Sienna Chu's questions to PennyMac Financial Services Inc (PFSI) leadership • Q3 2024
Question
Sienna Chu asked about the drivers of the sequential increase in FHA and USDA delinquencies and the company's confidence in future credit performance. She also inquired about the strategy for refinancing the 5 3/8% bond due in October 2025.
Answer
David Spector (executive) attributed the delinquency rise to normal monthly variations and stated that overall rates remain very low, expressing confidence due to the strong economy and available forbearance programs. Regarding the bond, he said the company will look for refinancing opportunities but is not in a rush due to the attractive coupon and its ample liquidity of $3.8 billion, which could be used to retire the debt if needed.