Net Gains on Loans Held for Sale

9 Months Ended

Sep. 30, 2025

Net Gains on Loans Held for Sale

Net Gains on Loans Held for Sale

Note 20—Net Gains on Loans Held for Sale

Net gains on loans held for sale at fair value are summarized below:

	Quarter ended September 30,				Nine months ended September 30,
	2025		2024		2025		2024
	(in thousands)
From non-affiliates:
Cash losses:
Loans	$	(258,450)	$	(108,058)	$	(1,107,970)	$	(831,070)
Hedging activities		(26,139)		(274,090)		(442,610)		(31,319)
		(284,589)		(382,148)		(1,550,580)		(862,389)
Non-cash gains:
Mortgage servicing rights resulting from loan sales		700,326		578,982		2,165,213		1,532,709
Provisions for losses relating to representations and warranties:
Pursuant to loan sales		(4,719)		(4,070)		(12,320)		(12,151)
Reductions in liability due to changes in estimate		2,365		3,481		6,000		10,877
Changes in fair values of loans and derivatives held at end of period:
Interest rate lock commitments		(20,563)		49,862		88,025		29,021
Loans		(828)		(48,504)		(103,135)		(23,554)
Hedging derivatives		(94,991)		56,710		147,581		(80,869)
		297,001		254,313		740,784		593,644
From PennyMac Mortgage Investment Trust (1)		17,454		2,506		29,367		1,680
	$	314,455	$	256,819	$	770,151	$	595,324

(1) The terms of loan sales to PMT are described in Note 5–Related Party Transactions–PennyMac Mortgage Investment Trust–Operating Activities.