Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | ||
Sep. 30, 2014 | Nov. 11, 2014 | Nov. 11, 2014 | |
Common Class A [Member] | Common Class B [Member] | ||
Entity Registrant Name | 'PENNYMAC FINANCIAL SERVICES, INC. | ' | ' |
Entity Central Index Key | '0001568669 | ' | ' |
Document Type | '10-Q | ' | ' |
Document Period End Date | 30-Sep-14 | ' | ' |
Amendment Flag | 'false | ' | ' |
Current Fiscal Year End Date | '--09-30 | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Filer Category | 'Non-accelerated Filer | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 21,538,012 | 58 |
Document Fiscal Year Focus | '2014 | ' | ' |
Document Fiscal Period Focus | 'Q3 | ' | ' |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
ASSETS | ' | ' |
Cash | $77,251 | $30,639 |
Short-term investments at fair value | 36,335 | 142,582 |
Mortgage loans held for sale at fair value (includes $1,087,425 and $512,350 pledged to secure mortgage loans sold under agreements to repurchase; and $146,798 and $- pledged to secure mortgage loan participation and sale agreement) | 1,259,991 | 531,004 |
Derivative assets | 28,400 | 21,540 |
Net servicing advances (includes $5,564 pledged to secure note payable at December 31,2013) | 195,246 | 154,328 |
Carried Interest due from Investment Funds | 67,035 | 61,142 |
Mortgage servicing rights (includes $319,149 and $224,913 mortgage servicing rights at fair value; $350,758 and $258,241 pledged to secure note payable; and $286,020 and $138,723 pledged to secure excess servicing spread financing) | 677,413 | 483,664 |
Furniture, fixtures, equipment and building improvements, net | 11,574 | 9,837 |
Capitalized software, net | 580 | 764 |
Receivable from Investment Funds | 2,702 | 2,915 |
Deferred tax asset | 52,820 | 63,117 |
Loans eligible for repurchase | 58,145 | 46,663 |
Other | 48,108 | 15,922 |
Total assets | 2,538,627 | 1,584,475 |
LIABILITIES | ' | ' |
Mortgage loans sold under agreements to repurchase | 929,747 | 471,592 |
Mortgage loans participation and sale agreement | 142,383 | ' |
Note payable | 154,948 | 52,154 |
Derivative liabilities | 4,440 | 2,462 |
Accounts payable and accrued expenses | 62,712 | 46,387 |
Mortgage servicing liabilities at fair value | 4,091 | ' |
Liability for loans eligible for repurchase | 58,145 | 46,663 |
Liability for losses under representations and warranties | 11,762 | 8,123 |
Total liabilities | 1,772,178 | 955,271 |
Commitments and contingencies | ' | ' |
STOCKHOLDERS' EQUITY | ' | ' |
Additional paid-in capital | 161,309 | 153,000 |
Retained earnings | 42,479 | 14,400 |
Total stockholders' equity attributable to PennyMac Financial Services, Inc. common stockholders | 203,790 | 167,402 |
Noncontrolling interest in Private National Mortgage Acceptance Company, LLC | 562,659 | 461,802 |
Total stockholders' equity | 766,449 | 629,204 |
Total liabilities and stockholders' equity | 2,538,627 | 1,584,475 |
Private National Mortgage Acceptance Company [Member] | ' | ' |
LIABILITIES | ' | ' |
Payable to exchanged Private National Mortgage Acceptance Company, LLC unitholders under tax receivable agreement | 75,925 | 71,056 |
Common Class A [Member] | ' | ' |
STOCKHOLDERS' EQUITY | ' | ' |
Common stock | 2 | 2 |
Common Class B [Member] | ' | ' |
STOCKHOLDERS' EQUITY | ' | ' |
Common stock | ' | ' |
Investment Funds | ' | ' |
ASSETS | ' | ' |
Carried Interest due from Investment Funds | 67,035 | 61,142 |
Receivable from Investment Funds | 2,702 | 2,915 |
LIABILITIES | ' | ' |
Payable to affiliates | 35,874 | 36,937 |
PennyMac Mortgage Investment Trust | ' | ' |
ASSETS | ' | ' |
Investment in PennyMac Mortgage Investment Trust at fair value | 1,607 | 1,722 |
Receivable from Investment Funds | 21,420 | 18,636 |
LIABILITIES | ' | ' |
Excess servicing spread financing at fair value payable to PennyMac Mortgage Investment Trust | 187,368 | 138,723 |
Payable to affiliates | $104,783 | $81,174 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Mortgage loans held for sale pledged to secure mortgage loans sold under agreements to repurchase at fair value | $1,087,425 | $512,350 |
Mortgage loans held for sale pledged to secure mortgage loans participation and sale agreement at fair value | 146,798 | ' |
Servicing advances pledged to secure note payable | ' | 5,564 |
Mortgage servicing rights pledged to secure note payable at fair value | 319,149 | 224,913 |
Mortgage servicing rights pledged to secure note payable at lower of amortized cost or fair value | 350,758 | 258,241 |
Mortgage servicing rights pledged to secure excess servicing spread financing | $286,020 | $138,723 |
Common Class A [Member] | ' | ' |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, par value (in dollars per share) | $0.00 | $0.00 |
Common stock, shares outstanding | 21,525,644 | 20,812,777 |
Common Class B [Member] | ' | ' |
Common stock, shares authorized | 1,000 | 1,000 |
Common stock, par value (in dollars per share) | $0.00 | $0.00 |
Common stock, shares issued | 58 | 58 |
Common stock, shares outstanding | 0 | 0 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Net gains (losses) on mortgage loans held for sale at fair value: | ' | ' | ' | ' |
From non-affiliates | $50,276 | $26,035 | $128,942 | $109,146 |
Net gains on mortgage loans held for sale at fair value | 48,133 | 25,949 | 122,375 | 108,560 |
Loan origination fees | 11,823 | 6,280 | 29,048 | 18,260 |
Loan servicing fees | ' | ' | ' | ' |
From non-affiliates and affiliates | 44,647 | 14,596 | 124,061 | 35,397 |
Ancillary and other fees | 6,620 | 2,777 | 16,609 | 7,700 |
Net servicing fees | 64,708 | 29,562 | 188,520 | 75,873 |
Amortization, impairment and change in fair value of mortgage servicing rights: | ' | ' | ' | ' |
Related to servicing for non-affiliates | -20,339 | -8,134 | -58,271 | -16,334 |
Amortization, impairment and change in fair value of mortgage servicing rights | -10,800 | -8,163 | -33,879 | -16,363 |
Net loan servicing fees | 53,908 | 21,399 | 154,641 | 59,510 |
Management fees: | ' | ' | ' | ' |
Management fees | 11,379 | 10,540 | 32,486 | 29,375 |
Carried Interest from Investment Funds | 1,902 | 2,812 | 5,893 | 10,411 |
Net interest expense: | ' | ' | ' | ' |
Interest income | 8,975 | 5,093 | 19,337 | 11,310 |
Interest expense: | ' | ' | ' | ' |
Payable to non-affiliates | 8,136 | 4,156 | 17,253 | 11,686 |
Interest expense | 11,713 | 4,156 | 26,831 | 11,686 |
Net interest expense: | -2,738 | 937 | -7,494 | -376 |
Change in fair value of investment in and dividends received from affiliate | 721 | 950 | 2,771 | 1,774 |
Other | 713 | 785 | 2,751 | 1,842 |
Total net revenue | 140,625 | 87,194 | 376,552 | 296,139 |
Expenses | ' | ' | ' | ' |
Compensation | 48,375 | 35,830 | 138,232 | 113,850 |
Servicing | 13,914 | 1,931 | 28,698 | 5,072 |
Technology | 4,350 | 2,587 | 10,914 | 6,203 |
Professional services | 3,290 | 2,831 | 8,150 | 7,901 |
Loan origination | 2,537 | 2,802 | 5,952 | 7,825 |
Other | 5,467 | 6,296 | 14,806 | 14,849 |
Total expenses | 77,933 | 52,277 | 206,752 | 155,700 |
Income before provision for income taxes | 62,692 | 34,917 | 169,800 | 140,439 |
Provision for income taxes | 7,232 | 3,493 | 19,385 | 5,531 |
Net income | 55,460 | 31,424 | 150,415 | 134,908 |
Less: Net income attributable to noncontrolling interest | 44,971 | 26,227 | 122,336 | 126,918 |
Net income attributable to PennyMac Financial Services, Inc. common stockholders | 10,489 | 5,197 | 28,079 | 7,990 |
Earnings per common share | ' | ' | ' | ' |
Basic (in dollars per share) | $0.49 | $0.29 | $1.33 | $0.50 |
Diluted (in dollars per share) | $0.49 | $0.28 | $1.32 | $0.50 |
Weighted-average common shares outstanding | ' | ' | ' | ' |
Basic (in shares) | 21,432 | 17,958 | 21,149 | 16,042 |
Diluted (in shares) | 75,949 | 75,876 | 75,918 | 75,867 |
PennyMac Mortgage Investment Trust | ' | ' | ' | ' |
Net gains (losses) on mortgage loans held for sale at fair value: | ' | ' | ' | ' |
Mortgage servicing rights and excess servicing spread financing recapture payable to PennyMac Mortgage Investment Trust | -2,143 | -86 | -6,567 | -586 |
Fulfillment fees from PennyMac Mortgage Investment Trust | 15,497 | 18,327 | 36,832 | 68,625 |
Loan servicing fees | ' | ' | ' | ' |
From non-affiliates and affiliates | 12,325 | 10,738 | 41,096 | 27,251 |
Amortization, impairment and change in fair value of mortgage servicing rights: | ' | ' | ' | ' |
Amortization, impairment and change in fair value of mortgage servicing rights | 9,539 | -29 | 24,392 | -29 |
Management fees: | ' | ' | ' | ' |
Management fees | 9,623 | 8,539 | 26,609 | 23,486 |
Interest expense: | ' | ' | ' | ' |
Interest expense | 3,577 | ' | 9,578 | ' |
Change in fair value of investment in and dividends received from affiliate | 8 | 165 | 20 | -68 |
Investment Funds | ' | ' | ' | ' |
Loan servicing fees | ' | ' | ' | ' |
From non-affiliates and affiliates | 1,116 | 1,451 | 6,754 | 5,525 |
Management fees: | ' | ' | ' | ' |
Management fees | 1,756 | 2,001 | 5,877 | 5,889 |
Carried Interest from Investment Funds | ' | ' | $5,893 | $10,411 |
CONSOLIDATED_STATEMENTS_OF_CHA
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (USD $) | Common Class A [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Noncontrolling Interest [Member] | Members Equity Component [Member] | Total |
In Thousands, except Share data, unless otherwise specified | ||||||
Balance at Dec. 31, 2012 | ' | ' | ' | ' | $261,750 | $261,750 |
Changes in members' equity | ' | ' | ' | ' | ' | ' |
Net income | ' | ' | ' | ' | 76,834 | 76,834 |
Unit-based compensation expense | ' | ' | ' | ' | 238 | 238 |
Distributions | ' | ' | ' | ' | -19,623 | -19,623 |
Partner capital issuance costs | ' | ' | ' | ' | -3,745 | -3,745 |
Exchange of existing partner units to Class A units of Private National Mortgage Acceptance Company, LLC | ' | ' | ' | 315,454 | -315,454 | ' |
Balance post-reorganization | ' | ' | ' | 315,454 | ' | 315,454 |
Net income | ' | ' | 7,990 | 50,084 | ' | 58,074 |
Stock and unit-based compensation | ' | 891 | ' | 1,265 | ' | 2,156 |
Issuance of common stock in initial public offering, net of issuance costs | 1 | 229,999 | ' | ' | ' | 230,000 |
Issuance of common shares in initial public offering, net of issuance costs | 12,778,000 | ' | ' | ' | ' | ' |
Underwriting and offering costs | ' | -13,290 | ' | -196 | ' | -13,486 |
Initial recognition of non-controlling interest | ' | -127,160 | ' | 127,160 | ' | ' |
Distributions | ' | ' | ' | -3,395 | ' | -3,395 |
Exchange of Class A units of Private National Mortgage Acceptance Company, LLC to Class A stock of PennyMac Financial Services, Inc. | 1 | 44,886 | ' | -44,887 | ' | ' |
Exchange of Class A units of Private National Mortgage Acceptance Company, LLC to Class A stock of PennyMac Financial Services, Inc. (in shares) | 6,110,000 | ' | ' | ' | ' | ' |
Tax effect of exchange of Class A units of Private National Mortgage Acceptance Company, LLC to Class A stock of PennyMac Financial Services, Inc. | ' | 1,158 | ' | ' | ' | 1,158 |
Balance at Sep. 30, 2013 | 2 | 136,484 | 7,990 | 445,485 | ' | 589,961 |
Balance (in shares) at Sep. 30, 2013 | 18,888,000 | ' | ' | ' | ' | ' |
Balance at Dec. 31, 2012 | ' | ' | ' | ' | 261,750 | ' |
Changes in members' equity | ' | ' | ' | ' | ' | ' |
Exchange of existing partner units to Class A units of Private National Mortgage Acceptance Company, LLC | ' | ' | ' | 315,500 | -315,500 | ' |
Balance at Dec. 31, 2013 | 2 | 153,000 | 14,400 | 461,802 | ' | 629,204 |
Balance (in shares) at Dec. 31, 2013 | 20,813,000 | ' | ' | ' | ' | ' |
Changes in members' equity | ' | ' | ' | ' | ' | ' |
Net income | ' | ' | 28,079 | 122,336 | ' | 150,415 |
Stock and unit-based compensation | ' | 2,086 | ' | 5,393 | ' | 7,479 |
Stock and unit-based compensation (in shares) | 32,000 | ' | ' | ' | ' | ' |
Issuance of common stock in settlement of director fees | ' | 147 | ' | ' | ' | 147 |
Issuance of common stock in settlement of directors' fees (in shares) | 9,000 | ' | ' | ' | ' | ' |
Distributions | ' | ' | ' | -20,300 | ' | -20,300 |
Exchange of Class A units of Private National Mortgage Acceptance Company, LLC to Class A stock of PennyMac Financial Services, Inc. | ' | 6,572 | ' | -6,572 | ' | ' |
Exchange of Class A units of Private National Mortgage Acceptance Company, LLC to Class A stock of PennyMac Financial Services, Inc. (in shares) | 672,000 | ' | ' | ' | ' | ' |
Tax effect of exchange of Class A units of Private National Mortgage Acceptance Company, LLC to Class A stock of PennyMac Financial Services, Inc. | ' | -496 | ' | ' | ' | -496 |
Balance at Sep. 30, 2014 | $2 | $161,309 | $42,479 | $562,659 | ' | $766,449 |
Balance (in shares) at Sep. 30, 2014 | 21,526,000 | ' | ' | ' | ' | ' |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Cash flow from operating activities | ' | ' |
Net income | $150,415 | $134,908 |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | ' | ' |
Net gains on mortgage loans held for sale at fair value | -122,375 | -108,560 |
Amortization, impairment and change in fair value of mortgage servicing rights | 33,879 | 16,363 |
Carried Interest from Investment Funds | -5,893 | -10,411 |
Accrual of interest on excess servicing spread financing | 9,578 | ' |
Amortization of debt issuance costs and commitment fees relating to financing facilities | 4,217 | 3,714 |
Change in fair value of real estate acquired in settlement of loans | ' | -22 |
Stock and unit-based compensation expense | 7,479 | 2,394 |
Depreciation and amortization | 972 | 594 |
Purchase of mortgage loans from Ginnie Mae securities for modification and subsequent sale | -897,381 | ' |
Originations of mortgage loans held for sale, net | -1,261,747 | -895,405 |
Sale and principal payments of mortgage loans held for sale | 13,362,317 | 13,198,471 |
Repurchase of loans subject to representations and warranties | -1,757 | ' |
Repurchase of real estate acquired in settlement of loans subject to representations and warranties | ' | -309 |
Sale of real estate acquired in settlement of loans subject to representations and warranties | ' | 287 |
Increase in servicing advances | -46,331 | -12,192 |
Increase in other assets | -38,806 | -5,007 |
Decrease in deferred tax asset | 14,670 | ' |
Increase in accounts payable and accrued expenses | 16,359 | 17,060 |
Net cash used in operating activities | -695,080 | -68,106 |
Cash flow from investing activities | ' | ' |
Decrease (increase) in short-term investments | 106,247 | -74,323 |
Purchase of mortgage servicing rights | -113,348 | -5,124 |
Sale of mortgage servicing rights | 10,916 | 550 |
Settlements of derivative financial instruments used for hedging | 3,048 | ' |
Purchase of furniture, fixtures, equipment and building improvements | -4,006 | -4,719 |
Acquisition of capitalized software | -56 | -242 |
(Increase) decrease in margin deposits and restricted cash | -1,620 | 5,349 |
Net cash provided by (used in) investing activities | 1,181 | -78,509 |
Cash flow from financing activities | ' | ' |
Sale of loans under agreements to repurchase | 12,500,064 | 12,225,201 |
Repurchase of loans sold under agreements to repurchase | -12,041,909 | -12,230,851 |
Sale of mortgage loan participation certificates | 180,062 | ' |
Repayment of mortgage loan participation certificates | -37,679 | ' |
Increase in note payable | 102,794 | 3,762 |
Issuance of common stock | ' | 230,000 |
Payment of common stock underwriting and offering costs | ' | -13,486 |
Payment by noncontrolling interest of common stock issuance costs | ' | -3,745 |
Distributions to Private National Mortgage Acceptance Company, LLC partners | -20,187 | -23,019 |
Net cash provided by financing activities | 740,511 | 190,690 |
Net increase in cash | 46,612 | 44,075 |
Cash at beginning of period | 30,639 | 12,323 |
Cash at end of period | 77,251 | 56,398 |
Investment Funds | ' | ' |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | ' | ' |
Accrual of servicing rebate to Investment Funds | 681 | 535 |
Carried Interest from Investment Funds | -5,893 | -10,411 |
(Increase) decrease in receivable from affiliates | -468 | 596 |
Increase in prepaid expenses | -1,063 | -371 |
PennyMac Mortgage Investment Trust | ' | ' |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | ' | ' |
Amortization, impairment and change in fair value of mortgage servicing rights | -24,392 | 29 |
Change in fair value of investment in common shares of PennyMac Mortgage Investment Trust | 115 | 196 |
Purchase of mortgage loans held for sale from PennyMac Mortgage Investment Trust | -11,947,251 | -12,429,698 |
Sale of mortgage loans held for sale to Penny Mac Mortgage Investment Trust | 4,955 | 12,339 |
(Increase) decrease in receivable from affiliates | -781 | -1,790 |
Increase (decrease) in payable to affiliate | 23,136 | 8,158 |
Cash flow from financing activities | ' | ' |
Issuance of excess servicing spread financing to PennyMac Mortgage Investment Trust | 82,646 | 2,828 |
Repayment of excess servicing spread financing to PennyMac Mortgage Investment Trust | ($25,280) | ' |
Organization_and_Basis_of_Pres
Organization and Basis of Presentation | 9 Months Ended | |||
Sep. 30, 2014 | ||||
Organization and Basis of Presentation | ' | |||
Organization and Basis of Presentation | ' | |||
Note 1—Organization and Basis of Presentation | ||||
PennyMac Financial Services, Inc. (“PFSI” or the “Company”) was formed as a Delaware corporation on December 31, 2012. Pursuant to a reorganization, the Company became a holding corporation and its primary asset is an equity interest in Private National Mortgage Acceptance Company, LLC (“PennyMac”). The Company is the managing member of PennyMac and operates and controls all of the businesses and affairs of PennyMac subject to the consent rights of other members under certain circumstances and, through PennyMac and its subsidiaries, continues to conduct the business previously conducted by these subsidiaries. | ||||
PennyMac is a Delaware limited liability company which, through its subsidiaries, engages in mortgage banking and investment management activities. PennyMac’s mortgage banking activities consist of residential mortgage loan production (including correspondent production and consumer-direct lending) and mortgage loan servicing. PennyMac’s investment management activities and a portion of its loan servicing activities are conducted on behalf of investment vehicles that invest in residential mortgage loans and related assets. PennyMac’s primary wholly owned subsidiaries are: | ||||
· | PNMAC Capital Management, LLC (“PCM”)—a Delaware limited liability company registered with the Securities and Exchange Commission (“SEC”) as an investment adviser under the Investment Advisers Act of 1940, as amended. PCM enters into investment management agreements with entities that invest in residential mortgage loans and related assets. | |||
Presently, PCM has management agreements with PennyMac Mortgage Investment Trust (“PMT”), a publicly held real estate investment trust, and three investment funds: PNMAC Mortgage Opportunity Fund, LLC and PNMAC Mortgage Opportunity Fund, L.P., (the “Master Fund”), both registered under the Investment Company Act of 1940, as amended; and PNMAC Mortgage Opportunity Fund Investors, LLC (collectively, “Investment Funds”). Together, the Investment Funds and PMT are referred to as the “Advised Entities.” | ||||
· | PennyMac Loan Services, LLC (“PLS”)—a Delaware limited liability company that services portfolios of residential mortgage loans on behalf of non-affiliates or the Advised Entities, originates new prime credit quality residential mortgage loans, and engages in other mortgage banking activities for its own account and the account of PMT. | |||
PLS is approved as a seller/servicer of mortgage loans by the Federal National Mortgage Association (“Fannie Mae”) and the Federal Home Loan Mortgage Corporation (“Freddie Mac”) and as an issuer of securities guaranteed by the Government National Mortgage Association (“Ginnie Mae”). PLS is a licensed Federal Housing Administration Nonsupervised Title II Lender with the U.S. Department of Housing and Urban Development (“HUD”) and a lender/servicer with the Veterans Administration (“VA”) (each an “Agency” and collectively the “Agencies”). | ||||
· | PNMAC Opportunity Fund Associates, LLC (“PMOFA”)—a Delaware limited liability company and the general partner of the Master Fund. PMOFA is entitled to incentive fees representing allocations of profits (“Carried Interest”) from the Master Fund. | |||
Initial Public Offering and Recapitalization | ||||
On May 14, 2013, PFSI completed an initial public offering (“IPO”) in which it sold approximately 12.8 million shares of its Class A common stock, at a public offering price of $18.00 per share. PFSI received net proceeds of $216.8 million, after deducting underwriting discounts and commissions, from sales of its shares in the IPO. PFSI used these net proceeds to purchase approximately 12.8 million Class A units of PennyMac. PFSI operates and controls all of the business and affairs and consolidates the financial results of PennyMac and its subsidiaries. | ||||
The purchase of 12.8 million Class A units of PennyMac has been accounted for as a transfer of interests under common control. Accordingly, the accompanying consolidated financial statements reflect a reclassification of members’ equity to noncontrolling interests in the Company of $315.5 million. This amount represents the carrying value in the Company of the existing owners of PennyMac on the date of the IPO. | ||||
Before the IPO, PennyMac completed a reorganization by amending its limited liability company agreement to convert all classes of ownership interests held by its existing owners to a single class of common units. The conversion of existing interests was based on the various interests’ liquidation priorities as specified in PennyMac’s prior limited liability company agreement. In connection with that reorganization, PFSI became the sole managing member of PennyMac. | ||||
After the completion of the recapitalization and reorganization transactions, PennyMac became a consolidated subsidiary of the Company. Accordingly, PennyMac’s consolidated financial statements are the Company’s historical financial statements. The historical consolidated financial statements of PennyMac are reflected herein based on the historical ownership interests of the then-existing PennyMac unitholders. | ||||
Tax Receivable Agreement | ||||
As part of the IPO, PFSI entered into an Exchange Agreement with PennyMac’s existing unitholders whereby the existing unitholders may exchange their PennyMac units for PFSI stock. PennyMac has made an election pursuant to Section 754 of the Internal Revenue Code which remains in effect. As a result of this election an exchange under the Exchange Agreement results in a special adjustment for PFSI that may increase PFSI’s tax basis of certain assets of PennyMac that otherwise would not have been available. These increases in tax basis may reduce the amount of income tax that PFSI would otherwise be required to pay in the future. These increases in tax basis may also decrease tax gains (or increase tax losses) on future dispositions of certain assets to the extent a portion of the increased tax basis is allocated to those assets. | ||||
As part of the IPO, PFSI entered into a tax receivable agreement with PennyMac’s existing unitholders that will provide for the payment by PFSI to PennyMac exchanged unitholders an amount equal to 85% of the amount of the benefits, if any, that PFSI is deemed to realize as a result of (i) increases in tax basis resulting from the exchanges noted above and (ii) certain other tax benefits related to PFSI entering into the tax receivable agreement, including tax benefits attributable to payments under the tax receivable agreement. | ||||
The term of the tax receivable agreement will continue until all such tax benefits have been utilized or expired, unless PFSI exercises its right to terminate the tax receivable agreement. In the event of termination of the tax receivable agreement, the Company would be required to make an immediate payment equal to the present value of the anticipated future net tax benefits, which upfront payment may be made years in advance of the actual realization of such future benefits. | ||||
Basis of Presentation | ||||
The accompanying consolidated financial statements have been prepared in compliance with accounting principles generally accepted in the United States (“U.S. GAAP”) as codified in the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“Codification”) for interim financial information and with the SEC’s instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, these financial statements and notes do not include all of the information required by U.S. GAAP for complete financial statements. The interim consolidated information should be read together with the Company’s Annual Report on Form 10-K for the year ended December 31, 2013. Intercompany accounts and transactions have been eliminated. | ||||
The accompanying unaudited consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the financial position, income, and cash flows for the interim periods, but are not necessarily indicative of the results of operations to be anticipated for the full year ending December 31, 2014. | ||||
Concentration_of_Risk
Concentration of Risk | 9 Months Ended |
Sep. 30, 2014 | |
Concentration of Risk | ' |
Concentration of Risk | ' |
Note 2—Concentration of Risk | |
A substantial portion of the Company’s activities relate to the Advised Entities. Fees charged to these entities (generally comprised of management fees, loan servicing fees, Carried Interest and fulfillment fees) totaled 33% and 50% of total net revenues for the quarters ended September 30, 2014 and 2013, respectively, and 35% and 47% for the nine months ended September 30, 2014 and 2013, respectively. | |
Transactions_with_Affiliates
Transactions with Affiliates | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
Transactions with Affiliates | ' | |||||||||||||
Transactions with Affiliates | ' | |||||||||||||
Note 3—Transactions with Affiliates | ||||||||||||||
Transactions with PMT | ||||||||||||||
Following is a summary of mortgage lending activity between the Company and PMT: | ||||||||||||||
Quarter ended September 30, | Nine months ended September 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
(in thousands) | ||||||||||||||
Fulfillment fee revenue | $ | 15,497 | $ | 18,327 | $ | 36,832 | $ | 68,625 | ||||||
Unpaid principal balance of loans fulfilled for PennyMac Mortgage Investment Trust | $ | 3,677,613 | $ | 3,681,771 | $ | 8,588,955 | $ | 12,792,482 | ||||||
Sourcing fees paid | $ | 1,384 | $ | 1,204 | $ | 3,401 | $ | 3,563 | ||||||
Fair value of loans purchased from PennyMac Mortgage Investment Trust | $ | 4,861,392 | $ | 4,147,535 | $ | 11,947,251 | $ | 12,429,698 | ||||||
Sale of mortgage loans held for sale to PennyMac Mortgage Investment Trust | $ | 2,970 | $ | 7,059 | $ | 4,955 | $ | 12,339 | ||||||
MSR recapture recognized | $ | — | $ | 86 | $ | 9 | $ | 586 | ||||||
Following is a summary of mortgage loan servicing fees earned from PMT: | ||||||||||||||
Quarter ended September 30, | Nine months ended September 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
(in thousands) | ||||||||||||||
Loan servicing fees relating to PMT’s: | ||||||||||||||
Mortgage loans acquired for sale at fair value: | ||||||||||||||
Base and supplemental | $ | 28 | $ | 62 | $ | 74 | $ | 231 | ||||||
Activity-based | 35 | 77 | 112 | 260 | ||||||||||
63 | 139 | 186 | 491 | |||||||||||
Distressed mortgage loans: | ||||||||||||||
Base and supplemental | 4,679 | 4,166 | 14,620 | 11,737 | ||||||||||
Activity-based | 4,076 | 3,414 | 16,208 | 7,739 | ||||||||||
8,755 | 7,580 | 30,828 | 19,476 | |||||||||||
MSRs: | ||||||||||||||
Base and supplemental | 3,459 | 2,911 | 9,930 | 7,037 | ||||||||||
Activity-based | 48 | 108 | 152 | 247 | ||||||||||
3,507 | 3,019 | 10,082 | 7,284 | |||||||||||
$ | 12,325 | $ | 10,738 | $ | 41,096 | $ | 27,251 | |||||||
Following is a summary of the management fees earned from PMT: | ||||||||||||||
Quarter ended September 30, | Nine months ended September 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
(in thousands) | ||||||||||||||
Management fees: | ||||||||||||||
Base | $ | 6,033 | $ | 5,104 | $ | 17,392 | $ | 14,043 | ||||||
Performance incentive | 3,590 | 3,435 | 9,217 | 9,443 | ||||||||||
$ | 9,623 | $ | 8,539 | $ | 26,609 | $ | 23,486 | |||||||
In the event of termination by PMT, the Company may be entitled to a termination fee in certain circumstances. The termination fee is equal to three times the sum of (a) the average annual base management fee, and (b) the average annual performance incentive fee earned by the Company, in each case during the 24-month period before termination. | ||||||||||||||
Following is a summary of financing and mortgage loan sourcing activity between the Company and PMT: | ||||||||||||||
Quarter ended September 30, | Nine months ended September 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
(in thousands) | ||||||||||||||
Issuance of excess servicing spread | $ | 9,253 | $ | 2,828 | $ | 82,646 | $ | 2,828 | ||||||
Change in fair value of excess servicing spread financing | $ | 9,539 | $ | (29 | ) | $ | 24,392 | $ | (29 | ) | ||||
Interest expense from excess servicing spread financing | $ | 3,577 | $ | — | $ | 9,578 | $ | — | ||||||
Excess servicing spread recapture recognized | $ | 2,143 | $ | — | $ | 6,558 | $ | — | ||||||
Other Transactions | ||||||||||||||
In connection with the IPO of PMT’s common shares on August 4, 2009, the Company entered into an agreement with PMT pursuant to which PMT agreed to reimburse PennyMac for the $2.9 million payment that it made to the underwriters in such offering (the “Conditional Reimbursement”) if PMT satisfied certain performance measures over a specified period of time. Effective February 1, 2013, the parties amended the terms of the reimbursement agreement to provide for the reimbursement to the Company of the Conditional Reimbursement if PMT is required to pay the Company performance incentive fees under the management agreement at a rate of $10 in reimbursement for every $100 of performance incentive fees earned. The reimbursement of the Conditional Reimbursement is subject to a maximum reimbursement in any particular 12 month period of $1.0 million and the maximum amount that may be reimbursed under the agreement is $2.9 million. The Company received payments from PMT totaling $256,000 and $292,000, respectively, during the quarter and nine months ended September 30, 2014. | ||||||||||||||
In the event the termination fee is payable to the Company under the management agreement and the Company has not received the full amount of the reimbursements and payments under the reimbursement agreement, such amount will be paid in full. The term of the reimbursement agreement expires on February 1, 2019. | ||||||||||||||
PMT reimburses the Company for other expenses, including common overhead expenses incurred on its behalf by the Company, in accordance with the terms of its management agreement. Such amounts are summarized below: | ||||||||||||||
Quarter ended September 30, | Nine months ended September 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
(in thousands) | ||||||||||||||
Reimbursement of: | ||||||||||||||
Common overhead incurred by the Company | $ | 2,912 | $ | 2,552 | $ | 8,181 | $ | 8,359 | ||||||
Expenses incurred on PMT’s behalf | 122 | 1,934 | 671 | 3,767 | ||||||||||
$ | 3,034 | $ | 4,486 | $ | 8,852 | $ | 12,126 | |||||||
Payments and settlements during the year (1) | $ | 31,621 | $ | 29,315 | $ | 72,975 | $ | 94,606 | ||||||
-1 | Payments and settlements include payments for management fees and correspondent production activities itemized in the preceding tables and netting settlements made pursuant to master netting agreements between the Company and PMT. | |||||||||||||
Amounts due from PMT are summarized below: | ||||||||||||||
September 30, | December 31, | |||||||||||||
2014 | 2013 | |||||||||||||
(in thousands) | ||||||||||||||
Management fees | $ | 9,623 | $ | 8,924 | ||||||||||
Servicing fees | 6,942 | 5,915 | ||||||||||||
Allocated expenses | 3,360 | 2,009 | ||||||||||||
Underwriting fees | 1,495 | 1,788 | ||||||||||||
$ | 21,420 | $ | 18,636 | |||||||||||
The Company also holds an investment in PMT in the form of 75,000 common shares of beneficial interest as of September 30, 2014 and December 31, 2013. The common shares of beneficial interest had fair values of $1.6 million and $1.7 million as of September 30, 2014 and December 31, 2013, respectively. | ||||||||||||||
Of the $104.8 million and $81.2 million payable to PMT, $100.5 million and $75.2 million represent deposits made by PMT to fund servicing advances made by the Company on PMT’s behalf as of September 30, 2014 and December 31, 2013, respectively. | ||||||||||||||
Investment Funds | ||||||||||||||
Amounts due from the Investment Funds are summarized below: | ||||||||||||||
September 30, | December 31, | |||||||||||||
2014 | 2013 | |||||||||||||
(in thousands) | ||||||||||||||
Carried Interest due from Investment Funds: | ||||||||||||||
PNMAC Mortgage Opportunity Fund, LLC | $ | 40,845 | $ | 37,702 | ||||||||||
PNMAC Mortgage Opportunity Fund Investors, LLC | 26,190 | 23,440 | ||||||||||||
$ | 67,035 | $ | 61,142 | |||||||||||
Receivable from Investment Funds: | ||||||||||||||
Management fees | $ | 1,755 | $ | 2,031 | ||||||||||
Loan servicing fees | 545 | 727 | ||||||||||||
Expense reimbursements | 220 | 21 | ||||||||||||
Loan servicing rebate | 182 | 136 | ||||||||||||
$ | 2,702 | $ | 2,915 | |||||||||||
Amounts due to the Investment Funds totaling $35.9 million and $36.9 million represent amounts advanced by the Investment Funds to fund servicing advances made by the Company as of September 30, 2014 and December 31, 2013, respectively. | ||||||||||||||
Exchanged Private National Mortgage Acceptance Company, LLC Unitholders | ||||||||||||||
As discussed in Note 1, Organization and Basis of Presentation, the Company entered into a tax receivable agreement with PennyMac’s existing unitholders on the date of the IPO that will provide for the payment by PFSI to PennyMac’s exchanged unitholders an amount equal to 85% of the amount of the benefits, if any, that PFSI is deemed to realize as a result of (i) increases in tax basis resulting from such unitholders’ exchanges and (ii) certain other tax benefits related to entering into the tax receivable agreement, including tax benefits attributable to payments under the tax receivable agreement. Based on the PennyMac unitholder exchanges to date, the Company has recorded a $75.9 million Payable to exchanged Private National Mortgage Acceptance Company, LLC unitholders under tax receivable agreement and it has not made any payments under such agreement as of September 30, 2014. | ||||||||||||||
Earnings_Per_Share_of_Common_S
Earnings Per Share of Common Stock | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
Earnings Per Share of Common Stock | ' | |||||||||||||
Earnings Per Share of Common Stock | ' | |||||||||||||
Note 4—Earnings Per Share of Common Stock | ||||||||||||||
Basic earnings per share of common stock is determined using net income attributable to the Company’s common stockholders divided by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share of common stock is determined by dividing net income attributable to the Company’s common stockholders by the weighted average number of shares of common stock outstanding, assuming all potentially dilutive shares of common stock were issued. | ||||||||||||||
The Company applies the treasury stock method to determine the dilutive weighted average shares of common stock represented by the unvested stock-based compensation awards and the exchangeable PennyMac Class A units. The diluted earnings per share calculation assumes the exchange of these PennyMac Class A units for shares of common stock. Accordingly, earnings attributable to the Company’s common stockholders is also adjusted to include the earnings allocated to the PennyMac Class A units after taking into account the income taxes applicable to the shares of common stock assumed to be exchanged. | ||||||||||||||
The following table summarizes the basic and diluted earnings per share calculations: | ||||||||||||||
Quarter ended September 30, | Nine months ended September 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
(in thousands, except per share data) | ||||||||||||||
Basic earnings per share of common stock: | ||||||||||||||
Net income attributable to PennyMac Financial Services, Inc. common stockholders | $ | 10,489 | $ | 5,197 | $ | 28,079 | $ | 7,990 | ||||||
Weighted-average shares of common stock outstanding | 21,432 | 17,958 | 21,149 | 16,042 | ||||||||||
Basic earnings per share of common stock | $ | 0.49 | $ | 0.29 | $ | 1.33 | $ | 0.50 | ||||||
Diluted earnings per share of common stock: | ||||||||||||||
Net income | $ | 10,489 | $ | 5,197 | $ | 28,079 | $ | 7,990 | ||||||
Effect of net income attributable to noncontrolling interest, net of income taxes | 26,620 | 15,685 | 72,374 | 29,595 | ||||||||||
Diluted net income attributable to common stockholders | $ | 37,109 | $ | 20,882 | $ | 100,453 | $ | 37,585 | ||||||
Weighted-average shares of common stock outstanding | 21,432 | 17,958 | 21,149 | 16,042 | ||||||||||
Dilutive shares: | ||||||||||||||
PennyMac Class A units exchangeable to common stock | 53,492 | 56,524 | 53,569 | 58,440 | ||||||||||
Non-vested PennyMac Class A units issuable under unit-based stock compensation plan and exchangeable to common stock | 975 | 1,364 | 1,155 | 1,364 | ||||||||||
Shares issuable under stock-based compensation plans | 50 | 30 | 45 | 21 | ||||||||||
Diluted weighted-average shares of common stock outstanding | 75,949 | 75,876 | 75,918 | 75,867 | ||||||||||
Diluted earnings per share of common stock | $ | 0.49 | $ | 0.28 | $ | 1.32 | $ | 0.50 | ||||||
Loan_Sales_and_Servicing_Activ
Loan Sales and Servicing Activities | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
Loan Sales and Servicing Activities | ' | |||||||||||||
Loan Sales and Servicing Activities | ' | |||||||||||||
Note 5—Loan Sales and Servicing Activities | ||||||||||||||
The Company 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 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 mortgage loans in transactions where the Company maintains continuing involvement with the mortgage loans (primarily the obligation to service the loans on behalf of the loans’ owners or owners’ agents): | ||||||||||||||
Quarter ended September 30, | Nine months ended September 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
(in thousands) | ||||||||||||||
Cash flows: | ||||||||||||||
Sales proceeds | $ | 5,345,227 | $ | 4,515,106 | $ | 13,367,272 | $ | 13,210,810 | ||||||
Servicing fees received | $ | 30,609 | $ | 16,403 | $ | 78,075 | $ | 38,104 | ||||||
Net servicing advances (recoveries) | $ | 6,520 | $ | (717 | ) | $ | 2,182 | $ | (4,375 | ) | ||||
Period end information: | ||||||||||||||
Unpaid principal balance of loans outstanding at end of period | $ | 33,297,161 | $ | 22,776,613 | ||||||||||
Delinquencies: | ||||||||||||||
30-89 days | $ | 662,863 | $ | 380,070 | ||||||||||
90 days or more or in foreclosure or bankruptcy | $ | 168,503 | $ | 247,269 | ||||||||||
The Company’s mortgage servicing portfolio is summarized as follows: | ||||||||||||||
September 30, 2014 | ||||||||||||||
Servicing | Contract servicing | Total | ||||||||||||
rights owned | and subservicing | loans serviced | ||||||||||||
(in thousands) | ||||||||||||||
Investor: | ||||||||||||||
Non affiliated entities | $ | 60,865,411 | $ | — | $ | 60,865,411 | ||||||||
Affiliated entities | — | 38,000,767 | 38,000,767 | |||||||||||
Mortgage loans held for sale | 1,217,599 | — | 1,217,599 | |||||||||||
$ | 62,083,010 | $ | 38,000,767 | $ | 100,083,777 | |||||||||
Amount subserviced for the Company | $ | 643,612 | $ | 279 | $ | 643,891 | ||||||||
Delinquent mortgage loans: | ||||||||||||||
30 days | $ | 1,224,346 | $ | 265,802 | $ | 1,490,148 | ||||||||
60 days | 475,806 | 124,884 | 600,690 | |||||||||||
90 days or more | 1,257,724 | 1,033,379 | 2,291,103 | |||||||||||
2,957,876 | 1,424,065 | 4,381,941 | ||||||||||||
Loans pending foreclosure | 335,121 | 1,526,415 | 1,861,536 | |||||||||||
$ | 3,292,997 | $ | 2,950,480 | $ | 6,243,477 | |||||||||
Custodial funds managed by the Company (1) | $ | 1,325,037 | $ | 476,909 | $ | 1,801,946 | ||||||||
December 31, 2013 | ||||||||||||||
Servicing | Contract servicing | Total | ||||||||||||
rights owned | and subservicing | loans serviced | ||||||||||||
(in thousands) | ||||||||||||||
Investor: | ||||||||||||||
Non affiliated entities | $ | 44,969,026 | $ | — | $ | 44,969,026 | ||||||||
Affiliated entities | — | 31,632,718 | 31,632,718 | |||||||||||
Private investors | 969,794 | 89,361 | 1,059,155 | |||||||||||
Mortgage loans held for sale | 506,540 | — | 506,540 | |||||||||||
$ | 46,445,360 | $ | 31,722,079 | $ | 78,167,439 | |||||||||
Amount subserviced for the Company | $ | 156,347 | $ | 582,610 | $ | 738,957 | ||||||||
Delinquent mortgage loans: | ||||||||||||||
30 days | $ | 1,304,054 | $ | 263,518 | $ | 1,567,572 | ||||||||
60 days | 346,912 | 112,275 | 459,187 | |||||||||||
90 days or more | 605,555 | 1,416,498 | 2,022,053 | |||||||||||
2,256,521 | 1,792,291 | 4,048,812 | ||||||||||||
Loans pending foreclosure | 168,776 | 1,792,128 | 1,960,904 | |||||||||||
$ | 2,425,297 | $ | 3,584,419 | $ | 6,009,716 | |||||||||
Custodial funds managed by the Company (1) | $ | 568,161 | $ | 246,587 | $ | 814,748 | ||||||||
