Good morning and welcome to the third quarter 2013 earnings discussion for PennyMac Mortgage Investment Trust. The slides that accompany this discussion are available from the PennyMac Mortgage Investment Trust 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.

Thank you Chris. I would like to begin my comments by reviewing the highlights of PMT’s third quarter performance. I would also like to discuss several new transactions that PMT entered into since the end of the quarter that we think underscore the attractive investment opportunities available to PMT and the significant acquisitions it has been able to successfully pursue. PMT earned $39.7 million in net income, or $0.57 per diluted share, in the third quarter. Net investment income was $86.1 million, driven by strong earnings from PMT’s Investment Activities segment. The Investment Activities segment earned $36.4 million in pretax income driven by solid performance of our growing portfolio of distressed whole loans, including valuation gains as a result of loans moving towards resolution and improvements in home prices. The Correspondent Lending segment had a small pretax loss of $293,000. The loss is the result of a significant contraction in the mortgage market that resulted in lower lock volumes and tighter margins. In August, PMT issued $250 million in new equity capital to pursue additional investment opportunities. While the higher share count had a dilutive impact on earnings per share and return on equity in the third quarter, we are deploying this capital into accretive long-term investment opportunities. During the third quarter, PMT deployed over $350 million in equity capital into a variety of investments. We acquired two non-performing whole loan pools totaling $930 million in unpaid principal balance; completed PMT’s first jumbo securitization, retaining $366 million of senior, subordinate and I/O securities; acquired PMT’s initial investment in excess servicing spread on mortgage servicing rights acquired by PennyMac Financial; and organically grew our investments in mortgage servicing rights by $43 million. Finally, Correspondent loan acquisition volumes totaled just over $7.7 billion, down 11% from the second quarter and total lock…

Thank you Stan. I would like to begin my comments on slide 11, and review our recent investments in distressed whole loans. Here, we show PMT’s acquisition volume over the last five quarters by unpaid principal balance, in addition to the acquisitions thus far in the fourth quarter. Subsequent to the end of the quarter we entered into an agreement to purchase an additional $563 million in non-performing loans. This pool is geographically diverse and is generally similar to other pools PMT has acquired recently. Assuming that the loans settle as planned, these transactions will bring total distressed acquisitions for the year to-date to just over $2.25 billion in unpaid principal balance, over twice the $1 billion of distressed acquisitions in 2012. We continue to see an ongoing flow of portfolios in the market. Looking forward, we remain optimistic in our outlook for the distressed market and opportunities for additional acquisitions by PMT in the future. Now let’s go to slide 12 and turn to the correspondent lending business. Correspondent loan acquisitions totaled $7.7 billion in the third quarter. Conventional and jumbo loan acquisitions were $3.7 billion, or 48% of that volume. Correspondent lock volume for the quarter was $6.7 billion. Conventional and Jumbo locks were $2.9 billion, or 44% of total lock volume. In October, loan acquisitions and lock volumes both totaled $2.1 billion. Higher mortgage rates have slowed refinance activity, as Stan discussed, and industry forecasts predict lower mortgage origination volumes for the remainder of this year. Recently we have seen a drop in interest rates and margin pressures decrease. However it is difficult to know how sustainable recent trends are, but we believe that PMT is well positioned to grow as the market adjusts to higher rates. We are focused on several initiatives in correspondent lending to…

Thank you, David. On slide 16 we show the pre-tax earnings contribution from each segment in the last several quarters. For the third quarter, pretax earnings totaled $36 million, all of which came from Investment Activities. The third quarter origination market contraction was significant. We transitioned from a period of near-historic low interest rates to much higher rates in a relatively short period of time. Inflection points such as the third quarter can create timing mismatches and distort financial performance in certain cases. What is important for investors to keep in mind is the significant success PMT had this quarter deploying capital into several accretive investments that should drive earnings and dividend growth in future periods. Now let’s turn to slide 17 and look at the results for the Investment Activities segment. This segment’s revenues consist of valuation and payoff gains and interest income from performing and non-performing loans, servicing fees from PMT’s prime servicing portfolio and interest income from retained interests and Agency MBS. In the second quarter, the Investment Activities segment’s revenue totaled $67.1 million, up 4% from the second quarter. The increase was primarily due to strong valuation gains on non-performing loans, and higher net interest income from capitalized interest on modifications, which increased by $6.6 million from the second quarter, and higher average earning assets from a growing portfolio of reperforming loans. Expenses in the segment increased 24% quarter-over-quarter due primarily to increased servicing expense from growth in PMT’s investments in MSRs created by its correspondent lending activities and distressed whole loan acquisitions, and expenses from the securitization. Now I’d like to turn to slide 18 and dive a little deeper into the performance of the distressed whole loan portfolio in the third quarter. Total gains on mortgage loans were $48 million, which included $41.9 million…

Thank you, Anne. The outlook for PMT remains strong. Our investments in excess servicing spread, in partnership with PennyMac Financial represents an attractive new strategy for PMT. The pipeline of distressed whole loan investments remains robust, and we expect to continue seeing significant opportunities for new investments through 2014. In correspondent lending we expect to resume increasing acquisition volumes as the origination market stabilizes. In summary, I believe PMT is well positioned to continue growing its investments and delivering shareholder value. 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 third quarter earnings discussion. For any questions, please visit our website at www.pennymac-reit.com, or call our investor relations department at 818-224-7028. Thank you.