Net Gains on Loans Held for Sale

9 Months Ended

Sep. 30, 2022

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 loans held for sale at fair value are summarized below:

	Quarter ended September 30,				Nine months ended September 30,
	2022		2021		2022		2021
	(in thousands)
From non-affiliates:
Cash (losses) gains:
Loans	$	(587,659)	$	135,841	$	(1,983,051)	$	605,858
Hedging activities		570,864		(9,788)		1,543,568		400,786
		(16,795)		126,053		(439,483)		1,006,644
Non-cash gains:
Mortgage servicing rights and mortgage servicing liabilities resulting from loan sales		345,077		398,665		1,359,632		1,288,177
Provisions for losses relating to representations and warranties:
Pursuant to loan sales		(1,651)		(6,561)		(7,887)		(26,918)
Reductions in liability due to change in estimate		1,769		4,355		7,165		11,680
Changes in fair values of loans and derivatives held at period end:
Interest rate lock commitments		(121,353)		17,313		(378,396)		(316,103)
Loans		170,887		109,411		347,968		164,311
Hedging derivatives		(207,592)		(9,506)		(183,227)		(125,276)
		170,342		639,730		705,772		2,002,515
From PennyMac Mortgage Investment Trust (1)		(1,648)		(12,976)		(16,052)		(38,772)
	$	168,694	$	626,754	$	689,720	$	1,963,743

(1) Gains on sale of loans to PMT are described in Note 4–Related Party Transactions.