-1 | Borrower and investor custodial cash accounts relate to loans serviced under the servicing agreements and are not recorded on the Company’s consolidated balance sheets. The Company earns interest on custodial funds it manages on behalf of the loans’ investors, which is recorded as part of the 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 the total unpaid principal balance (“UPB”): | ||||||||||||||
State | September 30, | December 31, | ||||||||||||
2014 | 2013 | |||||||||||||
(in thousands) | ||||||||||||||
California | $ | 33,373,669 | $ | 30,320,616 | ||||||||||
Texas | 6,299,566 | 4,470,123 | ||||||||||||
Virginia | 5,831,547 | 3,769,683 | ||||||||||||
Florida | 4,998,805 | 3,416,274 | ||||||||||||
Washington | 3,658,408 | 2,760,900 | ||||||||||||
All other states | 45,921,782 | 33,429,843 | ||||||||||||
$ | 100,083,777 | $ | 78,167,439 | |||||||||||
Certain of the loans serviced by the Company are subserviced on the Company’s behalf by other mortgage loan servicers. Loans are subserviced for the Company on a transitional basis for loans where the Company has obtained the rights to service the loans but servicing of the loans has not yet transferred to the Company’s servicing system. | ||||||||||||||
Netting_of_Financial_Instrumen
Netting of Financial Instruments | 9 Months Ended | |||||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||||
Netting of Financial Instruments | ' | |||||||||||||||||||||||||
Netting of Financial Instruments | ' | |||||||||||||||||||||||||
Note 6—Netting of Financial Instruments | ||||||||||||||||||||||||||
The Company uses derivative financial instruments to manage exposure to interest rate risk for the interest rate lock commitments (“IRLCs”) it makes to purchase or originate mortgage loans at specified interest rates, its inventory of mortgage loans held for sale and mortgage servicing rights (“MSRs”). The Company has elected to present net derivative asset and liability positions, and cash collateral obtained from (or posted to) its counterparties when subject to a master netting arrangements that are legally enforceable on all counterparties in the event of default. The derivatives that are not subject to a master netting arrangement are IRLCs. | ||||||||||||||||||||||||||
Following are summaries of derivative assets and related netting amounts. | ||||||||||||||||||||||||||
Offsetting of Derivative Assets | ||||||||||||||||||||||||||
September 30, 2014 | December 31, 2013 | |||||||||||||||||||||||||
Gross | Gross | Net | Gross | Gross | Net | |||||||||||||||||||||
amount of | amount | amount | amount of | amount | amount | |||||||||||||||||||||
recognized | offset | of assets in | recognized | offset | of assets | |||||||||||||||||||||
assets | in the | the | assets | in the | in the | |||||||||||||||||||||
balance | balance | balance | balance | |||||||||||||||||||||||
sheet | sheet | sheet | sheet | |||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||
Derivatives subject to master netting arrangements: | ||||||||||||||||||||||||||
MBS put options | $ | 625 | $ | — | $ | 625 | $ | 665 | $ | — | $ | 665 | ||||||||||||||
MBS call options | 227 | — | 227 | 91 | — | 91 | ||||||||||||||||||||
Forward purchase contracts | 5,686 | — | 5,686 | 416 | — | 416 | ||||||||||||||||||||
Forward sale contracts | 1,273 | — | 1,273 | 18,762 | — | 18,762 | ||||||||||||||||||||
Put options on Eurodollar futures | 1,713 | — | 1,713 | — | — | — | ||||||||||||||||||||
Call options on Eurodollar futures | 1,050 | — | 1,050 | — | — | — | ||||||||||||||||||||
Netting | — | (5,865 | ) | (5,865 | ) | — | (7,358 | ) | (7,358 | ) | ||||||||||||||||
10,574 | (5,865 | ) | 4,709 | 19,934 | (7,358 | ) | 12,576 | |||||||||||||||||||
Derivatives not subject to master netting arrangements - IRLCs | 23,691 | — | 23,691 | 8,964 | — | 8,964 | ||||||||||||||||||||
$ | 34,265 | $ | (5,865 | ) | $ | 28,400 | $ | 28,898 | $ | (7,358 | ) | $ | 21,540 | |||||||||||||
Derivative Assets, Financial Assets, and Collateral Held by Counterparty | ||||||||||||||||||||||||||
The following table summarizes by significant counterparty the amount of derivative asset positions after considering master netting arrangements and financial instruments or cash pledged that do not meet the accounting guidance qualifying for netting. | ||||||||||||||||||||||||||
September 30, 2014 | December 31, 2013 | |||||||||||||||||||||||||
Gross amount not | Gross amount not offset in | |||||||||||||||||||||||||
offset in the | the | |||||||||||||||||||||||||
consolidated | consolidated | |||||||||||||||||||||||||
balance sheet | balance sheet | |||||||||||||||||||||||||
Net amount | Financial | Cash | Net | Net amount | Financial | Cash | Net | |||||||||||||||||||
of assets | instruments | collateral | amount | of assets | instruments | collateral | amount | |||||||||||||||||||
in the balance | received | in the balance | received | |||||||||||||||||||||||
sheet | sheet | |||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||
Interest rate lock commitments | $ | 23,691 | $ | — | $ | — | $ | 23,691 | $ | 8,964 | $ | — | $ | — | $ | 8,964 | ||||||||||
RJ O’Brien | 2,313 | — | — | 2,313 | — | — | ||||||||||||||||||||
Bank of America, N.A. | 721 | — | — | 721 | 1,680 | 1,680 | ||||||||||||||||||||
Jefferies & Co. | 626 | — | — | 626 | 627 | 627 | ||||||||||||||||||||
Multi-Bank | 207 | — | — | 207 | — | — | — | — | ||||||||||||||||||
Morgan Stanley Bank, N.A. | 169 | — | — | 169 | 1,704 | — | — | 1,704 | ||||||||||||||||||
Credit Suisse First Boston Mortgage Capital LLC | — | — | — | — | 2,149 | — | — | 2,149 | ||||||||||||||||||
Daiwa Capital Markets Inc. | — | — | — | — | 1,190 | — | — | 1,190 | ||||||||||||||||||
Others | 673 | — | — | 673 | 5,226 | — | — | 5,226 | ||||||||||||||||||
$ | 28,400 | $ | — | $ | — | $ | 28,400 | $ | 21,540 | $ | — | $ | — | $ | 21,540 | |||||||||||
Offsetting of Derivative Liabilities and Financial Liabilities | ||||||||||||||||||||||||||
Following is a summary of net derivative liabilities and assets sold under agreements to repurchase and related netting amounts. As discussed above, all derivatives with the exception of IRLCs are subject to master netting arrangements. The mortgage loans sold under agreements to repurchase do not qualify for netting. | ||||||||||||||||||||||||||
September 30, 2014 | December 31, 2013 | |||||||||||||||||||||||||
Gross | Gross amount | Net | Gross | Gross amount | Net | |||||||||||||||||||||
amount of | offset | amount | amount of | offset | amount | |||||||||||||||||||||
recognized | in the | of liabilities | recognized | in the | of liabilities | |||||||||||||||||||||
liabilities | consolidated | in the | liabilities | consolidated | in the | |||||||||||||||||||||
balance | consolidated | balance | consolidated | |||||||||||||||||||||||
sheet | balance | sheet | balance | |||||||||||||||||||||||
sheet | sheet | |||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||
Derivatives subject to a master netting arrangement: | ||||||||||||||||||||||||||
Forward purchase contracts | $ | 645 | $ | — | $ | 645 | $ | 6,542 | $ | — | $ | 6,542 | ||||||||||||||
Forward sale contracts | 9,655 | — | 9,655 | 504 | — | 504 | ||||||||||||||||||||
Netting | — | (6,915 | ) | (6,915 | ) | — | (6,787 | ) | (6,787 | ) | ||||||||||||||||
10,300 | (6,915 | ) | 3,385 | 7,046 | (6,787 | ) | 259 | |||||||||||||||||||
Derivatives not subject to a master netting arrangement - IRLCs | 1,055 | — | 1,055 | 2,203 | — | 2,203 | ||||||||||||||||||||
Total derivatives | 11,355 | (6,915 | ) | 4,440 | 9,249 | (6,787 | ) | 2,462 | ||||||||||||||||||
Mortgage loans sold under agreements to repurchase | 929,747 | — | 929,747 | 471,592 | — | 471,592 | ||||||||||||||||||||
$ | 941,102 | $ | (6,915 | ) | $ | 934,187 | $ | 480,841 | $ | (6,787 | ) | $ | 474,054 | |||||||||||||
Derivative Liabilities, Financial Liabilities, and Collateral Held by Counterparty | ||||||||||||||||||||||||||
The following table summarizes by significant counterparty the amount of derivative liabilities and mortgage loans sold under agreements to repurchase after considering master netting arrangements and financial instruments or cash pledged that does not qualify under the accounting guidance for netting. All assets sold under agreements to repurchase are secured by sufficient collateral or have fair value that exceeds the liability amount recorded on the consolidated balance sheets. | ||||||||||||||||||||||||||
September 30, 2014 | December 31, 2013 | |||||||||||||||||||||||||
Net amount of | Gross amount | Net amount of | Gross amount | |||||||||||||||||||||||
not offset in the | not offset in the | |||||||||||||||||||||||||
consolidated | consolidated | |||||||||||||||||||||||||
balance sheet | balance sheet | |||||||||||||||||||||||||
liabilities | Financial | Cash | Net | liabilities | Financial | Cash | Net | |||||||||||||||||||
in the consolidated | instruments | collateral | amount | in the consolidated | instruments | collateral | amount | |||||||||||||||||||
balance sheet | pledged | balance sheet | pledged | |||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||
Interest rate lock commitments | $ | 1,055 | $ | — | $ | — | $ | 1,055 | $ | 2,203 | $ | — | $ | — | $ | 2,203 | ||||||||||
Credit Suisse First Boston Mortgage Capital LLC | 564,182 | (562,999 | ) | — | 1,183 | 198,888 | (198,888 | ) | — | — | ||||||||||||||||
Bank of America, N.A. | 224,169 | (224,169 | ) | — | — | 234,511 | (234,511 | ) | — | — | ||||||||||||||||
Morgan Stanley Bank, N.A. | 142,579 | (142,579 | ) | — | — | 38,193 | (38,193 | ) | — | — | ||||||||||||||||
Deutsche Bank | 308 | — | — | 308 | — | — | — | — | ||||||||||||||||||
Daiwa Capital Markets Inc. | 237 | — | — | 237 | — | — | — | — | ||||||||||||||||||
Bank of NY Mellon | 236 | — | — | 236 | — | — | — | — | ||||||||||||||||||
Fannie Capital Markets | 210 | — | — | 210 | — | — | — | — | ||||||||||||||||||
Bank of Oklahoma | 210 | — | — | 210 | — | — | — | — | ||||||||||||||||||
Others | 1,001 | — | — | 1,001 | 259 | — | — | 259 | ||||||||||||||||||
$ | 934,187 | $ | (929,747 | ) | $ | — | $ | 4,440 | $ | 474,054 | $ | (471,592 | ) | $ | — | $ | 2,462 | |||||||||
Fair_Value
Fair Value | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||
Fair Value | ' | |||||||||||||||||||
Fair Value | ' | |||||||||||||||||||
Note 7—Fair Value | ||||||||||||||||||||
The Company’s consolidated financial statements include assets and liabilities that are measured based on their fair values. The application of fair value may be on a recurring or nonrecurring basis depending on the accounting principles applicable to the specific asset or liability and whether management has elected to carry the item at its fair value as discussed in the following paragraphs. | ||||||||||||||||||||
Fair Value Accounting Elections | ||||||||||||||||||||
Management identified all of its non-cash financial assets and its originated MSRs relating to loans with initial interest rates of more than 4.5% and MSRs purchased subject to excess servicing spread (“ESS”) financing to be accounted for at fair value so changes in fair value will be reflected in income as they occur and more timely reflect the results of the Company’s performance. Management has also identified its ESS financing to be accounted for at fair value as a means of hedging the related MSR’s fair value risk. | ||||||||||||||||||||
For originated MSRs relating to mortgage loans with initial interest rates of less than or equal to 4.5%, management has concluded that such assets present different risks to the Company than originated MSRs relating to mortgage loans with initial interest rates of more than 4.5% and therefore require a different risk management approach. Management’s risk management efforts relating to these assets are aimed at mainly moderating the effects of non-interest rate risks on fair value, such as the effect of changes in home prices on the assets’ fair values. Management has identified these assets for accounting using the amortization method. | ||||||||||||||||||||
Management’s risk management efforts in connection with MSRs relating to mortgage loans with initial interest rates of more than 4.5% are aimed at mainly moderating the effects of changes in interest rates on the assets’ fair values. At times during the quarter and nine months ended September 30, 2014 and the quarter ended September 30, 2013, derivatives were used to hedge the fair value changes of the MSRs. | ||||||||||||||||||||
Financial Statement Items Measured at Fair Value on a Recurring Basis | ||||||||||||||||||||
Following is a summary of financial statement items that are measured at fair value on a recurring basis: | ||||||||||||||||||||
September 30, 2014 | ||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||
(in thousands) | ||||||||||||||||||||
Assets: | ||||||||||||||||||||
Short-term investments | $ | 36,335 | $ | — | $ | — | $ | 36,335 | ||||||||||||
Mortgage loans held for sale at fair value | — | 973,935 | 286,056 | 1,259,991 | ||||||||||||||||
Derivative assets: | ||||||||||||||||||||
Interest rate lock commitments | — | — | 23,691 | 23,691 | ||||||||||||||||
MBS put options | — | 625 | — | 625 | ||||||||||||||||
MBS call options | — | 227 | — | 227 | ||||||||||||||||
Forward purchase contracts | — | 5,686 | — | 5,686 | ||||||||||||||||
Forward sales contracts | — | 1,273 | — | 1,273 | ||||||||||||||||
Put options on Eurodollar futures | — | 1,713 | — | 1,713 | ||||||||||||||||
Call options on Eurodollar futures | — | 1,050 | — | 1,050 | ||||||||||||||||
Total derivative assets before netting | — | 10,574 | 23,691 | 34,265 | ||||||||||||||||
Netting (1) | — | — | — | (5,865 | ) | |||||||||||||||
Total derivative assets | — | 10,574 | 23,691 | 28,400 | ||||||||||||||||
Investment in PennyMac Mortgage Investment Trust | 1,607 | — | — | 1,607 | ||||||||||||||||
Mortgage servicing rights at fair value | — | — | 319,149 | 319,149 | ||||||||||||||||
$ | 37,942 | $ | 984,509 | $ | 628,896 | $ | 1,645,482 | |||||||||||||
Liabilities: | ||||||||||||||||||||
Excess servicing spread financing at fair value payable to PennyMac Mortgage Investment Trust | $ | — | $ | — | $ | 187,368 | $ | 187,368 | ||||||||||||
Derivative liabilities: | ||||||||||||||||||||
Interest rate lock commitments | — | — | 1,055 | 1,055 | ||||||||||||||||
Forward purchase contracts | — | 645 | — | 645 | ||||||||||||||||
Forward sales contracts | — | 9,655 | — | 9,655 | ||||||||||||||||
Total derivative liabilities before netting | — | 10,300 | 1,055 | 11,355 | ||||||||||||||||
Netting (1) | — | — | — | (6,915 | ) | |||||||||||||||
Total derivative liabilities | — | 10,300 | 1,055 | 4,440 | ||||||||||||||||
Mortgage servicing liabilities | — | — | 4,091 | 4,091 | ||||||||||||||||
$ | — | $ | 10,300 | $ | 192,514 | $ | 195,899 | |||||||||||||
-1 | Derivatives are reported net of cash collateral received and paid and, to the extent that the criteria of the accounting guidance covering the offsetting of amounts related to certain contracts are met, positions with the same counterparty are netted as part of a legally enforceable master netting agreement. | |||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||
(in thousands) | ||||||||||||||||||||
Assets: | ||||||||||||||||||||
Short-term investments | $ | 142,582 | $ | — | $ | — | $ | 142,582 | ||||||||||||
Mortgage loans held for sale at fair value | — | 527,071 | 3,933 | 531,004 | ||||||||||||||||
Derivative assets: | ||||||||||||||||||||
Interest rate lock commitments | — | — | 8,964 | 8,964 | ||||||||||||||||
Forward purchase contracts | — | 416 | — | 416 | ||||||||||||||||
Forward sales contracts | — | 18,762 | — | 18,762 | ||||||||||||||||
MBS put options | — | 665 | — | 665 | ||||||||||||||||
MBS call options | — | 91 | — | 91 | ||||||||||||||||
Total derivative assets before netting | — | 19,934 | 8,964 | 28,898 | ||||||||||||||||
Netting (1) | — | — | — | (7,358 | ) | |||||||||||||||
Total derivative assets | — | 19,934 | 8,964 | 21,540 | ||||||||||||||||
Investment in PennyMac Mortgage Investment Trust | 1,722 | — | — | 1,722 | ||||||||||||||||
Mortgage servicing rights at fair value | — | — | 224,913 | 224,913 | ||||||||||||||||
$ | 144,304 | $ | 547,005 | $ | 237,810 | $ | 921,761 | |||||||||||||
Liabilities: | ||||||||||||||||||||
Excess servicing spread financing at fair value payable to PennyMac Mortgage Investment Trust | $ | — | $ | — | $ | 138,723 | $ | 138,723 | ||||||||||||
Derivative liabilities: | ||||||||||||||||||||
Interest rate lock commitments | — | — | 2,203 | 2,203 | ||||||||||||||||
Forward purchase contracts | — | 6,542 | — | 6,542 | ||||||||||||||||
Forward sales contracts | — | 504 | — | 504 | ||||||||||||||||
Total derivative liabilities before netting | — | 7,046 | 2,203 | 9,249 | ||||||||||||||||
Netting (1) | — | — | — | (6,787 | ) | |||||||||||||||
Total derivative liabilities | — | 7,046 | 2,203 | 2,462 | ||||||||||||||||
$ | — | $ | 7,046 | $ | 140,926 | $ | 141,185 | |||||||||||||
-1 | Derivatives are reported net of cash collateral received and paid and, to the extent that the criteria of the accounting guidance covering the offsetting of amounts related to certain contracts are met, positions with the same counterparty are netted as part of a legally enforceable master netting agreement. | |||||||||||||||||||
As shown above, certain of the Company’s mortgage loans held for sale, IRLCs, MSRs at fair value, and ESS financing at fair value are measured using Level 3 inputs. Following is a roll forward of these items for the quarters and nine-month periods ended September 30, 2014 and 2013 where Level 3 significant inputs were used on a recurring basis: | ||||||||||||||||||||
Quarter ended September 30, 2014 | ||||||||||||||||||||
Mortgage | Net interest | Mortgage | Total | |||||||||||||||||
loans held | rate lock | servicing | ||||||||||||||||||
for sale | commitments (1) | rights | ||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Assets: | ||||||||||||||||||||
Balance, June 30, 2014 | $ | 254,656 | $ | 29,750 | $ | 308,599 | $ | 593,005 | ||||||||||||
Purchases | 217,498 | — | 15,704 | 233,202 | ||||||||||||||||
Sales | (74,817 | ) | — | — | (74,817 | ) | ||||||||||||||
Repayments | (10,659 | ) | — | — | (10,659 | ) | ||||||||||||||
Interest rate lock commitments issued, net | — | 30,727 | — | 30,727 | ||||||||||||||||
Mortgage servicing rights resulting from mortgage loan sales | — | — | 6,381 | 6,381 | ||||||||||||||||
Changes in fair value included in income arising from: | ||||||||||||||||||||
Changes in instrument-specific credit risk | — | — | ||||||||||||||||||
Other factors | 1,797 | 2,289 | (11,535 | ) | (7,449 | ) | ||||||||||||||
1,797 | 2,289 | (11,535 | ) | (7,449 | ) | |||||||||||||||
Transfers to Level 2 mortgage loans held for sale (2) | (102,419 | ) | — | — | (102,419 | ) | ||||||||||||||
Transfers of interest rate lock commitments to mortgage loans held for sale | — | (40,130 | ) | — | (40,130 | ) | ||||||||||||||
Balance, September 30, 2014 | $ | 286,056 | $ | 22,636 | $ | 319,149 | $ | 627,841 | ||||||||||||
Changes in fair value recognized during the period relating to assets still held at September 30, 2014 | $ | 1,797 | $ | 22,636 | $ | (11,535 | ) | |||||||||||||
-1 | For the purpose of this table, the IRLC asset and liability positions are shown net. | |||||||||||||||||||
-2 | Mortgage loans held for sale transferred from Level 3 to Level 2 as a result of the mortgage loan becoming salable into active mortgage markets pursuant to a loan modification or borrower reperformance. | |||||||||||||||||||
Quarter ended September 30, 2014 | ||||||||||||||||||||
Excess | Mortgage servicing | Total | ||||||||||||||||||
servicing spread | liabilities | |||||||||||||||||||
financing | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Liabilities: | ||||||||||||||||||||
Balance, June 30, 2014 | $ | 190,244 | $ | 5,821 | $ | 196,065 | ||||||||||||||
Proceeds received from excess servicing spread financing | 9,253 | — | 9,253 | |||||||||||||||||
ESS issued pursuant to a recapture agreement with PennyMac Mortgage Investment Trust | 2,619 | — | 2,619 | |||||||||||||||||
Accrual of interest | 3,577 | — | 3,577 | |||||||||||||||||
Repayments | (8,786 | ) | — | (8,786 | ) | |||||||||||||||
Changes in fair value included in income | (9,539 | ) | (1,730 | ) | (11,269 | ) | ||||||||||||||
Balance, September 30, 2014 | $ | 187,368 | $ | 4,091 | $ | 191,459 | ||||||||||||||
Changes in fair value recognized during the period relating to liabilities still held at September 30, 2014 | $ | (9,539 | ) | $ | (1,730 | ) | ||||||||||||||
Quarter ended September 30, 2013 | ||||||||||||||||||||
Mortgage | Net interest | Mortgage servicing | Total | |||||||||||||||||
loans held | rate lock | rights | ||||||||||||||||||
for sale | commitments (1) | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Assets: | ||||||||||||||||||||
Balance, June 30, 2013 | $ | 4,525 | $ | (16,210 | ) | $ | 23,070 | $ | 11,385 | |||||||||||
Purchases | — | — | 1,116 | 1,116 | ||||||||||||||||
Repayments | (436 | ) | — | — | (436 | ) | ||||||||||||||
Interest rate lock commitments issued, net | — | 23,788 | — | 23,788 | ||||||||||||||||
Mortgage servicing rights resulting from mortgage loan sales | — | — | 4,157 | 4,157 | ||||||||||||||||
Changes in fair value included in income arising from: | ||||||||||||||||||||
Changes in instrument-specific credit risk | — | — | ||||||||||||||||||
Other factors | 96 | 10,585 | (1,575 | ) | 9,106 | |||||||||||||||
96 | 10,585 | (1,575 | ) | 9,106 | ||||||||||||||||
Transfers of interest rate lock commitments to mortgage loans held for sale | — | 3,395 | — | 3,395 | ||||||||||||||||
Balance, September 30, 2013 | $ | 4,185 | $ | 21,558 | $ | 26,768 | $ | 52,511 | ||||||||||||
Changes in fair value recognized during the period relating to assets still held at September 30, 2013 | $ | 16 | $ | 21,558 | $ | (1,575 | ) | |||||||||||||
-1 | For the purpose of this table, the interest rate lock asset and liability positions are shown net. | |||||||||||||||||||
Excess servicing | ||||||||||||||||||||
spread financing | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Liability: | ||||||||||||||||||||
Balance, June 30, 2013 | $ | — | ||||||||||||||||||
Proceeds received from excess servicing spread financing | 2,828 | |||||||||||||||||||
Changes in fair value included in income | 29 | |||||||||||||||||||
Repayments | — | |||||||||||||||||||
Balance, September 30, 2013 | $ | 2,857 | ||||||||||||||||||
Changes in fair value recognized during the period relating to liability still held at September 30, 2013 | $ | 29 | ||||||||||||||||||
Nine months ended September 30, 2014 | ||||||||||||||||||||
Mortgage | Net interest | Mortgage | Total | |||||||||||||||||
loans held | rate lock | servicing | ||||||||||||||||||
for sale | commitments (1) | rights | ||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Assets: | ||||||||||||||||||||
Balance, December 31, 2013 | $ | 3,933 | $ | 6,761 | $ | 224,913 | $ | 235,607 | ||||||||||||
Purchases | 897,381 | — | 113,348 | 1,010,729 | ||||||||||||||||
Sales | (435,437 | ) | — | (10,916 | ) | (446,353 | ) | |||||||||||||
Repayments | (16,778 | ) | — | — | (16,778 | ) | ||||||||||||||
Interest rate lock commitments issued, net | — | 113,559 | — | 113,559 | ||||||||||||||||
Mortgage servicing rights resulting from mortgage loan sales | — | — | 20,647 | 20,647 | ||||||||||||||||
Changes in fair value included in income arising from: | ||||||||||||||||||||
Changes in instrument-specific credit risk | — | — | ||||||||||||||||||
Other factors | (84 | ) | 21,768 | (28,843 | ) | (7,159 | ) | |||||||||||||
(84 | ) | 21,768 | (28,843 | ) | (7,159 | ) | ||||||||||||||
Transfers to Level 2 mortgage loans held for sale (2) | (162,959 | ) | — | — | (162,959 | ) | ||||||||||||||
Transfers of interest rate lock commitments to mortgage loans held for sale | — | (119,452 | ) | — | (119,452 | ) | ||||||||||||||
Balance, September 30, 2014 | $ | 286,056 | $ | 22,636 | $ | 319,149 | $ | 627,841 | ||||||||||||
Changes in fair value recognized during the period relating to assets still held at September 30, 2014 | $ | (84 | ) | $ | 22,636 | $ | (28,878 | ) | ||||||||||||
-1 | For the purpose of this table, the interest rate lock asset and liability positions are shown net. | |||||||||||||||||||
-2 | Mortgage loans held for sale transferred from Level 3 to Level 2 as a result of the mortgage loan becoming salable into active mortgage markets pursuant to a loan modification or borrower reperformance. | |||||||||||||||||||
Nine months ended September 30, 2014 | ||||||||||||||||||||
Excess | Mortgage servicing | Total | ||||||||||||||||||
servicing spread | liabilities | |||||||||||||||||||
financing | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Liabilities: | ||||||||||||||||||||
Balance, December 31, 2013 | $ | 138,723 | $ | — | $ | 138,723 | ||||||||||||||
Proceeds received from excess servicing spread financing | 82,646 | — | 82,646 | |||||||||||||||||
Pursuant to a recapture agreement with PennyMac Mortgage Investment Trust | 6,093 | — | 6,093 | |||||||||||||||||
Accrual of interest on excess servicing spread financing | 9,578 | — | 9,578 | |||||||||||||||||
Repayments | (25,280 | ) | — | (25,280 | ) | |||||||||||||||
Changes in fair value included in income | (24,392 | ) | 4,091 | (20,301 | ) | |||||||||||||||
Balance, September 30, 2014 | $ | 187,368 | $ | 4,091 | $ | 191,459 | ||||||||||||||
Changes in fair value recognized during the period relating to liabilities still held at September 30, 2014 | $ | (24,393 | ) | $ | 4,091 | |||||||||||||||
Nine months ended September 30, 2013 | ||||||||||||||||||||
Mortgage | Net interest | Mortgage servicing | Total | |||||||||||||||||
loans held | rate lock | rights | ||||||||||||||||||
for sale | commitments (1) | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Assets: | ||||||||||||||||||||
Balance, December 31, 2012 | $ | — | $ | 23,940 | $ | 19,798 | $ | 43,738 | ||||||||||||
Purchases | — | — | 5,124 | 5,124 | ||||||||||||||||
Repurchases of mortgage loans subject to representations and warranties | 5,529 | — | — | 5,529 | ||||||||||||||||
Sales | — | — | (550 | ) | (550 | ) | ||||||||||||||
Repayments | (1,059 | ) | — | — | (1,059 | ) | ||||||||||||||
Interest rate lock commitments issued, net | — | 78,722 | — | 78,722 | ||||||||||||||||
Mortgage servicing rights resulting from mortgage loan sales | — | — | 4,177 | 4,177 | ||||||||||||||||
Changes in fair value included in income arising from: | ||||||||||||||||||||
Changes in instrument-specific credit risk | — | — | ||||||||||||||||||
Other factors | (285 | ) | (15,289 | ) | (1,781 | ) | (17,355 | ) | ||||||||||||
(285 | ) | (15,289 | ) | (1,781 | ) | (17,355 | ) | |||||||||||||
Transfers of interest rate lock commitments to mortgage loans held for sale | — | (65,815 | ) | — | (65,815 | ) | ||||||||||||||
Balance, September 30, 2013 | $ | 4,185 | $ | 21,558 | $ | 26,768 | $ | 52,511 | ||||||||||||
Changes in fair value recognized during the period relating to assets still held at September 30, 2013 | $ | (344 | ) | $ | 21,558 | $ | (1,781 | ) | ||||||||||||
-1 | For the purpose of this table, the interest rate lock asset and liability positions are shown net. | |||||||||||||||||||
Excess servicing | ||||||||||||||||||||
spread financing | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Liability: | ||||||||||||||||||||
Balance, December 31, 2012 | $ | — | ||||||||||||||||||
Proceeds received from excess servicing spread financing | 2,828 | |||||||||||||||||||
Repayments | — | |||||||||||||||||||
Changes in fair value included in income | 29 | |||||||||||||||||||
Balance, September 30, 2013 | $ | 2,857 | ||||||||||||||||||
Changes in fair value recognized during the period relating to liability still held at September 30, 2013 | $ | 29 | ||||||||||||||||||
The Company had no transfers in or out among the levels other than transfers of IRLCs to mortgage loans held for sale at fair value upon purchase or funding of the respective mortgage loans. | ||||||||||||||||||||
Net gains (losses) from changes in fair values included in earnings for financial statement items carried at fair value as a result of management’s election of the fair value option are summarized below: | ||||||||||||||||||||
Quarter ended September 30, | ||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
Net gains on mortgage | Net | Total | Net gains on mortgage | Net | Total | |||||||||||||||
loans held for sale at | servicing | loans held for sale at | servicing | |||||||||||||||||
fair value | fees | fair value | fees | |||||||||||||||||
(in thousands) | ||||||||||||||||||||
Assets: | ||||||||||||||||||||
Mortgage loans held for sale at fair value | $ | 63,076 | $ | — | $ | 63,076 | $ | (6,060 | ) | $ | — | $ | (6,060 | ) | ||||||
Mortgage servicing rights at fair value | — | (11,535 | ) | (11,535 | ) | — | (1,575 | ) | (1,575 | ) | ||||||||||
$ | 63,076 | $ | (11,535 | ) | $ | 51,541 | $ | (6,060 | ) | $ | (1,575 | ) | $ | (7,635 | ) | |||||
Liabilities: | ||||||||||||||||||||
Excess servicing spread financing at fair value payable to PennyMac Mortgage Investment Trust | $ | — | $ | 9,539 | $ | 9,539 | $ | — | $ | (29 | ) | $ | (29 | ) | ||||||
Mortgage servicing liabilities | — | 1,730 | 1,730 | — | — | — | ||||||||||||||
$ | — | $ | 11,269 | $ | 11,269 | $ | — | $ | (29 | ) | $ | (29 | ) | |||||||
Nine months ended September 30, | ||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
Net gains on mortgage | Net | Total | Net gains on mortgage | Net | Total | |||||||||||||||
loans held for sale at | servicing | loans held for sale at | servicing | |||||||||||||||||
fair value | fees | fair value | fees | |||||||||||||||||
(in thousands) | ||||||||||||||||||||
Assets: | ||||||||||||||||||||
Mortgage loans held for sale at fair value | $ | 180,971 | $ | — | $ | 180,971 | $ | 12,428 | $ | — | $ | 12,428 | ||||||||
Mortgage servicing rights at fair value | — | (34,255 | ) | (34,255 | ) | — | (1,781 | ) | (1,781 | ) | ||||||||||
$ | 180,971 | $ | (34,255 | ) | $ | 146,716 | $ | 12,428 | $ | (1,781 | ) | $ | 10,647 | |||||||
Liabilities: | ||||||||||||||||||||
Excess servicing spread financing at fair value payable to PennyMac Mortgage Investment Trust | $ | — | $ | 24,392 | $ | 24,392 | $ | — | $ | (29 | ) | $ | (29 | ) | ||||||
Mortgage servicing liabilities | — | (4,091 | ) | (4,091 | ) | — | — | — | ||||||||||||
$ | — | $ | 20,301 | $ | 20,301 | $ | — | $ | (29 | ) | $ | (29 | ) | |||||||
Following are the fair value and related principal amounts due upon maturity of assets and liabilities accounted for under the fair value option: | ||||||||||||||||||||
September 30, 2014 | ||||||||||||||||||||
Fair | Principal amount | Difference | ||||||||||||||||||
value | due upon maturity | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Mortgage loans held for sale: | ||||||||||||||||||||
Current through 89 days delinquent | $ | 987,985 | $ | 935,173 | $ | 52,812 | ||||||||||||||
90 days or more delinquent: | ||||||||||||||||||||
Not in foreclosure | 188,908 | 190,910 | (2,002 | ) | ||||||||||||||||
In foreclosure | 83,098 | 83,313 | (215 | ) | ||||||||||||||||
$ | 1,259,991 | $ | 1,209,396 | $ | 50,595 | |||||||||||||||
December 31, 2013 | ||||||||||||||||||||
Fair | Principal amount | Difference | ||||||||||||||||||
value | due upon maturity | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Mortgage loans held for sale: | ||||||||||||||||||||
Current through 89 days delinquent | $ | 524,665 | $ | 504,705 | $ | 19,960 | ||||||||||||||
90 days or more delinquent: | ||||||||||||||||||||
Not in foreclosure | 5,567 | 5,479 | 88 | |||||||||||||||||
In foreclosure | 772 | 660 | 112 | |||||||||||||||||
$ | 531,004 | $ | 510,844 | $ | 20,160 | |||||||||||||||
Financial Statement Items Measured at Fair Value on a Nonrecurring Basis | ||||||||||||||||||||
Following is a summary of financial statement items that are measured at fair value on a nonrecurring basis: | ||||||||||||||||||||
September 30, 2014 | ||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||
(in thousands) | ||||||||||||||||||||
Mortgage servicing rights at lower of amortized cost or fair value | $ | — | $ | — | $ | 240,403 | $ | 240,403 | ||||||||||||
$ | — | $ | — | $ | 240,403 | $ | 240,403 | |||||||||||||
December 31, 2013 | ||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||
(in thousands) | ||||||||||||||||||||
Mortgage servicing rights at lower of amortized cost or fair value | $ | — | $ | — | $ | 136,690 | $ | 136,690 | ||||||||||||
$ | — | $ | — | $ | 136,690 | $ | 136,690 | |||||||||||||
The following table summarizes the total gains (losses) on assets measured at fair values on a nonrecurring basis: | ||||||||||||||||||||
Quarter ended September 30, | Nine months ended September 30, | |||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||
(in thousands) | ||||||||||||||||||||
Mortgage servicing rights at lower of amortized cost or fair value | $ | (925 | ) | $ | (1,164 | ) | $ | (5,132 | ) | $ | (521 | ) | ||||||||
$ | (925 | ) | $ | (1,164 | ) | $ | (5,132 | ) | $ | (521 | ) | |||||||||
Fair Value of Financial Instruments Carried at Amortized Cost | ||||||||||||||||||||
The Company’s Cash as well as its Mortgage loans sold under agreements to repurchase, Note payable, Carried Interest due from Investment Funds, and amounts receivable from and payable to the Advised Entities are carried at amortized cost. | ||||||||||||||||||||
Cash is measured using a “Level 1” input. The Company’s borrowings carried at amortized cost do not have observable inputs and the fair value is measured using management’s estimate of fair value, where the inputs into the determination of fair value require significant management judgment or estimation. The Company has classified these financial instruments as “Level 3” financial statement items as of September 30, 2014 and December 31, 2013 due to the lack of observable inputs to estimate the fair value. | ||||||||||||||||||||
Management has concluded that the carrying value of the Carried Interest due from Investment Funds approximates its fair value as the balance represents the amount distributable to the Company at the balance sheet date assuming liquidation of the Investment Funds. Management has concluded that the fair value of the Note payable approximates the agreements’ carrying value due to the agreement’s short term and variable interest rate. The Company has classified these financial instruments as “Level 3” financial statement items due to the Company’s reliance on unobservable inputs to estimate these instruments’ fair value. | ||||||||||||||||||||
The Company also carries the receivables from and payables to the Advised Entities at cost. Management has concluded that the fair value of such balances approximates the carrying value due to the short terms of such balances. | ||||||||||||||||||||
Valuation Techniques and Assumptions | ||||||||||||||||||||
Most of the Company’s financial assets and its ESS liability are carried at fair value with changes in fair value recognized in current period income. Certain of the Company’s financial assets and all of its MSRs and ESS are “Level 3” financial statement items which require the use of unobservable inputs that are significant to the estimation of the items’ fair values. Unobservable inputs reflect the Company’s own assumptions about the factors that market participants use in pricing an asset or liability, and are based on the best information available under the circumstances. | ||||||||||||||||||||
Due to the difficulty in estimating the fair values of “Level 3” financial statement items, management has assigned the estimating of fair value of these assets to specialized staff and subjects the valuation process to significant executive management oversight. The Company’s Financial Analysis and Valuation group (the “FAV group”), which is responsible for valuing and monitoring the Company’s investment portfolios and maintenance of its valuation policies and procedures, estimates the fair values of “Level 3” financial instruments and MSRs. | ||||||||||||||||||||
The FAV group reports to the Company’s senior management valuation committee, which oversees and approves the valuations. The FAV group monitors the models used for valuation of the Company’s “Level 3” financial statement items, including the models’ performance versus actual results, and reports those results to the Company’s senior management valuation committee. The Company’s senior management valuation committee includes PFSI’s chief executive, financial, operating, credit and asset/liability management officers. | ||||||||||||||||||||
The FAV group is responsible for reporting to the Company’s senior management valuation committee on a monthly basis on the changes in the valuation of the portfolio, including major factors affecting the valuation and any changes in model methods and inputs. To assess the reasonableness of its valuations, the FAV group presents an analysis of the effect on the valuation of changes to the significant inputs to the models. | ||||||||||||||||||||
Following is a description of the techniques and inputs used in estimating the fair values of “Level 2” and “Level 3” fair value financial statement items: | ||||||||||||||||||||
Mortgage Loans Held for Sale | ||||||||||||||||||||
A substantial portion of the Company’s mortgage loans held for sale at fair value are salable into active markets and are therefore categorized as “Level 2” fair value financial statement items and their fair values are determined using their quoted market or contracted price or market price equivalent. | ||||||||||||||||||||
The Company may purchase certain delinquent government guaranteed or insured mortgage loans from Ginnie Mae guaranteed pools in its servicing portfolio. The Company’s right to purchase such loans arises as the result of the borrower’s failure to make payments for three consecutive months preceding the month of repurchase by the Company and provides an alternative to the Company’s obligation to continue advancing principal and interest at the coupon rate of the related Ginnie Mae security. To the extent such loans (“early buyout loans”) have not become salable into another Ginnie Mae guaranteed security by becoming current either through the borrower’s reperformance or through completion of a modification of the loan’s terms, the Company measures such loans using “Level 3” inputs. Certain of the Company’s mortgage loans may become non salable into active markets due to identification of a defect by the Company or to the repurchase of a mortgage loan with an identified defect. Because such mortgage loans are generally not salable into active mortgage markets, they are classified as “Level 3” financial statement items. | ||||||||||||||||||||
The significant unobservable inputs used in the fair value measurement of the Company’s “Level 3” mortgage loans held for sale at fair value are discount rates, home price projections, voluntary prepayment speeds and default speeds. Significant changes in any of those inputs in isolation could result in a significant change to the loans’ fair value measurement. Increases in home price projections are generally accompanied by an increase in voluntary prepayment speeds. | ||||||||||||||||||||
Following is a quantitative summary of key “Level 3” inputs used in the valuation of mortgage loans held for sale at fair value: | ||||||||||||||||||||
Key inputs | September 30, 2014 | December 31, 2013 | ||||||||||||||||||
Discount rate | ||||||||||||||||||||
Range | 2.2% - 7.8% | 7.8% - 13.4% | ||||||||||||||||||
Weighted average | 2.30% | 8.90% | ||||||||||||||||||
Twelve-month projected housing price index change | ||||||||||||||||||||
Range | 0.2% - 8.2% | 4.5% - 4.7% | ||||||||||||||||||
Weighted average | 4.50% | 4.60% | ||||||||||||||||||
Prepayment/resale speed (1) | ||||||||||||||||||||
Range | 7.6% - 14.8% | 1.6% - 5.1% | ||||||||||||||||||
Weighted average | 14.70% | 4.40% | ||||||||||||||||||
Total prepayment speed (2) | ||||||||||||||||||||
Range | 7.6% - 36.8% | 2.9% - 5.2% | ||||||||||||||||||
Weighted average | 35.20% | 4.70% | ||||||||||||||||||
-1 | Prepayment/resale speed is measured using Life Voluntary Conditional Prepayment Rate (“CPR”). | |||||||||||||||||||
-2 | Total prepayment speed is measured using Life Total CPR. | |||||||||||||||||||
Changes in fair value attributable to changes in instrument specific credit risk are measured by the change in the respective loan’s delinquency status at period end from the later of the beginning of the period or acquisition date. Changes in fair value of mortgage loans held for sale are included in Net gains on mortgage loans held for sale at fair value in the consolidated statements of income. | ||||||||||||||||||||
Derivative Financial Instruments | ||||||||||||||||||||
The Company categorizes IRLCs as a “Level 3” financial statement item. The Company estimates the fair value of an IRLC based on quoted Agency mortgage-backed securities (“MBS”) prices, its estimate of the fair value of the MSRs it expects to receive in the sale of the loans and the probability that the mortgage loan will fund or be purchased (the “pull-through rate”). | ||||||||||||||||||||
The significant unobservable inputs used in the fair value measurement of the Company’s IRLCs are the pull-through rate and the MSR component of the Company’s estimate of the value of the mortgage loans it has committed to purchase. Significant changes in the pull-through rate or the MSR component of the IRLCs, in isolation, could result in significant changes in fair value measurement. The financial effects of changes in these assumptions are generally inversely correlated as increasing interest rates have a positive effect on the fair value of the MSR component of IRLC value, but increase the pull-through rate for loans that have decreased in fair value. | ||||||||||||||||||||
