Net Gains on Loans Held for Sale

9 Months Ended

Sep. 30, 2024

Net Gains on Loans Held for Sale

Net Gains on Loans Held for Sale

Note 20—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,
	2024		2023		2024		2023
	(in thousands)
From non-affiliates:
Cash losses:
Loans	$	(108,058)	$	(471,830)	$	(831,070)	$	(1,136,101)
Hedging activities		(274,090)		220,585		(31,319)		305,133
		(382,148)		(251,245)		(862,389)		(830,968)
Non-cash gains:
Mortgage servicing rights resulting from loan sales		578,982		450,936		1,532,709		1,299,992
Provisions for losses relating to representations and warranties:
Pursuant to loan sales		(4,070)		(4,011)		(12,151)		(8,885)
Reductions in liability due to changes in estimate		3,481		2,552		10,877		6,005
Changes in fair values of loans and derivatives held at end of period:
Interest rate lock commitments		49,862		(9,862)		29,021		(5,069)
Loans		(48,504)		22,083		(23,554)		24,762
Hedging derivatives		56,710		(58,579)		(80,869)		(87,165)
		254,313		151,874		593,644		398,672
From PennyMac Mortgage Investment Trust (1)		2,506		(500)		1,680		(1,494)
	$	256,819	$	151,374	$	595,324	$	397,178

(1) Gains on sales of loans to PMT are described in Note 4–Related Party Transactions–Transactions with PMT–Operating Activities.