Net Gain on Mortgage Loans Acquired for Sale

12 Months Ended

Dec. 31, 2016

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Net Gain on Mortgage Loans Acquired for Sale

Note 25—Net Gain on Mortgage Loans Acquired for Sale

Net gain on mortgage loans acquired for sale is summarized below:

		Year ended December 31,
		2016			2015			2014
	(in thousands)
From non-affiliates:
Cash loss:
Mortgage loans		$	(229,743	)	$	(84,489	)	$	(25,241	)
Hedging activities			30,927			(17,742	)		(57,161	)
			(198,816	)		(102,231	)		(82,402	)
Non cash gain:
Receipt of MSRs in mortgage loan sale transactions			275,092			154,474			121,333
Provision for losses relating to representations and    warranties provided in mortgage loan sales
Pursuant to mortgage loans sales			(3,254	)		(5,771	)		(4,255	)
Reduction in liability due to change in estimate			7,564			—			—
Change in fair value of financial instruments held at    period end:
IRLCs			(869	)		(1,015	)		4,412
Mortgage loans			(1,846	)		(2,977	)		3,825
Hedging derivatives			19,347			961			(11,518	)
			16,632			(3,031	)		(3,281	)
Total from non-affiliates			97,218			43,441			31,395
From PFSI—cash gain			9,224			7,575			4,252
		$	106,442		$	51,016		$	35,647