PennyMac Financial Services (PFSI) 10-Q 2 Nov 18 2018 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2018	Nov. 01, 2018
Document and Entity Information
Entity Registrant Name	PENNYMAC FINANCIAL SERVICES, INC.
Entity Central Index Key	1,745,916
Document Type	10-Q
Document Period End Date	Sep. 30, 2018
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		77,490,572
Entity Small Business	false
Entity Emerging Growth Company	false
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q3

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
ASSETS
Cash (includes $81,640 and $20,765 pledged to creditors)	$ 102,627	$ 37,725
Short-term investments at fair value	145,476	170,080
Mortgage loans held for sale at fair value (includes $2,389,066 and $3,081,987 pledged to creditors)	2,416,955	3,099,103
Derivative assets	73,618	78,179
Servicing advances, net (includes valuation allowance of $65,393 and $59,958; $102,222 and $114,643 pledged to creditors)	259,609	318,066
Mortgage servicing rights (includes $2,785,964 and $638,010 at fair value; $2,539,575 and $2,098,067 pledged to creditors)	2,785,964	2,119,588
Real estate acquired in settlement of loans	2,493	2,447
Furniture, fixtures, equipment and building improvements, net (includes $19,022 and $23,915 pledged to creditors)	31,662	29,453
Capitalized software, net (includes $1,231 and $1,568 pledged to creditors)	36,484	25,729
Mortgage loans eligible for repurchase	889,335	1,208,195
Other	86,194	107,076
Total assets	6,992,530	7,368,093
LIABILITIES
Assets sold under agreements to repurchase	1,739,638	2,381,538
Mortgage loans participation purchase and sale agreements	524,667	527,395
Notes payable	1,291,847	891,505
Obligations under capital lease	9,630	20,971
Derivative liabilities	12,693	5,796
Accounts payable and accrued expenses	140,363	109,143
Mortgage servicing liabilities at fair value	9,769	14,120
Income taxes payable	74,158	52,160
Liability for mortgage loans eligible for repurchase	889,335	1,208,195
Liability for losses under representations and warranties	21,022	20,053
Total liabilities	5,075,820	5,648,419
Commitments and contingencies - Note 14
STOCKHOLDERS' EQUITY
Additional paid-in capital	236,457	204,103
Retained earnings	304,386	265,306
Total stockholders' equity attributable to PennyMac Financial Services, Inc. common stockholders	540,846	469,411
Noncontrolling interest in Private National Mortgage Acceptance Company, LLC	1,375,864	1,250,263
Total stockholders' equity	1,916,710	1,719,674
Total liabilities and stockholders' equity	6,992,530	7,368,093
Class A Common Stock
STOCKHOLDERS' EQUITY
Common stock	3	2
Total stockholders' equity	3
Class B Common Stock
STOCKHOLDERS' EQUITY
Common stock
PMT
ASSETS
Assets purchased from PennyMac Mortgage Investment Trust under agreements to resell pledged to creditors	133,128	144,128
Investment in PennyMac Mortgage Investment Trust at fair value	1,518	1,205
Receivable, from affiliates	27,467	27,119
LIABILITIES
Excess servicing spread financing payable to PennyMac Mortgage Investment Trust at fair value	223,275	236,534
Payable to affiliates	91,818	136,998
Private National Mortgage Acceptance Company, LLC
LIABILITIES
Payable to exchanged Private National Mortgage Acceptance Company, LLC unitholders under tax receivable agreement	$ 47,605	$ 44,011

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Cash pledged to creditors	$ 81,640	$ 20,765
Mortgage loans held for sale, pledged to creditors	2,389,066	3,081,987
Servicing advances, net, valuation allowance	65,393	59,958
Servicing advances pledged to creditors	102,222	114,643
Mortgage servicing rights, at fair value	2,785,964	638,010
Mortgage servicing rights pledged to creditors	2,539,575	2,098,067
Furniture, fixtures, equipment and building improvements pledged to creditors	19,022	23,915
Capitalized software pledged to creditors	$ 1,231	$ 1,568
Class A Common Stock
Common stock, shares authorized	200,000,000	200,000,000
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares issued	25,195,436	23,529,970
Common stock, shares outstanding	25,195,436	23,529,970
Class B Common Stock
Common stock, shares authorized	1,000	1,000
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares issued	45	46
Common stock, shares outstanding	45	46

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Mortgage loan servicing fees
From non-affiliates and affiliates	$ 147,182	$ 126,416	$ 421,536	$ 345,231
Ancillary and other fees	17,009	15,548	44,817	38,616
Net servicing fees	174,262	153,782	496,877	417,289
Amortization, impairment and change in fair value of mortgage servicing rights and mortgage servicing liabilities	(63,450)	(80,529)	(147,670)	(232,889)
Change in fair value of excess servicing spread payable to PennyMac Mortgage Investment Trust	(64,559)	(75,701)	(156,696)	(218,132)
Net mortgage loan servicing fees	109,703	78,081	340,181	199,157
Net gains on mortgage loans held for sale at fair value:
From non-affiliates	38,349	98,235	143,396	285,599
Net gains on mortgage loans held for sale at fair value	56,914	108,136	189,274	293,183
Mortgage loan origination fees from non-affiliates	24,366	31,060	70,607	83,558
Mortgage loan origination fees	26,485	33,168	75,476	88,935
Interest income:
From non-affiliates	59,152	42,326	152,997	97,328
Interest income	60,964	44,442	158,683	103,274
Interest expense:
To non-affiliates	35,035	38,494	96,552	95,832
Interest expense	38,775	42,492	108,136	108,843
Net interest income (expense):	22,189	1,950	50,547	(5,569)
Management fees, net:
Management fees	6,471	6,216	17,910	17,597
Result of real estate acquired in settlement of loans	194	281	179	137
Other	2,605	487	7,048	3,068
Total net revenue	250,929	250,635	733,428	656,829
Expenses
Compensation	103,364	93,417	303,917	261,624
Servicing	40,797	24,968	95,586	76,513
Technology	15,273	13,926	45,047	36,863
Occupancy and equipment	7,117	5,933	20,001	16,940
Professional services	7,117	4,636	18,442	12,977
Loan origination	7,203	5,581	14,462	14,830
Marketing	2,275	2,375	6,654	6,594
Other	6,086	5,655	19,928	16,352
Total expenses	189,232	156,491	524,037	442,693
Income before provision for income taxes	61,697	94,144	209,391	214,136
Provision for income taxes	5,545	11,652	17,908	26,512
Net income	56,152	82,492	191,483	187,624
Less: Net income attributable to noncontrolling interest	41,663	65,411	142,538	149,185
Net income attributable to PennyMac Financial Services, Inc. common stockholders	$ 14,489	$ 17,081	$ 48,945	$ 38,439
Earnings per share
Basic (in dollars per share)	$ 0.58	$ 0.73	$ 1.99	$ 1.66
Diluted (in dollars per share)	$ 0.57	$ 0.71	$ 1.94	$ 1.62
Weighted-average shares outstanding
Basic (in shares)	25,125	23,426	24,644	23,147
Diluted (in shares)	78,913	78,416	78,954	78,231
Dividend declared per share of Class A common stock	$ 0.40		$ 0.40
PMT
Mortgage loan servicing fees
From non-affiliates and affiliates	$ 10,071	$ 11,402	$ 30,521	$ 31,987
Changes in fair value included in income	(1,109)	4,828	(9,026)	14,757
Net gains on mortgage loans held for sale at fair value:
From PennyMac Mortgage Investment Trust	18,565	9,901	45,878	7,584
Mortgage loan origination fees from PennyMac Mortgage Investment Trust	2,119	2,108	4,869	5,377
Fulfillment fees from PennyMac Mortgage Investment Trust	26,256	23,507	52,759	61,184
Interest income:
From PennyMac Mortgage Investment Trust	1,812	2,116	5,686	5,946
Interest expense:
To PennyMac Mortgage Investment Trust	3,740	3,998	11,584	13,011
Management fees, net:
Management fees	6,482	6,038	17,906	16,684
Change in fair value of investment in and dividends received from affiliate	129	(33)	419	182
Investment Funds
Mortgage loan servicing fees
From non-affiliates and affiliates		416	3	1,455
Management fees, net:
Management fees	(11)	178	4	913
Carried Interest from Investment Funds	$ (17)	$ (1,158)	$ (365)	$ (1,045)

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands	Additional paid-in capitalAs previously reported	Additional paid-in capital	Retained earningsAs previously reported	Retained earnings	Noncontrolling interestAs previously reported	Noncontrolling interest	As previously reportedClass A Common Stock	As previously reported	Class A Common Stock	Total
Balance at Dec. 31, 2016		$ 182,772		$ 164,549		$ 1,052,033			$ 2	$ 1,399,356
Balance (in shares) at Dec. 31, 2016									22,427
Changes in stockholders' equity
Net income				38,439		149,185				187,624
Stock and unit-based compensation		4,861				10,200				15,061
Issuance of Class A common stock in settlement of director fees		133				120				253
Repurchase of Class A common stock		(8,599)							$ (8,599)	(8,599)
Shares of Class A common stock repurchased									(505)
Exchange of Class A units of Private National Mortgage Acceptance Company, LLC to Class A common stock of PennyMac Financial Services, Inc.		20,583				(20,583)				$ 20,583
Exchange of Class A units of Private National Mortgage Acceptance Company, LLC to Class A common stock of PennyMac Financial Services, Inc. (in shares)									1,297	1,297
Tax effect of exchange of Class A units of Private National Mortgage Acceptance Company, LLC to Class A common stock of PennyMac Financial Services, Inc.		(3,404)								$ (3,404)
Balance at Sep. 30, 2017		196,346		202,988		1,190,955			$ 2	1,590,291
Balance (in shares) at Sep. 30, 2017									23,219
Balance at Jun. 30, 2017		199,146		185,907		1,126,197			$ 2	1,511,252
Balance (in shares) at Jun. 30, 2017									23,473
Changes in stockholders' equity
Net income				17,081		65,411				82,492
Stock and unit-based compensation		1,411				2,944				4,355
Issuance of Class A common stock in settlement of director fees		25				59				84
Repurchase of Class A common stock		(8,599)							$ (8,599)	(8,599)
Shares of Class A common stock repurchased									(505)
Exchange of Class A units of Private National Mortgage Acceptance Company, LLC to Class A common stock of PennyMac Financial Services, Inc.		3,656				(3,656)				$ 3,656
Exchange of Class A units of Private National Mortgage Acceptance Company, LLC to Class A common stock of PennyMac Financial Services, Inc. (in shares)									251	251
Tax effect of exchange of Class A units of Private National Mortgage Acceptance Company, LLC to Class A common stock of PennyMac Financial Services, Inc.		707								$ 707
Balance at Sep. 30, 2017		196,346		202,988		1,190,955			$ 2	1,590,291
Balance (in shares) at Sep. 30, 2017									23,219
Changes in stockholders' equity
Cumulative effect of change in accounting principle for all existing classes of mortgage servicing rights at fair value | Accounting Standards Codification 250 Mortgage Servicing Rights Fair Value				189		587				776
Balance after adjustment		204,103		265,495		1,250,850			$ 2	1,720,450
Balance at Dec. 31, 2017	$ 204,103		$ 265,306		$ 1,250,263		$ 2	$ 1,719,674		1,719,674
Balance (in shares) at Dec. 31, 2017							23,530		23,530
Changes in stockholders' equity
Net income				48,945		142,538				191,483
Class A common stock dividends				(10,054)						(10,054)
Stock and unit-based compensation		7,400				18,084				25,484
Stock and unit-based compensation (in shares)									285
Issuance of Class A common stock in settlement of director fees		79				166				245
Repurchase of Class A common stock		(1,554)				(3,272)			$ (4,826)	(4,826)
Shares of Class A common stock repurchased									(236)
Exchange of Class A units of Private National Mortgage Acceptance Company, LLC to Class A common stock of PennyMac Financial Services, Inc.		32,501				(32,502)			$ 1	$ 32,501
Exchange of Class A units of Private National Mortgage Acceptance Company, LLC to Class A common stock of PennyMac Financial Services, Inc. (in shares)									1,616	1,616
Tax effect of exchange of Class A units of Private National Mortgage Acceptance Company, LLC to Class A common stock of PennyMac Financial Services, Inc.		(6,072)								$ (6,072)
Balance at Sep. 30, 2018		236,457		304,386		1,375,864			$ 3	1,916,710
Balance (in shares) at Sep. 30, 2018									25,195
Balance at Jun. 30, 2018		229,941		299,951		1,332,049			$ 3	1,861,944
Balance (in shares) at Jun. 30, 2018									25,009
Changes in stockholders' equity
Net income				14,489		41,663				56,152
Stock and unit-based compensation		2,944				6,472			$ 55	9,416
Class A common stock dividends				(10,054)						(10,054)
Issuance of Class A common stock in settlement of director fees		28				57				85
Exchange of Class A units of Private National Mortgage Acceptance Company, LLC to Class A common stock of PennyMac Financial Services, Inc.		4,377				(4,377)				$ 4,377
Exchange of Class A units of Private National Mortgage Acceptance Company, LLC to Class A common stock of PennyMac Financial Services, Inc. (in shares)									131	131
Tax effect of exchange of Class A units of Private National Mortgage Acceptance Company, LLC to Class A common stock of PennyMac Financial Services, Inc.		(833)								$ (833)
Balance at Sep. 30, 2018		$ 236,457		$ 304,386		$ 1,375,864			$ 3	$ 1,916,710
Balance (in shares) at Sep. 30, 2018									25,195

CONSOLIDATED STATEMENTS OF CH_2

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares	3 Months Ended	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2018
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
Cash dividends declared (in dollars per share)	$ 0.40	$ 0.40

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Cash flow from operating activities
Net income	$ 191,483	$ 187,624
Adjustments to reconcile net income to net cash used in operating activities:
Net gains on mortgage loans held for sale at fair value	(189,274)	(293,183)
Amortization, impairment and change in fair value of mortgage servicing rights, mortgage servicing liabilities and excess servicing spread	156,696	218,132
Capitalization of interest on mortgage loans held for sale at fair value	(67,025)	(32,883)
Accrual of interest on excess servicing spread financing	11,584	13,011
Amortization of premiums and debt issuance costs	(19,198)	11,472
Results of real estate acquired in settlement of loans	(179)	(137)
Stock based compensation expense	20,766	14,634
Provision for servicing advance losses	24,046	26,157
Loss from disposition of fixed assets and impairment of capitalized software		389
Depreciation and amortization	9,046	6,229
Originations of mortgage loans held for sale	(4,049,591)	(3,906,688)
Purchase of mortgage loans from Ginnie Mae securities and early buyout investors for modification and subsequent sale	(3,342,029)	(2,629,907)
Sale and principal payments of mortgage loans held for sale to non-affiliates	34,208,217	38,097,411
Repurchase of mortgage loans subject to representations and warranties	(24,891)	(16,867)
Collection of repurchase agreement derivative	19,460
Decrease in servicing advances	35,813	57,310
Sale of real estate acquired in settlement of loans	3,004	2,758
Decrease in other assets	8,874	25,853
Increase (decrease) in accounts payable and accrued expenses	16,448	(34,102)
Payments to exchanged Private National Mortgage Acceptance Company, LLC unitholders under tax receivable agreement		(6,221)
Net cash provided by (used in) operating activities	732,584	(646,266)
Cash flow from investing activities
Decrease (increase) in short-term investments	24,604	(50,253)
Net settlement of derivative financial instruments used for hedging	(182,402)	(19,487)
Purchase of mortgage servicing rights	(180,139)	(167,466)
Purchase of furniture, fixtures, equipment and leasehold improvements	(8,919)	(5,276)
Acquisition of capitalized software	(13,091)	(11,576)
Increase in margin deposits	(836)	(33,171)
Net cash used in investing activities	(349,783)	(285,301)
Cash flow from financing activities
Sale of assets under agreements to repurchase	31,318,277	24,376,644
Repurchase of assets sold under agreements to repurchase	(31,960,304)	(24,016,601)
Issuance of mortgage loan participation certificates	19,398,281	13,780,569
Repayment of mortgage loan participation certificates	(19,401,301)	(13,919,864)
Advances on notes payable	1,300,000	935,000
Repayments of notes payable	(900,000)	(186,935)
Advances of obligations under capital lease		10,298
Repayments of obligations under capital lease	(11,341)	(9,349)
Repayment of excess servicing spread financing	(35,852)	(42,320)
Payment of debt issuance costs	(15,320)	(19,187)
Issuance of common stock pursuant to exercise of stock options	4,718	427
Repurchase of common stock	(4,826)	(8,599)
Payment of dividend to Class A common stockholders	(10,054)
Net cash (used in) provided by financing activities	(317,722)	900,083
Net increase (decrease) in cash and restricted cash	65,079	(31,484)
Cash and restricted cash at beginning of period	38,173	99,642
Cash and restricted cash at end of period	103,252	68,158
Cash	102,627	67,708
Restricted cash included in Other assets	625	450
Investment Funds
Adjustments to reconcile net income to net cash used in operating activities:
Accrual of servicing rebate payable to Investment Funds		129
Carried Interest from Investment Funds	365	1,045
Collection of Carried Interest	8,187	61,314
(Increase) decrease in receivable from affiliates	417	436
Decrease in payable to affiliate	(2,427)	(18,203)
PMT
Adjustments to reconcile net income to net cash used in operating activities:
Change in fair value of investment in common shares of PennyMac Mortgage Investment Trust	(313)	(76)
Purchase of mortgage loans held for sale from PennyMac Mortgage Investment Trust	(28,584,762)	(32,724,487)
Sale of mortgage loans held for sale to Penny Mac Mortgage Investment Trust	2,336,162	373,108
(Increase) decrease in receivable from affiliates	(2,825)	332
Decrease in payable to affiliate	(46,731)	(46,013)
Increase in income taxes payable	19,448	26,471
Cash flow from investing activities
Net change in assets purchased from PMT under agreement to resell	$ 11,000	$ 1,928

Organization

Organization	9 Months Ended
	Sep. 30, 2018
Organization
Organization	PENNYMAC FINANCIAL SERVICES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) Note 1—Organization 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 consolidates the financial results of PennyMac and its 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 and mortgage loan servicing. PennyMac’s investment management activities and a portion of its mortgage 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 a management agreement with PennyMac Mortgage Investment Trust (“PMT”), a publicly held real estate investment trust (“REIT”). Previously, PCM had management agreements with PNMAC Mortgage Opportunity Fund, LLC (the “Registered Fund”) and PNMAC Mortgage Opportunity Fund, L.P. (the “Master Fund”), both formerly registered under the Investment Company Act of 1940, as amended, an affiliate of these registered funds, and PNMAC Mortgage Opportunity Fund Investors, LLC (the “Private Fund”) (collectively, the “Investment Funds”). Together, the Investment Funds and PMT are referred to as the “Advised Entities.” The Registered Fund and the Master Fund obtained orders of de-registration on July 25, 2018, and the management agreements with all of the Investment Funds expired or were otherwise terminated. All of the Investment Funds other than the affiliate of the registered funds were dissolved on August 22, 2018. · PennyMac Loan Services, LLC (“PLS”) — a Delaware limited liability company that services portfolios of residential mortgage loans on behalf of non-affiliates and PMT, purchases, originates and sells 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”) and U.S. Department of Agriculture (“USDA”) (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.

Basis of Presentation and Accou

Basis of Presentation and Accounting Developments	9 Months Ended
	Sep. 30, 2018
Basis of Presentation and Accounting Developments
Basis of Presentation and Accounting Developments	Note 2—Basis of Presentation and Accounting Developments Basis of Presentation The accompanying consolidated financial statements have been prepared in compliance with accounting principles generally accepted in the United States (“GAAP”) as codified in the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”) 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 GAAP for complete financial statements. This interim consolidated information should be read together with the Company’s Annual Report on Form 10-K for the year ended December 31, 2017. 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 income to be anticipated for the full year ending December 31, 2018. Intercompany accounts and transactions have been eliminated. Preparation of financial statements in compliance with GAAP requires management to make judgments and estimates that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements, and revenues and expenses during the reporting period. Actual results will likely differ from those estimates. Accounting Developments Accounting Changes During the nine months ended September 30, 2018, the Company adopted changes to the accounting principles used in the preparation of its financial statements summarized below. Mortgage Servicing Rights Effective January 1, 2018, the Company has elected to change the accounting for the classes of mortgage servicing rights (“MSRs”) it had accounted for using the amortization method through December 31, 2017, to the fair value method as allowed in the Transfers and Servicing topic of the FASB’s ASC. The Company determined that a single accounting treatment across all currently existing classes of MSRs is consistent with lender valuation under its financing arrangements and simplifies the Company’s hedging activities. As the result of this change, the Company recorded an adjustment to increase its investment in MSRs of $848,000, an increase in its liability for income taxes payable of $72,000 and an increase in stockholders’ equity of $776,000. Revenue Recognition In May 2014, the FASB issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (Subtopic 606) (“ASU 2014-09”), which supersedes the guidance in the Revenue Recognition topic of the ASC. Effective January 1, 2018, the Company adopted ASU 2014-09 as amended using the modified retrospective method. The adoption of ASU 2014-09 did not require the Company to record a cumulative effect adjustment to its beginning retained earnings. The Company’s revenues from contracts with customers that are subject to ASU 2014-09 include fulfillment fees, management fees and certain reimbursed overhead costs. Other revenue and income streams are not subject to ASU 2014-09 as they are financial instruments or other contractual rights and obligations accounted for under the Receivables , Investments and Debt and Equity Securities , Transfers and Servicing , Financial Instruments and Derivatives and Hedging topics of the ASC. Fulfillment fees Fulfillment fees represent fees the Company collects for services it performs on behalf of PMT in connection with the acquisition, packaging and sale of mortgage loans. Fulfillment fee amounts are based upon a negotiated fee schedule and the unpaid principal balance of the mortgage loans purchased by PMT. The Company’s obligation under the agreement is fulfilled when PMT completes the sale or securitization of a mortgage loan it purchases. Fulfillment fees are generally collected within 30 days of purchase by PMT, although a portion of the fulfillment fees may not be collected until 30 days following sale or securitization to the extent such sale or securitization does not occur in the month of purchase. Fulfillment fee revenue is recognized in the month the fee is earned. Fulfillment fees receivable contract assets are disclosed in Note 4 — Transactions with Affiliates . Management fees Management fees represent compensation to the Company for its management services provided to the Advised Entities. Management fees are earned based on PMT’s shareholders’ equity amounts and the Investment Funds’ net assets and profitability in excess of specified thresholds, and are recognized as services are provided and are paid to the Company on a quarterly basis within 30 days of the end of the quarter. Management fees receivable contract assets are disclosed in Note 4 — Transactions with Affiliates . Carried Interest The Company’s Carried Interest arrangements with the Investment Funds represented capital allocations to the Company. As a result, the Company has concluded as part of its assessment of the effect of the adoption of Investments – Equity Method and Joint Ventures topic of the ASC. Therefore, effective January 1, 2018, the Company recharacterized its Carried Interest as financial instruments under the equity method of accounting. Carried Interest balances are included in Other assets and are disclosed in Note 9 — Carried Interest Due from Investment Funds . Expense reimbursements Under the Company’s management agreement with PMT, PMT is required to pay its pro rata portion of rent, telephone, utilities, office furniture, equipment, machinery and other office, internal and overhead expenses of the Company and its affiliates required for PMT’s and its subsidiaries’ operations. These expenses are allocated based on the ratio of PMT’s proportion of gross assets compared to all remaining gross assets managed by the Company as calculated at each fiscal quarter end. Before the adoption of ASU 2014-09, the Company accounted for such reimbursements as reductions to expenses. With the adoption of ASU 2014-09, the Company is required to include such expense reimbursements in its net revenues. As a result of the adoption of ASU 2014-09, beginning in 2018 certain overhead reimbursement amounts were reclassified from the following expense line items to Other revenue as summarized below: Quarter ended Nine months ended Income statement line September 30, 2018 September 30, 2018 (in thousands) Occupancy and equipment $ 718 $ 1,954 Technology 315 837 Compensation 120 360 Other 177 596 Total expense reimbursements included in Other revenue $ 1,330 $ 3,747 Cash Flows During the nine months ended September 30, 2018, the Company adopted ASU 2016-18, Statement of Cash Flows (Topic 230) – Restricted Cash (“ASU 2016-18”). ASU 2016-18 requires that a statement of cash flows explain the change during the reporting period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the consolidated statement of cash flows. Accordingly, the Company retrospectively changed the presentation of its consolidated statements of cash flows to conform to the requirements of ASU 2016-18. For the purpose of reporting the statement of cash flows, the Company has identified tenant security deposits relating to rental properties owned by PMT and managed by the Company as restricted cash. The tenant security deposits are included in Other assets on the Company’s consolidated balance sheets. As the result of adoption of ASU 2016-18, the Company’s consolidated statements of cash flows for the nine months ended September 30, 2017 changed as follows: As previously Effect of adoption reported of ASU 2016-18 As reported (in thousands) Cash flow from operating activities $ (646,441) $ $ (646,266) Cash and restricted cash at end of period $ 67,708 $ $ 68,158 Recently Issued Accounting Pronouncement In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (“ASU 2016-02”). ASU 2016-02 changes the standards for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e., lessees and lessors). ASU 2016-02 requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether the lease is effectively a financed purchase of the leased asset by the lessee. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term of greater than 12 months regardless of their classification. ASU 2016-02 is effective for the Company for reporting periods beginning after December 15, 2018. The Company is currently assessing the potential effect that the adoption of ASU 2016-02 will have on its consolidated financial statements. As shown in Note 14 – Commitments and Contingencies , the Company had approximately $89.2 million in future minimum lease payment commitments as of September 30, 2018. Were the Company to adopt ASU 2016-02 as of September 30, 2018, it would be required to recognize a right-of-use asset and a corresponding liability based on the present value of such obligation as of September 30, 2018. The Company does not expect to recognize a significant cumulative effect adjustment to its stockholders’ equity as a result of adopting

Concentration of Risk

Concentration of Risk	9 Months Ended
	Sep. 30, 2018
Concentration of Risk
Concentration of Risk	Note 3—Concentration of Risk A substantial portion of the Company’s activities relate to the Advised Entities. Revenues generated from these entities (generally comprised of mortgage loan servicing fees, gains on mortgage loans held for sale, mortgage loan origination fees, fulfillment fees, change in fair value of excess servicing spread financing (“ESS”), net interest charged to these entities, management fees, Carried Interest, and change in fair value of investment and dividend received from PMT) totaled 25% and 22% of total net revenue for the quarters ended September 30, 2018 and 2017, respectively, and 19% and 20% for the nine months ended September 30, 2018 and 2017, respectively.

