Good morning and welcome to PennyMac Mortgage Investment Trust Second Quarter Earnings Conference Call. Before we begin, please take a moment to familiarize yourself with the forward-looking disclaimer on slide 2. Thank you. I’d now like to turn it over to Stan Kurland, PMT’s Chairman and Chief Executive Officer. Stan?

Thank you, Chris. The second quarter results demonstrated a significant earnings power of PMT and its potential for future growth. Both of the company’s business segments, Correspondent Lending and Investment Activity delivered strong results in the second quarter leveraging solid operational execution of our manager PNMAC Capital Management and fulfillment and servicing provider PennyMac loan services to drive double-digit pre-tax earnings growth. The Company successfully raised $201 million in new equity capital immediately deploying the proceeds in accretive investments. PMT’s business model in relationship with PLS and PCM combined the expertise in infrastructure that enables the Company to pursue the many opportunities present in today’s mortgage market. Today I’d like to talk to you about our second quarter results. The self emerging market trend and touch on PMT’s position in the current competitive landscape. Then I will turn it over to Anne McCallion, PMT’s CFO, to discuss the quarterly financials in greater detail. Then, David Spector, PMT’s President and Chief Operating Officer, will take you through our investment activities and discuss how our business portfolio performed during the quarter. And finally I will ask Doug Jones, the Head of Correspondent Lending crew, to discuss the quarterly results for Correspondent as well as our future growth strategies for that business. Before we get into details, let’s review PMT’s second quarter highlights. Net income was $29.6 million in the second quarter, up 55% from the first quarter on revenues with $64.4 million. Diluted earnings per share reach an all time high at $0.79, a 22% increase from the first quarter. Return on equity was 17% for the quarter. We believe this is particularly notable considering that we raised over $200 million in new equity in the quarter, roughly a third of our market capitalization at that time demonstrating our ability to quickly…

Thank you, Stan. Turning to slide 8, we’ll take a deeper look at the composition of PMT’s second quarter earnings. PMT recorded net income of $29.6 million or $0.79 per diluted share on net investment income of $64.4 million. Net income increased 55% from the first quarter of 2012, driven by some results from PMT’s two operating segments, investment Activity and Correspondent Lending, which delivered pre-tax income growth of 82% and 17% respectively from the first quarter. Net income investments in the second quarter doubled from the prior period and the net income on mortgage loans acquired for sale rose 35% quarter-over-quarter. This strong performance was due to continued strong liquidation activity and net improvements in the home price performance in PMT’s distressed loan investments portfolio, in addition to significantly higher mortgage loans and purchase volumes in PMT’s Correspondent Lending segment. Negative net servicing fees of $855,000 resulted from a $1.9 million valuation charge on our MSRs due to higher prepayment expectations from a decline in mortgage rates throughout the quarter. Interest income fell 3% compared to the first quarter of 2012, mostly due to decline in distressed loan modification activity. If modifications of nonperforming loans are completed, capitalized interest is recognized. Since the second quarter had fewer modification, the interest recognized in the period declined. Incentives in the second quarter increased primarily as a result of increased correspondent lending activity and higher liquidation and mass litigation activity. PMT encourage volume and activity based expenses for the services performed on it behalf by its manager and servicing and fulfillment providers, PCM and PLS. The provision for income tax expense rose reflecting the solid growth of the Correspondent business. However, the effective tax rate for the quarter was unchanged with 22%. The company’s correspondent activities are conducted in PMT’s taxable REIT…

Thank you, Anne. During the second quarter PCM reviewed approximately $2.5 billion in unpaid principal balance of distressed whole loans. Overall, the flow is strong and steady throughout the quarter with multiple sellers putting pools up for sale. We expect this flow to continue to be strong for at least the next 12 months and it is probable that we see it going beyond the 12-month horizon. As we look forward over the next year, we see a pipeline of approximately $15 billion to $20 billion in distressed whole loans and have already been identified by market participants is likely to comp for sale. This estimations includes both non-performing and re-performing pools. We are currently seeing a steady flow of $1 billion to $2 billion of whole loan pools coming to market each month from problematic sellers and expect new sellers to enter the market incrementally over the next year. Current whole loan pricing reflects the strong demand in the market place and increased optimism surrounding the stabilization of housing prices. Sellers have reentered the market on a more consistent basis since the Attorneys General foreclosure settlement in the first quarter. At present there is a strong demand for whole loans which is being met by healthy supply from sellers. Let’s now turn to slide 16 to take a look at PMT’s acquisitions during the second quarter. PMT completed acquisitions of distressed whole loans totaling $402 million in UPB in the second quarter. Approximately 44% of our acquisitions were re-performing whole loans. These are loans that were previously modified and have been current for some period of time. Strategically these loans provide PMT with the cash flowing asset with the potential for greater upside to refinancing or securitization. The potential for some of these loans to refinance into the FHAs…

Thanks, David. The Correspondent landscape is going through a transformation as most of the big banks who have been the market leaders in the channel for many years are exiting on materially reducing their volumes. This market change is primarily due to pending implementation of hassle free capital requirements, operational complexities, and (indiscernible). Many of those banks have shifted their focus to the retail channels; this has created an opportunity for non-bank financial intermediary such as PMT to fill the result in volume. We're taking a differentiated approach to this opportunity and being very selective in our business partner approval. Our client focus model drives a neutrally beneficial and meaningful relationship with each of our correspondent customers. We believe that most of our customer base will continue to take market share and increase our opportunity to grow within the selected customer base. In response to increasing demand from business partners on the east coast PLS which serves as PMT’s fulfillment provider and servicer and the entity where a correspondent operation [reside] has opened an operations facility in Tampa, Florida. This facility will house for government personal and allow us to provide a more efficient level of service to our eastern and central time zone customers and thus expand our footprint with these new customers. The correspondent money group has delivered outstanding results to-date, and that trend continued in the second quarter. Loan purchased volumes during the quarter eclipsed $3.4 billion with conventional purchases comprising $1.8 billion of that amount. Our Jumbo production continues to be minimal. However, we have the full capabilities in place to purchase significant volumes of the Jumbo loans as market demand returns. Our business partners continued to grow with over 117 customers across the country and it continued to build operations with employee talent of over…

Thanks, Doug. I like to briefly review the key takeaways from the quarter. PMT’s second quarter results demonstrate the strength of its business model and strategy as well as the solid operational execution of both PCM and PLS. Both of our business segments delivered record pre-tax earnings as they continue to grow their asset bases. Our correspondent business continues to increase purchase volume and the servicing portfolio as it builds its business partner relationships. As that segment moves ahead, the continued and growing relationships with our business partners will help to ensure steady and reliable growth. Our investment activities continue to deliver solid returns with both their liquidation activities as well as their modification activities. We continue to remain opportunistic in this market for new pools. And as David described earlier, we see a healthy pipeline of $15 billion to $20 billion of UPB coming to the market over the next 12 months. As we look ahead, there are significant opportunities in the market. In fact, we’re seeing more opportunities today than we have at any time over the past three years. We believe that we’re in the midst of a unique window of opportunity for the mortgage market and believe that PMT is well positioned to capitalize on those opportunities. Thank you.

This concludes the PennyMac Mortgage Investment Trust Second Quarter Earnings Conference Call. For any questions please visit our Investor Relations website at www.PennyMac-REIT.com. or contact our Investor Relations Department at 818-224-7028. Thank you.