Following is a quantitative summary of key unobservable inputs used in the valuation of IRLCs: | ||||||||||||||||||||
Key inputs | September 30, 2014 | December 31, 2013 | ||||||||||||||||||
Pull-through rate | ||||||||||||||||||||
Range | 61.2% - 99.0% | 62.1% - 98.1% | ||||||||||||||||||
Weighted average | 79.70% | 81.70% | ||||||||||||||||||
Mortgage servicing rights value expressed as: | ||||||||||||||||||||
Servicing fee multiple | ||||||||||||||||||||
Range | 1.7 - 5.0 | 2.0 - 5.0 | ||||||||||||||||||
Weighted average | 3.8 | 3.7 | ||||||||||||||||||
Percentage of unpaid principal balance | ||||||||||||||||||||
Range | 0.4% - 2.5% | 0.4% - 2.4% | ||||||||||||||||||
Weighted average | 1.20% | 0.90% | ||||||||||||||||||
The remaining derivative financial instruments held or issued by the Company are categorized as “Level 2” financial statement items. The Company estimates the fair value of commitments to sell and purchase loans based on quoted MBS prices. The Company estimates the fair value of MBS options based on observed interest rate volatilities in the MBS market. Changes in fair value of IRLCs and related hedging derivatives are included in Net gains on mortgage loans held for sale at fair value in the consolidated statements of income. | ||||||||||||||||||||
Mortgage Servicing Rights | ||||||||||||||||||||
MSRs are categorized as “Level 3” financial statement items. The Company uses a discounted cash flow approach to estimate the fair value of MSRs. This approach consists of projecting net servicing cash flows discounted at a rate that management believes market participants would use in their determinations of fair value. The key inputs used in the estimation of the fair value of MSRs include prepayment rates of the underlying loans, the applicable discount rate or pricing spread, and the per-loan annual cost to service the respective mortgage loans. Changes in the fair value of MSRs are included in Net servicing fees—Amortization, impairment and change in estimated fair value of mortgage servicing rights in the consolidated statements of income. | ||||||||||||||||||||
Following are the key inputs used in determining the fair value of MSRs at the time of initial recognition, excluding MSR purchases: | ||||||||||||||||||||
Quarter ended September 30, | ||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
Fair | Amortized | Fair | Amortized | |||||||||||||||||
value | cost | value | cost | |||||||||||||||||
(Amount recognized and unpaid princiapl balance of underlying mortgage loans in | ||||||||||||||||||||
thousands) | ||||||||||||||||||||
MSR and pool characteristics: | ||||||||||||||||||||
Amount recognized | $6,381 | $54,819 | $4,157 | $55,981 | ||||||||||||||||
Unpaid principal balance of underlying mortgage loans | $515,866 | $4,498,619 | $315,869 | $4,120,962 | ||||||||||||||||
Weighted-average servicing fee rate (in basis points) | 34 | 31 | 31 | 30 | ||||||||||||||||
Inputs: | ||||||||||||||||||||
Pricing spread (1) | ||||||||||||||||||||
Range | 8.0% - 15.4% | 7.5% - 15.2% | 7.4% - 13.1% | 5.4% - 15.9% | ||||||||||||||||
Weighted average | 11.60% | 10.90% | 9.90% | 8.20% | ||||||||||||||||
Annual total prepayment speed (2) | ||||||||||||||||||||
Range | 7.6% - 42.3% | 7.6% - 47.8% | 8.8% - 17.2% | 8.5% - 14.7% | ||||||||||||||||
Weighted average | 9.70% | 8.30% | 9.20% | 8.80% | ||||||||||||||||
Life (in years) | ||||||||||||||||||||
Range | 1.6 – 7.3 | 1.4 – 7.3 | 3.6 – 7.0 | 2.9 – 6.9 | ||||||||||||||||
Weighted average | 6.7 | 7.1 | 6.9 | 6.7 | ||||||||||||||||
Per-loan annual cost of servicing | ||||||||||||||||||||
Range | $54 – $93 | $54 – $93 | $68 – $120 | $68 – $120 | ||||||||||||||||
Weighted average | $83 | $85 | $101 | $104 | ||||||||||||||||
-1 | Pricing spread represents a margin that is applied to a reference interest rate’s forward rate curve to develop periodic discount rates. The Company applies a pricing spread to the United States Dollar London Interbank Offering Rate (“LIBOR”) curve for purposes of discounting cash flows relating to MSRs acquired as proceeds from the sale of mortgage loans. | |||||||||||||||||||
-2 | Prepayment speed is measured using Life Total CPR. | |||||||||||||||||||
Nine months ended September 30, | ||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
Fair | Amortized | Fair | Amortized | |||||||||||||||||
value | cost | value | cost | |||||||||||||||||
(Amount recognized and unpaid principal balance of underlying mortgage loans in | ||||||||||||||||||||
thousands) | ||||||||||||||||||||
MSR and pool characteristics: | ||||||||||||||||||||
Amount recognized | $20,647 | $127,727 | $4,177 | $150,175 | ||||||||||||||||
Unpaid principal balance of underlying mortgage loans | $1,627,529 | $10,672,629 | $318,066 | $12,350,104 | ||||||||||||||||
Weighted-average servicing fee rate (in basis points) | 33 | 31 | 31 | 29 | ||||||||||||||||
Inputs: | ||||||||||||||||||||
Pricing spread (1) | ||||||||||||||||||||
Range | 8.0% - 16.2% | 6.8% - 15.2% | 7.4% - 13.1% | 5.4% - 15.9% | ||||||||||||||||
Weighted average | 11.40% | 10.80% | 9.90% | 8.20% | ||||||||||||||||
Annual total prepayment speed (2) | ||||||||||||||||||||
Range | 7.6% - 42.3% | 7.6% - 47.8% | 8.8% - 17.2% | 8.5% - 18.5% | ||||||||||||||||
Weighted average | 9.00% | 8.20% | 9.20% | 8.80% | ||||||||||||||||
Life (in years) | ||||||||||||||||||||
Range | 1.6 – 7.5 | 1.4 – 7.5 | 3.6 – 7.0 | 2.9 – 6.9 | ||||||||||||||||
Weighted average | 7 | 7.1 | 6.9 | 6.7 | ||||||||||||||||
Per-loan annual cost of servicing | ||||||||||||||||||||
Range | $53 – $100 | $53 – $100 | $68 – $120 | $68 – $120 | ||||||||||||||||
Weighted average | $89 | $90 | $101 | $102 | ||||||||||||||||
(1)Pricing spread represents a margin that is applied to a reference interest rate’s forward rate curve to develop periodic discount rates. The Company applies a pricing spread to the United States Dollar LIBOR curve for purposes of discounting cash flows relating to MSRs acquired as proceeds from the sale of mortgage loans. | ||||||||||||||||||||
(2)Prepayment speed is measured using Life Total CPR. | ||||||||||||||||||||
Following is a quantitative summary of key inputs used in the valuation of the Company’s MSRs at period end and the effect on the estimated fair value from adverse changes in those assumptions (weighted averages are based upon UPB): | ||||||||||||||||||||
Purchased MSRs Backed by Distressed Mortgage Loans | ||||||||||||||||||||
During the quarter ended June 30, 2014, the Company sold a portfolio of purchased MSRs backed by distressed mortgage loans to a non-affiliated entity. Following are the key inputs used in determining the fair value of such MSRs as of December 31, 2013: | ||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||
Fair | Amortized | |||||||||||||||||||
value | cost | |||||||||||||||||||
(Carrying value, unpaid principal balance of underlying mortgage | ||||||||||||||||||||
loans and effect on fair value amounts in thousands) | ||||||||||||||||||||
MSR and pool characteristics: | ||||||||||||||||||||
Carrying value | $10,129 | — | ||||||||||||||||||
Unpaid principal balance of underlying mortgage loans | $969,794 | — | ||||||||||||||||||
Weighted-average note interest rate | 5.80% | — | ||||||||||||||||||
Weighted-average servicing fee rate (in basis points) | 50 | — | ||||||||||||||||||
Inputs: | ||||||||||||||||||||
Discount rate | ||||||||||||||||||||
Range | 15.3% – 15.3% | — | ||||||||||||||||||
Weighted average | 15.30% | — | ||||||||||||||||||
Effect on fair value of: | ||||||||||||||||||||
5% adverse change | ($251) | — | ||||||||||||||||||
10% adverse change | ($490) | — | ||||||||||||||||||
20% adverse change | ($937) | — | ||||||||||||||||||
Life (in years) | ||||||||||||||||||||
Range | 5.0 - 5.0 | — | ||||||||||||||||||
Weighted average | 5 | |||||||||||||||||||
Prepayment speed (1) | ||||||||||||||||||||
Range | 11.4% – 11.4% | — | ||||||||||||||||||
Weighted average | 11.40% | — | ||||||||||||||||||
Effect on fair value of: | ||||||||||||||||||||
5% adverse change | ($231) | — | ||||||||||||||||||
10% adverse change | ($456) | — | ||||||||||||||||||
20% adverse change | ($898) | — | ||||||||||||||||||
Per-loan annual cost of servicing | ||||||||||||||||||||
Range | $218 – $218 | — | ||||||||||||||||||
Weighted average | $218 | — | ||||||||||||||||||
Effect on fair value of: | ||||||||||||||||||||
5% adverse change | ($197) | — | ||||||||||||||||||
10% adverse change | ($393) | — | ||||||||||||||||||
20% adverse change | ($787) | — | ||||||||||||||||||
-1 | Prepayment speed is measured using Life Voluntary CPR. | |||||||||||||||||||
All Other MSRs | ||||||||||||||||||||
September 30, 2014 | December 31, 2013 | |||||||||||||||||||
Fair | Amortized | Fair | Amortized | |||||||||||||||||
value | cost | value | cost | |||||||||||||||||
(Carrying value, unpaid principal balance of underlying mortgage loans and effect on | ||||||||||||||||||||
fair value amounts in thousands) | ||||||||||||||||||||
MSR and pool characteristics: | ||||||||||||||||||||
Carrying value | $319,149 | $358,264 | $214,784 | $258,751 | ||||||||||||||||
Unpaid principal balance of underlying mortgage loans | $30,200,789 | $30,664,622 | $22,469,179 | $22,499,847 | ||||||||||||||||
Weighted-average note interest rate | 4.27% | 3.80% | 4.48% | 3.65% | ||||||||||||||||
Weighted-average servicing fee rate (in basis points) | 31 | 29 | 32 | 29 | ||||||||||||||||
Inputs: | ||||||||||||||||||||
Pricing spread (1) | ||||||||||||||||||||
Range | 2.9% – 20.1% | 6.3% – 15.4% | 2.9% – 18.0% | 6.3% – 14.5% | ||||||||||||||||
Weighted average | 9.00% | 10.00% | 7.50% | 8.70% | ||||||||||||||||
Effect on fair value of: | ||||||||||||||||||||
5% adverse change | ($5,523) | ($8,137) | ($3,551) | ($5,312) | ||||||||||||||||
10% adverse change | ($10,850) | ($15,943) | ($6,900) | ($10,395) | ||||||||||||||||
20% adverse change | ($20,961) | ($30,637) | ($13,305) | ($20,039) | ||||||||||||||||
Average life (in years) | ||||||||||||||||||||
Range | 0.4 – 8.2 | 1.5 – 7.3 | 0.1 – 14.4 | 1.5 – 7.3 | ||||||||||||||||
Weighted average | 5.9 | 6.8 | 6.2 | 7 | ||||||||||||||||
Prepayment speed (2) | ||||||||||||||||||||
Range | 7.6% – 57.6% | 7.6% – 45.2% | 7.8% – 50.8% | 7.6% – 42.5% | ||||||||||||||||
Weighted average | 10.70% | 8.40% | 9.70% | 8.00% | ||||||||||||||||
Effect on fair value of: | ||||||||||||||||||||
5% adverse change | ($6,911) | ($6,313) | ($4,622) | ($4,615) | ||||||||||||||||
10% adverse change | ($13,564) | ($12,441) | ($9,073) | ($9,097) | ||||||||||||||||
20% adverse change | ($26,151) | ($24,173) | ($17,500) | ($17,684) | ||||||||||||||||
Per-loan annual cost of servicing | ||||||||||||||||||||
Range | $62 – $115 | $62 – $79 | $68 – $115 | $68 – $100 | ||||||||||||||||
Weighted average | $81 | $78 | $87 | $99 | ||||||||||||||||
Effect on fair value of: | ||||||||||||||||||||
5% adverse change | ($3,041) | ($2,706) | ($2,817) | ($2,609) | ||||||||||||||||
10% adverse change | ($6,082) | ($5,411) | ($5,633) | ($5,217) | ||||||||||||||||
20% adverse change | ($12,165) | ($10,822) | ($11,266) | ($10,434) | ||||||||||||||||
-1 | Pricing spread represents a margin that is applied to a reference interest rate’s forward curve to develop periodic discount rates. The Company applies a pricing spread to the United States Dollar LIBOR curve for purposes of discounting cash flows relating to MSRs acquired as proceeds from the sale of mortgage loans and purchased MSRs not backed by pools of distressed mortgage loans. | |||||||||||||||||||
-2 | Prepayment speed is measured using Life Total CPR. | |||||||||||||||||||
The preceding sensitivity analyses are limited in that they were performed at a particular point in time; only contemplate the movements in the indicated variables; do not incorporate changes to other variables; are subject to the accuracy of various models and assumptions used; and do not incorporate other factors that would affect the Company’s overall financial performance in such scenarios, including operational adjustments made by management to account for changing circumstances. For these reasons, the preceding estimates should not be viewed as earnings forecasts. | ||||||||||||||||||||
Excess Servicing Spread Financing at Fair Value | ||||||||||||||||||||
The Company categorizes ESS financing as a “Level 3” financial statement item. The Company uses a discounted cash flow approach to estimate the fair value of ESS financing. The key inputs used in the estimation of ESS financing include pricing spread and prepayment speed. Significant changes to any of those inputs in isolation could result in a significant change in the ESS financing fair value measurement. Changes in these key assumptions are not necessarily directly related. | ||||||||||||||||||||
ESS is generally subject to fair value increases when mortgage interest rates increase. Increasing mortgage interest rates normally slow mortgage refinancing activity. Decreased refinancing activity increases the life of the loans underlying the ESS, thereby increasing ESS financing’s fair value and the liability owed to PMT. Increases in the fair value of ESS financing increase Amortization, impairment and change in estimated fair value of mortgage servicing rights. | ||||||||||||||||||||
Interest expense for ESS financing is accrued using the interest method based upon the expected cash flows from the ESS through the expected life of the underlying mortgage loans. Other changes in fair value are recorded in Amortization, impairment and change in estimated fair value of mortgage servicing rights. | ||||||||||||||||||||
Following are the key inputs used in determining the fair value of ESS financing: | ||||||||||||||||||||
Key inputs | September 30, | December 31, | ||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
Unpaid principal balance of underlying loans (in thousands) | $27,702,102 | $20,512,659 | ||||||||||||||||||
Average servicing fee rate (in basis points) | 31 | 32 | ||||||||||||||||||
Average excess servicing spread (in basis points) | 16 | 16 | ||||||||||||||||||
Pricing spread (1) | ||||||||||||||||||||
Range | 1.7% - 11.8% | 2.8% - 14.4% | ||||||||||||||||||
Weighted average | 5.00% | 5.40% | ||||||||||||||||||
Average life (in years) | ||||||||||||||||||||
Range | 0.4 - 7.3 | 0.9 - 8.0 | ||||||||||||||||||
Weighted average | 5.8 | 6.1 | ||||||||||||||||||
Annualized prepayment speed (2) | ||||||||||||||||||||
Range | 7.6% - 72.4% | 7.7% - 48.6% | ||||||||||||||||||
Weighted average | 10.80% | 9.70% | ||||||||||||||||||
-1 | Pricing spread represents a margin that is applied to a reference interest rate’s forward rate curve to develop periodic discount rates. The Company applies a pricing spread to the United States LIBOR curve for purposes of discounting cash flows relating to ESS. | |||||||||||||||||||
-2 | Prepayment speed is measured using Life Total CPR. | |||||||||||||||||||
Mortgage_Loans_Held_for_Sale_a
Mortgage Loans Held for Sale at Fair Value | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Mortgage Loans Held for Sale at Fair Value | ' | |||||||
Mortgage Loans Held for Sale at Fair Value | ' | |||||||
Note 8—Mortgage Loans Held for Sale at Fair Value | ||||||||
Mortgage loans held for sale at fair value include the following: | ||||||||
September 30, | December 31, | |||||||
2014 | 2013 | |||||||
(in thousands) | ||||||||
Government-insured or guaranteed | $ | 895,952 | $ | 482,066 | ||||
Conventional conforming | 76,119 | 45,005 | ||||||
Jumbo | 1,864 | — | ||||||
Mortgage loans purchased from Ginnie Mae pools serviced by the Company | 282,572 | — | ||||||
Mortgage loans repurchased pursuant to representations and warranties | 3,484 | 3,933 | ||||||
$ | 1,259,991 | $ | 531,004 | |||||
Fair value of mortgage loans pledged to secure mortgage loans sold under agreements to repurchase | $ | 1,087,425 | $ | 512,350 | ||||
Fair value of mortgage loans pledged to secure mortgage loan participation and sale agreement | $ | 146,798 | $ | — | ||||
Derivative_Financial_Instrumen
Derivative Financial Instruments | 9 Months Ended | |||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||
Derivative Financial Instruments | ' | |||||||||||||||||
Derivative Financial Instruments | ' | |||||||||||||||||
Note 9—Derivative Financial Instruments | ||||||||||||||||||
The Company is exposed to fair value risk relative to its mortgage loans held for sale as well as to its IRLCs and MSRs. The Company bears fair value risk from the time an IRLC is made to PMT or a loan applicant to the time the mortgage loan is sold. The Company is exposed to loss in fair value of its IRLCs and mortgage loans held for sale when mortgage rates increase. The Company is exposed to loss in fair value of its MSRs when interest rates decrease. | ||||||||||||||||||
The Company engages in interest rate risk management activities in an effort to reduce the variability of earnings caused by changes in market interest rates. To manage this fair value risk resulting from interest rate risk, the Company uses derivative financial instruments acquired with the intention of reducing the risk that changes in market interest rates will result in unfavorable changes in the fair value of the Company’s IRLCs, inventory of mortgage loans held for sale and MSRs. | ||||||||||||||||||
The Company does not use derivative financial instruments for purposes other than in support of its risk management activities other than IRLCs, which are generated in the normal course of business when the Company commits to purchase or originate mortgage loans held for sale. The Company records all derivative financial instruments at fair value and records changes in fair value in current period income. | ||||||||||||||||||
The Company had the following derivative financial instruments recorded on its consolidated balance sheets: | ||||||||||||||||||
September 30, 2014 | December 31, 2013 | |||||||||||||||||
Fair value | Fair value | |||||||||||||||||
Instrument | Notional | Derivative | Derivative | Notional | Derivative | Derivative | ||||||||||||
amount | assets | liabilities | amount | assets | liabilities | |||||||||||||
(in thousands) | ||||||||||||||||||
Derivatives not designated as hedging instruments | ||||||||||||||||||
Free-standing derivatives: | ||||||||||||||||||
Interest rate lock commitments | 1,740,376 | $ | 23,691 | $ | 1,055 | 971,783 | $ | 8,964 | $ | 2,203 | ||||||||
Forward purchase contracts | 2,804,597 | 5,686 | 645 | 1,418,527 | 416 | 6,542 | ||||||||||||
Forward sales contracts | 4,299,329 | 1,273 | 9,655 | 2,659,000 | 18,762 | 504 | ||||||||||||
MBS put options | 430,000 | 625 | — | 185,000 | 665 | — | ||||||||||||
MBS call options | 50,000 | 227 | — | 105,000 | 91 | — | ||||||||||||
Put options on Eurodollar futures | 795,000 | 1,713 | — | — | — | |||||||||||||
Call options on Eurodollar futures | 450,000 | 1,050 | — | — | — | |||||||||||||
Total derivatives before netting | 34,265 | 11,355 | 28,898 | 9,249 | ||||||||||||||
Netting | (5,865 | ) | (6,915 | ) | (7,358 | ) | (6,787 | ) | ||||||||||
$ | 28,400 | $ | 4,440 | $ | 21,540 | $ | 2,462 | |||||||||||
The following table summarizes the notional value activity for derivative contracts used in the Company’s hedging activities: | ||||||||||||||||||
Quarter ended September 30, 2014 | ||||||||||||||||||
Period/Instrument | Balance | Additions | Dispositions/ | Balance | ||||||||||||||
beginning | expirations | end of period | ||||||||||||||||
of period | ||||||||||||||||||
(in thousands) | ||||||||||||||||||
Forward purchase contracts | 2,789,277 | 12,668,171 | (12,652,851 | ) | 2,804,597 | |||||||||||||
Forward sales contracts | 4,617,100 | 17,409,056 | (17,726,827 | ) | 4,299,329 | |||||||||||||
MBS put options | 225,000 | 505,000 | (300,000 | ) | 430,000 | |||||||||||||
MBS call options | 95,000 | 50,000 | (95,000 | ) | 50,000 | |||||||||||||
Put options on Eurodollar futures | 377,500 | 1,320,000 | (902,500 | ) | 795,000 | |||||||||||||
Call options on Eurodollar futures | 170,000 | 675,000 | (395,000 | ) | 450,000 | |||||||||||||
Treasury future purchase contracts | — | 65,600 | (65,600 | ) | — | |||||||||||||
Treasury future sale contracts | — | 78,200 | (78,200 | ) | — | |||||||||||||
Call options on futures | — | 35,000 | (35,000 | ) | — | |||||||||||||
Quarter ended September 30, 2013 | ||||||||||||||||||
Period/Instrument | Balance | Additions | Dispositions/ | Balance | ||||||||||||||
beginning | expirations | end | ||||||||||||||||
of period | of period | |||||||||||||||||
(in thousands) | ||||||||||||||||||
Forward purchase contracts | 2,071,590 | 13,386,366 | (13,877,522 | ) | 1,580,434 | |||||||||||||
Forward sales contracts | 4,226,940 | 18,727,428 | (19,867,479 | ) | 3,086,889 | |||||||||||||
MBS put options | 260,000 | 50,000 | (310,000 | ) | — | |||||||||||||
MBS call options | 625,000 | 300,000 | (925,000 | ) | — | |||||||||||||
Nine months ended September 30, 2014 | ||||||||||||||||||
Period/Instrument | Balance | Additions | Dispositions/ | Balance | ||||||||||||||
beginning | expirations | end of period | ||||||||||||||||
of period | ||||||||||||||||||
(in thousands) | ||||||||||||||||||
Forward purchase contracts | 1,418,527 | 30,178,842 | (28,792,772 | ) | 2,804,597 | |||||||||||||
Forward sales contracts | 2,659,000 | 43,791,245 | (42,150,916 | ) | 4,299,329 | |||||||||||||
MBS put options | 185,000 | 1,145,000 | (900,000 | ) | 430,000 | |||||||||||||
MBS call options | 105,000 | 590,000 | (645,000 | ) | 50,000 | |||||||||||||
Put options on Eurodollar futures | — | 2,022,500 | (1,227,500 | ) | 795,000 | |||||||||||||
Call options on Eurodollar futures | — | 1,055,000 | (605,000 | ) | 450,000 | |||||||||||||
Treasury future purchase contracts | — | 143,900 | (143,900 | ) | — | |||||||||||||
Treasury future sale contracts | — | 165,600 | (165,600 | ) | — | |||||||||||||
Call options on futures | — | 35,000 | (35,000 | ) | — | |||||||||||||
Nine months ended September 30, 2013 | ||||||||||||||||||
Period/Instrument | Balance | Additions | Dispositions/ | Balance | ||||||||||||||
beginning | expirations | end | ||||||||||||||||
of period | of period | |||||||||||||||||
(in thousands) | ||||||||||||||||||
Forward purchase contracts | 1,021,981 | 35,012,198 | (34,453,745 | ) | 1,580,434 | |||||||||||||
Forward sales contracts | 2,621,948 | 51,199,986 | (50,735,045 | ) | 3,086,889 | |||||||||||||
MBS put options | 500,000 | 2,210,000 | (2,710,000 | ) | — | |||||||||||||
MBS call options | — | 2,100,000 | (2,100,000 | ) | — | |||||||||||||
The Company recorded net losses on derivative financial instruments used to hedge IRLCs and mortgage loans held for sale at fair value totaling $5.2 million and $64.0 million for the quarter and nine months ended September 30, 2014, respectively. The Company recorded net losses on derivative financial instruments totaling $4.6 million and net gains on derivative financial instruments totaling $101.9 million for the quarter and nine months ended September 30, 2013, respectively. Derivative gains and losses used to hedge IRLCs and mortgage loans held for sale at fair value are included in Net gains on mortgage loans held for sale at fair value in the Company’s consolidated statements of income. | ||||||||||||||||||
The Company recorded net losses on derivatives used to hedge fair value changes of MSRs totaling $897,000 and net gains on derivatives used to hedge fair value changes of MSRs totaling $8.3 million for the quarter and nine months ended September 30, 2014, respectively. The Company did not record any net gains or losses on derivatives used to hedge fair value changes of MSRs for the quarter ended September 30, 2013. The Company recorded net losses on derivatives used to hedge fair value changes of MSRs totaling $1.3 million for the nine months ended September 30, 2013. Gains and losses on derivative financial instruments used to hedge fair value changes of MSRs are included in Amortization, impairment and change in estimated fair value of mortgage servicing rights in the Company’s consolidated statements of income. | ||||||||||||||||||
Mortgage_Servicing_Assets_and_
Mortgage Servicing Assets and Liabilities | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
Mortgage Servicing Assets and Liabilities | ' | |||||||||||||
Mortgage Servicing Assets and Liabilities | ' | |||||||||||||
Note 10—Mortgage Servicing Assets and Liabilities | ||||||||||||||
MSRs Carried at Fair Value: | ||||||||||||||
The activity in MSRs carried at fair value is as follows: | ||||||||||||||
Quarter ended September 30, | Nine months ended September 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
(in thousands) | ||||||||||||||
Balance at beginning of period | $ | 308,599 | $ | 23,070 | $ | 224,913 | $ | 19,798 | ||||||
Additions: | ||||||||||||||
Purchases | 15,704 | 1,116 | 113,348 | 5,124 | ||||||||||
Mortgage servicing rights resulting from mortgage loan sales | 6,381 | 4,157 | 20,647 | 4,177 | ||||||||||
22,085 | 5,273 | 133,995 | 9,301 | |||||||||||
Sales | — | — | (10,916 | ) | (550 | ) | ||||||||
Change in fair value due to: | ||||||||||||||
Changes in valuation inputs or assumptions used in valuation model (1) | (544 | ) | (635 | ) | (989 | ) | 1,233 | |||||||
Other changes in fair value (2) | (10,991 | ) | (940 | ) | (27,854 | ) | (3,014 | ) | ||||||
Total change in fair value | (11,535 | ) | (1,575 | ) | (28,843 | ) | (1,781 | ) | ||||||
Balance at end of period | $ | 319,149 | $ | 26,768 | $ | 319,149 | $ | 26,768 | ||||||
-1 | Principally reflects changes in discount rates and prepayment speed assumptions, primarily due to changes in interest rates. | |||||||||||||
-2 | Represents changes due to realization of cash flows. | |||||||||||||
MSRs Carried at Lower of Amortized Cost or Fair Value: | ||||||||||||||
The activity in MSRs carried at the lower of amortized cost or fair value is summarized below: | ||||||||||||||
Quarter ended September 30, | Nine months ended September 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
(in thousands) | ||||||||||||||
Amortized cost: | ||||||||||||||
Balance at beginning of period | $ | 321,911 | $ | 179,003 | $ | 263,373 | $ | 92,155 | ||||||
Mortgage servicing rights resulting from mortgage loan sales | 54,819 | 55,981 | 127,727 | 150,175 | ||||||||||
Amortization | (8,712 | ) | (5,367 | ) | (23,082 | ) | (12,713 | ) | ||||||
Application of valuation allowance to write down mortgage servicing rights with other-than- temporary impairment | — | — | — | — | ||||||||||
Balance at end of period | 368,018 | 229,617 | 368,018 | 229,617 | ||||||||||
Valuation allowance: | ||||||||||||||
Balance at beginning of period | (8,829 | ) | (2,335 | ) | (4,622 | ) | (2,978 | ) | ||||||
Additions | (925 | ) | (1,192 | ) | (5,132 | ) | (549 | ) | ||||||
Application of valuation allowance to write down mortgage servicing rights with other-than- temporary impairment | — | — | — | — | ||||||||||
Balance at end of period | (9,754 | ) | (3,527 | ) | (9,754 | ) | (3,527 | ) | ||||||
Mortgage servicing rights, net | $ | 358,264 | $ | 226,090 | $ | 358,264 | $ | 226,090 | ||||||
Fair value of mortgage servicing rights at end of period | $ | 368,270 | $ | 239,326 | ||||||||||
The following table summarizes the Company’s estimate of future amortization of its existing MSRs. This projection was developed using the assumptions made by management in its September 30, 2014 valuation of MSRs. The assumptions underlying the following estimate will change as market conditions and portfolio composition and behavior change, causing both actual and projected amortization levels to change over time. | ||||||||||||||
Estimated MSR | ||||||||||||||
Twelve-month period ending September 30, | amortization | |||||||||||||
(in thousands) | ||||||||||||||
2015 | $ | 34,263 | ||||||||||||
2016 | 34,574 | |||||||||||||
2017 | 33,591 | |||||||||||||
2018 | 31,574 | |||||||||||||
2019 | 28,848 | |||||||||||||
Thereafter | 205,168 | |||||||||||||
$ | 368,018 | |||||||||||||
Servicing fees relating to MSRs are recorded in Net servicing fees—Loan servicing fees—From non-affiliates on the consolidated statements of income; late charges and other ancillary fees are recorded in Net servicing fees—Loan servicing fees—Ancillary and other fees on the consolidated statements of income and are summarized below: | ||||||||||||||
Quarter ended September 30, | Nine months ended September 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
(in thousands) | ||||||||||||||
Contractual servicing fees | $ | 44,647 | $ | 14,596 | $ | 124,061 | $ | 35,397 | ||||||
Ancillary and other fees | ||||||||||||||
Late charges | 1,171 | 527 | 3,021 | 1,336 | ||||||||||
Other | 361 | 140 | 785 | 374 | ||||||||||
$ | 46,179 | $ | 15,263 | $ | 127,867 | $ | 37,107 | |||||||
Mortgage Servicing Liability Carried at Fair Value: | ||||||||||||||
The activity in mortgage servicing liability carried at fair value is summarized below: | ||||||||||||||
Quarter ended | Nine months ended | |||||||||||||
September 30, 2014 | ||||||||||||||
(in thousands) | ||||||||||||||
Amortized cost: | ||||||||||||||
Balance at beginning of period | $ | 5,821 | $ | — | ||||||||||
Additions | — | — | ||||||||||||
Change in fair value | (1,730 | ) | 4,091 | |||||||||||
Balance at end of period | $ | 4,091 | $ | 4,091 | ||||||||||
-1 | Principally reflects changes in discount rates and prepayment speed inputs, primarily due to changes in interest rates. | |||||||||||||
-2 | Represents changes due to realization of cash flows. | |||||||||||||
Carried_Interest_Due_from_Inve
Carried Interest Due from Investment Funds | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
Carried Interest Due from Investment Funds | ' | |||||||||||||
Carried Interest Due from Investment Funds | ' | |||||||||||||
Note 11—Carried Interest Due from Investment Funds | ||||||||||||||
The activity in the Company’s Carried Interest due from Investment Funds is summarized as follows: | ||||||||||||||
Quarter ended September 30, | Nine months ended September 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
(in thousands) | ||||||||||||||
Balance at beginning of period | $ | 65,133 | $ | 55,322 | $ | 61,142 | $ | 47,723 | ||||||
Carried Interest recognized during the period | 1,902 | 2,812 | 5,893 | 10,411 | ||||||||||
Proceeds received during the period | — | — | — | — | ||||||||||
Balance at end of period | $ | 67,035 | $ | 58,134 | $ | 67,035 | $ | 58,134 | ||||||
The amount of the Carried Interest that will be received by the Company depends on the Investment Funds’ future performance. As a result, the amount of Carried Interest recorded by the Company at period end is subject to adjustment based on future results of the Investment Funds and may be reduced in future periods. However, the Company is not required to pay guaranteed returns to the Investment Funds and the amount of any reduction to Carried Interest will be limited to the extent of amounts previously recognized. | ||||||||||||||
Management expects the Carried Interest to be collected by the Company when the Investment Funds liquidate. The commitment period for the Investment Funds ended on December 31, 2011. The Investment Fund limited liability company and limited partnership agreements specify that the funds will continue in existence through December 31, 2016, subject to three one-year extensions by PCM at its discretion. | ||||||||||||||
Investment_in_PennyMac_Mortgag
Investment in PennyMac Mortgage Investment Trust at Fair Value | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
Investment in PennyMac Mortgage Investment Trust at Fair Value | ' | |||||||||||||
Investment in PennyMac Mortgage Investment Trust at Fair Value | ' | |||||||||||||
Note 12—Investment in PennyMac Mortgage Investment Trust at Fair Value | ||||||||||||||
Following is a summary of Change in fair value of investment in and dividends received from PennyMac Mortgage Investment Trust: | ||||||||||||||
Quarter ended September 30, | Nine months ended September 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
(in thousands) | ||||||||||||||
Dividends | $ | 46 | $ | 43 | $ | 135 | $ | 128 | ||||||
Change in fair value | (38 | ) | 122 | (115 | ) | (196 | ) | |||||||
$ | 8 | $ | 165 | $ | 20 | $ | (68 | ) | ||||||
Fair value of PennyMac Mortgage Investment Trust shares at period end | $ | 1,607 | $ | 1,701 | ||||||||||
Borrowings
Borrowings | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
Borrowings | ' | |||||||||||||
Borrowings | ' | |||||||||||||
Note 13—Borrowings | ||||||||||||||
As of September 30, 2014, the Company maintained six borrowing facilities: four facilities that provide funding for sales of mortgage loans under agreements to repurchase; one facility that provides for sales of mortgage loan participation certificates; and one note payable secured by MSRs and servicing advances made relating to certain loans in the Company’s loan servicing portfolio. | ||||||||||||||
Mortgage Loans Sold Under Agreement to Repurchase | ||||||||||||||
The borrowing facilities secured by mortgage loans held for sale are in the form of loan sale and repurchase agreements. Eligible loans are sold at advance rates based on the loan type. Interest is charged at a rate based on the buyer’s overnight cost of funds rate for one agreement and on LIBOR for the other three agreements. Loans financed under these agreements may be re-pledged by the lenders. | ||||||||||||||
Financial data pertaining to mortgage loans sold under agreements to repurchase are as follows: | ||||||||||||||
Quarter ended September 30, | Nine months ended September 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
(in thousands) | ||||||||||||||
Period end: | ||||||||||||||
Balance | $ | 929,747 | $ | 387,883 | ||||||||||
Unused amount (1) | $ | 570,253 | $ | 612,117 | ||||||||||
Weighted average interest rate | 1.73 | % | 1.82 | % | ||||||||||
Fair value of mortgage loans securing agreements to repurchase | $ | 1,087,425 | $ | 522,031 | ||||||||||
During the period: | ||||||||||||||
Average balance of mortgage loans sold under agreements to repurchase | $ | 691,730 | $ | 373,386 | $ | 505,072 | $ | 354,125 | ||||||
Weighted average interest rate (2) | 1.83 | % | 1.89 | % | 1.82 | % | 2.02 | % | ||||||
Total interest expense | $ | 4,495 | $ | 2,920 | $ | 10,506 | $ | 8,251 | ||||||
Maximum daily amount outstanding | $ | 1,010,146 | $ | 588,494 | $ | 1,010,146 | $ | 623,523 | ||||||
-1 | The amount the Company is able to borrow under loan repurchase agreements is tied to the fair value of unencumbered mortgage loans eligible to secure those agreements and the Company’s ability to fund the agreements’ margin requirements relating to the mortgage loans sold. | |||||||||||||
-2 | Excludes the effect of amortization of commitment fees totaling $1.3 million and $1.1 million for the quarters ended September 30, 2014 and 2013, respectively, and $3.5 million and $2.8 million for the nine-month periods ended September 30, 2014 and 2013, respectively. | |||||||||||||
Following is a summary of maturities of outstanding advances under repurchase agreements by maturity date: | ||||||||||||||
Remaining maturity at September 30, 2014 | Balance | |||||||||||||
(in thousands) | ||||||||||||||
Within 30 days | $ | 6,479 | ||||||||||||
Over 30 to 90 days | 922,683 | |||||||||||||
Over 90 days | 585 | |||||||||||||
$ | 929,747 | |||||||||||||
Weighted average maturity (in months) | 1.8 | |||||||||||||
The amount at risk (the fair value of the assets pledged plus the related margin deposit, less the amount advanced by the counterparty and accrued interest) relating to the Company’s mortgage loans held for sale sold under agreements to repurchase is summarized by counterparty below as of September 30, 2014: | ||||||||||||||
Counterparty | Amount at risk | Weighted average | Facility maturity | |||||||||||
maturity of advances under | ||||||||||||||
repurchase agreement | ||||||||||||||
(in thousands) | ||||||||||||||
Credit Suisse First Boston Mortgage Capital LLC | $ | 105,334 | — | October 31, 2014 | ||||||||||
Bank of America, N.A. | $ | 41,811 | December 21, 2014 | January 30, 2015 | ||||||||||
Morgan Stanley | $ | 11,080 | November 19, 2014 | June 29, 2015 | ||||||||||
Citibank, N.A. | $ | — | — | September 7, 2015 | ||||||||||
The Company is subject to margin calls during the period the agreements are outstanding and therefore may be required to repay a portion of the borrowings before the respective agreements mature if the fair value (as determined by the applicable lender) of the mortgage loans securing those agreements decreases. The Company had $1.5 million on deposit with its mortgage loan repurchase agreement counterparties at September 30, 2014 and December 31, 2013. Such amounts are included in Other assets on the consolidated balance sheets. | ||||||||||||||
Mortgage Loan Participation and Sale Agreement | ||||||||||||||
The mortgage loan participation and sale agreement is summarized below: | ||||||||||||||
September 30, | December 31, | |||||||||||||
2014 | 2013 | |||||||||||||
(in thousands) | ||||||||||||||
Mortgage loan participation and sale agreement secured by mortgage loans | $ | 142,383 | $ | — | ||||||||||
Mortgage loans pledged to secure mortgage loan participation and sale agreement | $ | 146,798 | $ | — | ||||||||||
One of the borrowing facilities secured by mortgage loans held for sale is in the form of a mortgage loan participation and sale agreement. Participation certificates, each of which represents an undivided beneficial ownership interest in a pool of mortgage loans that have been pooled with Fannie Mae, Freddie Mac or Ginnie Mae, are sold to the lender pending the securitization and sale of the resulting securities. A commitment to sell the securities resulting from the pending securitization between the Company and a non-affiliate is also assigned to the lender at the time a participation certificate is sold. | ||||||||||||||
The purchase price paid by the lender for each participation certificate is based on the trade price of the security, plus an amount of interest expected to accrue on the security to its anticipated delivery date, minus a present value adjustment, any related hedging costs and a holdback amount that is based on a percentage of the purchase price and is not required to be paid to the Company until the settlement of the security and its delivery to the lender. | ||||||||||||||
Note Payable | ||||||||||||||
The note payable is summarized below: | ||||||||||||||
September 30, | December 31, | |||||||||||||
2014 | 2013 | |||||||||||||
(in thousands) | ||||||||||||||
Note payable secured by: | ||||||||||||||
Mortgage servicing rights | $ | 154,948 | $ | 48,302 | ||||||||||
Servicing advances | — | 3,852 | ||||||||||||
$ | 154,948 | $ | 52,154 | |||||||||||
Assets pledged to secure note payable: | ||||||||||||||
Mortgage servicing rights | $ | 350,758 | $ | 258,241 | ||||||||||
Servicing advances | $ | — | $ | 5,564 | ||||||||||
The note payable matured on October 31, 2014. Interest is charged at a rate based on the lender’s overnight cost of funds. The note payable is secured by servicing advances and MSRs relating to certain loans in the Company’s servicing portfolio, and currently provides for advance rates ranging from 50% to 85% of the amount of the servicing advances or the carrying value of the MSR pledged. | ||||||||||||||
The borrowing facilities contain various covenants, including financial covenants governing the Company’s net worth, debt to equity ratio, profitability and liquidity. Management believes that the Company was in compliance with these requirements as of September 30, 2014. | ||||||||||||||
Excess Servicing Spread Financing | ||||||||||||||
In conjunction with the Company’s purchase from non-affiliates of certain MSRs on pools of Agency-backed residential mortgage loans, the Company has entered into sale and assignment agreements which are treated as financings and are carried at fair value with changes in fair value recognized in current period income. Under these agreements, the Company sold to PMT the right to receive ESS cash flows relating to certain MSRs. The Company retained all ancillary income associated with servicing the loans and a fixed base servicing fee. The Company continues to be the servicer of the mortgage loans and provides all servicing functions, including responsibility to make servicing advances. | ||||||||||||||
Following is a summary of ESS: | ||||||||||||||
Quarter ended September 30, | Nine months ended September 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
(in thousands) | ||||||||||||||
Balance at beginning of period | $ | 190,244 | $ | — | $ | 138,723 | $ | — | ||||||
Proceeds received from excess servicing spread financing | 9,253 | 2,828 | 82,646 | 2,828 | ||||||||||
ESS issued pursuant to a recapture agreement with PennyMac Mortgage Investment Trust | 2,619 | — | 6,093 | — | ||||||||||
Accrual of interest expense | 3,577 | — | 9,578 | — | ||||||||||
Repayments | (8,786 | ) | — | (25,280 | ) | — | ||||||||
Change in fair value | (9,539 | ) | 29 | (24,392 | ) | 29 | ||||||||
Balance at end of period | $ | 187,368 | $ | 2,857 | $ | 187,368 | $ | 2,857 | ||||||
Liability_for_Losses_Under_Rep
Liability for Losses Under Representations and Warranties | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
Liability for Losses Under Representations and Warranties | ' | |||||||||||||
Liability for Losses Under Representations and Warranties | ' | |||||||||||||
Note 14—Liability for Losses Under Representations and Warranties | ||||||||||||||
Following is a summary of activity in the Company’s liability for representations and warranties: | ||||||||||||||
Quarter ended September 30, | Nine months ended September 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