Transactions with Affiliates

Transactions with Affiliates	9 Months Ended
	Sep. 30, 2018
Transactions with Affiliates
Transactions with Affiliates	Note 4—Transactions with Affiliates Transactions with PMT Operating Activities Mortgage Loan Production Activities and MSR Recapture The Company sells newly originated loans to PMT under a mortgage loan purchase agreement. Historically, the Company has used the mortgage loan purchase agreement for the purpose of selling to PMT prime jumbo residential mortgage loans. Beginning in the quarter ended September 30, 2017, the Company also sells non-government insured or guaranteed mortgage loans to PMT under the mortgage loan purchase agreement. Pursuant to the terms of an amended and restated MSR recapture agreement, effective September 12, 2016, if the Company refinances mortgage loans for which PMT previously held the MSRs, the Company is generally required to transfer and convey cash in an amount equal to 30% of the fair market value of the MSRs related to all the mortgage loans so originated. The MSR recapture agreement expires, unless terminated earlier in accordance with the agreement, on September 12, 2020, subject to automatic renewal for additional 18-month periods, unless terminated earlier in accordance with the terms of the agreement. The Company provides fulfillment and other services to PMT under an amended and restated mortgage banking services agreement for which it receives a fulfillment fee. Pursuant to the terms of the mortgage banking services agreement, the monthly fulfillment fee is an amount that shall equal (a) no greater than the product of (i) 0.35% and (ii) the aggregate initial unpaid principal balance (the “Initial UPB”) of all mortgage loans purchased in such month, plus (b) in the case of all mortgage loans other than mortgage loans sold to or securitized through Fannie Mae or Freddie Mac, no greater than the product of (i) 0.50% and (ii) the aggregate Initial UPB of all such mortgage loans sold and securitized in such month; provided, however, that no fulfillment fee shall be due or payable to the Company with respect to any mortgage loans underwritten to the Ginnie Mae Mortgage‑Backed Securities (“MBS”) Guide. PMT does not hold the Ginnie Mae approval required to issue Ginnie Mae MBS and act as a servicer. Accordingly, under the agreement, the Company currently purchases mortgage loans underwritten in accordance with the Ginnie Mae MBS Guide “as is” and without recourse of any kind from PMT at PMT’s cost less an administrative fee plus accrued interest and a sourcing fee ranging from two to three and one-half basis points, generally based on the average number of calendar days mortgage loans are held by PMT before being purchased by the Company. In consideration for the mortgage banking services provided by the Company with respect to PMT’s acquisition of mortgage loans under the Company’s early purchase program, the Company is entitled to fees accruing (i) at a rate equal to $1,500 per year per early purchase facility administered by the Company, and (ii) in the amount of $35 for each mortgage loan that PMT acquires thereunder. The mortgage banking services agreement expires, unless terminated earlier in accordance with the agreement, on September 12, 2020, subject to automatic renewal for additional 18-month periods. Following is a summary of mortgage loan production activities and MSR recapture between the Company and PMT: Quarter ended September 30, Nine months ended September 30, 2018 2017 2018 2017 (in thousands) Net gains on mortgage loans held for sale at fair value: Net gains on mortgage loans held for sale to PMT $ 19,722 $ 11,396 $ 49,396 $ 12,280 Mortgage servicing rights and excess servicing spread recapture incurred (1,157) (1,495) (3,518) (4,696) $ 18,565 $ 9,901 $ 45,878 $ 7,584 Sale of mortgage loans held for sale to PMT $ 908,525 $ 332,886 $ 2,336,162 $ 373,108 Fulfillment fee revenue $ 26,256 $ 23,507 $ 52,759 $ 61,184 Unpaid principal balance of mortgage loans fulfilled for PMT subject to fulfillment fees $ 7,517,883 $ 6,530,036 $ 17,139,884 $ 17,079,969 Sourcing fees paid to PMT $ 2,689 $ 3,275 $ 8,221 $ 9,340 Unpaid principal balance of mortgage loans purchased from PMT $ 8,916,654 $ 10,915,194 $ 27,404,022 $ 31,131,154 Tax service fees received from PMT included in Mortgage loan origination fees $ 2,119 $ 2,108 $ 4,869 $ 5,377 Early purchase program fees earned from PMT included in Mortgage loan servicing fees $ — $ 1 $ — $ 7 Mortgage Loan Servicing The Company has a mortgage loan servicing agreement with PMT (“Servicing Agreement”). The Servicing Agreement provides for servicing fees of per‑loan monthly amounts based on the delinquency, bankruptcy and/or foreclosure status of the serviced mortgage loan or the real estate acquired in settlement of loans (“REO”). The Company also remains entitled to customary ancillary income and market-based fees and charges relating to mortgage loans it services for PMT. These include boarding and deboarding fees, liquidation and disposition fees, assumption, modification and origination fees and a percentage of late charges. · The base servicing fee rates for distressed whole mortgage loans range from $30 per month for current loans up to $85 per month for loans where the borrower has declared bankruptcy. The base servicing fee rate for REO is $75 per month. · To the extent the Company facilitates rentals of PMT's REO under its REO rental program, the Company collects an REO rental fee of $30 per month per REO, an REO property lease renewal fee of $100 per lease renewal, and a property management fee in an amount equal to the Company’s cost if property management services and/or any related software costs are outsourced to a third-party property management firm or 9% of gross rental income if the Company provides property management services directly. The Company is also entitled to retain any tenant paid application fees and late rent fees and seek reimbursement for certain third-party vendor fees. · Except as otherwise provided in the MSR recapture agreement, when the Company effects a refinancing of a mortgage loan on behalf of PMT and not through a third-party lender and the resulting mortgage loan is readily saleable, or the Company originates a loan to facilitate the disposition of a REO, the Company is entitled to receive from PMT market-based fees and compensation consistent with pricing and terms the Company offers unaffiliated parties on a retail basis. · Because PMT has a small number of employees and limited infrastructure, the Company is required to provide a range of services and activities significantly greater in scope than the services provided in connection with a customary servicing arrangement. For these services, the Company receives a supplemental servicing fee of $25 per month for each distressed mortgage loan. The Company is entitled to reimbursement for all customary, good faith reasonable and necessary out-of-pocket expenses incurred by the Company in performance of its servicing obligations. · The Company is entitled to retain any incentive payments made to it and to which it is entitled under the U.S. Department of Treasury’s Home Affordable Modification Plan; provided, however, that with respect to any such incentive payments paid to the Company in connection with a mortgage loan modification for which PMT previously paid the Company a modification fee, the Company is required to reimburse PMT an amount equal to the incentive payments. · The Company is also entitled to certain activity-based fees for distressed whole mortgage loans that are charged based on the achievement of certain events. These fees range from $750 for a streamline modification to $1,750 for a liquidation and $500 for a deed-in-lieu of foreclosure. The Company is not entitled to earn more than one liquidation fee, reperformance fee or modification fee per mortgage loan in any 18-month period. · The base servicing fees for non-distressed mortgage loans are calculated through a monthly per-loan dollar amount, with the actual dollar amount for each loan based on whether the mortgage loan is a fixed-rate or adjustable-rate loan. The base servicing fee rates are $7.50 per month and $8.50 per month for fixed-rate loans and adjustable-rate loans, respectively. The Servicing Agreement expires on September 12, 2020, subject to automatic renewal for additional 18-month periods, unless terminated earlier in accordance with the terms of the agreement. Following is a summary of mortgage loan servicing and property management fees earned from PMT: Quarter ended September 30, Nine months ended September 30, 2018 2017 2018 2017 (in thousands) Mortgage loans acquired for sale at fair value: Base and supplemental $ 98 $ 88 $ 250 $ 235 Activity-based 218 188 489 507 316 276 739 742 Mortgage loans at fair value: Base and supplemental 614 1,571 2,328 5,284 Activity-based 657 2,702 3,200 6,859 1,271 4,273 5,528 12,143 Mortgage servicing rights: Base and supplemental 8,326 6,702 23,875 18,727 Activity-based 158 151 379 375 8,484 6,853 24,254 19,102 $ 10,071 $ 11,402 $ 30,521 $ 31,987 Property management fees received from PMT included in Other income $ 122 $ 95 $ 333 $ 261 Investment Management Activities The Company has a management agreement with PMT (“Management Agreement”). The Management Agreement provides that: · The base management fee is calculated quarterly and is equal to the sum of (i) 1.5% per year of PMT’s average shareholders’ equity up to $2 billion, (ii) 1.375% per year of PMT’s average shareholders’ equity in excess of $2 billion and up to $5 billion, and (iii) 1.25% per year of PMT’s average shareholders’ equity in excess of $5 billion. · The performance incentive fee is calculated quarterly at a defined annualized percentage of the amount by which PMT’s “net income,” on a rolling four‑quarter basis and before deducting the incentive fee, exceeds certain levels of return on “equity.” The performance incentive fee is equal to the sum of: (a) 10% of the amount by which PMT’s “net income” for the quarter exceeds (i) an 8% return on equity plus the “high watermark,” up to (ii) a 12% return on PMT’s equity; plus (b) 15% of the amount by which PMT’s “net income” for the quarter exceeds (i) a 12% return on PMT’s equity plus the “high watermark,” up to (ii) a 16% return on PMT’s equity; plus (c) 20% of the amount by which PMT’s “net income” for the quarter exceeds a 16% return on equity plus the “high watermark.” For the purpose of determining the amount of the performance incentive fee: “Net income” is defined as net income or loss attributable to PMT’s common shares of beneficial interest computed in accordance with GAAP adjusted for certain other non‑cash charges determined after discussions between the Company and PMT’s independent trustees and approval by a majority of PMT’s independent trustees. “Equity” is the weighted average of the issue price per common share of all of PMT’s public offerings, multiplied by the weighted average number of common shares outstanding (including restricted share units) in the rolling four‑quarter period. The “high watermark” is the quarterly adjustment that reflects the amount by which the “net income” (stated as a percentage of return on equity) in that quarter exceeds or falls short of the lesser of 8% and the average Fannie Mae 30‑year MBS yield (the “Target Yield”) for the four quarters then ended. If the “net income” is lower than the Target Yield, the high watermark is increased by the difference. If the “net income” is higher than the Target Yield, the high watermark is reduced by the difference. Each time a performance incentive fee is earned, the high watermark returns to zero. As a result, the threshold amounts required for the Company to earn a performance incentive fee are adjusted cumulatively based on the performance of PMT’s “net income” over (or under) the Target Yield, until the “net income” in excess of the Target Yield exceeds the then‑current cumulative high watermark amount, and a performance incentive fee is earned. The base management fee and the performance incentive fee are both receivable quarterly in arrears. The performance incentive fee may be paid in cash or a combination of cash and PMT’s common shares (subject to a limit of no more than 50% paid in common shares), at PMT’s option. The Management Agreement expires on September 12, 2020, subject to automatic renewal for additional Following is a summary of the base management and performance incentive fees earned from PMT: Quarter ended September 30, Nine months ended September 30, 2018 2017 2018 2017 (in thousands) Base management $ 5,799 $ 6,038 $ 17,223 $ 16,380 Performance incentive 683 — 683 304 $ 6,482 $ 6,038 $ 17,906 $ 16,684 Expense Reimbursement Under the Management Agreement, PMT reimburses the Company for its organizational and operating expenses, including third-party expenses, incurred on PMT’s behalf, it being understood that the Company and its affiliates shall allocate a portion of their personnel’s time to provide certain legal, tax and investor relations services for the direct benefit of PMT. With respect to the allocation of the Company’s and its affiliates’ personnel compensation, from and after September 12, 2016, the Company shall be reimbursed $120,000 per fiscal quarter, such amount to be reviewed annually and not preclude reimbursement for any other services performed by the Company or its affiliates. PMT is also required to pay its pro rata portion of rent, telephone, utilities, office furniture, equipment, machinery and other office, internal and overhead expenses of the Company and its affiliates required for PMT’s and its subsidiaries’ operations. These expenses will be allocated based on the ratio of PMT’s proportion of gross assets compared to all remaining gross assets managed by the Company as calculated at each fiscal quarter end. The Company received reimbursements from PMT for expenses as follows: Quarter ended September 30, Nine months ended September 30, 2018 2017 2018 2017 (in thousands) Reimbursement of: Common overhead incurred by the Company (1) $ 1,210 $ 1,193 $ 3,387 $ 4,220 Compensation (1) 120 — 360 — Expenses incurred on (the Company's) PMT's behalf, net 527 196 586 849 $ 1,857 $ 1,389 $ 4,333 $ 5,069 Payments and settlements during the quarter (2) $ 21,650 $ 22,786 $ 45,265 $ 63,249 (1) The Company adopted ASU 2014-09 using the modified retrospective method effective January 1, 2018. Adoption of ASU 2014-09 using the modified retrospective method required the Company to include those reimbursements from PMT in Other revenue starting January 1, 2018. (2) 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. Conditional Reimbursement of Underwriting Fees In connection with its initial public offering of common shares of beneficial interest on August 4, 2009 (“IPO”), PMT conditionally agreed to reimburse the Company up to $2.9 million for underwriting fees paid to the IPO underwriters by the Company on PMT’s behalf. In the event a 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. The Company received no reimbursement of underwriting fees from PMT during the nine months ended September 30, 2018 and received $30,000 during the nine months ended September 30, 2017. Investing Activities Master Repurchase Agreement On December 19, 2016, the Company, through PLS, entered into a master repurchase agreement with one of PMT’s wholly-owned subsidiaries, PennyMac Holdings, LLC (“PMH”) (the “PMH Repurchase Agreement”), pursuant to which PMH may borrow from the Company for the purpose of financing PMH’s participation certificates representing beneficial ownership in ESS. PLS then re-pledges such participation certificates to PNMAC GMSR ISSUER TRUST (the “Issuer Trust”) under a master repurchase agreement by and among PLS, the Issuer Trust and PennyMac, as guarantor (the “PC Repurchase Agreement”). The Issuer Trust was formed for the purpose of allowing PLS to finance MSRs and ESS relating to such MSRs (the “GNMA MSR Facility”). In connection with the GNMA MSR Facility, PLS pledges and/or sells to the Issuer Trust participation certificates representing beneficial interests in MSRs and ESS pursuant to the terms of the PC Repurchase Agreement. In return, the Issuer Trust (a) has issued to PLS, pursuant to the terms of an indenture, the Series 2016-MSRVF1 Variable Funding Note, dated December 19, 2016, known as the “PNMAC GMSR ISSUER TRUST MSR Collateralized Notes, Series 2016-MSRVF1” (the “VFN”), and (b) has issued and may, from time to time pursuant to the terms of any supplemental indenture, issue to institutional investors additional term notes (“Term Notes”), in each case secured on a pari passu basis by the participation certificates relating to the MSRs and ESS. The maximum principal balance of the VFN is $1,000,000,000. The principal amount paid by PLS for the participation certificates under the PMH Repurchase Agreement is based upon a percentage of the market value of the underlying ESS. Upon PMH’s repurchase of the participation certificates, PMH is required to repay PLS the principal amount relating thereto plus accrued interest (at a rate reflective of the current market and consistent with the weighted average note rate of the VFN and any outstanding Term Notes) to the date of such repurchase. PLS is then required to repay the Issuer Trust the corresponding amount under the PC Repurchase Agreement. The Company holds an investment in PMT in the form of 75,000 common shares of beneficial interest. Following is a summary of investing activities between the Company and PMT: Quarter ended September 30, Nine months ended September 30, 2018 2017 2018 2017 (in thousands) Interest income relating to Assets purchased from PennyMac Mortgage Investment Trust under agreements to resell $ 1,812 $ 2,116 $ 5,686 $ 5,946 Common shares of beneficial interest of PennyMac Mortgage Investment Trust: Dividends received $ 35 $ 35 $ 106 $ 106 Change in fair value of investment 94 (68) 313 76 $ 129 $ (33) $ 419 $ 182 September 30, December 31, 2018 2017 (in thousands) Assets purchased from PennyMac Mortgage Investment Trust under agreements to resell $ 133,128 $ 144,128 Common shares of beneficial interest of PennyMac Mortgage Investment Trust: Fair value $ 1,518 $ 1,205 Number of shares 75 75 Financing Activities Spread Acquisition and MSR Servicing Agreements On December 19, 2016, the Company amended and restated a master spread acquisition and MSR servicing agreement with PMT (the “Spread Acquisition Agreement”), pursuant to which the Company may sell to PMT, from time to time, the right to receive participation certificates representing beneficial ownership in ESS arising from Ginnie Mae MSRs acquired by the Company, in which case the Company generally would be required to service or subservice the related mortgage loans for Ginnie Mae. The primary purpose of the amendment and restatement was to facilitate the continued financing of the ESS owned by PMT in connection with the parties’ participation in the GNMA MSR Facility. To the extent the Company refinances any of the mortgage loans relating to the ESS it has acquired, the Spread Acquisition Agreement also contains recapture provisions requiring that the Company transfer to PMT, at no cost, the ESS relating to a certain percentage of the unpaid principal balance of the newly originated mortgage loans. However, under the Spread Acquisition Agreement, in any month where the transferred ESS relating to newly originated Ginnie Mae mortgage loans is not equivalent to at least 90% of the product of the excess servicing fee rate and the unpaid principal balance of the refinanced mortgage loans, the Company is also required to transfer additional ESS or cash in the amount of such shortfall. Similarly, in any month where the transferred ESS relating to modified Ginnie Mae mortgage loans is not equivalent to at least 90% of the product of the excess servicing fee rate and the unpaid principal balance of the modified mortgage loans, the Spread Acquisition Agreement contains provisions that require the Company to transfer additional ESS or cash in the amount of such shortfall. To the extent the fair market value of the aggregate ESS to be transferred for the applicable month is less than $200,000, the Company may, at its option, wire cash to PMT in an amount equal to such fair market value in lieu of transferring such ESS. Following is a summary of financing activities between the Company and PMT: Quarter ended September 30, Nine months ended September 30, 2018 2017 2018 2017 (in thousands) Excess servicing spread financing: Issuance pursuant to recapture agreement $ 499 $ 1,207 $ 1,983 $ 4,160 Repayment $ 11,543 $ 13,410 $ 35,852 $ 42,320 Change in fair value $ 1,109 $ (4,828) $ 9,026 $ (14,757) Interest expense $ 3,740 $ 3,998 $ 11,584 $ 13,011 Recapture incurred pursuant to refinancings by the Company of mortgage loans subject to excess servicing spread financing included in Net gains on mortgage loans held for sale at fair value $ 597 $ 1,163 $ 1,951 $ 3,837 September 30, December 31, 2018 2017 (in thousands) Excess servicing spread financing at fair value $ 223,275 $ 236,534 Receivable from and Payable to PMT Amounts receivable from and payable to PMT are summarized below: September 30, December 31, 2018 2017 (in thousands) Receivable from PMT: Fulfillment fees $ 12,078 $ 346 Management fees 6,482 5,901 Servicing fees 3,765 6,583 Allocated expenses and expenses incurred on PMT's behalf 2,295 11,542 Correspondent production fees 1,864 1,735 Conditional Reimbursement 870 870 Interest on assets purchased under agreements to resell 113 142 $ 27,467 $ 27,119 Payable to PMT: Deposits made by PMT to fund servicing advances $ 89,467 $ 132,844 Mortgage servicing rights recapture payable 250 282 Other 2,101 3,872 $ 91,818 $ 136,998 Investment Funds Management Agreements The Company had investment management agreements with the Investment Funds pursuant to which it received management fees consisting of base management fees and Carried Interest. The management fees were based on the lesser of the funds’ net asset values or aggregate capital contributions. The base management fees accrued at annual rates ranging from 1.5% to 2.0% of the applicable amounts on which they were based. The Carried Interest that the Company recognized from the Investment Funds was determined by the Investment Funds’ performance and its contractual rights to share in the Investments Funds’ returns in excess of the preferred returns, if any, accruing to the funds’ investors. The Company recognized Carried Interest as a participation in the profits in the Investment Funds after the investors in the Investment Funds had achieved a preferred return as defined in the fund agreements. After the investors achieved the preferred returns specified in the respective fund agreements, a “catch up” return accrued to the Company until it received a specified percentage of the preferred return. Thereafter, the Company participated in returns in excess of the preferred return at the rates specified in the fund agreements. The Company received $8.2 million and $61.3 million in cash in settlement of its Carried Interest during the nine months ended September 30, 2018 and 2017, respectively. The Registered Fund and the Master Fund obtained orders of de-registration on July 25, 2018, and the management agreements with all of the Investment Funds expired or were otherwise terminated. The Registered Fund, the Master Fund and the Private Fund were dissolved on August 22, 2018. Mortgage Loan Servicing Agreements The Company had mortgage loan servicing agreements with the Investment Funds. The loan servicing provided by the Company under the loan servicing agreements with the Investment Funds included collecting principal, interest and escrow account payments, if any, with respect to mortgage loans, as well as managing loss mitigation, which included, among other things, collection activities, loan workouts, modifications, foreclosures and short sales. The Company also engaged in certain loan origination activities that included refinancing mortgage loans and arranging financings that facilitate sales of the Investment Funds’ REOs. The loan servicing agreements with the Investment Funds generally provided for fee revenue, which varied depending on the type and quality of the loans being serviced. The Company was also entitled to certain customary market-based fees and charges. All of the servicing agreements with the Investment Funds expired or were otherwise terminated before or during the quarter ended September 30, 2018. Amounts due from and payable to the Investment Funds included in Other assets and Accounts payable and accrued expenses , respectively, as of December 31, 2017 are summarized below: December 31, 2017 (in thousands) Carried Interest due from Investment Funds: PNMAC Mortgage Opportunity Fund, LLC $ 6,389 PNMAC Mortgage Opportunity Fund Investors, LLC 2,163 $ 8,552 Receivable from Investment Funds: Mortgage loan servicing fee rebate deposit $ 300 Management fees 88 Expense reimbursements 27 Mortgage loan servicing fees 2 $ 417 Payable to Investment Funds: Deposits received to fund servicing advances $ 2,329 Other 98 $ 2,427 Exchanged Private National Mortgage Acceptance Company, LLC Unitholders The Company entered into a tax receivable agreement with owners of PennyMac other than the Company on the date of the IPO that provides for the payment from time to time by the Company to PennyMac’s exchanged unitholders an amount equal to 85% of the amount of the net tax benefits, if any, that the Company is deemed to realize as a result of (i) increases in tax basis of PennyMac’s assets 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 $47.6 million and $44.0 million Payable to exchanged Private National Mortgage Acceptance Company, LLC unitholders under tax receivable agreement as of September 30, 2018 and December 31, 2017, respectively. The Company did not make any payments under the tax receivable agreement during the nine months ended September 30, 2018. The Company made payments of $6.2 million during the nine months ended September 30, 2017. After the Reorganization (as defined in Note 24‒Subsequent Events ) there will be no future exchanges, although the Company will still need to make payments for exchanges that occurred before the Reorganization.

Loan Sales and Servicing Activi

Loan Sales and Servicing Activities	9 Months Ended
	Sep. 30, 2018
Loan Sales and Servicing Activities
Loan Sales and Servicing Activities	Note 5—Loan Sales and Servicing Activities The Company originates or purchases and sells mortgage loans in the secondary mortgage market without recourse for credit losses. However, the Company maintains continuing involvement with the mortgage loans in the form of servicing arrangements and the liability under representations and warranties it makes to purchasers and insurers of the mortgage 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 as servicer of the mortgage loans: Quarter ended September 30, Nine months ended September 30, 2018 2017 2018 2017 (in thousands) Cash flows: Sales proceeds $ 11,375,408 $ 13,600,232 $ 34,208,217 $ 38,097,411 Servicing fees received (1) $ 123,626 $ 97,312 $ 354,535 $ 272,303 Net servicing advances (recoveries) $ 4,147 $ (15,061) $ (20,572) $ (1,271) (1) Net of guarantee fees paid to the Agencies. The following table summarizes unpaid principal balance (the “UPB”) of the mortgage loans sold by the Company in which it maintains continuing involvement: September 30, December 31, 2018 2017 (in thousands) Unpaid principal balance of mortgage loans outstanding $ 139,305,079 $ 120,853,138 Delinquencies: 30-89 days $ 5,967,607 $ 5,097,688 90 days or more: Not in foreclosure $ 1,904,299 $ 2,303,114 In foreclosure $ 640,555 $ 606,744 Foreclosed $ 24,216 $ 30,310 Bankruptcy $ 889,814 $ 657,368 The following tables summarize the UPB of the Company’s mortgage loan servicing portfolio: September 30, 2018 Contract Total Servicing servicing and mortgage rights owned subservicing loans serviced (in thousands) Investor: Non-affiliated entities: Originated $ 139,305,079 $ — $ 139,305,079 Purchased 55,619,760 — 55,619,760 194,924,839 — 194,924,839 Advised Entities — 87,226,461 87,226,461 Mortgage loans held for sale 2,352,771 — 2,352,771 $ 197,277,610 $ 87,226,461 $ 284,504,071 Subserviced for the Company (1) $ 6,459,716 $ — $ 6,459,716 Delinquent mortgage loans: 30 days $ 6,457,528 $ 596,202 $ 7,053,730 60 days 1,810,285 119,314 1,929,599 90 days or more: Not in foreclosure 2,805,375 255,766 3,061,141 In foreclosure 928,268 149,313 1,077,581 Foreclosed 35,604 193,401 229,005 $ 12,037,060 $ 1,313,996 $ 13,351,056 Bankruptcy $ 1,277,484 $ 116,207 $ 1,393,691 Custodial funds managed by the Company (2) $ 3,764,023 $ 1,203,229 $ 4,967,252 (1) Certain of the mortgage loans serviced by the Company are subserviced on the Company’s behalf by other mortgage loan servicers on a transitional basis when the Company has purchased the rights to service the loans but servicing of the loans has not yet been transferred to the Company’s servicing system. (2) Custodial funds include borrower and investor custodial cash accounts relating to mortgage loans serviced under servicing agreements and are not recorded on the Company’s consolidated balance sheets. The Company earns placement fees on certain of the custodial funds it manages on behalf of the mortgage loans’ investors, which are included in Interest income in the Company’s consolidated statements of income. December 31, 2017 Contract Total Servicing servicing and mortgage rights owned subservicing loans serviced (in thousands) Investor: Non-affiliated entities: Originated $ 120,853,138 $ — $ 120,853,138 Purchased 47,016,708 — 47,016,708 167,869,846 — 167,869,846 Advised Entities — 74,980,268 74,980,268 Mortgage loans held for sale 2,998,377 — 2,998,377 $ 170,868,223 $ 74,980,268 $ 245,848,491 Delinquent mortgage loans: 30 days $ 5,326,710 $ 515,922 $ 5,842,632 60 days 1,935,216 215,957 2,151,173 90 days or more: Not in foreclosure 3,690,159 541,945 4,232,104 In foreclosure 916,614 293,835 1,210,449 Foreclosed 41,244 278,890 320,134 $ 11,909,943 $ 1,846,549 $ 13,756,492 Bankruptcy $ 1,046,969 $ 176,324 $ 1,223,293 Custodial funds managed by the Company (1) $ 3,267,279 $ 901,041 $ 4,168,320 (1) Custodial funds include borrower and investor custodial cash accounts relating to mortgage loans serviced under servicing agreements and are not recorded on the Company’s consolidated balance sheets. The Company earns placement fees on certain of the custodial funds it manages on behalf of the mortgage loans’ investors, which are included in Interest income in the Company’s consolidated statements of income. Following is a summary of the geographical distribution of mortgage loans included in the Company’s mortgage loan servicing portfolio for the top five and all other states as measured by UPB: September 30, December 31, State 2018 2017 (in thousands) California $ 50,009,289 $ 45,621,369 Texas 23,023,181 19,741,970 Florida 21,006,280 17,490,194 Virginia 18,308,994 16,210,673 Maryland 13,176,658 11,350,939 All other states 158,979,669 135,433,346 $ 284,504,071 $ 245,848,491

Fair Value

Fair Value	9 Months Ended
	Sep. 30, 2018
Fair Value
Fair Value	Note 6—Fair Value Most of the Company’s assets and certain of its liabilities 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. The Company groups its assets and liabilities at fair value in three levels, based on the markets in which the assets and liabilities are traded and the observability of the inputs used to determine fair value. These levels are: · Level 1—Quoted prices in active markets for identical assets or liabilities. · Level 2—Prices determined or determinable using other significant observable inputs. Observable inputs are inputs that other market participants would use in pricing an asset or liability and are developed based on market data obtained from sources independent of the Company. These may include quoted prices for similar assets and liabilities, interest rates, prepayment speeds, credit risk and other inputs. · Level 3—Prices determined using significant unobservable inputs. In situations where observable inputs are unavailable, unobservable inputs may be used. Unobservable inputs reflect the Company’s own judgments about the factors that market participants use in pricing an asset or liability, and are based on the best information available in the circumstances. As a result of the difficulty in observing certain significant valuation inputs affecting “Level 3” fair value assets and liabilities, the Company is required to make judgments regarding these items’ fair values. Different persons in possession of the same facts may reasonably arrive at different conclusions as to the inputs to be applied in valuing these assets and liabilities and their fair values. Such differences may result in significantly different fair value measurements. Likewise, due to the general illiquidity of some of these assets and liabilities, subsequent transactions may be at values significantly different from those reported. Fair Value Accounting Elections The Company identified all of its non-cash financial assets, other than Assets purchased from PennyMac Mortgage Investment Trust under agreements to resell and Mortgage servicing liabilities (“MSLs”) 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. Beginning January 1, 2018, the Company accounts for all MSRs at fair value. Before January 1, 2018, originated MSRs backed by mortgage loans with initial interest rates of less than or equal to 4.5% were accounted for using the amortization method. The Company elected to account for all MSRs at fair value because management determined that this change makes the accounting treatment for MSRs consistent with lender valuation under financing arrangements and simplifies hedging activities. The Company has also identified its ESS to be accounted for at fair value as a means of hedging the related MSRs’ fair value risk. Assets and Liabilities Measured at Fair Value on a Recurring Basis Following is a summary of assets and liabilities that are measured at fair value on a recurring basis: September 30, 2018 Level 1 Level 2 Level 3 Total (in thousands) Assets: Short-term investments $ 145,476 $ — $ — $ 145,476 Mortgage loans held for sale at fair value — 2,051,652 365,303 2,416,955 Derivative assets: Interest rate lock commitments — — 41,075 41,075 Repurchase agreement derivatives — — 26,475 26,475 Forward purchase contracts — 821 — 821 Forward sales contracts — 16,892 — 16,892 MBS put options — 4,413 — 4,413 MBS call options — 12 — 12 Put options on interest rate futures purchase contracts 3,063 — — 3,063 Call options on interest rate futures purchase contracts 63 — — 63 Total derivative assets before netting 3,126 22,138 67,550 92,814 Netting — — — (19,196) Total derivative assets 3,126 22,138 67,550 73,618 Investment in PennyMac Mortgage Investment Trust 1,518 — — 1,518 Mortgage servicing rights at fair value — — 2,785,964 2,785,964 $ 150,120 $ 2,073,790 $ 3,218,817 $ 5,423,531 Liabilities: Excess servicing spread financing payable to PennyMac Mortgage Investment Trust at fair value $ — $ — $ 223,275 $ 223,275 Derivative liabilities: Interest rate lock commitments — — 3,912 3,912 Forward purchase contracts — 29,569 — 29,569 Forward sales contracts — 2,780 — 2,780 Total derivative liabilities before netting — 32,349 3,912 36,261 Netting — — — (23,568) Total derivative liabilities — 32,349 3,912 12,693 Mortgage servicing liabilities at fair value — — 9,769 9,769 $ — $ 32,349 $ 236,956 $ 245,737 December 31, 2017 Level 1 Level 2 Level 3 Total (in thousands) Assets: Short-term investments $ 170,080 $ — $ — $ 170,080 Mortgage loans held for sale at fair value — 2,316,892 782,211 3,099,103 Derivative assets: Interest rate lock commitments — — 60,012 60,012 Repurchase agreement derivatives — — 10,656 10,656 Forward purchase contracts — 4,288 — 4,288 Forward sales contracts — 2,101 — 2,101 MBS put options — 3,481 — 3,481 Put options on interest rate futures purchase contracts 3,570 — — 3,570 Call options on interest rate futures purchase contracts 938 — — 938 Total derivative assets before netting 4,508 9,870 70,668 85,046 Netting — — — (6,867) Total derivative assets 4,508 9,870 70,668 78,179 Investment in PennyMac Mortgage Investment Trust 1,205 — — 1,205 Mortgage servicing rights at fair value — — 638,010 638,010 $ 175,793 $ 2,326,762 $ 1,490,889 $ 3,986,577 Liabilities: Excess servicing spread financing payable to PennyMac Mortgage Investment Trust at fair value $ — $ — $ 236,534 $ 236,534 Derivative liabilities: Interest rate lock commitments — — 1,740 1,740 Forward purchase contracts — 1,272 — 1,272 Forward sales contracts — 7,031 — 7,031 Total derivative liabilities before netting — 8,303 1,740 10,043 Netting — — — (4,247) Total derivative liabilities — 8,303 1,740 5,796 Mortgage servicing liabilities at fair value — — 14,120 14,120 $ — $ 8,303 $ 252,394 $ 256,450 As shown above, all or a portion of the Company’s mortgage loans held for sale, Interest Rate Lock Commitments (“IRLCs”), repurchase agreement derivatives, MSRs at fair value, ESS at fair value and MSLs are measured using Level 3 fair value inputs. Following are roll forwards of these items for each of the quarters and nine months ended September 30, 2018 and 2017: Quarter ended September 30, 2018 Mortgage Net interest Repurchase Mortgage loans held rate lock agreement servicing for sale commitments (1) derivatives rights Total (in thousands) Assets: Balance, June 30, 2018 $ 334,166 $ 55,689 $ 25,781 $ 2,486,157 $ 2,901,793 Purchases and issuances, net 1,008,662 41,721 12,903 163,511 1,226,797 Sales and repayments (231,921) — (11,982) — (243,903) Mortgage servicing rights resulting from mortgage loan sales — — — 149,000 149,000 Changes in fair value included in income arising from: Changes in instrument-specific credit risk 84 — — — 84 Other factors — 10,696 (227) (12,704) (2,235) 84 10,696 (227) (12,704) (2,151) Transfers from Level 3 to Level 2 (744,324) — — — (744,324) Transfers to real estate acquired in settlement of loans (1,364) — — — (1,364) Transfers of interest rate lock commitments to mortgage loans held for sale — (70,943) — — (70,943) Balance, September 30, 2018 $ 365,303 $ 37,163 $ 26,475 $ 2,785,964 $ 3,214,905 Changes in fair value recognized during the quarter relating to assets still held at September 30, 2018 $ (4,811) $ 37,163 $ — $ (12,704) $ 19,648 (1) For the purpose of this table, the IRLC asset and liability positions are shown net. Quarter ended September 30, 2018 Excess servicing Mortgage spread servicing financing liabilities Total (in thousands) Liabilities: Balance, June 30, 2018 $ 229,470 $ 10,253 $ 239,723 Issuance of excess servicing spread financing pursuant to a recapture agreement with PennyMac Mortgage Investment Trust 499 — 499 Accrual of interest 3,740 — 3,740 Repayments (11,543) — (11,543) Mortgage servicing liabilities resulting from mortgage loan sales — 1,741 1,741 Changes in fair value included in income 1,109 (2,225) (1,116) Balance, September 30, 2018 $ 223,275 $ 9,769 $ 233,044 Changes in fair value recognized during the quarter relating to liabilities still outstanding at September 30, 2018 $ 1,109 $ (2,225) $ (1,116) Quarter ended September 30, 2017 Mortgage Net interest Repurchase Mortgage loans held rate lock agreement servicing for sale commitments (1) derivatives rights Total (in thousands) Assets: Balance, June 30, 2017 $ 380,084 $ 46,158 $ — $ 678,441 $ 1,104,683 Purchases and issuances, net 499,546 83,798 469 41 583,854 Sales and repayments (306,458) — — — (306,458) Interest rate lock commitments issued, net — — — — — Mortgage servicing rights resulting from mortgage loan sales — — — 5,773 5,773 Changes in fair value included in income arising from: Changes in instrument-specific credit risk (1,130) — — — (1,130) Other factors — 41,693 — (28,271) 13,422 (1,130) 41,693 — (28,271) 12,292 Transfers from Level 3 to Level 2 (195,802) — — — (195,802) Transfers of interest rate lock commitments to mortgage loans held for sale — (117,265) — — (117,265) Balance, September 30, 2017 $ 376,240 $ 54,384 $ 469 $ 655,984 $ 1,087,077 Changes in fair value recognized during the quarter relating to assets still held at September 30, 2017 $ (2,851) $ 54,384 $ — $ (28,271) $ 23,262 (1) For the purpose of this table, the IRLC asset and liability positions are shown net. Quarter ended September 30, 2017 Excess servicing Mortgage spread servicing financing liabilities Total (in thousands) Liabilities: Balance, June 30, 2017 $ 261,796 $ 18,295 $ 280,091 Issuance of excess servicing spread financing pursuant to a recapture agreement with PennyMac Mortgage Investment Trust 1,207 — 1,207 Accrual of interest 3,998 — 3,998 Repayments (13,410) — (13,410) Mortgage servicing liabilities resulting from mortgage loan sales — 4,071 4,071 Changes in fair value included in income (4,828) (6,290) (11,118) Balance, September 30, 2017 $ 248,763 $ 16,076 $ 264,839 Changes in fair value recognized during the quarter relating to liabilities still outstanding at September 30, 2017 $ (4,828) $ (6,290) $ (11,118) Nine months ended September 30, 2018 Mortgage Net interest Repurchase Mortgage loans held rate lock agreement servicing for sale commitments (1) derivatives rights Total (in thousands) Assets: Balance, December 31, 2017 $ 782,211 $ 58,272 $ 10,656 $ 638,010 $ 1,489,149 Reclassification of mortgage servicing rights previously accounted for under the amortization method pursuant to a change in accounting principle — — — 1,482,426 1,482,426 Balance, January 1, 2018 782,211 58,272 10,656 2,120,436 2,971,575 Purchases and issuances, net 2,480,523 157,649 36,624 193,640 2,868,436 Sales and repayments (1,122,448) — (19,460) — (1,141,908) Mortgage servicing rights resulting from mortgage loan sales — — — 448,604 448,604 Changes in fair value included in income arising from: Changes in instrument-specific credit risk (4,944) — — — (4,944) Other factors — (28,627) (1,345) 23,284 (6,688) (4,944) (28,627) (1,345) 23,284 (11,632) Transfers from Level 3 to Level 2 (1,765,854) — — — (1,765,854) Transfers to real estate acquired in settlement of loans (4,185) — — — (4,185) Transfers of interest rate lock commitments to mortgage loans held for sale — (150,131) — — (150,131) Balance, September 30, 2018 $ 365,303 $ 37,163 $ 26,475 $ 2,785,964 $ 3,214,905 Changes in fair value recognized during the period relating to assets still held at September 30, 2018 $ (4,912) $ 37,163 $ — $ 23,284 $ 55,535 (1) For the purpose of this table, the IRLC asset and liability positions are shown net. Nine months ended September 30, 2018 Excess servicing Mortgage spread servicing financing liabilities Total (in thousands) Liabilities: Balance, December 31, 2017 $ 236,534 $ 14,120 $ 250,654 Issuance of excess servicing spread financing pursuant to a recapture agreement with PennyMac Mortgage Investment Trust 1,983 — 1,983 Accrual of interest 11,584 — 11,584 Repayments (35,852) — (35,852) Mortgage servicing liabilities resulting from mortgage loan sales — 5,548 5,548 Changes in fair value included in income 9,026 (9,899) (873) Balance, September 30, 2018 $ 223,275 $ 9,769 $ 233,044 Changes in fair value recognized during the period relating to liabilities still outstanding at September 30, 2018 $ 9,026 $ (9,899) $ (873) Nine months ended September 30, 2017 Mortgage Net interest Repurchase Mortgage loans held rate lock agreement servicing for sale commitments (1) derivatives rights Total (in thousands) Assets: Balance December 31, 2016 $ 47,271 $ 59,391 $ — $ 515,925 $ 622,587 Purchases 1,815,509 226,617 469 183,830 2,226,425 Sales and repayments (845,318) — — — (845,318) Interest rate lock commitments issued, net — — — — — Mortgage servicing rights resulting from mortgage loan sales — — — 19,702 19,702 Changes in fair value included in income arising from: Changes in instrument-specific credit risk (6,104) — — — (6,104) Other factors — 99,425 — (63,473) 35,952 (6,104) 99,425 — (63,473) 29,848 Transfers from Level 3 to Level 2 (635,118) — — — (635,118) Transfers of interest rate lock commitments to mortgage loans held for sale — (331,049) — — (331,049) Balance, September 30, 2017 $ 376,240 $ 54,384 $ 469 $ 655,984 $ 1,087,077 Changes in fair value recognized during the year relating to assets still held at September 30, 2017 $ (3,733) $ 54,384 $ — $ (63,473) $ (12,822) (1) For the purpose of this table, the IRLC asset and liability positions are shown net. Nine months ended September 30, 2017 Excess servicing Mortgage spread servicing financing liabilities Total (in thousands) Liabilities: Balance December 31, 2016 $ 288,669 $ 15,192 $ 303,861 Issuance of excess servicing spread financing pursuant to a recapture agreement with PennyMac Mortgage Investment Trust 4,160 — 4,160 Accrual of interest 13,011 — 13,011 Repayments (42,320) — (42,320) Mortgage servicing liabilities resulting from mortgage loan sales — 11,940 11,940 Mortgage servicing liabilities assumed — — — Changes in fair value included in income (14,757) (11,056) (25,813) Balance, September 30, 2017 $ 248,763 $ 16,076 $ 264,839 Changes in fair value recognized during the year relating to liabilities still outstanding at September 30, 2017 $ (14,757) $ (11,056) $ (25,813) The information used in the preceding roll forwards represents activity for assets and liabilities measured at fair value on a recurring basis and identified as using “Level 3” significant fair value inputs at either the beginning or the end of the periods presented. The Company had transfers among the fair value levels arising from transfers of IRLCs to mortgage loans held for sale at fair value upon purchase or funding of the respective mortgage loans and from the return to salability in the active secondary market of certain mortgage loans held for sale. Assets and Liabilities Measured at Fair Value under the Fair Value Option Net changes in fair values included in income for assets and liabilities carried at fair value as a result of management’s election of the fair value option by income statement line item are summarized below: Quarter ended September 30, 2018 2017 Net Net gains on Net Net gains on mortgage mortgage mortgage mortgage loan loans held loan loans held servicing for sale at servicing for sale at fees fair value Total fees fair value Total (in thousands) Assets: Mortgage loans held for sale at fair value $ — $ 67,709 $ 67,709 $ — $ 130,869 $ 130,869 Mortgage servicing rights at fair value (12,704) — (12,704) (28,271) — (28,271) $ (12,704) $ 67,709 $ 55,005 $ (28,271) $ 130,869 $ 102,598 Liabilities: Excess servicing spread financing at fair value payable to PennyMac Mortgage Investment Trust $ (1,109) $ — $ (1,109) $ 4,828 $ — $ 4,828 Mortgage servicing liabilities at fair value 2,225 — 2,225 6,290 — 6,290 $ 1,116 $ — $ 1,116 $ 11,118 $ — $ 11,118 Nine months ended September 30, 2018 2017 Net Net gains on Net Net gains on mortgage mortgage mortgage mortgage loan loans held loan loans held servicing for sale at servicing for sale at fees fair value Total fees fair value Total (in thousands) Assets: Mortgage loans held for sale at fair value $ — $ 118,452 $ 118,452 $ — $ 336,836 $ 336,836 Mortgage servicing rights at fair value 23,284 — 23,284 (63,473) — (63,473) $ 23,284 $ 118,452 $ 141,736 $ (63,473) $ 336,836 $ 273,363 Liabilities: Excess servicing spread financing at fair value payable to PennyMac Mortgage Investment Trust $ (9,026) $ — $ (9,026) $ 14,757 $ — $ 14,757 Mortgage servicing liabilities at fair value 9,899 — 9,899 11,056 — 11,056 $ 873 $ — $ 873 $ 25,813 $ — $ 25,813 Following are the fair value and related principal amounts due upon maturity of assets accounted for under the fair value option: September 30, 2018 December 31, 2017 Principal Principal amount amount Fair due upon Fair due upon value maturity Difference value maturity Difference (in thousands) Mortgage loans held for sale: Current through 89 days delinquent $ 2,148,919 $ 2,078,047 $ 70,872 $ 2,430,517 $ 2,326,772 $ 103,745 90 days or more delinquent: Not in foreclosure 215,712 218,623 (2,911) 614,329 614,357 (28) In foreclosure 52,324 56,101 (3,777) 54,257 57,248 (2,991) $ 2,416,955 $ 2,352,771 $ 64,184 $ 3,099,103 $ 2,998,377 $ 100,726 Assets Measured at Fair Value on a Nonrecurring Basis Following is a summary of assets and liabilities that were measured at fair value on a nonrecurring basis during the periods presented: September 30, 2018 Level 1 Level 2 Level 3 Total (in thousands) Real estate acquired in settlement of loans $ — $ — $ 2,134 $ 2,134 December 31, 2017 Level 1 Level 2 Level 3 Total (in thousands) Mortgage servicing rights at lower of amortized cost or fair value $ — $ — $ 1,463,552 $ 1,463,552 Real estate acquired in settlement of loans — — 2,355 2,355 $ — $ — $ 1,465,907 $ 1,465,907 The following table summarizes the total gains (losses) on assets measured at fair value on a nonrecurring basis: Quarter ended September 30, Nine months ended September 30, 2018 2017 2018 2017 (in thousands) Mortgage servicing rights at lower of amortized cost or fair value $ — $ (17,270) $ — $ (33,906) Real estate acquired in settlement of loans (41) 17 (72) 102 $ (41) $ (17,253) $ (72) $ (33,804) Fair Value of Financial Instruments Carried at Amortized Cost The Company’s Assets purchased from PennyMac Mortgage Investment Trust under agreements to resell , Assets sold under agreements to repurchase , Mortgage loan participation purchase and sale agreements , Notes payable , and Obligations under capital lease are carried at amortized cost. These assets and liabilities’ fair values do not have observable inputs and the fair value is measured using management’s estimate of fair value. Accordingly, the Company has classified these financial instruments as “Level 3” fair value assets and liabilities. The Company has concluded that those assets and liabilities’ fair values approximate the carrying value due to their short terms and/or variable interest rates. Valuation Governance Most of the Company’s financial assets, and all of its MSRs, ESS, derivative liabilities and MSLs, 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, ESS and MSLs are “Level 3” fair value assets and liabilities 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 judgments 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” fair value assets and liabilities, management has assigned the responsibility for estimating the fair value of these items to specialized staff and subjects the valuation process to significant senior management oversight. The Company’s Financial Analysis and Valuation group (the “FAV group”) is the Company’s specialized staff responsible for estimating the fair values of “Level 3” fair value assets and liabilities other than IRLCs. With respect to the non-IRLC “Level 3” valuations, the FAV group reports to the Company’s senior management valuation committee, which oversees the valuations. The FAV group monitors the models used for valuation of the Company’s “Level 3” fair value assets and liabilities, 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 the Company’s executive chairman, chief executive, chief financial, chief risk and deputy chief financial officers. The FAV group is responsible for reporting to the Company’s senior management valuation committee on the changes in the valuation of the non-IRLC “Level 3” fair value assets and liabilities, 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. With respect to IRLCs, the Company has assigned responsibility for developing fair values to its Capital Markets Risk Management staff. The fair values developed by the Capital Markets Risk Management staff are reviewed by the Company’s Capital Markets Operations group. Valuation Techniques and Inputs Following is a description of the techniques and inputs used in estimating the fair values of “Level 2” and “Level 3” fair value assets and liabilities: Mortgage Loans Held for Sale Most of the Company’s mortgage loans held for sale at fair value are saleable into active markets and are therefore categorized as “Level 2” fair value assets and their fair values are determined using their quoted market or contracted selling price or market price equivalent. Certain of the Company’s mortgage loans held for sale are not saleable into active markets and are therefore categorized as “Level 3” fair value assets. Mortgage loans held for sale categorized as “Level 3” fair value assets include: · Certain delinquent government guaranteed or insured mortgage loans purchased by the Company from Ginnie Mae guaranteed pools in its mortgage loan servicing portfolio. The Company’s right to purchase delinquent government guaranteed or insured mortgage loans arises as the result of the borrower’s failure to make payments for at least 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. Such repurchased mortgage loans may be resold to third-party investors and thereafter may be repurchased to the extent they become eligible for resale into a new Ginnie Mae guaranteed pool. Government guaranteed mortgage loans generally become eligible for resale when the repurchased mortgage loans become current either through the borrower’s reperformance or through completion of a modification of the mortgage loan’s terms. · Certain of the Company’s mortgage loans held for sale that become non-saleable into active markets due to identification of a defect by the Company or to the repurchase by the Company of a mortgage loan with an identified defect. The Company uses a discounted cash flow model to estimate the fair value of its “Level 3” fair value mortgage loans held for sale at fair value. The significant unobservable inputs used in the fair value measurement of the Company’s “Level 3” fair value mortgage loans held for sale at fair value are discount rates, home price projections, voluntary prepayment/resale speeds and total prepayment speeds. Significant changes in any of those inputs in isolation could result in a significant change to the mortgage 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” fair value inputs used in the valuation of mortgage loans held for sale at fair value: Key inputs (1) September 30, 2018 December 31, 2017 Discount rate: Range 2.8% – 9.2% 2.9% – 10.0% Weighted average 2.9% 2.9% Twelve-month projected housing price index change: Range 3.5% – 6.1% 3.1% – 5.6% Weighted average 3.9% 3.6% Voluntary prepayment / resale speed (2): Range 0.1% – 71.0% 0.2% – 72.2% Weighted average 24.2% 44.6% Total prepayment speed (3): Range 0.1% – 72.1% 0.2% – 75.2% Weighted average 41.3% 55.8% (1) Weighted average inputs are based on fair value of mortgage loans. (2) Voluntary prepayment/resale speed is measured using Life Voluntary Conditional Prepayment Rate (“CPR”). (3) Total prepayment speed is measured using Life Total CPR. Changes in fair value attributable to changes in instrument specific credit risk are measured by reference to the change in the respective mortgage loan’s delinquency status and performance history 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 Company’s consolidated statements of income. Derivative Financial Instruments Interest Rate Lock Commitments The Company categorizes IRLCs as a “Level 3” fair value asset or liability. The Company estimates the fair value of an IRLC based on quoted Agency MBS prices, its estimate of the fair value of the MSRs it expects to receive in the sale of the mortgage 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 fair 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 the IRLCs’ fair value measurement. The financial effects of changes in these inputs are generally inversely correlated as increasing interest rates have a positive effect on the fair value of the MSR component of IRLC fair value, but increase the pull-through rate for the mortgage loan principal and interest payment cash flow component, which has decreased in fair value. Changes in fair value of IRLCs are included in Net gains on mortgage loans acquired for sale at fair value and may be allocated to Net mortgage loan servicing fees – Amortization, impairment and change in fair value of mortgage servicing rights and mortgage servicing liabilities as an economic hedge of the fair value of MSRs in the consolidated statements of income when it is included as a component of the Company’s MSR hedging strategy. Following is a quantitative summary of key “Level 3” fair value inputs used in the valuation of IRLCs: Key inputs (1) September 30, 2018 December 31, 2017 Pull-through rate: Range 16.6% – 100% 25.0% – 100% Weighted average 85.7% 85.6% Mortgage servicing rights value expressed as: Servicing fee multiple: Range 1.6 – 5.9 1.4 – 5.8 Weighted average 4.0 4.0 Percentage of unpaid principal balance: Range 0.4% – 2.8% 0.3% – 3.0% Weighted average 1.4% 1.4% (1) Weighted average inputs are based on notional amount of IRLCs. Hedging Derivatives Fair value of exchange-traded hedging derivative financial instruments are categorized by the Company as “Level 1” fair value assets and liabilities. Fair value of hedging derivative financial instruments based on observable MBS prices or interest rate volatilities in the MBS market are categorized as “Level 2” fair value assets and liabilities. Changes in the fair value of hedging derivatives are included in Net gains on mortgage loans acquired for sale at fair value, or Net mortgage loan servicing fees – Amortization, impairment and change in fair value of mortgage servicing rights and mortgage servicing liabilities , as applicable, in the consolidated statements of income. Repurchase Agreement Derivatives The Company has a master repurchase agreement that includes incentives for financing mortgage loans approved for satisfying certain consumer relief characteristics. These incentives are classified for financial reporting purposes as embedded derivatives and are accounted for separate from the master repurchase agreement. The Company classifies these derivatives as “Level 3” fair value assets. The significant unobservable inputs into the valuation of these derivative assets are the discount rate and the Company’s expected approval rate of the mortgage loans financed under the master repurchase agreement. The resulting ratio included in the Company’s fair value estimate was 97% at September 30, 2018 and December 31, 2017. Changes in fair value of repurchase agreement derivatives are included in Interest expense in the consolidated statements of income. Mortgage Servicing Rights MSRs are categorized as “Level 3” fair value assets. The Company uses a discounted cash flow approach to estimate the fair value of MSRs. The key inputs used in the estimation of the fair value of MSRs include prepayment and default rates of the underlying mortgage loans, the applicable pricing spread and annual per-loan cost to service mortgage loans, all of which are unobservable. Significant changes to any of those inputs in isolation could result in a significant change in the MSR fair value measurement. Changes in these key inputs are not necessarily directly related. Recognized changes in the fair value of MSRs are included in Net mortgage loan servicing fees — Amortization, impairment and change in fair value of mortgage servicing rights and mortgage servicing liabilities in the consolidated statements of income. MSRs are generally subject to loss in fair value when mortgage interest rates decrease. Decreasing mortgage interest rates normally encourage increased mortgage refinancing activity. Increased refinancing activity reduces the expected life of the underlying mortgage loans, thereby reducing the cash flows expected to accrue to the MSRs. Reductions in the fair value of MSRs affect income primarily through change in fair value and change in impairment. Following are the key inputs used in determining the fair value of MSRs recognized in mortgage loan sales at the time of initial recognition. The following values exclude MSR purchases: Quarter ended September 30, 2018 2017 Fair Fair Amortized value value cost (Amount recognized and unpaid principal balance of underlying mortgage loans in thousands) MSR and pool characteristics: Amount recognized $ 149,000 $ 5,773 $ 153,061 Unpaid principal balance of underlying mortgage loans $ 10,790,398 $ 573,463 $ 12,184,003 Weighted average servicing fee rate (in basis points) 37 31 32 Key inputs (1): Pricing spread (2) Range 7.3% – 13.6% 7.6% – 11.2% 7.6% – 14.6% Weighted average 10.1% 10.7% 10.8% Annual total prepayment speed (3) Range 4.4% – 55.7% 3.9% – 46.8% 4.4% – 47.6% Weighted average 11.8% 13.3% 9.5% Life (in years) Range 0.5 – 11.3 1.4 – 11.4 1.5 – 11.4 Weighted average 6.9 6.3 7.9 Per-loan annual cost of servicing Range $78 – $98 $78 – $98 $79 – $98 Weighted average $92 $89 $89 (1) Weighted average inputs are based on UPB of the underlying mortgage loans. (2) 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 Offered Rate (“LIBOR”) curve for purposes of discounting cash flows relating to MSRs. (3) Prepayment speed is measured using Life Total CPR. Nine months ended September 30, 2018 2017 Fair Fair Amortized value value cost (Amount recognized and unpaid principal balance of underlying mortgage loans in thousands) MSR and pool characteristics: Amount recognized $448,604 $19,702 $412,206 Unpaid principal balance of underlying mortgage loans $32,095,458 $1,873,404 $33,890,209 Weighted average servicing fee rate (in basis points) 36 31 30 Key inputs (1): Pricing spread (2) Range 7.3% – 14.1% 7.6% – 11.2% 7.6% – 15.2% Weighted average 10.2% 10.5% 10.7% Annual total prepayment speed (3) Range 3.9% – 61.8% 3.9% – 71.8% 3.4% – 47.6% Weighted average 10.6% 12.5% 9.1% Life (in years) Range 0.5 – 11.6 0.8 – 11.5 1.5 – 12.2 Weighted average 7.5 6

