Loan Sales and Servicing Activities

3 Months Ended

Mar. 31, 2023

Loan Sales and Servicing Activities

Loan Sales and Servicing Activities

Note 5—Loan Sales and Servicing Activities

The Company originates or purchases and sells 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 under 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 with the loans as servicer:

	Quarter ended March 31,
	2023		2022
	(in thousands)
Cash flows:
Sales proceeds	$	13,385,341	$	31,267,022
Servicing fees received	$	268,423	$	204,928

The following table summarizes the unpaid principal balance (“UPB”) of the loans sold by the Company in transactions when it maintains continuing involvement with the loans as servicer:

	March 31,		December 31,
	2023		2022
	(in thousands)
Unpaid principal balance of loans outstanding	$	302,265,588	$	295,032,674
Delinquent loans (1):
30-89 days	$	9,485,878	$	11,019,194
90 days or more:
Not in foreclosure	$	6,497,578	$	6,548,849
In foreclosure	$	793,231	$	834,155
Foreclosed	$	12,265	$	12,905
Loans in bankruptcy	$	1,181,793	$	1,143,484
Delinquent loans in COVID-19 pandemic-related forbearance plans:
30-89 days	$	725,398	$	950,172
90 days or more		2,464,057		2,934,718
	$	3,189,455	$	3,884,890

(1) Includes delinquent loans in COVID-19 pandemic-related forbearance plans that were requested by borrowers seeking payment relief in accordance with the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”).

The following tables summarize the Company’s loan servicing portfolio as measured by UPB:

	March 31, 2023
	Servicing				Total
	rights owned		Subservicing		loans serviced
	(in thousands)
Investor:
Non-affiliated entities:
Originated	$	302,265,588	$	—	$	302,265,588
Purchased		19,026,774		—		19,026,774
		321,292,362		—		321,292,362
PennyMac Mortgage Investment Trust		—		236,489,881		236,489,881
Loans held for sale		6,692,155		—		6,692,155
	$	327,984,517	$	236,489,881	$	564,474,398
Delinquent loans (1):
30 days	$	7,722,330	$	1,270,782	$	8,993,112
60 days		2,357,941		292,245		2,650,186
90 days or more:
Not in foreclosure		6,717,319		846,206		7,563,525
In foreclosure		903,791		70,454		974,245
Foreclosed		13,539		7,268		20,807
	$	17,714,920	$	2,486,955	$	20,201,875
Loans in bankruptcy	$	1,315,035	$	133,510	$	1,448,545
Delinquent loans in COVID-19 pandemic-related forbearance plans:
30 days	$	348,951	$	70,335	$	419,286
60 days		396,111		74,745		470,856
90 days or more		2,544,217		406,454		2,950,671
	$	3,289,279	$	551,534	$	3,840,813
Custodial funds managed by the Company (2)	$	4,556,322	$	2,347,138	$	6,903,460

(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 include 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 these custodial funds where it owns the MSRs and these fees are included in Interest income in the Company’s consolidated statements of income.

	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 include 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 these custodial funds where it owns the MSRs and these 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 loan servicing portfolio for the top five and all other states as measured by UPB:

	March 31,		December 31,
State	2023		2022
	(in thousands)
California	$	68,843,138	$	68,542,279
Florida		53,021,329		50,873,961
Texas		50,400,689		47,911,696
Virginia		33,897,358		33,478,151
Maryland		25,719,847		25,473,417
All other states		332,592,037		325,395,178
	$	564,474,398	$	551,674,682