(in thousands) | ||||||||||||||
Balance at beginning of period | $ | 10,178 | $ | 6,185 | $ | 8,123 | $ | 3,504 | ||||||
Provision for losses on loans sold | 1,584 | 1,069 | 3,639 | 3,766 | ||||||||||
Incurred losses | — | (39 | ) | — | (55 | ) | ||||||||
Balance at end of period | $ | 11,762 | $ | 7,215 | $ | 11,762 | $ | 7,215 | ||||||
Unpaid principal balance of mortgage loans subject to representations and warranties at period end | $ | 33,660,189 | $ | 20,428,213 | ||||||||||
Following is a summary of the repurchase activity and unpaid balance of mortgage loans subject to representations and warranties: | ||||||||||||||
Quarter ended September 30, | Nine months ended September 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
(in thousands) | ||||||||||||||
During the period: | ||||||||||||||
Losses charged to liability for representations and warranties | $ | — | $ | 39 | $ | — | $ | 55 | ||||||
Unpaid principal balance of mortgage loans repurchased | $ | 1,003 | $ | 1,973 | $ | 2,715 | $ | 6,840 | ||||||
Unpaid principal balance of repurchased mortgage loans repurchased by correspondent lenders | $ | 447 | $ | 357 | $ | 1,673 | $ | 1,410 | ||||||
Unpaid principal balance of mortgage loans indemnified by PFSI | $ | 713 | $ | — | $ | 1,263 | $ | 77 | ||||||
Period end: | ||||||||||||||
Unpaid principal balance of mortgage loans subject to pending claims for repurchase | $ | 11,603 | $ | 1,249 | ||||||||||
Unpaid principal balance of mortgage loans indemnified by PFSI | $ | 1,263 | $ | 77 | ||||||||||
Unpaid principal balance of mortgage loans subject to representations and warranties | $ | 33,660,189 | $ | 20,428,213 | ||||||||||
Stockholders_Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2014 | |
Stockholders' Equity. | ' |
Stockholders' Equity | ' |
Note 15—Stockholders’ Equity | |
During the quarter and nine months ended September 30, 2014, respectively, PennyMac unitholders exchanged 192,527 and 671,736 Class A units for PFSI Class A common stock. The effect of the exchanges reduced the percentage of the Noncontrolling interest in Private National Mortgage Acceptance Company, LLC from 72.6% at December 31, 2013 to 71.7% at September 30, 2014. | |
During the quarter and nine months ended September 30, 2013, PennyMac unitholders exchanged 6,110,000 Class A units for PFSI Class A common stock. The effect of the exchanges reduced the percentage of the Noncontrolling interest in Private National Mortgage Acceptance Company, LLC from 83.2% at the date of the IPO to 75.1% at September 30, 2013. | |
Net_Gains_on_Mortgage_Loans_He
Net Gains on Mortgage Loans Held for Sale | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
Net Gains on Mortgage Loans Held for Sale | ' | |||||||||||||
Net Gains on Mortgage Loans Held for Sale | ' | |||||||||||||
Note 16—Net Gains on Mortgage Loans Held for Sale | ||||||||||||||
Net gains on mortgage loans held for sale at fair value is summarized below: | ||||||||||||||
Quarter ended September 30, | Nine months ended September 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
(in thousands) | ||||||||||||||
Cash (loss) gain: | ||||||||||||||
Sales proceeds | $ | 3,965 | $ | (93,725 | ) | $ | 21,499 | $ | (148,866 | ) | ||||
Hedging activities | (12,437 | ) | 88,789 | (48,242 | ) | 128,670 | ||||||||
(8,472 | ) | (4,936 | ) | (26,743 | ) | (20,196 | ) | |||||||
Non-cash gain: | ||||||||||||||
Mortgage servicing rights resulting from mortgage loan sales | 61,200 | 60,138 | 148,374 | 154,352 | ||||||||||
Mortgage servicing rights and excess servicing spread financing recapture payable to PennyMac Mortgage Investment Trust | (2,143 | ) | (86 | ) | (6,567 | ) | (586 | ) | ||||||
Provision for losses relating to representations and warranties on loans sold | (1,584 | ) | (1,069 | ) | (3,639 | ) | (3,766 | ) | ||||||
Change in fair value relating to loans and hedging derivatives held at period end: | ||||||||||||||
Interest rate lock commitments | (7,114 | ) | 37,768 | 15,875 | (2,382 | ) | ||||||||
Mortgage loans | (976 | ) | 27,509 | 10,870 | 7,876 | |||||||||
Hedging derivatives | 7,222 | (93,375 | ) | (15,795 | ) | (26,738 | ) | |||||||
$ | 48,133 | $ | 25,949 | $ | 122,375 | $ | 108,560 | |||||||
Net_Interest_Expense
Net Interest Expense | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
Net Interest Expense | ' | |||||||||||||
Net Interest Expense | ' | |||||||||||||
Note 17—Net Interest (Expense) Income | ||||||||||||||
Net interest (expense) income is summarized below: | ||||||||||||||
Quarter ended September 30, | Nine months ended September 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
(in thousands) | ||||||||||||||
Interest income: | ||||||||||||||
Short-term investment | $ | 511 | $ | 432 | $ | 1,037 | $ | 635 | ||||||
Mortgage loans held for sale at fair value | 8,464 | 4,661 | 18,300 | 10,675 | ||||||||||
8,975 | 5,093 | 19,337 | 11,310 | |||||||||||
Interest expense: | ||||||||||||||
Mortgage loans sold under agreements to repurchase | 4,495 | 2,920 | 10,506 | 8,251 | ||||||||||
Mortgage loan participation and sale agreement | 39 | — | 39 | — | ||||||||||
Note payable | 1,239 | 681 | 2,759 | 2,326 | ||||||||||
Excess servicing spread financing at fair value payable to PennyMac Mortgage Investment Trust | 3,577 | — | 9,578 | — | ||||||||||
Other | 2,363 | 555 | 3,949 | 1,109 | ||||||||||
11,713 | 4,156 | 26,831 | 11,686 | |||||||||||
$ | (2,738 | ) | $ | 937 | $ | (7,494 | ) | $ | (376 | ) | ||||
Stockbased_Compensation
Stock-based Compensation | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
Stock-based Compensation | ' | |||||||||||||
Stock-based Compensation | ' | |||||||||||||
Note 18—Stock-based Compensation | ||||||||||||||
The Company’s 2013 Equity Incentive Plan provides for grants of stock options, time-based and performance-based restricted stock units (“RSUs”), stock appreciation rights, performance units and stock grants. As of September 30, 2014, the Company has 16.5 million units available for future awards. The Company estimates the cost of the stock options, time-based restricted stock units and performance-based restricted stock units awarded with reference to the fair value of PFSI’s common stock on the date of the award. Compensation costs are fixed, except for the performance-based restricted stock units, at the grant’s estimated fair value on the grant date as all grantees are employees of PennyMac or directors of the Company. Expense relating to awards is included in Compensation in the consolidated statements of income. | ||||||||||||||
Following is a summary of the stock-based compensation expense by instrument awarded: | ||||||||||||||
Quarter ended September 30, | Nine months ended September 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
(in thousands) | ||||||||||||||
Stock options | $ | 1,353 | $ | 593 | $ | 3,915 | $ | 791 | ||||||
Performance-based RSUs | 61 | 464 | 1,935 | 746 | ||||||||||
Time-based RSUs | 499 | 330 | 1,372 | 395 | ||||||||||
$ | 1,913 | $ | 1,387 | $ | 7,222 | $ | 1,932 | |||||||
Following is a summary of equity awards: | ||||||||||||||
Quarter ended September 30, 2014 | ||||||||||||||
Stock | Performance- | Time-based | ||||||||||||
options | based RSUs | RSUs | ||||||||||||
(in thousands) | ||||||||||||||
June 30, 2014 | 1,024 | 1,100 | 196 | |||||||||||
Granted | 16 | 180 | 12 | |||||||||||
Vested | — | — | — | |||||||||||
Expired or canceled | (6 | ) | (9 | ) | (3 | ) | ||||||||
September 30, 2014 | 1,034 | 1,271 | 205 | |||||||||||
Quarter ended September 30, 2013 | ||||||||||||||
Stock | Performance- | Time-based | ||||||||||||
options | based RSUs | RSUs | ||||||||||||
(in thousands) | ||||||||||||||
June 30, 2013 | 424 | 500 | 72 | |||||||||||
Granted | — | 27 | ||||||||||||
Vested | — | — | — | |||||||||||
Expired or canceled | (1 | ) | (1 | ) | (1 | ) | ||||||||
September 30, 2013 | 423 | 499 | 98 | |||||||||||
Nine months ended September 30, 2014 | ||||||||||||||
Stock | Performance- | Time-based | ||||||||||||
options | based RSUs | RSUs | ||||||||||||
(in thousands) | ||||||||||||||
December 31, 2013 | 422 | 496 | 100 | |||||||||||
Granted | 769 | 794 | 144 | |||||||||||
Vested | (138 | ) | — | (31 | ) | |||||||||
Expired or canceled | (19 | ) | (19 | ) | (8 | ) | ||||||||
September 30, 2014 | 1,034 | 1,271 | 205 | |||||||||||
Nine months ended September 30, 2013 | ||||||||||||||
Stock | Performance- | Time-based | ||||||||||||
options | based RSUs | RSUs | ||||||||||||
(in thousands) | ||||||||||||||
December 31, 2012 | — | — | — | |||||||||||
Granted | 424 | 500 | 99 | |||||||||||
Vested | — | — | — | |||||||||||
Expired or canceled | (1 | ) | (1 | ) | (1 | ) | ||||||||
September 30, 2013 | 423 | 499 | 98 | |||||||||||
Income_Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2014 | |
Income Taxes | ' |
Income Taxes | ' |
Note 19—Income Taxes | |
For the quarter and nine months ended September 30, 2014, the Company’s effective tax rates were 11.5% and 11.4%, respectively. For the quarter and nine months ended September 30, 2013, the Company’s effective tax rates were 9.9% and 4.0%, respectively. The difference between the Company’s effective tax rate and the statutory rate is primarily due to the allocation of earnings to the noncontrolling interest unitholders. As the noncontrolling interest unitholders convert their ownership units into the Company’s shares, the portion of the Company’s income that will be subject to corporate federal and state statutory tax rates will increase, which will in turn increase PFSI’s effective income tax rate. | |
Supplemental_Cash_Flow_Informa
Supplemental Cash Flow Information | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Supplemental Cash Flow Information | ' | |||||||
Supplemental Cash Flow Information | ' | |||||||
Note 20—Supplemental Cash Flow Information | ||||||||
Nine months ended September 30, | ||||||||
2014 | 2013 | |||||||
(in thousands) | ||||||||
Cash paid for interest | $ | 25,724 | $ | 11,110 | ||||
Cash paid for income taxes | $ | 4,715 | $ | 7 | ||||
Non-cash investing activity: | ||||||||
Mortgage servicing rights resulting from mortgage loan sales | $ | 148,374 | $ | 154,352 | ||||
Non-cash financing activity: | ||||||||
Transfer of excess servicing spread pursuant to recapture agreement with PennyMac Mortgage Investment Trust | $ | 6,093 | $ | — | ||||
Issuance of common stock in settlement of director fees | $ | 147 | $ | — | ||||
Regulatory_Net_Worth_and_Agenc
Regulatory Net Worth and Agency Capital Requirements | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
Regulatory Net Worth and Agency Capital Requirements | ' | |||||||||||||
Regulatory Net Worth and Agency Capital Requirements | ' | |||||||||||||
Note 21—Regulatory Net Worth and Agency Capital Requirements | ||||||||||||||
The Company, through PLS and PennyMac, is required to maintain specified levels of equity to remain a seller/servicer in good standing with the Agencies. Such equity requirements generally are tied to the size of the Company’s loan servicing portfolio or loan origination volume. | ||||||||||||||
The Agencies’ capital requirements, the calculations of which are specified by each Agency, are summarized below: | ||||||||||||||
Agency Capital | ||||||||||||||
September 30, 2014 | December 31, 2013 | |||||||||||||
Agency—company subject to requirement | Balance (1) | Requirement | Balance (1) | Requirement | ||||||||||
(in thousands) | ||||||||||||||
Fannie Mae—PLS | $ | 542,020 | $ | 90,616 | $ | 409,552 | $ | 83,148 | ||||||
Freddie Mac—PLS | $ | 542,196 | $ | 3,378 | $ | 409,860 | $ | 3,001 | ||||||
Ginnie Mae: | ||||||||||||||
Issuer—PLS | $ | 488,804 | $ | 106,780 | $ | 388,125 | $ | 102,619 | ||||||
Issuer’s parent—PennyMac | $ | 712,107 | $ | 128,136 | $ | 598,198 | $ | 112,881 | ||||||
HUD—PLS | $ | 488,804 | $ | 2,500 | $ | 388,125 | $ | 2,500 | ||||||
-1 | Calculated in compliance with the respective Agency’s requirements. | |||||||||||||
Noncompliance with the respective Agencies’ capital requirements can result in the respective Agency taking various remedial actions up to and including removing PennyMac’s ability to sell loans to and service loans on behalf of the respective Agency. PennyMac and PLS had Agency capital in excess of the respective Agencies’ requirements at September 30, 2014. | ||||||||||||||
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended | ||||
Sep. 30, 2014 | |||||
Commitments and Contingencies. | ' | ||||
Commitments and Contingencies | ' | ||||
Note 22—Commitments and Contingencies | |||||
Litigation | |||||
The business of the Company involves the collection of numerous accounts, as well as the validation of liens and compliance with various state and federal lending and servicing laws. Accordingly, the Company may be involved in proceedings, claims, and legal actions arising in the ordinary course of business. As of September 30, 2014, the Company was not involved in any legal proceedings, claims, or actions that in management’s view would be reasonably likely to have a material adverse effect on the Company. | |||||
Commitments | |||||
September 30, 2014 | |||||
(in thousands) | |||||
Commitments to purchase mortgage loans from PennyMac Mortgage Investment Trust | $ | 1,020,175 | |||
Commitments to fund mortgage loans | 720,201 | ||||
$ | 1,740,376 | ||||
Commitments to sell mortgage loans | $ | 4,299,329 | |||
Segments_and_Related_Informati
Segments and Related Information | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Segments and Related Information | ' | ||||||||||||||||
Segments and Related Information | ' | ||||||||||||||||
Note 23—Segments and Related Information | |||||||||||||||||
Since the date of the Company’s IPO, the Company has continued its development of internal management reporting. Such development has resulted in changes in the information that is provided to the Company’s chief operating decision maker. Accordingly, during the quarter ended March 31, 2014, management re-evaluated this new information in relation to its definition of its operating segments. | |||||||||||||||||
As a result of the new reporting provided to the chief operating decision maker, management has concluded that its mortgage banking operations should be disclosed as two segments: loan production and loan servicing. Accordingly, the following segment disclosure includes three segments: loan production, loan servicing and investment management. Prior period segment disclosures have been restated to conform segment disclosures for the quarter and nine months ended September 30, 2013 to those for the quarter and nine months ended September 30, 2014. | |||||||||||||||||
Two of the segments are in the mortgage banking business: loan production and loan servicing. The loan production segment performs origination, acquisition and sale activities. The loan servicing segment performs servicing of newly originated mortgage loans, execution and management of early buyout loans and servicing of mortgage loans sourced and managed by the investment management segment, including executing the loan resolution strategy identified by the investment management segment relating to distressed mortgage loans. | |||||||||||||||||
The investment management segment represents the activities of the Company’s investment manager, which include sourcing, performing diligence, bidding and closing investment asset acquisitions, managing correspondent lending activities for PMT and managing the acquired assets for the Advised Entities. | |||||||||||||||||
Financial highlights by segment are as follows: | |||||||||||||||||
Quarter ended September 30, 2014 | |||||||||||||||||
Mortgage banking | Investment | ||||||||||||||||
Production | Servicing | Total | management | Total | |||||||||||||
(in thousands) | |||||||||||||||||
Revenue | |||||||||||||||||
Net gains on mortgage loans held for sale at fair value | $ | 41,308 | $ | 6,825 | $ | 48,133 | $ | — | $ | 48,133 | |||||||
Loan origination fees | 11,823 | — | 11,823 | — | 11,823 | ||||||||||||
Fulfillment fees from PennyMac Mortgage Investment Trust | 15,497 | — | 15,497 | — | 15,497 | ||||||||||||
Net servicing fees | — | 53,908 | 53,908 | — | 53,908 | ||||||||||||
Management fees | — | — | — | 11,379 | 11,379 | ||||||||||||
Carried Interest from Investment Funds | — | — | — | 1,902 | 1,902 | ||||||||||||
Net interest income (expense): | |||||||||||||||||
Interest income | 5,759 | 3,216 | 8,975 | — | 8,975 | ||||||||||||
Interest expense | 3,251 | 8,462 | 11,713 | — | 11,713 | ||||||||||||
2,508 | (5,246 | ) | (2,738 | ) | — | (2,738 | ) | ||||||||||
Other | 478 | 230 | 708 | 13 | 721 | ||||||||||||
Total net revenue | 71,614 | 55,717 | 127,331 | 13,294 | 140,625 | ||||||||||||
Expenses | 32,535 | 38,286 | 70,821 | 7,112 | 77,933 | ||||||||||||
Income before provision for income taxes | $ | 39,079 | $ | 17,431 | $ | 56,510 | $ | 6,182 | $ | 62,692 | |||||||
Segment assets at period end (1) | $ | 1,366,644 | $ | 1,003,742 | $ | 2,370,386 | $ | 110,791 | $ | 2,481,177 | |||||||
-1 | Amount excludes parent Company assets, which consist primarily of deferred tax assets of $52.8 million. | ||||||||||||||||
Quarter ended September 30, 2013 | |||||||||||||||||
Mortgage banking | Investment | ||||||||||||||||
Production | Servicing | Total | management | Total | |||||||||||||
(in thousands) | |||||||||||||||||
Revenue | |||||||||||||||||
Net gains on mortgage loans held for sale at fair value | $ | 25,949 | $ | — | $ | 25,949 | $ | — | $ | 25,949 | |||||||
Loan origination fees | 6,280 | — | 6,280 | — | 6,280 | ||||||||||||
Fulfillment fees from PennyMac Mortgage Investment Trust | 18,327 | — | 18,327 | — | 18,327 | ||||||||||||
Net servicing fees | — | 21,399 | 21,399 | — | 21,399 | ||||||||||||
Management fees | — | — | — | 10,540 | 10,540 | ||||||||||||
Carried Interest from Investment Funds | — | — | — | 2,812 | 2,812 | ||||||||||||
Net interest income (expense): | |||||||||||||||||
Interest income | 5,089 | — | 5,089 | 4 | 5,093 | ||||||||||||
Interest expense | 2,921 | 1,235 | 4,156 | — | 4,156 | ||||||||||||
2,168 | (1,235 | ) | 933 | 4 | 937 | ||||||||||||
Other | 278 | 58 | 336 | 614 | 950 | ||||||||||||
Total net revenue | 53,002 | 20,222 | 73,224 | 13,970 | 87,194 | ||||||||||||
Expenses | 31,956 | 15,416 | 47,372 | 4,905 | 52,277 | ||||||||||||
Income before provision for income taxes | $ | 21,046 | $ | 4,806 | $ | 25,852 | $ | 9,065 | $ | 34,917 | |||||||
Segment assets at period end (1) | $ | 685,202 | $ | 394,124 | $ | 1,079,326 | $ | 119,953 | $ | 1,199,279 | |||||||
-1 | Amount excludes parent Company assets, which consist primarily of deferred tax assets of $54.5 million. | ||||||||||||||||
Nine months ended September 30, 2014 | |||||||||||||||||
Mortgage banking | Investment | ||||||||||||||||
Production | Servicing | Total | management | Total | |||||||||||||
(in thousands) | |||||||||||||||||
Revenue | |||||||||||||||||
Net gains on mortgage loans held for sale at fair value | $ | 113,947 | $ | 8,428 | $ | 122,375 | $ | — | $ | 122,375 | |||||||
Loan origination fees | 29,048 | — | 29,048 | — | 29,048 | ||||||||||||
Fulfillment fees from PennyMac Mortgage Investment Trust | 36,832 | — | 36,832 | — | 36,832 | ||||||||||||
Net servicing fees | — | 154,641 | 154,641 | — | 154,641 | ||||||||||||
Management fees | — | — | — | 32,486 | 32,486 | ||||||||||||
Carried Interest from Investment Funds | — | — | — | 5,893 | 5,893 | ||||||||||||
Net interest income (expense): | |||||||||||||||||
Interest income | 15,562 | 3,770 | 19,332 | 5 | 19,337 | ||||||||||||
Interest expense | 8,652 | 18,179 | 26,831 | — | 26,831 | ||||||||||||
6,910 | (14,409 | ) | (7,499 | ) | 5 | (7,494 | ) | ||||||||||
Other | 1,504 | 1,014 | 2,518 | 253 | 2,771 | ||||||||||||
Total net revenue | 188,241 | 149,674 | 337,915 | 38,637 | 376,552 | ||||||||||||
Expenses | 90,447 | 95,171 | 185,618 | 21,134 | 206,752 | ||||||||||||
Income before provision for income taxes | $ | 97,794 | $ | 54,503 | $ | 152,297 | $ | 17,503 | $ | 169,800 | |||||||
Segment assets at period end (1) | $ | 1,366,644 | $ | 1,003,742 | $ | 2,370,386 | $ | 110,791 | $ | 2,481,177 | |||||||
-1 | Amount excludes parent Company assets, which consist primarily of deferred tax assets of $52.8 million. | ||||||||||||||||
Nine months ended September 30, 2013 | |||||||||||||||||
Mortgage banking | Investment | ||||||||||||||||
Production | Servicing | Total | management | Total | |||||||||||||
(in thousands) | |||||||||||||||||
Revenue | |||||||||||||||||
Net gains on mortgage loans held for sale at fair value | $ | 108,560 | $ | — | $ | 108,560 | $ | — | $ | 108,560 | |||||||
Loan origination fees | 18,260 | — | 18,260 | — | 18,260 | ||||||||||||
Fulfillment fees from PennyMac Mortgage Investment Trust | 68,625 | — | 68,625 | — | 68,625 | ||||||||||||
Net servicing fees | — | 59,510 | 59,510 | — | 59,510 | ||||||||||||
Management fees | — | — | — | 29,375 | 29,375 | ||||||||||||
Carried Interest from Investment Funds | — | — | — | 10,411 | 10,411 | ||||||||||||
Net interest income (expense): | |||||||||||||||||
Interest income | 11,296 | — | 11,296 | 14 | 11,310 | ||||||||||||
Interest expense | 8,491 | 3,195 | 11,686 | — | 11,686 | ||||||||||||
2,805 | (3,195 | ) | (390 | ) | 14 | (376 | ) | ||||||||||
Other | 686 | 177 | 863 | 911 | 1,774 | ||||||||||||
Total net revenue | 198,936 | 56,492 | 255,428 | 40,711 | 296,139 | ||||||||||||
Expenses | 95,701 | 45,243 | 140,944 | 14,756 | 155,700 | ||||||||||||
Income before provision for income taxes | $ | 103,235 | $ | 11,249 | $ | 114,484 | $ | 25,955 | $ | 140,439 | |||||||
Segment assets at period end (1) | $ | 685,202 | $ | 394,124 | $ | 1,079,326 | $ | 119,953 | $ | 1,199,279 | |||||||
-1 | Amount excludes parent Company assets, which consist primarily of deferred tax assets of $54.5 million. | ||||||||||||||||
Recently_Issued_Accounting_Pro
Recently Issued Accounting Pronouncements | 9 Months Ended | |||
Sep. 30, 2014 | ||||
Recently Issued Accounting Pronouncements | ' | |||
Recently Issued Accounting Pronouncements | ' | |||
Note 24—Recently Issued Accounting Pronouncements | ||||
In January 2014, the FASB issued Accounting Standard Update (“ASU”) No. 2014-04, Receivables: Troubled Debt Restructuring by Creditors Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans Upon Foreclosure (“ASU 2014-04”) to the Troubled Debt Restructuring subtopic of the Receivables topic of the Codification. | ||||
ASU 2014-04 clarifies when a creditor should be considered to have received physical possession of residential real estate collateralizing a mortgage loan and the mortgage loan derecognized in the receivable and recognized as real estate property. ASU 2014-04 specifies that an in substance repossession occurs when either the creditor has obtained the legal title to the property after a foreclosure or the borrower has transferred all interest in the property to the creditor through a deed in lieu of foreclosure or similar legal agreement so that at that time the asset should be reclassified from mortgage loans at fair value to real estate acquired in settlement of loans. | ||||
ASU 2014-04 also provides that a disclosure of the amount of real estate acquired in settlement of loans and the recorded investment in mortgage loans at fair value that are in the process of foreclosure must be included in both interim and annual financial statements. | ||||
ASU 2014-04 is effective for all year-end and interim periods beginning after December 15, 2014. The adoption of ASU 2014-04 is not expected to have a material effect on the Company’s consolidated financial statements. | ||||
In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”) to the Revenue from Contracts with Customers topic of the Codification. ASU 2014-09 was issued to standardize revenue recognition between public and private companies as well as across industries in an effort to more closely align GAAP revenue recognition with international standards to provide a more comparable revenue number for the users of the financial statements. | ||||
ASU 2014-09 specifies that for all contracts, revenue should be recognized when or as the entity satisfies a performance obligation. Revenue is recognized either over a period or at one point in time in accordance with how the control of the service or good is transferred. | ||||
ASU 2014-09 is effective for all year-end and interim periods beginning after December 15, 2016 and early application is not permitted. The Company is evaluating the effect of adopting ASU 2014-09 to its consolidated financial statements. | ||||
In June 2014, the FASB issued ASU No. 2014-11, Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures (“ASU 2014-11”) to the Transfers and Servicing topic of the Codification. The amendments in ASU 2014-11 require two accounting changes. First, the amendments in ASU 2014-11 change the accounting for repurchase-to-maturity transactions to secured borrowing accounting. Second, for repurchase financing arrangements, the amendments require separate accounting for a transfer of a financial asset executed contemporaneously with a repurchase agreement with the same counterparty, which will result in secured borrowing accounting for the repurchase agreement. | ||||
ASU 2014-11 requires disclosures for certain transactions comprising (1) a transfer of a financial asset accounted for as a sale and (2) an agreement with the same transferee entered into in contemplation of the initial transfer that results in the transferor retaining substantially all of the exposure to the economic return on the transferred financial asset throughout the term of the transaction. ASU 2014-11 also specifies certain disclosure requirements for those transactions outstanding at the reporting date and for repurchase agreements, securities lending transactions and repurchase-to-maturity transactions, the transferor is required to make certain disclosures by type of transaction. | ||||
ASU 2014-11 is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. The adoption of ASU 2014-11 is not expected to have a material effect on the Company’s consolidated financial statements. | ||||
In August 2014, The FASB issued ASU No. 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (“ASU 2014-15”) to the Going Concern subtopic of the Presentation of Financial Statements topic of the Codification. ASU 2014-15 requires that when management identifies conditions or events that raise substantial doubt about an entity’s ability to continue as a going concern, management should consider whether its plans that are intended to mitigate those relevant conditions or events will alleviate the substantial doubt. The mitigating effect of management’s plans should be considered only to the extent that (1) it is probable that the plans will be effectively implemented and, if so, (2) it is probable that the plans will mitigate the conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern. | ||||
ASU 2014-15 requires that if conditions or events raise substantial doubt about an entity’s ability to continue as a going concern, but the substantial doubt is alleviated as a result of consideration of management’s plans, the entity should include a statement in the notes to its financial statements that enables users of the financial statements to understand all of the following: | ||||
a. | Principal conditions or events that raised substantial doubt about the entity’s ability to continue as a going concern (before consideration of management’s plans), | |||
b. | Management’s evaluation of the significance of those conditions or events in relation to the entity’s ability to meet its obligations, and | |||
c. | Management’s plans that alleviated substantial doubt about the entity’s ability to continue as a going concern. | |||
If conditions or events raise substantial doubt about an entity’s ability to continue as a going concern, and substantial doubt is not alleviated after consideration of management’s plans, an entity should include a statement in the notes to its financial statements indicating that there is substantial doubt about the entity’s ability to continue as a going concern within one year after the date that the financial statements are issued (or available to be issued). The entity should disclose information that enables users of the financial statements to understand all of the following: | ||||
a. | Principal conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern. | |||
b. | Management’s evaluation of the significance of those conditions or events in relation to the entity’s ability to meet its obligations, and | |||
c. | Management’s plans that are intended to mitigate the conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern. | |||
ASU 2014-15 is effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early application is permitted. The adoption of ASU 2014-15 is not expected to have a material effect on the Company’s consolidated financial statements. | ||||
Subsequent_Events
Subsequent Events | 9 Months Ended | |||
Sep. 30, 2014 | ||||
Subsequent Events | ' | |||
Subsequent Events | ' | |||
Note 25—Subsequent Events | ||||
Management has evaluated all events and transactions through the date the Company issued these consolidated financial statements. During this period: | ||||
· | All agreements to repurchase assets that matured between September 30, 2014 and the date of this Report were extended or renewed. | |||
Transactions_with_Affiliates_T
Transactions with Affiliates (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
PennyMac Mortgage Investment Trust | ' | |||||||||||||
Transactions with Affiliates | ' | |||||||||||||
Summary of management fees earned | ' | |||||||||||||
Quarter ended September 30, | Nine months ended September 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
(in thousands) | ||||||||||||||
Management fees: | ||||||||||||||
Base | $ | 6,033 | $ | 5,104 | $ | 17,392 | $ | 14,043 | ||||||
Performance incentive | 3,590 | 3,435 | 9,217 | 9,443 | ||||||||||
$ | 9,623 | $ | 8,539 | $ | 26,609 | $ | 23,486 | |||||||
Summary of mortgage loan servicing fees earned from PMT | ' | |||||||||||||
Quarter ended September 30, | Nine months ended September 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
(in thousands) | ||||||||||||||
Loan servicing fees relating to PMT’s: | ||||||||||||||
Mortgage loans acquired for sale at fair value: | ||||||||||||||
Base and supplemental | $ | 28 | $ | 62 | $ | 74 | $ | 231 | ||||||
Activity-based | 35 | 77 | 112 | 260 | ||||||||||
63 | 139 | 186 | 491 | |||||||||||
Distressed mortgage loans: | ||||||||||||||
Base and supplemental | 4,679 | 4,166 | 14,620 | 11,737 | ||||||||||
Activity-based | 4,076 | 3,414 | 16,208 | 7,739 | ||||||||||
8,755 | 7,580 | 30,828 | 19,476 | |||||||||||
MSRs: | ||||||||||||||
Base and supplemental | 3,459 | 2,911 | 9,930 | 7,037 | ||||||||||
Activity-based | 48 | 108 | 152 | 247 | ||||||||||
3,507 | 3,019 | 10,082 | 7,284 | |||||||||||
$ | 12,325 | $ | 10,738 | $ | 41,096 | $ | 27,251 | |||||||
Summary of lending activity between the Company and affiliate | ' | |||||||||||||
Quarter ended September 30, | Nine months ended September 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
(in thousands) | ||||||||||||||
Fulfillment fee revenue | $ | 15,497 | $ | 18,327 | $ | 36,832 | $ | 68,625 | ||||||
Unpaid principal balance of loans fulfilled for PennyMac Mortgage Investment Trust | $ | 3,677,613 | $ | 3,681,771 | $ | 8,588,955 | $ | 12,792,482 | ||||||
Sourcing fees paid | $ | 1,384 | $ | 1,204 | $ | 3,401 | $ | 3,563 | ||||||
Fair value of loans purchased from PennyMac Mortgage Investment Trust | $ | 4,861,392 | $ | 4,147,535 | $ | 11,947,251 | $ | 12,429,698 | ||||||
Sale of mortgage loans held for sale to PennyMac Mortgage Investment Trust | $ | 2,970 | $ | 7,059 | $ | 4,955 | $ | 12,339 | ||||||
MSR recapture recognized | $ | — | $ | 86 | $ | 9 | $ | 586 | ||||||
Summary of financing activity between the Company and affiliate | ' | |||||||||||||
Quarter ended September 30, | Nine months ended September 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
(in thousands) | ||||||||||||||
Issuance of excess servicing spread | $ | 9,253 | $ | 2,828 | $ | 82,646 | $ | 2,828 | ||||||
Change in fair value of excess servicing spread financing | $ | 9,539 | $ | (29 | ) | $ | 24,392 | $ | (29 | ) | ||||
Interest expense from excess servicing spread financing | $ | 3,577 | $ | — | $ | 9,578 | $ | — | ||||||
Excess servicing spread recapture recognized | $ | 2,143 | $ | — | $ | 6,558 | $ | — | ||||||
Summary of reimbursement of expenses | ' | |||||||||||||
Quarter ended September 30, | Nine months ended September 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
(in thousands) | ||||||||||||||
Reimbursement of: | ||||||||||||||
Common overhead incurred by the Company | $ | 2,912 | $ | 2,552 | $ | 8,181 | $ | 8,359 | ||||||
Expenses incurred on PMT’s behalf | 122 | 1,934 | 671 | 3,767 | ||||||||||
$ | 3,034 | $ | 4,486 | $ | 8,852 | $ | 12,126 | |||||||
Payments and settlements during the year (1) | $ | 31,621 | $ | 29,315 | $ | 72,975 | $ | 94,606 | ||||||
-1 | Payments and settlements include payments for management fees and correspondent production activities itemized in the preceding tables and netting settlements made pursuant to master netting agreements between the Company and PMT. | |||||||||||||
Summary of amounts due from affiliate | ' | |||||||||||||
September 30, | December 31, | |||||||||||||
2014 | 2013 | |||||||||||||
(in thousands) | ||||||||||||||
Management fees | $ | 9,623 | $ | 8,924 | ||||||||||
Servicing fees | 6,942 | 5,915 | ||||||||||||
Allocated expenses | 3,360 | 2,009 | ||||||||||||
Underwriting fees | 1,495 | 1,788 | ||||||||||||
$ | 21,420 | $ | 18,636 | |||||||||||
Investment Funds | ' | |||||||||||||
Transactions with Affiliates | ' | |||||||||||||
Summary of amounts due from affiliate | ' | |||||||||||||
September 30, | December 31, | |||||||||||||
2014 | 2013 | |||||||||||||
(in thousands) | ||||||||||||||
Carried Interest due from Investment Funds: | ||||||||||||||
PNMAC Mortgage Opportunity Fund, LLC | $ | 40,845 | $ | 37,702 | ||||||||||
PNMAC Mortgage Opportunity Fund Investors, LLC | 26,190 | 23,440 | ||||||||||||
$ | 67,035 | $ | 61,142 | |||||||||||
Receivable from Investment Funds: | ||||||||||||||
Management fees | $ | 1,755 | $ | 2,031 | ||||||||||
Loan servicing fees | 545 | 727 | ||||||||||||
Expense reimbursements | 220 | 21 | ||||||||||||
Loan servicing rebate | 182 | 136 | ||||||||||||
$ | 2,702 | $ | 2,915 | |||||||||||
Earnings_Per_Share_of_Common_S1
Earnings Per Share of Common Stock (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
Earnings Per Share of Common Stock | ' | |||||||||||||
Summary of basic and diluted earnings per share calculations | ' | |||||||||||||
Quarter ended September 30, | Nine months ended September 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
(in thousands, except per share data) | ||||||||||||||
Basic earnings per share of common stock: | ||||||||||||||
Net income attributable to PennyMac Financial Services, Inc. common stockholders | $ | 10,489 | $ | 5,197 | $ | 28,079 | $ | 7,990 | ||||||
Weighted-average shares of common stock outstanding | 21,432 | 17,958 | 21,149 | 16,042 | ||||||||||
Basic earnings per share of common stock | $ | 0.49 | $ | 0.29 | $ | 1.33 | $ | 0.50 | ||||||
Diluted earnings per share of common stock: | ||||||||||||||
Net income | $ | 10,489 | $ | 5,197 | $ | 28,079 | $ | 7,990 | ||||||
Effect of net income attributable to noncontrolling interest, net of income taxes | 26,620 | 15,685 | 72,374 | 29,595 | ||||||||||
Diluted net income attributable to common stockholders | $ | 37,109 | $ | 20,882 | $ | 100,453 | $ | 37,585 | ||||||
Weighted-average shares of common stock outstanding | 21,432 | 17,958 | 21,149 | 16,042 | ||||||||||
Dilutive shares: | ||||||||||||||
PennyMac Class A units exchangeable to common stock | 53,492 | 56,524 | 53,569 | 58,440 | ||||||||||
Non-vested PennyMac Class A units issuable under unit-based stock compensation plan and exchangeable to common stock | 975 | 1,364 | 1,155 | 1,364 | ||||||||||
Shares issuable under stock-based compensation plans | 50 | 30 | 45 | 21 | ||||||||||
Diluted weighted-average shares of common stock outstanding | 75,949 | 75,876 | 75,918 | 75,867 | ||||||||||
Diluted earnings per share of common stock | $ | 0.49 | $ | 0.28 | $ | 1.32 | $ | 0.50 | ||||||
Loan_Sales_and_Servicing_Activ1
Loan Sales and Servicing Activities (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
Loan Sales and Servicing Activities | ' | |||||||||||||
Summary of cash flows between the Company and transferees upon sale of mortgage loans in transactions | ' | |||||||||||||
Quarter ended September 30, | Nine months ended September 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
(in thousands) | ||||||||||||||
Cash flows: | ||||||||||||||
Sales proceeds | $ | 5,345,227 | $ | 4,515,106 | $ | 13,367,272 | $ | 13,210,810 | ||||||
Servicing fees received | $ | 30,609 | $ | 16,403 | $ | 78,075 | $ | 38,104 | ||||||
Net servicing advances (recoveries) | $ | 6,520 | $ | (717 | ) | $ | 2,182 | $ | (4,375 | ) | ||||
Period end information: | ||||||||||||||
Unpaid principal balance of loans outstanding at end of period | $ | 33,297,161 | $ | 22,776,613 | ||||||||||
Delinquencies: | ||||||||||||||
30-89 days | $ | 662,863 | $ | 380,070 | ||||||||||
90 days or more or in foreclosure or bankruptcy | $ | 168,503 | $ | 247,269 | ||||||||||
Summary of mortgage servicing portfolio | ' | |||||||||||||
September 30, 2014 | ||||||||||||||
Servicing | Contract servicing | Total | ||||||||||||
rights owned | and subservicing | loans serviced | ||||||||||||
(in thousands) | ||||||||||||||
Investor: | ||||||||||||||
Non affiliated entities | $ | 60,865,411 | $ | — | $ | 60,865,411 | ||||||||
Affiliated entities | — | 38,000,767 | 38,000,767 | |||||||||||
Mortgage loans held for sale | 1,217,599 | — | 1,217,599 | |||||||||||
$ | 62,083,010 | $ | 38,000,767 | $ | 100,083,777 | |||||||||
Amount subserviced for the Company | $ | 643,612 | $ | 279 | $ | 643,891 | ||||||||
Delinquent mortgage loans: | ||||||||||||||
30 days | $ | 1,224,346 | $ | 265,802 | $ | 1,490,148 | ||||||||
60 days | 475,806 | 124,884 | 600,690 | |||||||||||
90 days or more | 1,257,724 | 1,033,379 | 2,291,103 | |||||||||||
2,957,876 | 1,424,065 | 4,381,941 | ||||||||||||
Loans pending foreclosure | 335,121 | 1,526,415 | 1,861,536 | |||||||||||
$ | 3,292,997 | $ | 2,950,480 | $ | 6,243,477 | |||||||||
Custodial funds managed by the Company (1) | $ | 1,325,037 | $ | 476,909 | $ | 1,801,946 | ||||||||
December 31, 2013 | ||||||||||||||
Servicing | Contract servicing | Total | ||||||||||||
rights owned | and subservicing | loans serviced | ||||||||||||
(in thousands) | ||||||||||||||
Investor: | ||||||||||||||
Non affiliated entities | $ | 44,969,026 | $ | — | $ | 44,969,026 | ||||||||
Affiliated entities | — | 31,632,718 | 31,632,718 | |||||||||||
Private investors | 969,794 | 89,361 | 1,059,155 | |||||||||||
Mortgage loans held for sale | 506,540 | — | 506,540 | |||||||||||
$ | 46,445,360 | $ | 31,722,079 | $ | 78,167,439 | |||||||||
Amount subserviced for the Company | $ | 156,347 | $ | 582,610 | $ | 738,957 | ||||||||
Delinquent mortgage loans: | ||||||||||||||
30 days | $ | 1,304,054 | $ | 263,518 | $ | 1,567,572 | ||||||||
60 days | 346,912 | 112,275 | 459,187 | |||||||||||
90 days or more | 605,555 | 1,416,498 | 2,022,053 | |||||||||||
2,256,521 | 1,792,291 | 4,048,812 | ||||||||||||
Loans pending foreclosure | 168,776 | 1,792,128 | 1,960,904 | |||||||||||
$ | 2,425,297 | $ | 3,584,419 | $ | 6,009,716 | |||||||||
Custodial funds managed by the Company (1) | $ | 568,161 | $ | 246,587 | $ | 814,748 | ||||||||
-1 | Borrower and investor custodial cash accounts relate to loans serviced under the servicing agreements and are not recorded on the Company’s consolidated balance sheets. The Company earns interest on custodial funds it manages on behalf of the loans’ investors, which is recorded as part of the interest income in the Company’s consolidated statements of income. | |||||||||||||
Summary of the geographical distribution of loans for the top five and all other states as measured by the total unpaid principal balance (UPB) | ' | |||||||||||||
State | September 30, | December 31, | ||||||||||||
2014 | 2013 | |||||||||||||
(in thousands) | ||||||||||||||
California | $ | 33,373,669 | $ | 30,320,616 | ||||||||||
Texas | 6,299,566 | 4,470,123 | ||||||||||||
Virginia | 5,831,547 | 3,769,683 | ||||||||||||
Florida | 4,998,805 | 3,416,274 | ||||||||||||
Washington | 3,658,408 | 2,760,900 | ||||||||||||
All other states | 45,921,782 | 33,429,843 | ||||||||||||
$ | 100,083,777 | $ | 78,167,439 | |||||||||||
Netting_of_Financial_Instrumen1
Netting of Financial Instruments (Tables) | 9 Months Ended | |||||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||||
Netting of Financial Instruments | ' | |||||||||||||||||||||||||
Summaries of derivative assets and related netting amounts | ' | |||||||||||||||||||||||||
September 30, 2014 | December 31, 2013 | |||||||||||||||||||||||||
Gross | Gross | Net | Gross | Gross | Net | |||||||||||||||||||||
amount of | amount | amount | amount of | amount | amount | |||||||||||||||||||||
recognized | offset | of assets in | recognized | offset | of assets | |||||||||||||||||||||
assets | in the | the | assets | in the | in the | |||||||||||||||||||||
balance | balance | balance | balance | |||||||||||||||||||||||
sheet | sheet | sheet | sheet | |||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||
Derivatives subject to master netting arrangements: | ||||||||||||||||||||||||||
MBS put options | $ | 625 | $ | — | $ | 625 | $ | 665 | $ | — | $ | 665 | ||||||||||||||