Mortgage Loans Held for Sale at

Mortgage Loans Held for Sale at Fair Value	9 Months Ended
	Sep. 30, 2018
Mortgage Loans Held for Sale at Fair Value
Mortgage Loans Held for Sale at Fair Value	Note 7—Mortgage Loans Held for Sale at Fair Value Mortgage loans held for sale at fair value include the following: September 30, December 31, 2018 2017 (in thousands) Government-insured or guaranteed $ 1,892,992 $ 2,085,764 Conventional conforming 158,660 231,128 Purchased from Ginnie Mae pools serviced by the Company 354,076 777,300 Repurchased pursuant to representations and warranties 11,227 4,911 $ 2,416,955 $ 3,099,103 Fair value of mortgage loans pledged to secure: Assets sold under agreements to repurchase $ 1,841,097 $ 2,530,299 Mortgage loan participation purchase and sale agreements 547,969 551,688 $ 2,389,066 $ 3,081,987

Derivative Activities

Derivative Activities	9 Months Ended
	Sep. 30, 2018
Derivative Activities
Derivative Activities	Note 8—Derivative Activities The Company holds and issues derivative financial instruments in connection with its operating activities. Derivative financial instruments are created as a result of certain of the Company’s operations and the Company also enters into derivative transactions as part of its interest rate risk management activities. Derivative financial instruments created as a result of the Company’s operations include: · IRLCs that are created when the Company commits to purchase or originate a mortgage loan acquired for sale. · Derivatives that are embedded in a master repurchase agreement that provides for the Company to receive incentives for financing mortgage loans that satisfy certain consumer relief characteristics under the master repurchase agreement. The Company also 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 the portion of its MSRs not financed with ESS. The Company records all derivative financial instruments at fair value and records changes in fair value in current period income. Derivative Notional Amounts and Fair Value of Derivatives The Company had the following derivative financial instruments recorded on its consolidated balance sheets: September 30, 2018 December 31, 2017 Fair value Fair value Notional Derivative Derivative Notional Derivative Derivative Instrument amount assets liabilities amount assets liabilities (in thousands) Derivatives not designated as hedging instruments: Not subject to master netting arrangements: Interest rate lock commitments 3,388,437 $ 41,075 $ 3,912 3,654,955 $ 60,012 $ 1,740 Repurchase agreement derivatives 26,475 — 10,656 — Used for hedging purposes: Forward purchase contracts 7,115,621 821 29,569 4,920,883 4,288 1,272 Forward sales contracts 6,711,197 16,892 2,780 5,204,796 2,101 7,031 MBS put options 4,150,000 4,413 — 4,925,000 3,481 — MBS call options 1,250,000 12 — — — — Put options on interest rate futures purchase contracts 2,225,000 3,063 — 2,125,000 3,570 — Call options on interest rate futures purchase contracts 400,000 63 — 100,000 938 — Put options on interest rate futures sales contracts 300,000 — — — — — Treasury futures purchase contracts 835,000 — — 100,000 — — Treasury futures sale contracts 1,450,000 — — — — — Interest rate swap futures purchase contracts — — — 1,400,000 — — Interest rate swap futures sales contracts 625,000 — — — — — Total derivatives before netting 92,814 36,261 85,046 10,043 Netting (19,196) (23,568) (6,867) (4,247) $ 73,618 $ 12,693 $ 78,179 $ 5,796 Deposits (received from) placed with derivative counterparties $ (4,372) $ 2,620 The following table summarizes the notional amount activity for derivative contracts used in the Company’s hedging activities: Quarter ended September 30, 2018 Amount Amount beginning of Dispositions/ end of Instrument quarter Additions expirations quarter (in thousands) Forward purchase contracts 6,617,888 47,038,415 (46,540,682) 7,115,621 Forward sale contracts 7,107,202 58,521,199 (58,917,204) 6,711,197 MBS put options 2,675,000 8,375,000 (6,900,000) 4,150,000 MBS call options — 1,250,000 — 1,250,000 Put options on interest rate futures purchase contracts 1,852,500 4,922,300 (4,549,800) 2,225,000 Call options on interest rate futures purchase contracts 800,000 950,000 (1,350,000) 400,000 Put options on interest rate futures sale contracts — 4,849,800 (4,549,800) 300,000 Call options on interest rate futures sale contracts — 1,350,000 (1,350,000) — Treasury futures purchase contracts 835,000 2,557,100 (2,557,100) 835,000 Treasury futures sale contracts 1,450,000 2,557,100 (2,557,100) 1,450,000 Interest rate swap futures purchase contracts 465,000 420,000 (885,000) — Interest rate swap futures sales contracts — 885,000 (260,000) 625,000 Quarter ended September 30, 2017 Amount Amount beginning of Dispositions/ end of Instrument quarter Additions expirations quarter (in thousands) Forward purchase contracts 7,819,706 47,723,376 (48,242,564) 7,300,518 Forward sale contracts 7,641,979 61,239,459 (61,296,545) 7,584,893 MBS put options 6,075,000 6,825,000 (7,250,000) 5,650,000 MBS call options — 7,900,000 (7,250,000) 650,000 Put options on interest rate futures purchase contracts 1,250,000 2,950,000 (3,175,000) 1,025,000 Call options on interest rate futures purchase contracts 200,000 125,000 (200,000) 125,000 Put options on interest rate futures sale contracts 200,000 2,975,000 (3,175,000) — Call options on interest rate futures sale contracts — 325,000 (200,000) 125,000 Treasury futures purchase contracts — 46,500 (46,500) — Treasury futures sale contracts — 46,500 (46,500) — Interest rate swap futures purchase contracts 325,000 1,075,000 — 1,400,000 Interest rate swap futures sale contracts — — — — Nine months ended September 30, 2018 Amount Amount beginning of Dispositions/ end of Instrument period Additions expirations period (in thousands) Forward purchase contracts 4,920,883 140,158,865 (137,964,127) 7,115,621 Forward sale contracts 5,204,796 174,562,881 (173,056,480) 6,711,197 MBS put options 4,925,000 17,250,000 (18,025,000) 4,150,000 MBS call options — 12,375,000 (11,125,000) 1,250,000 Put options on interest rate futures purchase contracts 2,125,000 16,624,800 (16,524,800) 2,225,000 Call options on interest rate futures purchase contracts 100,000 2,400,000 (2,100,000) 400,000 Put options on interest rate futures sale contracts — 16,824,800 (16,524,800) 300,000 Call options on interest rate futures sale contracts — 2,100,000 (2,100,000) — Treasury futures purchase contracts 100,000 7,453,300 (6,718,300) 835,000 Treasury futures sale contracts — 8,829,600 (7,379,600) 1,450,000 Interest rate swap futures purchase contracts 1,400,000 885,000 (2,285,000) — Interest rate swap futures sales contracts — 2,285,000 (1,660,000) 625,000 Nine months ended September 30, 2017 Amount Amount beginning of Dispositions/ end of Instrument period Additions expirations period (in thousands) Forward purchase contracts 12,746,191 136,663,951 (142,109,624) 7,300,518 Forward sale contracts 16,577,942 169,173,906 (178,166,955) 7,584,893 MBS put options 1,175,000 19,675,000 (15,200,000) 5,650,000 MBS call options 1,600,000 12,100,000 (13,050,000) 650,000 Put options on interest rate futures purchase contracts 1,125,000 7,410,000 (7,510,000) 1,025,000 Call options on interest rate futures purchase contracts 900,000 1,614,300 (2,389,300) 125,000 Put options on interest rate futures sale contracts — 7,510,000 (7,510,000) — Call options on interest rate futures sales contracts — 2,514,300 (2,389,300) 125,000 Treasury futures purchase contracts — 212,600 (212,600) — Treasury futures sale contracts — 212,600 (212,600) — Interest rate swap futures purchase contracts 200,000 1,600,000 (400,000) 1,400,000 Interest rate swap futures sales contracts — 400,000 (400,000) — Derivative Balances and Netting of Financial Instruments 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 arrangement that is legally enforceable on all counterparties in the event of default. The derivatives that are not subject to a master netting arrangement are IRLCs and repurchase agreement derivatives. Offsetting of Derivative Assets Following are summaries of derivative assets and related netting amounts: September 30, 2018 December 31, 2017 Gross Gross amount Net amount Gross Gross amount Net amount amount of offset in the of assets in the amount of offset in the of assets in the recognized consolidated consolidated recognized consolidated consolidated assets balance sheet balance sheet assets balance sheet balance sheet (in thousands) Derivatives not subject to master netting arrangements: Interest rate lock commitments $ 41,075 $ — $ 41,075 $ 60,012 $ — $ 60,012 Repurchase agreement derivatives 26,475 — 26,475 10,656 — 10,656 67,550 — 67,550 70,668 — 70,668 Derivatives subject to master netting arrangements: Forward purchase contracts 821 — 821 4,288 — 4,288 Forward sale contracts 16,892 — 16,892 2,101 — 2,101 MBS put options 4,413 — 4,413 3,481 — 3,481 MBS call options 12 — 12 — — — Put options on interest rate futures purchase contracts 3,063 — 3,063 3,570 — 3,570 Call options on interest rate futures purchase contracts 63 — 63 938 — 938 Netting — (19,196) (19,196) — (6,867) (6,867) 25,264 (19,196) 6,068 14,378 (6,867) 7,511 $ 92,814 $ (19,196) $ 73,618 $ 85,046 $ (6,867) $ 78,179 Derivative Assets, Financial Instruments, and Cash 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, 2018 December 31, 2017 Gross amount not Gross amount not offset in the offset in the consolidated consolidated Net amount balance sheet Net amount balance sheet of assets in the Cash of assets in the Cash consolidated Financial collateral Net consolidated Financial collateral Net balance sheet instruments received amount balance sheet instruments received amount (in thousands) Interest rate lock commitments $ 41,075 $ — $ — $ 41,075 $ 60,012 $ — $ — $ 60,012 Deutsche Bank 26,475 — — 26,475 10,656 — — 10,656 RJ O'Brien 3,125 — — 3,125 4,508 — — 4,508 Citibank, N.A. 1,222 — — 1,222 — — — — Goldman Sachs 646 — — 646 540 — — 540 Morgan Stanley Bank, N.A. — — 587 — — — — Federal National Mortgage Association — — — — 1,092 — — 1,092 JPMorgan Chase Bank, N.A. — — — — 267 — — 267 Others 488 — — 488 1,104 — — 1,104 $ 73,618 $ — $ — $ 73,618 $ 78,179 $ — $ — $ 78,179 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. Assets sold under agreements to repurchase do not qualify for netting. September 30, 2018 December 31, 2017 Net Net amount amount Gross Gross amount of liabilities Gross Gross amount of liabilities amount of offset in the in the amount of offset in the in the recognized consolidated consolidated recognized consolidated consolidated liabilities balance sheet balance sheet liabilities balance sheet balance sheet (in thousands) Derivatives not subject to master netting arrangements – Interest rate lock commitments $ 3,912 $ — $ 3,912 $ 1,740 $ — $ 1,740 Derivatives subject to a master netting arrangement: Forward purchase contracts 29,569 — 29,569 1,272 — 1,272 Forward sale contracts 2,780 — 2,780 7,031 — 7,031 Netting — (23,568) (23,568) — (4,247) (4,247) 32,349 (23,568) 8,781 8,303 (4,247) 4,056 Total derivatives 36,261 (23,568) 12,693 10,043 (4,247) 5,796 Mortgage loans sold under agreements to repurchase: Amount outstanding 1,738,839 — 1,738,839 2,380,866 — 2,380,866 Unamortized premiums and debt issuance costs, net 799 — 799 672 — 672 1,739,638 — 1,739,638 2,381,538 — 2,381,538 $ 1,775,899 $ (23,568) $ 1,752,331 $ 2,391,581 $ (4,247) $ 2,387,334 Derivative Liabilities, Financial Instruments, and Collateral Held by Counterparty The following table summarizes by significant counterparty the amount of derivative liabilities and assets sold under agreements to repurchase after considering master netting arrangements and financial instruments or cash pledged that do 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, 2018 December 31, 2017 Gross amounts Gross amounts not offset in the not offset in the Net amount consolidated Net amount consolidated of liabilities balance sheet of liabilities balance sheet in the Cash in the Cash consolidated Financial collateral Net consolidated Financial collateral Net balance sheet instruments pledged amount balance sheet instruments pledged amount (in thousands) Interest rate lock commitments $ 3,912 $ — $ — $ 3,912 $ 1,740 $ — $ — $ 1,740 Credit Suisse First Boston Mortgage Capital LLC 628,815 (628,815) — — 1,010,562 (1,010,320) — 242 Deutsche Bank 598,392 (598,392) — — 593,864 (593,864) — — Bank of America, N.A. 253,272 (247,572) — 5,700 406,787 (406,355) — 432 BNP Paribas 81,163 (81,163) — — 87,753 (87,753) — — Morgan Stanley Bank, N.A. 71,210 (71,210) — — 139,491 (138,983) — 508 JPMorgan Chase Bank, N.A. 59,826 (58,780) — 1,046 90,442 (90,442) — — Royal Bank of Canada 33,465 (33,465) — — 24,835 (23,752) — 1,083 Citibank, N.A. 19,442 (19,442) — — 23,010 (23,010) — — Barclays Capital 388 — — 388 6,387 (6,387) — — Others 1,647 — — 1,647 1,791 — — 1,791 $ 1,751,532 $ (1,738,839) $ — $ 12,693 $ 2,386,662 $ (2,380,866) $ — $ 5,796 Following are the gains and (losses) recognized by the Company on derivative financial instruments and the income statement line items where such gains and losses are included: Quarter ended September 30, Nine months ended September 30, Derivative activity Income statement line 2018 2017 2018 2017 (in thousands) Interest rate lock commitments Net gains on mortgage loans held for sale $ (18,526) $ 8,226 $ (21,109) $ (5,008) Repurchase agreement derivative Interest expense $ (227) $ — $ (1,345) $ — Hedged item: Interest rate lock commitments and mortgage loans held for sale Net gains on mortgage loans held for sale $ 10,820 $ (26,981) $ 100,422 $ (27,191) Mortgage servicing rights Net mortgage loan servicing fees – Amortization, impairment and change in fair value of mortgage servicing rights and mortgage servicing liabilities $ (52,971) $ 7,174 $ (180,853) $ (17,018)

Carried Interest Due from Inves

Carried Interest Due from Investment Funds	9 Months Ended
	Sep. 30, 2018
Carried Interest Due from Investment Funds
Carried Interest Due from Investment Funds	Note 9—Carried Interest Due from Investment Funds The activity in the Company’s Carried Interest due from Investment Funds, which is included in Other assets, is summarized as follows: Quarter ended September 30, Nine months ended September 30, 2018 2017 2018 2017 (in thousands) Balance at beginning of period $ 370 $ 71,019 $ 8,552 $ 70,906 Carried Interest recognized during the period (17) (1,158) (365) (1,045) Cash received during the period (353) (61,314) (8,187) (61,314) Balance at end of period $ — $ 8,547 $ — $ 8,547

Mortgage Servicing Rights and M

Mortgage Servicing Rights and Mortgage Servicing Liabilities	9 Months Ended
	Sep. 30, 2018
Mortgage Servicing Rights and Mortgage Servicing Liabilities
Mortgage Servicing Rights and Mortgage Servicing Liabilities	Note 10—Mortgage Servicing Rights and Mortgage Servicing Liabilities Mortgage Servicing Rights Carried at Fair Value The activity in MSRs carried at fair value is as follows: Quarter ended September 30, Nine months ended September 30, 2018 2017 2018 2017 (in thousands) Balance at beginning of period $ 2,486,157 $ 678,441 $ 638,010 $ 515,925 Reclassification of mortgage servicing rights previously accounted for under the amortization method pursuant to a change in accounting principle — — 1,482,426 — Balance after reclassification 2,486,157 678,441 2,120,436 515,925 Additions: Purchases 163,511 41 193,640 183,830 Mortgage servicing rights resulting from mortgage loan sales 149,000 5,773 448,604 19,702 312,511 5,814 642,244 203,532 Change in fair value due to: Changes in inputs used in valuation model (1) 64,293 (4,857) 239,538 (4,453) Other changes in fair value (2) (76,997) (23,414) (216,254) (59,020) Total change in fair value (12,704) (28,271) 23,284 (63,473) Balance at end of period $ 2,785,964 $ 655,984 $ 2,785,964 $ 655,984 September 30, December 31, 2018 2017 (in thousands) Fair value of mortgage servicing rights pledged to secure Assets sold under agreements to repurchase and Notes payable $ 2,539,575 $ 630,711 (1) Principally reflects changes in discount rate and prepayment speed inputs, primarily due to changes in market interest rates, and changes in expected borrower performance and servicer losses given default. (2) Represents changes due to realization of cash flows. Mortgage Servicing Rights 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 Nine months ended September 30, September 30, 2017 2018 2017 Amortized cost: Balance at beginning of period $ 1,384,741 $ 1,583,378 $ 1,206,694 Transfer of mortgage servicing rights to mortgage servicing rights carried at fair value pursuant to a change in accounting principle — (1,583,378) — Balance after reclassification 1,384,741 — 1,206,694 Mortgage servicing rights resulting from mortgage loan sales 153,061 — 412,206 Amortization (48,448) — (129,546) Balance at end of period 1,489,354 — 1,489,354 Valuation allowance: Balance at beginning of period (111,583) (101,800) (94,947) Reduction resulting from transfer of mortgage servicing rights to mortgage servicing rights carried at fair value pursuant to a change in accounting principle — 101,800 — Balance after reclassification (111,583) — (94,947) Increase in valuation allowance (17,270) — (33,906) Balance at end of period (128,853) — (128,853) Mortgage servicing rights, net at end of period $ 1,360,501 $ — $ 1,360,501 Fair value of mortgage servicing rights at: Beginning of period $ 1,273,364 $ 1,112,302 End of period $ 1,360,578 December 31, 2017 (in thousands) Fair value of mortgage servicing rights pledged to secure assets sold under agreements to repurchase and note payable $ 1,467,356 Mortgage Servicing Liabilities Carried at Fair Value The activity in MSLs carried at fair value is summarized below: Quarter ended September 30, Nine months ended September 30, 2018 2017 2018 2017 (in thousands) Balance at beginning of period $ 10,253 $ 18,295 $ 14,120 $ 15,192 Mortgage servicing liabilities resulting from mortgage loan sales 1,741 4,071 5,548 11,940 Changes in fair value due to: Changes in valuation inputs used in valuation model (1) 3,410 (176) 8,590 7,819 Other changes in fair value (2) (5,635) (6,114) (18,489) (18,875) Total change in fair value (2,225) (6,290) (9,899) (11,056) Balance at end of period $ 9,769 $ 16,076 $ 9,769 $ 16,076 (1) Principally reflects changes in expected borrower performance and servicer losses given default. (2) Represents changes due to realization of cash flows. Servicing fees relating to MSRs and MSLs are recorded in Net mortgage loan servicing fees—Loan servicing fees—From non-affiliates on the consolidated statements of income; late charges and other ancillary fees relating to MSRs and MSLs are recorded in Net mortgage loan servicing fees—Loan servicing fees—Ancillary and other fees on the Company’s consolidated statements of income. Such amounts are summarized below: Quarter ended September 30, Nine months ended September 30, 2018 2017 2018 2017 (in thousands) Contractual servicing fees $ 147,182 $ 126,416 $ 421,536 $ 345,231 Ancillary and other fees: Late charges 5,087 6,326 19,595 18,915 Other 1,244 1,270 4,620 3,296 $ 153,513 $ 134,012 $ 445,751 $ 367,442

Borrowings

Borrowings	9 Months Ended
	Sep. 30, 2018
Borrowings
Borrowings	Note 11—Borrowings The borrowing facilities described throughout this Note 11 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 covenants as of September 30, 2018. Assets Sold Under Agreement to Repurchase The Company has multiple borrowing facilities in the form of asset sales under agreements to repurchase. These borrowing facilities are secured by mortgage loans held for sale at fair value or participation certificates backed by MSRs. Eligible mortgage loans and participation certificates backed by MSRs are sold at advance rates based on the fair value (as determined by the lender) of the assets sold. Interest is charged at a rate based on the lender’s overnight cost of funds rate or on LIBOR depending on the terms of the respective agreements. Mortgage loans and MSRs financed under these agreements may be re-pledged by the lenders. Assets sold under agreements to repurchase are summarized below: Quarter ended September 30, Nine months ended September 30, 2018 2017 2018 2017 (dollars in thousands) Average balance of assets sold under agreements to repurchase $ 1,563,053 $ 1,960,332 $ 1,618,008 $ 1,854,786 Weighted average interest rate (1) 3.91 % 3.23 % 3.72 % 3.15 % Total interest expense (2) $ 4,676 $ 19,203 $ 15,943 $ 52,249 Maximum daily amount outstanding $ 2,201,880 $ 2,564,756 $ 2,380,121 $ 2,581,199 September 30, December 31, 2018 2017 (dollars in thousands) Carrying value: Unpaid principal balance $ 1,738,839 $ 2,380,866 Unamortized premiums and debt issuance costs, net 799 672 $ 1,739,638 $ 2,381,538 Weighted average interest rate 3.93 % 3.24 % Available borrowing capacity (3): Committed $ 449,370 $ 316,503 Uncommitted 2,796,791 2,257,631 $ 3,246,161 $ 2,574,134 Fair value of assets securing repurchase agreements: Mortgage loans held for sale $ 1,841,097 $ 2,530,299 Servicing advances (4) $ 102,222 $ 114,643 Mortgage servicing rights (4) $ 2,539,575 $ 2,098,067 Assets purchased from PennyMac Mortgage Investment Trust under agreements to resell $ 133,128 $ 144,128 Margin deposits placed with counterparties (5) $ 3,750 $ 3,750 (1) Excludes the effect of amortization of net premiums totaling $10.9 million and $29.7 million for the quarter and nine months ended September 30, 2018, respectively, and commitment fees and issuance costs totaling $3.0 million and $7.9 million for the quarter and nine months ended September 30, 2017, respectively. (2) In 2017, PFSI entered into a master repurchase agreement that provides the Company with incentives to finance mortgage loans approved for satisfying certain consumer relief characteristics as provided in the agreement. The Company included $12.8 million and $35.5 million of such incentives as a reduction in Interest expense during the quarter and nine months ended September 30, 2018, respectively. The master repurchase agreement is subject to a rolling six-month term through August 21, 2019, unless terminated earlier at the option of the lender. There can be no assurance that the lender will not terminate this agreement before its stated maturity. (3) The amount the Company is able to borrow under asset repurchase agreements is tied to the fair value of unencumbered assets eligible to secure those agreements and the Company’s ability to fund the agreements’ margin requirements relating to the assets financed. (4) Beneficial interests in the Ginnie Mae MSRs and servicing advances are pledged to the Issuer Trust and together serve as the collateral backing the VFN, 2018-GT1 Notes and 2018-GT2 Notes. Financing of the VFN is included in Assets sold under agreements to repurchase and 2018-GT1 Notes and 2018-GT2 Notes are included in Notes payable on the Company's consolidated balance sheet. (5) Margin deposits are included in Other assets on the Company’s consolidated balance sheet. Following is a summary of maturities of outstanding advances under repurchase agreements by maturity date: Remaining maturity at September 30, 2018 Balance (dollars in thousands) Within 30 days $ 444,530 Over 30 to 90 days 1,239,074 Over 90 to 180 days 5,235 Over one to two years 50,000 Total assets sold under agreements to repurchase $ 1,738,839 Weighted average maturity (in months) 2.3 The amount at risk (the fair value of the assets pledged plus the related margin deposit, less the amount advanced by the counterparty and interest payable) relating to the Company’s assets under agreements to repurchase is summarized by counterparty below as of September 30, 2018: Weighted average maturity of advances under repurchase Counterparty Amount at risk agreement Facility maturity (in thousands) Credit Suisse First Boston Mortgage Capital LLC $ 1,290,904 April 26, 2020 April 26, 2020 Credit Suisse First Boston Mortgage Capital LLC $ 33,078 October 24, 2018 April 26, 2019 Deutsche Bank AG $ 84,185 December 19, 2018 August 21, 2019 Bank of America, N.A. $ 17,796 October 12, 2018 October 12, 2018 JP Morgan Chase Bank, N.A. $ 4,937 October 12, 2018 October 12, 2018 Morgan Stanley Bank, N.A. $ 4,656 December 19, 2018 August 23, 2019 BNP Paribas $ 4,384 November 16, 2018 November 16, 2018 Royal Bank of Canada $ 1,704 November 6, 2018 December 31, 2018 Citibank, N.A. $ 783 December 21, 2018 June 7, 2019 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 assets securing those agreements decreases. Mortgage Loan Participation Purchase and Sale Agreements Certain of the borrowing facilities secured by mortgage loans held for sale are in the form of mortgage loan participation purchase and sale agreements. Participation certificates, each of which represents an undivided beneficial ownership interest in mortgage loans that have been pooled with Fannie Mae, Freddie Mac or Ginnie Mae, are sold to the lender pending the securitization of the mortgage loans 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. The holdback amount is not required to be paid to the Company until the settlement of the security and its delivery to the lender. The mortgage loan participation purchase and sale agreements are summarized below: Quarter ended September 30, Nine months ended September 30, 2018 2017 2018 2017 (dollars in thousands) Average balance $ 289,008 $ 213,486 $ 250,599 $ 200,119 Weighted average interest rate (1) 3.31 % 2.48 % 3.14 % 2.25 % Total interest expense $ 2,533 $ 1,484 $ 6,450 $ 3,780 Maximum daily amount outstanding $ 722,611 $ 532,266 $ 722,611 $ 532,266 (1) Excludes the effect of amortization of facility fees totaling $92,000 and $134,000 for the quarters ended September 30, 2018 and 2017, respectively, and $475,000 and $365,000 for the nine months ended September 30, 2018 and 2017, respectively. September 30, December 31, 2018 2017 (dollars in thousands) Carrying value: Unpaid principal balance $ 524,686 $ 527,706 Unamortized debt issuance costs (19) (311) $ 524,667 $ 527,395 Weighted average interest rate 3.51 % 2.81 % Fair value of mortgage loans pledged to secure mortgage loan participation purchase and sale agreements $ 547,969 $ 551,688 Notes Payable Term Notes On February 16, 2017, the Company, through the Issuer Trust, issued an aggregate principal amount of $400 million in Term Notes (the “2017-GT1 Notes”) to qualified institutional buyers under Rule 144A of the Securities Act of 1933, as amended (the “Securities Act”). The 2017-GT1 Notes bore interest at a rate equal to one-month LIBOR plus 4.75% per annum. The 2017-GT1 Notes were scheduled to mature on February 25, 2020 or, if extended pursuant to the terms of the related indenture supplement, February 25, 2021 (unless earlier redeemed in accordance with their terms). On August 10, 2017, the Company, through the Issuer Trust, issued an aggregate principal amount of $500 million in Term Notes (the “2017-GT2 Notes”) to qualified institutional buyers under Rule 144A of the Securities Act. The 2017-GT2 Notes bear interest at a rate equal to one-month LIBOR plus 4.0% per annum. The 2017-GT2 Notes will mature on August 25, 2022 or, if extended pursuant to the terms of the related indenture supplement, August 25, 2023 (unless earlier redeemed in accordance with their terms). On February 28, 2018, the Company, through the Issuer Trust, issued an aggregate principal amount of $650 million in Term Notes (the “2018-GT1 Notes”) to qualified institutional buyers under Rule 144A of the Securities Act. The 2018-GT1 Notes bear interest at a rate equal to one-month LIBOR plus 2.85% per annum. The 2018-GT1 Notes will mature on February 25, 2023 or, if extended pursuant to the terms of the related indenture supplement, February 25, 2025 (unless earlier redeemed in accordance with their terms). On February 28, 2018, in connection with its issuance of the 2018-GT1 Notes, the Company also redeemed all of the 2017-GT1 Notes previously issued by the Issuer Trust. The redemption amount for the 2017-GT1 Notes was $400 million plus all accrued and unpaid interest. As a result, the Company recognized debt issuance cost of $3.4 million for the nine months ended September 30, 2018. On August 10, 2018, the Company, through the Issuer Trust, issued an aggregate principal amount of $650 million in Term Notes (the “2018-GT2 Notes”) to qualified institutional buyers under Rule 144A of the Securities Act. The 2018-GT2 Notes bear interest at a rate equal to one-month LIBOR plus 2.65% per annum. The 2018-GT2 Notes will mature on August 25, 2023 or, if extended pursuant to the terms of the related indenture supplement, August 25, 2025 (unless earlier redeemed in accordance with their terms). On August 10, 2018, in connection with its issuance of the 2018-GT2 Notes, the Company also redeemed all of the 2017-GT2 Notes previously issued by the Issuer Trust. The redemption amount for the 2017-GT2 Notes was $500 million plus all accrued and unpaid interest. As a result, the Company recognized debt issuance cost of $4.6 million for the quarter and nine months ended September 30, 2018. All of the Term Notes rank pari passu with each other and with the VFN issued by the Issuer Trust to PLS and are secured by certain participation certificates relating to Ginnie Mae MSRs and ESS that are financed pursuant to the GNMA MSR Facility. Revolving Credit Agreement The Company entered into a revolving credit agreement pursuant to which the lenders agreed to make revolving loans in an amount not to exceed $150 million. The proceeds of the loans are to be used solely for working capital and general corporate purposes of the Company and its subsidiaries. Interest on the loans accrues at a per annum rate of interest equal to, at an election of the Company, either LIBOR plus the applicable margin or an alternate base rate (as defined in the credit agreement). During the existence of certain events of default, interest accrues at a higher rate. The maturity date is November 16, 2018. Notes payable are summarized below: Quarter ended September 30, Nine months ended September 30, 2018 2017 2018 2017 (dollars in thousands) Average balance $ 1,234,783 $ 689,417 $ 1,125,458 $ 483,370 Weighted average interest rate (1) 5.07 % 5.85 % 5.29 % 5.87 % Total interest expense $ 21,369 $ 11,747 $ 55,939 $ 24,746 Maximum daily amount outstanding $ 1,300,000 $ 890,879 $ 1,300,000 $ 891,011 (1) Excluding the effect of amortization of debt issuance costs totaling $5. 2 million and $1.2 million for the quarters ended September 30, 2018 and 2017, respectively, and $10. 3 million and $3.2 million for the nine months ended September 30, 2018 and 2017, respectively. Also excludes the effect of non-utilization fees of $179,000 and $562,000 for the quarter and nine months ended September 30, 2018, respectively. September 30, December 31, 2018 2017 (dollars in thousands) Carrying value: Unpaid principal balance $ 1,300,000 $ 900,006 Unamortized debt issuance costs (8,153) (8,501) $ 1,291,847 $ 891,505 Weighted average interest rate 4.82 % 5.66 % Unused amount $ 150,000 $ 280,000 Assets pledged to secure notes payable: Cash $ 81,640 $ 20,765 Other assets ‒ Carried Interest $ — $ 8,552 Servicing advances (1) $ 102,222 $ 114,643 Mortgage servicing rights (1) $ 2,539,575 $ 2,098,067 (1) Beneficial interests in the Ginnie Mae MSRs and servicing advances are pledged to the Issuer Trust and together serve as the collateral backing the VFN, 2018-GT1 Notes and 2018-GT2 Notes. Financing of the VFN is included in Assets sold under agreements to repurchase and 2018-GT1 Notes and 2018-GT2 Notes are included in Notes payable on the Company's consolidated balance sheet. Obligations under Capital Lease In December 2015, the Company entered into a capital lease transaction secured by certain fixed assets and capitalized software. The capital lease matures on March 23, 2020 and bears interest at a spread over one-month LIBOR. Obligations under capital lease are summarized below: Quarter ended September 30, Nine months ended September 30, 2018 2017 2018 2017 (dollars in thousands) Average balance $ 11,615 $ 25,507 $ 15,187 $ 25,573 Weighted average interest rate 4.09 % 3.25 % 3.87 % 3.01 % Total interest expense $ 122 $ 205 $ 444 $ 585 Maximum daily amount outstanding $ 13,032 $ 26,641 $ 20,971 $ 30,044 September 30, December 31, 2018 2017 (in thousands) Unpaid principal balance $ 9,630 $ 20,971 Weighted average interest rate 4.16 % 3.26 % Assets pledged to secure obligations under capital lease: Furniture, fixtures and equipment $ 19,022 $ 23,915 Capitalized software $ 1,231 $ 1,568 Excess Servicing Spread Financing Payable to PennyMac Mortgage Investment Trust 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 with PMT. Under these agreements, the Company sold to PMT the right to receive ESS cash flows relating to certain MSRs. The Company retained a fixed base servicing fee and all ancillary income associated with servicing the loans. The Company continues to be the servicer of the mortgage loans and retains all servicing obligations, including responsibility to make servicing advances. Following is a summary of ESS: Quarter ended September 30, Nine months ended September 30, 2018 2017 2018 2017 (in thousands) Balance at beginning of period $ 229,470 $ 261,796 $ 236,534 $ 288,669 Issuances of excess servicing spread to PennyMac Mortgage Investment Trust pursuant to recapture agreement 499 1,207 1,983 4,160 Accrual of interest 3,740 3,998 11,584 13,011 Repayment (11,543) (13,410) (35,852) (42,320) Change in fair value 1,109 (4,828) 9,026 (14,757) Balance at end of period $ 223,275 $ 248,763 $ 223,275 $ 248,763

