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Transactions with Affiliates (Tables)
 12 Months Ended
Dec. 31, 2019
Transactions with Affiliates  
Summary of activity in Payable to exchanged Private National Mortgage Acceptance Company, LLC unitholders under tax receivable agreement

 

 

 

 

 

 

 

 

 

 

 

 

Year ended December 31,

 

 

2019

   

2018

   

2017

 

 

(in thousands)

Activity during the year:

 

 

 

 

 

 

 

 

 

Liability resulting from unit exchanges

 

$

 —

 

$

3,652

 

$

7,723

Payments under tax receivable agreement

 

$

 —

 

$

 —

 

$

(6,726)

Repricing of liability (1)

 

$

(379)

 

$

(1,126)

 

$

(32,940)

Balance at end of year

 

$

46,158

 

$

46,537

 

$

44,011

A $32.0 million reduction in the payable to exchanged PennyMac unitholders under the tax receivable agreement in 2017 was the result of the change in the federal corporate tax rate to 21% from the previous maximum of 35% under Tax Cuts and Jobs Act of 2017 (“the Tax Act”).

PMT  
Transactions with Affiliates  
Summary of lending activity between the Company and affiliate

 

 

 

 

 

 

 

 

 

 

 

 

Year ended December 31,

 

    

2019

   

2018

   

2017

 

 

(in thousands)

Net gains on loans held for sale at fair value:

 

 

 

 

 

 

 

 

 

Net gains on loans held for sale to PMT

 

$

190,416

 

$

69,359

 

$

28,238

Mortgage servicing rights and excess servicing spread recapture incurred

 

 

(7,051)

 

 

(4,776)

 

 

(6,249)

 

 

$

183,365

 

$

64,583

 

$

21,989

Sale of loans held for sale to PMT

 

$

6,255,915

 

$

3,343,028

 

$

904,097

 

 

 

 

 

 

 

 

 

 

Tax service fees earned from PMT included in Loan origination fees

 

$

14,695

 

$

7,433

 

$

7,078

 

 

 

 

 

 

 

 

 

 

Fulfillment fee revenue

    

$

160,610

    

$

81,350

    

$

80,359

Unpaid principal balance of loans fulfilled for PMT subject to fulfillment fees

 

$

56,033,704

 

$

26,194,303

 

$

22,971,119

 

 

 

 

 

 

 

 

 

 

Sourcing fees paid to PMT

 

$

14,381

 

$

10,925

 

$

12,084

Unpaid principal balance of loans purchased from PMT

 

$

47,937,306

 

$

36,415,933

 

$

40,561,241

 

Summary of loan servicing fees earned from PMT

 

 

 

 

 

 

 

 

 

 

 

 

Year ended December 31, 

 

    

2019

   

2018

 

2017

 

 

(in thousands)

Loan type serviced:

 

 

 

 

 

 

 

 

 

Loans acquired for sale at fair value

 

$

1,772

 

$

1,037

 

$

954

Loans at fair value

 

 

2,207

 

 

7,555

 

 

15,610

Mortgage servicing rights

 

 

44,818

 

 

33,453

 

 

26,500

 

 

$

48,797

 

$

42,045

 

$

43,064

Property management fees received from PMT included in Other income

 

$

314

 

$

442

 

$

350

 

Summary of management fees earned

 

 

 

 

 

 

 

 

 

 

 

 

Year ended December 31, 

 

    

2019

   

2018

 

2017

 

 

(in thousands)

Base management

 

$

29,303

    

$

23,033

    

$

22,280

Performance incentive

 

 

7,189

 

 

1,432

 

 

304

 

 

$

36,492

 

$

24,465

 

$

22,584

 

 

 

 

 

 

 

 

 

 

 

Summary of reimbursement of expenses

 

 

 

 

 

 

 

 

 

 

 

 

Year ended December 31,

 

 

2019

   

2018

   

2017

 

 

(in thousands)

Reimbursement of:

 

 

                

    

 

                

    

 

                

Common overhead incurred by the Company (1)

 

$

5,340

 

$

4,640

 

$

5,306

Compensation (1)

 

 

480

 

 

480

 

 

 —

Expenses incurred on PMT's behalf, net

 

 

4,362

 

 

1,113

 

 

2,257

 

 

$

10,182

 

$

6,233

 

$

7,563

Payments and settlements during the year (2)

 

$

177,116

 

$

71,943

 

$

64,945

(1)

The Company adopted Accounting Standards Update 2014-09 Revenues from Contracts with Customers (Topic 606) (“ASU 2014-09”) using the modified retrospective method effective January 1, 2018. Adoption of ASU 2014-09 using the modified retrospective method required the Company to include those reimbursements from PMT in Other revenue starting January 1, 2018. Before adoption of ASU 2014-09, the Company included such reimbursements as offsets to the respective expense line items.

