The scrutiny stems from a January 29, 2026, disclosure regarding PennyMac’s fourth-quarter and full-year 2025 financial results. In that filing, the firm reported that pretax income in its servicing segment plummeted to $37.3 million, a sharp decline from the $157.4 million recorded the previous quarter. Management attributed the downturn to increased mortgage servicing rights cash flows, fueled by high prepayment activity as mortgage rates fell.

Investors reacted sharply to the news, sending the stock price tumbling $49.78 to close at $99.92 on January 30. The Rosen Law Firm, which specializes in securities litigation, is currently organizing a class action to seek recovery for those who held shares during the period. Attorneys Phillip Kim and Laurence Rosen are soliciting inquiries from affected investors, noting that participants would not face out-of-pocket fees under a contingency arrangement.