years), with such amounts to

be paid in 24 monthly installments. In the event of a termination by the Company other than for cause, or by the executive for good reason,

in each case not in connection with a change of control, the executive shall receive a severance payment equal to two and one-half (2.5)

years of annual base salary plus two and one-half (2.5) years of incentive compensation (based on the average bonus received in the most

recent two years), payable in 24 monthly installments. Upon termination of Mr. Spector’s or Mr. Jones’ employment by the Company

or PNMAC for cause, the executive shall receive his annual base salary through the termination date, any accrued but unused paid time

off and reimbursement of any unreimbursed incurred expenses.

Amended

Employment Agreements - Consulting Services

Upon the expiration of the term of the Amended Spector Agreement or

upon a retirement, Mr. Spector shall serve as a consultant to the Company for an 18-month period commencing on the expiration date or

retirement date. During the consulting period, Mr. Spector will receive a consulting fee of $3.0 million, payable in 18 equal monthly

installments; provided, however, that such compensation will cease if the executive engages in services for a business that competes with

the Company.

Upon the expiration of the term of the Amended Jones Agreement or upon

a retirement, Mr. Jones shall serve as a consultant to the Company for an 18-month period commencing on the expiration date or retirement

date. During the consulting period, Mr. Jones will receive a consulting fee of $2.0 million, payable in 18 equal monthly installments;

provided, however, that such compensation will cease if the executive engages in services for a business that competes with the Company.

The foregoing descriptions

of the Amended Spector Agreement and the Amended Jones Agreement do not purport to be complete and are qualified in their entirety by

reference to the full text of such agreements, which are filed as Exhibit 10.1 and Exhibit 10.2 to this Current Report on Form 8-K.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

Exhibit No.

Description

10.1

Amended Employment Agreement, dated October 29, 2026, among David A. Spector, Private National Mortgage Acceptance Company, LLC and PennyMac Financial Services, Inc.

10.2

Amended Employment Agreement, dated October 29, 2026, among Doug Jones, Private National Mortgage Acceptance Company, LLC and PennyMac Financial Services, Inc.

99.1

Press Release, dated October 29, 2026, issued by PennyMac Financial Services, Inc. pertaining to its financial results for the fiscal quarter ended September 30, 2026.

99.2

Slide Presentation for use beginning on October 29, 2026 in connection with a presentation of financial results for the fiscal quarter ended September 30, 2026.

104

Cover Page Interactive Data File (embedded within the Inline XBRL document).

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: October 29, 2026

/s/ Daniel S. Perotti

Daniel S. Perotti

Senior Managing Director and Chief Financial Officer

EX-10.1 — EXHIBIT 10.1

EX-10.1

Filename: tm2628494d1_ex10-1.htm · Sequence: 2

EXHIBIT 10.1

AMENDED EMPLOYMENT

AGREEMENT

This

Amended Employment Agreement (the “Agreement”) is effective the 29th day of October, 2026 (the “Effective

Date”), among Private National Mortgage Acceptance Company, LLC (“PNMAC”) and PennyMac Financial Services, Inc.

(“PFSI”), each having a principal place of business at 3043 Townsgate Road, Westlake Village, CA 91361, and David A. Spector

(“Executive”).

RECITALS

WHEREAS,

PNMAC, a wholly-owned subsidiary of PFSI, is a validly existing Delaware limited liability company duly organized under the Fifth Amended

and Restated Limited Liability Company Agreement Of Private National Mortgage Acceptance Company LLC entered into as of November 1,

2018 (the “PNMAC LLC Agreement”);

WHEREAS,

PFSI is a validly existing Delaware corporation duly organized under the Amended and Restated Certificate of Incorporation filed with

the Securities and Exchange Commission (the “SEC”) on November 1, 2018, as amended, and the Amended and Restated Bylaws

of PennyMac Financial Services, Inc. filed with the SEC on March 18, 2026;

WHEREAS,

Executive currently serves as PFSI’s Chairman as well as PNMAC’s and PFSI’s Chief Executive Officer (“CEO”);

WHEREAS,

PNMAC and PFSI executed an employment agreement with Executive effective January 1, 2023, that, by its terms, will expire on or

before December 31, 2026 (the “December 2022 Employment Agreement”);

WHEREAS,

PNMAC, PFSI, and Executive desire to amend the December 2022 Employment Agreement to extend the Term of Executive’s services

to PFSI and its subsidiaries and to otherwise modify the terms of the December 2022 Employment Agreement; and

Page 1 of 16

WHEREAS,

PNMAC, PFSI, and Executive each has determined that it would be to the advantage and best interest of PNMAC, PFSI, and Executive to enter

into this Agreement to establish the terms under which Executive would continue to render services to PFSI and its subsidiaries.

NOW,

THEREFORE, in consideration of the mutual promises and covenants herein contained, PNMAC, PFSI, and Executive agree that the following

terms and conditions shall apply to Executive’s employment:

AGREEMENT

1.            Term.

PNMAC hereby agrees to employ Executive and Executive hereby accepts employment with PNMAC for the period commencing with the Effective

Date and expiring on December 31, 2031 (the “Expiration Date”) unless earlier terminated in accordance with the provisions

hereof (the “Term”). As used herein, the “Termination Date” shall mean the earlier of the Expiration Date or

the date on which the Agreement is terminated in accordance with the terms hereof and as may be further specified in Section 7(h).

2.            Duties.

Executive shall continue to be employed by PNMAC as CEO of PNMAC and shall also continue to serve as Chairman and CEO of PFSI. Executive

shall report only to the board of directors of PFSI (the “Board”), and shall have general supervision, direction, and control

of the business, officers, and employees of PNMAC. All officers and employees of PNMAC shall report directly or indirectly to Executive.

Executive shall have full latitude to hire, discharge, discipline, promote, and compensate PNMAC officers and employees, and shall have

full managerial and financial authority over PNMAC, subject to such direction and control as the Board may specify from time to time

throughout the Term. The duties and title of Executive may be changed from time to time by the mutual consent of Executive, PFSI, and

PNMAC without resulting in a breach or rescission of this Agreement. Notwithstanding any such change from the duties originally assigned

and specified above, or hereafter assigned, the employment of Executive shall be construed as continuing under this Agreement as modified;

provided, however, that any material diminution in Executive’s duties imposed by PNMAC or PFSI without Executive’s

consent shall be construed as a termination of Executive Other Than for Cause as described in Section 7(d) of this Agreement.

Page 2 of 16

3.            Outside

Activities. During the Term of this Agreement, Executive shall devote all of Executive’s full business time, ability, and attention

to the business of PNMAC and PFSI, including PFSI’s management of PennyMac Mortgage Investment Trust (PMT) through PFSI’s

PNMAC Capital Management, LLC subsidiary. Notwithstanding the foregoing, however, Executive may pursue other appropriate civic, charitable,

or religious activities so long as such activities do not interfere with Executive’s performance of his duties hereunder. In addition,

Executive may engage in other business activities or investments during the Term provided such activities or investments do not compete

with PFSI or its subsidiaries. Executive shall also be permitted to serve on the board of directors of any non-profit entity, subject

to prior full disclosure to the Board.

4.            Board

Appointment. For so long as Executive is employed by PNMAC under this Agreement, Executive shall serve as a member of the Board.

Executive shall fulfill all duties required of a member of the Board without any additional compensation. In the event Executive’s

employment is terminated in accordance with this Agreement or Executive resigns or otherwise becomes unaffiliated with PFSI, Executive

shall, and does hereby agree to, tender his written resignation from the Board effective on the date of termination, resignation, or

non-affiliation.

5.            Compensation

and Benefits.

(a)            Base

Salary. For each Fiscal Year during the Term, PNMAC shall pay or cause to be paid as base salary to Executive an amount that will

be established annually by the Board and its Compensation Committee; provided, however, that Executive’s base salary will

be at least as favorable as the highest base salary paid to any other senior executive at PNMAC. Said base salary shall be payable in

conformity with PNMAC’s normal payroll periods. For purposes of this Agreement, the term “Fiscal Year” shall mean the

period beginning on January 1 and ending on December 31, and the term “Compensation Committee” shall mean the compensation

committee of PFSI.

Page 3 of 16

(b)            Bonus

Compensation. During the Term, Executive shall be eligible to participate in all executive incentive programs offered by PNMAC to

its employees. PNMAC shall pay to Executive for each Fiscal Year during the Term of this Agreement an annual incentive compensation award

that may include both a cash incentive component and an equity incentive component that is separate from and in addition to the equity

incentive compensation described in Section 5(c) below at a level determined by the Board and the Compensation Committee pursuant

to an annual targeting process establishing performance targets and designating incentive compensation to be earned as a result of meeting

those performance targets (the “Bonus”); provided, however, that the annual performance targets established for Executive

and the Bonus to be earned as a result of meeting those targets shall each be set at levels and amounts at least as favorable to Executive

as those for other senior executives at PNMAC. The Bonus shall be paid to Executive in the year following the year to which the Bonus

relates at the same time that such incentive compensation is paid to other PNMAC senior executives, provided that, except as set

forth in Sections 7(a), (b), (d), (e), (f), and (g) or as otherwise provided pursuant to the retirement provisions in PNMAC’s

compensation policy or related procedure as then in effect, Executive must be employed on December 31st of the year to which the

Bonus relates to receive any portion of the Bonus.

(c)            Equity

Incentive Compensation. PFSI has granted and shall continue to grant to Executive equity incentive compensation pursuant to the terms

of PFSI’s 2013 Equity Incentive Plan, as amended, PFSI’s 2022 Equity Incentive Plan, and/or any other equity incentive plan

adopted by PFSI (collectively, the “EIP”) in a form and amount determined by the Board and the Compensation Committee pursuant

to an annual targeting process establishing performance targets and designating equity incentive compensation to be earned pursuant to

this Section 5(c) as a result of meeting those performance targets; provided, however, that the annual performance targets

established for Executive and the equity incentive compensation to be earned pursuant to this Section 5(c) as a result of meeting

those targets shall each be set at levels and amounts at least as favorable to Executive as those for other senior executives at PFSI

or PNMAC. The equity incentive compensation granted to Executive pursuant to this Section 5(c) shall be granted at the same

time that PFSI grants equity incentive compensation to be earned under the EIP to its other senior executives in respect of such Fiscal

Year (but in no event later than June 30 following the end of such Fiscal Year). Any equity incentive compensation granted to Executive

pursuant to this Section 5(c) shall vest in accordance with the terms set forth in the EIP and the related award document;

provided, however, that notwithstanding anything to the contrary contained in the EIP or any other document, any unvested equity

incentive compensation granted to Executive pursuant to this Section 5(c) shall automatically, immediately and fully vest (and,

in the case of performance-based equity awards, at the target amounts set forth in such awards) (an “Immediate Vesting”)

if any of the following events occur: (i) Executive’s death; (ii) Executive’s Disability as defined in Section 7(a);

(iii) the termination of Executive Other Than for Cause as described in Section 7(d) of this Agreement; (iv) Executive’s

termination of this Agreement for Good Reason as that term is defined in Section 7(d) of this Agreement; or (v) Executive’s

termination following a Change of Control as set forth in Section 7(e) of this Agreement. In addition, because the equity incentive

compensation granted to Executive pursuant to this Section 5(c) may be based on performance criteria that relate to events

occurring after the Executive is no longer employed by PNMAC or PFSI, the performance goals established for Executive shall not be dependent

in any respect on Executive’s individual performance. In the event of a sale, merger, consolidation, reorganization, restructuring,

or transfer of assets of PFSI in which PFSI is not the surviving entity or in which it survives as a subsidiary of another entity (a

“Transaction”), and the shares or equity securities of the surviving entity or parent thereof are publicly traded on a recognized

stock exchange or over-the-counter market, the equity incentive compensation to be granted pursuant to this Section 5(c) after

the date of the Transaction shall be granted in accordance herewith in the form of securities of the surviving entity or parent thereof,

as applicable. To the extent that any of the terms of this Agreement governing Executive’s equity incentive compensation conflict

with anything contained in the EIP or any other document, the terms of this Agreement control and supersede any such contrary provisions.

Page 4 of 16

(d)            Paid

Time Off. During the Term, Executive shall accrue twenty (20) days of paid time off (“PTO”) at Executive’s regular

base pay rate during each Fiscal Year of the Term, prorated for partial years worked, subject to the terms of PNMAC’s employment

benefit policies as they relate to senior executive officers and on terms at least as favorable as provided to other senior executives.

(e)            Medical

Benefits. During the Term, PNMAC shall pay for Executive to undergo an annual comprehensive executive physical appropriate for chief

executives such as Executive. In addition, Executive and Executive’s family shall be entitled to participate in PNMAC’s group

medical insurance benefits, in accordance with PNMAC’s employment benefit policies as they relate to senior executive officers

and their families. If Executive is terminated pursuant to Section 7(a), (b), (d), (e), (f), or (g), PNMAC will reimburse Executive

for any amounts paid by Executive for coverage of Executive and/or Executive’s family under PNMAC’s group health medical

benefits plan pursuant to the Consolidated Omnibus Budget Reconciliation Act (“COBRA”) for as long as Executive is eligible

to receive such benefits under COBRA, on the condition that Executive timely elects COBRA and provides PNMAC with proof of payment of

the applicable COBRA premiums on a monthly basis; provided, however, that the reimbursement described in this Section 5(e) shall

be subject to and paid only if and to the extent (1) such reimbursement is permitted by the Patient Protection and Affordable Care

Act of 2010, as amended by the Health Care and Education Reconciliation Act of 2010, and other applicable law, and (2) Executive

is not otherwise eligible or entitled to participate in group medical benefits offered by a subsequent employer. If PNMAC’s reimbursement

of Executive for COBRA-related payments under this Section 5(e) is not permitted by the Patient Protection and Affordable Care

Act of 2010, as amended by the Health Care and Education Reconciliation Act of 2010, or other applicable law, and Executive is not otherwise

eligible or entitled to participate in group medical benefits offered by a subsequent employer, then PNMAC shall discontinue the COBRA-related

payments provided for in this Section 5(e) and, in such case, PNMAC will pay Executive an amount equal to the amount that Executive

would otherwise be entitled to receive for reimbursement of COBRA-related payments.

Page 5 of 16

(f)            Tax

Advice and Financial Counseling. During the Term, PNMAC shall reimburse Executive for expenses relating to tax advice and financial

counseling, subject to reasonable proof of such expenses; provided, however, that such reimbursement shall not exceed fifty thousand

dollars ($50,000) per year, prorated for partial years worked. Executive shall have sole discretion in selecting an appropriate tax advisor

and financial counselor.

(g)            Aircraft

Allowance. During the Term, PNMAC will make chartered or other private flights

available to Executive for business purposes at the CEO’s discretion.

(h)            Additional

Benefits. Executive shall be entitled to participate in all programs, rights, and benefits for which Executive is otherwise entitled

under any bonus plan, incentive plan, participation plan, extra compensation plan, pension plan, profit sharing plan, savings plan, life,

medical, dental, other health care, disability, or other insurance plan or policy or other plan or benefit that PNMAC or PFSI may provide

for senior executives or for employees of PNMAC generally, if any, in force from time to time during the Term. For the avoidance of doubt,

the rights granted or afforded to Executive under any such plans shall not be less than the most favorable rights and highest amounts

granted to employees of similar or lower positions with PNMAC and on terms at least as favorable, and, for the purposes of such plan,

Executive shall receive credit for the entire period of his employment with PNMAC (including his employment with PNMAC prior to the execution

of this Agreement). To the extent that anything contained in any such plans or programs is in conflict or inconsistent with anything

stated in this Agreement, the terms of this Agreement shall control and supersede any contrary language except as prohibited by law.

6.            Business

Expense Reimbursement. Executive shall be entitled to reimbursement by PNMAC for any ordinary and necessary business expenses incurred

by Executive in the performance of Executive’s duties and in acting for PNMAC or PFSI during the Term, including but not limited

to expenditures for chartered flights, car services, or other transportation costs associated with Executive’s business travel.

Page 6 of 16

7.            Termination.

During the Term, Executive’s employment may be terminated only as provided in this Section 7. Except as set forth in this

Agreement, neither PNMAC nor PFSI shall have any further obligation to Executive or liability under this Agreement by way of compensation,

post termination benefits or obligations or otherwise upon the Termination Date. Notwithstanding anything to the contrary in this Agreement

or any other document, the termination of Executive’s employment for any reason shall not affect Executive’s ownership of

Common Stock of PFSI, and shall not affect Executive’s entitlement to all benefits which have vested or which are otherwise payable

in respect of periods ending prior to the termination of his employment.

(a)            Disability.

In the event that Executive qualifies for permanent disability benefits under PNMAC’s long term disability plan (the “LTD

Plan”), or if Executive does not participate in the LTD Plan, would have qualified for permanent disability had Executive been

a participant of the LTD Plan (a “Disability”), Executive’s employment hereunder may be terminated, by written Notice

of Termination (as that term is defined in Section 7(h) herein) from PNMAC to Executive. Upon termination due to Executive’s

Disability under this Section 7(a), Executive shall be entitled to: (i) Executive’s base salary described in Section 5(a) and

in effect as of the Termination Date, through and including the Termination Date (as that term is defined in Section 7(h) herein);

(ii) if not previously paid prior to the Termination Date, Executive’s Bonus as described in Section 5(b) of this

Agreement for the year prior to the Fiscal Year in which the Termination Date occurs; (iii) accrued but unused PTO through the Termination

Date; (iv) reimbursement of any unreimbursed expenses incurred by Executive pursuant to Section 6 of this Agreement; (v) if

not previously paid prior to the Termination Date, a prorated share of Executive’s Bonus as described in Section 5(b) for

the Fiscal Year in which the Termination Date occurs, payable in accordance with such Section; and (vi) continuing medical benefits

as set forth in Section 5(e) herein. In addition, in the event Executive’s employment is terminated pursuant to this

Section 7(a), any Award (as that term is defined in the EIP) granted to Executive pursuant to the EIP shall become subject to an

Immediate Vesting, and any outstanding stock option will not expire until the tenth anniversary of the grant date. The determination

of Disability shall be made only after sixty (60) days’ notice to Executive and only if Executive is not able to perform his duties

with or without reasonable accommodation prior to the expiration of the sixty (60) day notice period.

