Good morning and welcome to the PennyMac Mortgage Investment Trust’s Fourth Quarter Earnings discussion. The slides that accompany this discussion are available from PennyMac Mortgage Investment Trust’s website at www.pennymac-reit.com. Before we begin, please take a few moments to read the disclaimer on slide two of the fourth quarter earnings report. Thank you. Now, I’d like to turn the discussion over to Stan Kurland PMT’s Chairman and Chief Executive Officer. Stan?

Thank you, Chris. PMT ended 2012 with record net income for the fourth quarter resulting from strong correspondent loan purchases in addition to the continued growth of PMT’s distressed whole loan investments. Both of the Company’s business segments, correspondent lending and investment activities, delivered strong pretax earnings in the fourth quarter, demonstrating the earnings power of PMT’s business model. Today, I’d like to talk to you about PMT’s fourth quarter and full-year 2012 results, and the revisions to our management and fee agreements with PMT’s manager PNMAC Capital Management or PCM and its fulfillment and servicing provider PennyMac Loan Services, PLS, which were announced this morning. Lastly, I’ll discuss key mortgage market drivers and their impact on PMT. Then I will turn it over to David Spector, PMT’s President and Chief Operating Officer to take you through our mortgage investment activities. And finally, Anne McCallion, PMT’s Chief Financial Officer, will discuss the quarter’s financial results in greater detail. Now let’s turn to page three and review PMT’s fourth quarter highlights. PMT delivered its most profitable quarterly results since the Company’s IPO in the summer of 2009. Net income totaled $49 million, a 22% increase from the third quarter, which equates to $0.83 per diluted share. Net income reached $125 million for the quarter, driven by solid results from both the investment activities and correspondent lending segment. Correspondent lending purchases totaled just over $10 billion in the fourth quarter, a 59% increase from the third quarter and a more than ten-fold increase from the fourth quarter of 2011. Our investment portfolio of distressed mortgage loans continued to grow, adding an additional $290 million in UPB of nonperforming whole loans during the quarter. Investments in distressed whole loans totaled $2.1 billion in UPB at year-end. Investments in mortgage servicing rights increased 95%…

Thank you, Stan. PMT’s mortgage investments delivered a solid fourth quarter. PMT continues to enjoy success in executing on its investment strategy, and sees significant opportunity to grow the correspondent businesses, the housing market continues to recover and the economy improves. Distressed whole loan investments remain a core opportunity and one that continues to evolve as the mortgage market moves closer to normalization. Let’s turn to slide 9, and look at the operational results of the correspondent lending business in the fourth quarter. Total correspondent loan acquisition volume reached $10 billion in the fourth quarter, up from $6.3 billion in the third quarter and $991 million in the year-ago period. Conventional and jumbo acquisition volumes reached $6.5 billion for the fourth quarter, a 75% quarter-over-quarter increase. Interest rate lock commitments reached $10.3 billion of which conventional and jumbo locks totaled $7 billion. The growth of conventional correspondent loan volume was a key driver of growth in the MSR asset quarter-over-quarter, as PMT retains the MSR in conventional loans when they are sold to Fannie Mae and Freddie Mac. Although margins on gains from mortgage loans acquired for sale benefitted from wider secondary spreads early in the fourth quarter, margins narrowed somewhat as the quarter progressed. However, for the quarter as a whole, margins were slightly higher from the prior quarter as a percentage of net gain on mortgage loans acquired for sale and locks. While margins remained elevated from a historical perspective during the fourth quarter, we’re expecting to begin normalizing in 2013, but there are many variables involved in determining what the new normal will be. We think that there is room to continue growing loan acquisition volumes by deepening relationships within the current correspondent seller network and also by expanding the overall number of seller relationships. As this…

Thank you, David. Turning to slide 14, you can see the growth trend in PMT’s mortgage assets, which have nearly doubled since last year, and are up 14% from the previous quarter. Most of this quarter’s growth was due to a 15% increase in our inventory of correspondent loans acquired for sale and a 9% increase in distressed whole loans. Additionally, our investment in mortgage servicing rights continues to grow in line with the growth of our conventional and jumbo correspondent purchase activity. The capitalized MSR asset nearly doubled from the third quarter, reaching $127 million at year end. On the right, we have the historical trend of pretax earnings and net income. Net income rose 22% quarter-over-quarter, reaching $49 million, which was driven by solid earnings growth in both of PMT’s business segments, Investment Activities and Correspondent Lending. Pretax earnings totaled $65 million in the fourth quarter, 63% of which was attributable to the correspondent lending segment and 37% was from the investment activities. On slide 15 we present the P&L for the investment activity segment. This segment’s investments include distressed whole loan mortgages and mortgage servicing rights. Total pretax earnings for the segment rose 13% quarter-over-quarter, largely as a result of strong net gain on investment income from PMT’s distressed whole loan investments. As David discussed earlier, distressed mortgage loan valuations benefitted from improved performance during the quarter. This included fair value accretion on a growing pool of distressed whole loan investments which continued to progress along their path toward resolution, as well as better home price performance during the quarter. Interest income declined 7% from the prior quarter as a result of lower capitalized interest on modifications and higher payoff activity in the portfolio which reduced interest income from performing loans. Other income fell $5.6 million, due…

Thank you, Anne. I’d like to finish today’s presentation by briefly reviewing the key takeaways from the quarter. PMT’s fourth quarter results demonstrate the strength of its business model and its ability to deliver attractive returns across a variety of investment opportunities. The stabilization in home values will have significant benefit for PMT’s portfolio of distressed mortgage loans and for the origination market as well. Industry forecasts are calling for continued improvement in home prices, which positively impacts the value of the loans in our distressed whole loan portfolio and increases the demand for home purchases as well. Correspondent lending is expecting to continue growing volume and is targeting $4 billion in loan purchase per month by the end of 2013. This will occur through increased penetration in certain key products, primarily jumbo mortgages, and also by growing the network of approved sellers and continuing to deliver best-in-class customer service and efficiency. Distressed whole loan investments are also expected to increase, and they remain a key investment strategy. We see new participants entering the market looking to sell legacy assets in order to clean up their balance sheets and free up capital. As a result, it is likely that this market remains strong for both non-performing and re-performing whole loans though 2013 and perhaps longer. Lastly, the re-emergence of the non-agency securitization market is an opportunity that is particularly meaningful for PMT. This includes revenue opportunities in structuring, sales, investments and servicing of non-agency deals and we expect that market will see strong growth in 2013, and make significant strides towards normalization. PMT, in conjunction with PCM and PLS is in an excellent position to capitalize on these opportunities and we remain optimistic regarding the U.S. residential mortgage market and our ability to grow as it evolves. Thank you.

This concludes the PennyMac Mortgage Investment Trust’s fourth 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.