PennyMac Financial Services announced today that it’s launching a new technology platform for its broker channel, and it has rebranded its broker division from PennyMac Broker Direct to Pennymac TPO.
The California-based wholesale lender claimed the new tech offering, called POWER+, would give brokers “speed, control and access to expert advice,” as well as “guidance and real-time engagement.” The timeline for the platform’s launch has not been made public.
The lender’s new broker division brand identity was updated across all of its platforms, including its website and social media channels.
According to the California-based lender, the company is positioned to heavily invest in its people and technology “to help brokers reach their business goals and aspirations.”
Currently, the lender ranks sixth place among the top wholesale lenders in the nation, though its rebranding could signal that PennyMac is looking to increase its market share in the wholesale lending space.
Kim Nichols, senior managing director of Pennymac TPO, said that this announcement is more than just a name change, calling it “a stake in the ground for our partners.”
“We are deepening our commitment to this channel to help all of our broker and non-delegated correspondent partners find new ways to grow their businesses by extending the expertise, resources and power that drive our strength,” she added.
Meanwhile, despite the name change, the company said that Pennymac TPO will retain servicing.
With the market transitioning from being refinance heavy to more purchase-oriented, lenders are turning to different products and opportunities to diversify their business. In the wholesale lending space, there has been a notable push to entice brokers to come onboard.
In October 2021, Rocket Pro TPO, which was previously named Quicken Loans Mortgage Services, announced numerous initiatives to continue growing its broker channel, including connecting broker partners with real estate agents through Rocket Homes, the company’s real estate listing platform.
Furthermore, UWM, the largest wholesale lender in the nation, launched BOLT, an underwriting platform for brokers, and UWM Appraisal Direct, an appraisal option that bypasses appraisal management companies.
Mat Ishbia, CEO of UWM, noted during the company’s third quarter 2021 earnings call that, “Now more than ever, the broker channel is the fastest, easiest and cheapest way for a consumer to get a mortgage.”
Following the news, PennyMac’s stock slightly dipped and was trading lower at $66.65 mid-day.
As of Sept. 30, 2021, the lender’s production of newly originated loans totaled $257 billion in unpaid principal balance, while its serviced loans totaled $495 billion in unpaid principal balance.