PennyMac Investigation Overview
BFA is investigating whether PennyMac violated the federal securities laws by making false and misleading statements to investors regarding PennyMac’s ability to retain borrowers seeking to refinance their mortgages—a process known as “recapture.” Investors may be able to file a class action to potentially recover losses.
If you lost money on your PennyMac investment, you are encouraged to submit your information using the form on this page. You may also email adam@bfalaw.com or call 212.789.3619.
Why Is PennyMac being Investigated for Securities Fraud?
PennyMac is being investigated for violations of the federal securities laws following a significant stock drop. The decline in PennyMac’s stock price caused significant losses to investors.
PennyMac originates and services home mortgages, earning fees from both new loans and ongoing servicing. Recently, PennyMac increased its capacity to originate loans to better recapture mortgage refinance opportunities as interest rates declined. During the relevant period, PennyMac touted the success of its recapture efforts, representing to investors that its recapture rates were improving.
BFA is investigating whether PennyMac misrepresented its ability to recapture customers refinancing their mortgages as interest rates declined.
Why did PennyMac’s Stock Drop?
On January 29, 2026, after market hours, PennyMac reported disappointing 4Q 2025 financial results. During PennyMac’s earnings call held the same day, PennyMac senior management revealed that although PennyMac had increased its origination capacity to recapture more refinance business, many competitors had also added capacity, creating a highly competitive origination environment that constrained PennyMac’s ability to take advantage of refinance opportunities.
On this news, the price of PennyMac stock dropped over 37%, from $140.70 per share at the close of trading on January 29, 2026, to as low as $93.50 per share on January 30, 2026.
How Do I Submit My Information?
If you lost money when PennyMac securities dropped in price, you are encouraged to submit your information using the form on this page to speak with an attorney about your rights.
You can also contact:
Adam McCall
amccall@bfalaw.com
212.789.3619
All representation is on a contingency fee basis; there is no cost to you. Shareholders are not responsible for any court costs or expenses of any class action lawsuit. The firm will seek court approval for any potential fees and expenses.
Why Bleichmar Fonti & Auld LLP?
BFA is a leading international law firm representing plaintiffs in securities class actions and shareholder litigation. It has been named a top plaintiff law firm by Chambers USA, The Legal 500, and ISS SCAS.
BFA attorneys have been named “Elite Trial Lawyers” by the National Law Journal, among the top “500 Leading Plaintiff Financial Lawyers” by Lawdragon, “Titans of the Plaintiffs’ Bar” by Law360 and “SuperLawyers” by Thomson Reuters.
BFA’s notable successes include a recovery of over $900 million in value from Tesla, Inc.'s Board of Directors, as well as $420 million from Teva Pharmaceutical Ind. Ltd.
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