Earnings release
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1 PennyMac Financial Services, Inc. Reports Second Quarter 2026 Results WESTLAKE VILLAGE, Calif. – July 29, 2026 – PennyMac Financial Services, Inc. (NYSE: PFSI) today reported net income of $22 million, or $0.41 in diluted earnings per share (EPS), on total net revenues of $497 million for the second quarter of 2026. Adjusted net income was $74 million, or $1.39 in adjusted diluted EPS, on adjusted net revenues of $566 million 1. PFSI’s Board of Directors declared a second quarter cash dividend of $0.30 per share, payable on August 27, 2026, to common stockholders of record as of August 17, 2026. CEO Commentary “PennyMac Financial generated a 2% annualized return on equity and a 7% annualized adjusted return on equity1 in the second quarter,” said Chairman and CEO David Spector. “While our operational execution remained solid, our results fell short of expectations due to higher interest rates during the period. As a result, we are actively taking steps to realign our cost structure to enhance profitability.” Mr. Spector continued, “Additionally, ongoing investments in technology are providing the structural leve rage required to streamline our production division and lower our cost-to-produce without compromising capacity or the customer experience. Importantly, our recapture rates improved meaningfully in the second quarter, positioning us to capture significant upside when the origination market expands. As we onboard Cenlar’s subservicing portfolio, our tech-enabled efficiency and massive scale are expected to allow us to realize substantial operating leverage. We believe this fee-based revenue stream is a key component that will help us achieve our long-term ROE targets.” The table below highlights key financial performance metrics1: ($ in millions except per share metrics) 2Q26 1Q26 2Q25 Q/Q Y/Y Total net revenues 497 545 445 (9)% 12% Net income 22 82 136 (74)% (84)% Diluted EPS $ 0.41 $ 1.53 $ 2.54 (73)% (84)% Annualized return on equity (ROE) 2% 8% 14% (6)% (12)% Adjusted net revenues 566 589 537 (4)% 5% Adjusted net income 74 118 124 (37)% (40)% Adjusted diluted EPS $ 1.39 $ 2.19 $ 2.31 (37)% (40)% Annualized adjusted ROE 7% 11% 13% (4)% (6)% Book value per share $ 83.49 $ 83.31 $ 78.04 0% 7% Cash dividends declared per common share $ 0.30 $ 0.30 $ 0.30 -- -- 1 Items labeled as “adjusted” are non-GAAP financial measures. See pages 9 and 10 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.
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2 Key Operating and Financial Metrics ● Annualized ROE was 2%, down from 14% in the second quarter of 2025 ● Annualized adjusted ROE was 7%2, down from 13% in the second quarter of 2025 ● Total loan acquisitions and originations were $34.9 billion in unpaid principal balance (UPB), down 8% from the second quarter of 2025 ○ Consumer direct originations were $5.6 billion in UPB, up 103% from the second quarter of 2025 ● Production revenue margins3 were 77 basis points of total fallout adjusted lock volume, up from 55 basis points in the second quarter of 2025; production segment pretax income was $38 million, down from $58 million in the second quarter of 2025 ● Owned servicing portfolio totaled $488 billion in UPB at June 30, 2026, up 5% from June 30, 2025 ● Servicing segment pretax income was $22 million, down from $54 million in the secon d quarter of 2025; pretax income excluding valuation-related changes was $99 million, up from $57 million in the prior quarter and down from $146 million in the second quarter of 2025 ● Pretax loss from Corporate and other was $29 million, compared to $35 million in the second quarter of 2025 ● Book value per share was $83.49 at June 30, 2026, up 7% from June 30, 2025 Business Highlights ● Our new consumer direct loan origination system has facilitated a rapid implementation of process-automating AI agents, including the launch of a proprietary Natural Language Virtual Agent (NLVA) across both outbound and inbound calls ● Conventional first-lien refinance recapture rates increased 7 percentage points from the prior quarter to 29% and government first-lien recapture rates increased 9 percentage points from the prior quarter to 59% ● Continued to make progress on the acquisition of Cenlar’s subservicing business and expect the transaction to close in the fourth quarter ● Expanded our strategic partnership with Amazon Web Services to further bolster our transformation as an AI-driven mortgage technology leader Guidance ● With a smaller projected origination market due to higher interest rates, we expect adjusted ROEs to remain in the high single digits through 2026 as we reduce our expense base 2 See page 9 for a reconciliation of GAAP net income to annualized adjusted return on equity 3 Presented net of loan origination expense
