PennyMac Mortgage Investment Trust on Monday revealed in a new filing that Bank of America has increased its master repurchase agreement with the REIT by $100 million.
The newly negotiated line allows the Moorpark, Calif.-based PennyMac to tap BofA for up to $300 million.
The publicly traded PennyMac, which recently reported strong earnings, employs several former BofA officials who work in its fast-growing correspondent division.
Under the new repo line PennyMac can “sell to, and later repurchase from, BANA (Bank of America NA) newly originated residential mortgage loans that are purchased from correspondent lenders by PMC and held for sale and/or securitization.”
The principal amount paid by B of A for each eligible mortgage loan is “based on a percentage of the lesser of the market value, unpaid principal balance, purchase price or takeout price of such mortgage loan,” PennyMac says.
The nonbank REIT bought $3.4 billion of mortgage from correspondent originators during the second quarter, a stunning 88% gain from 1Q12.
