PennyMac Mortgage Investment Trust has entered into a structured finance transaction under which three of its subsidiaries, PennyMac Corp., PennyMac Holdings LLC and PMT Issuer Trust FMSR, may finance Fannie Mae mortgage servicing rights and excess servicing spreads related to such rights, according to a Form 8-K filing.
In connection with the PennyMac Mortgage Investment Trust MSR facility or the excess servicing spread, PennyMac Corp. pledges to sell to PMT Issuer Trust FMSR participation certificates representing MSRs and ESS pursuant to the terms of a master repurchase agreement dated Dec. 20. In return, PMT Issuer Trust has issued to PennyMac Corp. the series 2017-VF1 note, known as the PMT Issuer Trust FMSR collateralized notes, series 2017-VF1 (VFN).The maximum principal balance of the variable funding note is $1.0 billion.
The issuer trust may from time to time issue term notes pursuant to the terms of a base indenture dated Dec. 20. Citibank NA is serving as indenture trustee, calculation agent, paying agent and securities intermediary, and Credit Suisse First Boston Mortgage Capital LLC is acting as administrative agent.
Additionally, on Dec. 20, PennyMac Corp. entered into a master repurchase agreement and sold PMT Issuer Trust FMSR collateralized notes, series 2017-VF1 to Credit Suisse AG, Cayman Islands branch, with an agreement to repurchase the notes at a later date.
The repurchase agreement has an initial term of two years, which may be extended for one additional two-year term by mutual consent, and an additional one-year amortizing period after the initial or extended term. The agreement provides for a maximum purchase price of $375 million.