MBS call options | 227 | — | 227 | 91 | — | 91 | ||||||||||||||||||||
Forward purchase contracts | 5,686 | — | 5,686 | 416 | — | 416 | ||||||||||||||||||||
Forward sale contracts | 1,273 | — | 1,273 | 18,762 | — | 18,762 | ||||||||||||||||||||
Put options on Eurodollar futures | 1,713 | — | 1,713 | — | — | — | ||||||||||||||||||||
Call options on Eurodollar futures | 1,050 | — | 1,050 | — | — | — | ||||||||||||||||||||
Netting | — | (5,865 | ) | (5,865 | ) | — | (7,358 | ) | (7,358 | ) | ||||||||||||||||
10,574 | (5,865 | ) | 4,709 | 19,934 | (7,358 | ) | 12,576 | |||||||||||||||||||
Derivatives not subject to master netting arrangements - IRLCs | 23,691 | — | 23,691 | 8,964 | — | 8,964 | ||||||||||||||||||||
$ | 34,265 | $ | (5,865 | ) | $ | 28,400 | $ | 28,898 | $ | (7,358 | ) | $ | 21,540 | |||||||||||||
Summary of the amount of derivative asset positions by significant counterparty after considering master netting arrangements and financial instruments or cash pledged | ' | |||||||||||||||||||||||||
September 30, 2014 | December 31, 2013 | |||||||||||||||||||||||||
Gross amount not | Gross amount not offset in | |||||||||||||||||||||||||
offset in the | the | |||||||||||||||||||||||||
consolidated | consolidated | |||||||||||||||||||||||||
balance sheet | balance sheet | |||||||||||||||||||||||||
Net amount | Financial | Cash | Net | Net amount | Financial | Cash | Net | |||||||||||||||||||
of assets | instruments | collateral | amount | of assets | instruments | collateral | amount | |||||||||||||||||||
in the balance | received | in the balance | received | |||||||||||||||||||||||
sheet | sheet | |||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||
Interest rate lock commitments | $ | 23,691 | $ | — | $ | — | $ | 23,691 | $ | 8,964 | $ | — | $ | — | $ | 8,964 | ||||||||||
RJ O’Brien | 2,313 | — | — | 2,313 | — | — | ||||||||||||||||||||
Bank of America, N.A. | 721 | — | — | 721 | 1,680 | 1,680 | ||||||||||||||||||||
Jefferies & Co. | 626 | — | — | 626 | 627 | 627 | ||||||||||||||||||||
Multi-Bank | 207 | — | — | 207 | — | — | — | — | ||||||||||||||||||
Morgan Stanley Bank, N.A. | 169 | — | — | 169 | 1,704 | — | — | 1,704 | ||||||||||||||||||
Credit Suisse First Boston Mortgage Capital LLC | — | — | — | — | 2,149 | — | — | 2,149 | ||||||||||||||||||
Daiwa Capital Markets Inc. | — | — | — | — | 1,190 | — | — | 1,190 | ||||||||||||||||||
Others | 673 | — | — | 673 | 5,226 | — | — | 5,226 | ||||||||||||||||||
$ | 28,400 | $ | — | $ | — | $ | 28,400 | $ | 21,540 | $ | — | $ | — | $ | 21,540 | |||||||||||
Summary of net derivative liabilities and assets sold under agreements to repurchase and related netting amounts | ' | |||||||||||||||||||||||||
September 30, 2014 | December 31, 2013 | |||||||||||||||||||||||||
Gross | Gross amount | Net | Gross | Gross amount | Net | |||||||||||||||||||||
amount of | offset | amount | amount of | offset | amount | |||||||||||||||||||||
recognized | in the | of liabilities | recognized | in the | of liabilities | |||||||||||||||||||||
liabilities | consolidated | in the | liabilities | consolidated | in the | |||||||||||||||||||||
balance | consolidated | balance | consolidated | |||||||||||||||||||||||
sheet | balance | sheet | balance | |||||||||||||||||||||||
sheet | sheet | |||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||
Derivatives subject to a master netting arrangement: | ||||||||||||||||||||||||||
Forward purchase contracts | $ | 645 | $ | — | $ | 645 | $ | 6,542 | $ | — | $ | 6,542 | ||||||||||||||
Forward sale contracts | 9,655 | — | 9,655 | 504 | — | 504 | ||||||||||||||||||||
Netting | — | (6,915 | ) | (6,915 | ) | — | (6,787 | ) | (6,787 | ) | ||||||||||||||||
10,300 | (6,915 | ) | 3,385 | 7,046 | (6,787 | ) | 259 | |||||||||||||||||||
Derivatives not subject to a master netting arrangement - IRLCs | 1,055 | — | 1,055 | 2,203 | — | 2,203 | ||||||||||||||||||||
Total derivatives | 11,355 | (6,915 | ) | 4,440 | 9,249 | (6,787 | ) | 2,462 | ||||||||||||||||||
Mortgage loans sold under agreements to repurchase | 929,747 | — | 929,747 | 471,592 | — | 471,592 | ||||||||||||||||||||
$ | 941,102 | $ | (6,915 | ) | $ | 934,187 | $ | 480,841 | $ | (6,787 | ) | $ | 474,054 | |||||||||||||
Summary of amount of derivative liabilities and assets sold under agreements to repurchase by significant counterparty after considering master netting arrangements and financial instruments or cash pledged | ' | |||||||||||||||||||||||||
September 30, 2014 | December 31, 2013 | |||||||||||||||||||||||||
Net amount of | Gross amount | Net amount of | Gross amount | |||||||||||||||||||||||
not offset in the | not offset in the | |||||||||||||||||||||||||
consolidated | consolidated | |||||||||||||||||||||||||
balance sheet | balance sheet | |||||||||||||||||||||||||
liabilities | Financial | Cash | Net | liabilities | Financial | Cash | Net | |||||||||||||||||||
in the consolidated | instruments | collateral | amount | in the consolidated | instruments | collateral | amount | |||||||||||||||||||
balance sheet | pledged | balance sheet | pledged | |||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||
Interest rate lock commitments | $ | 1,055 | $ | — | $ | — | $ | 1,055 | $ | 2,203 | $ | — | $ | — | $ | 2,203 | ||||||||||
Credit Suisse First Boston Mortgage Capital LLC | 564,182 | (562,999 | ) | — | 1,183 | 198,888 | (198,888 | ) | — | — | ||||||||||||||||
Bank of America, N.A. | 224,169 | (224,169 | ) | — | — | 234,511 | (234,511 | ) | — | — | ||||||||||||||||
Morgan Stanley Bank, N.A. | 142,579 | (142,579 | ) | — | — | 38,193 | (38,193 | ) | — | — | ||||||||||||||||
Deutsche Bank | 308 | — | — | 308 | — | — | — | — | ||||||||||||||||||
Daiwa Capital Markets Inc. | 237 | — | — | 237 | — | — | — | — | ||||||||||||||||||
Bank of NY Mellon | 236 | — | — | 236 | — | — | — | — | ||||||||||||||||||
Fannie Capital Markets | 210 | — | — | 210 | — | — | — | — | ||||||||||||||||||
Bank of Oklahoma | 210 | — | — | 210 | — | — | — | — | ||||||||||||||||||
Others | 1,001 | — | — | 1,001 | 259 | — | — | 259 | ||||||||||||||||||
$ | 934,187 | $ | (929,747 | ) | $ | — | $ | 4,440 | $ | 474,054 | $ | (471,592 | ) | $ | — | $ | 2,462 | |||||||||
Fair_Value_Tables
Fair Value (Tables) | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||
Fair Value | ' | |||||||||||||||||||
Summary of financial statement items measured at estimated fair value on a recurring basis | ' | |||||||||||||||||||
September 30, 2014 | ||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||
(in thousands) | ||||||||||||||||||||
Assets: | ||||||||||||||||||||
Short-term investments | $ | 36,335 | $ | — | $ | — | $ | 36,335 | ||||||||||||
Mortgage loans held for sale at fair value | — | 973,935 | 286,056 | 1,259,991 | ||||||||||||||||
Derivative assets: | ||||||||||||||||||||
Interest rate lock commitments | — | — | 23,691 | 23,691 | ||||||||||||||||
MBS put options | — | 625 | — | 625 | ||||||||||||||||
MBS call options | — | 227 | — | 227 | ||||||||||||||||
Forward purchase contracts | — | 5,686 | — | 5,686 | ||||||||||||||||
Forward sales contracts | — | 1,273 | — | 1,273 | ||||||||||||||||
Put options on Eurodollar futures | — | 1,713 | — | 1,713 | ||||||||||||||||
Call options on Eurodollar futures | — | 1,050 | — | 1,050 | ||||||||||||||||
Total derivative assets before netting | — | 10,574 | 23,691 | 34,265 | ||||||||||||||||
Netting (1) | — | — | — | (5,865 | ) | |||||||||||||||
Total derivative assets | — | 10,574 | 23,691 | 28,400 | ||||||||||||||||
Investment in PennyMac Mortgage Investment Trust | 1,607 | — | — | 1,607 | ||||||||||||||||
Mortgage servicing rights at fair value | — | — | 319,149 | 319,149 | ||||||||||||||||
$ | 37,942 | $ | 984,509 | $ | 628,896 | $ | 1,645,482 | |||||||||||||
Liabilities: | ||||||||||||||||||||
Excess servicing spread financing at fair value payable to PennyMac Mortgage Investment Trust | $ | — | $ | — | $ | 187,368 | $ | 187,368 | ||||||||||||
Derivative liabilities: | ||||||||||||||||||||
Interest rate lock commitments | — | — | 1,055 | 1,055 | ||||||||||||||||
Forward purchase contracts | — | 645 | — | 645 | ||||||||||||||||
Forward sales contracts | — | 9,655 | — | 9,655 | ||||||||||||||||
Total derivative liabilities before netting | — | 10,300 | 1,055 | 11,355 | ||||||||||||||||
Netting (1) | — | — | — | (6,915 | ) | |||||||||||||||
Total derivative liabilities | — | 10,300 | 1,055 | 4,440 | ||||||||||||||||
Mortgage servicing liabilities | — | — | 4,091 | 4,091 | ||||||||||||||||
$ | — | $ | 10,300 | $ | 192,514 | $ | 195,899 | |||||||||||||
-1 | Derivatives are reported net of cash collateral received and paid and, to the extent that the criteria of the accounting guidance covering the offsetting of amounts related to certain contracts are met, positions with the same counterparty are netted as part of a legally enforceable master netting agreement. | |||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||
(in thousands) | ||||||||||||||||||||
Assets: | ||||||||||||||||||||
Short-term investments | $ | 142,582 | $ | — | $ | — | $ | 142,582 | ||||||||||||
Mortgage loans held for sale at fair value | — | 527,071 | 3,933 | 531,004 | ||||||||||||||||
Derivative assets: | ||||||||||||||||||||
Interest rate lock commitments | — | — | 8,964 | 8,964 | ||||||||||||||||
Forward purchase contracts | — | 416 | — | 416 | ||||||||||||||||
Forward sales contracts | — | 18,762 | — | 18,762 | ||||||||||||||||
MBS put options | — | 665 | — | 665 | ||||||||||||||||
MBS call options | — | 91 | — | 91 | ||||||||||||||||
Total derivative assets before netting | — | 19,934 | 8,964 | 28,898 | ||||||||||||||||
Netting (1) | — | — | — | (7,358 | ) | |||||||||||||||
Total derivative assets | — | 19,934 | 8,964 | 21,540 | ||||||||||||||||
Investment in PennyMac Mortgage Investment Trust | 1,722 | — | — | 1,722 | ||||||||||||||||
Mortgage servicing rights at fair value | — | — | 224,913 | 224,913 | ||||||||||||||||
$ | 144,304 | $ | 547,005 | $ | 237,810 | $ | 921,761 | |||||||||||||
Liabilities: | ||||||||||||||||||||
Excess servicing spread financing at fair value payable to PennyMac Mortgage Investment Trust | $ | — | $ | — | $ | 138,723 | $ | 138,723 | ||||||||||||
Derivative liabilities: | ||||||||||||||||||||
Interest rate lock commitments | — | — | 2,203 | 2,203 | ||||||||||||||||
Forward purchase contracts | — | 6,542 | — | 6,542 | ||||||||||||||||
Forward sales contracts | — | 504 | — | 504 | ||||||||||||||||
Total derivative liabilities before netting | — | 7,046 | 2,203 | 9,249 | ||||||||||||||||
Netting (1) | — | — | — | (6,787 | ) | |||||||||||||||
Total derivative liabilities | — | 7,046 | 2,203 | 2,462 | ||||||||||||||||
$ | — | $ | 7,046 | $ | 140,926 | $ | 141,185 | |||||||||||||
-1 | Derivatives are reported net of cash collateral received and paid and, to the extent that the criteria of the accounting guidance covering the offsetting of amounts related to certain contracts are met, positions with the same counterparty are netted as part of a legally enforceable master netting agreement. | |||||||||||||||||||
Summary of roll forward of items measured using Level 3 inputs on a recurring basis | ' | |||||||||||||||||||
Quarter ended September 30, 2014 | ||||||||||||||||||||
Mortgage | Net interest | Mortgage | Total | |||||||||||||||||
loans held | rate lock | servicing | ||||||||||||||||||
for sale | commitments (1) | rights | ||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Assets: | ||||||||||||||||||||
Balance, June 30, 2014 | $ | 254,656 | $ | 29,750 | $ | 308,599 | $ | 593,005 | ||||||||||||
Purchases | 217,498 | — | 15,704 | 233,202 | ||||||||||||||||
Sales | (74,817 | ) | — | — | (74,817 | ) | ||||||||||||||
Repayments | (10,659 | ) | — | — | (10,659 | ) | ||||||||||||||
Interest rate lock commitments issued, net | — | 30,727 | — | 30,727 | ||||||||||||||||
Mortgage servicing rights resulting from mortgage loan sales | — | — | 6,381 | 6,381 | ||||||||||||||||
Changes in fair value included in income arising from: | ||||||||||||||||||||
Changes in instrument-specific credit risk | — | — | ||||||||||||||||||
Other factors | 1,797 | 2,289 | (11,535 | ) | (7,449 | ) | ||||||||||||||
1,797 | 2,289 | (11,535 | ) | (7,449 | ) | |||||||||||||||
Transfers to Level 2 mortgage loans held for sale (2) | (102,419 | ) | — | — | (102,419 | ) | ||||||||||||||
Transfers of interest rate lock commitments to mortgage loans held for sale | — | (40,130 | ) | — | (40,130 | ) | ||||||||||||||
Balance, September 30, 2014 | $ | 286,056 | $ | 22,636 | $ | 319,149 | $ | 627,841 | ||||||||||||
Changes in fair value recognized during the period relating to assets still held at September 30, 2014 | $ | 1,797 | $ | 22,636 | $ | (11,535 | ) | |||||||||||||
-1 | For the purpose of this table, the IRLC asset and liability positions are shown net. | |||||||||||||||||||
-2 | Mortgage loans held for sale transferred from Level 3 to Level 2 as a result of the mortgage loan becoming salable into active mortgage markets pursuant to a loan modification or borrower reperformance. | |||||||||||||||||||
Quarter ended September 30, 2014 | ||||||||||||||||||||
Excess | Mortgage servicing | Total | ||||||||||||||||||
servicing spread | liabilities | |||||||||||||||||||
financing | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Liabilities: | ||||||||||||||||||||
Balance, June 30, 2014 | $ | 190,244 | $ | 5,821 | $ | 196,065 | ||||||||||||||
Proceeds received from excess servicing spread financing | 9,253 | — | 9,253 | |||||||||||||||||
ESS issued pursuant to a recapture agreement with PennyMac Mortgage Investment Trust | 2,619 | — | 2,619 | |||||||||||||||||
Accrual of interest | 3,577 | — | 3,577 | |||||||||||||||||
Repayments | (8,786 | ) | — | (8,786 | ) | |||||||||||||||
Changes in fair value included in income | (9,539 | ) | (1,730 | ) | (11,269 | ) | ||||||||||||||
Balance, September 30, 2014 | $ | 187,368 | $ | 4,091 | $ | 191,459 | ||||||||||||||
Changes in fair value recognized during the period relating to liabilities still held at September 30, 2014 | $ | (9,539 | ) | $ | (1,730 | ) | ||||||||||||||
Quarter ended September 30, 2013 | ||||||||||||||||||||
Mortgage | Net interest | Mortgage servicing | Total | |||||||||||||||||
loans held | rate lock | rights | ||||||||||||||||||
for sale | commitments (1) | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Assets: | ||||||||||||||||||||
Balance, June 30, 2013 | $ | 4,525 | $ | (16,210 | ) | $ | 23,070 | $ | 11,385 | |||||||||||
Purchases | — | — | 1,116 | 1,116 | ||||||||||||||||
Repayments | (436 | ) | — | — | (436 | ) | ||||||||||||||
Interest rate lock commitments issued, net | — | 23,788 | — | 23,788 | ||||||||||||||||
Mortgage servicing rights resulting from mortgage loan sales | — | — | 4,157 | 4,157 | ||||||||||||||||
Changes in fair value included in income arising from: | ||||||||||||||||||||
Changes in instrument-specific credit risk | — | — | ||||||||||||||||||
Other factors | 96 | 10,585 | (1,575 | ) | 9,106 | |||||||||||||||
96 | 10,585 | (1,575 | ) | 9,106 | ||||||||||||||||
Transfers of interest rate lock commitments to mortgage loans held for sale | — | 3,395 | — | 3,395 | ||||||||||||||||
Balance, September 30, 2013 | $ | 4,185 | $ | 21,558 | $ | 26,768 | $ | 52,511 | ||||||||||||
Changes in fair value recognized during the period relating to assets still held at September 30, 2013 | $ | 16 | $ | 21,558 | $ | (1,575 | ) | |||||||||||||
-1 | For the purpose of this table, the interest rate lock asset and liability positions are shown net. | |||||||||||||||||||
Excess servicing | ||||||||||||||||||||
spread financing | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Liability: | ||||||||||||||||||||
Balance, June 30, 2013 | $ | — | ||||||||||||||||||
Proceeds received from excess servicing spread financing | 2,828 | |||||||||||||||||||
Changes in fair value included in income | 29 | |||||||||||||||||||
Repayments | — | |||||||||||||||||||
Balance, September 30, 2013 | $ | 2,857 | ||||||||||||||||||
Changes in fair value recognized during the period relating to liability still held at September 30, 2013 | $ | 29 | ||||||||||||||||||
Nine months ended September 30, 2014 | ||||||||||||||||||||
Mortgage | Net interest | Mortgage | Total | |||||||||||||||||
loans held | rate lock | servicing | ||||||||||||||||||
for sale | commitments (1) | rights | ||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Assets: | ||||||||||||||||||||
Balance, December 31, 2013 | $ | 3,933 | $ | 6,761 | $ | 224,913 | $ | 235,607 | ||||||||||||
Purchases | 897,381 | — | 113,348 | 1,010,729 | ||||||||||||||||
Sales | (435,437 | ) | — | (10,916 | ) | (446,353 | ) | |||||||||||||
Repayments | (16,778 | ) | — | — | (16,778 | ) | ||||||||||||||
Interest rate lock commitments issued, net | — | 113,559 | — | 113,559 | ||||||||||||||||
Mortgage servicing rights resulting from mortgage loan sales | — | — | 20,647 | 20,647 | ||||||||||||||||
Changes in fair value included in income arising from: | ||||||||||||||||||||
Changes in instrument-specific credit risk | — | — | ||||||||||||||||||
Other factors | (84 | ) | 21,768 | (28,843 | ) | (7,159 | ) | |||||||||||||
(84 | ) | 21,768 | (28,843 | ) | (7,159 | ) | ||||||||||||||
Transfers to Level 2 mortgage loans held for sale (2) | (162,959 | ) | — | — | (162,959 | ) | ||||||||||||||
Transfers of interest rate lock commitments to mortgage loans held for sale | — | (119,452 | ) | — | (119,452 | ) | ||||||||||||||
Balance, September 30, 2014 | $ | 286,056 | $ | 22,636 | $ | 319,149 | $ | 627,841 | ||||||||||||
Changes in fair value recognized during the period relating to assets still held at September 30, 2014 | $ | (84 | ) | $ | 22,636 | $ | (28,878 | ) | ||||||||||||
-1 | For the purpose of this table, the interest rate lock asset and liability positions are shown net. | |||||||||||||||||||
-2 | Mortgage loans held for sale transferred from Level 3 to Level 2 as a result of the mortgage loan becoming salable into active mortgage markets pursuant to a loan modification or borrower reperformance. | |||||||||||||||||||
Nine months ended September 30, 2014 | ||||||||||||||||||||
Excess | Mortgage servicing | Total | ||||||||||||||||||
servicing spread | liabilities | |||||||||||||||||||
financing | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Liabilities: | ||||||||||||||||||||
Balance, December 31, 2013 | $ | 138,723 | $ | — | $ | 138,723 | ||||||||||||||
Proceeds received from excess servicing spread financing | 82,646 | — | 82,646 | |||||||||||||||||
Pursuant to a recapture agreement with PennyMac Mortgage Investment Trust | 6,093 | — | 6,093 | |||||||||||||||||
Accrual of interest on excess servicing spread financing | 9,578 | — | 9,578 | |||||||||||||||||
Repayments | (25,280 | ) | — | (25,280 | ) | |||||||||||||||
Changes in fair value included in income | (24,392 | ) | 4,091 | (20,301 | ) | |||||||||||||||
Balance, September 30, 2014 | $ | 187,368 | $ | 4,091 | $ | 191,459 | ||||||||||||||
Changes in fair value recognized during the period relating to liabilities still held at September 30, 2014 | $ | (24,393 | ) | $ | 4,091 | |||||||||||||||
Nine months ended September 30, 2013 | ||||||||||||||||||||
Mortgage | Net interest | Mortgage servicing | Total | |||||||||||||||||
loans held | rate lock | rights | ||||||||||||||||||
for sale | commitments (1) | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Assets: | ||||||||||||||||||||
Balance, December 31, 2012 | $ | — | $ | 23,940 | $ | 19,798 | $ | 43,738 | ||||||||||||
Purchases | — | — | 5,124 | 5,124 | ||||||||||||||||
Repurchases of mortgage loans subject to representations and warranties | 5,529 | — | — | 5,529 | ||||||||||||||||
Sales | — | — | (550 | ) | (550 | ) | ||||||||||||||
Repayments | (1,059 | ) | — | — | (1,059 | ) | ||||||||||||||
Interest rate lock commitments issued, net | — | 78,722 | — | 78,722 | ||||||||||||||||
Mortgage servicing rights resulting from mortgage loan sales | — | — | 4,177 | 4,177 | ||||||||||||||||
Changes in fair value included in income arising from: | ||||||||||||||||||||
Changes in instrument-specific credit risk | — | — | ||||||||||||||||||
Other factors | (285 | ) | (15,289 | ) | (1,781 | ) | (17,355 | ) | ||||||||||||
(285 | ) | (15,289 | ) | (1,781 | ) | (17,355 | ) | |||||||||||||
Transfers of interest rate lock commitments to mortgage loans held for sale | — | (65,815 | ) | — | (65,815 | ) | ||||||||||||||
Balance, September 30, 2013 | $ | 4,185 | $ | 21,558 | $ | 26,768 | $ | 52,511 | ||||||||||||
Changes in fair value recognized during the period relating to assets still held at September 30, 2013 | $ | (344 | ) | $ | 21,558 | $ | (1,781 | ) | ||||||||||||
-1 | For the purpose of this table, the interest rate lock asset and liability positions are shown net. | |||||||||||||||||||
Summary of net gains (losses) from changes in estimated fair values included in earnings for financial statement items carried at estimated fair value | ' | |||||||||||||||||||
Quarter ended September 30, | ||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
Net gains on mortgage | Net | Total | Net gains on mortgage | Net | Total | |||||||||||||||
loans held for sale at | servicing | loans held for sale at | servicing | |||||||||||||||||
fair value | fees | fair value | fees | |||||||||||||||||
(in thousands) | ||||||||||||||||||||
Assets: | ||||||||||||||||||||
Mortgage loans held for sale at fair value | $ | 63,076 | $ | — | $ | 63,076 | $ | (6,060 | ) | $ | — | $ | (6,060 | ) | ||||||
Mortgage servicing rights at fair value | — | (11,535 | ) | (11,535 | ) | — | (1,575 | ) | (1,575 | ) | ||||||||||
$ | 63,076 | $ | (11,535 | ) | $ | 51,541 | $ | (6,060 | ) | $ | (1,575 | ) | $ | (7,635 | ) | |||||
Liabilities: | ||||||||||||||||||||
Excess servicing spread financing at fair value payable to PennyMac Mortgage Investment Trust | $ | — | $ | 9,539 | $ | 9,539 | $ | — | $ | (29 | ) | $ | (29 | ) | ||||||
Mortgage servicing liabilities | — | 1,730 | 1,730 | — | — | — | ||||||||||||||
$ | — | $ | 11,269 | $ | 11,269 | $ | — | $ | (29 | ) | $ | (29 | ) | |||||||
Nine months ended September 30, | ||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
Net gains on mortgage | Net | Total | Net gains on mortgage | Net | Total | |||||||||||||||
loans held for sale at | servicing | loans held for sale at | servicing | |||||||||||||||||
fair value | fees | fair value | fees | |||||||||||||||||
(in thousands) | ||||||||||||||||||||
Assets: | ||||||||||||||||||||
Mortgage loans held for sale at fair value | $ | 180,971 | $ | — | $ | 180,971 | $ | 12,428 | $ | — | $ | 12,428 | ||||||||
Mortgage servicing rights at fair value | — | (34,255 | ) | (34,255 | ) | — | (1,781 | ) | (1,781 | ) | ||||||||||
$ | 180,971 | $ | (34,255 | ) | $ | 146,716 | $ | 12,428 | $ | (1,781 | ) | $ | 10,647 | |||||||
Liabilities: | ||||||||||||||||||||
Excess servicing spread financing at fair value payable to PennyMac Mortgage Investment Trust | $ | — | $ | 24,392 | $ | 24,392 | $ | — | $ | (29 | ) | $ | (29 | ) | ||||||
Mortgage servicing liabilities | — | (4,091 | ) | (4,091 | ) | — | — | — | ||||||||||||
$ | — | $ | 20,301 | $ | 20,301 | $ | — | $ | (29 | ) | $ | (29 | ) | |||||||
Schedule of fair value and related principal amounts due upon maturity of assets and liabilities accounted for under the fair value option | ' | |||||||||||||||||||
September 30, 2014 | ||||||||||||||||||||
Fair | Principal amount | Difference | ||||||||||||||||||
value | due upon maturity | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Mortgage loans held for sale: | ||||||||||||||||||||
Current through 89 days delinquent | $ | 987,985 | $ | 935,173 | $ | 52,812 | ||||||||||||||
90 days or more delinquent: | ||||||||||||||||||||
Not in foreclosure | 188,908 | 190,910 | (2,002 | ) | ||||||||||||||||
In foreclosure | 83,098 | 83,313 | (215 | ) | ||||||||||||||||
$ | 1,259,991 | $ | 1,209,396 | $ | 50,595 | |||||||||||||||
December 31, 2013 | ||||||||||||||||||||
Fair | Principal amount | Difference | ||||||||||||||||||
value | due upon maturity | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Mortgage loans held for sale: | ||||||||||||||||||||
Current through 89 days delinquent | $ | 524,665 | $ | 504,705 | $ | 19,960 | ||||||||||||||
90 days or more delinquent: | ||||||||||||||||||||
Not in foreclosure | 5,567 | 5,479 | 88 | |||||||||||||||||
In foreclosure | 772 | 660 | 112 | |||||||||||||||||
$ | 531,004 | $ | 510,844 | $ | 20,160 | |||||||||||||||
Summary of financial statement items measured at estimated fair value on a nonrecurring basis | ' | |||||||||||||||||||
September 30, 2014 | ||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||
(in thousands) | ||||||||||||||||||||
Mortgage servicing rights at lower of amortized cost or fair value | $ | — | $ | — | $ | 240,403 | $ | 240,403 | ||||||||||||
$ | — | $ | — | $ | 240,403 | $ | 240,403 | |||||||||||||
December 31, 2013 | ||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||
(in thousands) | ||||||||||||||||||||
Mortgage servicing rights at lower of amortized cost or fair value | $ | — | $ | — | $ | 136,690 | $ | 136,690 | ||||||||||||
$ | — | $ | — | $ | 136,690 | $ | 136,690 | |||||||||||||
Summary of total gains (losses) on assets measured at estimated fair values on a nonrecurring basis | ' | |||||||||||||||||||
Quarter ended September 30, | Nine months ended September 30, | |||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||
(in thousands) | ||||||||||||||||||||
Mortgage servicing rights at lower of amortized cost or fair value | $ | (925 | ) | $ | (1,164 | ) | $ | (5,132 | ) | $ | (521 | ) | ||||||||
$ | (925 | ) | $ | (1,164 | ) | $ | (5,132 | ) | $ | (521 | ) | |||||||||
Schedule of key inputs used in determining the fair value of ESS financing | ' | |||||||||||||||||||
Key inputs | September 30, | December 31, | ||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
Unpaid principal balance of underlying loans (in thousands) | $27,702,102 | $20,512,659 | ||||||||||||||||||
Average servicing fee rate (in basis points) | 31 | 32 | ||||||||||||||||||
Average excess servicing spread (in basis points) | 16 | 16 | ||||||||||||||||||
Pricing spread (1) | ||||||||||||||||||||
Range | 1.7% - 11.8% | 2.8% - 14.4% | ||||||||||||||||||
Weighted average | 5.00% | 5.40% | ||||||||||||||||||
Average life (in years) | ||||||||||||||||||||
Range | 0.4 - 7.3 | 0.9 - 8.0 | ||||||||||||||||||
Weighted average | 5.8 | 6.1 | ||||||||||||||||||
Annualized prepayment speed (2) | ||||||||||||||||||||
Range | 7.6% - 72.4% | 7.7% - 48.6% | ||||||||||||||||||
Weighted average | 10.80% | 9.70% | ||||||||||||||||||
-1 | Pricing spread represents a margin that is applied to a reference interest rate’s forward rate curve to develop periodic discount rates. The Company applies a pricing spread to the United States LIBOR curve for purposes of discounting cash flows relating to ESS. | |||||||||||||||||||
-2 | Prepayment speed is measured using Life Total CPR. | |||||||||||||||||||
Interest rate lock commitments | ' | |||||||||||||||||||
Fair Value | ' | |||||||||||||||||||
Summary of roll forward of items measured using Level 3 inputs on a recurring basis | ' | |||||||||||||||||||
Excess servicing | ||||||||||||||||||||
spread financing | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Liability: | ||||||||||||||||||||
Balance, December 31, 2012 | $ | — | ||||||||||||||||||
Proceeds received from excess servicing spread financing | 2,828 | |||||||||||||||||||
Repayments | — | |||||||||||||||||||
Changes in fair value included in income | 29 | |||||||||||||||||||
Balance, September 30, 2013 | $ | 2,857 | ||||||||||||||||||
Changes in fair value recognized during the period relating to liability still held at September 30, 2013 | $ | 29 | ||||||||||||||||||
Quantitative summary of key inputs or assumptions used in the valuation of financial statement items | ' | |||||||||||||||||||
Key inputs | September 30, 2014 | December 31, 2013 | ||||||||||||||||||
Pull-through rate | ||||||||||||||||||||
Range | 61.2% - 99.0% | 62.1% - 98.1% | ||||||||||||||||||
Weighted average | 79.70% | 81.70% | ||||||||||||||||||
Mortgage servicing rights value expressed as: | ||||||||||||||||||||
Servicing fee multiple | ||||||||||||||||||||
Range | 1.7 - 5.0 | 2.0 - 5.0 | ||||||||||||||||||
Weighted average | 3.8 | 3.7 | ||||||||||||||||||
Percentage of unpaid principal balance | ||||||||||||||||||||
Range | 0.4% - 2.5% | 0.4% - 2.4% | ||||||||||||||||||
Weighted average | 1.20% | 0.90% | ||||||||||||||||||
Mortgage servicing rights | ' | |||||||||||||||||||
Fair Value | ' | |||||||||||||||||||
Quantitative summary of key inputs or assumptions used in the valuation of financial statement items | ' | |||||||||||||||||||
Quarter ended September 30, | ||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
Fair | Amortized | Fair | Amortized | |||||||||||||||||
value | cost | value | cost | |||||||||||||||||
(Amount recognized and unpaid princiapl balance of underlying mortgage loans in | ||||||||||||||||||||
thousands) | ||||||||||||||||||||
MSR and pool characteristics: | ||||||||||||||||||||
Amount recognized | $6,381 | $54,819 | $4,157 | $55,981 | ||||||||||||||||
Unpaid principal balance of underlying mortgage loans | $515,866 | $4,498,619 | $315,869 | $4,120,962 | ||||||||||||||||
Weighted-average servicing fee rate (in basis points) | 34 | 31 | 31 | 30 | ||||||||||||||||
Inputs: | ||||||||||||||||||||
Pricing spread (1) | ||||||||||||||||||||
Range | 8.0% - 15.4% | 7.5% - 15.2% | 7.4% - 13.1% | 5.4% - 15.9% | ||||||||||||||||
Weighted average | 11.60% | 10.90% | 9.90% | 8.20% | ||||||||||||||||
Annual total prepayment speed (2) | ||||||||||||||||||||
Range | 7.6% - 42.3% | 7.6% - 47.8% | 8.8% - 17.2% | 8.5% - 14.7% | ||||||||||||||||
Weighted average | 9.70% | 8.30% | 9.20% | 8.80% | ||||||||||||||||
Life (in years) | ||||||||||||||||||||
Range | 1.6 – 7.3 | 1.4 – 7.3 | 3.6 – 7.0 | 2.9 – 6.9 | ||||||||||||||||
Weighted average | 6.7 | 7.1 | 6.9 | 6.7 | ||||||||||||||||
Per-loan annual cost of servicing | ||||||||||||||||||||
Range | $54 – $93 | $54 – $93 | $68 – $120 | $68 – $120 | ||||||||||||||||
Weighted average | $83 | $85 | $101 | $104 | ||||||||||||||||
-1 | Pricing spread represents a margin that is applied to a reference interest rate’s forward rate curve to develop periodic discount rates. The Company applies a pricing spread to the United States Dollar London Interbank Offering Rate (“LIBOR”) curve for purposes of discounting cash flows relating to MSRs acquired as proceeds from the sale of mortgage loans. | |||||||||||||||||||
-2 | Prepayment speed is measured using Life Total CPR. | |||||||||||||||||||
Nine months ended September 30, | ||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
Fair | Amortized | Fair | Amortized | |||||||||||||||||
value | cost | value | cost | |||||||||||||||||
(Amount recognized and unpaid principal balance of underlying mortgage loans in | ||||||||||||||||||||
thousands) | ||||||||||||||||||||
MSR and pool characteristics: | ||||||||||||||||||||
Amount recognized | $20,647 | $127,727 | $4,177 | $150,175 | ||||||||||||||||
Unpaid principal balance of underlying mortgage loans | $1,627,529 | $10,672,629 | $318,066 | $12,350,104 | ||||||||||||||||
Weighted-average servicing fee rate (in basis points) | 33 | 31 | 31 | 29 | ||||||||||||||||
Inputs: | ||||||||||||||||||||
Pricing spread (1) | ||||||||||||||||||||
Range | 8.0% - 16.2% | 6.8% - 15.2% | 7.4% - 13.1% | 5.4% - 15.9% | ||||||||||||||||
Weighted average | 11.40% | 10.80% | 9.90% | 8.20% | ||||||||||||||||
Annual total prepayment speed (2) | ||||||||||||||||||||
Range | 7.6% - 42.3% | 7.6% - 47.8% | 8.8% - 17.2% | 8.5% - 18.5% | ||||||||||||||||
Weighted average | 9.00% | 8.20% | 9.20% | 8.80% | ||||||||||||||||
Life (in years) | ||||||||||||||||||||
Range | 1.6 – 7.5 | 1.4 – 7.5 | 3.6 – 7.0 | 2.9 – 6.9 | ||||||||||||||||
Weighted average | 7 | 7.1 | 6.9 | 6.7 | ||||||||||||||||
Per-loan annual cost of servicing | ||||||||||||||||||||
Range | $53 – $100 | $53 – $100 | $68 – $120 | $68 – $120 | ||||||||||||||||
Weighted average | $89 | $90 | $101 | $102 | ||||||||||||||||
(1)Pricing spread represents a margin that is applied to a reference interest rate’s forward rate curve to develop periodic discount rates. The Company applies a pricing spread to the United States Dollar LIBOR curve for purposes of discounting cash flows relating to MSRs acquired as proceeds from the sale of mortgage loans. | ||||||||||||||||||||
(2)Prepayment speed is measured using Life Total CPR. | ||||||||||||||||||||
Purchased MSRs Backed by Distressed Mortgage Loans | ' | |||||||||||||||||||
Fair Value | ' | |||||||||||||||||||
Quantitative summary of key inputs used in the valuation of the MSRs at period end and the effect on estimated fair value from adverse changes in those assumptions | ' | |||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||
Fair | Amortized | |||||||||||||||||||
value | cost | |||||||||||||||||||
(Carrying value, unpaid principal balance of underlying mortgage | ||||||||||||||||||||
loans and effect on fair value amounts in thousands) | ||||||||||||||||||||
MSR and pool characteristics: | ||||||||||||||||||||
Carrying value | $10,129 | — | ||||||||||||||||||
Unpaid principal balance of underlying mortgage loans | $969,794 | — | ||||||||||||||||||
Weighted-average note interest rate | 5.80% | — | ||||||||||||||||||
Weighted-average servicing fee rate (in basis points) | 50 | — | ||||||||||||||||||
Inputs: | ||||||||||||||||||||
Discount rate | ||||||||||||||||||||
Range | 15.3% – 15.3% | — | ||||||||||||||||||
Weighted average | 15.30% | — | ||||||||||||||||||
Effect on fair value of: | ||||||||||||||||||||
5% adverse change | ($251) | — | ||||||||||||||||||
10% adverse change | ($490) | — | ||||||||||||||||||
20% adverse change | ($937) | — | ||||||||||||||||||
Life (in years) | ||||||||||||||||||||
Range | 5.0 - 5.0 | — | ||||||||||||||||||
Weighted average | 5 | |||||||||||||||||||
Prepayment speed (1) | ||||||||||||||||||||
Range | 11.4% – 11.4% | — | ||||||||||||||||||
Weighted average | 11.40% | — | ||||||||||||||||||
Effect on fair value of: | ||||||||||||||||||||
5% adverse change | ($231) | — | ||||||||||||||||||
10% adverse change | ($456) | — | ||||||||||||||||||
20% adverse change | ($898) | — | ||||||||||||||||||
Per-loan annual cost of servicing | ||||||||||||||||||||
Range | $218 – $218 | — | ||||||||||||||||||
Weighted average | $218 | — | ||||||||||||||||||
Effect on fair value of: | ||||||||||||||||||||
5% adverse change | ($197) | — | ||||||||||||||||||
10% adverse change | ($393) | — | ||||||||||||||||||
20% adverse change | ($787) | — | ||||||||||||||||||
-1 | Prepayment speed is measured using Life Voluntary CPR. | |||||||||||||||||||
Other Mortgage Servicing Rights [Member] | ' | |||||||||||||||||||
Fair Value | ' | |||||||||||||||||||
Quantitative summary of key inputs used in the valuation of the MSRs at period end and the effect on estimated fair value from adverse changes in those assumptions | ' | |||||||||||||||||||
September 30, 2014 | December 31, 2013 | |||||||||||||||||||
Fair | Amortized | Fair | Amortized | |||||||||||||||||
value | cost | value | cost | |||||||||||||||||
(Carrying value, unpaid principal balance of underlying mortgage loans and effect on | ||||||||||||||||||||
fair value amounts in thousands) | ||||||||||||||||||||
MSR and pool characteristics: | ||||||||||||||||||||
Carrying value | $319,149 | $358,264 | $214,784 | $258,751 | ||||||||||||||||
Unpaid principal balance of underlying mortgage loans | $30,200,789 | $30,664,622 | $22,469,179 | $22,499,847 | ||||||||||||||||
Weighted-average note interest rate | 4.27% | 3.80% | 4.48% | 3.65% | ||||||||||||||||
Weighted-average servicing fee rate (in basis points) | 31 | 29 | 32 | 29 | ||||||||||||||||
Inputs: | ||||||||||||||||||||
Pricing spread (1) | ||||||||||||||||||||
Range | 2.9% – 20.1% | 6.3% – 15.4% | 2.9% – 18.0% | 6.3% – 14.5% | ||||||||||||||||
Weighted average | 9.00% | 10.00% | 7.50% | 8.70% | ||||||||||||||||
Effect on fair value of: | ||||||||||||||||||||
5% adverse change | ($5,523) | ($8,137) | ($3,551) | ($5,312) | ||||||||||||||||
10% adverse change | ($10,850) | ($15,943) | ($6,900) | ($10,395) | ||||||||||||||||
20% adverse change | ($20,961) | ($30,637) | ($13,305) | ($20,039) | ||||||||||||||||
Average life (in years) | ||||||||||||||||||||
Range | 0.4 – 8.2 | 1.5 – 7.3 | 0.1 – 14.4 | 1.5 – 7.3 | ||||||||||||||||
Weighted average | 5.9 | 6.8 | 6.2 | 7 | ||||||||||||||||
Prepayment speed (2) | ||||||||||||||||||||
Range | 7.6% – 57.6% | 7.6% – 45.2% | 7.8% – 50.8% | 7.6% – 42.5% | ||||||||||||||||
Weighted average | 10.70% | 8.40% | 9.70% | 8.00% | ||||||||||||||||
Effect on fair value of: | ||||||||||||||||||||
5% adverse change | ($6,911) | ($6,313) | ($4,622) | ($4,615) | ||||||||||||||||
10% adverse change | ($13,564) | ($12,441) | ($9,073) | ($9,097) | ||||||||||||||||
20% adverse change | ($26,151) | ($24,173) | ($17,500) | ($17,684) | ||||||||||||||||
Per-loan annual cost of servicing | ||||||||||||||||||||
Range | $62 – $115 | $62 – $79 | $68 – $115 | $68 – $100 | ||||||||||||||||
Weighted average | $81 | $78 | $87 | $99 | ||||||||||||||||
Effect on fair value of: | ||||||||||||||||||||
5% adverse change | ($3,041) | ($2,706) | ($2,817) | ($2,609) | ||||||||||||||||
10% adverse change | ($6,082) | ($5,411) | ($5,633) | ($5,217) | ||||||||||||||||
20% adverse change | ($12,165) | ($10,822) | ($11,266) | ($10,434) | ||||||||||||||||
-1 | Pricing spread represents a margin that is applied to a reference interest rate’s forward curve to develop periodic discount rates. The Company applies a pricing spread to the United States Dollar LIBOR curve for purposes of discounting cash flows relating to MSRs acquired as proceeds from the sale of mortgage loans and purchased MSRs not backed by pools of distressed mortgage loans. | |||||||||||||||||||
-2 | Prepayment speed is measured using Life Total CPR. | |||||||||||||||||||
Mortgage loans held for sale | ' | |||||||||||||||||||
Fair Value | ' | |||||||||||||||||||
Quantitative summary of key inputs or assumptions used in the valuation of financial statement items | ' | |||||||||||||||||||
Key inputs | September 30, 2014 | December 31, 2013 | ||||||||||||||||||
Discount rate | ||||||||||||||||||||
Range | 2.2% - 7.8% | 7.8% - 13.4% | ||||||||||||||||||
Weighted average | 2.30% | 8.90% | ||||||||||||||||||
Twelve-month projected housing price index change | ||||||||||||||||||||
Range | 0.2% - 8.2% | 4.5% - 4.7% | ||||||||||||||||||
Weighted average | 4.50% | 4.60% | ||||||||||||||||||
Prepayment/resale speed (1) | ||||||||||||||||||||
Range | 7.6% - 14.8% | 1.6% - 5.1% | ||||||||||||||||||
Weighted average | 14.70% | 4.40% | ||||||||||||||||||
Total prepayment speed (2) | ||||||||||||||||||||
Range | 7.6% - 36.8% | 2.9% - 5.2% | ||||||||||||||||||
Weighted average | 35.20% | 4.70% | ||||||||||||||||||
-1 | Prepayment/resale speed is measured using Life Voluntary Conditional Prepayment Rate (“CPR”). | |||||||||||||||||||
-2 | Total prepayment speed is measured using Life Total CPR. | |||||||||||||||||||
Mortgage_Loans_Held_for_Sale_a1
Mortgage Loans Held for Sale at Fair Value (Tables) | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Mortgage Loans Held for Sale at Fair Value | ' | |||||||
Summary of mortgage loans held for sale at fair value | ' | |||||||
September 30, | December 31, | |||||||
2014 | 2013 | |||||||
(in thousands) | ||||||||
Government-insured or guaranteed | $ | 895,952 | $ | 482,066 | ||||
Conventional conforming | 76,119 | 45,005 | ||||||
Jumbo | 1,864 | — | ||||||
Mortgage loans purchased from Ginnie Mae pools serviced by the Company | 282,572 | — | ||||||
Mortgage loans repurchased pursuant to representations and warranties | 3,484 | 3,933 | ||||||
$ | 1,259,991 | $ | 531,004 | |||||
Fair value of mortgage loans pledged to secure mortgage loans sold under agreements to repurchase | $ | 1,087,425 | $ | 512,350 | ||||
Fair value of mortgage loans pledged to secure mortgage loan participation and sale agreement | $ | 146,798 | $ | — | ||||
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Tables) | 9 Months Ended | |||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||
Derivative Financial Instruments | ' | |||||||||||||||||
Summary of derivative financial instruments | ' | |||||||||||||||||
September 30, 2014 | December 31, 2013 | |||||||||||||||||
Fair value | Fair value | |||||||||||||||||
Instrument | Notional | Derivative | Derivative | Notional | Derivative | Derivative | ||||||||||||
amount | assets | liabilities | amount | assets | liabilities | |||||||||||||
(in thousands) | ||||||||||||||||||
Derivatives not designated as hedging instruments | ||||||||||||||||||
Free-standing derivatives: | ||||||||||||||||||
Interest rate lock commitments | 1,740,376 | $ | 23,691 | $ | 1,055 | 971,783 | $ | 8,964 | $ | 2,203 | ||||||||
Forward purchase contracts | 2,804,597 | 5,686 | 645 | 1,418,527 | 416 | 6,542 | ||||||||||||
Forward sales contracts | 4,299,329 | 1,273 | 9,655 | 2,659,000 | 18,762 | 504 | ||||||||||||
MBS put options | 430,000 | 625 | — | 185,000 | 665 | — | ||||||||||||
MBS call options | 50,000 | 227 | — | 105,000 | 91 | — | ||||||||||||
Put options on Eurodollar futures | 795,000 | 1,713 | — | — | — | |||||||||||||
Call options on Eurodollar futures | 450,000 | 1,050 | — | — | — | |||||||||||||
Total derivatives before netting | 34,265 | 11,355 | 28,898 | 9,249 | ||||||||||||||
Netting | (5,865 | ) | (6,915 | ) | (7,358 | ) | (6,787 | ) | ||||||||||
$ | 28,400 | $ | 4,440 | $ | 21,540 | $ | 2,462 | |||||||||||
Summary of the notional value activity for derivative contracts used to hedge the IRLCs and inventory of mortgage loans held for sale at fair value and MSRs | ' | |||||||||||||||||
Quarter ended September 30, 2014 | ||||||||||||||||||
Period/Instrument | Balance | Additions | Dispositions/ | Balance | ||||||||||||||
