Is PennyMac Financial Services Stock a Buy?
For mortgage originators and mortgage servicers like PennyMac Financial Services (NYSE: PFSI), the current economic environment represents the best and the worst conditions.
Initial giddiness over the Fed's aggressive moves to lower interest rates turned to fear as margin calls and forbearance became threats to the industry. So far, it looks like the most immediate threat to mortgage originators -- margin calls -- has passed.
Forbearance requests remain an issue, but the Federal Housing Finance Agency has added some much-needed clarity over the past month or so to ease uncertainty there. And PennyMac was able to secure an advance facility that takes many of the potential servicing liquidity issues off the table.
Source Fool.com