 

Payments and settlements include payments for the operating, investing and financing activities summarized in this note and netting settlements made pursuant to master netting agreements between the Company and PMT.

Summary of investing activity between the Company and affiliate

 

 

 

 

 

 

 

 

 

 

 

 

 

Year ended December 31, 

 

 

    

2019

    

2018

 

2017

 

 

(in thousands)

 

Assets purchased from PennyMac Mortgage Investment Trust under agreements to resell:

 

 

 

 

 

 

 

 

 

 

Activity during the year:

 

 

 

 

 

 

 

 

 

 

Net repayments of assets purchased from PMT under agreement to resell

 

$

23,513

 

$

13,103

 

$

5,872

 

Interest income

 

$

6,302

 

$

7,462

 

$

8,038

 

Balance at end of year

 

$

107,512

 

$

131,025

 

 

 

 

Common shares of beneficial interest of PennyMac Mortgage Investment Trust:

 

 

 

 

 

 

 

 

 

 

Activity during the year:

 

 

 

 

 

 

 

 

 

 

Dividends earned from PennyMac Mortgage Investment Trust

 

$

141

 

$

140

 

$

141

 

Change in fair value of investment in common shares of PennyMac Mortgage Investment Trust

 

 

275

 

 

192

 

 

(23)

 

 

 

$

416

 

$

332

 

$

118

 

Balance at end of year:

 

 

 

 

 

 

 

 

 

 

Fair value

 

$

1,672

 

$

1,397

 

 

 

 

Number of shares

 

 

75

 

 

75

 

 

 

 

 

Summary of financing activity between the Company and affiliate

 

 

 

 

 

 

 

 

 

 

 

 

Year ended December 31,

 

 

2019

   

2018

   

2017

 

 

(in thousands)

Excess servicing spread financing:

 

 

 

 

 

 

 

 

 

Issuance pursuant to recapture agreement

 

$

1,757

 

$

2,688

 

$

5,244

Repayment

 

$

40,316

 

$

46,750

 

$

54,980

Gain (loss) recognized

 

$

9,256

 

$

(8,500)

 

$

19,350

Interest expense

 

$

10,291

 

$

15,138

 

$

16,951

Recapture incurred pursuant to refinancings by the Company of mortgage loans subject to excess servicing spread financing included in Net gains on loans held for sale at fair value

 

$

1,726

 

$

2,584

 

$

4,820

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 

 

December 31,

 

 

 

 

 

2019

 

2018

 

 

 

 

 

(in thousands)

 

 

 

Excess servicing spread financing at fair value

 

$

178,586

 

$

216,110

 

 

 

 

Summary of amounts due from and payable to affiliate

 

 

 

 

 

 

 

 

 

December 31, 

 

December 31, 

 

    

2019

    

2018

 

 

(in thousands)

Receivable from PMT:

 

 

 

 

 

 

Fulfillment fees

 

$

18,285

 

$

10,006

Management fees

 

 

10,579

 

 

6,559

Correspondent production fees

 

 

10,606

 

 

2,071

Servicing fees

 

 

4,659

 

 

4,841

Allocated expenses and expenses incurred on PMT's behalf

 

 

3,724

 

 

9,066

Conditional reimbursement

 

 

221

 

 

801

Interest on assets purchased under agreements to resell

 

 

85

 

 

120

 

 

$

48,159

 

$

33,464

Payable to PMT:

 

 

 

 

 

 

Amounts advanced by PMT to fund its servicing advances

 

$

70,520

 

$

100,554

Mortgage servicing rights recapture payable

 

 

149

 

 

179

Other

 

 

2,611

 

 

3,898

 

 

$

73,280

 

$

104,631