"Cenlar has a subservicing platform with $740 billion in unpaid principal balance (UPB) and 2 million loans across 100 clients, generating about $460 million in revenue in 2025. But $307 billion in UPB will not transition to Pennymac because some clients mainly UWM are bringing their subservicing activities in house. Pennymac tied part of the acquisition cost $85 million in contingent consideration payable over three years to client retention."
"Cenlar is profitable, Ryan said, and it owns a 17% subservicing market share, with banks and credit unions accounting for 70% of its clients. Pennymac expects fees to account for 10% of its revenue in 2027 and for its servicing business to become the second largest in the country, with a $1 trillion portfolio. Ryan spoke with HousingWire on Thursday about what the deal means for Pennymac and Cenlar. Editor's note: This interview was edited for clarity and length."
Pennymac plans to acquire Cenlar's subservicing business, which manages $740 billion UPB and two million loans across roughly 100 clients, generating about $460 million in 2025. Approximately $307 billion in UPB will not transition because some clients, mainly UWM, are bringing subservicing in-house. Pennymac structured $85 million of the acquisition price as contingent consideration payable over three years tied to client retention. Cenlar is profitable and holds a 17% subservicing market share, with banks and credit unions representing 70% of its clients. Pennymac expects fees to account for 10% of revenue in 2027 and aims to build a $1 trillion servicing portfolio.
Read at www.housingwire.com
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