Page 7 of 16

(b)            Death.

In the event that Executive dies during the Term of this Agreement, this Agreement shall automatically terminate on the date of Executive’s

death. Upon termination due to Executive’s death pursuant to this Section 7(b), Executive’s estate shall be entitled

to: (i) continuing payment of Executive’s base salary described in Section 5(a) and as of the Termination Date through

the Termination Date and for a period of six (6) months following the Termination Date; (ii) if not previously paid prior to

the Termination Date, Executive’s Bonus as described in Section 5(b) of this Agreement for the year prior to the Fiscal

Year in which the Termination Date occurs; (iii) accrued but unused PTO through the Termination Date; (iv) reimbursement of

any unreimbursed expenses incurred by Executive pursuant to Section 6 of this Agreement; (v) if not previously paid prior to

the Termination Date, a prorated share of Executive’s Bonus as described in Section 5(b) for the Fiscal Year in which

the Termination Date occurs, payable in accordance with such Section; and (vi) continuing medical benefits as set forth in Section 5(e) herein.

In addition, in the event of Executive’s death, any Award (as that term is defined in the EIP) granted to Executive pursuant to

the EIP shall become subject to an Immediate Vesting, and any outstanding stock option will not expire until the tenth anniversary of

the grant date.

(c)            Termination

for Cause. PNMAC or PFSI may terminate Executive’s employment or services under this Agreement for “Cause” by written

Notice of Termination. A termination for Cause is a termination by reason of: (i) a material breach of this Agreement (other than

as a result of incapacity due to death or Disability) which is committed by Executive in bad faith and which is not remedied within thirty

(30) days of Executive’s receipt of a notice to cure such breach; (ii) Executive’s conviction by a court of competent

jurisdiction of a felony involving dishonesty or moral turpitude; provided, however, that any convictions solely on the basis

of vicarious liability shall not give PNMAC or PFSI the right to terminate Executive for Cause; (iii) entry of an order duly issued

by any federal or state regulatory agency having jurisdiction of the matter removing Executive from office of PFSI or any of its subsidiaries

or permanently prohibiting him from participating in the conduct of the affairs of PFSI or any of its subsidiaries; or (iv) proven

acts of fraud or willful misconduct committed by Executive in connection with the performance of his duties under Section 2 of this

Agreement which result in material injury to PFSI or any of its subsidiaries. In the event of a termination for Cause pursuant to this

Section 7(c), Executive shall be entitled to receive (a) his base salary for the entire period up to and including the date

of Executive’s termination for Cause; (b) accrued but unused PTO through the Termination Date; and (c) reimbursement

of any unreimbursed expenses incurred by Executive pursuant to Section 6 of this Agreement. If Executive is convicted of a felony

involving dishonesty or moral turpitude or removed from office and/or prohibited from participating in the conduct of the affairs of

PFSI or any of its subsidiaries by any federal or state regulatory agency having jurisdiction of the matter, and if the charges resulting

in such removal or prohibition are ultimately dismissed or if a final judgment on the merits of such charges is issued in favor of Executive,

or if the felony conviction is overturned on appeal, then Executive’s termination shall be treated as a Termination Other Than

for Cause pursuant to Section 7(d).

Page 8 of 16

(d)            Termination

Other Than for Cause. PNMAC or PFSI may terminate Executive’s employment “Other Than for Cause” or Executive may

terminate his employment for “Good Reason” as that term is defined in this Section 7(d). If Executive’s employment

terminates Other Than for Cause or for Good Reason pursuant to this Section 7(d), then Executive shall be entitled to (i) Executive’s

base salary in effect as of the Termination Date through and including the Termination Date (as that term is defined in Section 7(h) herein);

(ii) if not previously paid prior to the Termination Date, Executive’s Bonus as described in Section 5(b) of this

Agreement for the year prior to the Fiscal Year in which the Termination Date occurs; (iii)  accrued but unused PTO through the

Termination Date; (iv) reimbursement of any unreimbursed expenses incurred by Executive pursuant to Section 6 of this Agreement;

(v) a prorated share of Executive’s Bonus as described in Section 5(b) for the Fiscal Year in which the Termination

Date occurs, payable in accordance with such Section; (vi) continuing medical benefits as set forth in Section 5(e) herein;

(vii) an amount equal to two and one-half years of Executive’s base salary (as described in Section 5(a) above)

as of the Termination Date, payable in twenty-four monthly installments beginning on the first day of the first full month following

the month in which the Termination Date occurs; and (viii) an amount equal to two and one-half years of Executive’s Bonus

as described in Section 5(b) above (as calculated based on the average Bonus Executive received in the most recent two years

in which Executive received a Bonus). In addition, in the event Executive’s employment is terminated pursuant to this Section 7(d),

any Award (as that term is defined in the EIP) granted to Executive pursuant to the EIP, shall become subject to an Immediate Vesting.

For purposes of

this Agreement, Executive will have “Good Reason” to terminate this Agreement if PFSI (or any resulting or surviving entity

in the event of a Transaction as defined in Section 5(c) of this Agreement) or PNMAC (1) materially breaches this Agreement;

(2) requires Executive to report to anyone other than the Board; (3) requires that Executive be based anywhere more than fifteen

(15) miles from the office where Executive is located as of the Effective Date; (4) takes any other action which results in a material

diminution or adverse change in Executive’s status, title, position, compensation (including any reduction in Executive’s

target compensation from the target compensation Executive received pursuant to Section 5 of this Agreement in the year prior to

any Transaction as defined in Section 5(c) of this Agreement or Change of Control as described in Section 7(e) of

this Agreement), or responsibilities as set forth herein, other than an insubstantial action not taken in bad faith and remedied promptly

after receipt of notice by Executive; or (5) fails to indemnify and advance all expenses to Executive in response to a proper request

for indemnity and advancement by Executive; provided, however, that Executive’s resignation for Good Reason will only be

effective if Executive provides written notice to PNMAC or PFSI of the events constituting the Good Reason within ninety (90) days after

the occurrence of any such event, and PNMAC or PFSI does not cure said events within thirty (30) days after receipt of the notice.

Page 9 of 16

(e)            Termination

Following a Change of Control. This Agreement and Executive’s employment shall not automatically terminate upon a “Change

of Control” as that term is defined in the EIP. In the event of a Change of Control, PNMAC and PFSI shall take all actions necessary

to ensure that the surviving or resulting entity, if other than PNMAC or PFSI, is bound by and shall have the benefit of the provisions

of this Agreement. However, in the event there is a Change of Control and Executive’s employment or service to PFSI or its affiliates

(or any successors thereto) is terminated following such Change of Control, unless such termination shall occur pursuant to Section 7(a),

(b), (c), (f) or (g) of this Agreement, Executive shall be entitled to (i)  Executive’s base salary in effect as

of the Termination Date through and including the Termination Date (as that term is defined in Section 7(h) herein); (ii) if

not previously paid prior to the Termination Date, Executive’s Bonus as described in Section 5(b) of this Agreement for

the year prior to the Fiscal Year in which the Termination Date occurs; (iii)  accrued but unused PTO through the Termination Date;

(iv) reimbursement of any unreimbursed expenses incurred by Executive pursuant to Section 6 of this Agreement; (v) a prorated

share of Executive’s Bonus as described in Section 5(b) for the Fiscal Year in which the Termination Date occurs, payable

in accordance with such Section; (vi) continuing medical benefits as set forth in Section 5(e) herein; (vii) an amount

equal to three years of Executive’s base salary (as described in Section 5(a) above) as of the Termination Date, payable

in twenty-four monthly installments beginning on the first day of the first full month following the month in which the Termination Date

occurs; and (viii) an amount equal to three years of Executive’s Bonus (as described in Section 5(b) above), as

calculated based on the average Bonus Executive received in the most recent two years in which Executive received a Bonus. In addition,

in the event Executive’s employment is terminated pursuant to this Section 7(e), any Award (as that term is defined in the

EIP) granted to Executive pursuant to the EIP, shall become subject to an Immediate Vesting.

(f)            Termination

as a Result of the Expiration of the Agreement. In the event Executive’s employment is terminated as the result of the expiration

of Executive’s Term pursuant to Section 1 above, the Retirement (as defined in the related award document and PNMAC’s

compensation policy or related procedure as then in effect) of the Executive shall be deemed to have occurred. In the event of such deemed

Retirement, Executive shall be entitled to (i)  Executive’s base salary in effect as of the Termination Date through and including

the Termination Date (as that term is defined in Section 7(h) herein); (ii) if not previously paid prior to the Termination

Date, Executive’s Bonus as described in Section 5(b) of this Agreement for the year prior to the Fiscal Year in which

the Termination Date occurs; (iii)  accrued but unused PTO through the Termination Date; (iv) reimbursement of any unreimbursed

expenses incurred by Executive pursuant to Section 6 of this Agreement; (v) a prorated share of Executive’s Bonus as

described in Section 5(b) for the Fiscal Year in which the Termination Date occurs, payable in accordance with such Section;

and (vi) continuing medical benefits as set forth in Section 5(e) herein. In addition, any Award (as that term is defined

in the EIP) granted to Executive pursuant to the EIP, shall continue to vest, if applicable, in accordance with its terms, and the Termination

Date of this Agreement shall be deemed to be the Retirement Date as defined in the related award document. Notwithstanding the foregoing,

if the related award document does not contain any reference to Retirement or a Retirement Date, then the affected Awards shall become

subject to an Immediate Vesting.

Page 10 of 16

(g)            Voluntary

Resignation. Except as provided in Section 7(d), in the event that Executive resigns voluntarily during the Term of this Agreement,

and provides no less than six (6) months' advance written notice to PNMAC, the Retirement (as defined in the related award document

and PNMAC’s compensation policy or related procedure as then in effect) of the Executive shall be deemed to have occurred, and

Executive shall be entitled to receive the same benefits and compensation set forth in Section 7(f) of this Agreement.

(h)            Notice

of Termination. Any purported termination by PNMAC, PFSI or by Executive shall be communicated by a written notice of termination

(the “Notice of Termination”) to the other party hereto which indicates the specific termination provision in this Agreement,

if any, relied upon and which sets forth in reasonable detail the facts and circumstances, if any, claimed to provide a basis for termination

of Executive’s employment under the provision so indicated. For purposes of this Agreement, and except as expressly provided otherwise

herein, no such purported termination shall be effective without such Notice of Termination. To the extent the Agreement is terminated

prior to the Expiration Date, the “Termination Date” shall be the date specified in the Notice of Termination, which shall

be not less than thirty (30) and not more than sixty (60) days from the date of the Notice of Termination.

(i)            Consulting.

Upon (i) expiration of the Term pursuant to Section 1 herein or a Retirement (as defined in the related award document and

PNMAC’s compensation policy or related procedure as then in effect), Executive shall serve as a consultant to PNMAC and PFSI (or

in the event of a Transaction, to the surviving entity or parent) for an eighteen-month period commencing on the Expiration Date or the

Retirement Date (the “Consulting Period”); provided, however, that if Executive remains employed with PNMAC following

the Expiration Date, then the Consulting Period shall commence on the first day after Executive ceases to be employed by PNMAC. During

the Consulting Period, Executive shall make himself available for consulting services concerning PFSI’s (or its successor’s)

general operations if and as may be reasonably requested by PFSI provided that (a) the consulting services shall be rendered

at such location(s) as may be mutually agreed upon by Executive and PFSI and (b) the nature of and time required for the consulting

services do not interfere with Executive’s personal and professional activities. The consulting services shall be of an advisory

nature and, in his role as a consultant, Executive shall have no power to bind PFSI. In consideration for the consulting services described

in this Section 7(i), PNMAC shall pay to Executive a consulting fee of Three Million Dollars ($3,000,000), payable in eighteen equal

monthly installments during the Consulting Period, provided, however, that the consulting relationship shall automatically terminate,

and Executive shall not be entitled to continue receiving monthly payments under this Section 7(i), if he, directly or indirectly,

engages in, provides services to, works for, consults with, owns, invests in, or operates any business that competes with the business

of PFSI (or in the event of a Transaction, of the surviving entity or parent). PNMAC or PFSI shall provide Executive written notice if

it contends Executive has breached any provision in this Section 7(i), and Executive shall have thirty (30) days following receipt

of such notice to cure any alleged breach.

Page 11 of 16

(j)            Disputes.

In consideration of PNMAC and PFSI employing Executive, and the salary and benefits provided under this Agreement, Executive, PNMAC and

PFSI agree that all claims arising out of or relating to this Agreement or the breach thereof, or Executive’s employment, including

its termination, and/or the enforceability and validity of the arbitration agreement set forth in this Agreement, shall be resolved by

binding arbitration pursuant to Section 12(e) below. This Agreement expressly does not prohibit either party from filing an

application for a provisional remedy to prevent actual or threatened irreparable harm in accordance with California law.

(k)            409A.

Notwithstanding any provision to the contrary in this Agreement, no payment or distribution under this Agreement which constitutes an

item of deferred compensation under Section 409A of the Code and becomes payable by reason of Executive’s termination of employment

with PNMAC will be made to Executive unless Executive’s termination of employment constitutes a “separation from service”

(as such term is defined in Treasury Regulations issued under Section 409A of the Code). In addition, no such payment or distribution

will be made to Executive prior to the earlier of (i) the expiration of the six (6)-month period measured from the date of Executive’s

“separation from service” (as such term is defined in Treasury Regulations issued under Section 409A of the Code) or

(ii) the date of Executive’s death, if Executive is deemed at the time of such separation from service to be a “key

employee” within the meaning of that term under Section 416(i) of the Code and to the extent such delayed commencement

is otherwise required in order to avoid a prohibited distribution under Section 409A(a)(2) of the Code. All payments and benefits

which had been delayed pursuant to the immediately preceding sentence shall be paid to Executive in a lump sum upon expiration of such

six-month period (or if earlier upon Executive’s death). It is intended that this Agreement shall comply with the provisions of

Section 409A of the Code and the Treasury Regulations relating thereto so as not to subject Executive to the payment of additional

taxes and interest under Section 409A of the Code. In furtherance of this intent, this Agreement shall be interpreted, operated,

and administered in a manner consistent with these intentions. Notwithstanding the foregoing, Executive remains responsible for any taxes

assessed against Executive under Section 409A.

(k)  Excise

Tax. In the event that any payment or benefit received or to be received by Executive pursuant to this Agreement would be subject

(in whole or part) to the excise tax (the “Excise Tax”) imposed under Section 4999 of the Code (all such payments and

benefits being hereinafter referred to as the “Total Payments”), then the Total Payments shall be reduced to the extent necessary

so that no portion of the Total Payments is subject to the Excise Tax but only if (i) the net amount of such Total Payments, as

so reduced (after subtracting the amount of federal, state and local income taxes on such reduced Total Payments and after taking into

account the phase out of itemized deductions and personal exemptions attributable to such reduced Total Payments) is greater than or

equal to (ii) the net amount of such Total Payments without such reduction (after subtracting the net amount of federal, state and

local income taxes on such Total Payments and the amount of Excise Tax to which Executive would be subject in respect of such unreduced

Total Payments and after taking into account the phase out of itemized deductions and personal exemptions attributable to such unreduced

Total Payments). The Total Payments shall be reduced in the following order: (A) reduction of any cash severance payments otherwise

payable to Executive that are exempt from Section 409A of the Code, (B) reduction of any other cash payments or benefits otherwise

payable to Executive that are exempt from Section 409A of the Code, but excluding any payment attributable to the acceleration of

vesting or payment with respect to any equity award with respect to PFSI’s common stock that is exempt from Section 409A of

the Code, (C) reduction of any other payments or benefits otherwise payable to Executive on a pro-rata basis or such other manner

that complies with Section 409A of the Code, but excluding any payment attributable to the acceleration of vesting and payment with

respect to any equity award with respect to PFSI’s common stock that is exempt from Section 409A of the Code, and (D) reduction

of any payments attributable to the acceleration of vesting or payment with respect to any equity award with respect to PFSI’s

common stock that is exempt from Section 409A of the Code. The foregoing reductions shall be made in a manner that results in the

maximum economic benefit to Executive and, to the extent economically equivalent, in a pro rata manner.

Page 12 of 16

8.            Indemnity,

Advancement and Insurance. To the fullest extent permitted by applicable law, the PNMAC LLC Agreement, or any indemnity agreements

entered into from time to time between PNMAC or PFSI and Executive, PNMAC or PFSI, as applicable, (or in the event of a Transaction,

the surviving entity or parent) shall indemnify Executive and hold him harmless for any acts or decisions made by him in good faith while

performing services for PNMAC and/or PFSI (or in the event of a Transaction, the surviving entity or parent), and shall advance to Executive

all fees and costs associated with the defense of any action or proceeding for which Executive has tendered an appropriate indemnification

demand. PNMAC and PFSI further agree that Executive will be provided with appropriate “directors’ and officers’ insurance”

coverage in each case in connection with the performance of his duties under this Agreement, but Executive’s right to indemnity

and advancement pursuant to this Section shall not be dependent or contingent upon the availability of insurance coverage.

9.            Reimbursement

for Legal Fees. Upon submission of appropriate invoices by Executive’s counsel, PNMAC shall pay all reasonable legal fees and

expenses incurred by Executive in connection with the preparation and negotiation of this Agreement.

10.          No

Obligation to Mitigate. Executive shall not be required to mitigate the amount of any payment provided for in this Agreement by seeking

other employment or otherwise and, except as otherwise expressly provided under this Agreement, no payment hereunder shall be offset

or reduced by the amount of any compensation or benefits provided to Executive in any subsequent employment or business venture.

