PennyMac Financial Services Inc. (PFSI) on Tuesday reported net income of $76.3 million for the first quarter of 2025 after it posted revenue of $430.9 million.

These numbers were down from the previous quarter’s figures of $104.5 million and $470.1 million, respectively.

The California-based lender’s pretax income was $104.2 million, which was down from $129.4 million in Q4 2024 but up from $43.9 million in Q1 2024.

“PennyMac Financial delivered solid first quarter financial results, demonstrating our ability to consistently generate strong returns in a volatile market,” Pennymac chairman and CEO David Spector said in a statement.

“In our production segment, we acquired or originated nearly $30 billion in unpaid principal balance (UPB) of loans at higher note rates, which strategically positions our consumer direct division for significant growth when interest rates decline. This production led to continued growth of our servicing portfolio, which ended the quarter at $680 billion in unpaid principal balance.”

Loan acquisitions and originations — including those fulfilled for PMT, the company’s mortgage investment trust — totaled $28.9 billion in unpaid principal balance, down 19% from the prior quarter and up 33% from Q1 2024.

“[That’s] consistent with the decline in the overall market of total acquisitions and origination volumes,” Daniel Perotti, PennyMac’s senior managing director and chief financial officer, said during Tuesday’s earnings call.

Spector added that the company produced annualized operating return on equity of 15% that was “driven by continued strength in our servicing business and a solid contribution from our production segments despite elevated mortgage rates.”

Fees from fulfilling correspondent loans for PMT totaled $5.3 million in Q1 2025, down 17% from Q4 2024 but up 32% year over year. PennyMac attributed the decline to lower conventional acquisition volumes. In Q2 2025, PMT is expected to retain all jumbo production.

“In the second quarter, we expect PMT to retain approximately 15% to 25% of total conventional/conforming correspondent production, consistent with first quarter loans of note,” Perotti said. “Pursuant to our renewed mortgage banking agreement with PMT, beginning in the third quarter of 2025, all correspondent loans will initially be acquired by PFSI.”

The company’s servicing segment operating revenues saw pretax income of $76 million from January through March, down from $87.3 million in Q4 2024 and up from $23.7 million in Q1 2024.

But PennyMac’s servicing portfolio also grew to $680.2 billion in UPB, up 2% from the end of 2024 and 10% higher compared to March 2024. The company said this was driven by production volumes that more than offset prepayment activity.

PennyMac had a pretax loss of $33.7 million from corporate activities not directly attributable to its production and servicing segments. This was comparable to losses of $35.9 million in the prior quarter and $28.4 million in the same period last year.

“We ended the quarter with $4 billion of total liquidity, which includes cash and amounts available to draw on facilities where we have collateral,” Perotti said.

Despite the lower-performing numbers compared to last quarter, Spector spoke positively about the company’s future and touted its four-year partnership with the U.S Olympic and Paralympic teams.

“This phased approach allows us to strategically build brand relevance, awareness and engagement without significant upfront costs,” he said.

Above all, Spector expressed promise about PennyMac’s future performances.

“We are uniquely positioned in the industry. Our large and growing portfolio of borrowers who recently entered into mortgages at higher rates stands to benefit from a refinance in the future when interest rates decline,” he said.

“We expect further market penetration, aiming to capture a broader share of MSR owners who are seeking a best-in-class, low-cost sub-servicer. This strategic focus on sub-servicing is a testament to our commitment to diversify our revenue streams while maximizing the value of our servicing platform.”

Baby Boomers finally feel free to enjoy life.

A social poll asking whether a tax break will help around 60k Baby Boomers “rattling around” in large empty houses move on to better digs has had some surprising results.

Born after World War II to the mid 1960s, Baby Boomers have become the wealthiest generation on the planet thanks in large part to astronomical escalation in property prices, and around 60,000 are estimated to be living in homes too large for their needs that they cannot take care of without help – which prompted the question of whether a tax break might help make that decision easier. The feedback came thick and fast.

RELATED: Thousands of Qld empty-nesters refuse to budge

Aus biggest builder flags surprise housing trend giving hope

A large bulk of Aussies cannot fathom asking Baby Boomers to leave their homes for smaller properties more suited to their needs.

Around 45 per cent of 1,117 people who responded were a clear no on the question of a tax break to move on, 36 per cent were a clear yes, 13 per cent laughed, 5 per cent expressed anger and the rest loved it.

The discussion was robust. “We have all worked jolly hard for our homes. How dare you to expect us to downsize to smaller units,” said respondent Robyn Needham. “Please tell me where are these units. We sell our houses and then nowhere to live. If the units are there why cannot they live in them. Totally disgusting, leave seniors alone, we all worked hard and now you want us gone.”

Respondent Rachael Hickey commented: “This is ridiculous. People shouldn’t feel like they have to give up their homes they worked hard for” – a view supported by Ruth Griffin who said “their homes were purchased with interest of 18 per cent for a loan. You had to work and save for most, not rely on government”.

MORE: Australia’s biggest political property moguls revealed

Fresh battle to slash investor’s neg gearing, capital gains tax perks

There are government schemes to help older Aussies stay in their homes as long as they wish, paying for lawnmoving and other help.

