In the first Voice of the Industry, David Spector, Chairman and CEO of Pennymac, discussed his path from early beginnings on Wall Street to ultimately co-founding Pennymac. He focused on Industry unity, responsible growth, reduced origination costs, and the development of the next generation of mortgage professionals amid a rapidly evolving market and economic landscape. Read on for the second installment.
David Spector is the Chairman and Chief Executive Officer of Pennymac, one of the largest and most respected lenders and servicers in the country. Under his leadership, Pennymac has helped over 5 million Americans achieve and sustain homeownership, and it continues to set the standard in scale, innovation, and operational excellence. He became CEO in 2017 and Chairman in 2021, overseeing strategy for both PennyMac Financial Services Inc. and PennyMac Mortgage Investment Trust.
Feedback on the First Installment
A large part of my first column centered on the legacy of Dave Stevens, and his provocative yet influential role in the mortgage industry. While I received a great deal of positive feedback from readers, I also heard from some who questioned the emphasis I placed on him. I appreciate that dialogue. It’s a testament to the passion and diversity of thought within our industry.
To those saying that Dave wasn't universally loved within the industry, you're absolutely right. And, in truth, Dave would be the first to acknowledge that. He was never interested in being universally liked. He was interested in pushing the industry forward. He was provocative, yes, but often for good reason. He had a knack for challenging the status quo and shaking the industry out of complacency when it mattered most.
Over time, Dave’s style evolved. Early in his career, particularly during his days at Freddie Mac, he was bold, outspoken, and, frankly, a little wild. I knew him then, and I can personally attest to how quickly he could get under someone’s skin, including mine. But growth is a crucial part of leadership, and to his credit, Dave matured into a more strategic, thoughtful voice over the years. His approach became more measured, but he never lost his edge or his deep commitment to the industry's long-term health.
One of Dave’s most underappreciated contributions came during the 2008 financial
crisis. At a time when the mortgage industry was under fire and confidence in the financial system was shaken, Dave was in the room, literally, with the Bush and Obama administrations. He helped key policymakers understand how mortgage banking and the capital markets functioned. It was a critical moment when misunderstanding or misrepresentation could have led to disastrous decisions. Dave's presence and advocacy helped steady the ship. His insights ensured that those crafting policy did so with a better grasp of the industry's inner workings. In many ways, that moment helped preserve the viability of mortgage lending in the years that followed.
So yes, Dave Stevens could be divisive. But he also represented a brand of leadership that didn’t shy away from hard conversations or uncomfortable truths. He forced the industry to confront its weaknesses while advocating fiercely for its strengths. That kind of legacy deserves thoughtful recognition, even if it sparks debate.
Political Arena Today
In contrast to prior administrations, the current presidential leadership is partly characterized by its demand for public recognition and affirmation of its efforts. While some may view this posture as performative or overly focused on optics, the reality is that this administration has managed to push through a significant volume of initiatives in a relatively short amount of time. For those watching closely, it has been something of a civics lesson, demonstrating that, despite deep political divides, government can still function with purpose and efficiency when the right levers are pulled. The pace and scope of legislative and regulatory activity reflect a seriousness about governing that, regardless of political affiliation, is hard to ignore.
Importantly, this administration appears to be more willing than its predecessors to listen to industry stakeholders, including those in the mortgage and housing sectors. In an environment often dominated by headlines and media-driven narratives, the behind-the-scenes reality is that policymakers are engaging more frequently and substantively with private sector leaders. That receptiveness has allowed for more balanced conversations around the practical impacts of regulation, innovation, and capital markets. While public discourse may paint a more combative or chaotic picture, the administration has shown a level of measured pragmatism once actual policy is on the table.
For the mortgage industry, this approach has been a net positive. Regulatory clarity,
willingness to engage with feedback, and an openness to modernization all contribute to a more stable operating environment. Agencies and oversight bodies seem aligned on the need to support innovation, manage risk thoughtfully, and ensure that the capital markets remain vibrant. The administration’s broader economic priorities (including housing affordability, access to credit, and responsible oversight) align closely with what many in the industry have long advocated for. Ultimately, while political opinions will vary, the functional impact of this administration’s work has been felt, and in many ways, appreciated by those navigating the complexities of the mortgage landscape.