11.          Non-Solicitation.

During the Term of this Agreement, and for eighteen (18) months following the Termination Date, Executive shall not, directly or indirectly,

either for or on behalf of himself or any other person or entity, solicit or induce or attempt to solicit or induce any employee, consultant,

independent contractor, agent, or representative of PFSI, or any parent, subsidiary, or affiliate thereof, to discontinue employment

or engagement with PFSI or any parent, subsidiary, or affiliate thereof; or otherwise interfere or attempt to interfere with the relationship

between PFSI, or any parent, subsidiary, or affiliate thereof, and their employees, consultants, independent contractors, agents, or

representatives.

Page 13 of 16

12.            Miscellaneous.

(a)            Succession;

Assignment. This Agreement shall inure to the benefit of and be binding upon the parties hereto and their respective executors, administrators,

successors, and assigns. The parties agree that the obligations and duties of Executive are personal and are not assignable.

(b)            Notice.

Any notice, request, demand, or other communication required or permitted hereunder shall be deemed to be properly given when personally

served in writing or by facsimile, when deposited in the United States mail, postage prepaid, or when communicated to a public telegraph

company for transmittal, addressed to the party at the address appearing at the beginning of this Agreement. Either party may change

its address by written notice in accordance with this Section 12(b).

(c)            Entire

Agreement; Modification. Except as otherwise provided herein, this Agreement contains the entire agreement of the parties with respect

to the subject matter herein, and supersedes any and all other prior or contemporaneous agreements, either oral or in writing, between

the parties hereto with respect to the employment of Executive by PNMAC and PFSI. This Agreement may not be modified or amended by oral

agreement, but only by an agreement in writing executed by PNMAC, PFSI, and Executive.

(d)            Waiver.

Any waiver of a breach of any provision hereof shall not operate as or be construed as a waiver of any subsequent breach of the same

provision or any other provision of this Agreement.

(e)            Governing

Law, Venue Selection, and Arbitration. This Agreement is to be governed by and construed in accordance with the laws of the State

of California without regard to its choice of law provisions. The parties hereto agree that this Agreement was negotiated and executed

in California. Any controversy, dispute, or claim arising out of or relating to this Agreement, the breach thereof, Executive’s

employment, including the termination thereof, and/or the enforceability or validity of this arbitration agreement, shall first be settled

through good faith negotiation. If the dispute cannot be settled through negotiation, the parties agree to binding arbitration administered

by JAMS pursuant to its Employment Arbitration Rules & Procedures and subject to JAMS Policy on Employment Arbitration Minimum

Standards of Procedural Fairness. Executive acknowledges that he has been provided a copy of the JAMS rules contemporaneously herewith.

The parties agree that any such arbitration will be heard in Los Angeles, California, and that judgment on any arbitration award may

be entered in any court having jurisdiction. PNMAC shall pay the arbitration administrative costs and the arbitrator’s fees in

accordance with California law and the JAMS rules. Each party will bear its/his own attorneys’ fees and legal costs; provided,

however, that (i) if any party prevails on a statutory claim which affords the prevailing party attorneys’ fees or legal

costs, the arbitrator may award reasonable attorneys’ fees and/or legal costs to the prevailing party to the extent permitted by

applicable law, or (ii) if any party prevails on a non-statutory claim, the arbitrator shall award reasonable attorneys’ fees

and/or legal costs to the prevailing party to the extent permitted by applicable law. The parties agree to file any demand for arbitration

within the time limit established by the applicable statute of limitations for the asserted claims. Failure to demand arbitration within

the prescribed time period shall result in waiver of said claims. EXECUTIVE UNDERSTANDS AND AGREES THAT HE IS WAIVING HIS RIGHTS TO BRING

SUCH CLAIMS TO COURT, INCLUDING THE RIGHT TO A JURY TRIAL.

Page 14 of 16

(f)            Confidential

Information. Executive agrees that he will not use, divulge or otherwise disclose, directly or indirectly, any trade secret, business

process, or other confidential information concerning the business or policies of PFSI or any of its subsidiaries which Executive may

have learned, obtained, accessed, or developed during the course of his employment with PNMAC, including prior to the Effective Date

of this Agreement, except to the extent such use or disclosure is: (i) necessary or appropriate to the performance of this Agreement

and in furtherance of the best interests of PFSI and its subsidiaries; (ii) required by applicable law; (iii) lawfully obtainable

from other sources; or (iv) authorized by PNMAC or PFSI. The provisions of this subsection shall survive the expiration or termination

of this Agreement for any reason.

(g)            Severability.

Should any provision of this Agreement for any reason be declared invalid, void, or unenforceable by a court of competent jurisdiction,

the validity and binding effect of any remaining provisions shall not be affected, and the remaining provisions of this Agreement shall

remain in full force and effect as if this Agreement had been executed without the inclusion of said provision.

(h)            Interpretation.

If any claim is made by any party hereto relating to any conflict, omission, or ambiguity of this Agreement, no presumption or burden

of proof or persuasion shall be implied by reason of the fact that this Agreement was prepared by or at the request of any particular

party hereto or such party’s counsel. Executive acknowledges that he has been represented by counsel of his choice throughout the

negotiation and drafting of this Agreement.

(i)            Counterparts.

This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original but all of which together

will constitute one and the same instrument.

Page 15 of 16

In

Witness Whereof, the parties hereto have executed this Agreement as of October 29,

2026.

PRIVATE NATIONAL MORTGAGE ACCEPTANCE COMPANY, LLC:

PENNYMAC FINANCIAL SERVICES, INC.:

By:

/s/ Derek W. Stark

By:

/s/ Farhad Nanji

Name:

Derek W. Stark

Name:

Farhad Nanji

Title:

Senior Managing Director,

Title:

Chairman of the Compensation Committee

Chief Legal Officer and Secretary

EXECUTIVE:

/s/ David A. Spector

David A. Spector

Page 16 of 16

EX-10.2 — EXHIBIT 10.2

EX-10.2

Filename: tm2628494d1_ex10-2.htm · Sequence: 3

EXHIBIT 10.2

AMENDED EMPLOYMENT

AGREEMENT

This

Amended Employment Agreement (the “Agreement”) is effective the 29th day of October, 2026 (the “Effective

Date”), among Private National Mortgage Acceptance Company, LLC (“PNMAC”) and PennyMac Financial Services, Inc.

(“PFSI”), each having a principal place of business at 3043 Townsgate Road, Westlake Village, CA 91361, and Doug Jones

(“Executive”).

RECITALS

WHEREAS,

PNMAC, a wholly-owned subsidiary of PFSI, is a validly existing Delaware limited liability company duly organized under the Fifth Amended

and Restated Limited Liability Company Agreement Of Private National Mortgage Acceptance Company LLC entered into as of November 1,

2018 (the “PNMAC LLC Agreement”);

WHEREAS,

PFSI is a validly existing Delaware corporation duly organized under the Amended and Restated Certificate of Incorporation filed with

the Securities and Exchange Commission (the “SEC”) on November 1, 2018, as amended, and the Amended and Restated Bylaws

of PennyMac Financial Services, Inc. filed with the SEC on March 18, 2026;

WHEREAS,

Executive currently serves as PNMAC’s and PFSI’s President and Chief Mortgage Banking Officer;

WHEREAS,

PNMAC and PFSI executed an employment agreement with Executive effective January 1, 2023 that, by its terms, will expire on or before

December 31, 2026 (the “December 2022 Employment Agreement”);

WHEREAS,

PNMAC, PFSI, and Executive desire to amend the December 2022 Employment Agreement to extend the Term of Executive’s services

to PFSI and its subsidiaries and to otherwise modify the terms of the December 2022 Employment Agreement; and

Page 1 of 15

WHEREAS,

PNMAC, PFSI, and Executive each has determined that it would be to the advantage and best interest of PNMAC, PFSI, and Executive to enter

into this Agreement to establish the terms under which Executive would continue to render services to PFSI and its subsidiaries.

NOW,

THEREFORE, in consideration of the mutual promises and covenants herein contained, PNMAC, PFSI, and Executive agree that the following

terms and conditions shall apply to Executive’s employment:

AGREEMENT

1.            Term.

PNMAC hereby agrees to employ Executive and Executive hereby accepts employment with PNMAC for the period commencing with the Effective

Date and expiring on June 30, 2027 (the “Expiration Date”) unless earlier terminated in accordance with the provisions

hereof (the “Term”). As used herein, the “Termination Date” shall mean the earlier of the Expiration Date or

the date on which the Agreement is terminated in accordance with the terms hereof and as may be further specified in Section 6(h).

2.            Duties.

Executive shall continue to be employed by PNMAC as President and Chief Mortgage Banking Officer and shall also continue to serve as

President and Chief Mortgage Banking Officer of PFSI. Executive shall perform the duties assigned to him by PNMAC’s Chief Executive

Officer (“CEO”) and PFSI’s CEO, and shall report to the CEOs of PNMAC and PFSI. The duties and title of Executive may

be changed from time to time by the mutual consent of Executive, PFSI, and PNMAC without resulting in a breach or rescission of this

Agreement. Notwithstanding any such change from the duties originally assigned and specified above, or hereafter assigned, the employment

of Executive shall be construed as continuing under this Agreement as modified; provided, however, that any material diminution

in Executive’s duties imposed by PNMAC or PFSI without Executive’s consent shall be construed as a termination of Executive

Other Than for Cause as described in Section 6(d) of this Agreement.

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3.            Outside

Activities. During the Term of this Agreement, Executive shall devote all of Executive’s full business time, ability, and attention

to the business of PNMAC and PFSI, including PFSI’s management of PennyMac Mortgage Investment Trust (PMT) through PFSI’s

PNMAC Capital Management, LLC subsidiary. Notwithstanding the foregoing, however, Executive may pursue other appropriate civic, charitable,

or religious activities so long as such activities do not interfere with Executive’s performance of his duties hereunder. In addition,

Executive may engage in other business activities or investments during the Term provided such activities or investments do not compete

with PFSI or its subsidiaries. Executive shall also be permitted to serve on the board of directors of any non-profit entity, subject

to prior full disclosure to PNMAC’s CEO.

4.            Compensation

and Benefits.

(a)            Base

Salary. For each Fiscal Year during the Term, PNMAC shall pay or cause to be paid as base salary to Executive an amount that will

be established annually by PFSI’s Board of Directors (the “Board”), and its Compensation Committee; provided, however,

that Executive’s base salary will be at least as favorable as base salaries paid to other similarly situated senior executives

at PNMAC. Said base salary shall be payable in conformity with PNMAC’s normal payroll periods. For purposes of this Agreement,

the term “Fiscal Year” shall mean the period beginning on January 1 and ending on December 31, and the term “Compensation

Committee” shall mean the compensation committee of PFSI.

(b)            Bonus

Compensation. During the Term, Executive shall be eligible to participate in all executive incentive programs offered by PNMAC to

its employees. PNMAC shall pay to Executive for each Fiscal Year during the Term of this Agreement an annual incentive compensation award

that may include both a cash incentive component and an equity incentive component that is separate from and in addition to the equity

incentive compensation described in Section 4(c) below at a level determined by the Board and the Compensation Committee pursuant

to an annual targeting process establishing performance targets and designating incentive compensation to be earned as a result of meeting

those performance targets (the “Bonus”); provided, however, that the annual performance targets established for Executive

and the Bonus to be earned as a result of meeting those targets shall each be set at levels and amounts at least as favorable to Executive

as those for other similarly situated senior executives at PNMAC. The Bonus shall be paid to Executive in the year following the year

to which the Bonus relates at the same time that such incentive compensation is paid to other PNMAC senior executives, provided that,

except as set forth in Sections 6(a), (b), (d), (e), (f), and (g) or as otherwise provided pursuant to the retirement provisions

in PNMAC’s compensation policy or related procedure as then in effect, Executive must be employed on December 31st of the

year to which the Bonus relates to receive any portion of the Bonus.

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(c)            Equity

Incentive Compensation. PFSI has granted and shall continue to grant to Executive equity incentive compensation pursuant to the terms

of PFSI’s 2013 Equity Incentive Plan, as amended, PFSI’s 2022 Equity Incentive Plan, and/or any other equity incentive plan

adopted by PFSI (collectively, the “EIP”) in a form and amount determined by the Board and the Compensation Committee pursuant

to an annual targeting process establishing performance targets and designating equity incentive compensation to be earned pursuant to

this Section 4(c) as a result of meeting those performance targets; provided, however, that the annual performance targets

established for Executive and the equity incentive compensation to be earned pursuant to this Section 4(c) as a result of meeting

those targets shall each be set at levels and amounts at least as favorable to Executive as those for other similarly situated senior

executives at PFSI or PNMAC. The equity incentive compensation granted to Executive pursuant to this Section 4(c) shall be

granted at the same time that PFSI grants equity incentive compensation to be earned under the EIP to its other senior executives in

respect of such Fiscal Year (but in no event later than June 30 following the end of such Fiscal Year). Any equity incentive compensation

granted to Executive pursuant to this Section 4(c) shall vest in accordance with the terms set forth in the EIP and the related

award document; provided, however, that notwithstanding anything to the contrary contained in the EIP or any other document, any

unvested equity incentive compensation granted to Executive pursuant to this Section 4(c) shall automatically, immediately

and fully vest (and, in the case of performance-based equity awards, at the target amounts set forth in such awards) (an “Immediate

Vesting”) if any of the following events occur: (i) Executive’s death; (ii) Executive’s Disability as defined

in Section 6(a); (iii) the termination of Executive Other Than for Cause as described in Section 6(d) of this Agreement;

(iv) Executive’s termination of this Agreement for Good Reason as that term is defined in Section 6(d) of this Agreement;

or (v) Executive’s termination following a Change of Control as set forth in Section 6(e) of this Agreement. In

addition, because the equity incentive compensation granted to Executive pursuant to this Section 4(c) may be based on performance

criteria that relate to events occurring after the Executive is no longer employed by PFSI, any performance goals established for Executive

shall not be dependent in any respect on Executive’s individual performance. In the event of a sale, merger, consolidation, reorganization,

restructuring, or transfer of assets of PFSI in which PFSI is not the surviving entity or in which it survives as a subsidiary of another

entity (a “Transaction”), and the shares or equity securities of the surviving entity or parent thereof are publicly traded

on a recognized stock exchange or over-the-counter market, the equity incentive compensation to be granted pursuant to this Section 4(c) after

the date of the Transaction shall be granted in accordance herewith in the form of securities of the surviving entity or parent thereof,

as applicable. To the extent that any of the terms of this Agreement governing Executive’s equity incentive compensation conflict

with anything contained in the EIP or any other document, the terms of this Agreement control and supersede any such contrary provisions.

(d)            Paid

Time Off. During the Term, Executive shall accrue twenty (20) days of paid time off (“PTO”) at Executive’s regular

base pay rate during each Fiscal Year of the Term, prorated for partial years worked, subject to the terms of PNMAC’s employment

benefit policies as they relate to senior executive officers and on terms at least as favorable as provided to other senior executives.

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(e)            Medical

Benefits. During the Term, PNMAC shall pay for Executive to undergo an annual comprehensive executive physical appropriate for senior

executives such as Executive. In addition, Executive and Executive’s family shall be entitled to participate in PNMAC’s group

medical insurance benefits, in accordance with PNMAC’s employment benefit policies as they relate to senior executive officers

and their families. If Executive is terminated pursuant to Section 6(a), (b), (d), (e), (f), or (g), PNMAC will reimburse Executive

for any amounts paid by Executive for coverage of Executive and/or Executive’s family under PNMAC’s group health medical

benefits plan pursuant to the Consolidated Omnibus Budget Reconciliation Act (“COBRA”) for as long as Executive is eligible

to receive such benefits under COBRA, on the condition that Executive timely elects COBRA and provides PNMAC with proof of payment of

the applicable COBRA premiums on a monthly basis; provided, however, that the reimbursement described in this Section 4(e) shall

be subject to and paid only if and to the extent (1) such reimbursement is permitted by the Patient Protection and Affordable Care

Act of 2010, as amended by the Health Care and Education Reconciliation Act of 2010, and other applicable law, and (2) Executive

is not otherwise eligible or entitled to participate in group medical benefits offered by a subsequent employer. If PNMAC’s reimbursement

of Executive for COBRA-related payments under this Section 4(e) is not permitted by the Patient Protection and Affordable Care

Act of 2010, as amended by the Health Care and Education Reconciliation Act of 2010, or other applicable law, and Executive is not otherwise

eligible or entitled to participate in group medical benefits offered by a subsequent employer, then PNMAC shall discontinue the COBRA-related

payments provided for in this Section 4(e) and, in such case, PNMAC will pay Executive an amount equal to the amount that Executive

would otherwise be entitled to receive for reimbursement of COBRA-related payments.

(f)            Tax

Advice and Financial Counseling. During the Term, PNMAC shall reimburse Executive for expenses relating to tax advice and financial

counseling, subject to reasonable proof of such expenses; provided, however, that such reimbursement shall not exceed fifty thousand

dollars ($50,000) per year, prorated for partial years worked. Executive shall have sole discretion in selecting an appropriate tax advisor

and financial counselor.

(g)            Aircraft

Allowance. During the Term, PNMAC will make chartered or other private flights

available to Executive for business purposes at the CEO’s discretion.

Page 5 of 15

(h)            Additional

Benefits. Executive shall be entitled to participate in all programs, rights, and benefits for which Executive is otherwise entitled

under any bonus plan, incentive plan, participation plan, extra compensation plan, pension plan, profit sharing plan, savings plan, life,

medical, dental, other health care, disability, or other insurance plan or policy or other plan or benefit that PNMAC or PFSI may provide

for senior executives or for employees of PNMAC generally, if any, in force from time to time during the Term. For the avoidance of doubt,

the rights granted or afforded to Executive under any such plans shall not be less than the most favorable rights and highest amounts

granted to employees of similar or lower positions with PNMAC and on terms at least as favorable, and, for the purposes of such plan,

Executive shall receive credit for the entire period of his employment with PNMAC (including his employment with PNMAC prior to the execution

of this Agreement). To the extent that anything contained in any such plans or programs is in conflict or inconsistent with anything

stated in this Agreement, the terms of this Agreement shall control and supersede any contrary language except as prohibited by law.

