PennyMac Financial Services Inc. (PFSI) stock witnessed a significant plummet of 8.65% on Friday, January 31st, 2025, during the pre-market session. This sharp decline can be attributed to concerns raised during the company's Q4 2024 earnings call regarding rising delinquencies in its mortgage servicing portfolio and a cautious outlook for the mortgage market in 2025.

During the earnings call, PennyMac executives acknowledged an acceleration in the year-over-year increase in 60-plus day delinquency rates within their servicing portfolio. While specific figures were not provided, analysts raised concerns about the potential impact of higher delinquencies on the company's future performance and profitability.

Furthermore, the management team provided a cautious outlook for the mortgage origination market in 2025, expecting total originations to average around $2 trillion, reflecting a moderate growth from the previous year. However, they acknowledged the potential for ongoing volatility in mortgage rates, which could present opportunities as well as challenges for the company's production segment.