beginning | expirations | end of period | ||||||||||||||||
of period | ||||||||||||||||||
(in thousands) | ||||||||||||||||||
Forward purchase contracts | 2,789,277 | 12,668,171 | (12,652,851 | ) | 2,804,597 | |||||||||||||
Forward sales contracts | 4,617,100 | 17,409,056 | (17,726,827 | ) | 4,299,329 | |||||||||||||
MBS put options | 225,000 | 505,000 | (300,000 | ) | 430,000 | |||||||||||||
MBS call options | 95,000 | 50,000 | (95,000 | ) | 50,000 | |||||||||||||
Put options on Eurodollar futures | 377,500 | 1,320,000 | (902,500 | ) | 795,000 | |||||||||||||
Call options on Eurodollar futures | 170,000 | 675,000 | (395,000 | ) | 450,000 | |||||||||||||
Treasury future purchase contracts | — | 65,600 | (65,600 | ) | — | |||||||||||||
Treasury future sale contracts | — | 78,200 | (78,200 | ) | — | |||||||||||||
Call options on futures | — | 35,000 | (35,000 | ) | — | |||||||||||||
Quarter ended September 30, 2013 | ||||||||||||||||||
Period/Instrument | Balance | Additions | Dispositions/ | Balance | ||||||||||||||
beginning | expirations | end | ||||||||||||||||
of period | of period | |||||||||||||||||
(in thousands) | ||||||||||||||||||
Forward purchase contracts | 2,071,590 | 13,386,366 | (13,877,522 | ) | 1,580,434 | |||||||||||||
Forward sales contracts | 4,226,940 | 18,727,428 | (19,867,479 | ) | 3,086,889 | |||||||||||||
MBS put options | 260,000 | 50,000 | (310,000 | ) | — | |||||||||||||
MBS call options | 625,000 | 300,000 | (925,000 | ) | — | |||||||||||||
Nine months ended September 30, 2014 | ||||||||||||||||||
Period/Instrument | Balance | Additions | Dispositions/ | Balance | ||||||||||||||
beginning | expirations | end of period | ||||||||||||||||
of period | ||||||||||||||||||
(in thousands) | ||||||||||||||||||
Forward purchase contracts | 1,418,527 | 30,178,842 | (28,792,772 | ) | 2,804,597 | |||||||||||||
Forward sales contracts | 2,659,000 | 43,791,245 | (42,150,916 | ) | 4,299,329 | |||||||||||||
MBS put options | 185,000 | 1,145,000 | (900,000 | ) | 430,000 | |||||||||||||
MBS call options | 105,000 | 590,000 | (645,000 | ) | 50,000 | |||||||||||||
Put options on Eurodollar futures | — | 2,022,500 | (1,227,500 | ) | 795,000 | |||||||||||||
Call options on Eurodollar futures | — | 1,055,000 | (605,000 | ) | 450,000 | |||||||||||||
Treasury future purchase contracts | — | 143,900 | (143,900 | ) | — | |||||||||||||
Treasury future sale contracts | — | 165,600 | (165,600 | ) | — | |||||||||||||
Call options on futures | — | 35,000 | (35,000 | ) | — | |||||||||||||
Nine months ended September 30, 2013 | ||||||||||||||||||
Period/Instrument | Balance | Additions | Dispositions/ | Balance | ||||||||||||||
beginning | expirations | end | ||||||||||||||||
of period | of period | |||||||||||||||||
(in thousands) | ||||||||||||||||||
Forward purchase contracts | 1,021,981 | 35,012,198 | (34,453,745 | ) | 1,580,434 | |||||||||||||
Forward sales contracts | 2,621,948 | 51,199,986 | (50,735,045 | ) | 3,086,889 | |||||||||||||
MBS put options | 500,000 | 2,210,000 | (2,710,000 | ) | — | |||||||||||||
MBS call options | — | 2,100,000 | (2,100,000 | ) | — | |||||||||||||
Mortgage_Servicing_Rights_Tabl
Mortgage Servicing Rights (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
Mortgage Servicing Assets and Liabilities | ' | |||||||||||||
Schedule of activity in MSRs carried at fair value | ' | |||||||||||||
Quarter ended September 30, | Nine months ended September 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
(in thousands) | ||||||||||||||
Balance at beginning of period | $ | 308,599 | $ | 23,070 | $ | 224,913 | $ | 19,798 | ||||||
Additions: | ||||||||||||||
Purchases | 15,704 | 1,116 | 113,348 | 5,124 | ||||||||||
Mortgage servicing rights resulting from mortgage loan sales | 6,381 | 4,157 | 20,647 | 4,177 | ||||||||||
22,085 | 5,273 | 133,995 | 9,301 | |||||||||||
Sales | — | — | (10,916 | ) | (550 | ) | ||||||||
Change in fair value due to: | ||||||||||||||
Changes in valuation inputs or assumptions used in valuation model (1) | (544 | ) | (635 | ) | (989 | ) | 1,233 | |||||||
Other changes in fair value (2) | (10,991 | ) | (940 | ) | (27,854 | ) | (3,014 | ) | ||||||
Total change in fair value | (11,535 | ) | (1,575 | ) | (28,843 | ) | (1,781 | ) | ||||||
Balance at end of period | $ | 319,149 | $ | 26,768 | $ | 319,149 | $ | 26,768 | ||||||
-1 | Principally reflects changes in discount rates and prepayment speed assumptions, primarily due to changes in interest rates. | |||||||||||||
-2 | Represents changes due to realization of cash flows. | |||||||||||||
Schedule of activity in MSRs carried at lower of amortized cost or fair value | ' | |||||||||||||
Quarter ended September 30, | Nine months ended September 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
(in thousands) | ||||||||||||||
Amortized cost: | ||||||||||||||
Balance at beginning of period | $ | 321,911 | $ | 179,003 | $ | 263,373 | $ | 92,155 | ||||||
Mortgage servicing rights resulting from mortgage loan sales | 54,819 | 55,981 | 127,727 | 150,175 | ||||||||||
Amortization | (8,712 | ) | (5,367 | ) | (23,082 | ) | (12,713 | ) | ||||||
Application of valuation allowance to write down mortgage servicing rights with other-than- temporary impairment | — | — | — | — | ||||||||||
Balance at end of period | 368,018 | 229,617 | 368,018 | 229,617 | ||||||||||
Valuation allowance: | ||||||||||||||
Balance at beginning of period | (8,829 | ) | (2,335 | ) | (4,622 | ) | (2,978 | ) | ||||||
Additions | (925 | ) | (1,192 | ) | (5,132 | ) | (549 | ) | ||||||
Application of valuation allowance to write down mortgage servicing rights with other-than- temporary impairment | — | — | — | — | ||||||||||
Balance at end of period | (9,754 | ) | (3,527 | ) | (9,754 | ) | (3,527 | ) | ||||||
Mortgage servicing rights, net | $ | 358,264 | $ | 226,090 | $ | 358,264 | $ | 226,090 | ||||||
Fair value of mortgage servicing rights at end of period | $ | 368,270 | $ | 239,326 | ||||||||||
Summary of estimate of future amortization of existing MSRs | ' | |||||||||||||
Estimated MSR | ||||||||||||||
Twelve-month period ending September 30, | amortization | |||||||||||||
(in thousands) | ||||||||||||||
2015 | $ | 34,263 | ||||||||||||
2016 | 34,574 | |||||||||||||
2017 | 33,591 | |||||||||||||
2018 | 31,574 | |||||||||||||
2019 | 28,848 | |||||||||||||
Thereafter | 205,168 | |||||||||||||
$ | 368,018 | |||||||||||||
Summary of servicing fees, late fees and ancillary and other fees relating to MSRs recorded on the consolidated statements of income | ' | |||||||||||||
Quarter ended September 30, | Nine months ended September 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
(in thousands) | ||||||||||||||
Contractual servicing fees | $ | 44,647 | $ | 14,596 | $ | 124,061 | $ | 35,397 | ||||||
Ancillary and other fees | ||||||||||||||
Late charges | 1,171 | 527 | 3,021 | 1,336 | ||||||||||
Other | 361 | 140 | 785 | 374 | ||||||||||
$ | 46,179 | $ | 15,263 | $ | 127,867 | $ | 37,107 | |||||||
Schedule of activity in mortgage servicing liability carried at fair value | ' | |||||||||||||
Quarter ended | Nine months ended | |||||||||||||
September 30, 2014 | ||||||||||||||
(in thousands) | ||||||||||||||
Amortized cost: | ||||||||||||||
Balance at beginning of period | $ | 5,821 | $ | — | ||||||||||
Additions | — | — | ||||||||||||
Change in fair value | (1,730 | ) | 4,091 | |||||||||||
Balance at end of period | $ | 4,091 | $ | 4,091 | ||||||||||
-1 | Principally reflects changes in discount rates and prepayment speed inputs, primarily due to changes in interest rates. | |||||||||||||
-2 | Represents changes due to realization of cash flows. | |||||||||||||
Carried_Interest_Due_from_Inve1
Carried Interest Due from Investment Funds (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
Carried Interest Due from Investment Funds | ' | |||||||||||||
Summary of activity in the Company's Carried interest due from Investment Funds | ' | |||||||||||||
Quarter ended September 30, | Nine months ended September 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
(in thousands) | ||||||||||||||
Balance at beginning of period | $ | 65,133 | $ | 55,322 | $ | 61,142 | $ | 47,723 | ||||||
Carried Interest recognized during the period | 1,902 | 2,812 | 5,893 | 10,411 | ||||||||||
Proceeds received during the period | — | — | — | — | ||||||||||
Balance at end of period | $ | 67,035 | $ | 58,134 | $ | 67,035 | $ | 58,134 | ||||||
Investment_in_PennyMac_Mortgag1
Investment in PennyMac Mortgage Investment Trust at Fair Value (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
Investment in PennyMac Mortgage Investment Trust at Fair Value | ' | |||||||||||||
Summary of change in fair value of investment in and dividends received from PennyMac Mortgage Investment Trust | ' | |||||||||||||
Quarter ended September 30, | Nine months ended September 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
(in thousands) | ||||||||||||||
Dividends | $ | 46 | $ | 43 | $ | 135 | $ | 128 | ||||||
Change in fair value | (38 | ) | 122 | (115 | ) | (196 | ) | |||||||
$ | 8 | $ | 165 | $ | 20 | $ | (68 | ) | ||||||
Fair value of PennyMac Mortgage Investment Trust shares at period end | $ | 1,607 | $ | 1,701 | ||||||||||
Borrowings_Tables
Borrowings (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
Borrowings | ' | |||||||||||||
Summary of financial data pertaining to mortgage loans sold under agreements to repurchase | ' | |||||||||||||
Quarter ended September 30, | Nine months ended September 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
(in thousands) | ||||||||||||||
Period end: | ||||||||||||||
Balance | $ | 929,747 | $ | 387,883 | ||||||||||
Unused amount (1) | $ | 570,253 | $ | 612,117 | ||||||||||
Weighted average interest rate | 1.73 | % | 1.82 | % | ||||||||||
Fair value of mortgage loans securing agreements to repurchase | $ | 1,087,425 | $ | 522,031 | ||||||||||
During the period: | ||||||||||||||
Average balance of mortgage loans sold under agreements to repurchase | $ | 691,730 | $ | 373,386 | $ | 505,072 | $ | 354,125 | ||||||
Weighted average interest rate (2) | 1.83 | % | 1.89 | % | 1.82 | % | 2.02 | % | ||||||
Total interest expense | $ | 4,495 | $ | 2,920 | $ | 10,506 | $ | 8,251 | ||||||
Maximum daily amount outstanding | $ | 1,010,146 | $ | 588,494 | $ | 1,010,146 | $ | 623,523 | ||||||
-1 | The amount the Company is able to borrow under loan repurchase agreements is tied to the fair value of unencumbered mortgage loans eligible to secure those agreements and the Company’s ability to fund the agreements’ margin requirements relating to the mortgage loans sold. | |||||||||||||
-2 | Excludes the effect of amortization of commitment fees totaling $1.3 million and $1.1 million for the quarters ended September 30, 2014 and 2013, respectively, and $3.5 million and $2.8 million for the nine-month periods ended September 30, 2014 and 2013, respectively. | |||||||||||||
Summary of maturities of outstanding advances under repurchase agreements by maturity date | ' | |||||||||||||
Remaining maturity at September 30, 2014 | Balance | |||||||||||||
(in thousands) | ||||||||||||||
Within 30 days | $ | 6,479 | ||||||||||||
Over 30 to 90 days | 922,683 | |||||||||||||
Over 90 days | 585 | |||||||||||||
$ | 929,747 | |||||||||||||
Weighted average maturity (in months) | 1.8 | |||||||||||||
Summary of amount at risk relating to the mortgage loans held for sale sold under agreements to repurchase by counterparty | ' | |||||||||||||
Counterparty | Amount at risk | Weighted average | Facility maturity | |||||||||||
maturity of advances under | ||||||||||||||
repurchase agreement | ||||||||||||||
(in thousands) | ||||||||||||||
Credit Suisse First Boston Mortgage Capital LLC | $ | 105,334 | — | October 31, 2014 | ||||||||||
Bank of America, N.A. | $ | 41,811 | December 21, 2014 | January 30, 2015 | ||||||||||
Morgan Stanley | $ | 11,080 | November 19, 2014 | June 29, 2015 | ||||||||||
Citibank, N.A. | $ | — | — | September 7, 2015 | ||||||||||
Summary of participating mortgage loans | ' | |||||||||||||
September 30, | December 31, | |||||||||||||
2014 | 2013 | |||||||||||||
(in thousands) | ||||||||||||||
Mortgage loan participation and sale agreement secured by mortgage loans | $ | 142,383 | $ | — | ||||||||||
Mortgage loans pledged to secure mortgage loan participation and sale agreement | $ | 146,798 | $ | — | ||||||||||
Summary of note payable | ' | |||||||||||||
September 30, | December 31, | |||||||||||||
2014 | 2013 | |||||||||||||
(in thousands) | ||||||||||||||
Note payable secured by: | ||||||||||||||
Mortgage servicing rights | $ | 154,948 | $ | 48,302 | ||||||||||
Servicing advances | — | 3,852 | ||||||||||||
$ | 154,948 | $ | 52,154 | |||||||||||
Assets pledged to secure note payable: | ||||||||||||||
Mortgage servicing rights | $ | 350,758 | $ | 258,241 | ||||||||||
Servicing advances | $ | — | $ | 5,564 | ||||||||||
Summary of roll forward of Excess Servicing Spread Financing | ' | |||||||||||||
Quarter ended September 30, | Nine months ended September 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
(in thousands) | ||||||||||||||
Balance at beginning of period | $ | 190,244 | $ | — | $ | 138,723 | $ | — | ||||||
Proceeds received from excess servicing spread financing | 9,253 | 2,828 | 82,646 | 2,828 | ||||||||||
ESS issued pursuant to a recapture agreement with PennyMac Mortgage Investment Trust | 2,619 | — | 6,093 | — | ||||||||||
Accrual of interest expense | 3,577 | — | 9,578 | — | ||||||||||
Repayments | (8,786 | ) | — | (25,280 | ) | — | ||||||||
Change in fair value | (9,539 | ) | 29 | (24,392 | ) | 29 | ||||||||
Balance at end of period | $ | 187,368 | $ | 2,857 | $ | 187,368 | $ | 2,857 | ||||||
Liability_for_Losses_Under_Rep1
Liability for Losses Under Representations and Warranties (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
Liability for Losses Under Representations and Warranties | ' | |||||||||||||
Summary of repurchase activity | ' | |||||||||||||
Quarter ended September 30, | Nine months ended September 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
(in thousands) | ||||||||||||||
Balance at beginning of period | $ | 10,178 | $ | 6,185 | $ | 8,123 | $ | 3,504 | ||||||
Provision for losses on loans sold | 1,584 | 1,069 | 3,639 | 3,766 | ||||||||||
Incurred losses | — | (39 | ) | — | (55 | ) | ||||||||
Balance at end of period | $ | 11,762 | $ | 7,215 | $ | 11,762 | $ | 7,215 | ||||||
Unpaid principal balance of mortgage loans subject to representations and warranties at period end | $ | 33,660,189 | $ | 20,428,213 | ||||||||||
Summary of the repurchase activity for representations and warranties | ' | |||||||||||||
Quarter ended September 30, | Nine months ended September 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
(in thousands) | ||||||||||||||
During the period: | ||||||||||||||
Losses charged to liability for representations and warranties | $ | — | $ | 39 | $ | — | $ | 55 | ||||||
Unpaid principal balance of mortgage loans repurchased | $ | 1,003 | $ | 1,973 | $ | 2,715 | $ | 6,840 | ||||||
Unpaid principal balance of repurchased mortgage loans repurchased by correspondent lenders | $ | 447 | $ | 357 | $ | 1,673 | $ | 1,410 | ||||||
Unpaid principal balance of mortgage loans indemnified by PFSI | $ | 713 | $ | — | $ | 1,263 | $ | 77 | ||||||
Period end: | ||||||||||||||
Unpaid principal balance of mortgage loans subject to pending claims for repurchase | $ | 11,603 | $ | 1,249 | ||||||||||
Unpaid principal balance of mortgage loans indemnified by PFSI | $ | 1,263 | $ | 77 | ||||||||||
Unpaid principal balance of mortgage loans subject to representations and warranties | $ | 33,660,189 | $ | 20,428,213 | ||||||||||
Net_Gains_on_Mortgage_Loans_He1
Net Gains on Mortgage Loans Held for Sale (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
Net Gains on Mortgage Loans Held for Sale | ' | |||||||||||||
Net Gains on Mortgage Loans Held for Sale | ' | |||||||||||||
Quarter ended September 30, | Nine months ended September 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
(in thousands) | ||||||||||||||
Cash (loss) gain: | ||||||||||||||
Sales proceeds | $ | 3,965 | $ | (93,725 | ) | $ | 21,499 | $ | (148,866 | ) | ||||
Hedging activities | (12,437 | ) | 88,789 | (48,242 | ) | 128,670 | ||||||||
(8,472 | ) | (4,936 | ) | (26,743 | ) | (20,196 | ) | |||||||
Non-cash gain: | ||||||||||||||
Mortgage servicing rights resulting from mortgage loan sales | 61,200 | 60,138 | 148,374 | 154,352 | ||||||||||
Mortgage servicing rights and excess servicing spread financing recapture payable to PennyMac Mortgage Investment Trust | (2,143 | ) | (86 | ) | (6,567 | ) | (586 | ) | ||||||
Provision for losses relating to representations and warranties on loans sold | (1,584 | ) | (1,069 | ) | (3,639 | ) | (3,766 | ) | ||||||
Change in fair value relating to loans and hedging derivatives held at period end: | ||||||||||||||
Interest rate lock commitments | (7,114 | ) | 37,768 | 15,875 | (2,382 | ) | ||||||||
Mortgage loans | (976 | ) | 27,509 | 10,870 | 7,876 | |||||||||
Hedging derivatives | 7,222 | (93,375 | ) | (15,795 | ) | (26,738 | ) | |||||||
$ | 48,133 | $ | 25,949 | $ | 122,375 | $ | 108,560 | |||||||
Net_Interest_Expense_Tables
Net Interest Expense (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
Net Interest Expense | ' | |||||||||||||
Summary of net interest income (expense) | ' | |||||||||||||
Quarter ended September 30, | Nine months ended September 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
(in thousands) | ||||||||||||||
Interest income: | ||||||||||||||
Short-term investment | $ | 511 | $ | 432 | $ | 1,037 | $ | 635 | ||||||
Mortgage loans held for sale at fair value | 8,464 | 4,661 | 18,300 | 10,675 | ||||||||||
8,975 | 5,093 | 19,337 | 11,310 | |||||||||||
Interest expense: | ||||||||||||||
Mortgage loans sold under agreements to repurchase | 4,495 | 2,920 | 10,506 | 8,251 | ||||||||||
Mortgage loan participation and sale agreement | 39 | — | 39 | — | ||||||||||
Note payable | 1,239 | 681 | 2,759 | 2,326 | ||||||||||
Excess servicing spread financing at fair value payable to PennyMac Mortgage Investment Trust | 3,577 | — | 9,578 | — | ||||||||||
Other | 2,363 | 555 | 3,949 | 1,109 | ||||||||||
11,713 | 4,156 | 26,831 | 11,686 | |||||||||||
$ | (2,738 | ) | $ | 937 | $ | (7,494 | ) | $ | (376 | ) | ||||
Stockbased_Compensation_Tables
Stock-based Compensation (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
Stock-based Compensation | ' | |||||||||||||
Summary of the stock-based compensation expense by instrument awarded | ' | |||||||||||||
Quarter ended September 30, | Nine months ended September 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
(in thousands) | ||||||||||||||
Stock options | $ | 1,353 | $ | 593 | $ | 3,915 | $ | 791 | ||||||
Performance-based RSUs | 61 | 464 | 1,935 | 746 | ||||||||||
Time-based RSUs | 499 | 330 | 1,372 | 395 | ||||||||||
$ | 1,913 | $ | 1,387 | $ | 7,222 | $ | 1,932 | |||||||
Summary of equity awards | ' | |||||||||||||
Quarter ended September 30, 2014 | ||||||||||||||
Stock | Performance- | Time-based | ||||||||||||
options | based RSUs | RSUs | ||||||||||||
(in thousands) | ||||||||||||||
June 30, 2014 | 1,024 | 1,100 | 196 | |||||||||||
Granted | 16 | 180 | 12 | |||||||||||
Vested | — | — | — | |||||||||||
Expired or canceled | (6 | ) | (9 | ) | (3 | ) | ||||||||
September 30, 2014 | 1,034 | 1,271 | 205 | |||||||||||
Quarter ended September 30, 2013 | ||||||||||||||
Stock | Performance- | Time-based | ||||||||||||
options | based RSUs | RSUs | ||||||||||||
(in thousands) | ||||||||||||||
June 30, 2013 | 424 | 500 | 72 | |||||||||||
Granted | — | 27 | ||||||||||||
Vested | — | — | — | |||||||||||
Expired or canceled | (1 | ) | (1 | ) | (1 | ) | ||||||||
September 30, 2013 | 423 | 499 | 98 | |||||||||||
Nine months ended September 30, 2014 | ||||||||||||||
Stock | Performance- | Time-based | ||||||||||||
options | based RSUs | RSUs | ||||||||||||
(in thousands) | ||||||||||||||
December 31, 2013 | 422 | 496 | 100 | |||||||||||
Granted | 769 | 794 | 144 | |||||||||||
Vested | (138 | ) | — | (31 | ) | |||||||||
Expired or canceled | (19 | ) | (19 | ) | (8 | ) | ||||||||
September 30, 2014 | 1,034 | 1,271 | 205 | |||||||||||
Nine months ended September 30, 2013 | ||||||||||||||
Stock | Performance- | Time-based | ||||||||||||
options | based RSUs | RSUs | ||||||||||||
(in thousands) | ||||||||||||||
December 31, 2012 | — | — | — | |||||||||||
Granted | 424 | 500 | 99 | |||||||||||
Vested | — | — | — | |||||||||||
Expired or canceled | (1 | ) | (1 | ) | (1 | ) | ||||||||
September 30, 2013 | 423 | 499 | 98 | |||||||||||
Supplemental_Cash_Flow_Informa1
Supplemental Cash Flow Information (Tables) | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Supplemental Cash Flow Information | ' | |||||||
Schedule of supplemental cash flow information | ' | |||||||
Nine months ended September 30, | ||||||||
2014 | 2013 | |||||||
(in thousands) | ||||||||
Cash paid for interest | $ | 25,724 | $ | 11,110 | ||||
Cash paid for income taxes | $ | 4,715 | $ | 7 | ||||
Non-cash investing activity: | ||||||||
Mortgage servicing rights resulting from mortgage loan sales | $ | 148,374 | $ | 154,352 | ||||
Non-cash financing activity: | ||||||||
Transfer of excess servicing spread pursuant to recapture agreement with PennyMac Mortgage Investment Trust | $ | 6,093 | $ | — | ||||
Issuance of common stock in settlement of director fees | $ | 147 | $ | — | ||||
Regulatory_Net_Worth_and_Agenc1
Regulatory Net Worth and Agency Capital Requirements (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
Regulatory Net Worth and Agency Capital Requirements | ' | |||||||||||||
Summary of agencies' capital requirements by each agency | ' | |||||||||||||
Agency Capital | ||||||||||||||
September 30, 2014 | December 31, 2013 | |||||||||||||
Agency—company subject to requirement | Balance (1) | Requirement | Balance (1) | Requirement | ||||||||||
(in thousands) | ||||||||||||||
Fannie Mae—PLS | $ | 542,020 | $ | 90,616 | $ | 409,552 | $ | 83,148 | ||||||
Freddie Mac—PLS | $ | 542,196 | $ | 3,378 | $ | 409,860 | $ | 3,001 | ||||||
Ginnie Mae: | ||||||||||||||
Issuer—PLS | $ | 488,804 | $ | 106,780 | $ | 388,125 | $ | 102,619 | ||||||
Issuer’s parent—PennyMac | $ | 712,107 | $ | 128,136 | $ | 598,198 | $ | 112,881 | ||||||
HUD—PLS | $ | 488,804 | $ | 2,500 | $ | 388,125 | $ | 2,500 | ||||||
-1 | Calculated in compliance with the respective Agency’s requirements. | |||||||||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 9 Months Ended | ||||
Sep. 30, 2014 | |||||
Commitments and Contingencies. | ' | ||||
Schedule of commitments to fund and sell mortgage loans | ' | ||||
September 30, 2014 | |||||
(in thousands) | |||||
Commitments to purchase mortgage loans from PennyMac Mortgage Investment Trust | $ | 1,020,175 | |||
Commitments to fund mortgage loans | 720,201 | ||||
$ | 1,740,376 | ||||
Commitments to sell mortgage loans | $ | 4,299,329 | |||
Segments_and_Related_Informati1
Segments and Related Information (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Segments and Related Information | ' | ||||||||||||||||
Summary of financial highlights by segment | ' | ||||||||||||||||
Quarter ended September 30, 2014 | |||||||||||||||||
Mortgage banking | Investment | ||||||||||||||||
Production | Servicing | Total | management | Total | |||||||||||||
(in thousands) | |||||||||||||||||
Revenue | |||||||||||||||||
Net gains on mortgage loans held for sale at fair value | $ | 41,308 | $ | 6,825 | $ | 48,133 | $ | — | $ | 48,133 | |||||||
Loan origination fees | 11,823 | — | 11,823 | — | 11,823 | ||||||||||||
Fulfillment fees from PennyMac Mortgage Investment Trust | 15,497 | — | 15,497 | — | 15,497 | ||||||||||||
Net servicing fees | — | 53,908 | 53,908 | — | 53,908 | ||||||||||||
Management fees | — | — | — | 11,379 | 11,379 | ||||||||||||
Carried Interest from Investment Funds | — | — | — | 1,902 | 1,902 | ||||||||||||
Net interest income (expense): | |||||||||||||||||
Interest income | 5,759 | 3,216 | 8,975 | — | 8,975 | ||||||||||||
Interest expense | 3,251 | 8,462 | 11,713 | — | 11,713 | ||||||||||||
2,508 | (5,246 | ) | (2,738 | ) | — | (2,738 | ) | ||||||||||
Other | 478 | 230 | 708 | 13 | 721 | ||||||||||||
Total net revenue | 71,614 | 55,717 | 127,331 | 13,294 | 140,625 | ||||||||||||
Expenses | 32,535 | 38,286 | 70,821 | 7,112 | 77,933 | ||||||||||||
Income before provision for income taxes | $ | 39,079 | $ | 17,431 | $ | 56,510 | $ | 6,182 | $ | 62,692 | |||||||
Segment assets at period end (1) | $ | 1,366,644 | $ | 1,003,742 | $ | 2,370,386 | $ | 110,791 | $ | 2,481,177 | |||||||
-1 | Amount excludes parent Company assets, which consist primarily of deferred tax assets of $52.8 million. | ||||||||||||||||
Quarter ended September 30, 2013 | |||||||||||||||||
Mortgage banking | Investment | ||||||||||||||||
Production | Servicing | Total | management | Total | |||||||||||||
(in thousands) | |||||||||||||||||
Revenue | |||||||||||||||||
Net gains on mortgage loans held for sale at fair value | $ | 25,949 | $ | — | $ | 25,949 | $ | — | $ | 25,949 | |||||||
Loan origination fees | 6,280 | — | 6,280 | — | 6,280 | ||||||||||||
Fulfillment fees from PennyMac Mortgage Investment Trust | 18,327 | — | 18,327 | — | 18,327 | ||||||||||||
Net servicing fees | — | 21,399 | 21,399 | — | 21,399 | ||||||||||||
Management fees | — | — | — | 10,540 | 10,540 | ||||||||||||
Carried Interest from Investment Funds | — | — | — | 2,812 | 2,812 | ||||||||||||
Net interest income (expense): | |||||||||||||||||
Interest income | 5,089 | — | 5,089 | 4 | 5,093 | ||||||||||||
Interest expense | 2,921 | 1,235 | 4,156 | — | 4,156 | ||||||||||||
2,168 | (1,235 | ) | 933 | 4 | 937 | ||||||||||||
Other | 278 | 58 | 336 | 614 | 950 | ||||||||||||
Total net revenue | 53,002 | 20,222 | 73,224 | 13,970 | 87,194 | ||||||||||||
Expenses | 31,956 | 15,416 | 47,372 | 4,905 | 52,277 | ||||||||||||
Income before provision for income taxes | $ | 21,046 | $ | 4,806 | $ | 25,852 | $ | 9,065 | $ | 34,917 | |||||||
Segment assets at period end (1) | $ | 685,202 | $ | 394,124 | $ | 1,079,326 | $ | 119,953 | $ | 1,199,279 | |||||||
-1 | Amount excludes parent Company assets, which consist primarily of deferred tax assets of $54.5 million. | ||||||||||||||||
Nine months ended September 30, 2014 | |||||||||||||||||
Mortgage banking | Investment | ||||||||||||||||
Production | Servicing | Total | management | Total | |||||||||||||
(in thousands) | |||||||||||||||||
Revenue | |||||||||||||||||
Net gains on mortgage loans held for sale at fair value | $ | 113,947 | $ | 8,428 | $ | 122,375 | $ | — | $ | 122,375 | |||||||
Loan origination fees | 29,048 | — | 29,048 | — | 29,048 | ||||||||||||
Fulfillment fees from PennyMac Mortgage Investment Trust | 36,832 | — | 36,832 | — | 36,832 | ||||||||||||
Net servicing fees | — | 154,641 | 154,641 | — | 154,641 | ||||||||||||
Management fees | — | — | — | 32,486 | 32,486 | ||||||||||||
Carried Interest from Investment Funds | — | — | — | 5,893 | 5,893 | ||||||||||||
Net interest income (expense): | |||||||||||||||||
Interest income | 15,562 | 3,770 | 19,332 | 5 | 19,337 | ||||||||||||
Interest expense | 8,652 | 18,179 | 26,831 | — | 26,831 | ||||||||||||
6,910 | (14,409 | ) | (7,499 | ) | 5 | (7,494 | ) | ||||||||||
Other | 1,504 | 1,014 | 2,518 | 253 | 2,771 | ||||||||||||
Total net revenue | 188,241 | 149,674 | 337,915 | 38,637 | 376,552 | ||||||||||||
Expenses | 90,447 | 95,171 | 185,618 | 21,134 | 206,752 | ||||||||||||
Income before provision for income taxes | $ | 97,794 | $ | 54,503 | $ | 152,297 | $ | 17,503 | $ | 169,800 | |||||||
Segment assets at period end (1) | $ | 1,366,644 | $ | 1,003,742 | $ | 2,370,386 | $ | 110,791 | $ | 2,481,177 | |||||||
-1 | Amount excludes parent Company assets, which consist primarily of deferred tax assets of $52.8 million. | ||||||||||||||||
Nine months ended September 30, 2013 | |||||||||||||||||
Mortgage banking | Investment | ||||||||||||||||
Production | Servicing | Total | management | Total | |||||||||||||
(in thousands) | |||||||||||||||||
Revenue | |||||||||||||||||
Net gains on mortgage loans held for sale at fair value | $ | 108,560 | $ | — | $ | 108,560 | $ | — | $ | 108,560 | |||||||
Loan origination fees | 18,260 | — | 18,260 | — | 18,260 | ||||||||||||
Fulfillment fees from PennyMac Mortgage Investment Trust | 68,625 | — | 68,625 | — | 68,625 | ||||||||||||
Net servicing fees | — | 59,510 | 59,510 | — | 59,510 | ||||||||||||
Management fees | — | — | — | 29,375 | 29,375 | ||||||||||||
Carried Interest from Investment Funds | — | — | — | 10,411 | 10,411 | ||||||||||||
Net interest income (expense): | |||||||||||||||||
Interest income | 11,296 | — | 11,296 | 14 | 11,310 | ||||||||||||
Interest expense | 8,491 | 3,195 | 11,686 | — | 11,686 | ||||||||||||
2,805 | (3,195 | ) | (390 | ) | 14 | (376 | ) | ||||||||||
Other | 686 | 177 | 863 | 911 | 1,774 | ||||||||||||
Total net revenue | 198,936 | 56,492 | 255,428 | 40,711 | 296,139 | ||||||||||||
Expenses | 95,701 | 45,243 | 140,944 | 14,756 | 155,700 | ||||||||||||
Income before provision for income taxes | $ | 103,235 | $ | 11,249 | $ | 114,484 | $ | 25,955 | $ | 140,439 | |||||||
Segment assets at period end (1) | $ | 685,202 | $ | 394,124 | $ | 1,079,326 | $ | 119,953 | $ | 1,199,279 | |||||||
-1 | Amount excludes parent Company assets, which consist primarily of deferred tax assets of $54.5 million. | ||||||||||||||||
] | |||||||||||||||||
Organization_and_Basis_of_Pres1
Organization and Basis of Presentation (Details) (USD $) | 0 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 0 Months Ended | 9 Months Ended | |
14-May-13 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2013 | 14-May-13 | Sep. 30, 2014 | |
Members Equity Component [Member] | Members Equity Component [Member] | Noncontrolling Interest [Member] | Noncontrolling Interest [Member] | Common Class A [Member] | PCM | |||
item | ||||||||
Organization and Basis of Presentation | ' | ' | ' | ' | ' | ' | ' | ' |
Number of investment funds with whom management has management agreement | ' | ' | ' | ' | ' | ' | ' | 3 |
Issuance of common shares in initial public offering, net of issuance costs | ' | ' | ' | ' | ' | ' | 12,800,000 | ' |
Public offering price (in dollars per share) | ' | ' | ' | ' | ' | ' | $18 | ' |
Net proceeds from initial public offering, after deducting net underwriting discounts and commissions | ' | ' | ' | ' | ' | ' | $216,800,000 | ' |
Number of Class A common units purchased | ' | ' | ' | ' | ' | ' | 12,800,000 | ' |
Shares purchased accounted for as a transfer of interests under common control | ' | ' | ' | ' | ' | ' | 12,800,000 | ' |
Reclassification of members' equity to non-controlling interest | ' | ' | $315,454,000 | $315,500,000 | ($315,454,000) | ($315,500,000) | ' | ' |
Tax benefits payable under tax receivable agreement (as a percent) | 85.00% | ' | ' | ' | ' | ' | ' | ' |
Amount of tax benefits under the tax sharing agreement (as a percent) | ' | 85.00% | ' | ' | ' | ' | ' | ' |
Concentration_of_Risk_Details
Concentration of Risk (Details) (Sales Revenue, Services, Net [Member], Customer Concentration Risk [Member]) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Sales Revenue, Services, Net [Member] | Customer Concentration Risk [Member] | ' | ' | ' | ' |
Concentration of Risk | ' | ' | ' | ' |
Percentage of total net revenue | 33.00% | 50.00% | 35.00% | 47.00% |
Transactions_with_Affiliates_D
Transactions with Affiliates (Details) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 20 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||||||||||||||||||||||||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Aug. 04, 2009 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | |
PCM | PCM | PCM | PCM | PennyMac Mortgage Investment Trust | PennyMac Mortgage Investment Trust | PennyMac Mortgage Investment Trust | PennyMac Mortgage Investment Trust | PennyMac Mortgage Investment Trust | PennyMac Mortgage Investment Trust | PennyMac Mortgage Investment Trust | PennyMac Mortgage Investment Trust | PennyMac Mortgage Investment Trust | PennyMac Mortgage Investment Trust | PennyMac Mortgage Investment Trust | PennyMac Mortgage Investment Trust | PennyMac Mortgage Investment Trust | PennyMac Mortgage Investment Trust | PennyMac Mortgage Investment Trust | PennyMac Mortgage Investment Trust | PennyMac Mortgage Investment Trust | PennyMac Mortgage Investment Trust | PennyMac Mortgage Investment Trust | PennyMac Mortgage Investment Trust | PennyMac Mortgage Investment Trust | PennyMac Mortgage Investment Trust | PennyMac Mortgage Investment Trust | PennyMac Mortgage Investment Trust | PennyMac Mortgage Investment Trust | PennyMac Mortgage Investment Trust | PennyMac Mortgage Investment Trust | PennyMac Mortgage Investment Trust | PennyMac Mortgage Investment Trust | PennyMac Mortgage Investment Trust | PennyMac Mortgage Investment Trust | PennyMac Mortgage Investment Trust | PennyMac Mortgage Investment Trust | PennyMac Mortgage Investment Trust | Investment Funds | Investment Funds | Investment Funds | Investment Funds | Investment Funds | Investment Funds | Investment Funds | Investment Funds | PNMAC Mortgage Opportunity Fund, LLC | PNMAC Mortgage Opportunity Fund, LLC | PNMAC Mortgage Opportunity Fund Investors, LLC | PNMAC Mortgage Opportunity Fund Investors, LLC | ||||||
item | Mortgage loans acquired for sale at fair value | Mortgage loans acquired for sale at fair value | Mortgage loans acquired for sale at fair value | Mortgage loans acquired for sale at fair value | Purchased MSRs Backed by Distressed Mortgage Loans | Purchased MSRs Backed by Distressed Mortgage Loans | Purchased MSRs Backed by Distressed Mortgage Loans | Purchased MSRs Backed by Distressed Mortgage Loans | Mortgage servicing rights | Mortgage servicing rights | Mortgage servicing rights | Mortgage servicing rights | Management Fees | Management Fees | Management Fees | Management Fees | Mortgage Lending | Mortgage Lending | Mortgage Lending | Mortgage Lending | Financing And Mortgage Loan Sourcing Activities | Financing And Mortgage Loan Sourcing Activities | Financing And Mortgage Loan Sourcing Activities | Financing And Mortgage Loan Sourcing Activities | Conditional Reimbursement | Conditional Reimbursement | Conditional Reimbursement | Conditional Reimbursement | Conditional Reimbursement | ||||||||||||||||||||||||||
Maximum | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Management fees earned | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Base | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $6,033,000 | $5,104,000 | $17,392,000 | $14,043,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Performance incentive | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,590,000 | 3,435,000 | 9,217,000 | 9,443,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Management fees | 11,379,000 | 10,540,000 | 32,486,000 | 29,375,000 | ' | ' | ' | ' | ' | 9,623,000 | 8,539,000 | 26,609,000 | 23,486,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9,623,000 | 8,539,000 | 26,609,000 | 23,486,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,756,000 | 2,001,000 | 5,877,000 | 5,889,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Multiplier for calculating the termination fee | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Period for calculating average annual fees | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '24 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Mortgage loan servicing fees earned | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Base and supplemental | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 28,000 | 62,000 | 74,000 | 231,000 | 4,679,000 | 4,166,000 | 14,620,000 | 11,737,000 | 3,459,000 | 2,911,000 | 9,930,000 | 7,037,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Activity-based | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 35,000 | 77,000 | 112,000 | 260,000 | 4,076,000 | 3,414,000 | 16,208,000 | 7,739,000 | 48,000 | 108,000 | 152,000 | 247,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loan servicing fees | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12,325,000 | 10,738,000 | 41,096,000 | 27,251,000 | ' | 63,000 | 139,000 | 186,000 | 491,000 | 8,755,000 | 7,580,000 | 30,828,000 | 19,476,000 | 3,507,000 | 3,019,000 | 10,082,000 | 7,284,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Lending activity between the entity and affiliate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fulfillment fee revenue | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15,497,000 | 18,327,000 | 36,832,000 | 68,625,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15,497,000 | 18,327,000 | 36,832,000 | 68,625,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unpaid principal balance of loans fulfilled for PennyMac Mortgage Investment Trust | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,677,613,000 | 3,681,771,000 | 8,588,955,000 | 12,792,482,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sourcing fees paid | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,384,000 | 1,204,000 | 3,401,000 | 3,563,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of loans purchased from PennyMac Mortgage Investment Trust | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,861,392,000 | 4,147,535,000 | 11,947,251,000 | 12,429,698,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sale of mortgage loans held for sale to PennyMac Mortgage Investment Trust | 48,133,000 | 25,949,000 | 122,375,000 | 108,560,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,970,000 | 7,059,000 | 4,955,000 | 12,339,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Financing activity between the Company and affiliate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Issuance of excess servicing spread financing to PennyMac Mortgage Investment Trust | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 82,646,000 | 2,828,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9,253,000 | 2,828,000 | 82,646,000 | 2,828,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Change in fair value of excess servicing spread financing | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9,539,000 | -29,000 | 24,392,000 | -29,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest expense from excess servicing spread financing | ' | ' | 9,578,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,577,000 | ' | 9,578,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Excess servicing spread recapture recognized | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,143,000 | ' | 6,558,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
MSR recapture recognized | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 86,000 | 9,000 | 586,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Conditional reimbursement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,900,000 | 2,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Performance incentive fees reimbursement under the management agreement for every $100 of performance incentive fees earned | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum performance incentive fees reimbursement within 12-month period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payments received | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 256,000 | 292,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reimbursement of common overhead/expenses incurred on behalf of affiliates | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reimbursement of common overhead incurred by the Company | 3,034,000 | 4,486,000 | 8,852,000 | 12,126,000 | ' | 2,912,000 | 2,552,000 | 8,181,000 | 8,359,000 | 122,000 | 1,934,000 | 671,000 | 3,767,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payments and settlements during the period | 31,621,000 | 29,315,000 | 72,975,000 | 94,606,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amounts due from affiliate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Carried Interest due from Investment Funds | 67,035,000 | ' | 67,035,000 | ' | 61,142,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 67,035,000 | 58,134,000 | 67,035,000 | 58,134,000 | 65,133,000 | 61,142,000 | 55,322,000 | 47,723,000 | 40,845,000 | 37,702,000 | 26,190,000 | 23,440,000 |
Management fees | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9,623,000 | ' | 9,623,000 | ' | 8,924,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,755,000 | ' | 1,755,000 | ' | ' | 2,031,000 | ' | ' | ' | ' | ' | ' |
Servicing fees | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,942,000 | ' | 6,942,000 | ' | 5,915,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allocated expenses | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,360,000 | ' | 3,360,000 | ' | 2,009,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Underwriting fees | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,495,000 | ' | 1,495,000 | ' | 1,788,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loan servicing fees | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 545,000 | ' | 545,000 | ' | ' | 727,000 | ' | ' | ' | ' | ' | ' |
Expense reimbursements | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 220,000 | ' | 220,000 | ' | ' | 21,000 | ' | ' | ' | ' | ' | ' |
Loan servicing rebate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 182,000 | ' | 182,000 | ' | ' | 136,000 | ' | ' | ' | ' | ' | ' |
Total due from affiliate | 2,702,000 | ' | 2,702,000 | ' | 2,915,000 | ' | ' | ' | ' | 21,420,000 | ' | 21,420,000 | ' | 18,636,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,702,000 | ' | 2,702,000 | ' | ' | 2,915,000 | ' | ' | ' | ' | ' | ' |