Liability for Losses Under Repr

Liability for Losses Under Representations and Warranties	9 Months Ended
	Sep. 30, 2018
Liability for Losses Under Representations and Warranties
Liability for Losses Under Representations and Warranties	Note 12—Liability for Losses Under Representations and Warranties Following is a summary of the Company’s liability for losses under representations and warranties: Quarter ended September 30, Nine months ended September 30, 2018 2017 2018 2017 (in thousands) Balance at beginning of period $ 20,587 $ 19,568 $ 20,053 $ 19,067 Provision for losses on mortgage loans sold: Resulting from sales of mortgage loans 1,842 1,596 4,550 4,294 Reduction in liability due to change in estimate (1,155) (1,194) (3,627) (3,086) (Incurred losses) recoveries , net (252) (297) 46 (602) Balance at end of period $ 21,022 $ 19,673 $ 21,022 $ 19,673 Unpaid principal balance of mortgage loans subject to representations and warranties at end of period $ 139,315,779 $ 114,531,205

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2018
Income Taxes
Income Taxes	Note 13—Income Taxes The Company’s effective income tax rates were 9.0% and 12.4% for the quarter ended September 30, 2018 and 2017, respectively, and 8.6% and 12.4% for the nine months ended September 30, 2018 and 2017, respectively. The lower effective tax rate for 2018 reflects the effect of the change in the federal statutory tax rate from 35% to 21%, resulting from the December 22, 2017 enactment of the Tax Cuts and Jobs Act (the “Tax Act”). 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. Upon completion of the Reorganization of the Company on November 1, 2018, pursuant to which the noncontrolling interests were converted to common stock of New PFSI (as defined in Note 24‒Subsequent Events ), the new parent company, the Company no longer has noncontrolling interests to allocate income to and its effective income tax rate will be increased to a level that more closely approximates the combined federal and state statutory rates.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2018
Commitments and Contingencies.
Commitments and Contingencies	Note 14—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, 2018, 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. Regulatory Matters The Company and/or its subsidiaries are subject to various state and federal regulations related to its loan production and servicing operations, as well as regulations by various federal agencies, such as the BCFP, HUD, and the Federal Housing Administration. The Company and/or its subsidiaries are also subject to certain requirements by the Agencies to which it sells loans and for which it performs loan servicing activities. As the result, the Company may become involved in information-gathering requests, reviews, investigations and proceedings (both formal and informal) by the various federal, state and local regulatory bodies. Commitments to Purchase and Fund Mortgage Loans The Company’s commitments to purchase and fund mortgage loans totaled $3.4 billion as of September 30, 2018. Leases The Company leases office facilities. Rent expense was $3.7 million and $3.0 million for the quarters ended September 30, 2018 and 2017, respectively and $10.3 million and $8.8 million for the nine months ended September 30, 2018 and 2017, respectively. The following table provides a summary of future minimum lease payments required under lease agreements as of September 30, 2018: Twelve months ended September 30, Future minimum lease payments (in thousands) 2019 $ 15,243 2020 15,367 2021 12,967 2022 10,487 2023 9,572 Thereafter 25,538 $ 89,174 Commitment to Make Distributions to PennyMac Owners Under the terms of its Limited Liability Company Agreement, PennyMac is required to make cash distributions to the Company’s noncontrolling interest holders in amounts sufficient to allow such noncontrolling interest holders to pay federal and state taxes on their allocable share of PennyMac taxable income. Such distributions are calculated and, if required, made quarterly.

Stockholders' Equity

Stockholders' Equity	9 Months Ended
	Sep. 30, 2018
Stockholders' Equity.
Stockholders' Equity	Note 15—Stockholders’ Equity In June 2017, the Company’s board of directors authorized a stock repurchase program (“Repurchase Program”) under which the Company may repurchase up to $50 million of its outstanding Class A common stock. The following table summarizes the Company’s stock repurchase activity: Quarter ended September 30, Nine months ended September 30, Cumulative 2018 2017 2018 2017 total (1) (in thousands) Shares of Class A common stock repurchased — 505 236 505 741 Cost of shares of Class A common stock repurchased $ — $ 8,599 $ 4,826 $ 8,599 $ 13,425 (1) Amounts represent the total shares of Class A common stock repurchased under the Repurchase Program through September 30, 2018. The shares of repurchased Class A common stock were canceled upon settlement of the repurchase transactions and returned to the authorized but unissued common stock pool.

Noncontrolling Interest

Noncontrolling Interest	9 Months Ended
	Sep. 30, 2018
Noncontrolling Interest.
Noncontrolling Interest	Note 16—Noncontrolling Interest Net income attributable to the Company’s common stockholders and the effects of changes in noncontrolling ownership interest in PennyMac are summarized below: Quarter ended September 30, Nine months ended September 30, 2018 2017 2018 2017 (in thousands) Net income attributable to PennyMac Financial Services, Inc. common stockholders $ 14,489 $ 17,081 $ 48,945 $ 38,439 Increase in the Company's additional paid-in capital for exchanges of Class A units of Private National Mortgage Acceptance Company, LLC to Class A common stock of PennyMac Financial Services, Inc. $ 4,377 $ 3,656 $ 32,501 $ 20,583 Shares of Class A common stock of PennyMac Financial Services, Inc. issued pursuant to exchange of Class A units of Private National Mortgage Acceptance Company, LLC by noncontrolling interest unitholders and issued as equity compensation 131 251 1,616 1,297 September 30, December 31, 2018 2017 Percentage of noncontrolling interest in Private National Mortgage Acceptance Company, LLC 67.5 % 69.2 %

Net Gains on Mortgage Loans Hel

Net Gains on Mortgage Loans Held for Sale	9 Months Ended
	Sep. 30, 2018
Net Gains on Mortgage Loans Held for Sale
Net Gains on Mortgage Loans Held for Sale	Note 17—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, 2018 2017 2018 2017 (in thousands) From non-affiliates: Cash (loss) gain: Mortgage loans $ (107,414) $ (40,747) $ (399,457) $ (98,408) Hedging activities (2,507) (14,592) 89,322 (8,168) (109,921) (55,339) (310,135) (106,576) Non-cash gain: Mortgage servicing rights and mortgage servicing liabilities resulting from mortgage loan sales 147,259 154,763 443,056 419,968 Provision for losses relating to representations and warranties: Pursuant to mortgage loan sales (1,842) (1,596) (4,550) (4,294) Reduction in liability due to change in estimate 1,155 1,194 3,627 3,086 Change in fair value relating to mortgage loans and hedging derivatives held at quarter end: Interest rate lock commitments (18,526) 8,226 (21,109) (5,008) Mortgage loans 6,897 3,376 21,407 (2,554) Hedging derivatives 13,327 (12,389) 11,100 (19,023) 38,349 98,235 143,396 285,599 From PennyMac Mortgage Investment Trust 18,565 9,901 45,878 7,584 $ 56,914 $ 108,136 $ 189,274 $ 293,183

Net Interest Income (Expense)

Net Interest Income (Expense)	9 Months Ended
	Sep. 30, 2018
Net Interest Income (Expense)
Net Interest Income (Expense)	Note 18—Net Interest Income (Expense) Net interest income (expense) is summarized below: Quarter ended September 30, Nine months ended September 30, 2018 2017 2018 2017 (in thousands) Interest income: From non-affiliates: Short-term investments $ 814 $ 733 $ 2,001 $ 1,727 Mortgage loans held for sale at fair value 34,941 28,199 95,982 68,528 Placement fees relating to custodial funds 23,397 13,394 55,014 27,073 59,152 42,326 152,997 97,328 From PennyMac Mortgage Investment Trust—Assets purchased from PennyMac Mortgage Investment Trust under agreements to resell 1,812 2,116 5,686 5,946 60,964 44,442 158,683 103,274 Interest expense: To non-affiliates: Assets sold under agreements to repurchase (1) 4,676 19,203 15,943 52,249 Mortgage loan participation purchase and sale agreements 2,533 1,484 6,450 3,780 Notes payable 21,369 11,747 55,939 24,746 Obligations under capital lease 122 205 444 585 Interest shortfall on repayments of mortgage loans serviced for Agency securitizations 4,883 4,602 14,259 11,529 Interest on mortgage loan impound deposits 1,452 1,253 3,517 2,943 35,035 38,494 96,552 95,832 To PennyMac Mortgage Investment Trust—Excess servicing spread financing at fair value 3,740 3,998 11,584 13,011 38,775 42,492 108,136 108,843 $ 22,189 $ 1,950 $ 50,547 $ (5,569) (1) In 2017, the Company entered into a master repurchase agreement that provides the Company with incentives to finance mortgage loans approved for satisfying certain consumer relief characteristics as provided in the agreement. The Company included $12.8 million and $35.5 million of such incentives as a reduction in Interest expense during the quarter and nine months ended September 30, 2018, respectively. The master repurchase agreement is subject to a rolling six-month term through August 21, 2019, unless terminated earlier at the option of the lender. There can be no assurance that the lender will not terminate this agreement before its stated maturity.

Stock-based Compensation

Stock-based Compensation	9 Months Ended
	Sep. 30, 2018
Stock-based Compensation
Stock-based Compensation	Note 19—Stock-based Compensation As of September 30, 2018, the Company had one stock-based compensation plan. Following is a summary of the stock-based compensation activity: Quarter ended September 30, Nine months ended September 30, 2018 2017 2018 2017 (in thousands) Grants: Units: Performance-based RSUs — — 524 694 Stock options — — 674 861 Time-based RSUs 5 3 321 408 Grant date fair value: Performance-based RSUs $ — $ — $ 12,791 $ 12,512 Stock options — — 6,147 5,772 Time-based RSUs 100 58 7,803 7,359 Total $ 100 $ 58 $ 26,741 $ 25,643 Vestings and exercises: Performance-based RSUs vested — — 774 446 Stock options exercised 55 9 285 34 Time-based RSUs vested 1 4 245 165 Compensation expense $ 8,532 $ 4,243 $ 20,766 $ 14,633 The performance-based RSUs provide for the issuance of shares of the Company’s Class A common stock based on the attainment of earnings per share and/or return on equity target performance goals and are subject to adjustment based on individual performance of the grantees. The satisfaction of the performance goals and issuance of shares are approved by the compensation committee of the Company’s board of directors.

Earnings Per Share of Common St

Earnings Per Share of Common Stock	9 Months Ended
	Sep. 30, 2018
Earnings Per Share of Common Stock
Earnings Per Share of Common Stock	Note 20—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 dilutive shares of common stock were issued. Potentially dilutive shares of common stock include non-vested stock-based compensation awards and PennyMac Class A units. The Company applies the treasury stock method to determine the diluted weighted average shares of common stock outstanding represented by the non-vested stock-based compensation awards. The diluted earnings per share calculation includes an evaluation of whether the exchange of PennyMac Class A units for shares of common stock is dilutive. Accordingly, in this evaluation, 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 that would be applicable to such earnings. The following table summarizes the basic and diluted earnings per share calculations: Quarter ended September 30, Nine months ended September 30, 2018 2017 2018 2017 (in thousands, except per share amounts) Basic earnings per share of common stock: Net income attributable to common stockholders $ 14,489 $ 17,081 $ 48,945 $ 38,439 Weighted average shares of common stock outstanding 25,125 23,426 24,644 23,147 Basic earnings per share of common stock $ 0.58 $ 0.73 $ 1.99 $ 1.66 Diluted earnings per share of common stock: Net income attributable to common stockholders $ 14,489 $ 17,081 $ 48,945 $ 38,439 Net income attributable to dilutive stock-based compensation units 552 888 2,435 1,816 Effect of net income attributable to PennyMac Class A units exchangeable to Class A common stock, net of income taxes 29,580 37,996 101,921 86,473 Net income attributable to common stockholders for diluted earnings per share $ 44,621 $ 55,965 $ 153,301 $ 126,728 Weighted average shares of common stock outstanding applicable to basic earnings per share 25,125 23,426 24,644 23,147 Effect of dilutive shares: Common shares issuable under stock-based compensation plan 1,476 1,751 1,818 1,684 PennyMac Class A units exchangeable to Class A common stock 52,312 53,239 52,492 53,400 Weighted average shares of common stock applicable to diluted earnings per share 78,913 78,416 78,954 78,231 Diluted earnings per share of common stock $ 0.57 $ 0.71 $ 1.94 $ 1.62 Calculations of diluted earnings per share require certain potentially dilutive shares to be excluded when their inclusion in the diluted earnings per share calculation would be anti-dilutive. The following table summarizes the weighted-average number of anti-dilutive restricted stock units (“RSUs”) and stock options excluded from the calculation of diluted earnings per share: Quarter ended September 30, Nine months ended September 30, 2018 2017 2018 2017 (in thousands except for weighted-average exercise price) Performance-based RSUs (1) 1,172 — 1,060 475 Time-based RSUs 86 1 68 1 Stock options (2) 1,208 2,622 705 2,434 Total anti-dilutive stock-based compensation units 2,466 2,623 1,833 2,910 Weighted average exercise price of anti-dilutive stock options (2) $ 17.79 $ 16.39 $ 17.79 $ 16.39 (1) Certain performance-based RSUs were outstanding but not included in the computation of earnings per share because the performance thresholds included in such RSUs have not been achieved. (2) Certain stock options were outstanding but not included in the computation of diluted earnings per share because the weighted-average exercise prices were above the average stock price for the period.

Supplemental Cash Flow Informat

Supplemental Cash Flow Information	9 Months Ended
	Sep. 30, 2018
Supplemental Cash Flow Information
Supplemental Cash Flow Information	Note 21—Supplemental Cash Flow Information Nine months ended September 30, 2018 2017 (in thousands) Cash paid for interest $ 123,622 $ 115,710 (Refunds received) cash paid for income taxes, net $ (1,541) $ 41 Non-cash investing activity: Mortgage servicing rights resulting from mortgage loan sales $ 448,604 $ 431,908 Mortgage servicing liabilities resulting from mortgage loan sales $ 5,548 $ 11,940 Unsettled portion of MSR acquisitions $ 13,501 $ 16,364 Non-cash financing activity: Transfer of E xcess servicing spread payable to PennyMac Mortgage Investment Trust pursuant to a recapture agreement $ 1,983 $ 4,160 Issuance of Class A common stock in settlement of director fees $ 245 $ 253

Regulatory Capital and Liquidit

Regulatory Capital and Liquidity Requirements	9 Months Ended
	Sep. 30, 2018
Regulatory Capital and Liquidity Requirements
Regulatory Capital and Liquidity Requirements	Note 22—Regulatory Capital and Liquidity Requirements The Company, through PLS and PennyMac, is required to maintain specified levels of equity and liquid assets to remain a seller/servicer in good standing with the Agencies. Such equity and liquid asset requirements generally are tied to the size of the Company’s loan servicing portfolio or loan origination volume. The Company is subject to financial eligibility requirements for sellers/servicers eligible to sell or service mortgage loans with Fannie Mae and Freddie Mac. The eligibility requirements include tangible net worth of $2.5 million plus 25 basis points of the Company’s total 1-4 unit mortgage loan servicing portfolio, excluding mortgage loans subserviced for others and a liquidity requirement equal to 3.5 basis points of the aggregate UPB serviced for the Agencies plus 200 basis points of total nonperforming Agency servicing UPB in excess of 6.0%. The Company is also subject to financial eligibility requirements for Ginnie Mae single-family issuers. The eligibility requirements include net worth of $2.5 million plus 35 basis points of PLS' outstanding Ginnie Mae single-family obligations and a liquidity requirement equal to the greater of $1.0 million or 10 basis points of PLS' outstanding Ginnie Mae single-family securities. The Agencies’ capital and liquidity requirements, the calculations of which are specified by each Agency, are summarized below: September 30, 2018 December 31, 2017 Agency–company subject to requirement Actual (1) Requirement (1) Actual (1) Requirement (1) (dollars in thousands) Capital Fannie Mae & Freddie Mac – PLS $ 1,749,912 $ 495,694 $ 1,561,977 $ 429,671 Ginnie Mae – PLS $ 1,520,550 $ 698,354 $ 1,307,580 $ 674,133 Ginnie Mae – PennyMac $ 1,755,669 $ 768,190 $ 1,511,201 $ 741,574 HUD – PLS $ 1,520,550 $ 2,500 $ 1,307,580 $ 2,500 Liquidity Fannie Mae & Freddie Mac – PLS $ 243,827 $ 68,224 $ 196,415 $ 58,754 Ginnie Mae – PLS $ 243,827 $ 181,852 $ 196,415 $ 153,431 Tangible net worth / Total assets ratio Fannie Mae & Freddie Mac – PLS 22 % 6 % % % (1) Calculated in compliance with the respective Agency’s requirements. Noncompliance with an Agency’s requirements can result in such Agency taking various remedial actions up to and including terminating PennyMac’s ability to sell loans to and service loans on behalf of the respective Agency.

Segments and Related Informatio

Segments and Related Information	9 Months Ended
	Sep. 30, 2018
Segments and Related Information
Segments and Related Information	Note 23—Segments and Related Information The Company operates in three segments: production, servicing and investment management. Two of the segments are in the mortgage banking business: production and servicing. The production segment performs mortgage loan origination, acquisition and sale activities. The servicing segment performs servicing of newly originated mortgage loans, execution and management of early buyout transactions and servicing of mortgage loans sourced and managed by the investment management segment for PMT, 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 production activities for PMT and managing the acquired assets for PMT. Financial performance and results by segment are as follows: Quarter ended September 30, 2018 Mortgage Banking Investment Production Servicing Total Management Total (in thousands) Revenue: (1) Net mortgage loan servicing fees $ — $ 109,703 $ 109,703 $ — $ 109,703 Net gains on mortgage loans held for sale at fair value 34,947 21,967 56,914 — 56,914 Mortgage loan origination fees 26,485 — 26,485 — 26,485 Fulfillment fees from PennyMac Mortgage Investment Trust 26,256 — 26,256 — 26,256 Net interest income (expense): Interest income 17,013 43,935 60,948 16 60,964 Interest expense 1,274 37,491 38,765 10 38,775 15,739 6,444 22,183 6 22,189 Management fees — — — 6,471 6,471 Carried Interest from Investment Funds — — — (17) (17) Other 645 805 1,450 1,478 2,928 Total net revenue 104,072 138,919 242,991 7,938 250,929 Expenses 78,405 105,346 183,751 5,481 189,232 Income before provision for income taxes $ 25,667 $ 33,573 $ 59,240 $ 2,457 $ 61,697 Segment assets at quarter end (2) $ 2,168,126 $ 4,812,898 $ 6,981,024 $ 11,996 $ 6,993,020 (1) All revenues are from external customers. (2) Excludes parent Company assets, which consist primarily of working capital of $1.8 million and includes receivable from parent Company of $2.3 million. Quarter ended September 30, 2017 Mortgage Banking Investment Production Servicing Total Management Total (in thousands) Revenue: (1) Net mortgage loan servicing fees $ — $ 78,081 $ 78,081 $ — $ 78,081 Net gains on mortgage loans held for sale at fair value 79,983 28,153 108,136 — 108,136 Mortgage loan origination fees 33,168 — 33,168 — 33,168 Fulfillment fees from PennyMac Mortgage Investment Trust 23,507 — 23,507 — 23,507 Net interest income (expense): Interest income 17,651 26,791 44,442 — 44,442 Interest expense 12,355 30,124 42,479 13 42,492 5,296 (3,333) 1,963 (13) 1,950 Management fees — — — 6,216 6,216 Carried Interest from Investment Funds — — — (1,158) (1,158) Other 235 525 760 (25) 735 Total net revenue 142,189 103,426 245,615 5,020 250,635 Expenses 73,231 78,955 152,186 4,305 156,491 Income before provision for income taxes $ 68,958 $ 24,471 $ 93,429 $ 715 $ 94,144 Segment assets at quarter end (2) $ 2,737,666 $ 3,628,689 $ 6,366,355 $ 20,369 $ 6,386,724 (1) All revenues are from external customers. (2) Excludes parent Company assets, which consist primarily of working capital of $1.6 million. Nine months ended September 30, 2018 Mortgage Banking Investment Production Servicing Total Management Total (in thousands) Revenue: (1) Net mortgage loan servicing fees $ — $ 340,181 $ 340,181 $ — $ 340,181 Net gains on mortgage loans held for sale at fair value 105,111 84,163 189,274 — 189,274 Mortgage loan origination fees 75,476 — 75,476 — 75,476 Fulfillment fees from PennyMac Mortgage Investment Trust 52,759 — 52,759 — 52,759 Net interest income (expense): Interest income 48,135 110,532 158,667 16 158,683 Interest expense 4,401 103,694 108,095 41 108,136 43,734 6,838 50,572 (25) 50,547 Management fees — — — 17,910 17,910 Carried Interest from Investment Funds — — — (365) (365) Other 1,497 1,928 3,425 4,221 7,646 Total net revenue 278,577 433,110 711,687 21,741 733,428 Expenses 216,722 290,094 506,816 17,221 524,037 Income before provision for income taxes $ 61,855 $ 143,016 $ 204,871 $ 4,520 $ 209,391 Segment assets at period end (2) $ 2,168,126 $ 4,812,898 $ 6,981,024 $ 11,996 $ 6,993,020 (1) All revenues are from external customers. (2) Excludes parent Company assets, which consist primarily of working capital of $1.8 million and includes receivable from parent Company of $2.3 million. Nine months ended September 30, 2017 Mortgage Banking Investment Production Servicing Total Management Total (in thousands) Revenue: (1) Net mortgage loan servicing fees $ — $ 199,157 $ 199,157 $ — $ 199,157 Net gains on mortgage loans held for sale at fair value 217,526 75,657 293,183 — 293,183 Mortgage loan origination fees 88,935 — 88,935 — 88,935 Fulfillment fees from PennyMac Mortgage Investment Trust 61,184 — 61,184 — 61,184 Net interest income (expense): Interest income 45,866 57,408 103,274 — 103,274 Interest expense 32,507 76,299 108,806 37 108,843 13,359 (18,891) (5,532) (37) (5,569) Management fees — — — 17,597 17,597 Carried Interest from Investment Funds — — — (1,045) (1,045) Other 1,711 1,442 3,153 234 3,387 Total net revenue 382,715 257,365 640,080 16,749 656,829 Expenses 199,547 230,691 430,238 12,455 442,693 Income before provision for income taxes $ 183,168 $ 26,674 $ 209,842 $ 4,294 $ 214,136 Segment assets at period end (2) $ 2,737,666 $ 3,628,689 $ 6,366,355 $ 20,369 $ 6,386,724 (1) All revenues are from external customers. (2) Excludes parent Company assets, which consist primarily of working capital of $1.6 million.

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2018
Subsequent Events
Subsequent Events	Note 24—Subsequent Events Management has evaluated all events and transactions through the date the Company issued these consolidated financial statements. During this period: · On November 1, 2018, the Company completed a reorganization (the “Reorganization) by which it changed its equity structure to a single class of common stock held by all stockholders, as opposed to the two classes of common stock, Class A and Class B, that were in place as of September 30, 2018. Pursuant to the Reorganization, New PennyMac Financial Services, Inc. (“New PFSI”) become a holding corporation, which subsequently changed its name to “PennyMac Financial Services, Inc.” while PFSI changed its name to “PNMAC Holdings, Inc.”. As a result of the Reorganization: o Each outstanding share of Class A common stock of PFSI was converted on a one-for-one basis into shares of New PFSI common stock. o Each outstanding share of Class B common stock of PFSI was cancelled for no consideration. o Each Class A unit of PennyMac held by a PennyMac Class A unit holder was contributed to PFSI and exchanged on a one-for-one basis for shares of New PFSI common stock. o New PFSI assumed PFSI’s existing equity incentive plan—including all performance share awards, restricted share awards, restricted stock units and other incentive awards covering shares of PFSI’s Class A common stock, whether vested or not vested, that were outstanding at the effective time of the Reorganization. New PFSI reserved the same number of shares of its common stock as was reserved by the Company before the effective time of the reorganization, and the terms and conditions that were in effect immediately before the reorganization under each outstanding incentive award assumed by New PFSI continue in full force and effect after the reorganization, except that the shares of Class A common stock reserved under PFSI’s plans and issuable under each such award will be replaced by shares of common stock of New PFSI. o PFSI’s existing directors and executive officers hold the same positions with New PFSI. o New PFSI replaced PFSI as the publicly-held entity and, through its subsidiaries, conducts all of the operations previously conducted by PFSI. o The Reorganization is intended to be treated as an integrated transaction that qualifies as a reorganization within the meaning of Section 368(a) of the Internal Revenue Code and/or a transfer described in Section 351(a) of the Internal Revenue Code. o After the completion of the Reorganization, PFSI became a consolidated subsidiary of New PFSI and is considered the predecessor of New PFSI for accounting purposes. Accordingly, PFSI’s consolidated financial statements will be New PFSI’s historical financial statements. · On November 1, 2018, New PFSI, through its subsidiary, PennyMac (the “Borrower”), entered into amendments (the "Amendments") to that certain (i) amended and restated credit agreement, dated as of November 18, 2016, by and among the Borrower, the lenders that are parties thereto and Credit Suisse AG, as administrative agent and collateral agent, and Credit Suisse Securities (USA) LLC, as sole bookrunner and sole lead arranger (the “Credit Agreement”); and (ii) amended and restated collateral and guaranty agreement, dated as of November 18, 2016, by and among the Borrower, as grantor, Credit Suisse AG, Cayman Islands Branch, as collateral agent, and PNMAC Holdings, Inc. (formerly known as PennyMac Financial Services, Inc., “Holdings”) and certain of its subsidiaries, PCM, PLS and PNMAC Opportunity Fund Associates, LLC ("Associates"), as guarantors and grantors (“the “Guaranty”). Pursuant to the Credit Agreement, the lenders have agreed to make revolving loans to the Borrower in an amount not to exceed $150 million. Interest on the loans shall accrue at a per annum rate of interest equal to, at the election of the Borrower, either an alternate base rate (as defined in the Credit Agreement) or LIBOR plus the applicable margin. During the existence of certain events of default, interest shall accrue at a higher default rate. The proceeds of the loans are to be used solely for working capital and general corporate purposes of the Borrower and its subsidiaries. The primary purposes of the Amendments are to (i) extend the maturity date of the Credit Agreement to October 31, 2019; (ii) name the Company as an additional guarantor under the Credit Agreement; and (iii) release Associates from its obligations as a guarantor under the Credit Agreement. Accordingly, the obligations of the Borrower under the Credit Agreement are now guaranteed by New PFSI, Holdings, PCM and PLS, and secured by a grant by each of the referenced grantors of its respective right, title and interest in and to limited and otherwise unencumbered (other than specified permitted encumbrances) specified contract rights, specified deposit accounts, all documents and instruments related to such specified contract rights and specified deposit accounts, and any and all proceeds and products thereof. All other terms and conditions of the Credit Agreement and Guaranty remain the same in all material respects. · On October 29, 2018, the Company, through two of its indirect controlled subsidiaries, PLS and PNMAC, entered into an Amended and Restated Master Repurchase Agreement, by and among Bank of America, N.A., as buyer (“BANA”), as administrative agent, swing line provider, sole lead arranger, sole bookrunner and a buyer, Capital One, National Association, as a buyer, The Bank of New York Mellon, as a buyer, (collectively, the “Syndicated Buyers”), PLS, as seller, and PNMAC, as guarantor (the “Syndicated Repurchase Agreement”). The Syndicated Repurchase Agreement amends and restates the terms of that certain master repurchase agreement, dated as of March 17, 2011, by and among BANA, PLS, and PNMAC. Pursuant to the terms of the Syndicated Repurchase Agreement, PLS may sell to, and later repurchase from, the Syndicated Buyers certain newly originated mortgage loans that are originated by PLS or purchased by it from correspondent sellers through a subsidiary of PMT and, in either case, held by PLS pending sale and/or securitization. The obligations of PLS under the Syndicated Repurchase Agreement are fully guaranteed by PNMAC and the mortgage loans are serviced by PLS. The scheduled termination date of the Syndicated Repurchase Agreement is October 28, 2019. Each Syndicated Buyer has severally committed to enter into transactions up to such Syndicated Buyer’s committed amount as set forth in the Syndicated Repurchase Agreement, with a maximum aggregate committed principal amount available to PLS for purchases of $500 million. · During October 2018, the Company acquired from two non-affiliate sellers bulk portfolios of Ginnie Mae MSRs with a total UPB of approximately $3.2 billion. · All other agreements to sell assets under agreements to repurchase that matured between September 30, 2018 and the date of this Report were extended or renewed.

