Net Interest (Expense) Income

12 Months Ended

Dec. 31, 2021

Net Interest (Expense) Income

Net Interest (Expense) Income

Note 19—Net Interest (Expense) Income

Net interest (expense) income is summarized below:

	Year ended December 31,
	2021		2020		2019
	(in thousands)
Interest income:
From non-affiliates:
Cash and short-term investments	$	3,280	$	6,154	$	9,776
Loans held for sale at fair value		275,176		184,789		138,124
Placement fees relating to custodial funds		21,326		52,758		134,498
		299,782		243,701		282,398
From PennyMac Mortgage Investment Trust—Assets purchased from PennyMac Mortgage Investment Trust under agreements to resell		387		3,325		6,302
		300,169		247,026		288,700
Interest expense:
To non-affiliates:
Assets sold under agreements to repurchase (1)		164,132		112,778		74,215
Mortgage loan participation purchase and sale agreements		4,153		4,933		8,874
Obligations under capital lease		169		425		693
Notes payable secured by mortgage servicing assets		39,782		46,222		67,789
Unsecured senior notes		70,208		8,774		—
Corporate revolving line of credit		—		1,537		1,921
Interest shortfall on repayments of mortgage loans serviced for Agency securitizations		105,430		82,285		41,439
Interest on mortgage loan impound deposits		5,545		6,179		6,757
		389,419		263,133		201,688
To PennyMac Mortgage Investment Trust—Excess servicing spread financing at fair value		1,280		8,418		10,291
		390,699		271,551		211,979
	$	(90,530)	$	(24,525)	$	76,721

(1) In 2017, the Company entered a master repurchase agreement that provided it with incentives to finance mortgage loans approved for satisfying certain consumer relief characteristics as provided in the agreement. The master repurchase agreement expired on August 21, 2019. During the year ended December 31, 2019, the Company included $14.7 million of such incentives as a reduction in Interest expense.