5.            Business

Expense Reimbursement. Executive shall be entitled to reimbursement by PNMAC for any ordinary and necessary business expenses incurred

by Executive in the performance of Executive’s duties and in acting for PNMAC or PFSI during the Term, including but not limited

to expenditures for chartered flights, car services, or other transportation costs associated with Executive’s business travel.

6.            Termination.

During the Term, Executive’s employment may be terminated only as provided in this Section 6. Except as set forth in this

Agreement, neither PNMAC nor PFSI shall have any further obligation to Executive or liability under this Agreement by way of compensation,

post termination benefits or obligations or otherwise upon the Termination Date. Notwithstanding anything to the contrary in this Agreement

or any other document, the termination of Executive’s employment for any reason shall not affect Executive’s ownership of

Common Stock of PFSI, and shall not affect Executive’s entitlement to all benefits which have vested or which are otherwise payable

in respect of periods ending prior to the termination of his employment.

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(a)            Disability.

In the event that Executive qualifies for permanent disability benefits under PNMAC’s long term disability plan (the “LTD

Plan”), or if Executive does not participate in the LTD Plan, would have qualified for permanent disability had Executive been

a participant of the LTD Plan (a “Disability”), Executive’s employment hereunder may be terminated, by written Notice

of Termination (as that term is defined in Section 6(h) herein) from PNMAC to Executive. Upon termination due to Executive’s

Disability under this Section 6(a), Executive shall be entitled to: (i) Executive’s base salary described in Section 4(a) and

in effect as of the Termination Date, through and including the Termination Date (as that term is defined in Section 6(h) herein);

(ii) if not previously paid prior to the Termination Date, Executive’s Bonus as described in Section 4(b) of this

Agreement for the year prior to the Fiscal Year in which the Termination Date occurs; (iii) accrued but unused PTO through the Termination

Date; (iv) reimbursement of any unreimbursed expenses incurred by Executive pursuant to Section 5 of this Agreement; (v) if

not previously paid prior to the Termination Date, a prorated share of Executive’s Bonus as described in Section 4(b) for

the Fiscal Year in which the Termination Date occurs, payable in accordance with such Section; and (vi) continuing medical benefits

as set forth in Section 4(e) herein. In addition, in the event Executive’s employment is terminated pursuant to this

Section 6(a), any Award (as that term is defined in the EIP) granted to Executive pursuant to the EIP shall become subject to an

Immediate Vesting, and any outstanding stock options will not expire until the tenth anniversary of the grant date. The determination

of Disability shall be made only after sixty (60) days’ notice to Executive and only if Executive is not able to perform his duties

with or without reasonable accommodation prior to the expiration of the sixty (60) day notice period.

(b)            Death.

In the event that Executive dies during the Term of this Agreement, this Agreement shall automatically terminate on the date of Executive’s

death. Upon termination due to Executive’s death pursuant to this Section 6(b), Executive’s estate shall be entitled

to: (i) continuing payment of Executive’s base salary described in Section 4(a) and as of the Termination Date through

the Termination Date and for a period of six (6) months following the Termination Date; (ii) if not previously paid prior to

the Termination Date, Executive’s Bonus as described in Section 4(b) of this Agreement for the year prior to the Fiscal

Year in which the Termination Date occurs; (iii) accrued but unused PTO through the Termination Date; (iv) reimbursement of

any unreimbursed expenses incurred by Executive pursuant to Section 5 of this Agreement; (v) if not previously paid prior to

the Termination Date, a prorated share of Executive’s Bonus as described in Section 4(b) for the Fiscal Year in which

the Termination Date occurs, payable in accordance with such Section; and (vi) continuing medical benefits as set forth in Section 4(e) herein.

In addition, in the event of Executive’s death, any Award (as that term is defined in the EIP) granted to Executive pursuant to

the EIP shall become subject to an Immediate Vesting, and any outstanding stock options will not expire until the tenth anniversary of

the grant date.

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(c)            Termination

for Cause. PNMAC or PFSI may terminate Executive’s employment or services under this Agreement for “Cause” by written

Notice of Termination. A termination for Cause is a termination by reason of: (i) a material breach of this Agreement (other than

as a result of incapacity due to death or Disability) which is committed by Executive in bad faith and which is not remedied within thirty

(30) days of Executive’s receipt of a notice to cure such breach; (ii) Executive’s conviction by a court of competent

jurisdiction of a felony involving dishonesty or moral turpitude; provided, however, that any convictions solely on the basis

of vicarious liability shall not give PNMAC or PFSI the right to terminate Executive for Cause; (iii) entry of an order duly issued

by any federal or state regulatory agency having jurisdiction of the matter removing Executive from office of PFSI or any of its subsidiaries

or permanently prohibiting him from participating in the conduct of the affairs of PFSI or any of its subsidiaries; or (iv) proven

acts of fraud or willful misconduct committed by Executive in connection with the performance of his duties under Section 2 of this

Agreement which result in material injury to PFSI or any of its subsidiaries. In the event of a termination for Cause pursuant to this

Section 6(c), Executive shall be entitled to receive (a) his base salary for the entire period up to and including the date

of Executive’s termination for Cause; (b) accrued but unused PTO through the Termination Date; and (c) reimbursement

of any unreimbursed expenses incurred by Executive pursuant to Section 5 of this Agreement. If Executive is convicted of a felony

involving dishonesty or moral turpitude or removed from office and/or prohibited from participating in the conduct of the affairs of

PFSI or any of its subsidiaries by any federal or state regulatory agency having jurisdiction of the matter, and if the charges resulting

in such removal or prohibition are ultimately dismissed or if a final judgment on the merits of such charges is issued in favor of Executive,

or if the felony conviction is overturned on appeal, then Executive’s termination shall be treated as a Termination Other Than

for Cause pursuant to Section 6(d).

(d)            Termination

Other Than for Cause. PNMAC or PFSI may terminate Executive’s employment “Other Than for Cause” or Executive may

terminate his employment for “Good Reason” as that term is defined in this Section 6(d). If Executive’s employment

terminates Other Than for Cause or for Good Reason pursuant to this Section 6(d), then Executive shall be entitled to (i)

Executive’s base salary in effect as of the Termination Date through and including the Termination Date (as that term is defined

in Section 6(h) herein); (ii) if not previously paid prior to the Termination Date, Executive’s Bonus as described

in Section 4(b) of this Agreement for the year prior to the Fiscal Year in which the Termination Date occurs; (iii)  accrued

but unused PTO through the Termination Date; (iv) reimbursement of any unreimbursed expenses incurred by Executive pursuant to Section 5

of this Agreement; (v) a prorated share of Executive’s Bonus as described in Section 4(b) for the Fiscal Year in

which the Termination Date occurs, payable in accordance with such Section; (vi) continuing medical benefits as set forth in Section 4(e) herein;

(vii) an amount equal to two and one-half years of Executive’s base salary (as described in Section 4(a) above)

as of the Termination Date, payable in twenty-four monthly installments beginning on the first day of the first full month following

the month in which the Termination Date occurs; and (viii) an amount equal to two and one-half years of Executive’s Bonus

(as described in Section 4(b) above), as calculated based on the average Bonus Executive received in the most recent two years

in which Executive received a Bonus. In addition, in the event Executive’s employment is terminated pursuant to this Section 6(d),

any Award (as that term is defined in the EIP) granted to Executive pursuant to the EIP, shall become subject to an Immediate Vesting.

Page 8 of 15

For purposes of

this Agreement, Executive will have “Good Reason” to terminate this Agreement if PFSI (or any resulting or surviving entity

in the event of a Transaction as defined in Section 4(c) of this Agreement) or PNMAC (1) materially breaches this Agreement;

(2) requires Executive to report to anyone other than PFSI’s CEO; (3) requires that Executive be based anywhere more

than fifteen (15) miles from the office where Executive is located as of the Effective Date; (4) takes any other action which results

in a material diminution or adverse change in Executive’s status, title, position, compensation (including any reduction in Executive’s

target compensation from the target compensation Executive received pursuant to Section 4 of this Agreement in the year prior to

any Transaction as defined in Section 4(c) of this Agreement or Change of Control as described in Section 6(e) of

this Agreement), or responsibilities as set forth herein, other than an insubstantial action not taken in bad faith and remedied promptly

after receipt of notice by Executive; or (5) fails to indemnify and advance all expenses to Executive in response to a proper request

for indemnity and advancement by Executive; provided, however, that Executive’s resignation for Good Reason will only be

effective if Executive provides written notice to PNMAC or PFSI of the events constituting the Good Reason within ninety (90) days after

the occurrence of any such event, and PNMAC or PFSI does not cure said events within thirty (30) days after receipt of the notice.

(e)            Termination

Following a Change of Control. This Agreement and Executive’s employment shall not automatically terminate upon a “Change

of Control” as that term is defined in the EIP. In the event of a Change of Control, PNMAC and PFSI shall take all actions necessary

to ensure that the surviving or resulting entity, if other than PNMAC or PFSI, is bound by and shall have the benefit of the provisions

of this Agreement. However, in the event there is a Change of Control and Executive’s employment or service to PFSI or its affiliates

(or any successors thereto) is terminated following such Change of Control, unless such termination shall occur pursuant to Section 6(a),

(b), (c), (f) or (g) of this Agreement, Executive shall be entitled to (i)  Executive’s base salary in effect as

of the Termination Date through and including the Termination Date (as that term is defined in Section 6(h) herein); (ii) if

not previously paid prior to the Termination Date, Executive’s Bonus as described in Section 4(b) of this Agreement for

the year prior to the Fiscal Year in which the Termination Date occurs; (iii)  accrued but unused PTO through the Termination Date;

(iv) reimbursement of any unreimbursed expenses incurred by Executive pursuant to Section 5 of this Agreement; (v) a prorated

share of Executive’s Bonus as described in Section 4(b) for the Fiscal Year in which the Termination Date occurs, payable

in accordance with such Section; (vi) continuing medical benefits as set forth in Section 4(e) herein; (vii) an amount

equal to three years of Executive’s base salary (as described in Section 4(a) above) as of the Termination Date, payable

in twenty-four monthly installments beginning on the first day of the first full month following the month in which the Termination Date

occurs; and (viii) an amount equal to three years of Executive’s Bonus (as described in Section 4(b) above), as

calculated based on the average Bonus Executive received in the most recent two years in which Executive received a Bonus. In addition,

in the event Executive’s employment is terminated pursuant to this Section 6(e), any Award (as that term is defined in the

EIP) granted to Executive pursuant to the EIP, shall become subject to an Immediate Vesting.

Page 9 of 15

(f)            Termination

as a Result of the Expiration of the Agreement. In the event Executive’s employment is terminated as the result of the expiration

of Executive’s Term pursuant to Section 1 above, the Retirement (as defined in the related award document and PNMAC’s

compensation policy or related procedure as then in effect) of the Executive shall be deemed to have occurred. In the event of such deemed

Retirement, Executive shall be entitled to (i)  Executive’s base salary in effect as of the Termination Date through and including

the Termination Date (as that term is defined in Section 6(h) herein); (ii) if not previously paid prior to the Termination

Date, Executive’s Bonus as described in Section 4(b) of this Agreement for the year prior to the Fiscal Year in which

the Termination Date occurs; (iii)  accrued but unused PTO through the Termination Date; (iv) reimbursement of any unreimbursed

expenses incurred by Executive pursuant to Section 5 of this Agreement; (v) a prorated share of Executive’s Bonus as

described in Section 4(b) for the Fiscal Year in which the Termination Date occurs, payable in accordance with such Section;

and (vi) continuing medical benefits as set forth in Section 4(e) herein. In addition, any Award (as that term is defined

in the EIP) granted to Executive pursuant to the EIP, shall continue to vest, if applicable, in accordance with its terms, and the Termination

Date of this Agreement shall be deemed to be the Retirement Date as defined in the related award document. Notwithstanding the foregoing,

if the related award document does not contain any reference to Retirement or a Retirement Date, then the affected Awards shall become

subject to an Immediate Vesting.

(g)            Voluntary

Resignation. Except as provided in Section 6(d), in the event that Executive resigns voluntarily during the Term of this Agreement

and provides no less than six (6) months' advance written notice to PNMAC,

the Retirement (as defined in the related award document and PNMAC’s compensation policy or related procedure as then in effect)

of the Executive shall be deemed to have occurred, and Executive shall be entitled to receive the same benefits and compensation set

forth in Section 6(f) of this Agreement.

(h)            Notice

of Termination. Any purported termination by PNMAC, PFSI or by Executive shall be communicated by a written notice of termination

(the “Notice of Termination”) to the other party hereto which indicates the specific termination provision in this Agreement,

if any, relied upon and which sets forth in reasonable detail the facts and circumstances, if any, claimed to provide a basis for termination

of Executive’s employment under the provision so indicated. For purposes of this Agreement, and except as expressly provided otherwise

herein, no such purported termination shall be effective without such Notice of Termination. To the extent the Agreement is terminated

prior to the Expiration Date, the “Termination Date” shall be the date specified in the Notice of Termination, which shall

be not less than thirty (30) and not more than sixty (60) days from the date of the Notice of Termination.

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(i)            Consulting.

Upon (i) expiration of the Term pursuant to Section 1 herein or a Retirement (as defined in the related award document and

PNMAC’s compensation policy or related procedure as then in effect), Executive shall serve as a consultant to PNMAC and PFSI (or

in the event of a Transaction, to the surviving entity or parent) for an eighteen-month period commencing on the Expiration Date or Retirement

Date (the “Consulting Period”); provided, however, that if Executive remains employed with PNMAC following the Expiration

Date, then the Consulting Period shall commence on the first day after Executive ceases to be employed by PNMAC. During the Consulting

Period, Executive shall make himself available for consulting services concerning PFSI’s (or its successor’s) general operations

if and as may be reasonably requested by PNMAC or PFSI after taking into account Executive’s then full-time, non-PNMAC-related

employment opportunities, provided that (a) the consulting services shall be rendered at such location(s) as may be

mutually agreed upon by Executive and PFSI and (b) the nature of and time required for the consulting services do not interfere

with Executive’s personal and professional activities. The consulting services shall be of an advisory nature and, in his role

as a consultant, Executive shall have no power to bind PFSI. In consideration for the consulting services described in this Section 6(i),

PNMAC shall pay to Executive a consulting fee of Two Million Dollars ($2,000,000), payable in eighteen equal monthly installments during

the Consulting Period; provided, however, that the consulting relationship shall automatically terminate, and Executive shall

not be entitled to continue receiving monthly payments under this Section 6(i), if he, directly or indirectly, engages in, provides

services to, works for, consults with, owns, invests in, or operates any business that competes with the business of PFSI (or in the

event of a Transaction, of the surviving entity or parent). PNMAC or PFSI shall provide Executive written notice if it contends Executive

has breached any provision in this Section 6(i), and Executive shall have thirty (30) days following receipt of such notice to cure

any alleged breach.

(j)            Disputes.

In consideration of PNMAC and PFSI employing Executive, and the salary and benefits provided under this Agreement, Executive, PNMAC and

PFSI agree that all claims arising out of or relating to this Agreement or the breach thereof, or Executive’s employment, including

its termination, and/or the enforceability and validity of the arbitration agreement set forth in this Agreement, shall be resolved by

binding arbitration pursuant to Section 11(e) below. This Agreement expressly does not prohibit either party from filing an

application for a provisional remedy to prevent actual or threatened irreparable harm in accordance with California law.

(k)            409A.

Notwithstanding any provision to the contrary in this Agreement, no payment or distribution under this Agreement which constitutes an

item of deferred compensation under Section 409A of the Code and becomes payable by reason of Executive’s termination of employment

will be made to Executive unless Executive’s termination of employment constitutes a “separation from service” (as

such term is defined in Treasury Regulations issued under Section 409A of the Code). In addition, no such payment or distribution

will be made to Executive prior to the earlier of (i) the expiration of the six (6)-month period measured from the date of Executive’s

“separation from service” (as such term is defined in Treasury Regulations issued under Section 409A of the Code) or

(ii) the date of Executive’s death, if Executive is deemed at the time of such separation from service to be a “key

employee” within the meaning of that term under Section 416(i) of the Code and to the extent such delayed commencement

is otherwise required in order to avoid a prohibited distribution under Section 409A(a)(2) of the Code. All payments and benefits

which had been delayed pursuant to the immediately preceding sentence shall be paid to Executive in a lump sum upon expiration of such

six-month period (or if earlier upon Executive’s death). It is intended that this Agreement shall comply with the provisions of

Section 409A of the Code and the Treasury Regulations relating thereto so as not to subject Executive to the payment of additional

taxes and interest under Section 409A of the Code. In furtherance of this intent, this Agreement shall be interpreted, operated,

and administered in a manner consistent with these intentions. Notwithstanding the foregoing, Executive remains responsible for any taxes

assessed against Executive under Section 409A.

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(l)            Excise

Tax. In the event that any payment or benefit received or to be received by the Executive pursuant to this Agreement would be subject

(in whole or part) to the excise tax (the “Excise Tax”) imposed under Section 4999 of the Code (all such payments and

benefits being hereinafter referred to as the “Total Payments”), then the Total Payments shall be reduced to the extent necessary

so that no portion of the Total Payments is subject to the Excise Tax but only if (i) the net amount of such Total Payments, as

so reduced (after subtracting the amount of federal, state and local income taxes on such reduced Total Payments and after taking into

account the phase out of itemized deductions and personal exemptions attributable to such reduced Total Payments) is greater than or

equal to (ii) the net amount of such Total Payments without such reduction (after subtracting the net amount of federal, state and

local income taxes on such Total Payments and the amount of Excise Tax to which Executive would be subject in respect of such unreduced

Total Payments and after taking into account the phase out of itemized deductions and personal exemptions attributable to such unreduced

Total Payments). The Total Payments shall be reduced in the following order: (A) reduction of any cash severance payments otherwise

payable to Executive that are exempt from Section 409A of the Code, (B) reduction of any other cash payments or benefits otherwise

payable to Executive that are exempt from Section 409A of the Code, but excluding any payment attributable to the acceleration of

vesting or payment with respect to any equity award with respect to PFSI’s common stock that is exempt from Section 409A of

the Code, (C) reduction of any other payments or benefits otherwise payable to Executive on a pro-rata basis or such other manner

that complies with Section 409A of the Code, but excluding any payment attributable to the acceleration of vesting and payment with

respect to any equity award with respect to PFSI’s common stock that is exempt from Section 409A of the Code, and (D) reduction

of any payments attributable to the acceleration of vesting or payment with respect to any equity award with respect to PFSI’s

common stock that is exempt from Section 409A of the Code. The foregoing reductions shall be made in a manner that results in the

maximum economic benefit to Executive and, to the extent economically equivalent, in a pro rata manner.

