The Stable Rating Outlook reflects Fitch's expectation that PFSI will continue to generate consistent operating cash flow and maintain sufficient liquidity and reserves for potential margin calls and indemnification activity, leverage at-or-below current levels, and adequate cash coverage of interest expenses. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade Negative rating action could be driven by sustained profitability challenges that erode tangible equity and the firm's market position; Gross leverage sustained above 5.0x and corporate leverage sustained above 1.5x; Decrease in aggregate liquidity resources that constrain the company's funding flexibility; and or increased utilization of secured funding that reduces the unsecured funding mix below 10%. Regulatory scrutiny resulting in PFSI incurring substantial fines that negatively impact its franchise or operating performance, could also drive negative rating momentum.