PennyMac under scrutiny as stock drops 33% post-earnings

A national shareholder rights law firm has launched an investigation into PennyMac Financial Services Inc. over potential violations of federal securities laws.

Glancy Prongay Wolke & Rotter LLP, which represents investors and consumers in securities litigation, said the probe follows PennyMac’s Jan. 29 release of fourth-quarter and full-year 2025 results, which showed revenue of $538 million and earnings of $1.96 per share, both of which were below analysts’ estimates.

PennyMac’s net loan servicing fees declined to $149.8 million, compared to $241.2 million in Q3 2025. The company said the increase in prepayments led to higher realization of mortgage servicing rights (MSR) cash flows.

The company also reported a 10% return on equity, missing its previous guidance of high-teens to low-20s. PennyMac did not immediately return HousingWire’s request for comment.

Following the earnings report, PennyMac’s stock fell 33% to $99.92 on Jan. 30. The law firm is encouraging investors who lost money to contact them about potentially pursuing claims.

Bloomberg reported that the decline in PennyMac shares spilled over into other mortgage-related stocks, dragging down Rocket Companies Inc., UWM Holdings Corp., Onity Group Inc. and LoanDepot Inc. Some of these losses were recovered in Monday’s trading, the outlet reported.