Investment in affiliate, common shares of beneficial interest (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 75,000 | ' | 75,000 | ' | 75,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Investment in affiliates, at fair value | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,600,000 | ' | 1,600,000 | ' | 1,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amounts due to affiliates | ' | ' | ' | ' | ' | ' | ' | ' | ' | 104,783,000 | ' | 104,783,000 | ' | 81,174,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 35,874,000 | ' | 35,874,000 | ' | ' | 36,937,000 | ' | ' | ' | ' | ' | ' |
Servicing advances | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100,500,000 | ' | 100,500,000 | ' | 75,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of tax benefits under the tax receivable agreement (as a percent) | ' | ' | 85.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of tax liability under the tax sharing agreement | $75,900,000 | ' | $75,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Earnings_Per_Share_of_Common_S2
Earnings Per Share of Common Stock (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Basic earnings per share of common stock: | ' | ' | ' | ' |
Net income attributable to PennyMac Financial Services, Inc common stockholders | $10,489 | $5,197 | $28,079 | $7,990 |
Weighted-average common stock outstanding | 21,432 | 17,958 | 21,149 | 16,042 |
Basic earnings per share of common stock (in dollars per share) | $0.49 | $0.29 | $1.33 | $0.50 |
Diluted earnings per share of common stock: | ' | ' | ' | ' |
Net income | 10,489 | 5,197 | 28,079 | 7,990 |
Effect of net income attributable to noncontrolling interest, net of tax | 26,620 | 15,685 | 72,374 | 29,595 |
Diluted net income attributable to common stockholders | $37,109 | $20,882 | $100,453 | $37,585 |
Weighted-average common stock outstanding | 21,432 | 17,958 | 21,149 | 16,042 |
Dilutive shares: | ' | ' | ' | ' |
PennyMac Class A units exchangeable to common stock | 53,492 | 56,524 | 53,569 | 58,440 |
Non-vested PennyMac Class A units issuable under unit-based stock compensation plan and exchangeable to common stock | 975 | 1,364 | 1,155 | 1,364 |
Shares issuable under stock-based compensation plans (in shares) | 50 | 30 | 45 | 21 |
Diluted weighted-average common stock outstanding | 75,949 | 75,876 | 75,918 | 75,867 |
Diluted earnings per share of common stock (in dollars per share) | $0.49 | $0.28 | $1.32 | $0.50 |
Loan_Sales_and_Servicing_Activ2
Loan Sales and Servicing Activities (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 |
Cash flows : | ' | ' | ' | ' | ' |
Sales proceeds | $5,345,227 | $4,515,106 | $13,367,272 | $13,210,810 | ' |
Servicing fees received | 30,609 | 16,403 | 78,075 | 38,104 | ' |
Net servicing advances (recoveries) | 6,520 | -717 | 2,182 | -4,375 | ' |
Period end information: | ' | ' | ' | ' | ' |
Unpaid principal balance (UPB) of loans outstanding at end of period | 33,297,161 | 22,776,613 | 33,297,161 | 22,776,613 | ' |
30-89 days | 662,863 | 380,070 | 662,863 | 380,070 | ' |
90 days or more or in foreclosure or bankruptcy | 168,503 | 247,269 | 168,503 | 247,269 | ' |
Mortgage servicing portfolio | ' | ' | ' | ' | ' |
Mortgage loans held for sale | 1,217,599 | ' | 1,217,599 | ' | 506,540 |
Total loans serviced | 100,083,777 | ' | 100,083,777 | ' | 78,167,439 |
Amount subserviced for the Company | 643,891 | ' | 643,891 | ' | 738,957 |
Delinquent mortgage loans: | ' | ' | ' | ' | ' |
30 days | 1,490,148 | ' | 1,490,148 | ' | 1,567,572 |
60 days | 600,690 | ' | 600,690 | ' | 459,187 |
90 days or more | 2,291,103 | ' | 2,291,103 | ' | 2,022,053 |
Total delinquent mortgage loans | 4,381,941 | ' | 4,381,941 | ' | 4,048,812 |
Loans pending foreclosure | 1,861,536 | ' | 1,861,536 | ' | 1,960,904 |
Total delinquent mortgage loans and loans pending foreclosure | 6,243,477 | ' | 6,243,477 | ' | 6,009,716 |
Custodial funds managed by the Company | 1,801,946 | ' | 1,801,946 | ' | 814,748 |
California | ' | ' | ' | ' | ' |
Mortgage servicing portfolio | ' | ' | ' | ' | ' |
Total loans serviced | 33,373,669 | ' | 33,373,669 | ' | 30,320,616 |
Texas | ' | ' | ' | ' | ' |
Mortgage servicing portfolio | ' | ' | ' | ' | ' |
Total loans serviced | 6,299,566 | ' | 6,299,566 | ' | 4,470,123 |
Virginia | ' | ' | ' | ' | ' |
Mortgage servicing portfolio | ' | ' | ' | ' | ' |
Total loans serviced | 5,831,547 | ' | 5,831,547 | ' | 3,769,683 |
Florida | ' | ' | ' | ' | ' |
Mortgage servicing portfolio | ' | ' | ' | ' | ' |
Total loans serviced | 4,998,805 | ' | 4,998,805 | ' | 3,416,274 |
Washington | ' | ' | ' | ' | ' |
Mortgage servicing portfolio | ' | ' | ' | ' | ' |
Total loans serviced | 3,658,408 | ' | 3,658,408 | ' | 2,760,900 |
All other states | ' | ' | ' | ' | ' |
Mortgage servicing portfolio | ' | ' | ' | ' | ' |
Total loans serviced | 45,921,782 | ' | 45,921,782 | ' | 33,429,843 |
Non affiliated entities | ' | ' | ' | ' | ' |
Mortgage servicing portfolio | ' | ' | ' | ' | ' |
Total loans serviced, excluding loans held for sale | 60,865,411 | ' | 60,865,411 | ' | 44,969,026 |
Affiliated entities | ' | ' | ' | ' | ' |
Mortgage servicing portfolio | ' | ' | ' | ' | ' |
Total loans serviced, excluding loans held for sale | 38,000,767 | ' | 38,000,767 | ' | 31,632,718 |
Private investors | ' | ' | ' | ' | ' |
Mortgage servicing portfolio | ' | ' | ' | ' | ' |
Total loans serviced, excluding loans held for sale | ' | ' | ' | ' | 1,059,155 |
Servicing rights owned | ' | ' | ' | ' | ' |
Mortgage servicing portfolio | ' | ' | ' | ' | ' |
Mortgage loans held for sale | 1,217,599 | ' | 1,217,599 | ' | 506,540 |
Total loans serviced | 62,083,010 | ' | 62,083,010 | ' | 46,445,360 |
Amount subserviced for the Company | 643,612 | ' | 643,612 | ' | 156,347 |
Delinquent mortgage loans: | ' | ' | ' | ' | ' |
30 days | 1,224,346 | ' | 1,224,346 | ' | 1,304,054 |
60 days | 475,806 | ' | 475,806 | ' | 346,912 |
90 days or more | 1,257,724 | ' | 1,257,724 | ' | 605,555 |
Total delinquent mortgage loans | 2,957,876 | ' | 2,957,876 | ' | 2,256,521 |
Loans pending foreclosure | 335,121 | ' | 335,121 | ' | 168,776 |
Total delinquent mortgage loans and loans pending foreclosure | 3,292,997 | ' | 3,292,997 | ' | 2,425,297 |
Custodial funds managed by the Company | 1,325,037 | ' | 1,325,037 | ' | 568,161 |
Servicing rights owned | Non affiliated entities | ' | ' | ' | ' | ' |
Mortgage servicing portfolio | ' | ' | ' | ' | ' |
Total loans serviced, excluding loans held for sale | 60,865,411 | ' | 60,865,411 | ' | 44,969,026 |
Servicing rights owned | Private investors | ' | ' | ' | ' | ' |
Mortgage servicing portfolio | ' | ' | ' | ' | ' |
Total loans serviced, excluding loans held for sale | ' | ' | ' | ' | 969,794 |
Contract servicing and subservicing | ' | ' | ' | ' | ' |
Mortgage servicing portfolio | ' | ' | ' | ' | ' |
Total loans serviced | 38,000,767 | ' | 38,000,767 | ' | 31,722,079 |
Amount subserviced for the Company | 279 | ' | 279 | ' | 582,610 |
Delinquent mortgage loans: | ' | ' | ' | ' | ' |
30 days | 265,802 | ' | 265,802 | ' | 263,518 |
60 days | 124,884 | ' | 124,884 | ' | 112,275 |
90 days or more | 1,033,379 | ' | 1,033,379 | ' | 1,416,498 |
Total delinquent mortgage loans | 1,424,065 | ' | 1,424,065 | ' | 1,792,291 |
Loans pending foreclosure | 1,526,415 | ' | 1,526,415 | ' | 1,792,128 |
Total delinquent mortgage loans and loans pending foreclosure | 2,950,480 | ' | 2,950,480 | ' | 3,584,419 |
Custodial funds managed by the Company | 476,909 | ' | 476,909 | ' | 246,587 |
Contract servicing and subservicing | Affiliated entities | ' | ' | ' | ' | ' |
Mortgage servicing portfolio | ' | ' | ' | ' | ' |
Total loans serviced, excluding loans held for sale | 38,000,767 | ' | 38,000,767 | ' | 31,632,718 |
Contract servicing and subservicing | Private investors | ' | ' | ' | ' | ' |
Mortgage servicing portfolio | ' | ' | ' | ' | ' |
Total loans serviced, excluding loans held for sale | ' | ' | ' | ' | $89,361 |
Netting_of_Financial_Instrumen2
Netting of Financial Instruments (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Derivatives subject to master netting arrangements: | ' | ' |
Gross amounts of recognized assets | $10,574 | $19,934 |
Gross amounts offset in the balance sheet | -5,865 | -7,358 |
Net amounts of assets presented in the balance sheet | 4,709 | 12,576 |
Total | ' | ' |
Gross amounts of recognized assets | 34,265 | 28,898 |
Net amounts of assets presented in the balance sheet | 28,400 | 21,540 |
Net amount | 28,400 | 21,540 |
RJ O'Brien | ' | ' |
Total | ' | ' |
Net amounts of assets presented in the balance sheet | 2,313 | ' |
Net amount | 2,313 | ' |
Bank of America, N.A. | ' | ' |
Total | ' | ' |
Net amounts of assets presented in the balance sheet | 721 | 1,680 |
Net amount | 721 | 1,680 |
Jefferies & Co. | ' | ' |
Total | ' | ' |
Net amounts of assets presented in the balance sheet | 626 | 627 |
Net amount | 626 | 627 |
Multi-Bank | ' | ' |
Total | ' | ' |
Net amounts of assets presented in the balance sheet | 207 | ' |
Net amount | 207 | ' |
Morgan Stanley Bank, N.A. | ' | ' |
Total | ' | ' |
Net amounts of assets presented in the balance sheet | 169 | 1,704 |
Net amount | 169 | 1,704 |
Credit Suisse First Boston Mortgage Capital LLC | ' | ' |
Total | ' | ' |
Net amounts of assets presented in the balance sheet | ' | 2,149 |
Net amount | ' | 2,149 |
Daiwa Capital Markets Inc. | ' | ' |
Total | ' | ' |
Net amounts of assets presented in the balance sheet | ' | 1,190 |
Net amount | ' | 1,190 |
Other | ' | ' |
Total | ' | ' |
Net amounts of assets presented in the balance sheet | 673 | 5,226 |
Net amount | 673 | 5,226 |
MBS put options | ' | ' |
Derivatives subject to master netting arrangements: | ' | ' |
Gross amounts of recognized assets | 625 | 665 |
Net amounts of assets presented in the balance sheet | 625 | 665 |
MBS call options | ' | ' |
Derivatives subject to master netting arrangements: | ' | ' |
Gross amounts of recognized assets | 227 | 91 |
Net amounts of assets presented in the balance sheet | 227 | 91 |
Forward contracts | Purchases | ' | ' |
Derivatives subject to master netting arrangements: | ' | ' |
Gross amounts of recognized assets | 5,686 | 416 |
Net amounts of assets presented in the balance sheet | 5,686 | 416 |
Forward contracts | Sales | ' | ' |
Derivatives subject to master netting arrangements: | ' | ' |
Gross amounts of recognized assets | 1,273 | 18,762 |
Net amounts of assets presented in the balance sheet | 1,273 | 18,762 |
Interest rate lock commitments | ' | ' |
Derivatives not subject to master netting arrangements | ' | ' |
Gross amounts of recognized assets | 23,691 | 8,964 |
Total | ' | ' |
Net amounts of assets presented in the balance sheet | 23,691 | 8,964 |
Net amount | 23,691 | 8,964 |
Put options on Eurodollar futures | ' | ' |
Derivatives subject to master netting arrangements: | ' | ' |
Gross amounts of recognized assets | 1,713 | ' |
Net amounts of assets presented in the balance sheet | 1,713 | ' |
Call options on Eurodollar futures | ' | ' |
Derivatives subject to master netting arrangements: | ' | ' |
Gross amounts of recognized assets | 1,050 | ' |
Net amounts of assets presented in the balance sheet | $1,050 | ' |
Netting_of_Financial_Instrumen3
Netting of Financial Instruments (Details 2) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Derivatives: Subject to a master netting arrangement: | ' | ' |
Gross amounts of recognized liabilities | $10,300 | $7,046 |
Netting | -6,915 | -6,787 |
Net amounts of liabilities presented in the balance sheet | 3,385 | 259 |
Total derivatives | ' | ' |
Gross amounts of recognized liabilities | 11,355 | 9,249 |
Net amounts of liabilities presented in the consolidated balance sheet | 4,440 | 2,462 |
Total | ' | ' |
Gross amounts of recognized liabilities | 941,102 | 480,841 |
Gross amounts offset in the consolidated balance sheet | -6,915 | -6,787 |
Net amounts of liabilities presented in the consolidated balance sheet | 934,187 | 474,054 |
Gross amounts not offset in the balance sheet | ' | ' |
Financial instruments | -929,747 | -471,592 |
Net amount | 4,440 | 2,462 |
Credit Suisse First Boston Mortgage Capital LLC | ' | ' |
Total | ' | ' |
Net amounts of liabilities presented in the consolidated balance sheet | 564,182 | 198,888 |
Gross amounts not offset in the balance sheet | ' | ' |
Financial instruments | -562,999 | -198,888 |
Net amount | 1,183 | ' |
Bank of America, N.A. | ' | ' |
Total | ' | ' |
Net amounts of liabilities presented in the consolidated balance sheet | 224,169 | 234,511 |
Gross amounts not offset in the balance sheet | ' | ' |
Financial instruments | -224,169 | -234,511 |
Morgan Stanley Bank, N.A. | ' | ' |
Total | ' | ' |
Net amounts of liabilities presented in the consolidated balance sheet | 142,579 | 38,193 |
Gross amounts not offset in the balance sheet | ' | ' |
Financial instruments | -142,579 | -38,193 |
Deutsche Bank | ' | ' |
Total | ' | ' |
Net amounts of liabilities presented in the consolidated balance sheet | 308 | ' |
Gross amounts not offset in the balance sheet | ' | ' |
Net amount | 308 | ' |
Daiwa Capital Markets Inc. | ' | ' |
Total | ' | ' |
Net amounts of liabilities presented in the consolidated balance sheet | 237 | ' |
Gross amounts not offset in the balance sheet | ' | ' |
Net amount | 237 | ' |
Bank of NY Mellon | ' | ' |
Total | ' | ' |
Net amounts of liabilities presented in the consolidated balance sheet | 236 | ' |
Gross amounts not offset in the balance sheet | ' | ' |
Net amount | 236 | ' |
Fannie Capital Markets | ' | ' |
Total | ' | ' |
Net amounts of liabilities presented in the consolidated balance sheet | 210 | ' |
Gross amounts not offset in the balance sheet | ' | ' |
Net amount | 210 | ' |
Bank of Oklahoma | ' | ' |
Total | ' | ' |
Net amounts of liabilities presented in the consolidated balance sheet | 210 | ' |
Gross amounts not offset in the balance sheet | ' | ' |
Net amount | 210 | ' |
Other | ' | ' |
Total | ' | ' |
Net amounts of liabilities presented in the consolidated balance sheet | 1,001 | 259 |
Gross amounts not offset in the balance sheet | ' | ' |
Net amount | 1,001 | 259 |
Mortgage loans held for sale | ' | ' |
Mortgage loans sold under agreements to repurchase | ' | ' |
Gross amounts of recognized liabilities | 929,747 | 471,592 |
Net amounts of liabilities presented in the consolidated balance sheet | 929,747 | 471,592 |
Forward contracts | Purchases | ' | ' |
Derivatives: Subject to a master netting arrangement: | ' | ' |
Gross amounts of recognized liabilities | 645 | 6,542 |
Net amounts of liabilities presented in the balance sheet | 645 | 6,542 |
Forward contracts | Sales | ' | ' |
Derivatives: Subject to a master netting arrangement: | ' | ' |
Gross amounts of recognized liabilities | 9,655 | 504 |
Net amounts of liabilities presented in the balance sheet | 9,655 | 504 |
Interest rate lock commitments | ' | ' |
Derivatives not subject to a master netting arrangement | ' | ' |
Gross amounts of recognized liabilities | 1,055 | 2,203 |
Total derivatives | ' | ' |
Net amounts of liabilities presented in the consolidated balance sheet | 1,055 | 2,203 |
Total | ' | ' |
Net amounts of liabilities presented in the consolidated balance sheet | 1,055 | 2,203 |
Gross amounts not offset in the balance sheet | ' | ' |
Net amount | $1,055 | $2,203 |
Fair_Value_Details
Fair Value (Details) (USD $) | 9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 |
PennyMac Mortgage Investment Trust | PennyMac Mortgage Investment Trust | PennyMac Mortgage Investment Trust | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | |||
Level 1 | Level 1 | Level 1 | Level 1 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Total | Total | Total | Total | Total | Total | Total | Total | Total | Total | Total | Total | Total | Total | Total | Total | ||||||
PennyMac Mortgage Investment Trust | PennyMac Mortgage Investment Trust | MBS put options | MBS put options | MBS call options | MBS call options | Forward contracts | Forward contracts | Forward contracts | Forward contracts | Put options on Eurodollar futures | Call options on Eurodollar futures | PennyMac Mortgage Investment Trust | PennyMac Mortgage Investment Trust | Interest rate lock commitments | Interest rate lock commitments | PennyMac Mortgage Investment Trust | PennyMac Mortgage Investment Trust | Interest rate lock commitments | Interest rate lock commitments | MBS put options | MBS put options | MBS call options | MBS call options | Forward contracts | Forward contracts | Forward contracts | Forward contracts | Put options on Eurodollar futures | Call options on Eurodollar futures | ||||||||||||||
Purchases | Purchases | Sales | Sales | Purchases | Purchases | Sales | Sales | ||||||||||||||||||||||||||||||||||||
Fair value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate threshold used in determination of accounting for loans underlying mortgage servicing rights (as a percent) | 4.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Assets: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Short-term investments at fair value | $36,335 | $142,582 | ' | ' | ' | $36,335 | $142,582 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $36,335 | $142,582 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Mortgage loans held for sale at fair value | 1,259,991 | 531,004 | ' | ' | ' | ' | ' | ' | ' | 973,935 | 527,071 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 286,056 | 3,933 | ' | ' | ' | ' | 1,259,991 | 531,004 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative assets: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total derivative assets before netting | 34,265 | 28,898 | ' | ' | ' | ' | ' | ' | ' | 10,574 | 19,934 | 625 | 665 | 227 | 91 | 5,686 | 416 | 1,273 | 18,762 | 1,713 | 1,050 | 23,691 | 8,964 | ' | ' | 23,691 | 8,964 | 34,265 | 28,898 | ' | ' | 23,691 | 8,964 | 625 | 665 | 227 | 91 | 5,686 | 416 | 1,273 | 18,762 | 1,713 | 1,050 |
Netting | -5,865 | -7,358 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -5,865 | -7,358 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total derivative assets | 28,400 | 21,540 | ' | ' | ' | ' | ' | ' | ' | 10,574 | 19,934 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 23,691 | 8,964 | ' | ' | ' | ' | 28,400 | 21,540 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Investment in PennyMac Mortgage Investment Trust | ' | ' | 1,607 | 1,722 | 1,701 | ' | ' | 1,607 | 1,722 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,607 | 1,722 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Mortgage servicing rights at fair value | 319,149 | 224,913 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 319,149 | 224,913 | ' | ' | ' | ' | 319,149 | 224,913 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total assets | ' | ' | ' | ' | ' | 37,942 | 144,304 | ' | ' | 984,509 | 547,005 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 628,896 | 237,810 | ' | ' | ' | ' | 1,645,482 | 921,761 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative liabilities: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Excess servicing spread financing at fair value to affiliate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 187,368 | 138,723 | ' | ' | ' | ' | 187,368 | 138,723 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total derivative liabilities before netting | 11,355 | 9,249 | ' | ' | ' | ' | ' | ' | ' | 10,300 | 7,046 | ' | ' | ' | ' | 645 | 6,542 | 9,655 | 504 | ' | ' | 1,055 | 2,203 | ' | ' | 1,055 | 2,203 | 11,355 | 9,249 | ' | ' | 1,055 | 2,203 | ' | ' | ' | ' | 645 | 6,542 | 9,655 | 504 | ' | ' |
Netting | -6,915 | -6,787 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -6,915 | -6,787 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total derivative liabilities | 4,440 | 2,462 | ' | ' | ' | ' | ' | ' | ' | 10,300 | 7,046 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,055 | 2,203 | ' | ' | ' | ' | 4,440 | 2,462 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Mortgage servicing liabilities | 4,091 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,091 | ' | ' | ' | ' | ' | 4,091 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total liabilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | $10,300 | $7,046 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $192,514 | $140,926 | ' | ' | ' | ' | $195,899 | $141,185 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair_Value_Details_2
Fair Value (Details 2) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Roll forward of liabilities measured using Level 3 inputs on a recurring basis | ' | ' | ' | ' |
Transfers in or out the levels | ' | ' | $0 | ' |
Recurring basis | ' | ' | ' | ' |
Roll forward of assets measured using Level 3 inputs on a recurring basis | ' | ' | ' | ' |
Balance at the beginning of the period | 593,005 | 11,385 | 235,607 | 43,738 |
Purchases | 233,202 | 1,116 | 1,010,729 | 5,124 |
Repurchases of mortgage loans subject to representations and warranties | ' | ' | ' | 5,529 |
Sales | -74,817 | ' | -446,353 | -550 |
Repayments | -10,659 | -436 | -16,778 | -1,059 |
Interest rate lock commitments issued, net | 30,727 | 23,788 | 113,559 | 78,722 |
Additions - Mortgage servicing rights resulting from mortgage loan sales | 6,381 | 4,157 | 20,647 | 4,177 |
Changes in fair value included in income arising from: | ' | ' | ' | ' |
Other factors | -7,449 | 9,106 | -7,159 | -17,355 |
Total changes in fair value included in income | -7,449 | 9,106 | -7,159 | -17,355 |
Transfers to Level 2 mortgage loans held for sale | -102,419 | ' | -162,959 | ' |
Transfers of interest rate lock commitments to mortgage loans held for sale | -40,130 | -3,395 | -119,452 | 65,815 |
Balance at the end of the period | 627,841 | 52,511 | 627,841 | 52,511 |
Roll forward of liabilities measured using Level 3 inputs on a recurring basis | ' | ' | ' | ' |
Balance at the beginning of the period | 196,065 | ' | 138,723 | ' |
Proceeds received from excess servicing spread financing | 9,253 | ' | 82,646 | ' |
ESS issued Pursuant to a recapture agreement with PennyMac Mortgage Investment Trust | 2,619 | ' | 6,093 | ' |
Accrual of interest | 3,577 | ' | 9,578 | ' |
Repayments | -8,786 | ' | -25,280 | ' |
Changes in fair value included in income | -11,269 | ' | -20,301 | ' |
Balance at the end of the period | 191,459 | ' | 191,459 | ' |
Recurring basis | Excess servicing spread financing | ' | ' | ' | ' |
Roll forward of liabilities measured using Level 3 inputs on a recurring basis | ' | ' | ' | ' |
Balance at the beginning of the period | 190,244 | ' | 138,723 | ' |
Proceeds received from excess servicing spread financing | 9,253 | ' | 82,646 | ' |
ESS issued Pursuant to a recapture agreement with PennyMac Mortgage Investment Trust | 2,619 | ' | 6,093 | ' |
Accrual of interest | 3,577 | ' | 9,578 | ' |
Proceeds received from excess servicing spread financing | ' | 2,828 | ' | 2,828 |
Repayments | -8,786 | ' | -25,280 | ' |
Changes in fair value included in income | -9,539 | 29 | -24,392 | 29 |
Balance at the end of the period | 187,368 | 2,857 | 187,368 | 2,857 |
Changes in fair value recognized during the period relating to liability still held at the end of the period | -9,539 | 29 | -24,392 | 29 |
Recurring basis | Mortgage servicing liabilities | ' | ' | ' | ' |
Roll forward of liabilities measured using Level 3 inputs on a recurring basis | ' | ' | ' | ' |
Balance at the beginning of the period | 5,821 | ' | ' | ' |
Changes in fair value included in income | -1,730 | ' | 4,091 | ' |
Balance at the end of the period | 4,091 | ' | 4,091 | ' |
Changes in fair value recognized during the period relating to liability still held at the end of the period | -1,730 | ' | 4,091 | ' |
Recurring basis | Mortgage loans held for sale | ' | ' | ' | ' |
Roll forward of assets measured using Level 3 inputs on a recurring basis | ' | ' | ' | ' |
Balance at the beginning of the period | 254,656 | 4,525 | 3,933 | ' |
Purchases | 217,498 | ' | 897,381 | ' |
Repurchases of mortgage loans subject to representations and warranties | ' | ' | ' | 5,529 |
Sales | -74,817 | ' | -435,437 | ' |
Repayments | -10,659 | -436 | -16,778 | -1,059 |
Changes in fair value included in income arising from: | ' | ' | ' | ' |
Other factors | 1,797 | 96 | -84 | -285 |
Total changes in fair value included in income | 1,797 | 96 | -84 | -285 |
Transfers to Level 2 mortgage loans held for sale | -102,419 | ' | -162,959 | ' |
Balance at the end of the period | 286,056 | 4,185 | 286,056 | 4,185 |
Changes in fair value recognized during the period relating to assets still held at the end of the period | 1,797 | 16 | -84 | -344 |
Recurring basis | Interest rate lock commitments | ' | ' | ' | ' |
Roll forward of assets measured using Level 3 inputs on a recurring basis | ' | ' | ' | ' |
Balance at the beginning of the period | 29,750 | -16,210 | 6,761 | 23,940 |
Interest rate lock commitments issued, net | 30,727 | 23,788 | 113,559 | 78,722 |
Changes in fair value included in income arising from: | ' | ' | ' | ' |
Other factors | 2,289 | 10,585 | 21,768 | -15,289 |
Total changes in fair value included in income | 2,289 | 10,585 | 21,768 | -15,289 |
Transfers of interest rate lock commitments to mortgage loans held for sale | -40,130 | -3,395 | -119,452 | 65,815 |
Balance at the end of the period | 22,636 | 21,558 | 22,636 | 21,558 |
Changes in fair value recognized during the period relating to assets still held at the end of the period | 22,636 | 21,558 | 22,636 | 21,558 |
Recurring basis | Mortgage servicing rights | ' | ' | ' | ' |
Roll forward of assets measured using Level 3 inputs on a recurring basis | ' | ' | ' | ' |
Balance at the beginning of the period | 308,599 | 23,070 | 224,913 | 19,798 |
Purchases | 15,704 | 1,116 | 113,348 | 5,124 |
Sales | ' | ' | -10,916 | -550 |
Additions - Mortgage servicing rights resulting from mortgage loan sales | 6,381 | 4,157 | 20,647 | 4,177 |
Changes in fair value included in income arising from: | ' | ' | ' | ' |
Other factors | -11,535 | -1,575 | -28,843 | -1,781 |
Total changes in fair value included in income | -11,535 | -1,575 | -28,843 | -1,781 |
Balance at the end of the period | 319,149 | 26,768 | 319,149 | 26,768 |
Changes in fair value recognized during the period relating to assets still held at the end of the period | ($11,535) | ($1,575) | ($28,843) | ($1,781) |
Fair_Value_Details_3
Fair Value (Details 3) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Net gains (losses) from changes in estimated fair values included in earnings for financial statement items carried at estimated fair value | ' | ' | ' | ' |
Total gains (losses) from changes in estimated fair values included in earnings | $63,076 | ' | $180,971 | ' |
Net gains on mortgage loans held for sale at fair value | ' | ' | ' | ' |
Net gains (losses) from changes in estimated fair values included in earnings for financial statement items carried at estimated fair value | ' | ' | ' | ' |
Total gains (losses) from changes in estimated fair values included in earnings | 63,076 | ' | 180,971 | ' |
Liability [Member] | ' | ' | ' | ' |
Net gains (losses) from changes in estimated fair values included in earnings for financial statement items carried at estimated fair value | ' | ' | ' | ' |
Total gains (losses) from changes in estimated fair values included in earnings | 11,269 | -29 | 20,301 | -29 |
Liability [Member] | Net servicing income | ' | ' | ' | ' |
Net gains (losses) from changes in estimated fair values included in earnings for financial statement items carried at estimated fair value | ' | ' | ' | ' |
Total gains (losses) from changes in estimated fair values included in earnings | 11,269 | -29 | 20,301 | -29 |
Excess servicing spread financing | ' | ' | ' | ' |
Net gains (losses) from changes in estimated fair values included in earnings for financial statement items carried at estimated fair value | ' | ' | ' | ' |
Total gains (losses) from changes in estimated fair values included in earnings | 9,539 | -29 | 24,392 | -29 |
Excess servicing spread financing | Net servicing income | ' | ' | ' | ' |
Net gains (losses) from changes in estimated fair values included in earnings for financial statement items carried at estimated fair value | ' | ' | ' | ' |
Total gains (losses) from changes in estimated fair values included in earnings | 9,539 | -29 | 24,392 | -29 |
Mortgage servicing liabilities | ' | ' | ' | ' |
Net gains (losses) from changes in estimated fair values included in earnings for financial statement items carried at estimated fair value | ' | ' | ' | ' |
Total gains (losses) from changes in estimated fair values included in earnings | 1,730 | ' | -4,091 | ' |
Mortgage servicing liabilities | Net servicing income | ' | ' | ' | ' |
Net gains (losses) from changes in estimated fair values included in earnings for financial statement items carried at estimated fair value | ' | ' | ' | ' |
Total gains (losses) from changes in estimated fair values included in earnings | 1,730 | ' | -4,091 | ' |
Assets | ' | ' | ' | ' |
Net gains (losses) from changes in estimated fair values included in earnings for financial statement items carried at estimated fair value | ' | ' | ' | ' |
Total gains (losses) from changes in estimated fair values included in earnings | 51,541 | -7,635 | 146,716 | 10,647 |
Assets | Net gains on mortgage loans held for sale at fair value | ' | ' | ' | ' |
Net gains (losses) from changes in estimated fair values included in earnings for financial statement items carried at estimated fair value | ' | ' | ' | ' |
Total gains (losses) from changes in estimated fair values included in earnings | 63,076 | -6,060 | ' | 12,428 |
Assets | Net servicing income | ' | ' | ' | ' |
Net gains (losses) from changes in estimated fair values included in earnings for financial statement items carried at estimated fair value | ' | ' | ' | ' |
Total gains (losses) from changes in estimated fair values included in earnings | -11,535 | -1,575 | -34,255 | -1,781 |
Mortgage loans held for sale | ' | ' | ' | ' |
Net gains (losses) from changes in estimated fair values included in earnings for financial statement items carried at estimated fair value | ' | ' | ' | ' |
Total gains (losses) from changes in estimated fair values included in earnings | ' | -6,060 | ' | 12,428 |
Mortgage loans held for sale | Net gains on mortgage loans held for sale at fair value | ' | ' | ' | ' |
Net gains (losses) from changes in estimated fair values included in earnings for financial statement items carried at estimated fair value | ' | ' | ' | ' |
Total gains (losses) from changes in estimated fair values included in earnings | ' | -6,060 | ' | 12,428 |
Mortgage servicing rights | ' | ' | ' | ' |
Net gains (losses) from changes in estimated fair values included in earnings for financial statement items carried at estimated fair value | ' | ' | ' | ' |
Total gains (losses) from changes in estimated fair values included in earnings | -11,535 | -1,575 | -34,255 | -1,781 |
Mortgage servicing rights | Net servicing income | ' | ' | ' | ' |
Net gains (losses) from changes in estimated fair values included in earnings for financial statement items carried at estimated fair value | ' | ' | ' | ' |
Total gains (losses) from changes in estimated fair values included in earnings | ($11,535) | ($1,575) | ($34,255) | ($1,781) |
Fair_Value_Details_4
Fair Value (Details 4) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair value | ' | ' |
Total fair value | $1,259,991 | $531,004 |
Mortgage loans held for sale | ' | ' |
Fair value | ' | ' |
Current through 89 days delinquent | 987,985 | 524,665 |
Not in foreclosure | 83,098 | 5,567 |
In foreclosure | 188,908 | 772 |
Total fair value | 1,259,991 | 531,004 |
Principal amount due upon maturity | ' | ' |
Current through 89 days delinquent | 935,173 | 504,705 |
Not in foreclosure | 190,910 | 5,479 |
In foreclosure | 83,313 | 660 |
Total principal amount due upon maturity | 1,209,396 | 510,844 |
Difference | ' | ' |
Current through 89 days delinquent | 52,812 | 19,960 |
Not in foreclosure | -2,002 | 88 |
In foreclosure | -215 | 112 |
Total difference | $50,595 | $20,160 |
Fair_Value_Details_5
Fair Value (Details 5) (Nonrecurring basis, USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 |
Level 3 | Level 3 | Total | Total | |||||
Financial statement items measured at fair value on a nonrecurring basis | ' | ' | ' | ' | ' | ' | ' | ' |
Mortgage servicing rights at lower of amortized cost or fair value | ' | ' | ' | ' | $240,403 | $136,690 | $240,403 | $136,690 |
Total assets | ' | ' | ' | ' | 240,403 | 136,690 | 240,403 | 136,690 |
Total gains (losses) on assets measured at estimated fair values on a nonrecurring basis | ' | ' | ' | ' | ' | ' | ' | ' |
Mortgage servicing rights at lower of amortized cost or fair value | -925 | -1,164 | -5,132 | -521 | ' | ' | ' | ' |
Total gains on assets measured at estimated fair values on a nonrecurring basis | ($925) | ($1,164) | ($5,132) | ($521) | ' | ' | ' | ' |
Fair_Value_Details_6
Fair Value (Details 6) (Level 3) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2014 | Dec. 31, 2013 | |
Mortgage loans held for sale | Minimum | ' | ' |
Quantitative summary of key inputs or assumptions used in the valuation of financial statement items | ' | ' |
Discount rate (as a percent) | 2.20% | 7.80% |
Twelve-month projected housing price index change (as a percent) | 0.20% | 4.50% |
Prepayment / resale speed (1) | 7.60% | 1.60% |
Total prepayment speed (as a percent) | 7.60% | 2.90% |
Mortgage loans held for sale | Maximum | ' | ' |
Quantitative summary of key inputs or assumptions used in the valuation of financial statement items | ' | ' |
Discount rate (as a percent) | 7.80% | 13.40% |
Twelve-month projected housing price index change (as a percent) | 8.20% | 4.70% |
Prepayment / resale speed (1) | 14.80% | 5.10% |
Total prepayment speed (as a percent) | 36.80% | 5.20% |
Mortgage loans held for sale | Weighted average | ' | ' |
Quantitative summary of key inputs or assumptions used in the valuation of financial statement items | ' | ' |
Discount rate (as a percent) | 2.30% | 8.90% |
Twelve-month projected housing price index change (as a percent) | 4.50% | 4.60% |
Prepayment / resale speed (1) | 14.70% | 4.40% |
Total prepayment speed (as a percent) | 35.20% | 4.70% |
Interest rate lock commitments | Minimum | ' | ' |
Quantitative summary of key inputs or assumptions used in the valuation of financial statement items | ' | ' |
Pull-through rate (as a percent) | 61.20% | 62.10% |
Mortgage servicing rights value expressed as: Servicing fee multiple | 1.7 | 2 |
Mortgage servicing rights value expressed as: Percentage of unpaid principal balance | 0.40% | 0.40% |
Interest rate lock commitments | Maximum | ' | ' |
Quantitative summary of key inputs or assumptions used in the valuation of financial statement items | ' | ' |
Pull-through rate (as a percent) | 99.00% | 98.10% |
Mortgage servicing rights value expressed as: Servicing fee multiple | 5 | 5 |
Mortgage servicing rights value expressed as: Percentage of unpaid principal balance | 2.50% | 2.40% |
Interest rate lock commitments | Weighted average | ' | ' |
Quantitative summary of key inputs or assumptions used in the valuation of financial statement items | ' | ' |
Pull-through rate (as a percent) | 79.70% | 81.70% |
Mortgage servicing rights value expressed as: Servicing fee multiple | 3.8 | 3.7 |
Mortgage servicing rights value expressed as: Percentage of unpaid principal balance | 1.20% | 0.90% |
Fair_Value_Details_7
Fair Value (Details 7) (Mortgage servicing rights, Initial recognition, Level 3, USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Fair value | ' | ' | ' | ' |
MSR and pool characteristics | ' | ' | ' | ' |
Amount recognized | $6,381,000 | $4,157,000 | $20,647,000 | $4,177,000 |
Unpaid principal balance of underlying mortgage loans | 515,866,000 | 315,869,000 | 1,627,529,000 | 318,066,000 |
Weighted-average servicing fee rate (as a percent) | 0.34% | 0.31% | 0.33% | 0.31% |
Inputs: | ' | ' | ' | ' |
Annual total prepayment speed (as a percent) | ' | 17.20% | ' | ' |
Annual per-loan cost of servicing | ' | 120 | ' | ' |
Fair value | Minimum | ' | ' | ' | ' |
Inputs: | ' | ' | ' | ' |
Pricing spread (as a percent) | 8.00% | 7.40% | 8.00% | 7.40% |
Annual total prepayment speed (as a percent) | 7.60% | 8.80% | 7.60% | 8.80% |
Life (in years) | '1 year 7 months 6 days | '3 years 7 months 6 days | '1 year 7 months 6 days | '3 years 7 months 6 days |
Annual per-loan cost of servicing | 54 | 68 | 53 | 68 |
Fair value | Maximum | ' | ' | ' | ' |
Inputs: | ' | ' | ' | ' |
Pricing spread (as a percent) | 15.40% | 13.10% | 16.20% | 13.10% |
Annual total prepayment speed (as a percent) | 42.30% | ' | 42.30% | 17.20% |
Life (in years) | '7 years 3 months 18 days | '7 years | '7 years 6 months | '7 years |
Annual per-loan cost of servicing | 93 | ' | 100 | 120 |
Fair value | Weighted average | ' | ' | ' | ' |
Inputs: | ' | ' | ' | ' |
Pricing spread (as a percent) | 11.60% | 9.90% | 11.40% | 9.90% |
Annual total prepayment speed (as a percent) | 9.70% | 9.20% | 9.00% | 9.20% |
Life (in years) | '6 years 8 months 12 days | '6 years 10 months 24 days | '7 years | '6 years 10 months 24 days |
Annual per-loan cost of servicing | 83 | 101 | 89 | 101 |
Amortized cost | ' | ' | ' | ' |
MSR and pool characteristics | ' | ' | ' | ' |
Amount recognized | 54,819,000 | 55,981,000 | 127,727,000 | 150,175,000 |
Unpaid principal balance of underlying mortgage loans | 4,498,619,000 | 4,120,962,000 | 10,672,629,000 | 12,350,104,000 |
Weighted-average servicing fee rate (as a percent) | 0.31% | 0.30% | 0.31% | 0.29% |
Amortized cost | Minimum | ' | ' | ' | ' |
Inputs: | ' | ' | ' | ' |
Pricing spread (as a percent) | 7.50% | 5.40% | 6.80% | 5.40% |
Annual total prepayment speed (as a percent) | 7.60% | 8.50% | 7.60% | 8.50% |
Life (in years) | '1 year 4 months 24 days | '2 years 10 months 24 days | '1 year 4 months 24 days | '2 years 10 months 24 days |
Annual per-loan cost of servicing | 54 | 68 | 53 | 68 |
Amortized cost | Maximum | ' | ' | ' | ' |
Inputs: | ' | ' | ' | ' |
Pricing spread (as a percent) | 15.20% | 15.90% | 15.20% | 15.90% |
Annual total prepayment speed (as a percent) | 47.80% | 14.70% | 47.80% | 18.50% |
Life (in years) | '7 years 3 months 18 days | '6 years 10 months 24 days | '7 years 6 months | '6 years 10 months 24 days |
Annual per-loan cost of servicing | 93 | 120 | 100 | 120 |
Amortized cost | Weighted average | ' | ' | ' | ' |
Inputs: | ' | ' | ' | ' |
Pricing spread (as a percent) | 10.90% | 8.20% | 10.80% | 8.20% |
Annual total prepayment speed (as a percent) | 8.30% | 8.80% | 8.20% | 8.80% |
Life (in years) | '7 years 1 month 6 days | '6 years 8 months 12 days | '7 years 1 month 6 days | '6 years 8 months 12 days |
Annual per-loan cost of servicing | $85 | $104 | $90 | $102 |
Fair_Value_Details_8
Fair Value (Details 8) (Level 3, USD $) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2014 | Dec. 31, 2013 | |
Excess servicing spread financing | ' | ' |
Quantitative summary of key inputs used in the valuation and the effect on estimated fair value from adverse changes in those assumptions | ' | ' |
Unpaid principal balance of underlying mortgage loans | $27,702,102,000 | $20,512,659,000 |
Average servicing fee rate (as a percent) | 0.31% | 0.32% |
Average excess servicing spread (as a percent) | 0.16% | 0.16% |
Minimum | Excess servicing spread financing | ' | ' |
Discount rate | ' | ' |
Pricing spread (as a percent) | 1.70% | 2.80% |
Prepayment speed | ' | ' |
Average life of ESS (in years) | '4 months 24 days | '10 months 24 days |
Per-loan annual cost of servicing | ' | ' |
Prepayment speed of ESS (as a percent) | 7.60% | 7.70% |
Maximum | Excess servicing spread financing | ' | ' |
Discount rate | ' | ' |
Pricing spread (as a percent) | 11.80% | 14.40% |
Prepayment speed | ' | ' |
Average life of ESS (in years) | '7 years 3 months 18 days | '8 years |
Per-loan annual cost of servicing | ' | ' |
Prepayment speed of ESS (as a percent) | 72.40% | 48.60% |
Weighted average | Excess servicing spread financing | ' | ' |
Discount rate | ' | ' |
Pricing spread (as a percent) | 5.00% | 5.40% |
Prepayment speed | ' | ' |
Average life of ESS (in years) | '5 years 9 months 18 days | '6 years 1 month 6 days |
Per-loan annual cost of servicing | ' | ' |
Prepayment speed of ESS (as a percent) | 10.80% | 9.70% |
Purchased MSRs Backed by Distressed Mortgage Loans | Period end | Fair value | ' | ' |
Quantitative summary of key inputs used in the valuation and the effect on estimated fair value from adverse changes in those assumptions | ' | ' |
Carrying value | ' | 10,129,000 |
Unpaid principal balance of underlying mortgage loans | ' | 969,794,000 |
Weighted-average note interest rate (as a percent) | ' | 5.80% |
Weighted-average servicing fee rate (as a percent) | ' | 0.50% |
Discount rate | ' | ' |
Effect on fair value of 5% adverse change | ' | -251,000 |
Effect on fair value of 10% adverse change | ' | -490,000 |
Effect on fair value of 20% adverse change | ' | -937,000 |
Prepayment speed | ' | ' |
Effect on fair value of 5% adverse change | ' | -231,000 |
Effect on fair value of 10% adverse change | ' | -456,000 |
Effect on fair value of 20% adverse change | ' | -898,000 |
Per-loan annual cost of servicing | ' | ' |
Effect on fair value of 5% adverse change | ' | -197,000 |
Effect on fair value of 10% adverse change | ' | -393,000 |
Effect on fair value of 20% adverse change | ' | -787,000 |
Purchased MSRs Backed by Distressed Mortgage Loans | Period end | Fair value | Minimum | ' | ' |
Quantitative summary of key inputs used in the valuation and the effect on estimated fair value from adverse changes in those assumptions | ' | ' |
Discount rate (as a percent) | ' | 15.30% |
Prepayment speed | ' | ' |
Average life of MSRs (in years) | ' | '5 years |
Prepayment speed of MSRs (as a percent) | ' | 11.40% |
Per-loan annual cost of servicing | ' | ' |
Annual per-loan cost of servicing | ' | 218,000 |
