Net Gains on Loans Held for Sale

12 Months Ended

Dec. 31, 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 mortgage loans held for sale at fair value are summarized below:

	Year ended December 31,
	2022		2021		2020
	(in thousands)
From non-affiliates:
Cash (losses) gains:
Loans	$	(2,128,195)	$	600,840	$	2,025,260
Hedging activities		1,347,843		443,341		(767,588)
		(780,352)		1,044,181		1,257,672
Non-cash gains:
Mortgage servicing rights and mortgage servicing liabilities resulting from loan sales		1,718,094		1,755,318		1,114,720
Provisions for losses relating to representations and warranties:
Pursuant to loan sales		(9,617)		(31,590)		(21,035)
Reductions in liability due to change in estimate		8,451		16,037		8,667
Changes in fair values of loans and derivatives held at year end:
Interest rate lock commitments		(296,349)		(354,833)		540,376
Loans		188,849		210,961		(326,986)
Hedging derivatives		(20,879)		(124,200)		116,690
		808,197		2,515,874		2,690,104
From PennyMac Mortgage Investment Trust (1)		(16,564)		(51,473)		50,681
	$	791,633	$	2,464,401	$	2,740,785

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