7.            Indemnity,

Advancement and Insurance. To the fullest extent permitted by applicable law, the PNMAC LLC Agreement, or any indemnity agreements

entered into from time to time between PNMAC or PFSI and Executive, PNMAC or PFSI, as applicable, (or in the event of a Transaction,

the surviving entity or parent) shall indemnify Executive and hold him harmless for any acts or decisions made by him in good faith while

performing services for PNMAC and/or PFSI (or in the event of a Transaction, for the surviving entity or parent), and shall advance to

Executive all fees and costs associated with the defense of any action or proceeding for which Executive has tendered an appropriate

indemnification demand. PNMAC and PFSI further agree that Executive will be provided with appropriate “directors’ and officers’

insurance” coverage in each case in connection with the performance of his duties under this Agreement, but Executive’s right

to indemnity and advancement pursuant to this Section shall not be dependent or contingent upon the availability of insurance coverage.

Page 12 of 15

8.            Reimbursement

for Legal Fees. Upon submission of appropriate invoices by Executive’s counsel, PNMAC shall pay all reasonable legal fees and

expenses incurred by Executive in connection with the preparation and negotiation of this Agreement.

9.            No

Obligation to Mitigate. Executive shall not be required to mitigate the amount of any payment provided for in this Agreement by seeking

other employment or otherwise and, except as otherwise expressly provided under this Agreement, no payment hereunder shall be offset

or reduced by the amount of any compensation or benefits provided to Executive in any subsequent employment or business venture.

10.            Non-Solicitation.

During the Term of this Agreement, and for eighteen (18) months following the Termination Date, Executive shall not, directly or indirectly,

either for or on behalf of himself or any other person or entity, solicit or induce or attempt to solicit or induce any employee, consultant,

independent contractor, agent or representative of PFSI, or any parent, subsidiary, or affiliate thereof, to discontinue employment or

engagement with PFSI or any parent, subsidiary, or affiliate thereof; or otherwise interfere or attempt to interfere with the relationship

between PFSI, or any parent, subsidiary or affiliate thereof, and their employees, consultants, independent contractors, agents, or representatives.

11.            Miscellaneous.

(a)            Succession;

Assignment. This Agreement shall inure to the benefit of and be binding upon the parties hereto and their respective executors, administrators,

successors, and assigns. The parties agree that the obligations and duties of Executive are personal and are not assignable.

(b)            Notice.

Any notice, request, demand, or other communication required or permitted hereunder shall be deemed to be properly given when personally

served in writing or by facsimile, when deposited in the United States mail, postage prepaid, or when communicated to a public telegraph

company for transmittal, addressed to the party at the address appearing at the beginning of this Agreement. Either party may change

its address by written notice in accordance with this Section 11(b).

Page 13 of 15

(c)            Entire

Agreement; Modification. Except as otherwise provided herein, this Agreement contains the entire agreement of the parties with respect

to the subject matter herein, and supersedes any and all other prior or contemporaneous agreements, either oral or in writing, between

the parties hereto with respect to the employment of Executive by PNMAC and PFSI. This Agreement may not be modified or amended by oral

agreement, but only by an agreement in writing executed by PNMAC, PFSI, and Executive.

(d)            Waiver.

Any waiver of a breach of any provision hereof shall not operate as or be construed as a waiver of any subsequent breach of the same

provision or any other provision of this Agreement.

(e)            Governing

Law, Venue Selection, and Arbitration. This Agreement is to be governed by and construed in accordance with the laws of the State

of California without regard to its choice of law provisions. The parties hereto agree that this Agreement was negotiated and executed

in California. Any controversy, dispute, or claim arising out of or relating to this Agreement, the breach thereof, Executive’s

employment, including the termination thereof, and/or the enforceability or validity of this arbitration agreement, shall first be settled

through good faith negotiation. If the dispute cannot be settled through negotiation, the parties agree to binding arbitration administered

by JAMS pursuant to its Employment Arbitration Rules & Procedures and subject to JAMS Policy on Employment Arbitration Minimum

Standards of Procedural Fairness. Executive acknowledges that he has been provided a copy of the JAMS rules contemporaneously herewith.

The parties agree that any such arbitration will be heard in Los Angeles, California, and that judgment on any arbitration award may

be entered in any court having jurisdiction. PNMAC shall pay the arbitration administrative costs and the arbitrator’s fees in

accordance with California law and the JAMS rules. Each party will bear its/his own attorneys’ fees and legal costs; provided,

however, that (i) if any party prevails on a statutory claim which affords the prevailing party attorneys’ fees or legal

costs, the arbitrator may award reasonable attorneys’ fees and/or legal costs to the prevailing party to the extent permitted by

applicable law, or (ii) if any party prevails on a non-statutory claim, the arbitrator shall award reasonable attorneys’ fees

and/or legal costs to the prevailing party to the extent permitted by applicable law. The parties agree to file any demand for arbitration

within the time limit established by the applicable statute of limitations for the asserted claims. Failure to demand arbitration within

the prescribed time period shall result in waiver of said claims. EXECUTIVE UNDERSTANDS AND AGREES THAT HE IS WAIVING HIS RIGHTS TO BRING

SUCH CLAIMS TO COURT, INCLUDING THE RIGHT TO A JURY TRIAL.

(f)            Confidential

Information. Executive agrees that he will not use, divulge or otherwise disclose, directly or indirectly, any trade secret, business

process, or other confidential information concerning the business or policies of PFSI or any of its subsidiaries which Executive may

have learned, obtained, accessed, or developed during the course of his employment with PNMAC, including prior to the Effective Date

of this Agreement, except to the extent such use or disclosure is: (i) necessary or appropriate to the performance of this Agreement

and in furtherance of the best interests of PFSI and its subsidiaries; (ii) required by applicable law; (iii) lawfully obtainable

from other sources; or (iv) authorized by PNMAC or PFSI. The provisions of this subsection shall survive the expiration or termination

of this Agreement for any reason.

Page 14 of 15

(g)            Severability.

Should any provision of this Agreement for any reason be declared invalid, void, or unenforceable by a court of competent jurisdiction,

the validity and binding effect of any remaining provisions shall not be affected, and the remaining provisions of this Agreement shall

remain in full force and effect as if this Agreement had been executed without the inclusion of said provision.

(h)            Interpretation.

If any claim is made by any party hereto relating to any conflict, omission, or ambiguity of this Agreement, no presumption or burden

of proof or persuasion shall be implied by reason of the fact that this Agreement was prepared by or at the request of any particular

party hereto or such party’s counsel. Executive acknowledges that he has been represented by counsel of his choice throughout the

negotiation and drafting of this Agreement.

(i)            Counterparts.

This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original but all of which together

will constitute one and the same instrument.

In

Witness Whereof, the parties hereto have executed this Agreement as of October 29, 2026.

PRIVATE NATIONAL MORTGAGE ACCEPTANCE COMPANY, LLC:

PENNYMAC FINANCIAL SERVICES, INC.:

By:

/s/ Derek W. Stark

By:

/s/ Farhad Nanji

Name:

Derek W. Stark

Name:

Farhad Nanji

Title:

Senior Managing Director,

Title:

Chairman of the Compensation Committee

Chief Legal Officer and Secretary

EXECUTIVE:

/s/ Doug Jones

Doug Jones

Page 15 of 15

EX-99.1 — EXHIBIT 99.1

EX-99.1

Filename: tm2628494d1_ex99-1.htm · Sequence: 4

Exhibit 99.1

PennyMac Financial Services, Inc. Reports

Third Quarter 2026 Results and

Announces Changes to its Leadership Team

WESTLAKE VILLAGE, Calif. – October 29, 2026

– PennyMac Financial Services, Inc. (NYSE: PFSI) today reported net income of $29 million, or $0.54 in diluted earnings per

share (EPS), on total net revenues of $469 million for the third quarter of 2026. Adjusted net income was $56 million, or $1.05 in adjusted

diluted EPS, on adjusted net revenues of $502 million1. PFSI’s Board of Directors declared a third quarter cash dividend

of $0.30 per share, payable on November 27, 2026, to common stockholders of record as of November 16, 2026.

Additionally, PFSI today announced that Doug Jones, President and

Chief Mortgage Banking Officer, will be retiring on June 30, 2027 after a storied career in the mortgage banking industry including

more than 15 years of leadership at Pennymac. His roles and responsibilities will transition to other senior leaders within the company

over the next several months.

Also, effective January 1, 2027, Kevin Ryan, currently Chief

Strategy Officer, will assume the role of Chief Financial Officer (CFO). Current CFO, Daniel Perotti, will remain in his current role

through the remainder of this year and will continue to support the company in an advisory role through the first quarter of 2027. Mr. Ryan

will continue to lead the strategy and business development teams while in his new role.

“I am extraordinarily grateful to both Doug and Dan for their

long service at Pennymac and their ongoing commitment to and passion for our business,” said Chairman and Chief Executive Officer

David Spector. “Both served in various roles and helped to shape Pennymac’s significant growth and transformation into a

leading mortgage company. They have made invaluable contributions to the company, and will be greatly missed.”

Mr. Spector continued, “We are very fortunate to have an

exceptional leadership team and a deep bench of talent to lead Pennymac into the next chapter, and drive long-term value for our stockholders.”

CEO Commentary

“Our servicing business delivered

strong profitability, while our production segment reported a pretax loss due an industry-wide contraction in origination activity coupled

with margin pressure near the end of the quarter,“ said Chairman and CEO David Spector. “We expect mortgage demand will remain

subdued due to higher interest rates, and as a result we have taken aggressive and proactive steps to right-size our platform appropriately.

By the first quarter of 2027 we expect to have reduced our annualized operating expenses by $160 million from the second quarter of 2026.”

Mr. Spector continued, “Looking

forward, we are executing on several high-impact strategic catalysts to optimize returns on capital. Subsequent to quarter-end, we agreed

to sell $29 billion in UPB of low-rate conventional MSRs where recapture opportunities are limited. We plan to redeploy the $490 million

in proceeds to reduce higher-cost debt and repurchase common shares while our stock trades at a sizable discount to book value. In addition,

we expect to close the acquisition of Cenlar’s subservicing business in early 2027, scaling our high-margin, fee-based servicing

platform. Coupled with the accelerated deployment of AI across our production workflows, we are well-positioned to capture significant

operating leverage when market volumes rebound.”

1 Items labeled as “adjusted” are non-GAAP

financial measures. See page 10 for a reconciliation of GAAP net income to adjusted net income and adjusted diluted EPS, as well as for

a reconciliation of GAAP total net revenue to adjusted net revenues.

1

The table below highlights key financial performance metrics2:

($ in millions except

per share metrics)

3Q26

2Q26

3Q25

Q/Q

Y/Y

Total net revenues

469

497

633

(6

)%

(26

)%

Net income

29

22

182

32

%

(84

)%

Diluted EPS

$ 0.54

$ 0.41

$

3.37

32

%

(84

)%

Annualized return on equity (ROE)

3 %

2 %

18

%

1

%

(15

)%

Adjusted net revenues

502

566

630

(11

)%

(20

)%

Adjusted net income

56

74

180

(25

)%

(69

)%

Adjusted diluted EPS

$ 1.05

$ 1.39

$

3.33

(25

)%

(69

)%

Annualized adjusted ROE

5 %

7 %

17

%

(2

)%

(12

)%

Book value per share

$ 83.85

$ 83.49

$

81.12

0

%

3

%

Cash dividends declared per common share

$ 0.30

$ 0.30

$

0.30

--

--

Key Operating and Financial Metrics

● Annualized return on equity (ROE) was 3%, up from 2% in the

prior quarter

● Annualized adjusted ROE was 5%2, down from 7% in

the prior quarter

● Total loan acquisitions and originations were $24.4 billion

in unpaid principal balance (UPB), down 30% from the prior quarter

● Production revenue margins3 were 76 basis points

of total fallout adjusted lock volume, down slightly from 77 basis points in the prior quarter;

production segment pretax loss was $7 million, compared to $38 million of pretax income in

the prior quarter

● Owned servicing portfolio totaled $496 billion in UPB at September 30,

2026, up 6% from September 30, 2025

● Servicing segment pretax income was $99 million, up from $22

million in the prior quarter; pretax income excluding MSR fair value changes net of hedge

results was $132 million, up from $99 million in the prior quarter2

● Pretax loss from Corporate and other was $49 million compared

to $29 million in the prior quarter

● Book value per share was $83.85 at September 30, 2026,

up 3% from September 30, 2025

2 Items labeled as “adjusted” are non-GAAP

financial measures. See pages 10 and 11 for a reconciliation of GAAP net income to adjusted net income, adjusted diluted EPS and annualized

adjusted return on equity, as well as for a reconciliation of GAAP total net revenue to adjusted net revenues, and servicing pretax income

to servicing pretax income excluding MSR fair value changes net of hedge results

3 Presented net of loan origination expense

2

Business Highlights

● Continued to make progress on the acquisition of Cenlar’s

subservicing business and expect the transaction to close in the first quarter of 2027

● Given a smaller projected origination market and the realization

of efficiencies due to technology, we are completing proactive expense reduction initiatives,

which are expected to drive nearly $160 million of declines in our annual expenses from the

second quarter of 2026 to the first quarter of 2027

● After quarter-end, entered into an agreement to sell $29 billion

in UPB of low-coupon conventional MSRs with an expected close in the fourth quarter; proceeds

of approximately $490 million will primarily be used to pay down debt

Guidance

● Given the smaller origination market and the ongoing execution

of our expense adjustments through year-end, fourth quarter adjusted ROE is expected to remain

near current levels

Production Segment Highlights

The table below highlights key operating metrics and financial performance

in the production segment:

3Q26

2Q26

3Q25

Q/Q

Y/Y

Volume ($ UPB in billions)

Total fallout adjusted locks

23.1

31.5

37.0

(27 )%

(37 )%

Consumer direct

2.8

4.5

3.9

(37 )%

(27 )%

Broker direct

4.7

6.5

5.9

(28 )%

(20 )%

Correspondent

15.6

20.5

27.2

(24 )%

(43 )%

Total acquisitions and originations

24.4

34.9

36.5

(30 )%

(33 )%

First

lien refinance recapture rates(1)

44 %

47 %

35 %

(3 )%

9 %

Profitability ($ in millions)

Revenues(2)

175

243

292

(28 )%

(40 )%

Expenses(2)

182

205

169

(11 )%

7 %

Pretax (loss) income

(7 )

38

123

N/M

N/M

Revenues(2) as

basis points of fallout adjusted locks

76

77

79

(2 )

(4 )

Pretax income as basis points of fallout adjusted locks

(3 )

12

33

(15 )

(36 )

May not sum due to rounding

(1) Numerator = UPB of new consumer direct first lien refinance

originations for existing portfolio customers; denominator = UPB of payoffs with no transfer of title or MLS listing identified and excludes

loan payoffs where no subsequent mortgage lien was recorded (i.e. cash payoffs)

(2) Presented net of loan origination expense

Consumer direct fallout adjusted lock volumes were $2.8 billion in

UPB, down from $4.5 billion in the prior quarter and $3.9 billion in the third quarter of 2025. The decrease was driven by lower refinance

volumes due to higher mortgage rates. Broker direct fallout adjusted lock volumes were $4.7 billion in UPB, down from $6.5 billion in

the prior quarter and $5.9 billion in the third quarter of 2025. The decrease from the prior quarter and the third quarter of 2025 was

driven by the smaller origination market. Correspondent fallout adjusted lock volumes were $15.6 billion in UPB, down from $20.5 billion

in the prior quarter and $27.2 billion in the third quarter of 2025, both as a result of the smaller origination market and a highly

competitive environment.

Production segment pretax loss was $7 million compared to pretax income

of $38 million in the prior quarter and $123 million in the third quarter of 2025.

Revenues net of loan origination expenses were $175 million, down

from $243 million in the prior quarter and $292 million in the third quarter of 2025. The decline from the prior quarter was primarily

driven by lower volumes across all channels, while the decline from the third quarter of 2025 was driven by lower volumes and a $38 million

adverse shift in secondary market impacts.

Expenses net of loan origination expenses were $182 million, down

from $205 million in the prior quarter and up from $169 million in the third quarter of 2025. The decrease from the prior quarter was

due to lower volumes and previously-announced reductions in headcount, and the increase from the prior year was primarily due to higher

funded volumes in the consumer direct lending channel.