Basis of Presentation and Acc_2

Basis of Presentation and Accounting Developments (Tables)	9 Months Ended
	Sep. 30, 2018
ASU 2014-09
Recently Issued Accounting Pronouncements
Schedule of adoption of new Accounting Standard Update	Quarter ended Nine months ended Income statement line September 30, 2018 September 30, 2018 (in thousands) Occupancy and equipment $ 718 $ 1,954 Technology 315 837 Compensation 120 360 Other 177 596 Total expense reimbursements included in Other revenue $ 1,330 $ 3,747
ASU 2016-18
Recently Issued Accounting Pronouncements
Schedule of adoption of new Accounting Standard Update	As previously Effect of adoption reported of ASU 2016-18 As reported (in thousands) Cash flow from operating activities $ (646,441) $ $ (646,266) Cash and restricted cash at end of period $ 67,708 $ $ 68,158

Transactions with Affiliates (T

Transactions with Affiliates (Tables)	9 Months Ended
	Sep. 30, 2018
PMT
Transactions with Affiliates
Summary of lending activity between the Company and affiliate	Quarter ended September 30, Nine months ended September 30, 2018 2017 2018 2017 (in thousands) Net gains on mortgage loans held for sale at fair value: Net gains on mortgage loans held for sale to PMT $ 19,722 $ 11,396 $ 49,396 $ 12,280 Mortgage servicing rights and excess servicing spread recapture incurred (1,157) (1,495) (3,518) (4,696) $ 18,565 $ 9,901 $ 45,878 $ 7,584 Sale of mortgage loans held for sale to PMT $ 908,525 $ 332,886 $ 2,336,162 $ 373,108 Fulfillment fee revenue $ 26,256 $ 23,507 $ 52,759 $ 61,184 Unpaid principal balance of mortgage loans fulfilled for PMT subject to fulfillment fees $ 7,517,883 $ 6,530,036 $ 17,139,884 $ 17,079,969 Sourcing fees paid to PMT $ 2,689 $ 3,275 $ 8,221 $ 9,340 Unpaid principal balance of mortgage loans purchased from PMT $ 8,916,654 $ 10,915,194 $ 27,404,022 $ 31,131,154 Tax service fees received from PMT included in Mortgage loan origination fees $ 2,119 $ 2,108 $ 4,869 $ 5,377 Early purchase program fees earned from PMT included in Mortgage loan servicing fees $ — $ 1 $ — $ 7
Summary of mortgage loan servicing fees earned from PMT	Quarter ended September 30, Nine months ended September 30, 2018 2017 2018 2017 (in thousands) Mortgage loans acquired for sale at fair value: Base and supplemental $ 98 $ 88 $ 250 $ 235 Activity-based 218 188 489 507 316 276 739 742 Mortgage loans at fair value: Base and supplemental 614 1,571 2,328 5,284 Activity-based 657 2,702 3,200 6,859 1,271 4,273 5,528 12,143 Mortgage servicing rights: Base and supplemental 8,326 6,702 23,875 18,727 Activity-based 158 151 379 375 8,484 6,853 24,254 19,102 $ 10,071 $ 11,402 $ 30,521 $ 31,987 Property management fees received from PMT included in Other income $ 122 $ 95 $ 333 $ 261
Summary of management fees earned	Quarter ended September 30, Nine months ended September 30, 2018 2017 2018 2017 (in thousands) Base management $ 5,799 $ 6,038 $ 17,223 $ 16,380 Performance incentive 683 — 683 304 $ 6,482 $ 6,038 $ 17,906 $ 16,684
Summary of reimbursement of expenses	Quarter ended September 30, Nine months ended September 30, 2018 2017 2018 2017 (in thousands) Reimbursement of: Common overhead incurred by the Company (1) $ 1,210 $ 1,193 $ 3,387 $ 4,220 Compensation (1) 120 — 360 — Expenses incurred on (the Company's) PMT's behalf, net 527 196 586 849 $ 1,857 $ 1,389 $ 4,333 $ 5,069 Payments and settlements during the quarter (2) $ 21,650 $ 22,786 $ 45,265 $ 63,249 (1) The Company adopted ASU 2014-09 using the modified retrospective method effective January 1, 2018. Adoption of ASU 2014-09 using the modified retrospective method required the Company to include those reimbursements from PMT in Other revenue starting January 1, 2018. (2) 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 investing activity between the Company and affiliate	Quarter ended September 30, Nine months ended September 30, 2018 2017 2018 2017 (in thousands) Interest income relating to Assets purchased from PennyMac Mortgage Investment Trust under agreements to resell $ 1,812 $ 2,116 $ 5,686 $ 5,946 Common shares of beneficial interest of PennyMac Mortgage Investment Trust: Dividends received $ 35 $ 35 $ 106 $ 106 Change in fair value of investment 94 (68) 313 76 $ 129 $ (33) $ 419 $ 182 September 30, December 31, 2018 2017 (in thousands) Assets purchased from PennyMac Mortgage Investment Trust under agreements to resell $ 133,128 $ 144,128 Common shares of beneficial interest of PennyMac Mortgage Investment Trust: Fair value $ 1,518 $ 1,205 Number of shares 75 75
Summary of financing activity between the Company and affiliate	Quarter ended September 30, Nine months ended September 30, 2018 2017 2018 2017 (in thousands) Excess servicing spread financing: Issuance pursuant to recapture agreement $ 499 $ 1,207 $ 1,983 $ 4,160 Repayment $ 11,543 $ 13,410 $ 35,852 $ 42,320 Change in fair value $ 1,109 $ (4,828) $ 9,026 $ (14,757) Interest expense $ 3,740 $ 3,998 $ 11,584 $ 13,011 Recapture incurred pursuant to refinancings by the Company of mortgage loans subject to excess servicing spread financing included in Net gains on mortgage loans held for sale at fair value $ 597 $ 1,163 $ 1,951 $ 3,837 September 30, December 31, 2018 2017 (in thousands) Excess servicing spread financing at fair value $ 223,275 $ 236,534
Summary of amounts due from and payable to affiliate	September 30, December 31, 2018 2017 (in thousands) Receivable from PMT: Fulfillment fees $ 12,078 $ 346 Management fees 6,482 5,901 Servicing fees 3,765 6,583 Allocated expenses and expenses incurred on PMT's behalf 2,295 11,542 Correspondent production fees 1,864 1,735 Conditional Reimbursement 870 870 Interest on assets purchased under agreements to resell 113 142 $ 27,467 $ 27,119 Payable to PMT: Deposits made by PMT to fund servicing advances $ 89,467 $ 132,844 Mortgage servicing rights recapture payable 250 282 Other 2,101 3,872 $ 91,818 $ 136,998
Investment Funds
Transactions with Affiliates
Summary of amounts due from and payable to affiliate	December 31, 2017 (in thousands) Carried Interest due from Investment Funds: PNMAC Mortgage Opportunity Fund, LLC $ 6,389 PNMAC Mortgage Opportunity Fund Investors, LLC 2,163 $ 8,552 Receivable from Investment Funds: Mortgage loan servicing fee rebate deposit $ 300 Management fees 88 Expense reimbursements 27 Mortgage loan servicing fees 2 $ 417 Payable to Investment Funds: Deposits received to fund servicing advances $ 2,329 Other 98 $ 2,427

Loan Sales and Servicing Acti_2

Loan Sales and Servicing Activities (Tables)	9 Months Ended
	Sep. 30, 2018
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, 2018 2017 2018 2017 (in thousands) Cash flows: Sales proceeds $ 11,375,408 $ 13,600,232 $ 34,208,217 $ 38,097,411 Servicing fees received (1) $ 123,626 $ 97,312 $ 354,535 $ 272,303 Net servicing advances (recoveries) $ 4,147 $ (15,061) $ (20,572) $ (1,271) (1) Net of guarantee fees paid to the Agencies.
Summary of sale of loans between the Company and transferees upon sale of mortgage loans in transactions	September 30, December 31, 2018 2017 (in thousands) Unpaid principal balance of mortgage loans outstanding $ 139,305,079 $ 120,853,138 Delinquencies: 30-89 days $ 5,967,607 $ 5,097,688 90 days or more: Not in foreclosure $ 1,904,299 $ 2,303,114 In foreclosure $ 640,555 $ 606,744 Foreclosed $ 24,216 $ 30,310 Bankruptcy $ 889,814 $ 657,368
Summary of mortgage servicing portfolio	September 30, 2018 Contract Total Servicing servicing and mortgage rights owned subservicing loans serviced (in thousands) Investor: Non-affiliated entities: Originated $ 139,305,079 $ — $ 139,305,079 Purchased 55,619,760 — 55,619,760 194,924,839 — 194,924,839 Advised Entities — 87,226,461 87,226,461 Mortgage loans held for sale 2,352,771 — 2,352,771 $ 197,277,610 $ 87,226,461 $ 284,504,071 Subserviced for the Company (1) $ 6,459,716 $ — $ 6,459,716 Delinquent mortgage loans: 30 days $ 6,457,528 $ 596,202 $ 7,053,730 60 days 1,810,285 119,314 1,929,599 90 days or more: Not in foreclosure 2,805,375 255,766 3,061,141 In foreclosure 928,268 149,313 1,077,581 Foreclosed 35,604 193,401 229,005 $ 12,037,060 $ 1,313,996 $ 13,351,056 Bankruptcy $ 1,277,484 $ 116,207 $ 1,393,691 Custodial funds managed by the Company (2) $ 3,764,023 $ 1,203,229 $ 4,967,252 (1) Certain of the mortgage loans serviced by the Company are subserviced on the Company’s behalf by other mortgage loan servicers on a transitional basis when the Company has purchased the rights to service the loans but servicing of the loans has not yet been transferred to the Company’s servicing system. (2) Custodial funds include borrower and investor custodial cash accounts relating to mortgage loans serviced under servicing agreements and are not recorded on the Company’s consolidated balance sheets. The Company earns placement fees on certain of the custodial funds it manages on behalf of the mortgage loans’ investors, which are included in Interest income in the Company’s consolidated statements of income. December 31, 2017 Contract Total Servicing servicing and mortgage rights owned subservicing loans serviced (in thousands) Investor: Non-affiliated entities: Originated $ 120,853,138 $ — $ 120,853,138 Purchased 47,016,708 — 47,016,708 167,869,846 — 167,869,846 Advised Entities — 74,980,268 74,980,268 Mortgage loans held for sale 2,998,377 — 2,998,377 $ 170,868,223 $ 74,980,268 $ 245,848,491 Delinquent mortgage loans: 30 days $ 5,326,710 $ 515,922 $ 5,842,632 60 days 1,935,216 215,957 2,151,173 90 days or more: Not in foreclosure 3,690,159 541,945 4,232,104 In foreclosure 916,614 293,835 1,210,449 Foreclosed 41,244 278,890 320,134 $ 11,909,943 $ 1,846,549 $ 13,756,492 Bankruptcy $ 1,046,969 $ 176,324 $ 1,223,293 Custodial funds managed by the Company (1) $ 3,267,279 $ 901,041 $ 4,168,320 (1) Custodial funds include borrower and investor custodial cash accounts relating to mortgage loans serviced under servicing agreements and are not recorded on the Company’s consolidated balance sheets. The Company earns placement fees on certain of the custodial funds it manages on behalf of the mortgage loans’ investors, which are included in 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)	September 30, December 31, State 2018 2017 (in thousands) California $ 50,009,289 $ 45,621,369 Texas 23,023,181 19,741,970 Florida 21,006,280 17,490,194 Virginia 18,308,994 16,210,673 Maryland 13,176,658 11,350,939 All other states 158,979,669 135,433,346 $ 284,504,071 $ 245,848,491

Fair Value (Tables)

Fair Value (Tables)	9 Months Ended
	Sep. 30, 2018
Fair Value
Summary of financial statement items measured at estimated fair value on a recurring basis	September 30, 2018 Level 1 Level 2 Level 3 Total (in thousands) Assets: Short-term investments $ 145,476 $ — $ — $ 145,476 Mortgage loans held for sale at fair value — 2,051,652 365,303 2,416,955 Derivative assets: Interest rate lock commitments — — 41,075 41,075 Repurchase agreement derivatives — — 26,475 26,475 Forward purchase contracts — 821 — 821 Forward sales contracts — 16,892 — 16,892 MBS put options — 4,413 — 4,413 MBS call options — 12 — 12 Put options on interest rate futures purchase contracts 3,063 — — 3,063 Call options on interest rate futures purchase contracts 63 — — 63 Total derivative assets before netting 3,126 22,138 67,550 92,814 Netting — — — (19,196) Total derivative assets 3,126 22,138 67,550 73,618 Investment in PennyMac Mortgage Investment Trust 1,518 — — 1,518 Mortgage servicing rights at fair value — — 2,785,964 2,785,964 $ 150,120 $ 2,073,790 $ 3,218,817 $ 5,423,531 Liabilities: Excess servicing spread financing payable to PennyMac Mortgage Investment Trust at fair value $ — $ — $ 223,275 $ 223,275 Derivative liabilities: Interest rate lock commitments — — 3,912 3,912 Forward purchase contracts — 29,569 — 29,569 Forward sales contracts — 2,780 — 2,780 Total derivative liabilities before netting — 32,349 3,912 36,261 Netting — — — (23,568) Total derivative liabilities — 32,349 3,912 12,693 Mortgage servicing liabilities at fair value — — 9,769 9,769 $ — $ 32,349 $ 236,956 $ 245,737 December 31, 2017 Level 1 Level 2 Level 3 Total (in thousands) Assets: Short-term investments $ 170,080 $ — $ — $ 170,080 Mortgage loans held for sale at fair value — 2,316,892 782,211 3,099,103 Derivative assets: Interest rate lock commitments — — 60,012 60,012 Repurchase agreement derivatives — — 10,656 10,656 Forward purchase contracts — 4,288 — 4,288 Forward sales contracts — 2,101 — 2,101 MBS put options — 3,481 — 3,481 Put options on interest rate futures purchase contracts 3,570 — — 3,570 Call options on interest rate futures purchase contracts 938 — — 938 Total derivative assets before netting 4,508 9,870 70,668 85,046 Netting — — — (6,867) Total derivative assets 4,508 9,870 70,668 78,179 Investment in PennyMac Mortgage Investment Trust 1,205 — — 1,205 Mortgage servicing rights at fair value — — 638,010 638,010 $ 175,793 $ 2,326,762 $ 1,490,889 $ 3,986,577 Liabilities: Excess servicing spread financing payable to PennyMac Mortgage Investment Trust at fair value $ — $ — $ 236,534 $ 236,534 Derivative liabilities: Interest rate lock commitments — — 1,740 1,740 Forward purchase contracts — 1,272 — 1,272 Forward sales contracts — 7,031 — 7,031 Total derivative liabilities before netting — 8,303 1,740 10,043 Netting — — — (4,247) Total derivative liabilities — 8,303 1,740 5,796 Mortgage servicing liabilities at fair value — — 14,120 14,120 $ — $ 8,303 $ 252,394 $ 256,450
Summary of roll forward of items measured using Level 3 inputs on a recurring basis	Quarter ended September 30, 2018 Mortgage Net interest Repurchase Mortgage loans held rate lock agreement servicing for sale commitments (1) derivatives rights Total (in thousands) Assets: Balance, June 30, 2018 $ 334,166 $ 55,689 $ 25,781 $ 2,486,157 $ 2,901,793 Purchases and issuances, net 1,008,662 41,721 12,903 163,511 1,226,797 Sales and repayments (231,921) — (11,982) — (243,903) Mortgage servicing rights resulting from mortgage loan sales — — — 149,000 149,000 Changes in fair value included in income arising from: Changes in instrument-specific credit risk 84 — — — 84 Other factors — 10,696 (227) (12,704) (2,235) 84 10,696 (227) (12,704) (2,151) Transfers from Level 3 to Level 2 (744,324) — — — (744,324) Transfers to real estate acquired in settlement of loans (1,364) — — — (1,364) Transfers of interest rate lock commitments to mortgage loans held for sale — (70,943) — — (70,943) Balance, September 30, 2018 $ 365,303 $ 37,163 $ 26,475 $ 2,785,964 $ 3,214,905 Changes in fair value recognized during the quarter relating to assets still held at September 30, 2018 $ (4,811) $ 37,163 $ — $ (12,704) $ 19,648 (1) For the purpose of this table, the IRLC asset and liability positions are shown net. Quarter ended September 30, 2018 Excess servicing Mortgage spread servicing financing liabilities Total (in thousands) Liabilities: Balance, June 30, 2018 $ 229,470 $ 10,253 $ 239,723 Issuance of excess servicing spread financing pursuant to a recapture agreement with PennyMac Mortgage Investment Trust 499 — 499 Accrual of interest 3,740 — 3,740 Repayments (11,543) — (11,543) Mortgage servicing liabilities resulting from mortgage loan sales — 1,741 1,741 Changes in fair value included in income 1,109 (2,225) (1,116) Balance, September 30, 2018 $ 223,275 $ 9,769 $ 233,044 Changes in fair value recognized during the quarter relating to liabilities still outstanding at September 30, 2018 $ 1,109 $ (2,225) $ (1,116) Quarter ended September 30, 2017 Mortgage Net interest Repurchase Mortgage loans held rate lock agreement servicing for sale commitments (1) derivatives rights Total (in thousands) Assets: Balance, June 30, 2017 $ 380,084 $ 46,158 $ — $ 678,441 $ 1,104,683 Purchases and issuances, net 499,546 83,798 469 41 583,854 Sales and repayments (306,458) — — — (306,458) Interest rate lock commitments issued, net — — — — — Mortgage servicing rights resulting from mortgage loan sales — — — 5,773 5,773 Changes in fair value included in income arising from: Changes in instrument-specific credit risk (1,130) — — — (1,130) Other factors — 41,693 — (28,271) 13,422 (1,130) 41,693 — (28,271) 12,292 Transfers from Level 3 to Level 2 (195,802) — — — (195,802) Transfers of interest rate lock commitments to mortgage loans held for sale — (117,265) — — (117,265) Balance, September 30, 2017 $ 376,240 $ 54,384 $ 469 $ 655,984 $ 1,087,077 Changes in fair value recognized during the quarter relating to assets still held at September 30, 2017 $ (2,851) $ 54,384 $ — $ (28,271) $ 23,262 (1) For the purpose of this table, the IRLC asset and liability positions are shown net. Quarter ended September 30, 2017 Excess servicing Mortgage spread servicing financing liabilities Total (in thousands) Liabilities: Balance, June 30, 2017 $ 261,796 $ 18,295 $ 280,091 Issuance of excess servicing spread financing pursuant to a recapture agreement with PennyMac Mortgage Investment Trust 1,207 — 1,207 Accrual of interest 3,998 — 3,998 Repayments (13,410) — (13,410) Mortgage servicing liabilities resulting from mortgage loan sales — 4,071 4,071 Changes in fair value included in income (4,828) (6,290) (11,118) Balance, September 30, 2017 $ 248,763 $ 16,076 $ 264,839 Changes in fair value recognized during the quarter relating to liabilities still outstanding at September 30, 2017 $ (4,828) $ (6,290) $ (11,118) Nine months ended September 30, 2018 Mortgage Net interest Repurchase Mortgage loans held rate lock agreement servicing for sale commitments (1) derivatives rights Total (in thousands) Assets: Balance, December 31, 2017 $ 782,211 $ 58,272 $ 10,656 $ 638,010 $ 1,489,149 Reclassification of mortgage servicing rights previously accounted for under the amortization method pursuant to a change in accounting principle — — — 1,482,426 1,482,426 Balance, January 1, 2018 782,211 58,272 10,656 2,120,436 2,971,575 Purchases and issuances, net 2,480,523 157,649 36,624 193,640 2,868,436 Sales and repayments (1,122,448) — (19,460) — (1,141,908) Mortgage servicing rights resulting from mortgage loan sales — — — 448,604 448,604 Changes in fair value included in income arising from: Changes in instrument-specific credit risk (4,944) — — — (4,944) Other factors — (28,627) (1,345) 23,284 (6,688) (4,944) (28,627) (1,345) 23,284 (11,632) Transfers from Level 3 to Level 2 (1,765,854) — — — (1,765,854) Transfers to real estate acquired in settlement of loans (4,185) — — — (4,185) Transfers of interest rate lock commitments to mortgage loans held for sale — (150,131) — — (150,131) Balance, September 30, 2018 $ 365,303 $ 37,163 $ 26,475 $ 2,785,964 $ 3,214,905 Changes in fair value recognized during the period relating to assets still held at September 30, 2018 $ (4,912) $ 37,163 $ — $ 23,284 $ 55,535 (1) For the purpose of this table, the IRLC asset and liability positions are shown net. Nine months ended September 30, 2018 Excess servicing Mortgage spread servicing financing liabilities Total (in thousands) Liabilities: Balance, December 31, 2017 $ 236,534 $ 14,120 $ 250,654 Issuance of excess servicing spread financing pursuant to a recapture agreement with PennyMac Mortgage Investment Trust 1,983 — 1,983 Accrual of interest 11,584 — 11,584 Repayments (35,852) — (35,852) Mortgage servicing liabilities resulting from mortgage loan sales — 5,548 5,548 Changes in fair value included in income 9,026 (9,899) (873) Balance, September 30, 2018 $ 223,275 $ 9,769 $ 233,044 Changes in fair value recognized during the period relating to liabilities still outstanding at September 30, 2018 $ 9,026 $ (9,899) $ (873) Nine months ended September 30, 2017 Mortgage Net interest Repurchase Mortgage loans held rate lock agreement servicing for sale commitments (1) derivatives rights Total (in thousands) Assets: Balance December 31, 2016 $ 47,271 $ 59,391 $ — $ 515,925 $ 622,587 Purchases 1,815,509 226,617 469 183,830 2,226,425 Sales and repayments (845,318) — — — (845,318) Interest rate lock commitments issued, net — — — — — Mortgage servicing rights resulting from mortgage loan sales — — — 19,702 19,702 Changes in fair value included in income arising from: Changes in instrument-specific credit risk (6,104) — — — (6,104) Other factors — 99,425 — (63,473) 35,952 (6,104) 99,425 — (63,473) 29,848 Transfers from Level 3 to Level 2 (635,118) — — — (635,118) Transfers of interest rate lock commitments to mortgage loans held for sale — (331,049) — — (331,049) Balance, September 30, 2017 $ 376,240 $ 54,384 $ 469 $ 655,984 $ 1,087,077 Changes in fair value recognized during the year relating to assets still held at September 30, 2017 $ (3,733) $ 54,384 $ — $ (63,473) $ (12,822) (1) For the purpose of this table, the IRLC asset and liability positions are shown net. Nine months ended September 30, 2017 Excess servicing Mortgage spread servicing financing liabilities Total (in thousands) Liabilities: Balance December 31, 2016 $ 288,669 $ 15,192 $ 303,861 Issuance of excess servicing spread financing pursuant to a recapture agreement with PennyMac Mortgage Investment Trust 4,160 — 4,160 Accrual of interest 13,011 — 13,011 Repayments (42,320) — (42,320) Mortgage servicing liabilities resulting from mortgage loan sales — 11,940 11,940 Mortgage servicing liabilities assumed — — — Changes in fair value included in income (14,757) (11,056) (25,813) Balance, September 30, 2017 $ 248,763 $ 16,076 $ 264,839 Changes in fair value recognized during the year relating to liabilities still outstanding at September 30, 2017 $ (14,757) $ (11,056) $ (25,813)
Summary of net gains (losses) from changes in fair values included in earnings for financial statement items carried at fair value	Quarter ended September 30, 2018 2017 Net Net gains on Net Net gains on mortgage mortgage mortgage mortgage loan loans held loan loans held servicing for sale at servicing for sale at fees fair value Total fees fair value Total (in thousands) Assets: Mortgage loans held for sale at fair value $ — $ 67,709 $ 67,709 $ — $ 130,869 $ 130,869 Mortgage servicing rights at fair value (12,704) — (12,704) (28,271) — (28,271) $ (12,704) $ 67,709 $ 55,005 $ (28,271) $ 130,869 $ 102,598 Liabilities: Excess servicing spread financing at fair value payable to PennyMac Mortgage Investment Trust $ (1,109) $ — $ (1,109) $ 4,828 $ — $ 4,828 Mortgage servicing liabilities at fair value 2,225 — 2,225 6,290 — 6,290 $ 1,116 $ — $ 1,116 $ 11,118 $ — $ 11,118 Nine months ended September 30, 2018 2017 Net Net gains on Net Net gains on mortgage mortgage mortgage mortgage loan loans held loan loans held servicing for sale at servicing for sale at fees fair value Total fees fair value Total (in thousands) Assets: Mortgage loans held for sale at fair value $ — $ 118,452 $ 118,452 $ — $ 336,836 $ 336,836 Mortgage servicing rights at fair value 23,284 — 23,284 (63,473) — (63,473) $ 23,284 $ 118,452 $ 141,736 $ (63,473) $ 336,836 $ 273,363 Liabilities: Excess servicing spread financing at fair value payable to PennyMac Mortgage Investment Trust $ (9,026) $ — $ (9,026) $ 14,757 $ — $ 14,757 Mortgage servicing liabilities at fair value 9,899 — 9,899 11,056 — 11,056 $ 873 $ — $ 873 $ 25,813 $ — $ 25,813
Schedule of fair value and related principal amounts due upon maturity of assets and liabilities accounted for under the fair value option	September 30, 2018 December 31, 2017 Principal Principal amount amount Fair due upon Fair due upon value maturity Difference value maturity Difference (in thousands) Mortgage loans held for sale: Current through 89 days delinquent $ 2,148,919 $ 2,078,047 $ 70,872 $ 2,430,517 $ 2,326,772 $ 103,745 90 days or more delinquent: Not in foreclosure 215,712 218,623 (2,911) 614,329 614,357 (28) In foreclosure 52,324 56,101 (3,777) 54,257 57,248 (2,991) $ 2,416,955 $ 2,352,771 $ 64,184 $ 3,099,103 $ 2,998,377 $ 100,726
Summary of financial statement items measured at estimated fair value on a nonrecurring basis	September 30, 2018 Level 1 Level 2 Level 3 Total (in thousands) Real estate acquired in settlement of loans $ — $ — $ 2,134 $ 2,134 December 31, 2017 Level 1 Level 2 Level 3 Total (in thousands) Mortgage servicing rights at lower of amortized cost or fair value $ — $ — $ 1,463,552 $ 1,463,552 Real estate acquired in settlement of loans — — 2,355 2,355 $ — $ — $ 1,465,907 $ 1,465,907
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, 2018 2017 2018 2017 (in thousands) Mortgage servicing rights at lower of amortized cost or fair value $ — $ (17,270) $ — $ (33,906) Real estate acquired in settlement of loans (41) 17 (72) 102 $ (41) $ (17,253) $ (72) $ (33,804)
Quantitative summary of key inputs or assumptions used in the valuation of financial statement items, excluding MSR purchases	Quarter ended September 30, 2018 2017 Fair Fair Amortized value value cost (Amount recognized and unpaid principal balance of underlying mortgage loans in thousands) MSR and pool characteristics: Amount recognized $ 149,000 $ 5,773 $ 153,061 Unpaid principal balance of underlying mortgage loans $ 10,790,398 $ 573,463 $ 12,184,003 Weighted average servicing fee rate (in basis points) 37 31 32 Key inputs (1): Pricing spread (2) Range 7.3% – 13.6% 7.6% – 11.2% 7.6% – 14.6% Weighted average 10.1% 10.7% 10.8% Annual total prepayment speed (3) Range 4.4% – 55.7% 3.9% – 46.8% 4.4% – 47.6% Weighted average 11.8% 13.3% 9.5% Life (in years) Range 0.5 – 11.3 1.4 – 11.4 1.5 – 11.4 Weighted average 6.9 6.3 7.9 Per-loan annual cost of servicing Range $78 – $98 $78 – $98 $79 – $98 Weighted average $92 $89 $89 (1) Weighted average inputs are based on UPB of the underlying mortgage loans. (2) 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 Offered Rate (“LIBOR”) curve for purposes of discounting cash flows relating to MSRs. (3) Prepayment speed is measured using Life Total CPR. Nine months ended September 30, 2018 2017 Fair Fair Amortized value value cost (Amount recognized and unpaid principal balance of underlying mortgage loans in thousands) MSR and pool characteristics: Amount recognized $448,604 $19,702 $412,206 Unpaid principal balance of underlying mortgage loans $32,095,458 $1,873,404 $33,890,209 Weighted average servicing fee rate (in basis points) 36 31 30 Key inputs (1): Pricing spread (2) Range 7.3% – 14.1% 7.6% – 11.2% 7.6% – 15.2% Weighted average 10.2% 10.5% 10.7% Annual total prepayment speed (3) Range 3.9% – 61.8% 3.9% – 71.8% 3.4% – 47.6% Weighted average 10.6% 12.5% 9.1% Life (in years) Range 0.5 – 11.6 0.8 – 11.5 1.5 – 12.2 Weighted average 7.5 6.6 8.1 Per-loan annual cost of servicing Range $78 – $98 $78 – $101 $79 – $101 Weighted average $90 $89 $89 (1) Weighted average inputs are based on UPB of the underlying mortgage loans. (2) 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. (3) Prepayment speed is measured using Life Total CPR.
Quantitative summary of key inputs used in the valuation of the MSRs at year end and the effect on estimated fair value from adverse changes in those inputs	September 30, 2018 December 31, 2017 Fair Fair Amortized value 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 $2,785,964 $638,010 $1,481,578 Unpaid principal balance of underlying mortgage loans $193,659,378 $51,883,539 $114,365,698 Weighted average note interest rate 3.9% 4.0% 3.8% Weighted average servicing fee rate (in basis points) 32 32 31 Key inputs (1): Pricing spread (2): Range 7.3% – 13.6% 7.6% – 14.1% 7.6% – 14.1% Weighted average 10.0% 9.8% 10.3% Effect on fair value of (3): 5% adverse change ($51,013) ($10,760) ($27,700) 10% adverse change ($100,182) ($21,155) ($54,376) 20% adverse change ($193,355) ($40,916) ($104,869) Prepayment speed (4): Range 6.9% – 41.6% 7.9% – 46.2% 7.4% – 44.1% Weighted average 8.2% 10.5% 9.7% Average life (in years): Range 1.3 – 8.5 1.2 – 7.8 2.0 – 8.3 Weighted average 8.1 6.6 7.5 Effect on fair value of (3): 5% adverse change ($36,453) ($10,809) ($23,544) 10% adverse change ($71,779) ($21,239) ($46,284) 20% adverse change ($139,263) ($41,038) ($89,514) Annual per-loan cost of servicing: Range $78 – $98 $78 – $97 $79 – $97 Weighted average $93 $89 $89 Effect on fair value of (3): 5% adverse change ($22,201) ($6,247) ($11,216) 10% adverse change ($44,402) ($12,494) ($22,431) 20% adverse change ($88,803) ($24,987) ($44,863) (1) Weighted average inputs are based on UPB of the underlying mortgage loans. (2) The Company applies a pricing spread to the United States Dollar LIBOR curve for purposes of discounting cash flows relating to MSRs. (3) For MSRs carried at fair value, an adverse change in one of the above-mentioned key inputs is expected to result in a reduction in fair value which would be recognized in income. For MSRs carried at lower of amortized cost or fair value, an adverse change in one of the above-mentioned key inputs may have resulted in recognition of MSR impairment. The extent of the recognized MSR impairment depended on the relationship of fair value to the carrying value of such MSRs. (4) Prepayment speed is measured using Life Total CPR.
Mortgage servicing liabilities
Fair Value
Quantitative summary of key inputs or assumptions used in the valuation of financial statement items	September 30, December 31, 2018 2017 MSL and pool characteristics: Carrying value (in thousands) $ $ Unpaid principal balance of underlying mortgage loans (in thousands) $ $ Servicing fee rate (in basis points) Key inputs (1): Pricing spread (2) Prepayment speed (3) Average life (in years) Annual per-loan cost of servicing $ $ (1) Weighted average inputs are based on UPB of the underlying mortgage loans. (2) The Company applies a pricing spread to the United States Dollar LIBOR curve for purposes of discounting cash flows relating to MSLs. Prepayment speed is measured using Life Total CPR
Excess servicing spread financing
Fair Value
Quantitative summary of key inputs or assumptions used in the valuation of financial statement items	September 30, December 31, 2018 2017 Carrying value (in thousands) $223,275 $236,534 ESS and pool characteristics: Unpaid principal balance of underlying mortgage loans (in thousands) $24,058,366 $27,217,199 Average servicing fee rate (in basis points) 34 34 Average excess servicing spread (in basis points) 19 19 Key inputs (1): Pricing spread (2): Range 3.4% – 3.9% 3.8% – 4.3% Weighted average 3.7% 4.1% Annualized prepayment speed (3): Range 7.6% – 38.4% 8.4% – 41.4% Weighted average 9.0% 10.8% Average life (in years): Range 1.4 – 8.0 1.4 – 7.7 Weighted average 7.1 6.5 (1) Weighted average inputs are based on UPB of the underlying mortgage loans. (2) The Company applies a pricing spread to the United States Dollar LIBOR curve for purposes of discounting cash flows relating to ESS. (3) Prepayment speed is measured using Life Total CPR.
Interest rate lock commitments
Fair Value
Quantitative summary of key inputs or assumptions used in the valuation of financial statement items	Key inputs (1) September 30, 2018 December 31, 2017 Pull-through rate: Range 16.6% – 100% 25.0% – 100% Weighted average 85.7% 85.6% Mortgage servicing rights value expressed as: Servicing fee multiple: Range 1.6 – 5.9 1.4 – 5.8 Weighted average 4.0 4.0 Percentage of unpaid principal balance: Range 0.4% – 2.8% 0.3% – 3.0% Weighted average 1.4% 1.4% (1) Weighted average inputs are based on notional amount of IRLCs.
Mortgage loans held for sale
Fair Value
Quantitative summary of key inputs or assumptions used in the valuation of financial statement items	Key inputs (1) September 30, 2018 December 31, 2017 Discount rate: Range 2.8% – 9.2% 2.9% – 10.0% Weighted average 2.9% 2.9% Twelve-month projected housing price index change: Range 3.5% – 6.1% 3.1% – 5.6% Weighted average 3.9% 3.6% Voluntary prepayment / resale speed (2): Range 0.1% – 71.0% 0.2% – 72.2% Weighted average 24.2% 44.6% Total prepayment speed (3): Range 0.1% – 72.1% 0.2% – 75.2% Weighted average 41.3% 55.8% (1) Weighted average inputs are based on fair value of mortgage loans. (2) Voluntary prepayment/resale speed is measured using Life Voluntary Conditional Prepayment Rate (“CPR”). (3) Total prepayment speed is measured using Life Total CPR.

Mortgage Loans Held for Sale _2

Mortgage Loans Held for Sale at Fair Value (Tables)	9 Months Ended
	Sep. 30, 2018
Mortgage Loans Held for Sale at Fair Value
Summary of mortgage loans held for sale at fair value	September 30, December 31, 2018 2017 (in thousands) Government-insured or guaranteed $ 1,892,992 $ 2,085,764 Conventional conforming 158,660 231,128 Purchased from Ginnie Mae pools serviced by the Company 354,076 777,300 Repurchased pursuant to representations and warranties 11,227 4,911 $ 2,416,955 $ 3,099,103 Fair value of mortgage loans pledged to secure: Assets sold under agreements to repurchase $ 1,841,097 $ 2,530,299 Mortgage loan participation purchase and sale agreements 547,969 551,688 $ 2,389,066 $ 3,081,987

Derivative Activities (Tables)

