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PennyMac Financial Services amends repurchase agreements

PennyMac Financial Services Inc. and JPMorgan Chase Bank NA on May 23 amended a repurchase agreement allowing PennyMac Loan Services LLC to sell newly originated mortgages to JPMorgan and later repurchase them.

The tweak increased the maximum aggregate principal amount to $500 million from $200 million. The Aug. 19, 2016, agreement, is committed to Oct. 13.

In the same regulatory filing, PennyMac Financial disclosed it had also extended a March 17, 2011, repurchase agreement with Bank of America NA to May 25, 2018. The maximum aggregate principal amount was also increased to $800 million, but only from May 26 through Aug. 31. After Aug. 31, the maximum reverts to $500 million.

Under the agreement, PennyMac Loan Services may sell to, and later buy back from, Bank of America newly originated residential mortgages that it originated or acquired from correspondent lenders through PennyMac Mortgage Investment Trust.