Where MBA Could Be Stronger
The Mortgage Bankers Association (MBA) sits at the center of one of the most complex, highly regulated industries in the country. But in trying to be everything to everyone, it risks being truly impactful to no one. The reality is this: the MBA serves too many masters. In its effort to appease a wide and often conflicting array of stakeholders (large and small lenders, vendors, non-bank entities, and more), it has diluted its ability to lead with conviction on the issues that matter most to mortgage bankers actually driving the industry forward.
What’s needed now is a sharper focus that reflects the composition and priorities of modern mortgage banking.
Innovation From the Industry
Despite the size and scale of Pennymac, there are days it feels like we’re running a tech startup. That’s not just a mindset, it’s a necessity. In mortgage banking, leaders embrace innovation. This industry isn’t static. Borrower expectations, capital markets, regulations, and technology are constantly evolving. To compete, you must make decisions quickly, test ideas, learn fast, and adjust. In fact, one of the most dangerous things a mortgage company can do today is stand still while pretending to move. Innovation without execution is just expensive noise. But when done with intent and clarity, it has the power to radically lower costs, improve borrower experience, and rewire outdated processes across the industry.
At Pennymac, we’re leaning into our privileged position to innovate. We’ve adopted Vesta as our loan origination platform, configured it to our exact needs, and built a legacy-free servicing system from the ground up. Also, we're shaping what the future of mortgage could look like: a faster, smarter, more transparent process that lowers costs without compromising risk. The future isn’t about gimmicks, it’s about substance. It’s about bringing underwriting forward in the borrower journey, giving borrowers clarity before they fall in love with a home, and using data intelligently to match consumers with real offers, not a phone call maze. But to get there, we need the whole industry aligned. The GSEs, in particular, have a critical role to play. With the data they sit on, their potential to lead in AI, pricing intelligence, and risk modeling is massive, but only if they act. Because whether we like it or not, innovation delayed is innovation denied. The next chapter of this industry will be written by those bold enough to build it, and we plan to be among them.
Non-QM: Evolution and Opportunity in the Mortgage Landscape
When discussing non-qualified mortgages (non-QM), I see this not as a radical innovation, but rather as a natural evolution: an expansion of the product box that responds to shifting borrower profiles and market needs. Non-QM is not about reinventing the wheel; it’s about refining the wheel to better serve a broader spectrum of borrowers, especially those who don’t fit neatly into traditional Fannie Mae or Freddie Mac guidelines. It’s a critical tool in our arsenal to fill gaps in the market, offering options to self-employed individuals, investors, and others whose income documentation or credit profiles may not align with conventional underwriting. This evolution reflects the industry’s growing recognition that a one-size-fits-all approach no longer works if we want to reach more homeowners and sustain growth.
Capital markets, as always, are chasing yield, and mortgage investors are no exception. The demand for diverse mortgage products remains strong, and non-QM is increasingly recognized as a valuable piece of that puzzle. The time has come where non-QM has shed its old stigma and taken its rightful place in the ecosystem. Early on, non-QM was unfairly labeled as subprime, which did a disservice to the quality and utility of these products. Today, leading players, whether Pennymac, or others, are bringing credibility and scale to non-QM offerings. This not only benefits borrowers who previously faced limited options but also strengthens the mortgage market by broadening investor appetite and diversifying risk.
For Pennymac, non-QM represents more than just another product; it’s a strategic tool. It’s primarily a purchase money product for borrowers who may not qualify for traditional conforming loans but are creditworthy and seeking homeownership. By integrating non-QM thoughtfully into our portfolio, we’re providing correspondents with solutions their customers need and expect. The broader ecosystem benefits when non-QM is embraced with rigor, transparency, and responsible underwriting. This is the moment for the mortgage industry to evolve its product offerings. To expand the boundaries while maintaining discipline. The future will reward those who view non-QM not as a niche alternative, but as an essential evolution of mortgage finance.
In Conclusion
It is time for mortgage industry leadership that embraces innovation, clarity, and purposeful action amid complexity. From honoring those who challenge the status quo, to navigating today’s political and regulatory landscape where meaningful engagement and pragmatism are reshaping policy, the industry stands at a pivotal crossroads. Companies like Pennymac demonstrate that innovation, whether through advanced technology platforms or strategic products like non-QM, is essential not only for growth but for meeting the diverse needs of today’s borrowers. As the market evolves, success will belong to those willing to lead decisively, innovate thoughtfully, and expand access responsibly, ensuring that mortgage finance remains both resilient and inclusive for the future.