Loan Sales and Servicing Activities

12 Months Ended

Dec. 31, 2022

Loan Sales and Servicing Activities

Loan Sales and Servicing Activities

Note 5—Loan Sales and Servicing Activities

The Company originates or purchases and sells mortgage loans in the secondary mortgage market without recourse for credit losses. However, the Company maintains continuing involvement with the loans in the form of servicing arrangements and the liability for representations and warranties it makes to purchasers and insurers of the loans.

The following table summarizes cash flows between the Company and transferees as a result of the sale of loans in transactions where the Company maintains continuing involvement as servicer with the loans as servicer:

	Year ended December 31,
	2022		2021		2020
	(in thousands)
Cash flows:
Sales proceeds	$	84,345,379	$	154,450,942	$	102,840,312
Servicing fees received	$	931,315	$	840,104	$	678,142

The following table summarizes the UPB of the loans sold by the Company in which it maintains continuing involvement:

	December 31,
	2022		2021
	(in thousands)
Unpaid principal balance of loans outstanding	$	295,032,674	$	254,524,015
Delinquent loans (1):
30-89 days	$	11,019,194	$	6,129,597
90 days or more:
Not in foreclosure	$	6,548,849	$	8,399,299
In foreclosure	$	834,155	$	715,016
Foreclosed	$	12,905	$	6,900
Loans in bankruptcy	$	1,143,484	$	1,039,362
Delinquent loans in COVID-19 pandemic-related forbearance plans:
30-89 days	$	950,172	$	1,020,290
90 days or more		2,934,718		2,550,703
	$	3,884,890	$	3,570,993

(1) Includes delinquent loans in COVID-19 pandemic-related forbearance plans that were requested by borrowers seeking payment relief in accordance with the CARES Act.

The following tables summarize the UPB of the Company’s loan servicing portfolio:

	December 31, 2022
	Servicing				Total
	rights owned		Subservicing		loans serviced
	(in thousands)
Investor:
Non-affiliated entities:
Originated	$	295,032,674	$	—	$	295,032,674
Purchased		19,568,122		—		19,568,122
		314,600,796		—		314,600,796
PennyMac Mortgage Investment Trust		—		233,575,672		233,575,672
Loans held for sale		3,498,214		—		3,498,214
	$	318,099,010	$	233,575,672	$	551,674,682
Delinquent loans (1):
30 days	$	8,903,829	$	1,576,414	$	10,480,243
60 days		2,855,176		337,081		3,192,257
90 days or more:
Not in foreclosure		6,829,985		888,057		7,718,042
In foreclosure		914,213		75,012		989,225
Foreclosed		13,835		7,979		21,814
	$	19,517,038	$	2,884,543	$	22,401,581
Loans in bankruptcy	$	1,291,038	$	125,719	$	1,416,757
Delinquent loans in COVID-19 pandemic-related forbearance plans:
30 days	$	453,562	$	88,024	$	541,586
60 days		527,035		89,171		616,206
90 days or more		3,042,923		466,489		3,509,412
	$	4,023,520	$	643,684	$	4,667,204
Custodial funds managed by the Company (2)	$	3,329,709	$	1,783,157	$	5,112,866

(1) Includes delinquent loans in COVID-19 pandemic-related forbearance plans that were requested by borrowers seeking payment relief in accordance with the CARES Act.

(2) Custodial funds are cash accounts holding funds on behalf of borrowers and investors relating to loans serviced under servicing agreements and are not recorded on the Company’s consolidated balance sheets. The Company earns placement fees on certain of the custodial funds it manages on behalf of the loans’ borrowers and investors. Placement fees are included in Interest income in the Company’s consolidated statements of income.

	December 31, 2021
	Servicing				Total
	rights owned		Subservicing		loans serviced
	(in thousands)
Investor:
Non-affiliated entities:
Originated	$	254,524,015	$	—	$	254,524,015
Purchased		23,861,358		—		23,861,358
		278,385,373		—		278,385,373
PennyMac Mortgage Investment Trust		—		221,892,142		221,892,142
Loans held for sale		9,430,766		—		9,430,766
	$	287,816,139	$	221,892,142	$	509,708,281
Delinquent loans (1):
30 days	$	5,338,545	$	974,055	$	6,312,600
60 days		1,604,782		190,727		1,795,509
90 days or more:
Not in foreclosure		9,001,137		1,750,628		10,751,765
In foreclosure		829,494		43,793		873,287
Foreclosed		8,017		16,489		24,506
	$	16,781,975	$	2,975,692	$	19,757,667
Loans in bankruptcy	$	1,261,980	$	133,655	$	1,395,635
Delinquent loans in COVID-19 pandemic-related forbearance plans:
30 days	$	554,161	$	81,580	$	635,741
60 days		556,990		89,534		646,524
90 days or more		2,732,089		638,703		3,370,792
	$	3,843,240	$	809,817	$	4,653,057
Custodial funds managed by the Company (2)	$	8,485,081	$	3,823,527	$	12,308,608

(1) Includes delinquent loans in COVID-19 pandemic-related forbearance plans that were requested by borrowers seeking payment relief in accordance with the CARES Act.

(2) Custodial funds are cash accounts holding funds on behalf of borrowers and investors relating to loans serviced under servicing agreements and are not recorded on the Company’s consolidated balance sheets. The Company earns placement fees on certain of the custodial funds it manages on behalf of the loans’ borrowers and investors. Placement fees are included in Interest income in the Company’s consolidated statements of income.

Following is a summary of the geographical distribution of loans included in the Company’s servicing portfolio for the top five and all other states as measured by UPB:

	December 31,
State	2022		2021
	(in thousands)
California	$	68,542,279	$	67,317,935
Florida		50,873,961		45,222,233
Texas		47,911,696		42,064,686
Virginia		33,478,151		31,442,370
Maryland		25,473,417		23,922,075
All other states		325,395,178		299,738,982
	$	551,674,682	$	509,708,281