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3 Production Segment Highlights The table below highlights key operating metrics and financial performance in the production segment: 2Q26 1Q26 2Q25 Q/Q Y/Y Volume ($ UPB in billions) Total fallout adjusted locks 31.5 38.0 38.6 (17)% (18)% Consumer Direct 4.5 6.6 2.4 (32)% 87% Broker Direct 6.5 7.1 5.4 (8)% 21% Correspondent 20.5 24.3 30.8 (16)% (33)% Total acquisitions and originations 34.9 37.0 37.9 (6)% (8)% Government loan first lien refinance recapture rate(1) 59% 50% 44% 9% 15% Conventional loan first lien refinance recapture rate(1) 29% 22% 17% 7% 12% Profitability ($ in millions) Revenues(2) 243 327 211 (26)% 15% Expenses(2) 205 194 153 6% 34% Pretax income 38 134 58 (71)% (33)% Revenues(2) as basis points of fallout adjusted locks 77 86 55 (9) 23 Pretax income as basis points of fallout adjusted locks 12 35 15 (23) (3) 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 (2) Presented net of loan origination expense Consumer direct fallout adjusted lock volumes were $4.5 billion in UPB, down from $6.6 billion in the prior quarter and up from $2.4 billion in the second quarter of 2025. The decrease from the prior quarter was driven by lower refinance volumes due to higher rates, and the increase from the second quarter of 2025 was driven by increased refinance activity and higher refinance recapture rates. Broker direct fallout adjusted lock volumes were $6.5 billion in UPB, down from $7.1 billion in the prior quarter and up from $5.4 billion in the second quarter of 2025. The increase from the second quarter of 2025 was driven by market share gains and a larger origination market. Correspondent fallout adjusted lock volumes were $20.5 billion in UPB, down from $24.3 billion in the prior quarter and $30.8 billion in the second quarter of 2025, both as a result of a highly competitive environment. Production segment pretax income was $38 million, down from $134 million in the prior quarter and $58 million in the second quarter of 2025. Revenues net of loan origination expenses were $243 million, down from $327 million in the prior quarter and up from $211 million in the second quarter of 2025. The decline from the prior quarter was primarily driven by lower volumes in the consumer direct and correspondent channels, and a $36 million adverse shift in post-lock impacts driven by market price changes on specialized pools and other cross -channel impacts.
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4 Expenses net of loan origination expenses were $205 million, up from $194 million in the prior quarter and $153 million in the second quarter of 2025. The increase from the prior quarter was due to higher capacity and funded unit volume in the consumer direct lending channel. Servicing Segment Highlights The table below highlights key operating metrics and financial performance in the servicing segment: 2Q26 1Q26 2Q25 Q/Q Y/Y Servicing portfolio Total UPB ($ in billions, at period end) 731 720 700 1% 4% Owned servicing 488 474 463 3% 5% Subservicing 235 237 230 (1)% 2% Loans held for sale 8 10 7 (22)% 13% Actual CPR (owned portfolio) 11.6% 13.7% 8.5% (2.1)% 3.1% 60+ Day Delinquency (owned portfolio, at period end) 4.1% 4.2% 3.2% (0.1)% 0.9% Profitability (in millions)(1) Loan servicing fees 536 532 507 1% 6% Earnings on custodial balances and deposits and other income 119 105 116 13% 2% Realization of mortgage servicing rights (MSR) cash flows (323) (355) (263) (9)% 23% EBO loan-related income(2) 37 34 32 9% 15% Revenues excluding valuation-related items 369 316 392 17% (6)% Operating expenses 76 81 77 (6)% (2)% Payoff-related expenses(3) 29 31 17 (8)% 66% Credit losses and provisions for defaulted loans 26 23 22 13% 19% Interest expense 140 125 130 12% 8% Expenses excluding valuation-related items 270 260 246 4% 10% Pretax income excluding valuation-related items 99 57 146 75% (32)% MSR fair value changes 118 183 16 N/M N/M Hedging results(4) (187) (221) (112) N/M N/M (Provision for) reversal of losses on active loans (8) (6) 4 N/M N/M Valuation-related items (77) (44) (92) N/M N/M Pretax income 22 13 54 71% (60)% May not sum due to rounding (1) Non-GAAP presentation - see pages 10 and 13 (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 $488 billion in UPB at June 30, 2026, up 5% from June 30, 2025 as additions from production more than offset runoff from prepayments. Servicing segment pretax income was $22 million, up from $13 million in the prior quarter and down from $54 million in the second quarter of 2025. Servicing segment pretax income excluding valuation -related items was $99 million, up from $57 million in the prior quarter and down from $146 million in the second quarter of 2025.
