PennyMac Mortgage Investment Trust, through an affiliate, has increased an existing repurchase agreement with Credit Suisse First Boston Mortgage Capital.
According to a new Securities and Exchange Commission filing, the deal was amended earlier in the month increasing its size to $250 million from $150 million.
PennyMac has agreed to pay CSFB a fee for restructuring the deal “as well as certain other administrative costs and expenses.”
The original terms call for wholly owned subsidiary, PennyMac Corp. to sell and later repurchase, newly originated mortgage loans. In other words, the publicly traded REIT is using the repo facility to fund new production.
Based in Calabasas, Calif., PennyMac is a correspondent purchaser of closed loans.
“Upon the repurchase of a mortgage loan, PMC is required to repay CSFB the principal amount related to such mortgage loan plus accrued interest (at a rate reflective of the current market and based on CSFB's cost of funds plus a margin) to the date of such repurchase,” the SEC filing notes.
The repurchase agreement is committed through October 30, 2012.