“We rattle around in a 4 bed and I have no intention of selling up,” one respondent said. “If I do downsize the money becomes liable to tax as savings and they have had enough out of me already.”

There were many calls to look at other options including one by Lamgwynn McLeod saying “stop large scale investment buying! Limit purchasing of Australian properties to Australian citizens! Limit how many investment properties someone can own!”

Politicians’ own property portfolios were also drawn into the discussion, with Waz Virg commenting “Albo has just bought a 4 bedroom, 3 bathroom mansion for him and his fiance. Is he giving it up for a one bedroom, one bathroom bungalow that would better suit his needs?”

Maureen Meehan added “what about all the investment properties owned by ALL politicians!!”

Vonnie Meier came out firing over government policy settings that led to this pressure on Boomers: “So the government has done nothing to build more houses, has overspent, has created a cost of living crisis and suddenly it’s the fault of people who have worked hard and saved their money? Leave them alone!!!”

Another respondent Tom Duracoski had a similar thought over policy: “overseas investment should be stopped and sold back to Australian citizens. You should and must be an Australian citizens to buy land and house’s in Australia.”

MORE: Four cuts: Aus bank’s huge move before RBA

May interest rate decision already made for Reserve Bank

Baby Boomers are also facing the prospect of adult children returning to the nest after life strife and escalating cost of living.

MORE: Shock: Brisbane prices to smash Sydney

It was a view shared by respondent Nic Kieboom who commented: “For most in the current market it’s the thought of selling and giving up the large family home they worked so hard for and only pay rates on to move into a much smaller home adequate for their current needs for the same price.”

“If they choose to stay in a similar area because some suburbs are selling 2-3 bedroom townhouses and apartments for as much as a full home in the same suburb, yet they have huge body corp fees, sinking fund fees and rates to pay too. So higher weekly expenses yet your sharing walls with your neighbours.”

“I don’t blame them for not wanting to make that change. Besides most Boomers like the idea of knowing they have space for family and friends to come stay when they enjoy the social company.”

“And why is it up to the Boomers to sort the housing mess out?! Why doesn’t the government restrict or put a stop to immigrants to help ease the burden. In 5.5 years since Covid we have had 13.9 million migrants enter Australia.”

“In 23/24 financial year we had 90k less than 22/23 financial year but that’s not a significant drop when we are still reaching nearly 500k migrants a year! If the Aus gov won’t stop that amount of migrants then they need to step up to the plate and fix the housing problem, they already don’t do enough!”

Respondent Jeanette Kebblewhite said “the govt is providing home care packages to encourage the elderly to stay in their own homes as long as possible. You can’t have it both ways.”

MORE REAL ESTATE NEWS

The post ‘Totally disgusting’: Surprise results of Boomers’ empty houses poll appeared first on realestate.com.au.

23 Mitchell St, Nyora, comes with a lot of the features you might expect from a church … but no kitchen or indoor bathroom.

An old church in country Victoria with soaring ceilings, stained glass windows and polished floorboards looks like it could be the perfect place to be turned into a private home.

But, with no running water connected inside, and the nearest bathroom in the Gippsland area church’s decades-old toilet block a decent trek across the more than 1400sq m block – this holy house comes with a little bit of hell.

Barry Plant’s Joanne Gillard is selling the residential zoned property at 23 Mitchell St, Nyora with a $490,000-$530,000 asking price.

RELATED: See what home life is like for MasterChef judge

Melbourne nurse’s $1m+ boost to Good Friday Appeal

How couple in Melbourne’s west turned reno into $585,000

Ms Gillard said while it had been reinsulated and there was water connected outside as well as fairly modern mains sewerage to the property, they were being upfront with prospective buyers that those connections might not be where they’d expect.

“There’s no running water inside the building … and there’s an outside toilet that’s connected to town sewerage,” she said.

“It is very much just an outside toilet block with a look on a block of concrete with some steel walls.”

Also not in its favour, is its relatively low use for the past few decades, so the space is a bit dirtier and has a few more cobwebs in it than you otherwise might expect.

The main building is very much still the church hall it always was … and off to the right you can just make out the grey walls of the toilet block.

Completely open-plan, but with plenty of character, the hall offers opportunity for a reno.

But with the main church hall on stumps, Ms Gillard said it would be fairly easy to connect plumbing to the main building where desired.

Add in stained-glass windows, and plenty of church-hall character, and it’s compelling enough that the current owners paid $374,000 for it back in 2021, according to CoreLogic records.

She added that the current owners had occasionally used it as a weekender — with an air fryer and a microwave as makeshift a kitchenette, though had to get their water from outside.

And despite a few notable absences from the main living zone, the potential home has attracted interest already.

Ideas from buyers have included subdividing the big block to add a second home at the rear, while renovating the church hall as a short-stay holiday rental at the front.

“And it predates usage restrictions, so with the right permits and plans you could do it as residential or for commercial,” she said.

“It’s a pretty good buy for the area. Land value alone would be low-to-mid $400,000s.”

