Net Gains on Loans Held for Sale

3 Months Ended

Mar. 31, 2025

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 March 31,
	2025		2024
	(in thousands)
From non-affiliates:
Cash losses:
Loans	$	(276,310)	$	(309,190)
Hedging activities		(310,699)		150,219
		(587,009)		(158,971)
Non-cash gains:
Mortgage servicing rights resulting from loan sales		650,349		412,520
Provisions for losses relating to representations and warranties:
Pursuant to loan sales		(3,547)		(3,952)
Reductions in liability due to changes in estimate		1,415		3,320
Changes in fair values of loans and derivatives held at end of quarter:
Interest rate lock commitments		76,377		(19,786)
Loans		(87,039)		27,645
Hedging derivatives		165,653		(97,982)
		216,199		162,794
From PennyMac Mortgage Investment Trust (1)		4,838		(353)
	$	221,037	$	162,441

(1) Gains and losses on sales of loans to PMT are described in Note 5–Related Party Transactions–PennyMac Mortgage Investment Trust–Operating Activities.