Net Gains on Mortgage Loans Held for Sale

12 Months Ended

Dec. 31, 2018

Net Gains on Mortgage Loans Held for Sale

Net Gains on Mortgage Loans Held for Sale

Note 19—Net Gains on Mortgage Loans Held for Sale

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

	Year ended December 31,
	2018		2017		2016
	(in thousands)
From non-affiliates:
Cash loss:
Mortgage loans	$	(469,647)	$	(174,669)	$	(62,283)
Hedging activities		93,288		(16,866)		10,275
		(376,359)		(191,535)		(52,008)
Non-cash gain:
Mortgage servicing rights and mortgage servicing liabilities resulting from mortgage loan sales		584,156		563,872		562,540
Provision for losses relating to representations and warranties:
Pursuant to mortgage loan sales		(5,824)		(5,890)		(7,090)
Reduction in liability due to change in estimate		4,672		4,301		7,672
Change in fair value relating to mortgage loans and derivatives held at year end:
Interest rate lock commitments		(8,934)		(1,120)		15,618
Mortgage loans		(1,506)		4,576		2,796
Hedging derivatives		(11,766)		(4,389)		10,344
		184,439		369,815		539,872
From PennyMac Mortgage Investment Trust		64,583		21,989		(8,092)
	$	249,022	$	391,804	$	531,780