PennyMac Finl Svcs Inc

KBRA has assigned preliminary ratings to 72 classes of mortgage-backed notes from PMT Loan Trust 2026-INV7, a prime RMBS transaction sponsored by PennyMac Corp. The trust comprises 1,166 fixed-rate mortgages with an aggregate principal balance of $438.8 million as of the July 1, 2026 cut-off date. The underlying pool consists of agency-eligible loans collateralized by investment properties and second homes, with a weighted average original loan-to-value ratio of 74.8% and a weighted average original credit score of 777. KBRA's rating approach incorporated loan-level analysis through its Residential Asset Loss Model, third-party loan file due diligence, cash flow modeling, and reviews of key transaction parties and legal structure.

The thrifts and mortgage finance industry reported mixed first-quarter results, with aggregate revenues beating analyst estimates by 4.2% but next-quarter guidance coming in 6.6% below expectations. PennyMac Financial Services posted revenues of $583.1 million, up 10.8% year-on-year and 5.7% above estimates, though it missed on net interest income and tangible book value per share. Rocket Companies was the standout performer with revenues of $2.82 billion, a 108% increase that exceeded estimates by 2% and drove the fastest growth among peers. Franklin BSP Realty Trust was the weakest, with revenues of $60.39 million missing estimates by 17.4% alongside misses on net interest income and EPS. Other notable results included Columbia Financial, which beat revenue estimates by 9.1% with $66.18 million, and Arbor Realty Trust, which surpassed revenue expectations by 3.5% but saw the slowest revenue growth in the group.

The U.S. House of Representatives overwhelmingly approved a landmark bipartisan affordable housing bill, sending it to President Donald Trump for final approval. The 21st Century ROAD to Housing Act aims to boost housing supply, improve affordability, and modernize federal housing programs. Mortgage stocks rallied on the news, with Rocket Companies jumping 9.4%, PennyMac Financial Services gaining 3.9%, and loanDepot rising 5.3%. The bill could benefit mortgage companies by stimulating transaction volumes, though interest rates remain a key variable for sustained recovery.

Amazon announced a series of investments at its Delivering the Future event in London, including a more than EUR 10 billion commitment to expand and upgrade fulfillment centers in Europe with next-generation robotics. The company also said the next generation of its autonomous Proteus robot is being piloted in its labs, with deployment in Europe planned for the first half of 2027. As part of the investment, Amazon plans to grow its European fulfillment center workforce by 25,000 over the coming years. The company is also committing $1 billion to Career Choice by 2030, expanding access to fully funded training for careers in cybersecurity, software development, logistics, renewable energy, and mechatronics. Separately, PennyMac Financial Services expanded its strategic agreement with Amazon Web Services to accelerate its transformation into an AI-driven mortgage technology leader, using AWS generative AI capabilities including conversational AI-powered virtual assistant capabilities powered by Amazon Nova Sonic.

PennyMac Mortgage Investment Trust declared a cash dividend of $0.40 per common share for the second quarter of 2026. The dividend will be paid on July 24, 2026, to common shareholders of record as of July 9, 2026. The announcement was made by the company's Board of Trustees.