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5 Servicing revenues excluding valuation-related items totaled $369 million, up from $316 million in the prior quarter and down from $392 million in the second quarter of 2025. The in crease from the prior quarter was primarily due to lower realization of MSR cash flows, reflecting lower prepayment speeds, and an increase in earnings on custodial deposits and other income due to higher average balances. The decrease from the second quarter of 2025 was primarily due to higher realization of MSR cash flows from increased runoff partially offset by increased loan servicing fees. Servicing expenses excluding valuation-related items were $270 million, up from $260 million in the prior quarter and $246 million in the second quarter of 2025. The increase from the prior quarter was primarily due to higher interest expense due to higher average balances of outstanding financing for MSRs. The increase from the second quarter of 2025 was primarily due to higher interest expense, payoff-related expense, as well as losses and provisions for defaulted loans. MSR and hedging-related losses were $77 million, compared to $44 million in the prior quarter and $92 million in the second quarter of 2025. These losses included $52 million in hedge costs, compared to $14 million in the prior quarter and $54 million in the second quarter of 2025. Corporate and Other Pretax loss from corporate and other was $29 million, compared to $42 million in the prior qu arter and $35 million in the second quarter of 2025. Revenues were $23 million, up from $13 million in the prior quarter and $12 million in the second quarter of 2025, both primarily due to a non-recurring gain resulting from an increase in the value of our minority equity interest in Vesta. Expenses were $52 million, down slightly from $55 million in the prior quarter and up from $47 million in the second quarter of 2025. The decrease from the prior quarter was driven primarily by lower marketing and advertising expenses, as the prior quarter contained elevated expenses related to the 2026 Winter Olympics. The increase from the second quarter of 2025 was primarily driven by higher marketing and advertising expenses and legal 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 Wednesday, July 29, 2026. Management will also host a conference call and live audio webcast at 5:00 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. ***
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6 About PennyMac Financial Services, Inc. PennyMac Financial Services, Inc. is a specialty financial services firm focused on the production and servicing of U.S. mortgage loans and the management of investments related to the U.S. mortgage market. Founded in 2008, the company is recognized as a leader in the U.S. residential mortgage industry and employs approximately 5,500 people across the country. For the twelve months ended June 30, 2026, PFSI’s production of newly originated loans totaled $151 billion in UPB, making it a top lender in the nation. As of June 30, 2026, PFSI serviced loans totaling $731 billion in UPB, making it a top mortgage servicer in the nation. Additional information about PFSI 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. 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; purchase and sales opportunities for 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 criteri a; 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 imple ment
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7 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 p ay dividends to our stockholders; 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. 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, 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.
