Pennymac Acquires Cenlar, Expands Subservicing Portfolio by $740 Billion
Pennymac has officially announced its acquisition of Cenlar, significantly enhancing its subservicing portfolio by $740 billion. This strategic move positions Pennymac as the second-largest mortgage servicer in the United States, reinforcing its market presence.
Pennymac’s Strategic Acquisition Details
The acquisition is projected to close in the second half of 2026, pending the fulfillment of customary closing requirements, including regulatory approvals. This merger is aimed at consolidating Cenlar’s extensive expertise in subservicing with Pennymac’s substantial operational capabilities.
David Schneider, the president and CEO of Cenlar, expressed pride in what the Cenlar team has achieved. He stated that this merger will create a robust subservicing platform that is well-equipped to serve millions of homeowners across the nation.
Financial Insights and Industry Impact
- Cenlar managed a noteworthy $745 billion subservicing portfolio as of September 2025.
- In 2025, Cenlar generated $459 million in subservicing revenue.
- Pennymac previously held the 23rd position among U.S. subservicers, while it ranks 4th regarding its owned servicing portfolio, totaling $697.7 billion.
This merger is considered a significant step in expanding Pennymac’s revenue streams, particularly focusing on fee-based income that is less capital-intensive. By integrating Cenlar’s sophisticated technology and client management, Pennymac aims to enhance its service delivery and operational efficiency.
Operational Transition
Upon closing the deal, approximately 100 institutional clients will transition to Pennymac. The acquisition will further entail bringing Cenlar’s employees into Pennymac’s workforce, which is anticipated to bolster the company’s subservicing operations. Specific branches will be established at existing Cenlar locations to ensure a smooth integration process.
Future Outlook
Kevin Ryan, Pennymac’s chief strategy officer, highlighted the importance of this acquisition in aligning with the company’s strategic growth plan. As the market continues to consolidate, Ryan emphasized the necessity for operational excellence and strong technological capabilities, key components for industry leaders moving forward.
This acquisition not only elevates Pennymac’s position but also sets a new standard in the mortgage servicing landscape. With ongoing developments following the merger, the industry will be watching closely to see how this impacts both companies and their clients.
