Net Gains on Loans Held for Sale

12 Months Ended

Dec. 31, 2021

Net Gains on Loans Held for Sale

Net Gains on Loans Held for Sale

Note 18—Net Gains on Loans Held for Sale

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

	Year ended December 31,
	2021		2020		2019
	(in thousands)
From non-affiliates:
Cash gains:
Loans	$	600,840	$	2,025,260	$	(190,853)
Hedging activities		443,341		(767,588)		(175,305)
		1,044,181		1,257,672		(366,158)
Non-cash gains:
Mortgage servicing rights and mortgage servicing liabilities resulting from loan sales		1,755,318		1,114,720		846,888
Provisions for losses relating to representations and warranties:
Pursuant to loan sales		(31,590)		(21,035)		(8,377)
Reductions in liability due to change in estimate		16,037		8,667		7,877
Changes in fair values of loans and derivatives held at year end:
Interest rate lock commitments		(354,833)		540,376		87,312
Loans		210,961		(326,986)		(42,878)
Hedging derivatives		(124,200)		116,690		17,499
		2,515,874		2,690,104		542,163
From PennyMac Mortgage Investment Trust (1)		(51,473)		50,681		183,365
	$	2,464,401	$	2,740,785	$	725,528

(1) Gains on sales of loans to PMT are described in Note 4–Transactions with Affiliates.