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8 Consolidated Statements of Income ($ in millions, except per share amounts) 2Q26 1Q26 4Q25 3Q25 2Q25 Y/Y Revenue Owned servicing fees 471 469 463 460 436 8% Subservicing fees 20 21 21 21 22 (6)% Ancillary and other fees 45 42 48 54 50 (10)% Total loan servicing fees 536 532 532 535 507 6% Realization of MSR cash flows (323) (355) (383) (290) (263) 23% Changes in fair value of MSRs due to changes in fair value inputs 118 183 40 (102) 16 N/M Hedging results (186) (207) (39) 98 (109) N/M Net servicing income 146 153 150 241 150 (3)% Net gains on loans held for sale 280 345 302 314 235 19% Loan origination fees 70 72 68 62 59 18% Fulfillment fees from PMT 5 6 7 6 6 (14)% Interest income 242 208 264 249 222 9% Interest expense (271) (250) (263) (250) (240) 13% Net interest (expense) income (28) (42) 1 (1) (18) 60% Management fees 7 7 7 7 7 (1)% Other revenues 18 4 4 4 6 N/M Total net revenues 497 545 538 633 445 12% Expenses Compensation 223 216 208 205 188 19% Technology 44 46 35 45 42 5% Mortgage loan origination 94 80 70 69 69 36% Professional services 16 14 10 10 8 90% Servicing 43 38 43 29 28 50% Occupancy and equipment 11 10 10 9 8 28% Marketing and advertising 17 21 10 14 12 36% Other expenses 18 14 16 15 12 50% Total expenses 465 440 404 397 368 26% Income before provision for (benefit from) income taxes 32 105 134 236 76 (59)% Income taxes 10 22 28 55 (60) N/M Net income 22 82 107 182 136 (84)% Weighted average shares outstanding Basic 51.9 52.1 52.0 51.7 51.7 1% Diluted 53.3 53.9 54.2 53.9 53.6 (1)% Earnings per share Basic $ 0.42 $ 1.58 $ 2.05 $ 3.51 $ 2.64 (84)% Diluted $ 0.41 $ 1.53 $ 1.97 $ 3.37 $ 2.54 (84)% Cash dividends declared per common share $ 0.30 $ 0.30 $ 0.30 $ 0.30 $ 0.30 -- May not sum due to rounding
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9 Non-GAAP Reconciliations ($ in millions, except per share amounts) Reconciliation of GAAP Total net revenues to Adjusted net revenues 2Q26 1Q26 4Q25 3Q25 2Q25 Total net revenues 497 545 538 633 445 Increase (decrease) in fair value of MSRs and MSLs due to changes in valuation inputs used in the valuation model 118 183 40 (102) 16 Hedging gains (losses) associated with MSRs(1) (187) (221) (37) 105 (112) Provision for credit losses on active loans (8) (6) (11) (0) 4 Non-recurring revenues(2) 9 0 0 0 0 Adjusted net revenues 566 589 546 630 537 May not sum due to rounding (1) Includes principal-only stripped MBS valuation-related accretion changes included in interest income for GAAP purposes (2) 2Q26 non-recurring revenues consist of a $9 million valuation gain relat ed to investments in closely held entities Reconciliation of GAAP Net Income to Adjusted net income, Adjusted diluted EPS and Adjusted return on equity (ROE) 2Q26 1Q26 4Q25 3Q25 2Q25 Net income 22 82 107 182 136 (Increase) decrease in fair value of MSRs and MSLs due to changes in valuation inputs used in the valuation model (118) (183) (40) 102 (16) Hedging (gains) losses associated with MSRs(1) 187 221 37 (105) 112 Provision for (reversal of) losses on active loans 8 6 11 0 (4) Non-recurring pretax items(2) (7) 3 0 0 0 Total adjustments: 70 47 8 (3) 92 Tax rate for adjustments 25.1% 25.1% 25.1% 25.2% 25.2% Tax impacts of adjustments (18) (12) (2) 1 (23) Non-recurring tax adjustment 0 0 0 0 (82) Adjusted net income 74 118 113 180 124 Diluted shares outstanding 53.5 53.9 54.2 53.9 53.6 Adjusted diluted EPS $ 1.39 $ 2.19 $ 2.08 $ 3.33 $ 2.31 Average stockholders' equity 4,323 4,324 4,238 4,110 3,940 Annualized return on equity (ROE) 2% 8% 10% 18% 14% Annualized adjusted ROE 7% 11% 11% 17% 13% May not sum due to rounding (1) Includes principal-only stripped MBS valuation-related accretion changes included in interest income for GAAP purposes (2) 2Q26 non-recurring pretax items include a $9 million valuation gain related to investments in closely held entities and $1 millio n of Cenlar acquisition related expenses