3

Servicing Segment Highlights

The table below highlights key operating metrics and financial performance

in the servicing segment:

3Q26

2Q26

3Q25

Q/Q

Y/Y

Servicing portfolio

Total UPB ($ in billions, at period end)

737

731

717

1 %

3 %

Owned servicing

496

488

470

2 %

6 %

Subservicing

233

235

239

(1 )%

(2 )%

Loans held for sale

7

8

7

(9 )%

(4 )%

Actual CPR (owned portfolio)

8.1 %

11.6 %

8.6 %

(3.6 )%

(0.5 )%

60+ day delinquency (owned portfolio, at period end)

4.2 %

4.1 %

3.4 %

0.1 %

0.8 %

Profitability

(in millions)(1)

Loan servicing fees

548

536

535

2 %

2 %

Earnings on custodial balances and deposits and other income

110

119

122

(8 )%

(10 )%

Realization of mortgage servicing rights (MSR) cash flows

(275 )

(323 )

(290 )

(15 )%

(5 )%

EBO

loan-related income(2)

17

37

37

(53 )%

(53 )%

Revenues excluding MSR fair value changes net of hedge

results

401

369

405

9 %

(1 )%

Operating expenses

80

76

80

5 %

(0 )%

Payoff-related

expenses(3)

19

29

18

(34 )%

3 %

Credit losses and provisions for defaulted loans

24

26

19

(6 )%

30 %

Interest expense

146

140

133

4 %

9 %

Expenses excluding MSR fair value changes net of hedge

results

268

270

250

(1 )%

7 %

Pretax income excluding MSR fair value changes net of

hedge results

132

99

155

34 %

(15 )%

MSR fair value changes

936

118

(102 )

N/M

N/M

Hedging

results(4)

(964 )

(187 )

105

N/M

N/M

(Provision for) losses on active loans

(6 )

(8 )

(0 )

N/M

N/M

MSR fair value changes net of hedge results

(34 )

(77 )

3

N/M

N/M

Pretax income

99

22

157

355 %

(37 )%

May not sum due to rounding

(1) Non-GAAP presentation - see pages 11 and 14

(2) Includes EBO related revenues and associated expenses

(3) Includes interest shortfall and recording and release fees

(4) Includes principal-only stripped MBS valuation-related accretion

changes included in net interest income in the GAAP presentation

The owned servicing portfolio totaled $496 billion in UPB at September 30,

2026, up 2% from June 30, 2026 as additions from production more than offset runoff from prepayments.

Servicing segment pretax income was $99 million, up from $22 million

in the prior quarter and down from $157 million in the third quarter of 2025. Servicing segment pretax income excluding MSR fair value

changes net of hedge results was $132 million, up from $99 million in the prior quarter and down from $155 million in the third quarter

of 2025.

4

Servicing revenues excluding MSR fair value changes net of hedge results

totaled $401 million, up from $369 million in the prior quarter and down slightly from $405 million in the third quarter of 2025. The

increase from the prior quarter was primarily due to lower realization of MSR cash flows and payoff-related expenses, reflecting lower

prepayment speeds, and an increase in loan servicing fees due to growth in the MSR portfolio. The decrease from the third quarter of

2025 was primarily due to lower EBO-loan related income due to higher mortgage rates and recent changes to FHA and VA loss mitigation

programs, which changed the timing and volume of buyout and redelivery opportunities.

Servicing expenses excluding MSR fair value changes net of hedge results

were $268 million, down slightly from $270 million in the prior quarter and up from $250 million in the third quarter of 2025. The slight

decrease from the prior quarter was primarily driven by a decline in payoff-related expenses as a result of lower prepayments, partially

offset by higher interest expense from larger outstanding financing balances for MSR due to higher interest rates. The increase from

the third quarter of 2025 was primarily due to higher interest expense and losses and provisions for defaulted loans.

MSR fair value changes net of hedge results was a loss of $34 million,

compared to $77 million in the prior quarter and $3 million of net gains in the third quarter of 2025. The losses in the quarter included

$18 million in hedge costs, compared to $52 million in the prior quarter and $4 million in the third quarter of 2025.

Corporate and Other

Pretax loss from corporate and other was $49 million, compared to

$29 million in the prior quarter and $44 million in the third quarter of 2025.

Revenues were $12 million, down from $23 million in the prior quarter

and essentially unchanged from the third quarter of 2025. The prior quarter included a non-recurring gain from an increase in the value

of our minority equity interest in Vesta.

Expenses were $61 million, up from $52 million in the prior quarter

and $56 million in the third quarter of 2025. The increase from the prior quarter was driven primarily by higher compensation expenses,

while the increase from the third quarter of 2025 was driven primarily by higher technology expenses.

***

Management’s slide presentation and accompanying material will

be available in the Investor Relations section of the Company’s website at pfsi.pennymac.com after the market closes on

Thursday, October 29, 2026. Management will also host a conference call and live audio webcast at 5:30 p.m. Eastern Time to

review the Company’s financial results. The webcast can be accessed at pfsi.pennymac.com, and a replay will be available

shortly after its conclusion.

***

5

About PennyMac Financial Services, Inc.

PennyMac Financial Services, Inc. (NYSE: PFSI) is a national

financial services firm focused on the production and servicing of U.S. mortgage loans and the management of mortgage-related investments.

Founded in 2008 and headquartered in Westlake Village, California, it is one of the nation's largest mortgage producers and servicers,

and one of the few lenders operating at scale across all three production channels. The company combines advanced technology with significant

operational scale to serve home buyers, existing homeowners, and its institutional partners nationwide. Additional information about

PennyMac Financial Services, Inc. is available at pfsi.pennymac.com.

Media

Investors

Kristyn Clark

Isaac Garden

mediarelations@pennymac.com

PFSI_IR@pennymac.com

805.395.9943

818.264.4907

Forward-Looking Statements

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, our 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,” “project,” “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. These forward-looking statements include, but

are not limited to, statements regarding future changes in interest rates, prepayment rates and the housing market; future loan origination,

servicing and production; future operating expense reductions; future mortgage servicing rights sales; the expected acquisition of Cenlar’s

subservicing business; the anticipated benefits of artificial intelligence and automation initiatives; future loan delinquencies, defaults

and forbearances; future earnings, return on equity as well as other business and financial projections and expectations. Factors which

could cause actual results to differ materially from historical results or those anticipated include, but are not limited to: interest

rate changes; changes in macroeconomic, consumer and real estate market conditions; changes in housing prices, housing sales and real

estate values; rising homeownership costs negatively impacting housing affordability; the continually changing federal, state and local

laws and regulations applicable to our highly regulated industry; lawsuits or governmental actions resulting from noncompliance with

laws and regulations; the mortgage lending and servicing-related regulations promulgated by federal and state regulators and the enforcement

of these regulations; licensing and operational requirements of jurisdictions applicable to our business, to which our bank competitors

are not subject; our ability to close and integrate acquisitions, including the acquisition of Cenlar’s subservicing business,;

changes to government modification programs; difficulties inherent in adjusting the size of our operations to reflect changes in business

levels; our ability to realize anticipated cost savings from expense reduction initiatives; purchase and sales opportunities for mortgage

servicing rights, including our ability to complete the pending sale of mortgage servicing rights; our substantial amount of indebtedness;

increases in loan delinquencies, defaults and forbearances; foreclosure delays and changes in foreclosure practices; our dependence on

U.S. government-sponsored entities and changes in their roles; our ability to manage third-party vendors and mortgage investor requirements;

our exposure to counterparties that do not fulfill contractual obligations; our reliance on PennyMac Mortgage Investment Trust (NYSE:

PMT) as a significant contributor to our mortgage banking business; maintaining sufficient capital and liquidity and compliance with

financial covenants; our obligation to indemnify third-party purchasers or repurchase loans if loans that we originate, acquire, service

or assist in the fulfillment of, fail to meet certain criteria; our obligation to indemnify PMT if our services fail to meet certain

criteria or characteristics or under other circumstances; investment management and incentive fees; the accuracy or changes in the estimates

we make about uncertainties, contingencies and asset and liability valuations; conflicts of interest in allocating our services and investment

opportunities among us and our advised entity; our ability to mitigate cybersecurity risks, cyber incidents and technology disruptions;

our ability to implement and develop new technologies and artificial intelligence; the effect of public opinion on our reputation; our

exposure to risks of loss and disruption in operations from severe weather events, man-made or other natural conditions, including climate

change and pandemics; our ability to effectively identify, manage and hedge our credit, interest rate, prepayment, liquidity and climate

risks; expansion of new business activities or strategies; our ability to detect misconduct and fraud; our ability to pay dividends to

our stockholders or repurchase shares of our common stock; and our organizational structure and certain requirements in our charter documents.

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.

6

The press release contains financial information calculated other

than in accordance with U.S. generally accepted accounting principles (“GAAP”), such as adjusted net income, adjusted net

revenue, adjusted earnings per share, adjusted EBITDA, pretax income excluding valuation-related items, and adjusted return on equity.

Adjustments to GAAP financial measures include items that the Company deems non-operating, non-recurring and market-driven fair value

adjustments to mortgage servicing rights and associated hedging results that change based on interest rate shifts rather than operational

efficiency. These non-GAAP measures provide a meaningful perspective on the Company’s business results because the Company utilizes

this information to evaluate and manage the business, and investors use this information to calculate financial and cash flow measures.

These non-GAAP measures have limitations as analytical tools and should not be viewed as a substitute for financial information determined

in accordance with GAAP. Furthermore, these non-GAAP measures may not be comparable to similarly titled metrics presented by other financial

institutions.

7

Consolidated Statements of Income

($ in millions, except per share amounts)

3Q26

2Q26

1Q26

4Q25

3Q25

Y/Y

Revenue

Owned servicing fees

479

471

469

463

460

4 %

Subservicing fees

21

21

21

21

21

2 %

Ancillary and other fees

48

45

42

48

54

(11 )%

Total loan servicing fees

548

536

532

532

535

2 %

Realization of MSR cash flows

(275 )

(323 )

(355 )

(383 )

(290 )

(5 )%

Changes in fair value of MSRs due to changes in fair value inputs

936

118

183

40

(102 )

N/M

Hedging results

(948 )

(186 )

(207 )

(39 )

98

N/M

Net loan servicing fees

262

146

153

150

241

9 %

Net gains on loans held for sale

190

280

345

302

314

(40 )%

Loan origination fees

47

70

72

68

62

(24 )%

Fulfillment fees from PMT

3

5

6

7

6

(48 )%

Interest income

210

242

208

264

249

(15 )%

Interest expense

(254 )

(271 )

(250 )

(263 )

(250 )

2 %

Net interest (expense) income

(43 )

(28 )

(42 )

1

(1 )

N/M

Management fees

7

7

7

7

7

(2 )%

Other revenues

3

18

4

4

4

(8 )%

Total net revenues

469

497

545

538

633

(26 )%

Expenses

Compensation

213

223

216

208

205

4 %

Technology

53

44

46

35

45

17 %

Mortgage loan origination

69

94

80

70

69

(0 )%

Professional services

13

16

14

10

10

31 %

Servicing

39

43

38

43

29

35 %

Occupancy and equipment

10

11

10

10

9

21 %

Marketing and advertising

14

17

21

10

14

1 %

Other expenses

14

18

14

16

15

(8 )%

Total expenses

426

465

440

404

397

7 %

Income before provision for income taxes

43

32

105

134

236

(82 )%

Provision for income taxes

14

10

22

28

55

(75 )%

Net income

29

22

82

107

182

(84 )%

Weighted average shares outstanding

Basic

52.0

51.9

52.1

52.0

51.7

0 %

Diluted

53.1

53.3

53.9

54.2

53.9

(1 )%

Earnings per share

Basic

$ 0.55

$ 0.42

$ 1.58

$ 2.05

$ 3.51

(84 )%

Diluted

$ 0.54

$ 0.41

$ 1.53

$ 1.97

$ 3.37

(84 )%

Cash dividends declared per common share

$ 0.30

$ 0.30

$ 0.30

$ 0.30

$ 0.30

0 %

May not sum due to rounding

8

Non-GAAP Reconciliations

($ in millions, except per share amounts)

Reconciliation of GAAP Total net revenues to

Adjusted net revenues

3Q26

2Q26

1Q26

4Q25

3Q25

Total net revenues

469

497

545

538

633

Increase (decrease) in fair value of MSRs and MSLs due to changes in valuation inputs used in the valuation model

936

118

183

40

(102 )

Hedging (losses) gains associated with MSRs(1)

(964 )

(187 )

(221 )

(37 )

105

(Provision for) credit losses on active loans

(6 )

(8 )

(6 )

(11 )

(0 )

Non-recurring revenues(2)

0

9

0

0

0

Adjusted net revenues

502

566

589

546

630

May not sum due to rounding

(1) Includes principal-only stripped MBS valuation-related accretion

changes included in interest income for GAAP purposes

Reconciliation of GAAP Net Income to Adjusted

net income,

Adjusted diluted EPS and Adjusted return on

equity (ROE)

3Q26

2Q26

1Q26

4Q25

3Q25

Net income

29

22

82

107

182

(Increase) decrease in fair value of MSRs and MSLs due to changes in valuation inputs used in the valuation model

(936 )

(118 )

(183 )

(40 )

102

Hedging (gains) losses associated with MSRs(1)

964

187

221

37

(105 )

Provision for losses on active loans

6

8

6

11

0

Non-recurring pretax items(2)

2

(7 )

3

0

0

Total adjustments:

36

70

47

8

(3 )

Tax rate for adjustments

25.1 %

25.1 %

25.1 %

25.1 %

25.2 %

Tax impacts of adjustments

(9 )

(18 )

(12 )

(2 )

1

Adjusted net income

56

74

118

113

180

Diluted shares outstanding

53.1

53.3

53.9

54.2

53.9

Adjusted diluted EPS

$ 1.05

$ 1.39

$ 2.19

$ 2.08

$ 3.33

Average stockholders' equity

4,352

4,323

4,324

4,238

4,110

Annualized ROE

3 %

2 %

8 %

10 %

18 %

Annualized adjusted ROE

5 %

7 %

11 %

11 %

17 %

May not sum due to rounding

(1) Includes principal-only stripped MBS valuation-related accretion

changes included in interest income for GAAP purposes

(2) 3Q26 non-recurring pretax items includes $2 million of Cenlar

acquisition related expenses

9

Non-GAAP Reconciliations (continued)

($ in millions)

Reconciliation of GAAP Net income to Adjusted

EBITDA

3Q26

2Q26

1Q26

4Q25

3Q25

Net income

29

22

82

107

182

Provision for income taxes

14

10

22

28

55

Income before provisions for income taxes

43

32

105

134

236

Depreciation and amortization

14

14

14

13

13

(Increase) decrease in fair value of MSRs and MSLs due to changes in valuation inputs used in the valuation model

(936 )

(118 )

(183 )

(40 )

102

Hedging (gains) losses associated with MSRs(1)

964

187

221

37

(105 )

Provision for losses on active loans

6

8

6

11

0

Stock-based compensation

6

4

2

8

10

Non-recurring items(2)

2

(7 )

3

0

0

Interest expense on corporate debt and capital lease

83

83

83

83

78

Adjusted EBITDA

182

204

251

246

335

May not sum due to rounding

(1) Includes principal-only stripped MBS valuation-related accretion

changes included in interest income for GAAP purposes

(2) 3Q26 non-recurring pretax items include $2 million of Cenlar

acquisition related expenses

Reconciliation of GAAP servicing pretax income

to

servicing pretax income net of valuation related

changes

3Q26

2Q26

1Q26

4Q25

3Q25

Servicing pretax income

99

22

13

37

157

(Increase) decrease in fair value of MSRs and MSLs due to changes in valuation inputs used in the valuation model

(936 )

(118 )

(183 )

(40 )

102

Hedging losses (gains) associated with MSRs(1)

964

187

221

37

(105 )

Provision for losses on active loans

6

8

6

11

0

Servicing pretax income excluding MSR fair value changes net of hedge results

132

99

57

45

155

May not sum due to rounding

(1) Includes principal-only stripped MBS valuation-related accretion

changes included in interest income for GAAP purposes

10

Production Segment Profitability and Key Metrics

($ in millions)

Production Segment Contribution to Pretax Income

3Q26

2Q26

1Q26

4Q25

3Q25

Y/Y

Net gains on loans held for sale at fair value

176

245

311

276

280

(37 )%

Loan origination fees

47

70

72

68

62

(24 )%

Fulfillment fees from PMT

3

5

6

7

6

(48 )%

Interest income

107

119

113

129

111

(4 )%

Interest expense

(90 )

(105 )

(96 )

(109 )

(98 )

(8 )%

Net interest income

17

14

17

20

14

25 %

Other revenues

0

3

0

0

0

(34 )%

Net revenues

244

337

407

371

362

(33 )%

Compensation

124

146

136

123

114

8 %

Technology

33

30

30

28

31

6 %

Loan origination expenses

69

94

80

70

69

(0 )%

Professional services

6

5

6

4

3

62 %

Occupancy and equipment

6

6

5

5

4

29 %

Marketing and advertising

11

12

12

9

12

(11 )%

Other expenses

3

6

4

5

4

(27 )%

Expenses

251

299

273

244

239

5 %

Pretax (loss) income

(7 )

38

134

127

123

N/M

May not sum due to rounding

11

Production Segment Profitability and Key Metrics (continued)

($ UPB in billions)

Production Segment Volumes and Key Metrics

3Q26

2Q26

1Q26

4Q25

3Q25

Y/Y

Volumes

Consumer direct fallout adjusted locks

2.8

4.5

6.6

5.0

3.9

(27 )%

Broker direct fallout adjusted locks

4.7

6.5

7.1

5.6

5.9

(20 )%

Correspondent fallout adjusted locks

15.6

20.5

24.3

30.5

27.2

(43 )%

Total fallout adjusted locks

23.1

31.5

38.0

41.0

37.0

(37 )%

Consumer direct originations

3.3

5.6

6.0

5.2

3.1

6 %

Broker direct originations

5.2

7.0

6.7

6.5

5.6

(7 )%

Correspondent acquisitions

15.9

22.3

24.4

30.5

27.8

(43 )%

Total acquisitions and originations

24.4

34.9

37.0

42.2

36.5

(33 )%

Consumer direct locks

3.9

6.1

9.2

7.4

6.0

(34 )%

Broker direct locks

6.1

8.5

9.5

7.6

8.0

(23 )%

Correspondent locks

16.5

21.8

26.1

31.8

29.3

(44 )%

Total locks

26.6

36.5

44.8

46.8

43.2

(39 )%

Key metrics

Revenues(1) as

basis points of fallout adjusted locks

76

77

86

73

79

(4 )

Pretax income as basis points of total fallout adjusted locks

(3 )

12

35

31

33

(36 )

Consumer direct margins(2)

3.35 %

3.00 %

2.64 %

3.12 %

3.51 %

(4 )%

Broker direct margins(2)

0.85 %

0.97 %

1.10 %

1.05 %

0.92 %

(7 )%

PFSI correspondent margins(2)