Derivative Activities (Tables)	9 Months Ended
	Sep. 30, 2018
Derivative Activities
Summary of derivative financial instruments	September 30, 2018 December 31, 2017 Fair value Fair value Notional Derivative Derivative Notional Derivative Derivative Instrument amount assets liabilities amount assets liabilities (in thousands) Derivatives not designated as hedging instruments: Not subject to master netting arrangements: Interest rate lock commitments 3,388,437 $ 41,075 $ 3,912 3,654,955 $ 60,012 $ 1,740 Repurchase agreement derivatives 26,475 — 10,656 — Used for hedging purposes: Forward purchase contracts 7,115,621 821 29,569 4,920,883 4,288 1,272 Forward sales contracts 6,711,197 16,892 2,780 5,204,796 2,101 7,031 MBS put options 4,150,000 4,413 — 4,925,000 3,481 — MBS call options 1,250,000 12 — — — — Put options on interest rate futures purchase contracts 2,225,000 3,063 — 2,125,000 3,570 — Call options on interest rate futures purchase contracts 400,000 63 — 100,000 938 — Put options on interest rate futures sales contracts 300,000 — — — — — Treasury futures purchase contracts 835,000 — — 100,000 — — Treasury futures sale contracts 1,450,000 — — — — — Interest rate swap futures purchase contracts — — — 1,400,000 — — Interest rate swap futures sales contracts 625,000 — — — — — Total derivatives before netting 92,814 36,261 85,046 10,043 Netting (19,196) (23,568) (6,867) (4,247) $ 73,618 $ 12,693 $ 78,179 $ 5,796 Deposits (received from) placed with derivative counterparties $ (4,372) $ 2,620
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, 2018 Amount Amount beginning of Dispositions/ end of Instrument quarter Additions expirations quarter (in thousands) Forward purchase contracts 6,617,888 47,038,415 (46,540,682) 7,115,621 Forward sale contracts 7,107,202 58,521,199 (58,917,204) 6,711,197 MBS put options 2,675,000 8,375,000 (6,900,000) 4,150,000 MBS call options — 1,250,000 — 1,250,000 Put options on interest rate futures purchase contracts 1,852,500 4,922,300 (4,549,800) 2,225,000 Call options on interest rate futures purchase contracts 800,000 950,000 (1,350,000) 400,000 Put options on interest rate futures sale contracts — 4,849,800 (4,549,800) 300,000 Call options on interest rate futures sale contracts — 1,350,000 (1,350,000) — Treasury futures purchase contracts 835,000 2,557,100 (2,557,100) 835,000 Treasury futures sale contracts 1,450,000 2,557,100 (2,557,100) 1,450,000 Interest rate swap futures purchase contracts 465,000 420,000 (885,000) — Interest rate swap futures sales contracts — 885,000 (260,000) 625,000 Quarter ended September 30, 2017 Amount Amount beginning of Dispositions/ end of Instrument quarter Additions expirations quarter (in thousands) Forward purchase contracts 7,819,706 47,723,376 (48,242,564) 7,300,518 Forward sale contracts 7,641,979 61,239,459 (61,296,545) 7,584,893 MBS put options 6,075,000 6,825,000 (7,250,000) 5,650,000 MBS call options — 7,900,000 (7,250,000) 650,000 Put options on interest rate futures purchase contracts 1,250,000 2,950,000 (3,175,000) 1,025,000 Call options on interest rate futures purchase contracts 200,000 125,000 (200,000) 125,000 Put options on interest rate futures sale contracts 200,000 2,975,000 (3,175,000) — Call options on interest rate futures sale contracts — 325,000 (200,000) 125,000 Treasury futures purchase contracts — 46,500 (46,500) — Treasury futures sale contracts — 46,500 (46,500) — Interest rate swap futures purchase contracts 325,000 1,075,000 — 1,400,000 Interest rate swap futures sale contracts — — — — Nine months ended September 30, 2018 Amount Amount beginning of Dispositions/ end of Instrument period Additions expirations period (in thousands) Forward purchase contracts 4,920,883 140,158,865 (137,964,127) 7,115,621 Forward sale contracts 5,204,796 174,562,881 (173,056,480) 6,711,197 MBS put options 4,925,000 17,250,000 (18,025,000) 4,150,000 MBS call options — 12,375,000 (11,125,000) 1,250,000 Put options on interest rate futures purchase contracts 2,125,000 16,624,800 (16,524,800) 2,225,000 Call options on interest rate futures purchase contracts 100,000 2,400,000 (2,100,000) 400,000 Put options on interest rate futures sale contracts — 16,824,800 (16,524,800) 300,000 Call options on interest rate futures sale contracts — 2,100,000 (2,100,000) — Treasury futures purchase contracts 100,000 7,453,300 (6,718,300) 835,000 Treasury futures sale contracts — 8,829,600 (7,379,600) 1,450,000 Interest rate swap futures purchase contracts 1,400,000 885,000 (2,285,000) — Interest rate swap futures sales contracts — 2,285,000 (1,660,000) 625,000 Nine months ended September 30, 2017 Amount Amount beginning of Dispositions/ end of Instrument period Additions expirations period (in thousands) Forward purchase contracts 12,746,191 136,663,951 (142,109,624) 7,300,518 Forward sale contracts 16,577,942 169,173,906 (178,166,955) 7,584,893 MBS put options 1,175,000 19,675,000 (15,200,000) 5,650,000 MBS call options 1,600,000 12,100,000 (13,050,000) 650,000 Put options on interest rate futures purchase contracts 1,125,000 7,410,000 (7,510,000) 1,025,000 Call options on interest rate futures purchase contracts 900,000 1,614,300 (2,389,300) 125,000 Put options on interest rate futures sale contracts — 7,510,000 (7,510,000) — Call options on interest rate futures sales contracts — 2,514,300 (2,389,300) 125,000 Treasury futures purchase contracts — 212,600 (212,600) — Treasury futures sale contracts — 212,600 (212,600) — Interest rate swap futures purchase contracts 200,000 1,600,000 (400,000) 1,400,000 Interest rate swap futures sales contracts — 400,000 (400,000) —
Summaries of derivative assets and related netting amounts	September 30, 2018 December 31, 2017 Gross Gross amount Net amount Gross Gross amount Net amount amount of offset in the of assets in the amount of offset in the of assets in the recognized consolidated consolidated recognized consolidated consolidated assets balance sheet balance sheet assets balance sheet balance sheet (in thousands) Derivatives not subject to master netting arrangements: Interest rate lock commitments $ 41,075 $ — $ 41,075 $ 60,012 $ — $ 60,012 Repurchase agreement derivatives 26,475 — 26,475 10,656 — 10,656 67,550 — 67,550 70,668 — 70,668 Derivatives subject to master netting arrangements: Forward purchase contracts 821 — 821 4,288 — 4,288 Forward sale contracts 16,892 — 16,892 2,101 — 2,101 MBS put options 4,413 — 4,413 3,481 — 3,481 MBS call options 12 — 12 — — — Put options on interest rate futures purchase contracts 3,063 — 3,063 3,570 — 3,570 Call options on interest rate futures purchase contracts 63 — 63 938 — 938 Netting — (19,196) (19,196) — (6,867) (6,867) 25,264 (19,196) 6,068 14,378 (6,867) 7,511 $ 92,814 $ (19,196) $ 73,618 $ 85,046 $ (6,867) $ 78,179
Summary of the amount of derivative asset positions by significant counterparty after considering master netting arrangements and financial instruments or cash pledged	September 30, 2018 December 31, 2017 Gross amount not Gross amount not offset in the offset in the consolidated consolidated Net amount balance sheet Net amount balance sheet of assets in the Cash of assets in the Cash consolidated Financial collateral Net consolidated Financial collateral Net balance sheet instruments received amount balance sheet instruments received amount (in thousands) Interest rate lock commitments $ 41,075 $ — $ — $ 41,075 $ 60,012 $ — $ — $ 60,012 Deutsche Bank 26,475 — — 26,475 10,656 — — 10,656 RJ O'Brien 3,125 — — 3,125 4,508 — — 4,508 Citibank, N.A. 1,222 — — 1,222 — — — — Goldman Sachs 646 — — 646 540 — — 540 Morgan Stanley Bank, N.A. — — 587 — — — — Federal National Mortgage Association — — — — 1,092 — — 1,092 JPMorgan Chase Bank, N.A. — — — — 267 — — 267 Others 488 — — 488 1,104 — — 1,104 $ 73,618 $ — $ — $ 73,618 $ 78,179 $ — $ — $ 78,179
Summary of net derivative liabilities and assets sold under agreements to repurchase and related netting amounts	September 30, 2018 December 31, 2017 Net Net amount amount Gross Gross amount of liabilities Gross Gross amount of liabilities amount of offset in the in the amount of offset in the in the recognized consolidated consolidated recognized consolidated consolidated liabilities balance sheet balance sheet liabilities balance sheet balance sheet (in thousands) Derivatives not subject to master netting arrangements – Interest rate lock commitments $ 3,912 $ — $ 3,912 $ 1,740 $ — $ 1,740 Derivatives subject to a master netting arrangement: Forward purchase contracts 29,569 — 29,569 1,272 — 1,272 Forward sale contracts 2,780 — 2,780 7,031 — 7,031 Netting — (23,568) (23,568) — (4,247) (4,247) 32,349 (23,568) 8,781 8,303 (4,247) 4,056 Total derivatives 36,261 (23,568) 12,693 10,043 (4,247) 5,796 Mortgage loans sold under agreements to repurchase: Amount outstanding 1,738,839 — 1,738,839 2,380,866 — 2,380,866 Unamortized premiums and debt issuance costs, net 799 — 799 672 — 672 1,739,638 — 1,739,638 2,381,538 — 2,381,538 $ 1,775,899 $ (23,568) $ 1,752,331 $ 2,391,581 $ (4,247) $ 2,387,334
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, 2018 December 31, 2017 Gross amounts Gross amounts not offset in the not offset in the Net amount consolidated Net amount consolidated of liabilities balance sheet of liabilities balance sheet in the Cash in the Cash consolidated Financial collateral Net consolidated Financial collateral Net balance sheet instruments pledged amount balance sheet instruments pledged amount (in thousands) Interest rate lock commitments $ 3,912 $ — $ — $ 3,912 $ 1,740 $ — $ — $ 1,740 Credit Suisse First Boston Mortgage Capital LLC 628,815 (628,815) — — 1,010,562 (1,010,320) — 242 Deutsche Bank 598,392 (598,392) — — 593,864 (593,864) — — Bank of America, N.A. 253,272 (247,572) — 5,700 406,787 (406,355) — 432 BNP Paribas 81,163 (81,163) — — 87,753 (87,753) — — Morgan Stanley Bank, N.A. 71,210 (71,210) — — 139,491 (138,983) — 508 JPMorgan Chase Bank, N.A. 59,826 (58,780) — 1,046 90,442 (90,442) — — Royal Bank of Canada 33,465 (33,465) — — 24,835 (23,752) — 1,083 Citibank, N.A. 19,442 (19,442) — — 23,010 (23,010) — — Barclays Capital 388 — — 388 6,387 (6,387) — — Others 1,647 — — 1,647 1,791 — — 1,791 $ 1,751,532 $ (1,738,839) $ — $ 12,693 $ 2,386,662 $ (2,380,866) $ — $ 5,796
Summary of gains (losses) recognized on derivative financial instruments and the respective income statement line items	Quarter ended September 30, Nine months ended September 30, Derivative activity Income statement line 2018 2017 2018 2017 (in thousands) Interest rate lock commitments Net gains on mortgage loans held for sale $ (18,526) $ 8,226 $ (21,109) $ (5,008) Repurchase agreement derivative Interest expense $ (227) $ — $ (1,345) $ — Hedged item: Interest rate lock commitments and mortgage loans held for sale Net gains on mortgage loans held for sale $ 10,820 $ (26,981) $ 100,422 $ (27,191) Mortgage servicing rights Net mortgage loan servicing fees – Amortization, impairment and change in fair value of mortgage servicing rights and mortgage servicing liabilities $ (52,971) $ 7,174 $ (180,853) $ (17,018)

Carried Interest Due from Inv_2

Carried Interest Due from Investment Funds (Tables)	9 Months Ended
	Sep. 30, 2018
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, 2018 2017 2018 2017 (in thousands) Balance at beginning of period $ 370 $ 71,019 $ 8,552 $ 70,906 Carried Interest recognized during the period (17) (1,158) (365) (1,045) Cash received during the period (353) (61,314) (8,187) (61,314) Balance at end of period $ — $ 8,547 $ — $ 8,547

Mortgage Servicing Rights and_2

Mortgage Servicing Rights and Mortgage Servicing Liabilities (Tables)	9 Months Ended
	Sep. 30, 2018
Mortgage Servicing Rights and Mortgage Servicing Liabilities
Schedule of activity in MSRs carried at fair value	Quarter ended September 30, Nine months ended September 30, 2018 2017 2018 2017 (in thousands) Balance at beginning of period $ 2,486,157 $ 678,441 $ 638,010 $ 515,925 Reclassification of mortgage servicing rights previously accounted for under the amortization method pursuant to a change in accounting principle — — 1,482,426 — Balance after reclassification 2,486,157 678,441 2,120,436 515,925 Additions: Purchases 163,511 41 193,640 183,830 Mortgage servicing rights resulting from mortgage loan sales 149,000 5,773 448,604 19,702 312,511 5,814 642,244 203,532 Change in fair value due to: Changes in inputs used in valuation model (1) 64,293 (4,857) 239,538 (4,453) Other changes in fair value (2) (76,997) (23,414) (216,254) (59,020) Total change in fair value (12,704) (28,271) 23,284 (63,473) Balance at end of period $ 2,785,964 $ 655,984 $ 2,785,964 $ 655,984 September 30, December 31, 2018 2017 (in thousands) Fair value of mortgage servicing rights pledged to secure Assets sold under agreements to repurchase and Notes payable $ 2,539,575 $ 630,711 (1) Principally reflects changes in discount rate and prepayment speed inputs, primarily due to changes in market interest rates, and changes in expected borrower performance and servicer losses given default. (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 Nine months ended September 30, September 30, 2017 2018 2017 Amortized cost: Balance at beginning of period $ 1,384,741 $ 1,583,378 $ 1,206,694 Transfer of mortgage servicing rights to mortgage servicing rights carried at fair value pursuant to a change in accounting principle — (1,583,378) — Balance after reclassification 1,384,741 — 1,206,694 Mortgage servicing rights resulting from mortgage loan sales 153,061 — 412,206 Amortization (48,448) — (129,546) Balance at end of period 1,489,354 — 1,489,354 Valuation allowance: Balance at beginning of period (111,583) (101,800) (94,947) Reduction resulting from transfer of mortgage servicing rights to mortgage servicing rights carried at fair value pursuant to a change in accounting principle — 101,800 — Balance after reclassification (111,583) — (94,947) Increase in valuation allowance (17,270) — (33,906) Balance at end of period (128,853) — (128,853) Mortgage servicing rights, net at end of period $ 1,360,501 $ — $ 1,360,501 Fair value of mortgage servicing rights at: Beginning of period $ 1,273,364 $ 1,112,302 End of period $ 1,360,578 December 31, 2017 (in thousands) Fair value of mortgage servicing rights pledged to secure assets sold under agreements to repurchase and note payable $ 1,467,356
Schedule of activity in mortgage servicing liability carried at fair value	Quarter ended September 30, Nine months ended September 30, 2018 2017 2018 2017 (in thousands) Balance at beginning of period $ 10,253 $ 18,295 $ 14,120 $ 15,192 Mortgage servicing liabilities resulting from mortgage loan sales 1,741 4,071 5,548 11,940 Changes in fair value due to: Changes in valuation inputs used in valuation model (1) 3,410 (176) 8,590 7,819 Other changes in fair value (2) (5,635) (6,114) (18,489) (18,875) Total change in fair value (2,225) (6,290) (9,899) (11,056) Balance at end of period $ 9,769 $ 16,076 $ 9,769 $ 16,076 (1) Principally reflects changes in expected borrower performance and servicer losses given default. (2) Represents changes due to realization of cash flows.
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, 2018 2017 2018 2017 (in thousands) Contractual servicing fees $ 147,182 $ 126,416 $ 421,536 $ 345,231 Ancillary and other fees: Late charges 5,087 6,326 19,595 18,915 Other 1,244 1,270 4,620 3,296 $ 153,513 $ 134,012 $ 445,751 $ 367,442

Borrowings (Tables)

Borrowings (Tables)	9 Months Ended
	Sep. 30, 2018
Borrowings
Summary of financial data pertaining to assets sold under agreements to repurchase	Quarter ended September 30, Nine months ended September 30, 2018 2017 2018 2017 (dollars in thousands) Average balance of assets sold under agreements to repurchase $ 1,563,053 $ 1,960,332 $ 1,618,008 $ 1,854,786 Weighted average interest rate (1) 3.91 % 3.23 % 3.72 % 3.15 % Total interest expense (2) $ 4,676 $ 19,203 $ 15,943 $ 52,249 Maximum daily amount outstanding $ 2,201,880 $ 2,564,756 $ 2,380,121 $ 2,581,199 September 30, December 31, 2018 2017 (dollars in thousands) Carrying value: Unpaid principal balance $ 1,738,839 $ 2,380,866 Unamortized premiums and debt issuance costs, net 799 672 $ 1,739,638 $ 2,381,538 Weighted average interest rate 3.93 % 3.24 % Available borrowing capacity (3): Committed $ 449,370 $ 316,503 Uncommitted 2,796,791 2,257,631 $ 3,246,161 $ 2,574,134 Fair value of assets securing repurchase agreements: Mortgage loans held for sale $ 1,841,097 $ 2,530,299 Servicing advances (4) $ 102,222 $ 114,643 Mortgage servicing rights (4) $ 2,539,575 $ 2,098,067 Assets purchased from PennyMac Mortgage Investment Trust under agreements to resell $ 133,128 $ 144,128 Margin deposits placed with counterparties (5) $ 3,750 $ 3,750 (1) Excludes the effect of amortization of net premiums totaling $10.9 million and $29.7 million for the quarter and nine months ended September 30, 2018, respectively, and commitment fees and issuance costs totaling $3.0 million and $7.9 million for the quarter and nine months ended September 30, 2017, respectively. (2) In 2017, PFSI entered into a master repurchase agreement that provides the Company with incentives to finance mortgage loans approved for satisfying certain consumer relief characteristics as provided in the agreement. The Company included $12.8 million and $35.5 million of such incentives as a reduction in Interest expense during the quarter and nine months ended September 30, 2018, respectively. The master repurchase agreement is subject to a rolling six-month term through August 21, 2019, unless terminated earlier at the option of the lender. There can be no assurance that the lender will not terminate this agreement before its stated maturity. (3) The amount the Company is able to borrow under asset repurchase agreements is tied to the fair value of unencumbered assets eligible to secure those agreements and the Company’s ability to fund the agreements’ margin requirements relating to the assets financed. (4) Beneficial interests in the Ginnie Mae MSRs and servicing advances are pledged to the Issuer Trust and together serve as the collateral backing the VFN, 2018-GT1 Notes and 2018-GT2 Notes. Financing of the VFN is included in Assets sold under agreements to repurchase and 2018-GT1 Notes and 2018-GT2 Notes are included in Notes payable on the Company's consolidated balance sheet. (5) Margin deposits are included in Other assets on the Company’s consolidated balance sheet.
Summary of maturities of outstanding advances under repurchase agreements by maturity date	Remaining maturity at September 30, 2018 Balance (dollars in thousands) Within 30 days $ 444,530 Over 30 to 90 days 1,239,074 Over 90 to 180 days 5,235 Over one to two years 50,000 Total assets sold under agreements to repurchase $ 1,738,839 Weighted average maturity (in months) 2.3
Summary of amount at risk relating to the assets sold under agreements to repurchase by counterparty	Weighted average maturity of advances under repurchase Counterparty Amount at risk agreement Facility maturity (in thousands) Credit Suisse First Boston Mortgage Capital LLC $ 1,290,904 April 26, 2020 April 26, 2020 Credit Suisse First Boston Mortgage Capital LLC $ 33,078 October 24, 2018 April 26, 2019 Deutsche Bank AG $ 84,185 December 19, 2018 August 21, 2019 Bank of America, N.A. $ 17,796 October 12, 2018 October 12, 2018 JP Morgan Chase Bank, N.A. $ 4,937 October 12, 2018 October 12, 2018 Morgan Stanley Bank, N.A. $ 4,656 December 19, 2018 August 23, 2019 BNP Paribas $ 4,384 November 16, 2018 November 16, 2018 Royal Bank of Canada $ 1,704 November 6, 2018 December 31, 2018 Citibank, N.A. $ 783 December 21, 2018 June 7, 2019
Summary of mortgage loan participations	Quarter ended September 30, Nine months ended September 30, 2018 2017 2018 2017 (dollars in thousands) Average balance $ 289,008 $ 213,486 $ 250,599 $ 200,119 Weighted average interest rate (1) 3.31 % 2.48 % 3.14 % 2.25 % Total interest expense $ 2,533 $ 1,484 $ 6,450 $ 3,780 Maximum daily amount outstanding $ 722,611 $ 532,266 $ 722,611 $ 532,266 (1) Excludes the effect of amortization of facility fees totaling $92,000 and $134,000 for the quarters ended September 30, 2018 and 2017, respectively, and $475,000 and $365,000 for the nine months ended September 30, 2018 and 2017, respectively. September 30, December 31, 2018 2017 (dollars in thousands) Carrying value: Unpaid principal balance $ 524,686 $ 527,706 Unamortized debt issuance costs (19) (311) $ 524,667 $ 527,395 Weighted average interest rate 3.51 % 2.81 % Fair value of mortgage loans pledged to secure mortgage loan participation purchase and sale agreements $ 547,969 $ 551,688
Summary of note payable	Quarter ended September 30, Nine months ended September 30, 2018 2017 2018 2017 (dollars in thousands) Average balance $ 1,234,783 $ 689,417 $ 1,125,458 $ 483,370 Weighted average interest rate (1) 5.07 % 5.85 % 5.29 % 5.87 % Total interest expense $ 21,369 $ 11,747 $ 55,939 $ 24,746 Maximum daily amount outstanding $ 1,300,000 $ 890,879 $ 1,300,000 $ 891,011 (1) Excluding the effect of amortization of debt issuance costs totaling $5. 2 million and $1.2 million for the quarters ended September 30, 2018 and 2017, respectively, and $10. 3 million and $3.2 million for the nine months ended September 30, 2018 and 2017, respectively. Also excludes the effect of non-utilization fees of $179,000 and $562,000 for the quarter and nine months ended September 30, 2018, respectively. September 30, December 31, 2018 2017 (dollars in thousands) Carrying value: Unpaid principal balance $ 1,300,000 $ 900,006 Unamortized debt issuance costs (8,153) (8,501) $ 1,291,847 $ 891,505 Weighted average interest rate 4.82 % 5.66 % Unused amount $ 150,000 $ 280,000 Assets pledged to secure notes payable: Cash $ 81,640 $ 20,765 Other assets ‒ Carried Interest $ — $ 8,552 Servicing advances (1) $ 102,222 $ 114,643 Mortgage servicing rights (1) $ 2,539,575 $ 2,098,067 (1) Beneficial interests in the Ginnie Mae MSRs and servicing advances are pledged to the Issuer Trust and together serve as the collateral backing the VFN, 2018-GT1 Notes and 2018-GT2 Notes. Financing of the VFN is included in Assets sold under agreements to repurchase and 2018-GT1 Notes and 2018-GT2 Notes are included in Notes payable on the Company's consolidated balance sheet.
Summary of obligations under capital lease	Quarter ended September 30, Nine months ended September 30, 2018 2017 2018 2017 (dollars in thousands) Average balance $ 11,615 $ 25,507 $ 15,187 $ 25,573 Weighted average interest rate 4.09 % 3.25 % 3.87 % 3.01 % Total interest expense $ 122 $ 205 $ 444 $ 585 Maximum daily amount outstanding $ 13,032 $ 26,641 $ 20,971 $ 30,044 September 30, December 31, 2018 2017 (in thousands) Unpaid principal balance $ 9,630 $ 20,971 Weighted average interest rate 4.16 % 3.26 % Assets pledged to secure obligations under capital lease: Furniture, fixtures and equipment $ 19,022 $ 23,915 Capitalized software $ 1,231 $ 1,568
Summary of roll forward of Excess Servicing Spread Financing	Quarter ended September 30, Nine months ended September 30, 2018 2017 2018 2017 (in thousands) Balance at beginning of period $ 229,470 $ 261,796 $ 236,534 $ 288,669 Issuances of excess servicing spread to PennyMac Mortgage Investment Trust pursuant to recapture agreement 499 1,207 1,983 4,160 Accrual of interest 3,740 3,998 11,584 13,011 Repayment (11,543) (13,410) (35,852) (42,320) Change in fair value 1,109 (4,828) 9,026 (14,757) Balance at end of period $ 223,275 $ 248,763 $ 223,275 $ 248,763

Liability for Losses Under Re_2

Liability for Losses Under Representations and Warranties (Tables)	9 Months Ended
	Sep. 30, 2018
Liability for Losses Under Representations and Warranties
Summary of repurchase activity	Quarter ended September 30, Nine months ended September 30, 2018 2017 2018 2017 (in thousands) Balance at beginning of period $ 20,587 $ 19,568 $ 20,053 $ 19,067 Provision for losses on mortgage loans sold: Resulting from sales of mortgage loans 1,842 1,596 4,550 4,294 Reduction in liability due to change in estimate (1,155) (1,194) (3,627) (3,086) (Incurred losses) recoveries , net (252) (297) 46 (602) Balance at end of period $ 21,022 $ 19,673 $ 21,022 $ 19,673 Unpaid principal balance of mortgage loans subject to representations and warranties at end of period $ 139,315,779 $ 114,531,205

Commitments and Contingencies (

Commitments and Contingencies (Tables)	9 Months Ended
	Sep. 30, 2018
Commitments and Contingencies.
Summary of future minimum lease payments	Twelve months ended September 30, Future minimum lease payments (in thousands) 2019 $ 15,243 2020 15,367 2021 12,967 2022 10,487 2023 9,572 Thereafter 25,538 $ 89,174

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	9 Months Ended
	Sep. 30, 2018
Stockholders' Equity.
Summary of share repurchase activity	Quarter ended September 30, Nine months ended September 30, Cumulative 2018 2017 2018 2017 total (1) (in thousands) Shares of Class A common stock repurchased — 505 236 505 741 Cost of shares of Class A common stock repurchased $ — $ 8,599 $ 4,826 $ 8,599 $ 13,425 (1) Amounts represent the total shares of Class A common stock repurchased under the Repurchase Program through September 30, 2018.

Noncontrolling Interest (Tables

Noncontrolling Interest (Tables)	9 Months Ended
	Sep. 30, 2018
Noncontrolling Interest.
Noncontrolling Interest	Quarter ended September 30, Nine months ended September 30, 2018 2017 2018 2017 (in thousands) Net income attributable to PennyMac Financial Services, Inc. common stockholders $ 14,489 $ 17,081 $ 48,945 $ 38,439 Increase in the Company's additional paid-in capital for exchanges of Class A units of Private National Mortgage Acceptance Company, LLC to Class A common stock of PennyMac Financial Services, Inc. $ 4,377 $ 3,656 $ 32,501 $ 20,583 Shares of Class A common stock of PennyMac Financial Services, Inc. issued pursuant to exchange of Class A units of Private National Mortgage Acceptance Company, LLC by noncontrolling interest unitholders and issued as equity compensation 131 251 1,616 1,297 September 30, December 31, 2018 2017 Percentage of noncontrolling interest in Private National Mortgage Acceptance Company, LLC 67.5 % 69.2 %

Net Gains on Mortgage Loans H_2

Net Gains on Mortgage Loans Held for Sale (Tables)	9 Months Ended
	Sep. 30, 2018
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, 2018 2017 2018 2017 (in thousands) From non-affiliates: Cash (loss) gain: Mortgage loans $ (107,414) $ (40,747) $ (399,457) $ (98,408) Hedging activities (2,507) (14,592) 89,322 (8,168) (109,921) (55,339) (310,135) (106,576) Non-cash gain: Mortgage servicing rights and mortgage servicing liabilities resulting from mortgage loan sales 147,259 154,763 443,056 419,968 Provision for losses relating to representations and warranties: Pursuant to mortgage loan sales (1,842) (1,596) (4,550) (4,294) Reduction in liability due to change in estimate 1,155 1,194 3,627 3,086 Change in fair value relating to mortgage loans and hedging derivatives held at quarter end: Interest rate lock commitments (18,526) 8,226 (21,109) (5,008) Mortgage loans 6,897 3,376 21,407 (2,554) Hedging derivatives 13,327 (12,389) 11,100 (19,023) 38,349 98,235 143,396 285,599 From PennyMac Mortgage Investment Trust 18,565 9,901 45,878 7,584 $ 56,914 $ 108,136 $ 189,274 $ 293,183

Net Interest Income (Expense) (

Net Interest Income (Expense) (Tables)	9 Months Ended
	Sep. 30, 2018
Net Interest Income (Expense)
Summary of net interest income (expense)	Quarter ended September 30, Nine months ended September 30, 2018 2017 2018 2017 (in thousands) Interest income: From non-affiliates: Short-term investments $ 814 $ 733 $ 2,001 $ 1,727 Mortgage loans held for sale at fair value 34,941 28,199 95,982 68,528 Placement fees relating to custodial funds 23,397 13,394 55,014 27,073 59,152 42,326 152,997 97,328 From PennyMac Mortgage Investment Trust—Assets purchased from PennyMac Mortgage Investment Trust under agreements to resell 1,812 2,116 5,686 5,946 60,964 44,442 158,683 103,274 Interest expense: To non-affiliates: Assets sold under agreements to repurchase (1) 4,676 19,203 15,943 52,249 Mortgage loan participation purchase and sale agreements 2,533 1,484 6,450 3,780 Notes payable 21,369 11,747 55,939 24,746 Obligations under capital lease 122 205 444 585 Interest shortfall on repayments of mortgage loans serviced for Agency securitizations 4,883 4,602 14,259 11,529 Interest on mortgage loan impound deposits 1,452 1,253 3,517 2,943 35,035 38,494 96,552 95,832 To PennyMac Mortgage Investment Trust—Excess servicing spread financing at fair value 3,740 3,998 11,584 13,011 38,775 42,492 108,136 108,843 $ 22,189 $ 1,950 $ 50,547 $ (5,569) In 2017, the Company entered into a master repurchase agreement that provides the Company with incentives to finance mortgage loans approved for satisfying certain consumer relief characteristics as provided in the agreement. The Company included $12.8 million and $35.5 million of such incentives as a reduction in Interest expense during the quarter and nine months ended September 30, 2018, respectively. The master repurchase agreement is subject to a rolling six-month term through August 21, 2019, unless terminated earlier at the option of the lender. There can be no assurance that the lender will not terminate this agreement before its stated maturity.

Stock-based Compensation (Table

Stock-based Compensation (Tables)	9 Months Ended
	Sep. 30, 2018
Stock-based Compensation
Summary of the stock-based compensation activity	Quarter ended September 30, Nine months ended September 30, 2018 2017 2018 2017 (in thousands) Grants: Units: Performance-based RSUs — — 524 694 Stock options — — 674 861 Time-based RSUs 5 3 321 408 Grant date fair value: Performance-based RSUs $ — $ — $ 12,791 $ 12,512 Stock options — — 6,147 5,772 Time-based RSUs 100 58 7,803 7,359 Total $ 100 $ 58 $ 26,741 $ 25,643 Vestings and exercises: Performance-based RSUs vested — — 774 446 Stock options exercised 55 9 285 34 Time-based RSUs vested 1 4 245 165 Compensation expense $ 8,532 $ 4,243 $ 20,766 $ 14,633

Earnings Per Share of Common _2

Earnings Per Share of Common Stock (Tables)	9 Months Ended
	Sep. 30, 2018
Earnings Per Share of Common Stock
Summary of basic and diluted earnings per share calculations	Quarter ended September 30, Nine months ended September 30, 2018 2017 2018 2017 (in thousands, except per share amounts) Basic earnings per share of common stock: Net income attributable to common stockholders $ 14,489 $ 17,081 $ 48,945 $ 38,439 Weighted average shares of common stock outstanding 25,125 23,426 24,644 23,147 Basic earnings per share of common stock $ 0.58 $ 0.73 $ 1.99 $ 1.66 Diluted earnings per share of common stock: Net income attributable to common stockholders $ 14,489 $ 17,081 $ 48,945 $ 38,439 Net income attributable to dilutive stock-based compensation units 552 888 2,435 1,816 Effect of net income attributable to PennyMac Class A units exchangeable to Class A common stock, net of income taxes 29,580 37,996 101,921 86,473 Net income attributable to common stockholders for diluted earnings per share $ 44,621 $ 55,965 $ 153,301 $ 126,728 Weighted average shares of common stock outstanding applicable to basic earnings per share 25,125 23,426 24,644 23,147 Effect of dilutive shares: Common shares issuable under stock-based compensation plan 1,476 1,751 1,818 1,684 PennyMac Class A units exchangeable to Class A common stock 52,312 53,239 52,492 53,400 Weighted average shares of common stock applicable to diluted earnings per share 78,913 78,416 78,954 78,231 Diluted earnings per share of common stock $ 0.57 $ 0.71 $ 1.94 $ 1.62
Schedule of anti-dilutive shares outstanding	Quarter ended September 30, Nine months ended September 30, 2018 2017 2018 2017 (in thousands except for weighted-average exercise price) Performance-based RSUs (1) 1,172 — 1,060 475 Time-based RSUs 86 1 68 1 Stock options (2) 1,208 2,622 705 2,434 Total anti-dilutive stock-based compensation units 2,466 2,623 1,833 2,910 Weighted average exercise price of anti-dilutive stock options (2) $ 17.79 $ 16.39 $ 17.79 $ 16.39 (1) Certain performance-based RSUs were outstanding but not included in the computation of earnings per share because the performance thresholds included in such RSUs have not been achieved. Certain stock options were outstanding but not included in the computation of diluted earnings per share because the weighted-average exercise prices were above the average stock price for the period.

Supplemental Cash Flow Inform_2

Supplemental Cash Flow Information (Tables)	9 Months Ended
	Sep. 30, 2018
Supplemental Cash Flow Information
Schedule of supplemental cash flow information	Nine months ended September 30, 2018 2017 (in thousands) Cash paid for interest $ 123,622 $ 115,710 (Refunds received) cash paid for income taxes, net $ (1,541) $ 41 Non-cash investing activity: Mortgage servicing rights resulting from mortgage loan sales $ 448,604 $ 431,908 Mortgage servicing liabilities resulting from mortgage loan sales $ 5,548 $ 11,940 Unsettled portion of MSR acquisitions $ 13,501 $ 16,364 Non-cash financing activity: Transfer of E xcess servicing spread payable to PennyMac Mortgage Investment Trust pursuant to a recapture agreement $ 1,983 $ 4,160 Issuance of Class A common stock in settlement of director fees $ 245 $ 253

Regulatory Capital and Liquid_2

Regulatory Capital and Liquidity Requirements (Tables)	9 Months Ended
	Sep. 30, 2018
Regulatory Capital and Liquidity Requirements
Summary of agencies' capital and liquidity requirements by each agency	September 30, 2018 December 31, 2017 Agency–company subject to requirement Actual (1) Requirement (1) Actual (1) Requirement (1) (dollars in thousands) Capital Fannie Mae & Freddie Mac – PLS $ 1,749,912 $ 495,694 $ 1,561,977 $ 429,671 Ginnie Mae – PLS $ 1,520,550 $ 698,354 $ 1,307,580 $ 674,133 Ginnie Mae – PennyMac $ 1,755,669 $ 768,190 $ 1,511,201 $ 741,574 HUD – PLS $ 1,520,550 $ 2,500 $ 1,307,580 $ 2,500 Liquidity Fannie Mae & Freddie Mac – PLS $ 243,827 $ 68,224 $ 196,415 $ 58,754 Ginnie Mae – PLS $ 243,827 $ 181,852 $ 196,415 $ 153,431 Tangible net worth / Total assets ratio Fannie Mae & Freddie Mac – PLS 22 % 6 % % % (1) Calculated in compliance with the respective Agency’s requirements.

Segments and Related Informat_2

Segments and Related Information (Tables)	9 Months Ended
	Sep. 30, 2018
Segments and Related Information
Summary of financial highlights by segment	Quarter ended September 30, 2018 Mortgage Banking Investment Production Servicing Total Management Total (in thousands) Revenue: (1) Net mortgage loan servicing fees $ — $ 109,703 $ 109,703 $ — $ 109,703 Net gains on mortgage loans held for sale at fair value 34,947 21,967 56,914 — 56,914 Mortgage loan origination fees 26,485 — 26,485 — 26,485 Fulfillment fees from PennyMac Mortgage Investment Trust 26,256 — 26,256 — 26,256 Net interest income (expense): Interest income 17,013 43,935 60,948 16 60,964 Interest expense 1,274 37,491 38,765 10 38,775 15,739 6,444 22,183 6 22,189 Management fees — — — 6,471 6,471 Carried Interest from Investment Funds — — — (17) (17) Other 645 805 1,450 1,478 2,928 Total net revenue 104,072 138,919 242,991 7,938 250,929 Expenses 78,405 105,346 183,751 5,481 189,232 Income before provision for income taxes $ 25,667 $ 33,573 $ 59,240 $ 2,457 $ 61,697 Segment assets at quarter end (2) $ 2,168,126 $ 4,812,898 $ 6,981,024 $ 11,996 $ 6,993,020 (1) All revenues are from external customers. (2) Excludes parent Company assets, which consist primarily of working capital of $1.8 million and includes receivable from parent Company of $2.3 million. Quarter ended September 30, 2017 Mortgage Banking Investment Production Servicing Total Management Total (in thousands) Revenue: (1) Net mortgage loan servicing fees $ — $ 78,081 $ 78,081 $ — $ 78,081 Net gains on mortgage loans held for sale at fair value 79,983 28,153 108,136 — 108,136 Mortgage loan origination fees 33,168 — 33,168 — 33,168 Fulfillment fees from PennyMac Mortgage Investment Trust 23,507 — 23,507 — 23,507 Net interest income (expense): Interest income 17,651 26,791 44,442 — 44,442 Interest expense 12,355 30,124 42,479 13 42,492 5,296 (3,333) 1,963 (13) 1,950 Management fees — — — 6,216 6,216 Carried Interest from Investment Funds — — — (1,158) (1,158) Other 235 525 760 (25) 735 Total net revenue 142,189 103,426 245,615 5,020 250,635 Expenses 73,231 78,955 152,186 4,305 156,491 Income before provision for income taxes $ 68,958 $ 24,471 $ 93,429 $ 715 $ 94,144 Segment assets at quarter end (2) $ 2,737,666 $ 3,628,689 $ 6,366,355 $ 20,369 $ 6,386,724 (1) All revenues are from external customers. (2) Excludes parent Company assets, which consist primarily of working capital of $1.6 million. Nine months ended September 30, 2018 Mortgage Banking Investment Production Servicing Total Management Total (in thousands) Revenue: (1) Net mortgage loan servicing fees $ — $ 340,181 $ 340,181 $ — $ 340,181 Net gains on mortgage loans held for sale at fair value 105,111 84,163 189,274 — 189,274 Mortgage loan origination fees 75,476 — 75,476 — 75,476 Fulfillment fees from PennyMac Mortgage Investment Trust 52,759 — 52,759 — 52,759 Net interest income (expense): Interest income 48,135 110,532 158,667 16 158,683 Interest expense 4,401 103,694 108,095 41 108,136 43,734 6,838 50,572 (25) 50,547 Management fees — — — 17,910 17,910 Carried Interest from Investment Funds — — — (365) (365) Other 1,497 1,928 3,425 4,221 7,646 Total net revenue 278,577 433,110 711,687 21,741 733,428 Expenses 216,722 290,094 506,816 17,221 524,037 Income before provision for income taxes $ 61,855 $ 143,016 $ 204,871 $ 4,520 $ 209,391 Segment assets at period end (2) $ 2,168,126 $ 4,812,898 $ 6,981,024 $ 11,996 $ 6,993,020 (1) All revenues are from external customers. (2) Excludes parent Company assets, which consist primarily of working capital of $1.8 million and includes receivable from parent Company of $2.3 million. Nine months ended September 30, 2017 Mortgage Banking Investment Production Servicing Total Management Total (in thousands) Revenue: (1) Net mortgage loan servicing fees $ — $ 199,157 $ 199,157 $ — $ 199,157 Net gains on mortgage loans held for sale at fair value 217,526 75,657 293,183 — 293,183 Mortgage loan origination fees 88,935 — 88,935 — 88,935 Fulfillment fees from PennyMac Mortgage Investment Trust 61,184 — 61,184 — 61,184 Net interest income (expense): Interest income 45,866 57,408 103,274 — 103,274 Interest expense 32,507 76,299 108,806 37 108,843 13,359 (18,891) (5,532) (37) (5,569) Management fees — — — 17,597 17,597 Carried Interest from Investment Funds — — — (1,045) (1,045) Other 1,711 1,442 3,153 234 3,387 Total net revenue 382,715 257,365 640,080 16,749 656,829 Expenses 199,547 230,691 430,238 12,455 442,693 Income before provision for income taxes $ 183,168 $ 26,674 $ 209,842 $ 4,294 $ 214,136 Segment assets at period end (2) $ 2,737,666 $ 3,628,689 $ 6,366,355 $ 20,369 $ 6,386,724 (1) All revenues are from external customers. Excludes parent Company assets, which consist primarily of working capital of $1.6 million.