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10 Non-GAAP Reconciliations (continued) ($ in millions) Reconciliation of GAAP Net income to Adjusted EBITDA 2Q26 1Q26 4Q25 3Q25 2Q25 Net income 22 82 107 182 136 Provision for (benefit from) income taxes 10 22 28 55 (60) Income (loss) before provisions for income taxes 32 105 134 236 76 Depreciation and amortization 14 14 13 13 15 (Increase) decrease in fair value of MSRs and MSLs due to changes in valuation inputs used in the valuation model (118) (183) (40) 102 (16) Hedging (gains) losses associated with MSRs(1) 187 221 37 (105) 112 Provision for (reversal of) losses on active loans 8 6 11 0 (4) Stock-based compensation 4 2 8 10 8 Non-recurring items(2) (7) 3 0 0 0 Interest expense on corporate debt and capital lease 83 83 83 78 70 Adjusted EBITDA 204 251 246 335 261 May not sum due to rounding (1) Includes principal-only stripped MBS valuation-related accretion changes included in interest income for GAAP purposes (2) 2Q26 non-recurring pretax items include a $9 million valuation gain related to investments in closely held entities and $1 millio n of Cenlar acquisition related expenses Reconciliation of GAAP servicing pretax income to servicing pretax income net of valuation related changes 2Q26 1Q26 4Q25 3Q25 2Q25 Servicing pretax income 22 13 37 157 54 (Increase) decrease in fair value of MSRs and MSLs due to changes in valuation inputs used in the valuation model (118) (183) (40) 102 (16) Hedging (gains) losses associated with MSRs(1) 187 221 37 (105) 112 Provision for (reversal of) losses on active loans 8 6 11 0 (4) Servicing pretax income net of valuation related changes 99 57 45 155 146 May not sum due to rounding (1) Includes principal-only stripped MBS valuation-related accretion changes included in interest income for GAAP purposes
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11 Production Segment Profitability and Key Metrics ($ in millions) Production Segment Contribution to Pretax Income 2Q26 1Q26 4Q25 3Q25 2Q25 Y/Y Net gains on loans held for sale at fair value 245 311 276 280 204 20% Loan origination fees 70 72 68 62 59 18% Fulfillment fees from PMT 5 6 7 6 6 (14)% Interest income 119 113 129 111 104 14% Interest expense (105) (96) (109) (98) (94) 12% Net interest income 14 17 20 14 11 35% Other revenues 3 0 0 0 0 N/M Net revenues 337 407 371 362 280 21% Compensation 146 136 123 114 104 40% Technology 30 30 28 31 28 8% Loan origination expenses 94 80 70 69 69 36% Professional Services 5 6 4 3 4 42% Occupancy and equipment 6 5 5 4 4 50% Marketing and advertising 12 12 9 12 10 18% Other expenses 6 4 5 4 3 N/M Expenses 299 273 244 239 222 35% Pretax income 38 134 127 123 58 (33)% May not sum due to rounding
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12 Production Segment Profitability and Key Metrics (continued) ($ UPB in billions) Production Segment Volumes and Key Metrics 2Q26 1Q26 4Q25 3Q25 2Q25 Y/Y Volumes Consumer direct fallout adjusted locks 4.5 6.6 5.0 3.9 2.4 87% Broker direct fallout adjusted locks 6.5 7.1 5.6 5.9 5.4 21% Correspondent fallout adjusted locks 20.5 24.3 30.5 27.2 30.8 (33)% Total fallout adjusted locks 31.5 38.0 41.0 37.0 38.6 (18)% Consumer direct originations 5.6 6.0 5.2 3.1 2.8 103% Broker direct originations 7.0 6.7 6.5 5.6 5.3 32% Correspondent acquisitions 22.3 24.4 30.5 27.8 29.8 (25)% Total acquisitions