PennyMac Mortgage Investment Trust, through wholly owned subsidiary PennyMac Corp., has executed a temporary increase letter related to a master repurchase agreement that the subsidiary entered into with Deutsche Bank AG, Cayman Islands branch.
Under the master repurchase agreement, PennyMac Corp. may sell to Deutsche Bank, and later repurchase, newly originated mortgage loans in an aggregate principal amount of up to $500 million. The repurchase agreement is set to expire Aug. 18, 2019, unless earlier terminated. PennyMac Corp.'s obligations are fully guaranteed by PennyMac Mortgage Investment Trust and the mortgage loans are serviced by PennyMac Financial Services Inc. unit PennyMac Loan Services LLC.
Under the terms of the temporary increase letter, the maximum aggregate principal amount provided for under the master repurchase agreement was temporarily increased to $540 million from $500 million. The period for the temporary increase started Dec. 13 and will expire Dec. 20. Once the temporary increase expires, the maximum aggregate principal amount will revert back to $500 million.