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The drop in profit and lock volume gives loan officers a clean read on how rate pressure is still hitting production capacity and lender staffing.
Pennymac’s second-quarter profit fell sharply, with net income dropping to $22 million, down 84% from a year earlier, according to HousingWire’s July 29 report on the company’s earnings. The report also said lock volume declined 18% and adjusted return on equity slipped to 7%.
HousingWire also reported that layoffs followed the weaker results. For mortgage professionals, the story is less about one company’s quarter and more about what declining lock volume can do to staffing, pricing discipline, pipeline management, and lender appetite when rates keep borrowers on the sidelines.