and originations 34.9 37.0 42.2 36.5 37.9 (8)% Consumer direct locks 6.1 9.2 7.4 6.0 3.8 62% Broker direct locks 8.5 9.5 7.6 8.0 7.2 19% Correspondent locks 21.8 26.1 31.8 29.3 32.2 (32)% Total locks 36.5 44.8 46.8 43.2 43.1 (15)% Key Metrics Revenues(1) as basis points of fallout adjusted locks 77 86 73 79 55 23 Pretax income as basis points of total fallout adjusted locks 12 35 31 33 15 (3) Consumer direct margins(2) 3.17% 2.67% 2.74% 3.28% 4.08% (22)% Broker direct margins(2) 1.04% 0.99% 1.01% 0.97% 0.87% 19% PFSI correspondent margins(2) 0.29% 0.28% 0.25% 0.30% 0.25% 15% % Purchase acquisitions and originations 69% 58% 66% 83% 83% N/M Government loan first lien refinance recapture rate(3) 59% 50% 51% 48% 44% 15% Conventional loan first lien refinance recapture rate(3) 29% 22% 17% 16% 17% 12% WA FICO at acquisition / origination 742 749 747 749 746 (4) WA DTI at acquisition / origination 40 40 40 40 41 (1) May not sum due to rounding (1) Net of loan origination expenses (2) Revenue contribution excluding post-lock 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
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13 Servicing Segment Profitability and Key Metrics ($ in millions) Servicing Segment Contribution to Pretax Income 2Q26 1Q26 4Q25 3Q25 2Q25 Y/Y Owned servicing fees 471 469 463 460 436 8% Subservicing fees 20 21 21 21 22 (6)% Ancillary and other fees 45 42 48 54 50 (10)% Total loan servicing fees 536 532 532 535 507 6% Realization of MSR cash flows (323) (355) (383) (290) (263) 23% Changes in MSR fair value due to changes in valuation inputs 118 183 40 (102) 16 N/M Hedging results (186) (207) (39) 98 (109) N/M Net loan servicing fees 146 153 150 241 150 (3)% Gains on loans held for sale 35 34 26 34 31 15% Interest income 123 95 135 137 117 5% Interest expense (166) (154) (154) (152) (146) 14% Net interest expense (43) (59) (19) (15) (29) 48% Other revenues (2) (2) (2) (1) 1 N/M Net revenues 137 125 154 259 153 (11)% Compensation 52 53 52 52 51 1% Technology 8 11 11 10 10 (11)% Servicing 43 38 43 29 28 50% Other expenses 12 11 11 11 10 20% Expenses 115 112 117 102 99 16% Servicing pretax income 22 13 37 157 54 (60)% May not sum due to rounding
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14 Servicing Segment Profitability and Key Metrics (continued) ($ UPB in billions) Servicing Segment Portfolio and Key Metrics 2Q26 1Q26 4Q25 3Q25 2Q25 Y/Y Servicing Portfolio ($ UPB in billions, at period end) Owned MSR UPB 488 474 462 470 463 5% Subserviced UPB 235 237 263 239 230 2% Loans held for sale 8 10 9 7 7 13% Total UPB 731 720 734 717 700 4% Total loans serviced (in thousands) 2,753 2,725 2,788 2,746 2,704 2% Key Metrics (owned portfolio, at period end except CPR) 60+ Day Delinquency 4.1% 4.2% 4.2% 3.4% 3.2% 0.9% Actual CPR 11.6% 13.7% 13.0% 8.6% 8.5% 3.1% Weighted average coupon 5.1% 5.1% 5.0% 4.9% 4.7% 0.4% Weighted average servicing fee 0.39% 0.39% 0.39% 0.39% 0.39% 0.00% Servicing fee multiple 5.6x 5.5x 5.3x 5.3x 5.3x 0.3x May not sum due to rounding
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15 Corporate & Other Profitability ($ in millions) 2Q26 1Q26 4Q25 3Q25 2Q25 Y/Y Management fees 7 7 7 7 7 (1)% Interest income 0 0 0 0 1 N/M Interest expense 0 0 0 0 0 N/M Net interest income (expense) 0 0 0 0 1 N/M Other revenues 16 6 6 4 4 N/M Net revenues 23 13 13 12 12 98% Compensation 25 28 33 39 32 (21)% Technology 6 5 (3) 4 5 20% Marketing and advertising 5 9 1 1 2 170% Professional Services 9 7 4 5 3 180% Occupancy and equipment 2 2 2 2 2 28% Other expenses 6 5 6 5 4 34% Expenses 52 55 43 56 47 10% Corporate & Other pretax loss (29) (42) (30) (44) (35) (19)% May not sum due to rounding
