The company will invest $4.3 million into PennyMac Loan Services, LLC, its mortgage lending subsidiary, to establish a mortgage fulfillment production center in Cary.
Named a top three lender by Inside Mortgage Finance, PennyMac focuses on the production and servicing of mortgage loans and the management of investments related to the U.S. mortgage market.
The company’s new footprint will span 35,000 square feet of production, business technology, and IT support. PennyMac will begin accepting applications from mortgage professionals and anyone interested in joining the PennyMac team, on their website.
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.
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. ■