Basis of Presentation and Acc_3

Basis of Presentation and Accounting Developments - Mortgage Servicing Rights (Details) - USD ($)	9 Months Ended
	Sep. 30, 2018	Jun. 30, 2018	Jan. 02, 2018	Jan. 01, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Dec. 31, 2016
Recently Issued Accounting Pronouncements
Mortgage servicing rights	$ 2,785,964,000				$ 2,119,588,000
Income taxes payable	74,158,000				52,160,000
Stockholders' equity	$ 1,916,710,000	$ 1,861,944,000			$ 1,719,674,000	$ 1,590,291,000	$ 1,511,252,000	$ 1,399,356,000
Fulfillment Fees
Number of days from purchase fulfillment fees are collected	30 days
Management fees
The period from quarter end that management fees are collected	30 days
Adjustment | Accounting Standards Codification 250 Mortgage Servicing Rights Fair Value
Recently Issued Accounting Pronouncements
Mortgage servicing rights				$ 848,000
Income taxes payable			$ 72,000
Stockholders' equity			$ 776,000

Basis of Presentation and Acc_4

Basis of Presentation and Accounting Developments - Revenue Recognition (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Revenue Recognition
Occupancy and equipment	$ 7,117	$ 5,933	$ 20,001	$ 16,940
Technology	15,273	13,926	45,047	36,863
Compensation	103,364	93,417	303,917	261,624
Other	6,086	5,655	19,928	16,352
Other Revenue	2,605	$ 487	7,048	$ 3,068
Difference between Revenue Guidance in Effect before and after Topic 606 | ASU 2014-09
Revenue Recognition
Occupancy and equipment	718		1,954
Technology	315		837
Compensation	120		360
Other	177		596
Other Revenue	$ 1,330		$ 3,747

Basis of Presentation and Acc_5

Basis of Presentation and Accounting Developments - Cash Flow (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017	Dec. 31, 2016
Recently Issued Accounting Pronouncements
Cash flow from operations	$ 732,584	$ (646,266)
Cash and restricted cash at quarter end	$ 103,252	68,158	$ 38,173	$ 99,642
Adjustment | ASU 2016-18
Recently Issued Accounting Pronouncements
Cash flow from operations		175
Cash and restricted cash at quarter end		450
As previously reported | ASU 2016-18
Recently Issued Accounting Pronouncements
Cash flow from operations		(646,441)
Cash and restricted cash at quarter end		$ 67,708

Concentration of Risk (Details)

Concentration of Risk (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Sales Revenue, Services, Net [Member] | Customer Concentration Risk [Member]
Concentration of Risk
Percentage of total net revenue	25.00%	22.00%	19.00%	20.00%

Transactions with Affiliates -

Transactions with Affiliates - Correspondent Production (Details) - USD ($)	Sep. 12, 2016	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
MBS Agreement
Transactions with Affiliates
Early purchase program facility fee per annum per early purchase facility	$ 1,500
Early purchase facility fee per loan	$ 35
The administrative fee plus accrued interest and sourcing fee percent	0.35%
Related party transaction, automatic renewal period	18 months
Fulfillment fee as a percent of UPB of all other mortgage loans, excluding Ginnie Mae mortgage loans	0.50%
MSR Recapture Agreement
Transactions with Affiliates
Related party transaction, automatic renewal period	18 months
Lending activity between the entity and affiliate
Minimum percent of total UPB of loans originated from refinancing of loans which a related party previously held the MSR required to be transferred	30.00%
PMT
Lending activity between the entity and affiliate
Fulfillment fee revenue		$ 26,256,000	$ 23,507,000	$ 52,759,000	$ 61,184,000
Proceeds from sale of mortgage loans held for sale to PennyMac Mortgage Investment Trust				2,336,162,000	373,108,000
PMT | MBS Agreement | Minimum
Transactions with Affiliates
The administrative fee plus accrued interest and sourcing fee percent	0.02%
PMT | MBS Agreement | Maximum
Transactions with Affiliates
The administrative fee plus accrued interest and sourcing fee percent	0.035%
PMT | Mortgage Lending
Lending activity between the entity and affiliate
Net gain on mortgage loans held for sale to PMT		19,722,000	11,396,000	49,396,000	12,280,000
Mortgage servicing rights and excess servicing spread recapture incurred		(1,157,000)	(1,495,000)	(3,518,000)	(4,696,000)
Total of gain on sale of loans and MSR recapture		18,565,000	9,901,000	45,878,000	7,584,000
Sale of mortgage loans held for sale to PMT		908,525,000	332,886,000	2,336,162,000	373,108,000
Fulfillment fee revenue		26,256,000	23,507,000	52,759,000	61,184,000
Unpaid principal balance of loans fulfilled for PennyMac Mortgage Investment Trust		7,517,883,000	6,530,036,000	17,139,884,000	17,079,969,000
Sourcing fees paid		2,689,000	3,275,000	8,221,000	9,340,000
Unpaid principal balance of loans purchased from PennyMac Mortgage Investment Trust		8,916,654,000	10,915,194,000	27,404,022,000	31,131,154,000
Tax service fee		$ 2,119,000	2,108,000	$ 4,869,000	5,377,000
Early purchase program fees earned from PMT			$ 1,000		$ 7,000

Transactions with Affiliates _2

Transactions with Affiliates - Mortgage Loan Servicing (Details)	Sep. 12, 2016USD ($)item	Sep. 30, 2018USD ($)	Sep. 30, 2017USD ($)	Sep. 30, 2018USD ($)	Sep. 30, 2017USD ($)
Mortgage Loan Servicing Agreement
Transactions with Affiliates
Base servicing fees per month for REO	$ 75
Rental fee per month per REO	30
Renewal fee, per lease renewal, on REO property	$ 100
Property management fees on REOs, as a percent of gross rental income	9.00%
Base servicing fees per month for fixed-rate non-distressed loans subserviced	$ 7.50
Base servicing fees per month for adjustable rate non-distressed loans subserviced	8.50
Supplemental fee per month for each distressed whole loan	25
Activity-based fee, percent, due to a streamline modification	750
Activity-based fee, percent, due to a liquidation	1,750
Activity-based fee due to a deed-in-lieu of foreclosure	$ 500
Maximum number of liquidation, reperformance, or modification fees that can be earned during earnable period | item	1
Liquidation, reperformance, or modification fees earnable period	18 months
Related party transaction, automatic renewal period	18 months
Minimum | Mortgage Loan Servicing Agreement
Transactions with Affiliates
Servicing fees amount per month for current loans	$ 30
Maximum | Mortgage Loan Servicing Agreement
Transactions with Affiliates
Servicing fees amount per month for severely delinquent loans	$ 85
PMT
Summary of mortgage loan servicing fees earned
Loan servicing fees		$ 10,071,000	$ 11,402,000	$ 30,521,000	$ 31,987,000
PMT | Mortgage loans acquired for sale at fair value
Summary of mortgage loan servicing fees earned
Base and supplemental		98,000	88,000	250,000	235,000
Activity-based		218,000	188,000	489,000	507,000
Loan servicing fees		316,000	276,000	739,000	742,000
PMT | Mortgage loans at fair value
Summary of mortgage loan servicing fees earned
Base and supplemental		614,000	1,571,000	2,328,000	5,284,000
Activity-based		657,000	2,702,000	3,200,000	6,859,000
Loan servicing fees		1,271,000	4,273,000	5,528,000	12,143,000
PMT | Mortgage servicing rights
Summary of mortgage loan servicing fees earned
Base and supplemental		8,326,000	6,702,000	23,875,000	18,727,000
Activity-based		158,000	151,000	379,000	375,000
Loan servicing fees		8,484,000	6,853,000	24,254,000	19,102,000
PMT | Other income
Summary of mortgage loan servicing fees earned
Property management fees		$ 122,000	$ 95,000	$ 333,000	$ 261,000

Transactions with Affiliates _3

Transactions with Affiliates - Management Fees (Details) - USD ($)	Sep. 12, 2016	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Management Fee Revenue Abstract
Management fees		$ 6,471,000	$ 6,216,000	$ 17,910,000	$ 17,597,000
PMT
Management Fee Revenue Abstract
Management fees		6,482,000	6,038,000	17,906,000	16,684,000
PMT | Management Agreement
Transactions with Affiliates
Percentage of change in net income due to quarterly adjustments	8.00%
Related party transaction, automatic renewal period	18 months
Management Fee Revenue Abstract
Base management fee		5,799,000	6,038,000	17,223,000	16,380,000
Performance incentive		683,000		683,000	304,000
Management fees		$ 6,482,000	$ 6,038,000	$ 17,906,000	$ 16,684,000
PMT | Management Agreement | Maximum
Transactions with Affiliates
Percentage of performance incentive fee payable by issuance of common shares	50.00%
PMT | Management Agreement | Minimum
Transactions with Affiliates
High watermark	$ 0
PMT | Shareholders Equity Up To 2 Billion Dollars | Maximum
Transactions with Affiliates
Base management fee annual rate (as a percent)	1.50%
Base management fee shareholders' equity limit	$ 2,000,000,000
PMT | Shareholders Equity In Excess Of 2 Billion Dollars And Upto 5 Billion Dollars
Transactions with Affiliates
Base management fee annual rate (as a percent)	1.375%
PMT | Shareholders Equity In Excess Of 2 Billion Dollars And Upto 5 Billion Dollars | Maximum
Transactions with Affiliates
Base management fee shareholders' equity limit	$ 5,000,000,000
PMT | Shareholders Equity In Excess Of 2 Billion Dollars And Upto 5 Billion Dollars | Minimum
Transactions with Affiliates
Base management fee shareholders' equity limit	$ 2,000,000,000
PMT | Shareholders Equity In Excess Of 5 Billion Dollars
Transactions with Affiliates
Base management fee annual rate (as a percent)	1.25%
PMT | Shareholders Equity In Excess Of 5 Billion Dollars | Maximum
Transactions with Affiliates
Base management fee shareholders' equity limit	$ 5,000,000,000
PMT | Return on Shareholders Equity 8 Percent
Transactions with Affiliates
Percentage of net income for calculation of performance incentive fees	10.00%
PMT | Return on Shareholders Equity 8 Percent | Maximum
Transactions with Affiliates
Percentage of return on affiliate's equity	12.00%
PMT | Return on Shareholders Equity 8 Percent | Minimum
Transactions with Affiliates
Percentage of return on affiliate's equity	8.00%
PMT | Return on Shareholders Equity 12 Percent
Transactions with Affiliates
Percentage of net income for calculation of performance incentive fees	15.00%
Percentage of return on affiliate's equity	12.00%
PMT | Return on Shareholders Equity 12 Percent | Maximum
Transactions with Affiliates
Percentage of return on affiliate's equity	16.00%
PMT | Return on Shareholders Equity in Excess of 16 Percent
Transactions with Affiliates
Percentage of net income for calculation of performance incentive fees	20.00%
Percentage of return on affiliate's equity	16.00%

Transactions with Affiliates _4

Transactions with Affiliates - Other Transactions, Reimbursement of Common Overhead Expenses (Details) - PMT - USD ($)	Sep. 12, 2016	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Transactions with Affiliates
Expense reimbursement amount, per quarter, relating to personnel	$ 120,000
Reimbursement of common overhead and expenses incurred on behalf of affiliates
Reimbursement of common overhead and expenses incurred by the Company		$ 1,857,000	$ 1,389,000	$ 4,333,000	$ 5,069,000
Payments and settlements during the period		21,650,000	22,786,000	45,265,000	63,249,000
Common overhead incurred
Reimbursement of common overhead and expenses incurred on behalf of affiliates
Reimbursement of common overhead and expenses incurred by the Company		1,210,000	1,193,000	3,387,000	4,220,000
Compensation
Reimbursement of common overhead and expenses incurred on behalf of affiliates
Reimbursement of common overhead and expenses incurred by the Company		120,000		360,000
Expenses incurred by related party (reporting entity), net
Reimbursement of common overhead and expenses incurred on behalf of affiliates
Reimbursement of common overhead and expenses incurred by the Company		$ 527,000	$ 196,000	$ 586,000	$ 849,000

Transactions with Affiliates _5

Transactions with Affiliates - Other Transactions, Conditional Reimbursement (Details) - PMT - Conditional Reimbursement - USD ($)	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Aug. 04, 2009
Conditional reimbursement
Payments received	$ 0	$ 30,000
Maximum
Conditional reimbursement
Conditional reimbursement			$ 2,900,000

Transactions with Affiliates _6

Transactions with Affiliates - Investing Activities (Details)	Dec. 19, 2016USD ($)item	Sep. 30, 2018USD ($)shares	Sep. 30, 2017USD ($)	Sep. 30, 2018USD ($)shares	Sep. 30, 2017USD ($)	Dec. 31, 2017USD ($)shares
PennyMac Holdings, L L C Repurchase Agreement
Transactions with Affiliates
Number of subsidiaries entered into master repurchase agreement | item	1
Maximum principal balance of VFN	$ 1,000,000,000
PMT
Transactions with Affiliates
Common shares of beneficial interest owned | shares		75,000		75,000
Activity during the year:
Interest income on receivable from PennyMac Mortgage Investment Trust		$ 1,812,000	$ 2,116,000	$ 5,686,000	$ 5,946,000
Activity during the period:
Dividends received from PennyMac Mortgage Investment Trust		35,000	35,000	106,000	106,000
Change in fair value of investment in Common shares of PennyMac Mortgage Investment Trust		94,000	(68,000)	313,000	76,000
Balance at end of period		129,000	(33,000)	419,000	182,000
Assets purchased from PennyMac Mortgage Investment Trust under agreements to resell		133,128,000		133,128,000		$ 144,128,000
Fair value of PennyMac Mortgage Investment Trust shares		$ 1,518,000		$ 1,518,000		$ 1,205,000
Number of shares | shares		75,000		75,000		75,000
PMT | PennyMac Holdings, L L C Repurchase Agreement
Activity during the year:
Interest income on receivable from PennyMac Mortgage Investment Trust		$ 1,812,000	$ 2,116,000	$ 5,686,000	$ 5,946,000

Transactions with Affiliates _7

Transactions with Affiliates - Financing Activities (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017	Feb. 01, 2013
Financing activities:
Issuance pursuant to recapture agreement			$ 1,983,000	$ 4,160,000
Interest expense from excess servicing spread financing			11,584,000	13,011,000
PMT
Financing activities:
Changes in fair value included in income	$ (1,109,000)	$ 4,828,000	(9,026,000)	14,757,000
Excess servicing spread financing at fair value payable to affiliate	223,275,000		223,275,000		$ 236,534,000
PMT | 2/1/13 Spread Acquisition Agreement
Financing activities:
Maximum ESS recapture obligation						$ 200,000
Excess servicing spread financing
Financing activities:
Changes in fair value included in income	1,109,000	(4,828,000)	9,026,000	(14,757,000)
Excess servicing spread financing | PMT
Financing activities:
Issuance pursuant to recapture agreement	499,000	1,207,000	1,983,000	4,160,000
Repayments	11,543,000	13,410,000	35,852,000	42,320,000
Changes in fair value included in income	1,109,000	(4,828,000)	9,026,000	(14,757,000)
Interest expense from excess servicing spread financing	3,740,000	3,998,000	11,584,000	13,011,000
Excess servicing spread recapture recognized	597,000	$ 1,163,000	1,951,000	$ 3,837,000
Excess servicing spread financing at fair value payable to affiliate	$ 223,275,000		$ 223,275,000		$ 236,534,000

Transactions with Affiliates _8

Transactions with Affiliates - Amounts due from Affiliate (Details) - PMT - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Amounts due from affiliate
Fulfillment fees	$ 12,078	$ 346
Management fees	6,482	5,901
Servicing fees	3,765	6,583
Allocated expenses	2,295	11,542
Correspondent production fees	1,864	1,735
Conditional Reimbursement	870	870
Interest on assets purchased under agreements to resell	113	142
Total due from affiliate	27,467	27,119
Payable to affiliate
Deposits made by PMT	89,467	132,844
MSR Recapture Payable to PMT	250	282
Other expenses	2,101	3,872
Payable to affiliates	$ 91,818	$ 136,998

Transactions with Affiliates _9

Transactions with Affiliates - Amounts due from Investment Funds (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Jun. 30, 2018	Dec. 31, 2017	Jun. 30, 2017	Dec. 31, 2016
Investment Funds
Amounts due from affiliate
Cash received during the period	$ 353	$ 61,314	$ 8,187	$ 61,314
Carried Interest from Investment Funds		$ 8,547		$ 8,547	$ 370	$ 8,552	$ 71,019	$ 70,906
Mortgage loan servicing rebate deposit						300
Management fees						88
Expense reimbursements						27
Mortgage loan servicing fees						2
Total due from affiliate						417
Deposits received to fund servicing advances						2,329
Other						98
Payable to affiliates						2,427
Investment Funds | Minimum
Amounts due from affiliate
Base management fees, annual accrual rate			1.50%
Investment Funds | Maximum
Amounts due from affiliate
Base management fees, annual accrual rate			2.00%
PNMAC Mortgage Opportunity Fund, LLC
Amounts due from affiliate
Carried Interest from Investment Funds						6,389
PNMAC Mortgage Opportunity Fund Investors, LLC
Amounts due from affiliate
Carried Interest from Investment Funds						$ 2,163

Transactions with Affiliates_10

Transactions with Affiliates - Exchanged Private National Mortgage Acceptance Company, LLC Unitholders (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Transactions with Affiliates
Amount of tax benefits under the tax sharing agreement (as a percent)	85.00%
Payable to exchanged PNMAC unitholders under tax receivable agreement	$ 47.6		$ 44
Private National Mortgage Acceptance Company, LLC
Transactions with Affiliates
Payment of tax liability under the tax receivable agreement to Private National Mortgage Acceptance Company, LLC unitholders	$ 0	$ 6.2

Loan Sales and Servicing Acti_3

Loan Sales and Servicing Activities - Summary of Cash Flows with Transferees (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Cash flows:
Sales proceeds	$ 11,375,408	$ 13,600,232	$ 34,208,217	$ 38,097,411
Servicing fees received	123,626	97,312	354,535	272,303
Net servicing advances	4,147	$ (15,061)	(20,572)	$ (1,271)
Period end information:
Unpaid principal balance of mortgage loans outstanding	139,305,079		139,305,079		$ 120,853,138
30-89 days	5,967,607		5,967,607		5,097,688
90 days or more - Not in foreclosure	1,904,299		1,904,299		2,303,114
90 days or more - In foreclosure	640,555		640,555		606,744
90 days or more - Foreclosed	24,216		24,216		30,310
Bankruptcy	$ 889,814		$ 889,814		$ 657,368

Loan Sales and Servicing Acti_4

Loan Sales and Servicing Activities - Summary of Mortgage Servicing Portfolio (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Mortgage servicing portfolio
Mortgage loans held for sale	$ 2,352,771	$ 2,998,377
Total loans serviced	284,504,071	245,848,491
Subserviced for the Company	6,459,716
Delinquent mortgage loans:
30 days	7,053,730	5,842,632
60 days	1,929,599	2,151,173
90 days or more - Not in foreclosure	3,061,141	4,232,104
90 days or more - In foreclosure	1,077,581	1,210,449
90 days or more - Foreclosed	229,005	320,134
Total delinquent mortgage loans	13,351,056	13,756,492
Bankruptcy	1,393,691	1,223,293
Custodial funds managed by the Company	4,967,252	4,168,320
Servicing rights owned
Mortgage servicing portfolio
Mortgage loans held for sale	2,352,771	2,998,377
Total loans serviced	197,277,610	170,868,223
Subserviced for the Company	6,459,716
Delinquent mortgage loans:
30 days	6,457,528	5,326,710
60 days	1,810,285	1,935,216
90 days or more - Not in foreclosure	2,805,375	3,690,159
90 days or more - In foreclosure	928,268	916,614
90 days or more - Foreclosed	35,604	41,244
Total delinquent mortgage loans	12,037,060	11,909,943
Bankruptcy	1,277,484	1,046,969
Custodial funds managed by the Company	3,764,023	3,267,279
Contract servicing and subservicing
Mortgage servicing portfolio
Total loans serviced	87,226,461	74,980,268
Delinquent mortgage loans:
30 days	596,202	515,922
60 days	119,314	215,957
90 days or more - Not in foreclosure	255,766	541,945
90 days or more - In foreclosure	149,313	293,835
90 days or more - Foreclosed	193,401	278,890
Total delinquent mortgage loans	1,313,996	1,846,549
Bankruptcy	116,207	176,324
Custodial funds managed by the Company	1,203,229	901,041
Non affiliated entities
Mortgage servicing portfolio
Originated	139,305,079	120,853,138
Purchased	55,619,760	47,016,708
Total loans serviced, excluding loans held for sale	194,924,839	167,869,846
Non affiliated entities | Servicing rights owned
Mortgage servicing portfolio
Originated	139,305,079	120,853,138
Purchased	55,619,760	47,016,708
Total loans serviced, excluding loans held for sale	194,924,839	167,869,846
Affiliated entities
Mortgage servicing portfolio
Advised entities	87,226,461	74,980,268
Affiliated entities | Contract servicing and subservicing
Mortgage servicing portfolio
Advised entities	$ 87,226,461	$ 74,980,268

Loan Sales and Servicing Acti_5

Loan Sales and Servicing Activities - Geographical Distribution of Loans (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Loan Sales and Servicing Activities
Total loans serviced	$ 284,504,071	$ 245,848,491
California
Loan Sales and Servicing Activities
Total loans serviced	50,009,289	45,621,369
Texas
Loan Sales and Servicing Activities
Total loans serviced	23,023,181	19,741,970
Florida
Loan Sales and Servicing Activities
Total loans serviced	21,006,280	17,490,194
Virginia
Loan Sales and Servicing Activities
Total loans serviced	18,308,994	16,210,673
Maryland
Loan Sales and Servicing Activities
Total loans serviced	13,176,658	11,350,939
All other states
Loan Sales and Servicing Activities
Total loans serviced	$ 158,979,669	$ 135,433,346

Fair Value - Financial Statemen

Fair Value - Financial Statement Items Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Sep. 30, 2018
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	$ 170,080	$ 145,476
Mortgage loans held for sale at fair value	3,099,103	2,416,955
Derivative assets:
Derivative asset, before netting	85,046	92,814
Netting	(6,867)	(19,196)
Total derivative assets	78,179	73,618
Mortgage servicing rights at fair value	638,010	2,785,964
Derivative liabilities:
Derivative liability, before netting	10,043	36,261
Netting	(4,247)	(23,568)
Net amounts of liabilities presented in the consolidated balance sheet	5,796	12,693
Mortgage servicing liabilities	14,120	9,769
PMT
Derivative assets:
Investment in PennyMac Mortgage Investment Trust	1,205	1,518
Interest rate lock commitments
Derivative assets:
Total derivative assets	60,012	41,075
Forward contracts | Purchases
Derivative assets:
Derivative asset, before netting	4,288	821
Derivative liabilities:
Derivative liability, before netting	1,272	29,569
Forward contracts | Sales
Derivative assets:
Derivative asset, before netting	2,101	16,892
Derivative liabilities:
Derivative liability, before netting	7,031	2,780
MBS put options
Derivative assets:
Derivative asset, before netting	3,481	4,413
MBS call options
Derivative assets:
Derivative asset, before netting		12
Call options on interest rate futures | Purchases
Derivative assets:
Derivative asset, before netting	938	63
Put options on interest rate futures | Purchases
Derivative assets:
Derivative asset, before netting	3,570	3,063
Recurring basis
Assets:
Short-term investments at fair value	170,080	145,476
Mortgage loans held for sale at fair value	3,099,103	2,416,955
Derivative assets:
Derivative asset, before netting	85,046	92,814
Netting	(6,867)	(19,196)
Total derivative assets	78,179	73,618
Mortgage servicing rights at fair value	638,010	2,785,964
Total assets	3,986,577	5,423,531
Derivative liabilities:
Derivative liability, before netting	10,043	36,261
Netting	(4,247)	(23,568)
Net amounts of liabilities presented in the consolidated balance sheet	5,796	12,693
Mortgage servicing liabilities	14,120	9,769
Total liabilities	256,450	245,737
Recurring basis | PMT
Derivative assets:
Investment in PennyMac Mortgage Investment Trust	1,205	1,518
Derivative liabilities:
Excess servicing spread financing at fair value to affiliate	236,534	223,275
Recurring basis | Interest rate lock commitments
Derivative assets:
Derivative asset, before netting	60,012	41,075
Derivative liabilities:
Derivative liability, before netting	1,740	3,912
Recurring basis | Repurchase agreement derivatives
Derivative assets:
Derivative asset, before netting	10,656	26,475
Recurring basis | Forward contracts | Purchases
Derivative assets:
Derivative asset, before netting	4,288	821
Derivative liabilities:
Derivative liability, before netting	1,272	29,569
Recurring basis | Forward contracts | Sales
Derivative assets:
Derivative asset, before netting	2,101	16,892
Derivative liabilities:
Derivative liability, before netting	7,031	2,780
Recurring basis | MBS put options
Derivative assets:
Derivative asset, before netting	3,481	4,413
Recurring basis | MBS call options
Derivative assets:
Derivative asset, before netting		12
Recurring basis | Call options on interest rate futures | Purchases
Derivative assets:
Derivative asset, before netting	938	63
Recurring basis | Put options on interest rate futures | Purchases
Derivative assets:
Derivative asset, before netting	3,570	3,063
Recurring basis | Level 1
Assets:
Short-term investments at fair value	170,080	145,476
Derivative assets:
Derivative asset, before netting	4,508	3,126
Total derivative assets	4,508	3,126
Total assets	175,793	150,120
Recurring basis | Level 1 | PMT
Derivative assets:
Investment in PennyMac Mortgage Investment Trust	1,205	1,518
Recurring basis | Level 1 | Call options on interest rate futures | Purchases
Derivative assets:
Derivative asset, before netting	938	63
Recurring basis | Level 1 | Put options on interest rate futures | Purchases
Derivative assets:
Derivative asset, before netting	3,570	3,063
Recurring basis | Level 2
Assets:
Mortgage loans held for sale at fair value	2,316,892	2,051,652
Derivative assets:
Derivative asset, before netting	9,870	22,138
Total derivative assets	9,870	22,138
Total assets	2,326,762	2,073,790
Derivative liabilities:
Derivative liability, before netting	8,303	32,349
Net amounts of liabilities presented in the consolidated balance sheet	8,303	32,349
Total liabilities	8,303	32,349
Recurring basis | Level 2 | Forward contracts | Purchases
Derivative assets:
Derivative asset, before netting	4,288	821
Derivative liabilities:
Derivative liability, before netting	1,272	29,569
Recurring basis | Level 2 | Forward contracts | Sales
Derivative assets:
Derivative asset, before netting	2,101	16,892
Derivative liabilities:
Derivative liability, before netting	7,031	2,780
Recurring basis | Level 2 | MBS put options
Derivative assets:
Derivative asset, before netting	3,481	4,413
Recurring basis | Level 2 | MBS call options
Derivative assets:
Derivative asset, before netting		12
Recurring basis | Level 3
Assets:
Mortgage loans held for sale at fair value	782,211	365,303
Derivative assets:
Derivative asset, before netting	70,668	67,550
Total derivative assets	70,668	67,550
Mortgage servicing rights at fair value	638,010	2,785,964
Total assets	1,490,889	3,218,817
Derivative liabilities:
Derivative liability, before netting	1,740	3,912
Net amounts of liabilities presented in the consolidated balance sheet	1,740	3,912
Mortgage servicing liabilities	14,120	9,769
Total liabilities	252,394	236,956
Recurring basis | Level 3 | PMT
Derivative liabilities:
Excess servicing spread financing at fair value to affiliate	236,534	223,275
Recurring basis | Level 3 | Interest rate lock commitments
Derivative assets:
Derivative asset, before netting	60,012	41,075
Derivative liabilities:
Derivative liability, before netting	1,740	3,912
Recurring basis | Level 3 | Repurchase agreement derivatives
Derivative assets:
Derivative asset, before netting	$ 10,656	$ 26,475

Fair Value - Level 3 Input Roll

Fair Value - Level 3 Input Roll Forward, Recurring Basis (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Jan. 02, 2018
Roll forward of liabilities measured using Level 3 inputs on a recurring basis
Mortgage servicing liabilities resulting from mortgage loan sales			$ 5,548	$ 11,940
Excess servicing spread financing
Roll forward of liabilities measured using Level 3 inputs on a recurring basis
Balance at the beginning of the quarter	$ 229,470	$ 261,796	236,534	288,669
Accrual of interest on excess servicing spread financing	3,740	3,998	11,584	13,011
Repayment	(11,543)	(13,410)	(35,852)	(42,320)
Changes in fair value included in income	1,109	(4,828)	9,026	(14,757)
Balance at the end of the quarter	223,275	248,763	223,275	248,763
Recurring basis
Roll forward of assets measured using Level 3 inputs on a recurring basis
Balance at the beginning of the quarter	2,901,793	1,104,683	1,489,149	622,587
Reclassification of mortgage servicing rights previously accounted for under the amortization method					$ 1,482,426
Balance after reclassification					2,971,575
Purchases	1,226,797		2,868,436	2,226,425
Purchases and issuances, net		583,854
Sales and repayments	(243,903)	(306,458)	(1,141,908)	(845,318)
Mortgage servicing rights resulting from mortgage loan sales	149,000	5,773	448,604	19,702
Changes in fair value included in income arising from:
Changes in instrument specific credit risk	84	(1,130)	(4,944)	(6,104)
Other factors	(2,235)	13,422	(6,688)	35,952
Total changes in fair value included in income	(2,151)	12,292	(11,632)	29,848
Transfers from mortgage loans held for sale from Level 3 to Level 2	(744,324)	(195,802)	(1,765,854)	(635,118)
Transfers to real estate acquired in settlement of loans	(1,364)		(4,185)
Transfers from interest rate lock commitments to mortgage loans held for sale	(70,943)	(117,265)	(150,131)	(331,049)
Balance at the end of the quarter	3,214,905	1,087,077	3,214,905	1,087,077
Changes in fair value recognized during the period relating to assets still held at the end of the period	19,648	23,262	55,535	(12,822)
Roll forward of liabilities measured using Level 3 inputs on a recurring basis
Balance at the beginning of the quarter	239,723	280,091	250,654	303,861
Issuances			1,983	4,160
Accrual of interest on excess servicing spread financing	3,740	3,998	11,584	13,011
Repayment		(13,410)	(35,852)	(42,320)
Settlement	(11,543)
Mortgage servicing liabilities resulting from mortgage loan sales	1,741	4,071	5,548	11,940
Changes in fair value included in income	(1,116)	(11,118)	(873)	(25,813)
Balance at the end of the quarter	233,044	264,839	233,044	264,839
Changes in fair value recognized during the period relating to liability still outstanding at the end of the period	(1,116)	(11,118)	(873)	(25,813)
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 quarter	229,470	261,796	236,534	288,669
Issuances			1,983	4,160
Accrual of interest on excess servicing spread financing	3,740	3,998	11,584	13,011
Repayment		(13,410)	(35,852)	(42,320)
Settlement	(11,543)
Changes in fair value included in income	1,109	(4,828)	9,026	(14,757)
Balance at the end of the quarter	223,275	248,763	223,275	248,763
Changes in fair value recognized during the period relating to liability still outstanding at the end of the period	1,109	(4,828)	9,026	(14,757)
Recurring basis | Excess Servicing Spread Financing Pursuant to Recapture Agreement
Roll forward of liabilities measured using Level 3 inputs on a recurring basis
Issuances	499	1,207
Recurring basis | Mortgage servicing liabilities
Roll forward of liabilities measured using Level 3 inputs on a recurring basis
Balance at the beginning of the quarter	10,253	18,295	14,120	15,192
Mortgage servicing liabilities resulting from mortgage loan sales	1,741	4,071	5,548	11,940
Changes in fair value included in income	(2,225)	(6,290)	(9,899)	(11,056)
Balance at the end of the quarter	9,769	16,076	9,769	16,076
Changes in fair value recognized during the period relating to liability still outstanding at the end of the period	(2,225)	(6,290)	(9,899)	(11,056)
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 quarter	334,166	380,084	782,211	47,271
Balance after reclassification					782,211
Purchases	1,008,662		2,480,523	1,815,509
Purchases and issuances, net		499,546
Sales and repayments	(231,921)	(306,458)	(1,122,448)	(845,318)
Changes in fair value included in income arising from:
Changes in instrument specific credit risk	84	(1,130)	(4,944)	(6,104)
Total changes in fair value included in income	84	(1,130)	(4,944)	(6,104)
Transfers from mortgage loans held for sale from Level 3 to Level 2	(744,324)	(195,802)	(1,765,854)	(635,118)
Transfers to real estate acquired in settlement of loans	(1,364)		(4,185)
Balance at the end of the quarter	365,303	376,240	365,303	376,240
Changes in fair value recognized during the period relating to assets still held at the end of the period	(4,811)	(2,851)	(4,912)	(3,733)
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 quarter	55,689	46,158	58,272	59,391
Balance after reclassification					58,272
Purchases	41,721		157,649	226,617
Purchases and issuances, net		83,798
Changes in fair value included in income arising from:
Other factors	10,696	41,693	(28,627)	99,425
Total changes in fair value included in income	10,696	41,693	(28,627)	99,425
Transfers from interest rate lock commitments to mortgage loans held for sale	(70,943)	(117,265)	(150,131)	(331,049)
Balance at the end of the quarter	37,163	54,384	37,163	54,384
Changes in fair value recognized during the period relating to assets still held at the end of the period	37,163	54,384	37,163	54,384
Recurring basis | Repurchase agreement derivatives
Roll forward of assets measured using Level 3 inputs on a recurring basis
Balance at the beginning of the quarter	25,781		10,656
Balance after reclassification					10,656
Purchases	12,903		36,624	469
Purchases and issuances, net		469
Sales and repayments	(11,982)		(19,460)
Changes in fair value included in income arising from:
Other factors	(227)		(1,345)
Total changes in fair value included in income	(227)		(1,345)
Balance at the end of the quarter	26,475	469	26,475	469
Recurring basis | Mortgage servicing rights
Roll forward of assets measured using Level 3 inputs on a recurring basis
Balance at the beginning of the quarter	2,486,157	678,441	638,010	515,925
Reclassification of mortgage servicing rights previously accounted for under the amortization method					1,482,426
Balance after reclassification					$ 2,120,436
Purchases	163,511		193,640	183,830
Purchases and issuances, net		41
Mortgage servicing rights resulting from mortgage loan sales	149,000	5,773	448,604	19,702
Changes in fair value included in income arising from:
Other factors	(12,704)	(28,271)	23,284	(63,473)
Total changes in fair value included in income	(12,704)	(28,271)	23,284	(63,473)
Balance at the end of the quarter	2,785,964	655,984	2,785,964	655,984
Changes in fair value recognized during the period relating to assets still held at the end of the period	$ (12,704)	$ (28,271)	$ 23,284	$ (63,473)

Fair Value - Changes in Fair Va

Fair Value - Changes in Fair Value, Fair Value Option, Recurring Basis (Details) - Recurring basis - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
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	$ 1,116	$ 11,118	$ 873	$ 25,813
Liabilities. | Net loan servicing fees
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	1,116	11,118	873	25,813
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	(1,109)	4,828	(9,026)	14,757
Excess servicing spread financing | Net loan servicing fees
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	(1,109)	4,828	(9,026)	14,757
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	2,225	6,290	9,899	11,056
Mortgage servicing liabilities | Net loan servicing fees
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	2,225	6,290	9,899	11,056
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	55,005	102,598	141,736	273,363
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	67,709	130,869	118,452	336,836
Assets | Net loan servicing fees
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	(12,704)	(28,271)	23,284	(63,473)
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	67,709	130,869	118,452	336,836
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	67,709	130,869	118,452	336,836
Mortgage servicing rights 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	(12,704)	(28,271)	23,284	(63,473)
Mortgage servicing rights at fair value | Net loan servicing fees
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	$ (12,704)	$ (28,271)	$ 23,284	$ (63,473)

Fair Value - Fair Value Option

Fair Value - Fair Value Option Maturities, Recurring Basis (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Fair value
Total fair value	$ 2,416,955	$ 3,099,103
Recurring basis
Fair value
Total fair value	2,416,955	3,099,103
Mortgage loans held for sale | Recurring basis
Fair value
Current through 89 days delinquent	2,148,919	2,430,517
Not in foreclosure	215,712	614,329
In foreclosure	52,324	54,257
Total fair value	2,416,955	3,099,103
Principal amount due upon maturity
Current through 89 days delinquent	2,078,047	2,326,772
Not in foreclosure	218,623	614,357
In foreclosure	56,101	57,248
Total principal amount due upon maturity	2,352,771	2,998,377
Difference
Current through 89 days delinquent	70,872	103,745
Not in foreclosure	(2,911)	(28)
In foreclosure	(3,777)	(2,991)
Total difference	$ 64,184	$ 100,726

Fair Value - Measurement Basis,

Fair Value - Measurement Basis, Nonrecurring (Details) - Nonrecurring basis - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Financial statement items measured at fair value on a nonrecurring basis
Mortgage servicing rights at lower of amortized cost or fair value					$ 1,463,552
Real estate acquired in settlement of loans	$ 2,134		$ 2,134		2,355
Total assets					1,465,907
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		$ (17,270)		$ (33,906)
Real estate acquired in settlement of loans	(41)	17	(72)	102
Total gains on assets measured at estimated fair values on a nonrecurring basis	(41)	$ (17,253)	(72)	$ (33,804)
Level 3
Financial statement items measured at fair value on a nonrecurring basis
Mortgage servicing rights at lower of amortized cost or fair value					1,463,552
Real estate acquired in settlement of loans	$ 2,134		$ 2,134		2,355
Total assets					$ 1,465,907