Purchased MSRs Backed by Distressed Mortgage Loans | Period end | Fair value | Maximum | ' | ' |
Quantitative summary of key inputs used in the valuation and the effect on estimated fair value from adverse changes in those assumptions | ' | ' |
Discount rate (as a percent) | ' | 15.30% |
Prepayment speed | ' | ' |
Average life of MSRs (in years) | ' | '5 years |
Prepayment speed of MSRs (as a percent) | ' | 11.40% |
Per-loan annual cost of servicing | ' | ' |
Annual per-loan cost of servicing | ' | 218,000 |
Purchased MSRs Backed by Distressed Mortgage Loans | Period end | Fair value | Weighted average | ' | ' |
Quantitative summary of key inputs used in the valuation and the effect on estimated fair value from adverse changes in those assumptions | ' | ' |
Discount rate (as a percent) | ' | 15.30% |
Prepayment speed | ' | ' |
Average life of MSRs (in years) | ' | '5 years |
Prepayment speed of MSRs (as a percent) | ' | 11.40% |
Per-loan annual cost of servicing | ' | ' |
Annual per-loan cost of servicing | ' | 218,000 |
Other Mortgage Servicing Rights [Member] | Period end | Fair value | ' | ' |
Quantitative summary of key inputs used in the valuation and the effect on estimated fair value from adverse changes in those assumptions | ' | ' |
Carrying value | 319,149,000 | 214,784,000 |
Unpaid principal balance of underlying mortgage loans | 30,200,789,000 | 22,469,179,000 |
Weighted-average note interest rate (as a percent) | 4.27% | 4.48% |
Weighted-average servicing fee rate (as a percent) | 0.31% | 0.32% |
Prepayment speed | ' | ' |
Effect on fair value of 5% adverse change | -6,911,000 | -4,622,000 |
Effect on fair value of 10% adverse change | -13,564,000 | -9,073,000 |
Effect on fair value of 20% adverse change | -26,151,000 | -17,500,000 |
Per-loan annual cost of servicing | ' | ' |
Effect on fair value of 5% adverse change | -5,523,000 | -3,551,000 |
Effect on fair value of 10% adverse change | -10,850,000 | -6,900,000 |
Effect on fair value of 20% adverse change | -20,961,000 | -13,305,000 |
Effect on fair value of 5% adverse change | -3,041,000 | -2,817,000 |
Effect on fair value of 10% adverse change | -6,082,000 | -5,633,000 |
Effect on fair value of 20% adverse change | -12,165,000 | -11,266,000 |
Other Mortgage Servicing Rights [Member] | Period end | Fair value | Minimum | ' | ' |
Discount rate | ' | ' |
Pricing spread (as a percent) | 2.90% | 2.90% |
Prepayment speed | ' | ' |
Average life of MSRs (in years) | '4 months 24 days | '1 month 6 days |
Prepayment speed of MSRs (as a percent) | 7.60% | 7.80% |
Per-loan annual cost of servicing | ' | ' |
Annual per-loan cost of servicing | 62,000 | 68,000 |
Other Mortgage Servicing Rights [Member] | Period end | Fair value | Maximum | ' | ' |
Discount rate | ' | ' |
Pricing spread (as a percent) | 20.10% | 18.00% |
Prepayment speed | ' | ' |
Average life of MSRs (in years) | '8 years 2 months 12 days | '14 years 4 months 24 days |
Prepayment speed of MSRs (as a percent) | 57.60% | 50.80% |
Per-loan annual cost of servicing | ' | ' |
Annual per-loan cost of servicing | 115,000 | 115,000 |
Other Mortgage Servicing Rights [Member] | Period end | Fair value | Weighted average | ' | ' |
Discount rate | ' | ' |
Pricing spread (as a percent) | 9.00% | 7.50% |
Prepayment speed | ' | ' |
Average life of MSRs (in years) | '5 years 10 months 24 days | '6 years 2 months 12 days |
Prepayment speed of MSRs (as a percent) | 10.70% | 9.70% |
Per-loan annual cost of servicing | ' | ' |
Annual per-loan cost of servicing | 81,000 | 87,000 |
Other Mortgage Servicing Rights [Member] | Period end | Amortized cost | ' | ' |
Quantitative summary of key inputs used in the valuation and the effect on estimated fair value from adverse changes in those assumptions | ' | ' |
Carrying value | 358,264,000 | 258,751,000 |
Unpaid principal balance of underlying mortgage loans | 30,664,622,000 | 22,499,847,000 |
Weighted-average note interest rate (as a percent) | 3.80% | 3.65% |
Weighted-average servicing fee rate (as a percent) | 0.29% | 0.29% |
Prepayment speed | ' | ' |
Effect on fair value of 5% adverse change | -6,313,000 | -4,615,000 |
Effect on fair value of 10% adverse change | -12,441,000 | -9,097,000 |
Effect on fair value of 20% adverse change | -24,173,000 | -17,684,000 |
Per-loan annual cost of servicing | ' | ' |
Effect on fair value of 5% adverse change | -8,137,000 | -5,312,000 |
Effect on fair value of 10% adverse change | -15,943,000 | -10,395,000 |
Effect on fair value of 20% adverse change | -30,637,000 | -20,039,000 |
Effect on fair value of 5% adverse change | -2,706,000 | -2,609,000 |
Effect on fair value of 10% adverse change | -5,411,000 | -5,217,000 |
Effect on fair value of 20% adverse change | -10,822,000 | -10,434,000 |
Other Mortgage Servicing Rights [Member] | Period end | Amortized cost | Minimum | ' | ' |
Discount rate | ' | ' |
Pricing spread (as a percent) | 6.30% | 6.30% |
Prepayment speed | ' | ' |
Average life of MSRs (in years) | '1 year 6 months | '1 year 6 months |
Prepayment speed of MSRs (as a percent) | 7.60% | 7.60% |
Per-loan annual cost of servicing | ' | ' |
Annual per-loan cost of servicing | 62,000 | 68,000 |
Other Mortgage Servicing Rights [Member] | Period end | Amortized cost | Maximum | ' | ' |
Discount rate | ' | ' |
Pricing spread (as a percent) | 15.40% | 14.50% |
Prepayment speed | ' | ' |
Average life of MSRs (in years) | '7 years 3 months 18 days | '7 years 3 months 18 days |
Prepayment speed of MSRs (as a percent) | 45.20% | 42.50% |
Per-loan annual cost of servicing | ' | ' |
Annual per-loan cost of servicing | 79,000 | 100,000 |
Other Mortgage Servicing Rights [Member] | Period end | Amortized cost | Weighted average | ' | ' |
Discount rate | ' | ' |
Pricing spread (as a percent) | 10.00% | 8.70% |
Prepayment speed | ' | ' |
Average life of MSRs (in years) | '6 years 9 months 18 days | '7 years |
Prepayment speed of MSRs (as a percent) | 8.40% | 8.00% |
Per-loan annual cost of servicing | ' | ' |
Annual per-loan cost of servicing | $78,000 | $99,000 |
Mortgage_Loans_Held_for_Sale_a2
Mortgage Loans Held for Sale at Fair Value (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Mortgage Loans Held for Sale at Fair Value | ' | ' |
Mortgage loans held for sale at fair value | $1,259,991 | $531,004 |
Fair value of mortgage loans pledged to secure mortgage loans sold under agreements to repurchase | 1,087,425 | 512,350 |
Fair value of mortgage loans pledged to secure mortgage loan participation and sale agreement | 146,798 | ' |
Government-insured or guaranteed | ' | ' |
Mortgage Loans Held for Sale at Fair Value | ' | ' |
Mortgage loans held for sale at fair value | 895,952 | 482,066 |
Conventional mortgage loans | ' | ' |
Mortgage Loans Held for Sale at Fair Value | ' | ' |
Mortgage loans held for sale at fair value | 76,119 | 45,005 |
Jumbo Loan | ' | ' |
Mortgage Loans Held for Sale at Fair Value | ' | ' |
Mortgage loans held for sale at fair value | 1,864 | ' |
Mortgage loans purchased from Ginnie Mae pools serviced by the entity | ' | ' |
Mortgage Loans Held for Sale at Fair Value | ' | ' |
Mortgage loans held for sale at fair value | 282,572 | ' |
Mortgage loans repurchased pursuant to representations and warranties | ' | ' |
Mortgage Loans Held for Sale at Fair Value | ' | ' |
Mortgage loans held for sale at fair value | $3,484 | $3,933 |
Derivative_Financial_Instrumen2
Derivative Financial Instruments (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | |
Derivative assets, fair value | ' | ' | ' | ' | ' |
Total derivative assets before netting | $34,265,000 | ' | $34,265,000 | ' | $28,898,000 |
Netting | -5,865,000 | ' | -5,865,000 | ' | -7,358,000 |
Total derivative assets | 28,400,000 | ' | 28,400,000 | ' | 21,540,000 |
Derivative liabilities, fair value | ' | ' | ' | ' | ' |
Total derivative liabilities before netting | 11,355,000 | ' | 11,355,000 | ' | 9,249,000 |
Netting | -6,915,000 | ' | -6,915,000 | ' | -6,787,000 |
Total derivative liabilities | 4,440,000 | ' | 4,440,000 | ' | 2,462,000 |
Net gains on mortgage loans held for sale at fair value | ' | ' | ' | ' | ' |
Activity for derivative contracts used to hedge the IRLCs and inventory of mortgage loans at notional value | ' | ' | ' | ' | ' |
Net gains (losses) on derivative financial instruments used to hedge the IRLCs and mortgage loans held for sale at fair value | 5,200,000 | 4,600,000 | 64,000,000 | 101,900,000 | ' |
Amortization Impairment and Changes in Estimated Fair Value of Mortgage Servicing Rights [Member] | ' | ' | ' | ' | ' |
Activity for derivative contracts used to hedge the IRLCs and inventory of mortgage loans at notional value | ' | ' | ' | ' | ' |
Net gains (losses) on derivative financial instruments used to hedge the IRLCs and mortgage loans held for sale at fair value | 897,000 | ' | 8,300,000 | 1,300,000 | ' |
Not designated as hedging instrument | ' | ' | ' | ' | ' |
Derivative assets, fair value | ' | ' | ' | ' | ' |
Total derivative assets before netting | 34,265,000 | ' | 34,265,000 | ' | 28,898,000 |
Netting | -5,865,000 | ' | -5,865,000 | ' | -7,358,000 |
Total derivative assets | 28,400,000 | ' | 28,400,000 | ' | 21,540,000 |
Derivative liabilities, fair value | ' | ' | ' | ' | ' |
Total derivative liabilities before netting | 11,355,000 | ' | 11,355,000 | ' | 9,249,000 |
Netting | -6,915,000 | ' | -6,915,000 | ' | -6,787,000 |
Total derivative liabilities | 4,440,000 | ' | 4,440,000 | ' | 2,462,000 |
Not designated as hedging instrument | Interest rate lock commitments | ' | ' | ' | ' | ' |
Derivative Instruments | ' | ' | ' | ' | ' |
Notional amount | 1,740,376,000 | ' | 1,740,376,000 | ' | 971,783,000 |
Derivative assets, fair value | ' | ' | ' | ' | ' |
Total derivative assets before netting | 23,691,000 | ' | 23,691,000 | ' | 8,964,000 |
Derivative liabilities, fair value | ' | ' | ' | ' | ' |
Total derivative liabilities before netting | 1,055,000 | ' | 1,055,000 | ' | 2,203,000 |
Activity for derivative contracts used to hedge the IRLCs and inventory of mortgage loans at notional value | ' | ' | ' | ' | ' |
Balance at beginning of period | ' | ' | ' | ' | 971,783,000 |
Balance end of period | 1,740,376,000 | ' | 1,740,376,000 | ' | 971,783,000 |
Not designated as hedging instrument | Forward contracts | Purchases | ' | ' | ' | ' | ' |
Derivative Instruments | ' | ' | ' | ' | ' |
Notional amount | 2,804,597,000 | 1,580,434,000 | 2,804,597,000 | 1,580,434,000 | ' |
Derivative assets, fair value | ' | ' | ' | ' | ' |
Total derivative assets before netting | 5,686,000 | ' | 5,686,000 | ' | 416,000 |
Derivative liabilities, fair value | ' | ' | ' | ' | ' |
Total derivative liabilities before netting | 645,000 | ' | 645,000 | ' | 6,542,000 |
Activity for derivative contracts used to hedge the IRLCs and inventory of mortgage loans at notional value | ' | ' | ' | ' | ' |
Balance at beginning of period | 2,789,277,000 | 2,071,590,000 | 1,418,527,000 | 1,021,981,000 | ' |
Additions | 12,668,171,000 | 13,386,366,000 | 30,178,842,000 | 35,012,198,000 | ' |
Dispositions/expirations | -12,652,851,000 | -13,877,522,000 | -28,792,772,000 | -34,453,745,000 | ' |
Balance end of period | 2,804,597,000 | 1,580,434,000 | 2,804,597,000 | 1,580,434,000 | ' |
Not designated as hedging instrument | Forward contracts | Sales | ' | ' | ' | ' | ' |
Derivative Instruments | ' | ' | ' | ' | ' |
Notional amount | 4,299,329,000 | 3,086,889,000 | 4,299,329,000 | 3,086,889,000 | ' |
Derivative assets, fair value | ' | ' | ' | ' | ' |
Total derivative assets before netting | 1,273,000 | ' | 1,273,000 | ' | 18,762,000 |
Derivative liabilities, fair value | ' | ' | ' | ' | ' |
Total derivative liabilities before netting | 9,655,000 | ' | 9,655,000 | ' | 504,000 |
Activity for derivative contracts used to hedge the IRLCs and inventory of mortgage loans at notional value | ' | ' | ' | ' | ' |
Balance at beginning of period | 4,617,100,000 | 4,226,940,000 | 2,659,000,000 | 2,621,948,000 | ' |
Additions | 17,409,056,000 | 18,727,428,000 | 43,791,245,000 | 51,199,986,000 | ' |
Dispositions/expirations | -17,726,827,000 | -19,867,479,000 | -42,150,916,000 | -50,735,045,000 | ' |
Balance end of period | 4,299,329,000 | 3,086,889,000 | 4,299,329,000 | 3,086,889,000 | ' |
Not designated as hedging instrument | MBS put options | ' | ' | ' | ' | ' |
Derivative Instruments | ' | ' | ' | ' | ' |
Notional amount | 430,000,000 | ' | 430,000,000 | ' | ' |
Derivative assets, fair value | ' | ' | ' | ' | ' |
Total derivative assets before netting | 625,000 | ' | 625,000 | ' | 665,000 |
Activity for derivative contracts used to hedge the IRLCs and inventory of mortgage loans at notional value | ' | ' | ' | ' | ' |
Balance at beginning of period | 225,000,000 | 260,000,000 | 185,000,000 | 500,000,000 | ' |
Additions | 505,000,000 | 50,000,000 | 1,145,000,000 | 2,210,000,000 | ' |
Dispositions/expirations | -300,000,000 | -310,000,000 | -900,000,000 | -2,710,000,000 | ' |
Balance end of period | 430,000,000 | ' | 430,000,000 | ' | ' |
Not designated as hedging instrument | MBS call options | ' | ' | ' | ' | ' |
Derivative Instruments | ' | ' | ' | ' | ' |
Notional amount | 50,000,000 | ' | 50,000,000 | ' | ' |
Derivative assets, fair value | ' | ' | ' | ' | ' |
Total derivative assets before netting | 227,000 | ' | 227,000 | ' | 91,000 |
Activity for derivative contracts used to hedge the IRLCs and inventory of mortgage loans at notional value | ' | ' | ' | ' | ' |
Balance at beginning of period | 95,000,000 | 625,000,000 | 105,000,000 | ' | ' |
Additions | 50,000,000 | 300,000,000 | 590,000,000 | 2,100,000,000 | ' |
Dispositions/expirations | -95,000,000 | -925,000,000 | -645,000,000 | -2,100,000,000 | ' |
Balance end of period | 50,000,000 | ' | 50,000,000 | ' | ' |
Not designated as hedging instrument | Put options on Eurodollar futures | ' | ' | ' | ' | ' |
Derivative Instruments | ' | ' | ' | ' | ' |
Notional amount | 795,000,000 | ' | 795,000,000 | ' | ' |
Derivative assets, fair value | ' | ' | ' | ' | ' |
Total derivative assets before netting | 1,713,000 | ' | 1,713,000 | ' | ' |
Activity for derivative contracts used to hedge the IRLCs and inventory of mortgage loans at notional value | ' | ' | ' | ' | ' |
Balance at beginning of period | 377,500,000 | ' | ' | ' | ' |
Additions | 1,320,000,000 | ' | 2,022,500,000 | ' | ' |
Dispositions/expirations | -902,500,000 | ' | -1,227,500,000 | ' | ' |
Balance end of period | 795,000,000 | ' | 795,000,000 | ' | ' |
Not designated as hedging instrument | Call options on Eurodollar futures | ' | ' | ' | ' | ' |
Derivative Instruments | ' | ' | ' | ' | ' |
Notional amount | 450,000,000 | ' | 450,000,000 | ' | ' |
Derivative assets, fair value | ' | ' | ' | ' | ' |
Total derivative assets before netting | 1,050,000 | ' | 1,050,000 | ' | ' |
Activity for derivative contracts used to hedge the IRLCs and inventory of mortgage loans at notional value | ' | ' | ' | ' | ' |
Balance at beginning of period | 170,000,000 | ' | ' | ' | ' |
Additions | 675,000,000 | ' | 1,055,000,000 | ' | ' |
Dispositions/expirations | -395,000,000 | ' | -605,000,000 | ' | ' |
Balance end of period | 450,000,000 | ' | 450,000,000 | ' | ' |
Not designated as hedging instrument | Treasury future | Purchases | ' | ' | ' | ' | ' |
Activity for derivative contracts used to hedge the IRLCs and inventory of mortgage loans at notional value | ' | ' | ' | ' | ' |
Additions | 65,600,000 | ' | 143,900,000 | ' | ' |
Dispositions/expirations | -65,600,000 | ' | -143,900,000 | ' | ' |
Not designated as hedging instrument | Treasury future | Sales | ' | ' | ' | ' | ' |
Activity for derivative contracts used to hedge the IRLCs and inventory of mortgage loans at notional value | ' | ' | ' | ' | ' |
Additions | 78,200,000 | ' | 165,600,000 | ' | ' |
Dispositions/expirations | -78,200,000 | ' | -165,600,000 | ' | ' |
Not designated as hedging instrument | Call options on futures | ' | ' | ' | ' | ' |
Activity for derivative contracts used to hedge the IRLCs and inventory of mortgage loans at notional value | ' | ' | ' | ' | ' |
Additions | 35,000,000 | ' | 35,000,000 | ' | ' |
Dispositions/expirations | ($35,000,000) | ' | ($35,000,000) | ' | ' |
Mortgage_Servicing_Rights_Deta
Mortgage Servicing Rights (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | Mortgage servicing rights | Mortgage servicing rights | Mortgage servicing rights | Mortgage servicing rights | ||
Activity in MSRs carried at fair value | ' | ' | ' | ' | ' | ' |
Balance at beginning of period | $319,149 | $224,913 | $308,599 | $23,070 | $224,913 | $19,798 |
Additions - Purchases | ' | ' | 15,704 | 1,116 | 113,348 | 5,124 |
Additions - Mortgage servicing rights resulting from mortgage loan sales | ' | ' | 6,381 | 4,157 | 20,647 | 4,177 |
Additions | ' | ' | 22,085 | 5,273 | 133,995 | 9,301 |
Sales | ' | ' | ' | ' | -10,916 | -550 |
Change in fair value: | ' | ' | ' | ' | ' | ' |
Changes in valuation inputs or assumptions used in valuation model | ' | ' | -544 | -635 | -989 | 1,233 |
Other changes in fair value | ' | ' | -10,991 | -940 | -27,854 | -3,014 |
Total change in fair value | ' | ' | -11,535 | -1,575 | -28,843 | -1,781 |
Balance at end of period | $319,149 | $224,913 | $319,149 | $26,768 | $319,149 | $26,768 |
Mortgage_Servicing_Rights_Deta1
Mortgage Servicing Rights (Details 2) (Mortgage servicing rights, USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Mortgage servicing rights | ' | ' | ' | ' |
Amortized cost: | ' | ' | ' | ' |
Amortized cost at beginning of period | $321,911 | $179,003 | $263,373 | $92,155 |
Mortgage servicing rights resulting from mortgage loan sales | 54,819 | 55,981 | 127,727 | 150,175 |
Amortization | -8,712 | -5,367 | -23,082 | -12,713 |
Amortized cost at end of period | 368,018 | 229,617 | 368,018 | 229,617 |
Valuation allowance: | ' | ' | ' | ' |
Balance at beginning of period | -8,829 | -2,335 | -4,622 | -2,978 |
(Additions) reversals | -925 | -1,192 | -5,132 | -549 |
Balance at of period end | -9,754 | -3,527 | -9,754 | -3,527 |
Additional disclosures | ' | ' | ' | ' |
Mortgage servicing rights, net | 358,264 | 226,090 | 358,264 | 226,090 |
Fair value of mortgage servicing rights at end of period | 368,720 | 239,326 | 368,720 | 239,326 |
Estimated amortization | ' | ' | ' | ' |
2015 | 34,263 | ' | 34,263 | ' |
2016 | 34,574 | ' | 34,574 | ' |
2017 | 33,591 | ' | 33,591 | ' |
2018 | 31,574 | ' | 31,574 | ' |
2019 | 28,848 | ' | 28,848 | ' |
Thereafter | 205,168 | ' | 205,168 | ' |
Total | $368,018 | ' | $368,018 | ' |
Mortgage_Servicing_Rights_Deta2
Mortgage Servicing Rights (Details 3) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Net servicing income | ' | ' | ' | ' |
Contractual servicing fees | $44,647 | $14,596 | $124,061 | $35,397 |
Ancillary and other fees | ' | ' | ' | ' |
Other | 6,620 | 2,777 | 16,609 | 7,700 |
Net loan servicing fees | 53,908 | 21,399 | 154,641 | 59,510 |
Mortgage servicing rights | ' | ' | ' | ' |
Net servicing income | ' | ' | ' | ' |
Contractual servicing fees | 44,647 | 14,596 | 124,061 | 35,397 |
Ancillary and other fees | ' | ' | ' | ' |
Late charges | 1,171 | 527 | 3,021 | 1,336 |
Other | 361 | 140 | 785 | 374 |
Net loan servicing fees | $46,179 | $15,263 | $127,867 | $37,107 |
Mortgage_Servicing_Assets_and_1
Mortgage Servicing Assets and Liabilities (Details4) (Mortgage servicing liabilities, USD $) | 3 Months Ended | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2014 |
Mortgage servicing liabilities | ' | ' |
Amortized cost: | ' | ' |
Balance at beginning of period | $5,821 | ' |
Change in fair value due to: | ' | ' |
Total change in fair value | -1,730 | 4,091 |
Balance at end of period | $4,091 | $4,091 |
Carried_Interest_Due_from_Inve2
Carried Interest Due from Investment Funds (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | Investment Funds | Investment Funds | Investment Funds | Investment Funds | ||
item | ||||||
Activity in the carried interest | ' | ' | ' | ' | ' | ' |
Balance at beginning of period | $67,035 | $61,142 | $65,133 | $55,322 | $61,142 | $47,723 |
Carried Interest recognized during the period | ' | ' | 1,902 | 2,812 | 5,893 | 10,411 |
Balance at end of period | $67,035 | $61,142 | $67,035 | $58,134 | $67,035 | $58,134 |
Additional disclosures | ' | ' | ' | ' | ' | ' |
Number of times when agreement will be extended | ' | ' | ' | ' | 3 | ' |
Agreement extensions term | ' | ' | ' | ' | '1 year | ' |
Investment_in_PennyMac_Mortgag2
Investment in PennyMac Mortgage Investment Trust at Fair Value (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 |
Investment in PennyMac Mortgage Investment Trust at Fair Value | ' | ' | ' | ' | ' |
Change in fair value and dividends received | $721 | $950 | $2,771 | $1,774 | ' |
PennyMac Mortgage Investment Trust | ' | ' | ' | ' | ' |
Investment in PennyMac Mortgage Investment Trust at Fair Value | ' | ' | ' | ' | ' |
Dividends | 46 | 43 | 134 | 128 | ' |
Change in fair value | -38 | 122 | -114 | -196 | ' |
Change in fair value and dividends received | 8 | 165 | 20 | -68 | ' |
Fair value of PennyMac Mortgage Investment Trust shares at period end | $1,607 | $1,701 | $1,607 | $1,701 | $1,722 |
Borrowings_Details
Borrowings (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | |
Mortgage loans sold under agreement to repurchase | ' | ' | ' | ' | ' |
Number of borrowing facilities | ' | ' | 6 | ' | ' |
Number of borrowing facilities that provide for sales of mortgage loans under agreements to repurchase | ' | ' | 4 | ' | ' |
Number of facilities that provide for sale of mortgage loan participants certificates | ' | ' | 1 | ' | ' |
Number of secured note payable borrowing facilities | ' | ' | 1 | ' | ' |
Period end: | ' | ' | ' | ' | ' |
Balance | $929,747,000 | ' | $929,747,000 | ' | $471,592,000 |
Fair value of mortgage loans securing agreements to repurchase | 1,087,425,000 | ' | 1,087,425,000 | ' | 512,350,000 |
During the period: | ' | ' | ' | ' | ' |
Amortization of commitment fees excluded from calculation of Weighted average interest rate | ' | ' | 4,217,000 | 3,714,000 | ' |
Weighted-average maturity | ' | ' | '1 month 24 days | ' | ' |
Within 30 days | ' | ' | ' | ' | ' |
Period end: | ' | ' | ' | ' | ' |
Balance | 6,479,000 | ' | 6,479,000 | ' | ' |
Over 30 to 90 days | ' | ' | ' | ' | ' |
Period end: | ' | ' | ' | ' | ' |
Balance | 922,683,000 | ' | 922,683,000 | ' | ' |
Over 90 days | ' | ' | ' | ' | ' |
Period end: | ' | ' | ' | ' | ' |
Balance | 585,000 | ' | 585,000 | ' | ' |
Loan Repo Facility | ' | ' | ' | ' | ' |
Period end: | ' | ' | ' | ' | ' |
Balance | 929,747,000 | 387,883,000 | 929,747,000 | 387,883,000 | ' |
Unused amount | 570,253,000 | 612,117,000 | 570,253,000 | 612,117,000 | ' |
Weighted average interest rate (as a percent) | 1.73% | 1.82% | 1.73% | 1.82% | ' |
Fair value of mortgage loans securing agreements to repurchase | 1,087,425,000 | 522,031,000 | 1,087,425,000 | 522,031,000 | ' |
During the period: | ' | ' | ' | ' | ' |
Average balance of mortgage loans sold under agreements to repurchase | 691,730,000 | 373,386,000 | 505,072,000 | 354,125,000 | ' |
Weighted-average interest rate (as a percent) | 1.83% | 1.89% | 1.82% | 2.02% | ' |
Total interest expense | 4,495,000 | 2,920,000 | 10,506,000 | 8,251,000 | ' |
Maximum daily amount outstanding | 1,010,146,000 | 588,494,000 | 1,010,146,000 | 623,523,000 | ' |
Amortization of commitment fees excluded from calculation of Weighted average interest rate | 1,300,000 | 1,100,000 | 3,500,000 | 2,800,000 | ' |
Deposit with loan repurchase agreement counterparties | 1,500,000 | ' | 1,500,000 | ' | 1,500,000 |
Loan Repo Facility | Credit Suisse First Boston Mortgage Capital LLC | ' | ' | ' | ' | ' |
During the period: | ' | ' | ' | ' | ' |
Amount at risk | 105,334,000 | ' | 105,334,000 | ' | ' |
Loan Repo Facility | Bank of America, N.A. | ' | ' | ' | ' | ' |
During the period: | ' | ' | ' | ' | ' |
Amount at risk | 41,811,000 | ' | 41,811,000 | ' | ' |
Loan Repo Facility | Morgan Stanley Bank, N.A. | ' | ' | ' | ' | ' |
During the period: | ' | ' | ' | ' | ' |
Amount at risk | $11,080,000 | ' | $11,080,000 | ' | ' |
Loan Repo Facility | Overnight cost-of funds rate | ' | ' | ' | ' | ' |
Mortgage loans sold under agreement to repurchase | ' | ' | ' | ' | ' |
Number of borrowing facilities that provide for sales of mortgage loans under agreements to repurchase | ' | ' | 1 | ' | ' |
Loan Repo Facility | LIBOR | ' | ' | ' | ' | ' |
Mortgage loans sold under agreement to repurchase | ' | ' | ' | ' | ' |
Number of borrowing facilities that provide for sales of mortgage loans under agreements to repurchase | ' | ' | 3 | ' | ' |
Borrowings_Details_2
Borrowings (Details 2) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 |
item | ||
Period end: | ' | ' |
Mortgage loan participation and sale agreement secured by mortgage loans | $142,383 | ' |
Note Payable | 154,948 | 52,154 |
Number of facilities that provide for sale of mortgage loan participants certificates | 1 | ' |
Mortgage Loan Participation and Sale Agreement member | Mortgage servicing rights | ' | ' |
Period end: | ' | ' |
Mortgage loan participation and sale agreement secured by mortgage loans | 142,383 | ' |
Mortgage loans pledged to secure mortgage loan participation and sale agreement | 146,798 | ' |
Note Payable | ' | ' |
Period end: | ' | ' |
Note Payable | 154,948 | 52,154 |
Note Payable | Minimum | ' | ' |
Period end: | ' | ' |
Advance rate to secure note payable (as a percent) | 50.00% | ' |
Note Payable | Maximum | ' | ' |
Period end: | ' | ' |
Advance rate to secure note payable (as a percent) | 85.00% | ' |
Note Payable | Mortgage servicing rights | ' | ' |
Period end: | ' | ' |
Note Payable | 154,948 | 48,302 |
Mortgage loans pledged to secure mortgage loan participation and sale agreement | 350,758 | 258,241 |
Note Payable | Servicing advances | ' | ' |
Period end: | ' | ' |
Note Payable | ' | 3,852 |
Mortgage loans pledged to secure mortgage loan participation and sale agreement | ' | $5,564 |
Borrowings_Details_3
Borrowings (Details 3) (Recurring basis, USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Roll forward of liabilities measured using Level 3 inputs on a recurring basis | ' | ' | ' | ' |
Balance at the beginning of the period | $196,065 | ' | $138,723 | ' |
ESS issued Pursuant to a recapture agreement with PennyMac Mortgage Investment Trust | 2,619 | ' | 6,093 | ' |
Accrual of interest expense | 3,577 | ' | 9,578 | ' |
Repayments | 8,786 | ' | 25,280 | ' |
Change in fair value | -11,269 | ' | -20,301 | ' |
Balance at the end of the period | 191,459 | ' | 191,459 | ' |
Excess servicing spread financing | ' | ' | ' | ' |
Roll forward of liabilities measured using Level 3 inputs on a recurring basis | ' | ' | ' | ' |
Balance at the beginning of the period | 190,244 | ' | 138,723 | ' |
Proceeds received from excess servicing spread financing | 9,253 | 2,828 | 82,646 | 2,828 |
ESS issued Pursuant to a recapture agreement with PennyMac Mortgage Investment Trust | 2,619 | ' | 6,093 | ' |
Accrual of interest expense | 3,577 | ' | 9,578 | ' |
Repayments | 8,786 | ' | 25,280 | ' |
Change in fair value | -9,539 | 29 | -24,392 | 29 |
Balance at the end of the period | $187,368 | $2,857 | $187,368 | $2,857 |
Liability_for_Losses_Under_Rep2
Liability for Losses Under Representations and Warranties (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
During the period: | ' | ' | ' | ' |
Balance at beginning of period | $10,178 | $6,185 | $8,123 | $3,504 |
Provision for losses on loans sold | 1,584 | 1,069 | 3,639 | 3,766 |
Incurred losses | ' | -39 | ' | -55 |
Balance at end of period | 11,762 | 7,215 | 11,762 | 7,215 |
Unpaid principal balance of mortgage loans subject to representations and warranties at period end | 33,660,189 | 20,428,213 | 33,660,189 | 20,428,213 |
Representations and Warranties Losses Incurred | ' | 39 | ' | 55 |
Unpaid principal balance of mortgage loans repurchased | 1,003 | 1,973 | 2,715 | 6,840 |
Unpaid principal balance of repurchased mortgage loans repurchased by correspondent lenders | 447 | 357 | 1,673 | 1,410 |
Unpaid principal balance of mortgage loans indemnified by PFSI | 713 | ' | 1,263 | 77 |
Period end: | ' | ' | ' | ' |
Unpaid principal balance of mortgage loans subject to pending claims for repurchase | 11,603 | 1,249 | 11,603 | 1,249 |
Unpaid principal balance of mortgage loans indemnified by PFSI | 1,263 | 77 | 1,263 | 77 |
Unpaid principal balance of mortgage loans subject to representations and warranties | $33,660,189 | $20,428,213 | $33,660,189 | $20,428,213 |
Stockholders_Equity_Details
Stockholders' Equity (Details) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | 9-May-13 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Common Class A [Member] | Common Class A [Member] | Common Class A [Member] | Common Class A [Member] | |||||
Stockholders' Equity | ' | ' | ' | ' | ' | ' | ' | ' |
Number of Class A units exchanged for PFSI Class A common stock (in shares) | ' | ' | ' | ' | 192,527 | 6,110,000 | 671,736 | 6,110,000 |
Noncontrolling interest in Private National Mortgage Acceptance Company, LLC (as a percent) | 71.70% | 72.60% | 75.10% | 83.20% | ' | ' | ' | ' |
Net_Gains_on_Mortgage_Loans_He2
Net Gains on Mortgage Loans Held for Sale (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Cash (loss) gain: | ' | ' | ' | ' |
Sales proceeds | $3,965 | ($93,725) | $21,499 | ($148,866) |
Hedging activities | -12,437 | 88,789 | -48,242 | 128,670 |
Cash gain (loss), net of effects of cash hedging, on sale of mortgage loans held for sale | -8,472 | -4,936 | -26,743 | -20,196 |
Non-cash gain: | ' | ' | ' | ' |
Mortgage servicing rights resulting from mortgage loan sales | 61,200 | 60,138 | 148,374 | 154,352 |
MSR and ESS recapture payable to PennyMac Mortgage Investment Trust | -2,143 | -86 | -6,567 | -586 |
Provision for losses relating to representations and warranties on loans sold | -1,584 | -1,069 | -3,639 | -3,766 |
Change in fair value relating to loans and hedging derivatives held at period end: | ' | ' | ' | ' |
Interest rate lock commitments | -7,114 | 37,768 | 15,875 | -2,382 |
Mortgage loans | -976 | 27,509 | 10,870 | 7,876 |
Hedging derivatives | 7,222 | -93,375 | -15,795 | -26,738 |
Net gains on mortgage loans held for sale at fair value | $48,133 | $25,949 | $122,375 | $108,560 |
Net_Interest_Expense_Details
Net Interest Expense (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Interest income: | ' | ' | ' | ' |
Short-term investments | $511 | $432 | $1,037 | $635 |
Mortgage loans held for sale at fair value | 8,464 | 4,661 | 18,300 | 10,675 |
Interest income | 8,975 | 5,093 | 19,337 | 11,310 |
Interest expense: | ' | ' | ' | ' |
Mortgage loans sold under agreements to repurchase | 4,495 | 2,920 | 10,506 | 8,251 |
Mortgage loan participation and sale agreement | 39 | ' | 39 | ' |
Note payable | 1,239 | 681 | 2,759 | 2,326 |
Excess servicing spread financing at fair value payable to PennyMac Mortgage Investment Trust | 3,577 | ' | 9,578 | ' |
Other | 2,363 | 555 | 3,949 | 1,109 |
Interest expense | 11,713 | 4,156 | 26,831 | 11,686 |
Net interest expense: | ($2,738) | $937 | ($7,494) | ($376) |
Stockbased_Compensation_Detail
Stock-based Compensation (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Stock-Based Compensation | ' | ' | ' | ' |
Units available for future awards under 2013 Equity Incentive Plan (in units) | 16,500,000 | ' | 16,500,000 | ' |
Stock-based compensation expense | $1,913 | $1,387 | $7,222 | $1,932 |
Stock Options | ' | ' | ' | ' |
Stock-Based Compensation | ' | ' | ' | ' |
Stock-based compensation expense | 1,353 | 593 | 3,915 | 791 |
Summary of equity awards, options | ' | ' | ' | ' |
Balance at beginning of period (in units) | 1,024,000 | 424,000 | 422,000 | ' |
Granted (in units) | 16,000 | ' | 769,000 | 424,000 |
Vested (in units) | ' | ' | -138,000 | ' |
Expired or canceled (in units) | -6,000 | -1,000 | -19,000 | -1,000 |
Balance at end of period (in units) | 1,034,000 | 423,000 | 1,034,000 | 423,000 |
Performance-based RSUs | ' | ' | ' | ' |
Stock-Based Compensation | ' | ' | ' | ' |
Stock-based compensation expense | 61 | 464 | 1,935 | 746 |
Summary of equity award grants, RSUs | ' | ' | ' | ' |
Balance at beginning of period (in units) | 1,100,000 | 500,000 | 496,000 | ' |
Granted (in units) | 180,000 | ' | 794,000 | 500,000 |
Expired or canceled (in units) | -9,000 | -1,000 | -19,000 | -1,000 |
Balance at end of period (in units) | 1,271,000 | 499,000 | 1,271,000 | 499,000 |
Time-based RSUs | ' | ' | ' | ' |
Stock-Based Compensation | ' | ' | ' | ' |
Stock-based compensation expense | $499 | $330 | $1,372 | $395 |
Summary of equity award grants, RSUs | ' | ' | ' | ' |
Balance at beginning of period (in units) | 196,000 | 72,000 | 100,000 | ' |
Granted (in units) | 12,000 | 27,000 | 144,000 | 99,000 |
Vested (in units) | ' | ' | -31,000 | ' |
Expired or canceled (in units) | -3,000 | -1,000 | -8,000 | -1,000 |
Balance at end of period (in units) | 205,000 | 98,000 | 205,000 | 98,000 |
Income_Taxes_Details
Income Taxes (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Income Taxes | ' | ' | ' | ' |
Effective tax rate (as a percent) | 11.50% | 9.90% | 11.40% | 4.00% |
Supplemental_Cash_Flow_Informa2
Supplemental Cash Flow Information (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Supplemental Cash Flow Information | ' | ' | ' | ' |
Cash paid for interest | ' | ' | $25,724 | $11,110 |
Cash paid for income taxes | ' | ' | 4,715 | 7 |
Non-cash investing activity: | ' | ' | ' | ' |
Mortgage servicing rights resulting from mortgage loan sales | 61,200 | 60,138 | 148,374 | 154,352 |
Non-cash financing activity: | ' | ' | ' | ' |
Transfer of excess servicing spread pursuant to recapture agreement with PennyMac Mortgage Investment Trust | ' | ' | 6,093 | ' |
Issuance of common stock in settlement of director fees | ' | ' | $147 | ' |
Regulatory_Net_Worth_and_Agenc2
Regulatory Net Worth and Agency Capital Requirements (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fannie Mae-PLS | ' | ' |
Regulatory Net Worth and Agency Capital Requirements | ' | ' |
Net worth | $542,020 | $409,552 |
Required | 90,616 | 83,148 |
Freddie Mac-PLS | ' | ' |
Regulatory Net Worth and Agency Capital Requirements | ' | ' |
Net worth | 542,196 | 409,860 |
Required | 3,378 | 3,001 |
Ginnie Mae - Issuer - PLS | ' | ' |
Regulatory Net Worth and Agency Capital Requirements | ' | ' |
Net worth | 488,804 | 388,125 |
Required | 106,780 | 102,619 |
Ginnie Mae - Issuer's parent - PennyMac | ' | ' |
Regulatory Net Worth and Agency Capital Requirements | ' | ' |
Net worth | 712,107 | 598,198 |
Required | 128,136 | 112,881 |
HUD - PLS | ' | ' |
Regulatory Net Worth and Agency Capital Requirements | ' | ' |
Net worth | 488,804 | 388,125 |
Required | $2,500 | $2,500 |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details) (USD $) | Sep. 30, 2014 |
In Thousands, unless otherwise specified | |
Commitments and Contingencies. | ' |
Commitments to purchase mortgage loans from PennyMac Mortgage Investment Trust | $1,020,175 |
Commitments to fund mortgage loans | 720,201 |
Total commitments to purchase and fund mortgage loans | 1,740,376 |
Commitments to sell mortgage loans | $4,299,329 |
Segments_and_Related_Informati2
Segments and Related Information (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 |
item | ||||||
Segments and Related Information | ' | ' | ' | ' | ' | ' |
Number of segments | ' | ' | 3 | ' | ' | ' |
Revenues: | ' | ' | ' | ' | ' | ' |
Net gains on mortgage loans held for sale at fair value | $48,133 | $25,949 | $122,375 | $108,560 | ' | ' |
Loan origination fees | 11,823 | 6,280 | 29,048 | 18,260 | ' | ' |
Net servicing fees | 53,908 | 21,399 | 154,641 | 59,510 | ' | ' |
Management fees | 11,379 | 10,540 | 32,486 | 29,375 | ' | ' |
Carried Interest from Investment Funds | 1,902 | 2,812 | 5,893 | 10,411 | ' | ' |
Net interest (expense) income: | ' | ' | ' | ' | ' | ' |
Interest income | 8,975 | 5,093 | 19,337 | 11,310 | ' | ' |
Interest expense | 11,713 | 4,156 | 26,831 | 11,686 | ' | ' |
Net interest expense: | -2,738 | 937 | -7,494 | -376 | ' | ' |
Other | 721 | 950 | 2,771 | 1,774 | ' | ' |
Total net revenue | 140,625 | 87,194 | 376,552 | 296,139 | ' | ' |
Expenses | 77,933 | 52,277 | 206,752 | 155,700 | ' | ' |
Income before provision for income taxes | 62,692 | 34,917 | 169,800 | 140,439 | ' | ' |
Assets | ' | ' | ' | ' | ' | ' |
Segment assets at period end | 2,538,627 | ' | 2,538,627 | ' | 1,584,475 | ' |
Deferred tax asset | 52,820 | ' | 52,820 | ' | 63,117 | ' |
Cash | 77,251 | 56,398 | 77,251 | 56,398 | 30,639 | 12,323 |
PennyMac Mortgage Investment Trust | ' | ' | ' | ' | ' | ' |
Revenues: | ' | ' | ' | ' | ' | ' |
Fulfillment fees from PennyMac Mortgage Investment Trust | 15,497 | 18,327 | 36,832 | 68,625 | ' | ' |
Management fees | 9,623 | 8,539 | 26,609 | 23,486 | ' | ' |
Net interest (expense) income: | ' | ' | ' | ' | ' | ' |
Interest expense | 3,577 | ' | 9,578 | ' | ' | ' |
Other | 8 | 165 | 20 | -68 | ' | ' |
Investment Funds | ' | ' | ' | ' | ' | ' |
Revenues: | ' | ' | ' | ' | ' | ' |
Management fees | 1,756 | 2,001 | 5,877 | 5,889 | ' | ' |
Carried Interest from Investment Funds | ' | ' | 5,893 | 10,411 | ' | ' |
Mortgage banking | ' | ' | ' | ' | ' | ' |
Segments and Related Information | ' | ' | ' | ' | ' | ' |
Number of segments | ' | ' | 2 | ' | ' | ' |
Parent Company [Member] | ' | ' | ' | ' | ' | ' |
Assets | ' | ' | ' | ' | ' | ' |
Deferred tax asset | 52,800 | ' | 52,800 | ' | ' | ' |
Cash | ' | 54,500 | ' | 54,500 | ' | ' |
Operating segment | ' | ' | ' | ' | ' | ' |
Assets | ' | ' | ' | ' | ' | ' |
Segment assets at period end | 2,481,177 | 1,199,279 | 2,481,177 | 1,199,279 | ' | ' |
Operating segment | Investment management | ' | ' | ' | ' | ' | ' |
Revenues: | ' | ' | ' | ' | ' | ' |
Management fees | 11,379 | 10,540 | 32,486 | 29,375 | ' | ' |
Carried Interest from Investment Funds | 1,902 | 2,812 | 5,893 | 10,411 | ' | ' |
Net interest (expense) income: | ' | ' | ' | ' | ' | ' |
Interest income | ' | 4 | 5 | 14 | ' | ' |
Net interest expense: | ' | 4 | 5 | 14 | ' | ' |
Other | 13 | 614 | 253 | 911 | ' | ' |
Total net revenue | 13,294 | 13,970 | 38,637 | 40,711 | ' | ' |
Expenses | 7,112 | 4,905 | 21,134 | 14,756 | ' | ' |
Income before provision for income taxes | 6,182 | 9,065 | 17,503 | 25,955 | ' | ' |
Assets | ' | ' | ' | ' | ' | ' |
Segment assets at period end | 110,791 | 119,953 | 110,791 | 119,953 | ' | ' |
Operating segment | Mortgage banking | ' | ' | ' | ' | ' | ' |
Revenues: | ' | ' | ' | ' | ' | ' |
Net gains on mortgage loans held for sale at fair value | 48,133 | 25,949 | 122,375 | 108,560 | ' | ' |
Loan origination fees | 11,823 | 6,280 | 29,048 | 18,260 | ' | ' |
Net servicing fees | 53,908 | 21,399 | 154,641 | 59,510 | ' | ' |
Net interest (expense) income: | ' | ' | ' | ' | ' | ' |
Interest income | 8,975 | 5,089 | 19,332 | 11,296 | ' | ' |
Interest expense | 11,713 | 4,156 | 26,831 | 11,686 | ' | ' |
Net interest expense: | -2,738 | 933 | -7,499 | -390 | ' | ' |
Other | 708 | 336 | 2,518 | 863 | ' | ' |
Total net revenue | 127,331 | 73,224 | 337,915 | 255,428 | ' | ' |
Expenses | 70,821 | 47,372 | 185,618 | 140,944 | ' | ' |
Income before provision for income taxes | 56,510 | 25,852 | 152,297 | 114,484 | ' | ' |
Assets | ' | ' | ' | ' | ' | ' |
Segment assets at period end | 2,370,386 | 1,079,326 | 2,370,386 | 1,079,326 | ' | ' |
Operating segment | Mortgage banking | PennyMac Mortgage Investment Trust | ' | ' | ' | ' | ' | ' |
Revenues: | ' | ' | ' | ' | ' | ' |
Fulfillment fees from PennyMac Mortgage Investment Trust | 15,497 | 18,327 | 36,832 | 68,625 | ' | ' |
Operating segment | Mortgage banking Production | ' | ' | ' | ' | ' | ' |
Revenues: | ' | ' | ' | ' | ' | ' |
Net gains on mortgage loans held for sale at fair value | 41,308 | 25,949 | 113,947 | 108,560 | ' | ' |
Loan origination fees | 11,823 | 6,280 | 29,048 | 18,260 | ' | ' |
Net interest (expense) income: | ' | ' | ' | ' | ' | ' |
Interest income | 5,759 | 5,089 | 15,562 | 11,296 | ' | ' |
Interest expense | 3,251 | 2,921 | 8,652 | 8,491 | ' | ' |
Net interest expense: | 2,508 | 2,168 | 6,910 | 2,805 | ' | ' |
Other | 478 | 278 | 1,504 | 686 | ' | ' |
Total net revenue | 71,614 | 53,002 | 188,241 | 198,936 | ' | ' |
Expenses | 32,535 | 31,956 | 90,447 | 95,701 | ' | ' |
Income before provision for income taxes | 39,079 | 21,046 | 97,794 | 103,235 | ' | ' |
Assets | ' | ' | ' | ' | ' | ' |
Segment assets at period end | 1,366,644 | 685,202 | 1,366,644 | 685,202 | ' | ' |
Operating segment | Mortgage banking Production | PennyMac Mortgage Investment Trust | ' | ' | ' | ' | ' | ' |
Revenues: | ' | ' | ' | ' | ' | ' |
Fulfillment fees from PennyMac Mortgage Investment Trust | 15,497 | 18,327 | 36,832 | 68,625 | ' | ' |
Operating segment | Mortgage banking Servicing | ' | ' | ' | ' | ' | ' |
Revenues: | ' | ' | ' | ' | ' | ' |
Net gains on mortgage loans held for sale at fair value | 6,825 | ' | 8,428 | ' | ' | ' |
Net servicing fees | 53,908 | 21,399 | 154,641 | 59,510 | ' | ' |
Net interest (expense) income: | ' | ' | ' | ' | ' | ' |
Interest income | 3,216 | ' | 3,770 | ' | ' | ' |
Interest expense | 8,462 | 1,235 | 18,179 | 3,195 | ' | ' |
Net interest expense: | -5,246 | -1,235 | -14,409 | -3,195 | ' | ' |
Other | 230 | 58 | 1,014 | 177 | ' | ' |
Total net revenue | 55,717 | 20,222 | 149,674 | 56,492 | ' | ' |
Expenses | 38,286 | 15,416 | 95,171 | 45,243 | ' | ' |
Income before provision for income taxes | 17,431 | 4,806 | 54,503 | 11,249 | ' | ' |
Assets | ' | ' | ' | ' | ' | ' |
Segment assets at period end | $1,003,742 | $394,124 | $1,003,742 | $394,124 | ' | ' |
Recently_Issued_Accounting_Pro1
Recently Issued Accounting Pronouncements (Details) | 9 Months Ended |
Sep. 30, 2014 | |
item | |
Recently Issued Accounting Pronouncements | ' |
Number of accounting changes required due to amendment in accounting standards update | 2 |