Note 17—Net Gains on Mortgage Loans Held for Sale

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


	Quarter ended September 30,				Nine months ended September 30,
	2018		2017		2018		2017
	(in thousands)
From non-affiliates:
Cash (loss) gain:
Mortgage loans	$	(107,414)	$	(40,747)	$	(399,457)	$	(98,408)
Hedging activities		(2,507)		(14,592)		89,322		(8,168)
		(109,921)		(55,339)		(310,135)		(106,576)
Non-cash gain:
Mortgage servicing rights and mortgage servicing liabilities resulting from mortgage loan sales		147,259		154,763		443,056		419,968
Provision for losses relating to representations and warranties:
Pursuant to mortgage loan sales		(1,842)		(1,596)		(4,550)		(4,294)
Reduction in liability due to change in estimate		1,155		1,194		3,627		3,086
Change in fair value relating to mortgage loans and hedging derivatives held at quarter end:
Interest rate lock commitments		(18,526)		8,226		(21,109)		(5,008)
Mortgage loans		6,897		3,376		21,407		(2,554)
Hedging derivatives		13,327		(12,389)		11,100		(19,023)
		38,349		98,235		143,396		285,599
From PennyMac Mortgage Investment Trust		18,565		9,901		45,878		7,584
	$	56,914	$	108,136	$	189,274	$	293,183