The deal is expected to close in the second half of this year. This will make PennyMac the nation’s second-largest mortgage servicer and one of its largest subservicers, the company said.
PennyMac Financial Services, a mortgage servicer, announced Wednesday that it has entered into an agreement to acquire subservicing company Senler Capital Corporation for a total of $257.5 million.
The merger, disclosed in a Securities and Exchange Commission filing, will expand PennyMac’s total portfolio to more than $1 trillion in outstanding principal balance.
PennyMac will acquire Senlar for $157.5 million in cash and $85 million in contingent consideration to be paid over the next three years. Contingent consideration is a mechanism by which a company pays additional funds when a future milestone is achieved.
Senlar will add $740 billion in outstanding principal balances to PennyMac, including 2 million loans from its servicing portfolio.
“We are excited to announce this transformational step in our company’s evolution,” PennyMac CEO David Spector said in a statement. “This is the culmination of a long and thoughtful process between our organizations that began in the middle of last year.”
PennyMac said the merger is expected to close in the second half of this year. That would make PennyMac the nation’s second-largest mortgage servicer, Mr. Spector said.
“Leveraging industry-leading SSE technology further strengthens PennyMac’s position as the partner of choice for institutional sub-services and is expected to significantly grow our capital-light, fee-based revenue streams,” Spector said.
PennyMac will acquire Senlar’s subservicing business as a non-bank entity focused solely on mortgage subservicing.
PennyMac was founded in 2008 after the Great Financial Crisis. The company has about 4,900 employees and originated $145 billion in new loans last year.
The Mortgage Bankers Association ranked PennyMac Financial Services in the top 15 by total loans as of June 2025, with an estimated share of 1.33% of total loans at that time.
According to this ranking, United Wholesale Mortgage Co. was the largest originator at the time, accounting for 8.61 percent of total originations. Rocket Mortgage was second on the list with 5.57%.
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