Mortgage Servicing Rights and Mortgage Servicing Liabilities

9 Months Ended

Sep. 30, 2025

Mortgage Servicing Rights and Mortgage Servicing Liabilities

Mortgage Servicing Rights and Mortgage Servicing Liabilities

Note 11—Mortgage Servicing Rights and Mortgage Servicing Liabilities

Mortgage Servicing Rights at Fair Value

The activity in MSRs is as follows:

	Quarter ended September 30,				Nine months ended September 30,
	2025		2024		2025		2024
	(in thousands)
Balance at beginning of period	$	9,531,249	$	7,923,078	$	8,744,528	$	7,099,348
Additions (deductions):
MSRs resulting from loan sales		700,326		578,982		2,165,213		1,532,709
Exchange of mortgage servicing spread for interest-only stripped mortgage-backed securities		—		(121,520)		—		(121,520)
Sales to:
Non-affiliates		(183,514)		—		(183,514)		—
PennyMac Mortgage Investment Trust		(1,895)		—		(1,895)		—
		514,917		457,462		1,979,804		1,411,189
Change in fair value due to:
Changes in inputs used in valuation model (1)		(102,519)		(402,376)		(292,058)		(132,984)
Other changes in fair value (2)		(289,705)		(225,872)		(778,332)		(625,261)
Total change in fair value		(392,224)		(628,248)		(1,070,390)		(758,245)
Balance at end of period	$	9,653,942	$	7,752,292	$	9,653,942	$	7,752,292
Unpaid principal balance of underlying loans at end of period					$	470,281,735	$	410,031,301
					September 30,		December 31,
					2025		2024
					(in thousands)
Fair value of mortgage servicing rights pledged to secure Assets sold under agreements to repurchase and Notes payable secured by mortgage servicing assets					$	9,440,264	$	8,609,388

(1) Principally reflects changes in annual total prepayment speed, pricing spread and per loan annual cost of servicing inputs.

(2) Represents changes due to realization of cash flows.

Mortgage Servicing Liabilities at Fair Value

The activity in MSLs is summarized below:

	Quarter ended September 30,				Nine months ended September 30,
	2025		2024		2025		2024
	(in thousands)
Balance at beginning of period	$	1,643	$	1,708	$	1,683	$	1,805
Changes in fair value due to:
Changes in inputs used in valuation model (1)		(24)		46		2		34
Other changes in fair value (2)		(26)		(36)		(92)		(121)
Total change in fair value		(50)		10		(90)		(87)
Balance at end of period	$	1,593	$	1,718	$	1,593	$	1,718
Unpaid principal balance of underlying loans at end of period					$	17,457	$	20,179

(1) Principally reflects changes in annual total prepayment speed, pricing spread and per loan annual cost of servicing.

(2) Represents changes due to realization of cash flows.

Contractual servicing fees relating to MSRs and MSLs are recorded in Net loan servicing fees—Loan servicing fees—From non-affiliates on the Company’s consolidated statements of income; other fees relating to MSRs and MSLs are recorded in Net loan servicing fees—Loan servicing fees—Other on the Company’s consolidated statements of income. Such amounts are summarized below:

	Quarter ended September 30,				Nine months ended September 30,
	2025		2024		2025		2024
	(in thousands)
Contractual servicing fees	$	460,359	$	393,457	$	1,313,563	$	1,126,523
Other fees:
Late charges		21,477		19,122		61,383		53,979
Other		4,503		3,804		12,042		9,593
	$	486,339	$	416,383	$	1,386,988	$	1,190,095