0.29 %

0.26 %

0.30 %

0.26 %

0.27 %

6 %

% Purchase acquisitions and originations

78 %

69 %

58 %

66 %

83 %

N/M

First lien refinance recapture rates(3)

44 %

47 %

35 %

33 %

35 %

9 %

WA FICO at acquisition / origination

745

742

749

747

749

(4 )

WA DTI at acquisition / origination

40

40

40

40

40

0

May not sum due to rounding

(1) Net of loan origination expenses

(2) Revenue contribution excluding secondary market impacts divided

by fallout adjusted locks

(3) Numerator = UPB of new consumer direct first lien refinance

originations for existing portfolio customers; denominator = UPB of payoffs with no transfer of title or MLS listing identified and excludes

loan payoffs where no subsequent mortgage lien was recorded (i.e. cash payoffs)

12

Servicing Segment Profitability and Key Metrics

($ in millions)

Servicing Segment Contribution to Pretax Income

3Q26

2Q26

1Q26

4Q25

3Q25

Y/Y

Owned servicing fees

479

471

469

463

460

4 %

Subservicing fees

21

21

21

21

21

2 %

Ancillary and other fees

48

45

42

48

54

(11 )%

Total loan servicing fees

548

536

532

532

535

2 %

Realization of MSR cash flows

(275 )

(323 )

(355 )

(383 )

(290 )

(5 )%

Changes in MSR fair value due to changes in valuation inputs

936

118

183

40

(102 )

N/M

Hedging results

(948 )

(186 )

(207 )

(39 )

98

N/M

Net loan servicing fees

262

146

153

150

241

9 %

Gains on loans held for sale

14

35

34

26

34

(60 )%

Interest income

103

123

95

135

137

(25 )%

Interest expense

(164 )

(166 )

(154 )

(154 )

(152 )

8 %

Net interest (expense)

(61 )

(43 )

(59 )

(19 )

(15 )

302 %

Other revenues

(2 )

(2 )

(2 )

(2 )

(1 )

122 %

Net revenues

213

137

125

154

259

(18 )%

Compensation

53

52

53

52

52

2 %

Technology

11

8

11

11

10

7 %

Servicing

39

43

38

43

29

35 %

Other expenses

11

12

11

11

11

0 %

Expenses

114

115

112

117

102

11 %

Pretax income

99

22

13

37

157

(37 )%

May not sum due to rounding

13

Servicing Segment Profitability and Key Metrics (continued)

($ UPB in billions)

Servicing Segment Portfolio and Key Metrics

3Q26

2Q26

1Q26

4Q25

3Q25

Y/Y

Servicing

portfolio ($ UPB in billions, at period end)

Owned MSR UPB

496

488

474

462

470

6 %

Subserviced UPB

233

235

237

263

239

(2 )%

Loans held for sale

7

8

10

9

7

(4 )%

Total UPB

737

731

720

734

717

3 %

Total loans serviced (in thousands)

2,769

2,753

2,725

2,788

2,746

1 %

Key

metrics (owned portfolio, at period end except CPR)

60+ Day Delinquency

4.2 %

4.1 %

4.2 %

4.2 %

3.4 %

0.8 %

Actual CPR

8.1 %

11.6 %

13.7 %

13.0 %

8.6 %

(0.5 )%

Weighted average coupon

5.1 %

5.1 %

5.1 %

5.0 %

4.9 %

0.2 %

Weighted average servicing fee

0.39 %

0.39 %

0.39 %

0.39 %

0.39 %

0.00 %

Servicing fee multiple

6.1 x

5.6 x

5.5 x

5.3 x

5.3 x

0.8 x

May not sum due to rounding

14

Corporate & Other Profitability

($ in millions)

3Q26

2Q26

1Q26

4Q25

3Q25

Y/Y

Management fees

7

7

7

7

7

(2 )%

Interest income

0

0

0

0

0

N/M

Interest expense

0

0

0

0

0

N/M

Net interest income (expense)

0

0

0

0

0

N/M

Other revenues

5

16

6

6

4

22 %

Net revenues

12

23

13

13

12

6 %

Compensation

37

25

28

33

39

(6 )%

Technology

9

6

5

(3 )

4

133 %

Marketing and advertising

3

5

9

1

1

156 %

Professional Services

5

9

7

4

5

11 %

Occupancy and equipment

2

2

2

2

2

24 %

Other expenses

5

6

5

6

5

2 %

Expenses

61

52

55

43

56

10 %

Pretax loss

(49 )

(29 )

(42 )

(30 )

(44 )

11 %

May not sum due to rounding

15

Consolidated Balance Sheets

($ in millions)

9/30/26

6/30/26

3/31/26

12/31/25

9/30/25

Y/Y

Assets

Cash

233

214

220

302

622

(62 )%

Short-term investment at fair value

413

534

434

410

62

563 %

Principal-only stripped mortgage-backed securities at fair value

515

609

659

723

774

(34 )%

Loans held for sale at fair value

6,899

7,820

9,954

9,123

7,490

(8 )%

Derivative assets

491

202

283

188

202

143 %

Servicing advances, net

604

589

623

590

396

53 %

Mortgage servicing rights at fair value

11,639

10,587

10,149

9,599

9,654

21 %

Loans eligible for repurchase

8,226

8,291

8,594

7,410

5,417

52 %

Other assets

893

1,013

1,028

1,045

783

14 %

Total assets

29,912

29,859

31,944

29,389

25,401

18 %

Liabilities

Assets sold under agreements to repurchase

8,088

8,435

10,178

8,794

7,130

13 %

Mortgage loan participation purchase and sale agreements

678

696

691

697

699

(3 )%

Notes payable secured by mortgage servicing assets

1,641

1,426

1,426

1,326

1,326

24 %

Unsecured senior notes

4,840

4,837

4,834

4,832

4,829

0 %

Income taxes payable

1,229

1,216

1,206

1,184

1,151

7 %

Liability for mortgage loans eligible for repurchase

8,226

8,291

8,594

7,410

5,417

52 %

Other liabilities

853

621

688

838

640

33 %

Total liabilities

25,556

25,523

27,618

25,080

21,193

21 %

Stockholders' equity

4,357

4,337

4,326

4,309

4,208

4 %

May not sum due to rounding

16

Capital and Liquidity

($ in millions)

3Q26

2Q26

1Q26

4Q25

3Q25

Y/Y

Liquidity

Cash and short-term investments

646

749

654

712

684

(6 )%

Amounts available to draw on facilities with collateral pledged

2,880

3,261

3,507

3,928

4,288

(33 )%

Total liquidity

3,526

4,010

4,161

4,639

4,972

(29 )%

Total liquidity as a % of MSR fair value

30 %

38 %

41 %

48 %

52 %

(21 )%

Capital

Total equity

4,357

4,337

4,326

4,309

4,208

4 %

(-) Capitalized software

111

111

112

108

105

6 %

Tangible equity

4,246

4,226

4,214

4,201

4,103

3 %

Face value of unsecured senior notes

4,900

4,900

4,900

4,900

4,900

0 %

Face value of MSR term notes and loans

1,330

1,330

1,330

1,330

1,330

0 %

Amount drawn on variable funding note

1,645

1,145

860

410

230

615 %

Freddie Mac MSR facilities

560

310

235

--

--

N/M

Face value of non-funding debt

8,435

7,685

7,325

6,640

6,460

31 %

Face value of assets sold under agreements to repurchase(1)

6,208

7,085

9,189

8,391

6,908

(10 )%

Face value of mortgage loan participation purchase and sale agreements

679

696

691

697

700

(3 )%

Face value of funding debt

6,887

7,782

9,880

9,088

7,608

(9 )%

Face value of total debt

15,322

15,467

17,205

15,728

14,068

9 %

Unamortized debt issuance costs

(74 )

(72 )

(76 )

(80 )

(84 )

(11 )%

Carrying value of total debt

15,247

15,395

17,129

15,648

13,984

9 %

Total assets

29,912

29,859

31,944

29,389

25,401

18 %

(-) Capitalized software

111

111

112

108

105

6 %

Adjusted assets

29,801

29,748

31,832

29,281

25,296

18 %

(-) Loans eligible for repurchase

8,226

8,291

8,594

7,410

5,417

52 %

Adjusted assets less loans eligible for repurchase

21,575

21,458

23,237

21,871

19,879

9 %

Capital ratios

Non-funding debt / total equity(2)

1.9 x

1.8 x

1.7 x

1.5 x

1.5 x

0.4 x

Non-funding debt / tangible equity(2)

2.0 x

1.8 x

1.7 x

1.6 x

1.6 x

0.4 x

Total debt / total equity

3.5 x

3.6 x

4.0 x

3.7 x

3.3 x

0.2 x

Total debt / tangible equity

3.6 x

3.7 x

4.1 x

3.7 x

3.4 x

0.2 x

Total equity / adjusted assets less loans eligible for repurchase

20.2 %

20.2 %

18.6 %

19.7 %

21.2 %

(1.0 )%

Tangible equity / adjusted assets less loans eligible for repurchase

19.7 %

19.7 %

18.1 %

19.2 %

20.6 %

(1.0 )%

May not

sum due to rounding

(1) Assets sold under agreements to repurchase shown above excludes

the amount drawn on variable funding note and a certain portion of the Freddie Mac MSR facilities

(2) Uses face value of debt outstanding

17

EX-99.2 — EXHIBIT 99.2

EX-99.2

Filename: tm2628494d1_ex99-2.htm · Sequence: 5

Exhibit 99.2

PennyMac Financial Services, Inc.

October 2026

3Q26 EARNINGS REPORT

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, our 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,” “project,” “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. These forward-looking statements include, but are not limited to, statements regarding future changes in interest rates, prepayment rates and the

housing market; future loan origination, servicing and production, future operating expense reductions; future mortgage servicing rights sales; the expected acquisition of Cenlar’s subservicing

business; artificial intelligence and automation initiatives benefits; future loan delinquencies, defaults and forbearances; future earnings, return on equity as well as other business and financial

projections and expectations. Factors which could cause actual results to differ materially from historical results or those anticipated include, but are not limited to: interest rate changes; changes in

macroeconomic, consumer and real estate market conditions; changes in housing prices, housing sales and real estate values; rising homeownership costs negatively impacting housing

affordability; the continually changing federal, state and local laws and regulations applicable to our highly regulated industry; lawsuits or governmental actions resulting from noncompliance with

laws and regulations; the mortgage lending and servicing-related regulations promulgated by federal and state regulators and the enforcement of these regulations; licensing and operational

requirements of jurisdictions applicable to our business, to which our bank competitors are not subject; our ability to close and integrate acquisitions, including the acquisition of Cenlar’s

subservicing business; changes to government modification programs; difficulties inherent in adjusting the size of our operations to reflect changes in business levels; our ability to realize

anticipated cost savings from expense reduction initiatives; purchase and sales opportunities for mortgage servicing rights, including our ability to complete the pending sale of mortgage servicing

rights on the anticipated terms and timeline and to deploy the related proceeds as intended; our substantial amount of indebtedness; increases in loan delinquencies, defaults and forbearances;

foreclosure delays and changes in foreclosure practices; our dependence on U.S. government-sponsored entities and changes in their roles; our ability to manage third-party vendors and mortgage

investor requirements; our exposure to counterparties that do not fulfill contractual obligations; our reliance on PennyMac Mortgage Investment Trust (NYSE: PMT) as a significant contributor to our

mortgage banking business; maintaining sufficient capital and liquidity and compliance with financial covenants; our obligation to indemnify third-party purchasers or repurchase loans if loans that

we originate, acquire, service or assist in the fulfillment of, fail to meet certain criteria; our obligation to indemnify PMT if our services fail to meet certain criteria or characteristics or under other

circumstances; investment management and incentive fees; the accuracy or changes in the estimates we make about uncertainties, contingencies and asset and liability valuations; conflicts of

interest in allocating our services and investment opportunities among us and our advised entity; our ability to mitigate cybersecurity risks, cyber incidents and technology disruptions; our ability to

implement and develop new technologies and artificial intelligence; the effect of public opinion on our reputation; our exposure to risks of loss and disruption in operations from severe weather

events, man-made or other natural conditions, including climate change and pandemics; our ability to effectively identify, manage and hedge our credit, interest rate, prepayment, liquidity and climate

risks; expansion of new business activities or strategies; our ability to detect misconduct and fraud; our ability to pay dividends to our stockholders or repurchase shares of our common stock; and

our organizational structure and certain requirements in our charter documents. 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.The presentation contains financial information calculated other than in accordance with U.S. generally accepted accounting principles (“GAAP”), such as

adjusted net income, adjusted earnings per share, adjusted EBITDA, pretax income excluding valuation-related items and adjusted return on equity. Adjustments to GAAP financial measures include

items that the Company deems non-operating, non-recurring and market-driven fair value adjustments to Mortgage Servicing Rights (MSRs) and associated hedging results that change based on

interest rate shifts rather than operational efficiency. These non-GAAP measures provide a meaningful perspective on the Company’s business results because the Company utilizes this information

to evaluate and manage the business, and investors use this information to calculate financial and cash flow measures. These non-GAAP measures have limitations as analytical tools and should

not be viewed as a substitute for financial information determined in accordance with GAAP. Furthermore, these non-GAAP measures may not be comparable to similarly titled metrics presented by

other financial institutions.

2

FORWARD-LOOKING STATEMENTS

3

3Q26

Results

Production

Segment

Servicing

Segment

THIRD QUARTER HIGHLIGHTS

Note: All figures are for 3Q26 or are as of 9/30/26

(1) EPS = earnings per share; ROE = return on equity

(2) See slide 24 for a reconciliation of GAAP net income to non-GAAP adjusted net income, adjusted EPS and annualized adjusted ROE

(3) Includes volume fulfilled for PennyMac Mortgage Investment Trust (NYSE: PMT)

(4) MSR fair value changes net of hedge results include $936 million in MSR fair value gains, $964 million in hedging losses, which include $16 million in principal-only stripped MBS valuation-related accretion declines, and $6 million in provision for losses on

active loans - see slide 13

(5) UPB = unpaid principal balance; includes loans subserviced for PMT and others

Annualized

ROE(1)

Annualized

adjusted ROE(2)

Pretax

loss

Total loan acquisitions

and originations(3)

PFSI correspondent

lock volume

Broker direct

lock volume

Consumer direct

lock volume

Pretax

income

Pretax income excluding

MSR fair value changes

net of hedge results(4)

Impact to diluted EPS

from MSR fair value

changes net of hedge

results(4)

MSR fair value changes

net of hedge results(4)

Total servicing

portfolio UPB(5)

Book value

per share

Net

income

Diluted

EPS(1)

Adjusted

EPS(2)

$29mm $83.85 $(7)mm $99mm

$0.54 $1.05 $24.4bn $15.3bn $132mm $(34)mm

3% 5% $6.1bn $3.9bn $(0.47) $737bn

4

CONSTRAINED INDUSTRY ORIGINATION ENVIRONMENT

30-year fixed

rate mortgage

7.40%(1)

3Q26 Rate & Term Agency Deliveries(2)

$22B

Up 93 bps from June 30, 2026 Down ~80% from 1Q26

7.4%

30-Yr Fixed Rate Mortgage(1) Sept. 2026 Fannie Mae 30-Year CPR(2)

6.5%

Lowest level since March 2025

Distribution of Agency Mortgages by Coupon (2)

(UPB in billions)

Fannie Mae & Freddie Mac

Ginnie Mae

Refinance Incentive Pool

<1%

With >50 bp incentive to refinance

Conventional 30Y Fixed

Ginnie Mae II 30Y Fixed

Prepayment Speeds by Agency (2)

(CPR %)

(1) Optimal Blue 30-Year Conforming Fixed Rate; 7.40% is as of 9/30/26

(2) Source: Bloomberg CPR (Collateral Performance Research); projections for future prepayment speeds are an average of estimates from BofA, Morgan Stanley and Barclays research

After quarter-end, entered into an agreement to sell $29 billion in UPB of low-coupon

conventional MSRs with an expected close in the fourth quarter; proceeds of approximately

$490 million will primarily be used to pay down debt

BUSINESS UPDATES

5

Continued to make progress on the acquisition of Cenlar’s subservicing business and expect

the transaction to close in the first quarter of 2027

Given a smaller projected origination market and the realization of efficiencies due to

technology, we are completing proactive expense reduction initiatives, which are expected to

drive nearly $160 million of declines in our annual expenses from 2Q26 to 1Q27

Servicing net of valuation related changes Production (1)

Mortgage Banking Adjusted Pretax Income

($ in millions)

6

Annualized Adjusted ROE(1)

Note: Figures may not sum due to rounding

(1) See slide 24 for a reconciliation of GAAP to non-GAAP items

RECENT AND EXPECTED ADJUSTED RETURNS ON EQUITY

Given the smaller origination market and the ongoing execution of our expense adjustments through year-end,

fourth quarter adjusted ROE is expected to remain near current levels

ACCELERATING AI AUTOMATION ACROSS OUR ORIGINATION BUSINESS

7

Progress on Origination Processing Automation

Oct ‘26

35%

Remaining

37%

Live Production

28%

In Development

AI Automation Driving Measurable Results

AI Voice Agent Provides Exponential Scale in a Rally

Uncoupling Platform Scale from Headcount

Automating labor-intensive fulfillment workflows permanently lowers

per-loan fulfillment costs and enables substantial operating leverage with

reduced variable hiring requirements

Efforts will continue into 2027, focused

primarily on advancing AI voice agent

capabilities and deploying AI agents in

broker direct once live on Vesta

Across our production workflows,

process automation has progressed

meaningfully, with the 28% currently

in development expected to be

completed by year-end

Supported more than 15,000 transfers and 1,600 rate locks in 3Q26, and

provides the ability to rapidly add capacity to meet increased demand in a

market rally, enabling borrower self-service to reduce hold times and lost

sales opportunities

22 AI agents have been deployed, with more than 205,000 automated agent

executions and 200,000 automated document reviews; an additional 17

agents are in process

8

EARNINGS POTENTIAL FROM CONSUMER DIRECT RECAPTURE OPPORTUNITY

Servicing Portfolio UPB Above 5% Note Rate (1)

