PennyMac Financial Services Inc. announced Wednesday afternoon that it’s acquiring Cenlar Capital Corp., the country’s second-largest mortgage subservicer. The all-cash transaction includes an upfront purchase price of $172.5 million and up to $85 million of contingent consideration payable over three years.

It’s the first mergers-and-acquisitions (M&A) deal in the history of Pennymac. Cenlar’s subservicing business primarily consists of subservicing contracts and mortgage servicing operations.

Based on Cenlar’s current portfolio, Pennymac is expected to add up to $740 billion in unpaid principal balance (UPB) of mortgage subservicing and 2 million loans to its portfolio. The expansion will bring details ⇒

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