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16 Consolidated Balance Sheets ($ in millions) 6/30/26 3/31/26 12/31/25 9/30/25 6/30/25 Y/Y Assets Cash 214 220 302 622 162 32% Short-term investment at fair value 534 434 410 62 462 16% Principal-only stripped mortgage-backed securities at fair value 609 659 723 774 785 (22)% Loans held for sale at fair value 7,820 9,954 9,123 7,490 6,961 12% Derivative assets 202 283 188 202 181 12% Servicing advances, net 589 623 590 396 431 37% Mortgage servicing rights at fair value 10,587 10,149 9,599 9,654 9,531 11% Loans eligible for repurchase 8,291 8,594 7,410 5,417 4,963 67% Other assets 1,013 1,028 1,045 783 746 36% Total Assets 29,859 31,944 29,389 25,401 24,222 23% Liabilities Assets sold under agreements to repurchase 8,435 10,178 8,794 7,130 7,344 15% Mortgage loan participation purchase and sale agreements 696 691 697 699 700 (1)% Notes payable secured by mortgage servicing assets 1,426 1,426 1,326 1,326 1,327 7% Unsecured senior notes 4,837 4,834 4,832 4,829 4,185 16% Accounts payable and accrued expenses 437 459 644 476 395 11% Income taxes payable 1,216 1,206 1,184 1,151 1,097 11% Liability for mortgage loans eligible for repurchase 8,291 8,594 7,410 5,417 4,963 67% Other liabilities 184 229 194 164 178 4% Total Liabilities 25,523 27,618 25,080 21,193 20,189 26% Stockholders' Equity 4,337 4,326 4,309 4,208 4,033 8% May not sum due to rounding
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17 Capital and Liquidity ($ in millions) 2Q26 1Q26 4Q25 3Q25 2Q25 Y/Y Liquidity Cash and short-term investments 749 654 712 684 624 20% Amounts available to draw on facilities with collateral pledged 3,261 3,507 3,928 4,288 3,538 (8)% Total liquidity 4,010 4,161 4,639 4,972 4,163 (4)% Total liquidity as a % of MSR fair value 38% 41% 48% 52% 44% (6)% Capital Total equity 4,337 4,326 4,309 4,208 4,033 8% (-) Capitalized software 111 112 108 105 112 (1)% Tangible equity 4,226 4,214 4,201 4,103 3,920 8% Face value of unsecured senior notes 4,900 4,900 4,900 4,900 4,250 15% Face value of MSR term notes and loans 1,330 1,330 1,330 1,330 1,230 8% Amount drawn on variable funding note 1,145 860 410 230 905 27% Freddie Mac MSR facilities 310 235 -- -- 100 210% Face value of non-funding debt 7,685 7,325 6,640 6,460 6,485 19% Face value of assets sold under agreements to repurchase(1) 7,085 9,189 8,391 6,908 6,447 10% Face value of mortgage loan participation purchase and sale agreements 696 691 697 700 701 (1)% Face value of funding debt 7,782 9,880 9,088 7,608 7,148 9% Face value of total debt 15,467 17,205 15,728 14,068 13,633 13% Unamortized debt issuance costs (72) (76) (80) (84) (76) (6)% Carrying value of total debt 15,395 17,129 15,648 13,984 13,557 14% Total assets 29,859 31,944 29,389 25,401 24,222 23% (-) Capitalized software 111 112 108 105 112 (1)% Adjusted assets 29,748 31,832 29,281 25,296 24,110 23% (-) Loans eligible for repurchase 8,291 8,594 7,410 5,417 4,963 67% Adjusted assets less loans eligible for repurchase 21,458 23,237 21,871 19,879 19,147 12% Capital Ratios Non-funding debt / total equity(2) 1.8x 1.7x 1.5x 1.5x 1.6x 0.2x Non-funding debt / tangible equity(2) 1.8x 1.7x 1.6x 1.6x 1.7x 0.2x Total debt / total equity 3.6x 4.0x 3.7x 3.3x 3.4x 0.2x Total debt / tangible equity 3.7x 4.1x 3.7x 3.4x 3.5x 0.2x Total equity / adjusted assets less loans eligible for repurchase 20.2% 18.6% 19.7% 21.2% 21.1% (0.8)% Tangible equity / adjusted assets less loans eligible for repurchase 19.7% 18.1% 19.2% 20.6% 20.5% (0.8)% 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 p ortion of the Freddie Mac MSR facilities (2) Uses face value of debt outstanding