Pennymac profit drops in Q2 as rates bite, layoffs follow

PennyMac Financial Services on Wednesday reported second-quarter 2026 net income of $22 million, down 84% from a year earlier and sharply lower than its first-quarter net income of $82.3 million, as higher interest rates reduced mortgage production volume and weighed on profitability. The company’s weaker quarter came in tandem with layoffs by the Westlake Village, California-based mortgage lender and servicer, which were confirmed by the company on Wednesday. The company also closed its office in Franklin, Tennessee, a month ago when staff in its consumer direct lending operations were laid off. “As we align our operations accordingly, the organization has made the difficult decision to eliminate select positions within its lending and mortgage fulfillment operations,” a Pennymac spokesperson told HousingWire. Pennymac earned 41 cents per diluted share for Q2 2026, compared with $2.54 per share in Q2 2025. Total net revenue rose 12% year over year to $497 million. Adjusted net income, a non-GAAP measure, was $74 million, or $1.39 per diluted share, down from $124 million, or $2.31 per share, a year earlier. Adjusted net revenue increased 5% to $566 million. “While our operational ...