Hello, and welcome to the PennyMac Mortgage Investment Trust’s Second Quarter 2013 Earnings discussion. The slides that accompany this discussion are available from the 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 presentation. 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. I would like to begin my comments by reviewing the highlights of PMT’s strong financial performance in the second quarter. I would also discuss several new transactions that PMT has entered into since the end of the quarter that we think underscore our continued momentum. PMT earned $54.5 million of net income or $0.86 per diluted share in the second quarter. Net investment income was $129.7 million driven by strong earnings from both PMT’s business segments, investment activities and correspondent lending. The investment activities segment earned $38 million in pre-tax income driven a solid performance in our growing distressed whole loan portfolio including valuation gains from the loans moving towards resolution and improvements in home prices. Pretax earnings in the correspond lending segment were approximately $30 million, higher lock volume versus the first quarter and disciplined pricing and edging drove the strong financial results. Correspondent loan acquisition volume totaled over $8.6 billion in the second quarter and total lock volumes were $9.9 billion. Due to distressed whole loan investments during the second quarter totaled $397 million an unpaid principal balances which were largely non-performing loans. Additionally, in the second quarter PMT issued $250 million in exchangeable senior debt that matures in 7 years. The offering at an attractive term financing to PMT’s capital structure and provides capital for continued growth across our business and investment activities. Subsequent to the end of the second quarter PMT engaged in transactions for loans totaling nearly $1.4 billion in unpaid principal balances. PMT recently acquired $493 million in unpaid principle balance or UPB of non-performing whole loans. PMT also entered into an agreement to purchase another pool of non-performing loans totaling $502 million in UPB which is expected to settle later this month. In addition, PMT acquired $393 million in UPB…

Thank you, Stan. I like to begin my comments in slide 9 and review our recent investments in distress whole loans. Here we show, PMT’s acquisition volume over the last five quarters by unpaid principle balance or UPB, in addition to the acquisition thus far in the quarter. Assuming if they settle as planned, these transactions bring total distressed acquisitions for the year-to-date to just under $1.8 billion in UPB, nearly twice the $1 billion of distressed acquisitions in 2012. Thus far in 2013, we have seen a greater diversity of sellers in the market and several new entrants. One of the recent pool was sold by a bank, we have not transacted with previously. The recent purchases are mostly non-performing loans in geographically diverse pools and are generally similar to other pools PMT has acquired. Looking forward, we remain optimistic in our outlook for the distressed market and opportunities for additional acquisitions by PMT in the future. On slide 10, I would like to step back for a moment and discuss the value of the distressed whole loan portfolio, which as Stan noted earlier comprises most of PMT’s long-term investments today. We believe that PMT offers investors an effective way to gain exposure to an improving housing market in the U.S. and we also believe that there are significant embedded value in distressed portfolio which is illustrated well here in slide 10. The slide shows were PMT’s distressed loan portfolio was marked as of June 30, still between non-performing and reperforming loans in the distressed portfolio. The bars on the left in grey are the outstanding principal balance or face value of the loans. The green bars in the middle show the estimate of the current collateral value referred value of the properties underlying the loans. We use several…

Thank you, David. On slide 15, we show the pretax earnings contribution from each segment in the last several quarters. For the second quarter total pretax earnings amounted to $58 million of which 59% was from investment activity and 41% came from the correspondent lending segment. The takeaway is that both of these segments are meaningful contributors to PMT’s earnings. These results demonstrate the power of PMT’s approach of pursuing multiple opportunities across the residential mortgage market. As conditions in the market change, for example, with fluctuations in prevailing interest rates as we have seen so far this year, the relative earnings contribution from each strategy may differ but we believe that PMT’s multiple strategy approach should produce superior returns for shareholders over time. Now, let’s turn to slide 16, and look at the results for the investment activity segment. The investment activity segment revenues consist evaluation and pay off gains from performing and non-performing loans, interest income and servicing fees from PMT’s prime servicing portfolio. In the second quarter, the investment activity segments revenue totaled $73 million down 6% from the first quarter. The decline was primarily due to a decrease in evaluation gains on performing loans which I will discuss in further details in just a moment. Partially offsetting lower valuation gains with an 82% quarter-over-quarter increase in interest income from a growing portfolio of performing loans and 100% quarter-over-quarter increase in other income which is largely comprised of net servicing fee revenue. Expenses in this segment increased 20% quarter-over-quarter due to higher interest expense from PMT’s exchangeable senior note issued early in the second quarter and higher servicing cost on a growing portfolio of MSRs and distressed whole loans. Now, I would like to turn to slide 17 and dive a little deeper into the performance of…

Thank you, Anne. PMT is unique in its ability to be able to pursue a broad range of investment opportunities to the capabilities of our manager and servicing and fulfillment provider. We believe that the company is poised or continuing superior financial returns and many opportunities exit for PMT going forward as the mortgage market continues to evolve. Distressed whole loan investment remain a key focus for PMT and a very strong contributor to earnings. Thus far in 2013, we have been very successful in acquiring distressed loan pools and we think that the outlook for this opportunity is very good through at least 2014. We have achieved a prominent position in the correspondent lending business and are optimistic about its growth prospects over the long-term. As I said earlier, we expect margins to tighten and refinancing volumes to slow but we remain disciplined and we believe that we have initiatives in place that allow us to compete effectively as the market adjusts to higher rates. Furthermore, PMT benefits from the variable expense structure of its contract with PFSI which minimizes the operational risk in periods of defining volume. The non-agency jumbo program remains in its early days. The recent acquisition of the prime jumbo loan pool helps jump start our ability to begin PMT’s private label securitization activities and we may look to opportunistically invest in additional pools in the future. The GSE risk sharing transaction is a positive step forward as the market transition towards normalization and we anticipate additional investment in these types of risk sharing structures in the future. They are an attractive investment for PMT and further our partnership with the GSEs as they rose and the market continued to evolve. We continue to pursue the acquisition of MSR portfolios as co-investments with PFSI as they provide attractive investment opportunities for PMT. The issuance of the exchangeable senior bond introduces diversity in PMT’s capital structure and attractive financing. As PMT’s acquisitions continue, we expect to raise capitals so that we can continue to pursue accretive investments for PMT’s shareholders. In summary, we believe that PMT’s approach of multiple investment strategies across the residential mortgage market continues to produce superior returns and we are well-positioned to capitalize on these opportunities. Finally, we encourage investors with any questions to reach out to our Investor Relations group by email or phone. Thank you.

This concludes the PennyMac Mortgage Investment Trust’s Second Quarter Earnings Conference Call. For any questions please visit our Investor Relations website at www.pennymac-re.com or call our Investor Relations department at 818-224-7028. Thank you.