Good afternoon, and welcome to the First Quarter 2023 earnings discussion for PennyMac Financial Services, Inc. The slides that accompany this discussion are available on PennyMac Financial's website at pfsi.pennymac.com. Before we begin, let me remind you that our discussion contains forward-looking statements that are subject to risks identified on Slide 2 that could cause our actual results to differ materially as well as non-GAAP measures that have been reconciled to their GAAP equivalent in our earnings presentation. Now I'd like to begin by introducing David Spector, PennyMac Financial's Chairman and Chief Executive Officer, who will review the company's first quarter 2023 results.

In one of the most challenging mortgage origination markets in recent history, PennyMac Financial delivered solid net income and continues to distinguish itself as a best-in-class mortgage company. Annualized return on equity for the quarter was 4%, with net income of $30 million or $0.57 in earnings per share. We remained active in stock buybacks during the quarter, repurchasing $45 million in common stock. Although repurchase levels were down from prior quarters, we prefer to maintain flexibility to address potential risks and opportunities as the market environment continues to evolve. Dan Perotti, PFSI's Senior Managing Director and Chief Financial Officer, will provide greater details surrounding the drivers of our financial results later on in this discussion. PFSI's balanced business model continues to perform well on an operational basis, with strength in Servicing profitability offsetting the loss in Production income. Total Production volumes in the first quarter, including acquisitions made by PMT, were $22.8 billion in unpaid principal balance, essentially unchanged from the prior quarter. With prepayment speeds at multiyear lows, these volumes continue to drive the organic growth of our Servicing portfolio, which ended the quarter at nearly $565 billion in UPB. In PFSI's Investment Management segment, PMT had a strong quarter with earnings in excess of the dividend level, which drove an increase in its book value per share. With mortgage interest rates currently still above 6%, the most recent third-party forecast for 2023 originations range from $1.6 trillion to $1.8 trillion, down meaningfully from 2022. While many industry participants have taken the appropriate steps to reduce capacity, the pace of this reduction has been slow, and we believe overcapacity still remains. That said, average quarterly origination forecast for the remainder of 2023 are meaningfully higher than the industry's estimated origination volumes in the first quarter, consistent with our…

Thanks, David. PFSI reported net income of $30 million in the first quarter or $0.57 in earnings per share for an annualized return on equity of 4%. Strong operating profitability in our Servicing segment was partially offset by increased losses in our Production segment and net fair value declines on MSRs and hedges primarily due to elevated hedge costs. PFSI's Board of Directors also declared a first quarter cash dividend of $0.20 per share. As David mentioned, we continued repurchasing stock. And in the first quarter, we bought back nearly 800,000 shares for $45 million at an average price of $59.01 per share. Through April 25, we bought back nearly 200,000 shares for $11 million at an average price of $61.26 per share. Book value per share was down slightly from the prior quarter end, primarily due to the annual issuance of additional common stock related to our equity compensation awards program. PFSI reports financial results through 3 segments: Production, Servicing and Investment Management. In the first quarter, the Production segment reported a pretax loss of $20 million, the Servicing segment reported a pretax income of $57 million and the Investment Management segment reported pretax income of $300,000. Overall Production, including volumes acquired by PMT, was solid in the first quarter, down only 1% from the prior quarter, while industry volumes are estimated to be down approximately 17%. PennyMac widened its leadership position in correspondent lending as our strong capital position and consistent commitment to the channel provide our partners with the stability and support they need to successfully navigate the challenging mortgage market. We estimate that over the past 12 months, we represented approximately 17% of the channel overall, and we believe our market share has been meaningfully higher in more recent periods as correspondent sellers seek high-quality partners…

Thank you, Dan. As you can see, I'm very excited for PennyMac Financial's future. Our Servicing portfolio continues to grow, and our competitive position within the correspondent and broker direct lending channels has never been better. We are increasingly seeing new correspondents and brokers turn their attention to PennyMac and its best-in-class mortgage platform as a trusted and innovative business partner. For these reasons, I am confident in PennyMac Financial's ability to continue profitably executing against our strategic plans while also continuing to grow as a respected leader in the mortgage industry. We encourage investors with any questions to contact our Investor Relations team by e-mail or phone. Thank you.

This concludes PennyMac Financial Services, Inc.'s first quarter earnings discussion. For any questions, please visit our website at pfsi.pennymac.com or call our Investor Relations department at (818) 264-4907. Thank you.