It’s easy to see how even a simple update could set the property apart as a home.

The more than 1400sq m allotment has plenty of room for a second residence.

The building also comes without any heritage protections, meaning the next owner could have it demolished or relocated if desired.

Ms Gillard is keeping an open mind to what its next chapter will look like, with the property’s online listing describing its future as anything from a cafe through to a “shrine to your collection of rare garden gnomes”.

It also pitches the 1422sq m block as “so big you’ll need a GPS just to mow the lawn” and the timber floors being perfect for “sliding around in your socks like you’re auditioning for a ‘90s music video”.

Sign up to the Herald Sun Weekly Real Estate Update. Click here to get the latest Victorian property market news delivered direct to your inbox.

MORE: Radical plan to remove Boomers, fix housing crisis in Melbourne

Why Melb identity kept empty pub licensed for six years

How Victoria’s housing crisis is hitting the cost of milk

The post Regional Victorian ex-church in Nyora for sale as potential home with outdoor toilet block, no kitchen appeared first on realestate.com.au.

A LinkedIn post by Errol Samuelson on Zillow’s private listings rule flared into a weekend skirmish that drew nearly 300 comments from executives like Robert Reffkin, Glenn Sanford and Leo Pareja.

If you have bought a newly constructed home you can check for signs of defects. Picture: Zak Simmonds

In an ideal world, newly built homes should be in excellent condition – but this isn’t an ideal world.

Hipages trade Martin Nguyen from Kubra Building Services says, in Australia, once the frame has been inspected, there are no further requirements for the site to be inspected until the certificate of occupancy.

“During that period is when a lot of things go unseen and not properly inspected,” he says.

“That’s where, generally, a lot of the short cuts stem from.”

So, if you are buying a new home, how can you tell it has been built properly? And what are some of the common problems that buyers find when their home hasn’t been well built?

Once the frame has been inspected, there isn’t a requirement for another inspection until certificate of occupancy. Picture: Getty

BUILDING SHORTCUTS

Once the frame has been inspected, unless the builder or project manager pays for independent inspectors to come at each stage of construction, the property could wind up with some unseen issues.

MORE: Shock income now considered a ‘battler’

Aussies warned of Albo, Dutton’s ‘reckless’ plan

“The issues are predominantly from really rushed construction and general cost cutting by a lot of the builders,” Nguyen says. “Waterproofing is an extremely common one – and can have extremely costly effects.”

Builder Martin Nguyen from Kubra Building Services.

Other common examples include uneven flooring, windows not being properly installed and shortcuts in insulation.

If you are building your own home, Nguyen recommends engaging building inspectors at various stages of the construction process, but if you don’t have the budget for each stage, “pre-handover inspection by an independent inspector is critical,” he says.

WHAT TO LOOK FOR

If you are buying a new home, make sure you check for signs of water damage, poor structural work and cracking as well as anything that “is too patchy or doesn’t look right,” says co-founder and director of Rethink Residential Mina O’Neill. She recently managed the build of her own home and says waterproofing and good drainage was a priority for her.

“Make sure the floor is even,” she says. “Are there gaps? What are the skirtings like?”

Check the builder’s insurance and whether the warranty is still in place when you buy the house. Picture: Asanka Ratnayake/Getty Images

Nguyen says buyers should make sure tile lines match and no grout is falling away.

“Open the cupboards and drawers and make sure everything runs smoothly,” he says.

He also suggests testing appliances and opening all the doors, explaining he has come across a buyer who bought a new home where the front door couldn’t be opened all the way because it banged into a nearby stair.

“Or the same thing will happen in the bathroom where they can’t open the door fully because it hits the vanity behind it,” he says. “It happens way too often.”

SIGNS OF A GOOD HOUSE

In contrast, a well constructed house will have clean lines, consistent paintwork and flush joinery as well as doors that open smoothly, Nguyen says.

When buying a newly built home, check the reputation of the builder or developer. Picture: David Swift

“You can just tell when you walk in and it feels really solid,” he says. “There’s no bouncing or squeaking when you walk up the steps.”

The walls are also nice and straight.

“When you look at a wall, maybe just try to have your eye in line with it,” he says. “Make sure that the walls look straight. You’d be very surprised how uneven they are.”

DUE DILIGENCE CHECKLIST

Don’t forget to check these other important things when considering a new home purchase, says director of Rethink Residential Mina O’Neill.

Rethink Residential director Mina O’Neill.

1. The builder’s reputation – longevity of the business and positive reviews are a good sign

2. Building materials – you might also find out where the finishes came from by reading the contract

3. The type of soil on site – this could help you foresee future problems like rising damp caused by sandstone

4. Strata costs – if the property is newly built, strata costs could go up

5. Warranty – get your solicitor to check the contract to make sure this is still intact

6. Pest and building report – don’t forget this important step just because it’s a new property

MORE: Surprise state where home approvals are lagging

Albo, Dutton wage war on key election issue

Inside Trump’s White House reno plans

The post Things to look at when buying a newly built house appeared first on realestate.com.au.