PennyMac Financial Services, Inc. will invest $4.3 million into PennyMac Loan Services, its mortgage lending subsidiary, to establish a mortgage fulfillment production center in Wake County, North Carolina. The company plans to create 300 jobs in Cary, North Carolina.
This latest expansion will support the mortgage fulfillment functions of the company’s direct lending operations, which includes loan processing, underwriting, closing and funding. The company’s new footprint will span 35,000 square feet of production, business technology, and IT support.
“What initially attracted PennyMac to this region was the diversity and talent that the city has to offer,” said Doug Jones, President of PennyMac. “We look forward to establishing a workforce in North Carolina that broadens our national footprint, brings new jobs to the community, and helps us reach our goal of becoming the industry’s best in customer service.”
The North Carolina Department of Commerce led the state’s efforts to support PennyMac’s decision to locate to North Carolina. The company is offering an array of new jobs including brokers, consumer experts, customer contact staff, IT, underwriters, and managerial staff. The average annual salary for all new positions is $64,567 creating a potential payroll impact of more than $20.7 million per year. Wake County’s overall average annual wage is $63,966.
“North Carolina’s longtime leadership in financial services and reliable pipeline of tech-savvy talent make us the ideal fit for companies like PennyMac Financial,” said Commerce Secretary Anthony M. Copeland. “We welcome this growing mortgage lender to our state and look forward to supporting its long-range success.”
PennyMac’s expansion will be facilitated, in part, by a Job Development Investment Grant (JDIG) approved by the state’s Economic Investment Committee earlier today. Over the course of the 12-year term of the grant, the project is estimated to grow the state’s economy by more than $813 million. Using a formula that takes into account the new tax revenues generated by the 322 new jobs, the JDIG agreement authorizes the potential reimbursement to the company of up to $1,914,750 spread over 12 years. Payments for all JDIGs only occur following performance verification by the departments of Commerce and Revenue that the company has met its incremental job creation and investment targets. JDIG projects result in positive net tax revenue to the state treasury, even after taking into consideration the grant’s reimbursement payments to a given company.
Because PennyMac is locating to Wake County, classified by the state’s economic tier system as Tier 3, the company’s JDIG agreement also calls for moving as much as $638,250 into the state’s Industrial Development Fund – Utility Account. The Utility Account helps rural communities finance necessary infrastructure upgrades to attract future business. Even when new jobs are created in a Tier 3 county such as Wake, the new tax revenue generated through JDIG grants helps more economically challenged communities elsewhere in the state.
“We are excited to welcome PennyMac Financial Services, Inc. into our community and corporate family in Cary, and look forward to assisting them as they make their transition,” said Mark Lawson, Vice President of Economic Development for the Cary Chamber of Commerce. “We are pleased that PennyMac recognized the benefits of our community, bringing an expansion that is certainly a testament to the talent in our market, aligned with our state’s low tax structure and the high quality of life the citizens of Cary experience every day. We are greatly appreciative of their commitment and investment.”
In addition to the N.C. Department of Commerce and the Economic Development Partnership of North Carolina, other key partners in the project include the North Carolina General Assembly, North Carolina Community College System, Capital Area Workforce Development Board, Cary Chamber of Commerce, Cary Economic Development, and Wake County Economic Development, a program of the Raleigh Chamber.