(1) As of 9/30/26; includes first-lien loans serviced for PFSI’s own account as well as those subserviced for PMT and others with recapture arrangements with PFSI; mortgage rate: Optimal Blue 30-Year Conforming Fixed Rate as of 9/30/26

(2) Numerator = UPB of new consumer direct first lien refinance originations for existing portfolio customers; denominator = UPB of payoffs with no transfer of title or MLS listing identified and excludes loan payoffs where no subsequent mortgage lien

was recorded (i.e. cash payoffs)

First Lien Refinance Recapture Rates (2)

30-year fixed

rate mortgage

7.40%

● Nearly all of our servicing portfolio is out-of-the-money in today's rate environment

● Recent improvements in our recapture rates position us to capitalize on portfolio refinance

opportunities when rates decline

(in billions)

KEY OPERATING METRICS &

OTHER FINANCIAL SCHEDULES

Acquisitions for PFSI(1)

10

PRODUCTION SEGMENT – VOLUME BY CHANNEL

Broker Direct

(UPB in billions)

(1) Government-insured or guaranteed loans and certain conventional loans acquired through PFSI’s correspondent production business; PFSI earns income from holding and selling or securitizing the loans

(2) Loans fulfilled for PMT; for these loans, PFSI earns a fulfillment fee from PMT rather than income from holding and selling or securitizing the loans

(3) Includes locks related to loans sold to PMT

Consumer Direct

(UPB in billions)

Correspondent

(UPB in billions)

Acquisitions for PMT(2) Originations

Locks: $5.4bn

Acquisitions: $5.4bn

Locks: $1.7bn

Originations: $1.3bn

Locks: $0.8bn

Originations: $0.7bn

Total Locks(3)

October (Estimated) October (Estimated) October (Estimated)

Locks Originations Locks

11

DRIVERS OF PRODUCTION SEGMENT RESULTS(1)

Note: Figures may not sum due to rounding

(1) Prior period amounts have been recast to conform to the current period presentation

(2) Revenue net of direct origination costs

(3) Revenue contribution, total PFSI account revenues, total production revenues and production expenses are presented net of loan origination expenses, which are managed as a component of revenue

(4) Includes only loans acquired for PFSI’s own account

(5) Reflects hedging, valuation changes, and other secondary marketing impacts

• Production segment pretax loss driven primarily by lower volumes resulting from the rapid increase in mortgage rates

• Increase in consumer direct margins as a result of a higher percentage of closed-end second lien volume versus first lien

• Production expenses(3) declined 11% from the prior quarter as a result of lower volumes and capacity

3Q25 2Q26 3Q26

($ in millions)

Fallout

adjusted

locks

Margin /

fulfillment fee

(bps)(2)

Revenue

contribution(3)

Fallout

adjusted

locks

Margin /

fulfillment fee

(bps)(2)

Revenue

contribution(3)

Fallout

adjusted

locks

Margin /

fulfillment fee

(bps)(2)

Revenue

contribution(3)

PFSI correspondent(4) $ 23,585 27 $ 64 $ 18,227 26 $ 48 $ 14,714 29 $ 42

Broker direct 5,893 92 54 6,475 97 63 4,691 85 40

Consumer direct 3,872 351 136 4,490 300 135 2,824 335 95

Secondary market impacts(5) n/a n/a 32 n/a n/a (7) n/a n/a (5)

Total PFSI account revenues(3) $ 33,350 86 $ 286 $ 29,192 82 $ 238 $ 22,229 77 $ 171

PMT conventional correspondent 3,602 17 6 2,292 22 5 879 36 3

Total production revenues(3)

$ 36,953

79 $ 292

$ 31,484

77 $ 243

$ 23,108

76 $ 175

Production expenses(3) 46 169 65 205 79 182

Production segment pretax income 33 $ 123 12 $ 38 (3) $ (7)

Note: Figures may not sum due to rounding

(1) Represents MSRs that we subservice for PMT and others

(2) Owned portfolio is predominantly government-insured and guaranteed loans - delinquency data based on loan count (i.e., not UPB); CPR = Conditional Prepayment Rate

(3) UPB of completed modifications includes loss mitigation efforts associated with partial claims programs

(4) Early buyouts of delinquent loans from Ginnie Mae pools during the period

(5) Includes consumer and broker direct production, government and conventional correspondent acquisitions, and conventional conforming and jumbo loan acquisitions subserviced for PMT

Net Portfolio Growth

(UPB in billions)

Owned Subserviced(1)

SERVICING SEGMENT

12

Loan Servicing Portfolio Composition

(UPB in billions)

(5)

Selected Operational Metrics 2Q26 3Q26

Loans serviced (in thousands) 2,753 2,769

60+ day delinquency rate - owned portfolio(2) 4.1% 4.2%

Actual CPR - owned portfolio(2) 11.6% 8.1%

UPB of completed modifications ($ in millions)(3) $2,850 $2,947

EBO loan volume ($ in millions)(4) $1,218 $1,346

• Servicing portfolio totaled $737 billion in UPB at

September 30, 2026, up slightly from June 30, 2026

• Production volumes more than offset prepayment activity

• 60+ day delinquency rate for owned MSR was up slightly

from the prior quarter

• Modification volume and EBO loan volume increased

from the prior quarter

13

Note: Figures may not sum due to rounding

(1) Of average portfolio UPB, annualized (2) Also includes non-valuation related income from principal-only bonds (3) Comprised of net gains on mortgage loans held for sale at fair value and interest income related to EBO loans, net of related expenses

(4) Consists of interest shortfall and recording and release fees (5) Changes in fair value do not include realization of MSR cash flows (6) Includes principal-only stripped MBS valuation-related accretion changes included within net interest income in the

GAAP presentation (7) Considered in the assessment of MSR fair value changes

DRIVERS OF SERVICING SEGMENT RESULTS

• The decline in prepayment speeds from the prior quarter drove lower average custodial balances and related earnings, and also

resulted in a 15% reduction in the realization of MSR cash flows

• EBO loan-related income was down $20 million from the prior quarter due to higher mortgage rates and recent changes to FHA

and VA loss mitigation programs, which changed the timing and volume of buyout and redelivery opportunities

• Interest expense was up $6 million from the prior quarter due to higher average financing balances for MSRs

3Q25 2Q26 3Q26

$ in millions

basis

points(1) $ in millions

basis

points(1) $ in millions

basis

points(1)

Loan servicing fees $ 535 30.2 $ 536 29.5 $ 548 30.0

Earnings on custodial balances and deposits and other income(2) 122 6.9 119 6.6 110 6.0

Realization of MSR cash flows (290) (16.4) (323) (17.8) (275) (15.0)

EBO loan-related income(3) 37 2.1 37 2.0 17 0.9

Servicing expenses:

Operating expenses (80) (4.5) (76) (4.2) (80) (4.4)

Payoff-related expense(4) (18) (1.0) (29) (1.6) (19) (1.0)

Losses and provisions for defaulted loans (19) (1.0) (26) (1.4) (24) (1.3)

Interest expense (133) (7.5) (140) (7.7) (146) (8.0)

Non-GAAP: Pretax income excluding MSR fair value changes net of hedge results $ 155 8.7 $ 99 5.5 $ 132 7.3

MSR fair value changes and hedge results

MSR fair value(5) (102) 118 936

Hedging results(6) 105 (187) (964)

(Provision for) reversal of losses on active loans(7) (0) (8) (6)

GAAP: Servicing segment pretax income $ 157 $ 22 $ 99

Average servicing portfolio UPB $ 708,612 $ 726,149 $ 730,689

14

HEDGING APPROACH MODERATES THE VOLATILITY OF PFSI’S RESULTS

MSR Valuation Changes and Offsets

($ in millions)

MSR fair value changes before realization of cash flows(1)

Hedging and related gains (losses)(2)

(1) Includes (provision for) reversal of losses on active loans

(2) Includes principal-only stripped MBS valuation-related accretion changes

• In 3Q26, gains from changes in fair value inputs on

MSR were offset by hedging declines and costs

• Hedge costs were meaningfully lower than the prior

quarter

• Shape of the yield curve, volatility, changes in

mortgage basis and other factors can impact our

realized hedge ratio

Attributed Performance MSR(1) Hedge(2) Net

Rate impacts $951 $(946) $5

Hedge costs - $(18) $(18)

Other assumption & performance impacts $(21) - $(21)

Prepayment-related - - -

Delinquency-related $(5) - $(5)

Other $(16) - $(16)

Total $930 $(964) $(34)

15

STRONG BALANCE SHEET AND DIVERSE CAPITAL STRUCTURES

(1) Non-funding debt includes face value of unsecured senior notes and notes payable secured by MSR, in addition to the amount drawn on the variable funding note

(2) Tangible net worth excludes capitalized software

(3) As of 9/30/26

Debt-to-Equity (D/E) Ratio

MSR & Servicing

Advance Financing

Tangible Net Worth (TNW)(2)/Assets

Non-funding D/E(1) Total D/E

Diverse Financing Sources(3)

TNW / Assets TNW / Assets ex. Loans eligible for repurchase

• Active management of targeted D/E ratios:

‒ Non-funding D/E ratio increased as funding facilities

were utilized to fund cash impacts from hedges as

interest rates increased sharply

‒ Proceeds of approximately $490 million from the

expected sale of conventional portfolio in 4Q26 will be

used to reduce debt and decrease non-funding D/E

• High tangible net worth (TNW) / assets excluding loans

eligible for repurchase

• Unsecured senior notes enhance liquidity at low, fixed interest

rates; first maturity in February 2029

• As of September 30, 2026 total liquidity including cash and

amounts available to draw with collateral pledged was $3.5

billion

Financing

capacity across

multiple banks

APPENDIX

Portfolio growth drives higher recurring fee income; prepayment speeds

slow in rising rate environments, a natural hedge to origination income

Refinance recapture to

drive earnings growth

when rates decline

17

COMPREHENSIVE MORTGAGE BANKING PLATFORM IS A FLYWHEEL

Large volumes of production

grow servicing portfolio

3

rd largest in the U.S.(1) 4

th largest in the U.S.(2)

A culture of continuous process improvement and technological innovation

to drive further scale and operational efficiency gains

Customer base of 2.8 million

drives leads for consumer direct

Correspondent

Production

Broker

Direct

Consumer

Direct

Leading market position in third-party lending

enables access to the more consistent and

growing purchase market

Servicing Portfolio UPB(2)

(in billions)

(1) Inside Mortgage Finance for the 12 months ended 6/30/26

(2) Inside Mortgage Finance as of 6/30/26; includes volume subserviced for PMT and others

Loan Production Loan Servicing

PFSI Purchase Mix Industry Purchase Mix(5)

18

TRACK RECORD OF STRONG PERFORMANCE ACROSS MARKET ENVIRONMENTS

Proven ability to

generate attractive

ROEs…

…across different

market environments…

…with a strong

orientation towards

purchase money

mortgages.

(1) Represents partial year; initial public offering was May 8, 2013

(2) Adjusted return on equity was 7% excluding arbitration accrual of $158 million and related tax impact

(3) Inside Mortgage Finance

(4) Bloomberg

(5) Inside Mortgage Finance for historical industry purchase mix, 3Q26 is an estimate based on Mortgage Bankers Association (10/11/26) and Fannie Mae (10/12/26) forecasts

U.S. Origination Market(3)

(in trillions)

PFSI's Annualized Return on Average Common Stockholders' Equity (ROE)

10-Year Treasury Yield(4)

Average: 19%

CURRENT MARKET ENVIRONMENT AND MACROECONOMIC TRENDS

19

Average 30-year fixed rate mortgage(1)

Macroeconomic Metrics(4) U.S. Origination Market Forecast(3)

(UPB in trillions)

10-year Treasury Bond Yield(2)

Purchase Refinance

9/30/25 12/31/25 3/31/26 6/30/26 9/30/26

10-year Treasury bond

yield 4.2% 4.2% 4.3% 4.5% 5.3%

Secondary mortgage rate 5.2% 5.0% 5.4% 5.4% 6.4%

30-year fixed rate

mortgage

6.3% 6.2% 6.4% 6.5% 7.4%

Residential mortgage

originations (in billions) $495 $570 $525 $580 $490

(1) Optimal Blue 30-Year Conforming Fixed Rate. (2) U.S. Department of the Treasury. (3) Actual originations: Inside Mortgage Finance; Forecast originations; Average of Mortgage Bankers Association (10/11/26) and Fannie Mae (10/12/26) forecasts

(4) 10-year Treasury bond yield: Bloomberg. Secondary mortgage rate: 30-Year FNCL Par Coupon Index (MTGEFNCL), Bloomberg. 30-year fixed rate mortgage: Optimal Blue 30-Year Conforming Fixed Rate. Residential mortgage originations are for the quarterly

period ended; source: Inside Mortgage Finance

PENNYMAC’S MARKET SHARE OVER TIME ACROSS ITS BUSINESSES

20

Loan Servicing Market Share Correspondent Production Market Share(1) (1)

Broker Direct Market Share(1) Consumer Direct Market Share(1)

Note: All figures are for PFSI and include volume fulfilled or subserviced for PMT

(1) Historical market share: Inside Mortgage Finance; excludes second lien originations. For LTM 3Q26, we estimate $2.2 trillion in total origination volume, and that the correspondent channel represented 26% of the overall origination market, retail

represented 53%, and broker represented 21%. Loan servicing market share is based on PFSI’s servicing portfolio UPB of $737 billion divided by $15.0 trillion in mortgage debt outstanding

• Pennymac’s per loan servicing expenses are among the

lowest in the industry, despite a higher concentration of

government loans, which are more costly to service

• Industry-leading customer service as evidenced by our

multi-year servicing excellence awards from HUD, Fannie Mae

and Freddie Mac

21

Operating Expenses

(annualized bps of average servicing portfolio UPB)

Direct Servicing Expense(1)

(annual $ cost per loan)

TECHNOLOGY DRIVING EFFICIENCIES AND LOWER EXPENSES IN SERVICING

• Continuing to increase efficiency through the use of

emerging technologies, including capabilities of

generative AI

• Increased scale and efficiency as the portfolio grows

• Delinquencies remain moderated in the current market

environment, further reducing operating expenses

% Government Portfolio

(1) MBA 2026 Servicing Operations Study (2025 data), Pennymac is included within Large IMBs

DELINQUENCY TRENDS AND SERVICING ADVANCES OUTSTANDING

22

Trends in Delinquency and Foreclosure Rates(1)

(1) Owned MSR portfolio and includes loans acquired for sale at fair value; delinquency and foreclosure rates based on UPB; as of 9/30/26, the UPB of mortgage servicing rights owned by PFSI and loans held for sale totaled $503 billion

● Overall, mortgage delinquency rates for the MSR portfolio were up slightly from the prior quarter, consistent with typical seasonal

trends and within expected ranges for a predominately government-insured or guaranteed loan portfolio

● Servicing advances outstanding for PFSI’s MSR portfolio were approximately $543 million at September 30, 2026, up slightly

from $526 million at June 30, 2026

RECONCILIATION OF GAAP NET INCOME TO ADJUSTED EBITDA(1)

23

($ in millions) 3Q25 4Q25 1Q26 2Q26 3Q26

Net income $182 $107 $82 $22 $29

Provision for income taxes 55 28 22 10 14

Income (loss) before provisions for income taxes 236 134 105 32 43

Depreciation and amortization 13 13 14 14 14

(Increase) decrease in fair value of MSRs and MSLs due to changes in

valuation inputs used in the valuation model 102 (40) (183) (118) (936)

Hedging (gains) losses associated with MSRs(1) (105) 37 221 187 964

Provision for losses on active loans 0 11 6 8 6

Stock-based compensation 10 8 2 4 6

Non-recurring items(2)

- - 3 (7) 2

Interest expense on corporate debt and capital lease 78 83 83 83 83

Adjusted EBITDA $335 $246 $251 $204 $182

Note: Figures may not sum due to rounding

(1) Includes principal-only stripped MBS valuation-related accretion changes included within net interest income in the GAAP presentation

(2) For 3Q26, includes $2 million of Cenlar acquisition related expenses

Reconciliation of GAAP net income to adjusted net income, adjusted EPS and annualized adjusted return on equity

RECONCILIATION OF GAAP ITEMS TO NON-GAAP ITEMS

24

Note: Figures may not sum due to rounding

(1) Includes principal-only stripped MBS valuation-related accretion changes included within net interest income in the GAAP presentation

(2) For 3Q26, includes $2 million of Cenlar acquisition related expenses

Reconciliation of GAAP servicing pretax income to servicing pretax income net of valuation related changes(1)

3Q25 4Q25 1Q26 2Q26 3Q26

Net income $182 $107 $82 $22 $29

(Increase) decrease in fair value of MSRs and MSLs due to changes in

valuation inputs used in the valuation model 102 (40) (183) (118) (936)

Hedging (gains) losses associated with MSRs(1) (105) 37 221 187 964

Provision for losses on active loans 0 11 6 8 6

Non-recurring pretax items(2)

- - 3 (7) 2

Total adjustments: (3) 8 47 70 36

Assumed tax rate 25.2% 25.1% 25.1% 25.1% 25.1%

Tax impacts of adjustments 1 (2) (12) (18) (9)

Adjusted net income $180 $113 $118 $74 $56

Diluted shares outstanding 53.9 54.2 53.9 53.3 53.1

Adjusted diluted EPS $3.33 $2.08 $2.19 $1.39 $1.05

Average stockholders' equity 4,110 4,238 4,324 4,323 4,352

Annualized adjusted return on equity 17% 11% 11% 7% 5%

3Q25 4Q25 1Q26 2Q26 3Q26

Servicing pretax income $157 $37 $13 $22 $99

(Increase) decrease in fair value of MSRs and MSLs due to changes in

valuation inputs used in the valuation model 102 (40) (183) (118) (936)

Hedging (gains) losses associated with MSRs(1) (105) 37 221 187 964

Provision for losses on active loans losses on active loans 0 11 6 8 6

Servicing pretax income excluding valuation related changes $155 $45 $57 $99 $132

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