“Having worked closely with the Cenlar team, we have reached an agreement that represents a compelling value proposition for our shareholders, Cenlar’s institutional clients and their client borrowers, and the many talented professionals joining Pennymac.”
Spector said that when the acquisition is completed, Pennymac will be the second largest in the US and one of the largest employers in the US.
“Leveraging SSE’s industry-leading technology, this further strengthens Pennymac’s position as the partner of choice to provide institutional services and is expected to drive the growth of the finance-light, fee-based revenue stream at scale,” said Spector. “We operate the most advanced and efficient platform. Through this transaction, we expect to gain powerful synergies that further strengthen our position as the most technologically advanced market operator.”
The transaction is expected to close in the second half of 2026, subject to customary closing conditions, including required regulatory approvals.
“Our team at Cenlar is dedicated to building the nation’s leading services organization, based on a deep commitment to our customers,” said David Schneider, president and CEO at Cenlar. “By combining Cenlar’s market-leading technology with a top lender and operator like Pennymac, we are creating the strongest platform in the industry.
“I am extremely proud of what the Cenlar team has achieved and look forward to this next chapter as we together bring excellence, expertise and care to the millions of homeowners we serve.”
In conjunction with the closing, Cenlar will surrender its banking charter. Pennymac will acquire Cenlar’s operating business as a non-bank entity specializing in loan servicing. It will literally replace nearly 100 of the institution’s customers while delivering improved levels of customer service to borrowers.
Santander US Capital Markets LLC works as a special financial advisor to Pennymac and Goodwin Procter LLP acts as its legal advisor.
Houlihan Lokey Capital Inc. he works as a financial advisor to Cenlar as well Sullivan & Cromwell LLP acts as its legal advisor.
Kevin Ryan, Pennymac’s chief strategy officer, in an exclusive interview with him HousingWire that the deal had been in effect for the past nine months and was “in line with the company’s strategic plan.”
“We said we want to grow in the business of providing services. And there are several reasons for that,” said Ryan. “It’s a fee, which will diversify our revenue streams and is less capital intensive than other businesses that we’re in. … We feel like we’ve made great progress in being an employee, treating customers the right way, building the best technology in service delivery. So, wouldn’t it be great if we could increase revenue but put that service technology in the hands of more clients?”
Ryan said Cenlar’s sophisticated, institutional customer base is attractive to the company and the value the deal will bring to its shareholders.
“This is actually the first M&A deal in Pennymac’s history, so we wanted it to be meaningful and cost-effective for our strategic objective,” he said.
Ryan also confirmed that Pennymac will join Cenlar’s workforce as soon as the deal closes in the second half of this year, and will set up separate Pennymac branches in Cenlar’s current locations.
“They will be Pennymac employees and run our service business, because our service business is about to grow materially,” he said.
“I think the industry leaders going forward are going to have great positions and be able to work well, and we feel like we’re in a good position to be there. My sense is that the industry will continue to bring together those who can bring strong technology and ethics and work flow to these clients.”
Shakeup service
Cenlar was the second largest player in the US at the end of September, with a book of $745 billion, according to Inside Mortgage Finance (IMF). Pennymac said Cenlar posted $459 million in revenue by 2025.
At the time, Pennymac did not have a significant presence in the sector, ranking as the 23rd largest US sub-prime, IMF data shows. But Pennymac reported an operating portfolio of $697.7 billion by the end of 2025, up nearly 5% year-over-year and good for No. 4 nationally.
The service and supply attracted attention and was renewed in March 2025 there Rocket companies announced a $9.4 billion deal to be acquired Mr Cooper Groupthe largest worker in the country.
Since then, the rivals have been rearranging their positions. United Wholesale Mortgage (UWM) has already chosen to remove its portfolio from Mr. Cooper. But part of it remains with Cenlar. UWM said the loans currently used by Cenlar will roll over at the end of 2026, except for those that UWM chose not to retain, according to its third quarter 2025 call.
Following the announcement of the Pennymac acquisition, a UWM spokesperson released a statement to HousingWire in which they spoke in partnership with. Biltlaunched last year after UWM’s initiative to bring services to homes.
“We have already started borrowing new money from UWM and lending money from our subordinates and we are preparing to buy TWO ports/The Roundpoint. Cenlar’s acquisition of PennyMac has no impact on UWM, our customers or borrowers,” the statement read.
Another big move in the space was Bayview Asset ManagementThe purchase of Guild Mortgage.
HousingWire reported in May 2025 that Cenlar was “in talks to sell,” but the company dismissed the claims as rumors. The following month, the company announced plans to close its facility in O’Fallon, Missouri, resulting in 93 layoffs.
Flávia Furlan Nunes contributed to the reporting of this story.