Fair Value - Level 3 Unobservab

Fair Value - Level 3 Unobservable Inputs, Mortgage Loans and IRLC (Details) - item	Sep. 30, 2018	Dec. 31, 2017
Mortgage loans held for sale | Discount rate | Level 3 | Minimum
Excess servicing spread financing
Input	2.8	2.9
Mortgage loans held for sale | Discount rate | Level 3 | Maximum
Excess servicing spread financing
Input	9.2	10
Mortgage loans held for sale | Discount rate | Level 3 | Weighted average
Excess servicing spread financing
Input	2.9	2.9
Mortgage loans held for sale | Twelve-month projected housing price index Change | Level 3 | Minimum
Excess servicing spread financing
Input	3.5	3.1
Mortgage loans held for sale | Twelve-month projected housing price index Change | Level 3 | Maximum
Excess servicing spread financing
Input	6.1	5.6
Mortgage loans held for sale | Twelve-month projected housing price index Change | Level 3 | Weighted average
Excess servicing spread financing
Input	3.9	3.6
Mortgage loans held for sale | Prepayment/resale speed | Level 3 | Minimum
Excess servicing spread financing
Input	0.1	0.2
Mortgage loans held for sale | Prepayment/resale speed | Level 3 | Maximum
Excess servicing spread financing
Input	71	72.2
Mortgage loans held for sale | Prepayment/resale speed | Level 3 | Weighted average
Excess servicing spread financing
Input	24.2	44.6
Mortgage loans held for sale | Total prepayment speed | Level 3 | Minimum
Excess servicing spread financing
Input	0.1	0.2
Mortgage loans held for sale | Total prepayment speed | Level 3 | Maximum
Excess servicing spread financing
Input	72.1	75.2
Mortgage loans held for sale | Total prepayment speed | Level 3 | Weighted average
Excess servicing spread financing
Input	41.3	55.8
Interest rate lock commitments | Pull-through rate | Level 3 | Minimum
Excess servicing spread financing
Input	16.6	25
Interest rate lock commitments | Pull-through rate | Level 3 | Maximum
Excess servicing spread financing
Input	100	100
Interest rate lock commitments | Pull-through rate | Level 3 | Weighted average
Excess servicing spread financing
Input	85.7	85.6
Interest rate lock commitments | Mortgage servicing rights value expressed as servicing fee multiple | Level 3 | Minimum
Excess servicing spread financing
Input	1.6	1.4
Interest rate lock commitments | Mortgage servicing rights value expressed as servicing fee multiple | Level 3 | Maximum
Excess servicing spread financing
Input	5.9	5.8
Interest rate lock commitments | Mortgage servicing rights value expressed as servicing fee multiple | Level 3 | Weighted average
Excess servicing spread financing
Input	4	4
Interest rate lock commitments | Percentage of unpaid principal balance | Level 3 | Minimum
Excess servicing spread financing
Input	0.4	0.3
Interest rate lock commitments | Percentage of unpaid principal balance | Level 3 | Maximum
Excess servicing spread financing
Input	2.8	3
Interest rate lock commitments | Percentage of unpaid principal balance | Level 3 | Weighted average
Excess servicing spread financing
Input	1.4	1.4
Repurchase agreement derivatives
Excess servicing spread financing
Acceptance rate (as a percent)	97.00%	97.00%

Fair Value - Level 3 Unobserv_2

Fair Value - Level 3 Unobservable Inputs, Mortgage Servicing Rights - Initial Recognition (Details)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2018USD ($)item	Sep. 30, 2017USD ($)item	Sep. 30, 2018USD ($)item	Sep. 30, 2017USD ($)item	Dec. 31, 2017USD ($)
Mortgage servicing rights
MSR and pool characteristics
Amount recognized | $	$ 149,000,000	$ 5,773,000	$ 448,604,000	$ 19,702,000
Fair Values | Mortgage servicing rights | Level 3
MSR and pool characteristics
Weighted-average servicing fee rate (as a percent)			0.32%		0.32%
Fair Values | Mortgage servicing rights | Level 3 | Minimum
Inputs:
Annual per-loan cost of servicing | $			$ 78		$ 78
Fair Values | Mortgage servicing rights | Level 3 | Maximum
Inputs:
Annual per-loan cost of servicing | $			98		97
Fair Values | Mortgage servicing rights | Level 3 | Weighted average
Inputs:
Annual per-loan cost of servicing | $			93		$ 89
Fair Values | MSRs at the time of initial recognition, excluding MSR purchases | Level 3
MSR and pool characteristics
Amount recognized | $	149,000,000	5,773,000	448,604,000,000	19,702,000,000
Unpaid principal balance of underlying mortgage loans | $	$ 10,790,398,000	$ 573,463,000	$ 32,095,458,000,000	$ 1,873,404,000,000
Weighted-average servicing fee rate (as a percent)	0.37%	0.31%	0.36%	0.31%
Fair Values | MSRs at the time of initial recognition, excluding MSR purchases | Level 3 | Minimum
Inputs:
Annual per-loan cost of servicing | $	$ 78	$ 78	$ 78	$ 78
Fair Values | MSRs at the time of initial recognition, excluding MSR purchases | Level 3 | Maximum
Inputs:
Annual per-loan cost of servicing | $	98	98	98	101
Fair Values | MSRs at the time of initial recognition, excluding MSR purchases | Level 3 | Weighted average
Inputs:
Annual per-loan cost of servicing | $	$ 92	$ 89	$ 90	$ 89
Fair Values | MSRs at the time of initial recognition, excluding MSR purchases | Pricing spread | Level 3 | Minimum
Inputs:
Input	7.3	7.6	7.3	7.6
Fair Values | MSRs at the time of initial recognition, excluding MSR purchases | Pricing spread | Level 3 | Maximum
Inputs:
Input	13.6	11.2	14.1	11.2
Fair Values | MSRs at the time of initial recognition, excluding MSR purchases | Pricing spread | Level 3 | Weighted average
Inputs:
Input	10.1	10.7	10.2	10.5
Fair Values | MSRs at the time of initial recognition, excluding MSR purchases | Annual total prepayment speed | Level 3 | Minimum
Inputs:
Input	4.4	3.9	3.9	3.9
Fair Values | MSRs at the time of initial recognition, excluding MSR purchases | Annual total prepayment speed | Level 3 | Maximum
Inputs:
Input	55.7	46.8	61.8	71.8
Fair Values | MSRs at the time of initial recognition, excluding MSR purchases | Annual total prepayment speed | Level 3 | Weighted average
Inputs:
Input	11.8	13.3	10.6	12.5
Fair Values | MSRs at the time of initial recognition, excluding MSR purchases | Life | Level 3 | Minimum
Inputs:
Input	0.5	1.4	0.5	0.8
Fair Values | MSRs at the time of initial recognition, excluding MSR purchases | Life | Level 3 | Maximum
Inputs:
Input	11.3	11.4	11.6	11.5
Fair Values | MSRs at the time of initial recognition, excluding MSR purchases | Life | Level 3 | Weighted average
Inputs:
Input	6.9	6.3	7.5	6.6
Amortized cost | Mortgage servicing rights | Level 3
MSR and pool characteristics
Weighted-average servicing fee rate (as a percent)					0.31%
Amortized cost | Mortgage servicing rights | Level 3 | Minimum
Inputs:
Annual per-loan cost of servicing | $					$ 79
Amortized cost | Mortgage servicing rights | Level 3 | Maximum
Inputs:
Annual per-loan cost of servicing | $					97
Amortized cost | Mortgage servicing rights | Level 3 | Weighted average
Inputs:
Annual per-loan cost of servicing | $					$ 89
Amortized cost | MSRs at the time of initial recognition, excluding MSR purchases | Level 3
MSR and pool characteristics
Amount recognized | $		$ 153,061,000		$ 412,206,000,000
Unpaid principal balance of underlying mortgage loans | $		$ 12,184,003,000		$ 33,890,209,000,000
Weighted-average servicing fee rate (as a percent)		0.32%		0.30%
Amortized cost | MSRs at the time of initial recognition, excluding MSR purchases | Level 3 | Minimum
Inputs:
Annual per-loan cost of servicing | $		$ 79		$ 79
Amortized cost | MSRs at the time of initial recognition, excluding MSR purchases | Level 3 | Maximum
Inputs:
Annual per-loan cost of servicing | $		98		101
Amortized cost | MSRs at the time of initial recognition, excluding MSR purchases | Level 3 | Weighted average
Inputs:
Annual per-loan cost of servicing | $		$ 89		$ 89
Amortized cost | MSRs at the time of initial recognition, excluding MSR purchases | Pricing spread | Level 3 | Minimum
Inputs:
Input		7.6		7.6
Amortized cost | MSRs at the time of initial recognition, excluding MSR purchases | Pricing spread | Level 3 | Maximum
Inputs:
Input		14.6		15.2
Amortized cost | MSRs at the time of initial recognition, excluding MSR purchases | Pricing spread | Level 3 | Weighted average
Inputs:
Input		10.8		10.7
Amortized cost | MSRs at the time of initial recognition, excluding MSR purchases | Annual total prepayment speed | Level 3 | Minimum
Inputs:
Input		4.4		3.4
Amortized cost | MSRs at the time of initial recognition, excluding MSR purchases | Annual total prepayment speed | Level 3 | Maximum
Inputs:
Input		47.6		47.6
Amortized cost | MSRs at the time of initial recognition, excluding MSR purchases | Annual total prepayment speed | Level 3 | Weighted average
Inputs:
Input		9.5		9.1
Amortized cost | MSRs at the time of initial recognition, excluding MSR purchases | Life | Level 3 | Minimum
Inputs:
Input		1.5		1.5
Amortized cost | MSRs at the time of initial recognition, excluding MSR purchases | Life | Level 3 | Maximum
Inputs:
Input		11.4		12.2
Amortized cost | MSRs at the time of initial recognition, excluding MSR purchases | Life | Level 3 | Weighted average
Inputs:
Input		7.9		8.1

Fair Value - Level 3 Unobserv_3

Fair Value - Level 3 Unobservable Inputs, Mortgage Servicing Rights, Effect of Change In Inputs on Fair Value (Details) - Level 3	9 Months Ended	12 Months Ended
	Sep. 30, 2018USD ($)item	Dec. 31, 2017USD ($)item
Mortgage servicing liabilities
MSR and pool characteristics
Carrying value	$ 9,769,000	$ 14,120,000
Unpaid principal balance of underlying mortgage loans	$ 1,265,461,000	$ 1,620,609,000
Weighted-average servicing fee rate (as a percent)	25.00%	0.25%
Prepayment speed
Annual per-loan cost of servicing	$ 372	$ 404
Mortgage servicing liabilities | Pricing spread
Inputs
Input | item	7.8	7.7
Mortgage servicing liabilities | Annual total prepayment speed
Inputs
Input | item	31.6	32.9
Mortgage servicing liabilities | Life
Inputs
Input | item	3.9	3.5
Fair Values | Mortgage servicing rights
MSR and pool characteristics
Carrying value	$ 2,785,964,000	$ 638,010,000
Unpaid principal balance of underlying mortgage loans	$ 193,659,378,000	$ 51,883,539,000
Weighted-average note interest rate (as a percent)	3.90%	4.00%
Weighted-average servicing fee rate (as a percent)	0.32%	0.32%
Pricing spread
Effect on fair value of 5% adverse change	$ (51,013,000)	$ (10,760,000)
Effect on fair value of 10% adverse change	(100,182,000)	(21,155,000)
Effect on fair value of 20% adverse change	(193,355,000)	(40,916,000)
Prepayment speed
Effect on fair value of 5% adverse change	(36,453,000)	(10,809,000)
Effect on fair value of 10% adverse change	(71,779,000)	(21,239,000)
Effect on fair value of 20% adverse change	(139,263,000)	(41,038,000)
Annual per-loan cost of servicing
Effect on fair value of 5% adverse change	(22,201,000)	(6,247,000)
Effect on fair value of 10% adverse change	(44,402,000)	(12,494,000)
Effect on fair value of 20% adverse change	(88,803,000)	(24,987,000)
Fair Values | Mortgage servicing rights | Minimum
Prepayment speed
Annual per-loan cost of servicing	78	78
Fair Values | Mortgage servicing rights | Maximum
Prepayment speed
Annual per-loan cost of servicing	98	97
Fair Values | Mortgage servicing rights | Weighted average
Prepayment speed
Annual per-loan cost of servicing	$ 93	$ 89
Fair Values | Mortgage servicing rights | Pricing spread | Minimum
Inputs
Input | item	7.3	7.6
Fair Values | Mortgage servicing rights | Pricing spread | Maximum
Inputs
Input | item	13.6	14.1
Fair Values | Mortgage servicing rights | Pricing spread | Weighted average
Inputs
Input | item	10	9.8
Fair Values | Mortgage servicing rights | Annual total prepayment speed | Minimum
Inputs
Input | item	6.9	7.9
Fair Values | Mortgage servicing rights | Annual total prepayment speed | Maximum
Inputs
Input | item	41.6	46.2
Fair Values | Mortgage servicing rights | Annual total prepayment speed | Weighted average
Inputs
Input | item	8.2	10.5
Fair Values | Mortgage servicing rights | Life | Minimum
Inputs
Input | item	1.3	1.2
Fair Values | Mortgage servicing rights | Life | Maximum
Inputs
Input | item	8.5	7.8
Fair Values | Mortgage servicing rights | Life | Weighted average
Inputs
Input | item	8.1	6.6
Amortized cost | Mortgage servicing rights
MSR and pool characteristics
Carrying value		$ 1,481,578,000
Unpaid principal balance of underlying mortgage loans		$ 114,365,698,000
Weighted-average note interest rate (as a percent)		3.80%
Weighted-average servicing fee rate (as a percent)		0.31%
Pricing spread
Effect on fair value of 5% adverse change		$ (27,700,000)
Effect on fair value of 10% adverse change		(54,376,000)
Effect on fair value of 20% adverse change		(104,869,000)
Prepayment speed
Effect on fair value of 5% adverse change		(23,544,000)
Effect on fair value of 10% adverse change		(46,284,000)
Effect on fair value of 20% adverse change		(89,514,000)
Annual per-loan cost of servicing
Effect on fair value of 5% adverse change		(11,216,000)
Effect on fair value of 10% adverse change		(22,431,000)
Effect on fair value of 20% adverse change		(44,863,000)
Amortized cost | Mortgage servicing rights | Minimum
Prepayment speed
Annual per-loan cost of servicing		79
Amortized cost | Mortgage servicing rights | Maximum
Prepayment speed
Annual per-loan cost of servicing		97
Amortized cost | Mortgage servicing rights | Weighted average
Prepayment speed
Annual per-loan cost of servicing		$ 89
Amortized cost | Mortgage servicing rights | Pricing spread | Minimum
Inputs
Input | item		7.6
Amortized cost | Mortgage servicing rights | Pricing spread | Maximum
Inputs
Input | item		14.1
Amortized cost | Mortgage servicing rights | Pricing spread | Weighted average
Inputs
Input | item		10.3
Amortized cost | Mortgage servicing rights | Annual total prepayment speed | Minimum
Inputs
Input | item		7.4
Amortized cost | Mortgage servicing rights | Annual total prepayment speed | Maximum
Inputs
Input | item		44.1
Amortized cost | Mortgage servicing rights | Annual total prepayment speed | Weighted average
Inputs
Input | item		9.7
Amortized cost | Mortgage servicing rights | Life | Minimum
Inputs
Input | item		2
Amortized cost | Mortgage servicing rights | Life | Maximum
Inputs
Input | item		8.3
Amortized cost | Mortgage servicing rights | Life | Weighted average
Inputs
Input | item		7.5

Fair Value - Level 3 Unobserv_4

Fair Value - Level 3 Unobservable Inputs, ESS (Details) - Excess servicing spread financing - Level 3 $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2018USD ($)item	Dec. 31, 2017USD ($)item
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items]
Carrying value | $	$ 223,275	$ 236,534
Unpaid principal balance of underlying mortgage loans | $	$ 24,058,366	$ 27,217,199
Average servicing fee rate (as a percent)	0.34%	0.34%
Average excess servicing spread (as a percent)	0.19%	0.19%
Pricing spread | Minimum
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items]
Input	3.4	3.8
Pricing spread | Maximum
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items]
Input	3.9	4.3
Pricing spread | Weighted average
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items]
Input	3.7	4.1
Annual total prepayment speed | Minimum
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items]
Input	7.6	8.4
Annual total prepayment speed | Maximum
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items]
Input	38.4	41.4
Annual total prepayment speed | Weighted average
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items]
Input	9	10.8
Life | Minimum
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items]
Input	1.4	1.4
Life | Maximum
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items]
Input	8	7.7
Life | Weighted average
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items]
Input	7.1	6.5

Fair Value - Level 3 Unobserv_5

Fair Value - Level 3 Unobservable Inputs, Mortgage Servicing Liabilities (Details) - Mortgage servicing liabilities - Level 3	9 Months Ended	12 Months Ended
	Sep. 30, 2018USD ($)item	Dec. 31, 2017USD ($)item
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items]
Carrying value | $	$ 9,769,000	$ 14,120,000
Unpaid principal balance of underlying mortgage loans | $	$ 1,265,461,000	$ 1,620,609,000
Weighted-average servicing fee rate (as a percent)	25.00%	0.25%
Annual per-loan cost of servicing | $	$ 372	$ 404
Pricing spread
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items]
Input | item	7.8	7.7
Annual total prepayment speed
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items]
Input | item	31.6	32.9
Life
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items]
Input | item	3.9	3.5

Mortgage Loans Held for Sale _3

Mortgage Loans Held for Sale at Fair Value (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Mortgage Loans Held for Sale at Fair Value
Mortgage loans held for sale at fair value	$ 2,416,955	$ 3,099,103
Fair value of mortgage loans pledged to secure assets sold under agreements to repurchase	1,841,097	2,530,299
Fair value of mortgage loans pledged to secure mortgage loan participation and sale agreement	547,969	551,688
Pledged Assets Separately Reported, Loans Pledged as Collateral, at Fair Value, Total	2,389,066	3,081,987
Government-insured or guaranteed
Mortgage Loans Held for Sale at Fair Value
Mortgage loans held for sale at fair value	1,892,992	2,085,764
Conventional mortgage loans
Mortgage Loans Held for Sale at Fair Value
Mortgage loans held for sale at fair value	158,660	231,128
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	354,076	777,300
Mortgage loans repurchased pursuant to representations and warranties
Mortgage Loans Held for Sale at Fair Value
Mortgage loans held for sale at fair value	$ 11,227	$ 4,911

Derivative Activities - Other I

Derivative Activities - Other Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Dec. 31, 2017
Derivative assets:
Derivative asset, before netting					$ 92,814	$ 85,046
Netting					(19,196)	(6,867)
Total derivative assets					73,618	78,179
Derivative liabilities:
Derivative liability, before netting					36,261	10,043
Netting					(23,568)	(4,247)
Net amounts of liabilities presented in the consolidated balance sheet					12,693	5,796
Interest Expense. | Repurchase agreement derivative
Activity for derivative contracts used to hedge the IRLCs and inventory of mortgage loans at notional value
Gains (losses) recognized on derivative financial instruments	$ (227)		$ (1,345)
Net gains on mortgage loans held for sale at fair value | Interest rate lock commitments and mortgage loans held for sale
Activity for derivative contracts used to hedge the IRLCs and inventory of mortgage loans at notional value
Gains (losses) recognized on derivative financial instruments	10,820	$ (26,981)	100,422	$ (27,191)
Net loan servicing fees | Mortgage servicing rights
Activity for derivative contracts used to hedge the IRLCs and inventory of mortgage loans at notional value
Gains (losses) recognized on derivative financial instruments	(52,971)	7,174	(180,853)	(17,018)
Margin Deposits
Derivative assets:
Derivative asset, before netting					(4,372)	2,620
Interest rate lock commitments
Derivative assets:
Total derivative assets					41,075	60,012
Interest rate lock commitments | 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
Gains (losses) recognized on derivative financial instruments	(18,526)	8,226	(21,109)	(5,008)
Forward contracts | Purchases
Derivative Instruments
Notional amount	7,115,621		4,920,883		7,115,621	4,920,883
Derivative assets:
Derivative asset, before netting					821	4,288
Derivative liabilities:
Derivative liability, before netting					29,569	1,272
Activity for derivative contracts used to hedge the IRLCs and inventory of mortgage loans at notional value
Balance at beginning of quarter			4,920,883
Balance end of quarter	7,115,621		7,115,621
Forward contracts | Sales
Derivative Instruments
Notional amount	6,711,197		5,204,796		6,711,197	5,204,796
Derivative assets:
Derivative asset, before netting					16,892	2,101
Derivative liabilities:
Derivative liability, before netting					2,780	7,031
Activity for derivative contracts used to hedge the IRLCs and inventory of mortgage loans at notional value
Balance at beginning of quarter			5,204,796
Balance end of quarter	6,711,197		6,711,197
MBS put options
Derivative Instruments
Notional amount	4,150,000		4,925,000		4,150,000	4,925,000
Derivative assets:
Derivative asset, before netting					4,413	3,481
Activity for derivative contracts used to hedge the IRLCs and inventory of mortgage loans at notional value
Balance at beginning of quarter			4,925,000
Balance end of quarter	4,150,000		4,150,000
MBS call options
Derivative Instruments
Notional amount	1,250,000		1,250,000		1,250,000
Derivative assets:
Derivative asset, before netting					12
Activity for derivative contracts used to hedge the IRLCs and inventory of mortgage loans at notional value
Balance end of quarter	1,250,000		1,250,000
Put options on interest rate futures | Purchases
Derivative Instruments
Notional amount	2,225,000		2,125,000		2,225,000	2,125,000
Derivative assets:
Derivative asset, before netting					3,063	3,570
Activity for derivative contracts used to hedge the IRLCs and inventory of mortgage loans at notional value
Balance at beginning of quarter			2,125,000
Balance end of quarter	2,225,000		2,225,000
Put options on interest rate futures | Sales
Derivative Instruments
Notional amount	300,000		300,000		300,000
Activity for derivative contracts used to hedge the IRLCs and inventory of mortgage loans at notional value
Balance end of quarter	300,000		300,000
Call options on interest rate futures | Purchases
Derivative Instruments
Notional amount	400,000		100,000		400,000	100,000
Derivative assets:
Derivative asset, before netting					63	938
Activity for derivative contracts used to hedge the IRLCs and inventory of mortgage loans at notional value
Balance at beginning of quarter			100,000
Balance end of quarter	400,000		400,000
Treasury future | Purchases
Derivative Instruments
Notional amount	835,000		100,000		835,000	100,000
Activity for derivative contracts used to hedge the IRLCs and inventory of mortgage loans at notional value
Balance at beginning of quarter			100,000
Balance end of quarter	835,000		835,000
Treasury future | Sales
Derivative Instruments
Notional amount	1,450,000		1,450,000		1,450,000
Activity for derivative contracts used to hedge the IRLCs and inventory of mortgage loans at notional value
Balance end of quarter	1,450,000		1,450,000
Interest rate swap futures | Purchases
Derivative Instruments
Notional amount			1,400,000			1,400,000
Activity for derivative contracts used to hedge the IRLCs and inventory of mortgage loans at notional value
Balance at beginning of quarter			1,400,000
Interest rate swap futures | Sales
Derivative Instruments
Notional amount	625,000		625,000		625,000
Activity for derivative contracts used to hedge the IRLCs and inventory of mortgage loans at notional value
Balance end of quarter	625,000		625,000
Not designated as hedging instrument | Repurchase agreement derivatives
Derivative assets:
Derivative asset, before netting					26,475	10,656
Not designated as hedging instrument | Interest rate lock commitments
Derivative Instruments
Notional amount	3,388,437		3,654,955		3,388,437	3,654,955
Derivative assets:
Derivative asset, before netting					41,075	60,012
Derivative liabilities:
Derivative liability, before netting					3,912	1,740
Activity for derivative contracts used to hedge the IRLCs and inventory of mortgage loans at notional value
Balance at beginning of quarter			3,654,955
Balance end of quarter	3,388,437		3,388,437
Not designated as hedging instrument | Forward contracts | Purchases
Derivative Instruments
Notional amount	6,617,888	7,819,706	4,920,883	12,746,191	7,115,621	4,920,883
Activity for derivative contracts used to hedge the IRLCs and inventory of mortgage loans at notional value
Balance at beginning of quarter	6,617,888	7,819,706	4,920,883	12,746,191
Additions	47,038,415	47,723,376	140,158,865	136,663,951
Dispositions/expirations	(46,540,682)	(48,242,564)	(137,964,127)	(142,109,624)
Balance end of quarter	7,115,621	7,300,518	7,115,621	7,300,518
Not designated as hedging instrument | Forward contracts | Sales
Derivative Instruments
Notional amount	7,107,202	7,641,979	5,204,796	16,577,942	6,711,197	5,204,796
Activity for derivative contracts used to hedge the IRLCs and inventory of mortgage loans at notional value
Balance at beginning of quarter	7,107,202	7,641,979	5,204,796	16,577,942
Additions	58,521,199	61,239,459	174,562,881	169,173,906
Dispositions/expirations	(58,917,204)	(61,296,545)	(173,056,480)	(178,166,955)
Balance end of quarter	6,711,197	7,584,893	6,711,197	7,584,893
Not designated as hedging instrument | MBS put options
Derivative Instruments
Notional amount	2,675,000	6,075,000	4,925,000	1,175,000	4,150,000	4,925,000
Activity for derivative contracts used to hedge the IRLCs and inventory of mortgage loans at notional value
Balance at beginning of quarter	2,675,000	6,075,000	4,925,000	1,175,000
Additions	8,375,000	6,825,000	17,250,000	19,675,000
Dispositions/expirations	(6,900,000)	(7,250,000)	(18,025,000)	(15,200,000)
Balance end of quarter	4,150,000	5,650,000	4,150,000	5,650,000
Not designated as hedging instrument | MBS call options
Derivative Instruments
Notional amount	1,250,000	650,000	1,250,000	1,600,000	1,250,000
Activity for derivative contracts used to hedge the IRLCs and inventory of mortgage loans at notional value
Balance at beginning of quarter				1,600,000
Additions	1,250,000	7,900,000	12,375,000	12,100,000
Dispositions/expirations		(7,250,000)	(11,125,000)	(13,050,000)
Balance end of quarter	1,250,000	650,000	1,250,000	650,000
Not designated as hedging instrument | Put options on interest rate futures | Purchases
Derivative Instruments
Notional amount	1,852,500	1,250,000	2,125,000	1,125,000	2,225,000	2,125,000
Activity for derivative contracts used to hedge the IRLCs and inventory of mortgage loans at notional value
Balance at beginning of quarter	1,852,500	1,250,000	2,125,000	1,125,000
Additions	4,922,300	2,950,000	16,624,800	7,410,000
Dispositions/expirations	(4,549,800)	(3,175,000)	(16,524,800)	(7,510,000)
Balance end of quarter	2,225,000	1,025,000	2,225,000	1,025,000
Not designated as hedging instrument | Put options on interest rate futures | Sales
Derivative Instruments
Notional amount	300,000	200,000	300,000		300,000
Activity for derivative contracts used to hedge the IRLCs and inventory of mortgage loans at notional value
Balance at beginning of quarter		200,000
Additions	4,849,800	2,975,000	16,824,800	7,510,000
Dispositions/expirations	(4,549,800)	(3,175,000)	(16,524,800)	(7,510,000)
Balance end of quarter	300,000		300,000
Not designated as hedging instrument | Call options on interest rate futures | Purchases
Derivative Instruments
Notional amount	800,000	200,000	100,000	900,000	400,000	100,000
Activity for derivative contracts used to hedge the IRLCs and inventory of mortgage loans at notional value
Balance at beginning of quarter	800,000	200,000	100,000	900,000
Additions	950,000	125,000	2,400,000	1,614,300
Dispositions/expirations	(1,350,000)	(200,000)	(2,100,000)	(2,389,300)
Balance end of quarter	400,000	125,000	400,000	125,000
Not designated as hedging instrument | Call options on interest rate futures | Sales
Derivative Instruments
Notional amount		125,000		125,000
Activity for derivative contracts used to hedge the IRLCs and inventory of mortgage loans at notional value
Additions	1,350,000	325,000	2,100,000	2,514,300
Dispositions/expirations	(1,350,000)	(200,000)	(2,100,000)	(2,389,300)
Balance end of quarter		125,000		125,000
Not designated as hedging instrument | Treasury future | Purchases
Derivative Instruments
Notional amount	835,000		100,000		835,000	100,000
Activity for derivative contracts used to hedge the IRLCs and inventory of mortgage loans at notional value
Balance at beginning of quarter	835,000		100,000
Additions	2,557,100	46,500	7,453,300	212,600
Dispositions/expirations	(2,557,100)	(46,500)	(6,718,300)	(212,600)
Balance end of quarter	835,000		835,000
Not designated as hedging instrument | Treasury future | Sales
Derivative Instruments
Notional amount	1,450,000		1,450,000		1,450,000
Activity for derivative contracts used to hedge the IRLCs and inventory of mortgage loans at notional value
Balance at beginning of quarter	1,450,000
Additions	2,557,100	46,500	8,829,600	212,600
Dispositions/expirations	(2,557,100)	(46,500)	(7,379,600)	(212,600)
Balance end of quarter	1,450,000		1,450,000
Not designated as hedging instrument | Interest rate swap futures | Purchases
Derivative Instruments
Notional amount	465,000	325,000	1,400,000	200,000		$ 1,400,000
Activity for derivative contracts used to hedge the IRLCs and inventory of mortgage loans at notional value
Balance at beginning of quarter	465,000	325,000	1,400,000	200,000
Additions	420,000	1,075,000	885,000	1,600,000
Dispositions/expirations	(885,000)		(2,285,000)	(400,000)
Balance end of quarter		$ 1,400,000		1,400,000
Not designated as hedging instrument | Interest rate swap futures | Sales
Derivative Instruments
Notional amount	625,000		625,000		$ 625,000
Activity for derivative contracts used to hedge the IRLCs and inventory of mortgage loans at notional value
Additions	885,000		2,285,000	400,000
Dispositions/expirations	(260,000)		(1,660,000)	$ (400,000)
Balance end of quarter	$ 625,000		$ 625,000

Derivative Activities - Offsett

Derivative Activities - Offsetting of Derivative Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Derivatives not subject to master netting arrangements
Gross amounts of recognized assets	$ 67,550	$ 70,668
Derivatives subject to master netting arrangements:
Gross amounts of recognized assets	25,264	14,378
Gross amounts offset in the consolidated balance sheet	(19,196)	(6,867)
Net amounts of assets presented in the consolidated balance sheet	6,068	7,511
Total
Gross amounts of recognized assets	92,814	85,046
Net amounts of assets presented in the balance sheet	73,618	78,179
Interest rate lock commitments
Derivatives not subject to master netting arrangements
Gross amounts of recognized assets	41,075	60,012
Total
Net amounts of assets presented in the balance sheet	41,075	60,012
Repurchase agreement derivatives
Derivatives not subject to master netting arrangements
Gross amounts of recognized assets	26,475	10,656
MBS put options
Derivatives subject to master netting arrangements:
Gross amounts of recognized assets	4,413	3,481
Net amounts of assets presented in the consolidated balance sheet	4,413	3,481
Total
Gross amounts of recognized assets	4,413	3,481
MBS call options
Derivatives subject to master netting arrangements:
Gross amounts of recognized assets	12
Net amounts of assets presented in the consolidated balance sheet	12
Total
Gross amounts of recognized assets	12
Forward contracts | Purchases
Derivatives subject to master netting arrangements:
Gross amounts of recognized assets	821	4,288
Net amounts of assets presented in the consolidated balance sheet	821	4,288
Total
Gross amounts of recognized assets	821	4,288
Forward contracts | Sales
Derivatives subject to master netting arrangements:
Gross amounts of recognized assets	16,892	2,101
Net amounts of assets presented in the consolidated balance sheet	16,892	2,101
Total
Gross amounts of recognized assets	16,892	2,101
Put options on interest rate futures | Purchases
Derivatives subject to master netting arrangements:
Gross amounts of recognized assets	3,063	3,570
Net amounts of assets presented in the consolidated balance sheet	3,063	3,570
Total
Gross amounts of recognized assets	3,063	3,570
Call options on interest rate futures | Purchases
Derivatives subject to master netting arrangements:
Gross amounts of recognized assets	63	938
Net amounts of assets presented in the consolidated balance sheet	63	938
Total
Gross amounts of recognized assets	63	938
Margin Deposits
Total
Gross amounts of recognized assets	$ (4,372)	$ 2,620

Derivative Activities - Offse_2

Derivative Activities - Offsetting of Derivative Assets - Derivative Assets, Financial Assets, and Collateral Held by Counterparty (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Total
Net amounts of assets presented in the balance sheet	$ 73,618	$ 78,179
Net amount	73,618	78,179
Deutsche Bank AG
Total
Net amounts of assets presented in the balance sheet	26,475	10,656
Net amount	26,475	10,656
RJ O'Brien
Total
Net amounts of assets presented in the balance sheet	3,125	4,508
Net amount	3,125	4,508
Citibank, N.A.
Total
Net amounts of assets presented in the balance sheet	1,222
Net amount	1,222
JP Morgan
Total
Net amounts of assets presented in the balance sheet		267
Net amount		267
Goldman Sachs
Total
Net amounts of assets presented in the balance sheet	646	540
Net amount	646	540
Morgan Stanley Bank
Total
Net amounts of assets presented in the balance sheet	587
Net amount	587
Federal National Mortgage Association
Total
Net amounts of assets presented in the balance sheet		1,092
Net amount		1,092
Other
Total
Net amounts of assets presented in the balance sheet	488	1,104
Net amount	488	1,104
Interest rate lock commitments
Total
Net amounts of assets presented in the balance sheet	41,075	60,012
Net amount	$ 41,075	$ 60,012

Derivative Activities - Offse_3

Derivative Activities - Offsetting of Derivative Assets - Offsetting of Derivative and Financial Liabilities (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2018	Dec. 31, 2017
Derivatives: Subject to master netting arrangements:
Gross amounts of recognized liabilities	$ 32,349	$ 8,303
Netting	(23,568)	(4,247)
Net amounts of liabilities presented in the balance sheet	8,781	4,056
Total
Gross amounts of recognized liabilities	36,261	10,043
Net amounts of liabilities presented in the consolidated balance sheet	12,693	5,796
Mortgage loans sold under agreements to repurchase
Net amounts of liabilities presented in the consolidated balance sheet	1,738,839
Debt Issuance Costs
Debt issuance costs, gross	799	672
Debt issuance costs	799	672
Gross amounts of recognized liabilities	1,739,638	2,381,538
Net amount of liabilities in the consolidated balance sheet	1,739,638	2,381,538
Total
Gross amounts of recognized liabilities	1,775,899	2,391,581
Gross amounts offset in the consolidated balance sheet	(23,568)	(4,247)
Net amounts of liabilities presented in the consolidated balance sheet	1,751,532	2,386,662
Net amount of liabilities in the consolidated balance sheet	12,693	5,796
Receivable from Counterparties
Total
Net amounts of liabilities presented in the consolidated balance sheet	1,752,331	2,387,334
Assets sold under agreements to repurchase
Mortgage loans sold under agreements to repurchase
Gross amounts of recognized liabilities	1,738,839	2,380,866
Net amounts of liabilities presented in the consolidated balance sheet	1,738,839	2,380,866
Net amounts of liabilities presented in the consolidated balance sheet	1,738,839	2,380,866
Debt Issuance Costs
Debt issuance costs	799	672
Net amount of liabilities in the consolidated balance sheet	1,739,638	2,381,538
Forward contracts | Purchases
Derivatives: Subject to master netting arrangements:
Gross amounts of recognized liabilities	29,569	1,272
Net amounts of liabilities presented in the balance sheet	29,569	1,272
Total
Gross amounts of recognized liabilities	29,569	1,272
Forward contracts | Sales
Derivatives: Subject to master netting arrangements:
Gross amounts of recognized liabilities	2,780	7,031
Net amounts of liabilities presented in the balance sheet	2,780	7,031
Total
Gross amounts of recognized liabilities	2,780	7,031
Interest rate lock commitments
Derivatives not subject to master netting arrangements
Gross amounts of recognized liabilities	3,912	1,740
Total
Net amounts of liabilities presented in the consolidated balance sheet	3,912	1,740
Net amount of liabilities in the consolidated balance sheet	$ 3,912	$ 1,740

Derivative Activities - Offse_4

Derivative Activities - Offsetting of Derivative Assets - Derivative Liabilities, Financial Liabilities, and Collateral Held by Counterparty (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Derivative liabilities:
Net amounts of liabilities presented in the consolidated balance sheet	$ 1,751,532	$ 2,386,662
Financial instruments	(1,738,839)	(2,380,866)
Net amount of liabilities in the consolidated balance sheet	12,693	5,796
Credit Suisse First Boston Mortgage Capital LLC
Derivative liabilities:
Net amounts of liabilities presented in the consolidated balance sheet	628,815	1,010,562
Financial instruments	(628,815)	(1,010,320)
Net amount of liabilities in the consolidated balance sheet		242
Bank of America, N.A.
Derivative liabilities:
Net amounts of liabilities presented in the consolidated balance sheet	253,272	406,787
Financial instruments	(247,572)	(406,355)
Net amount of liabilities in the consolidated balance sheet	5,700	432
Deutsche Bank AG
Derivative liabilities:
Net amounts of liabilities presented in the consolidated balance sheet	598,392	593,864
Financial instruments	(598,392)	(593,864)
Barclays
Derivative liabilities:
Net amounts of liabilities presented in the consolidated balance sheet	388	6,387
Financial instruments		(6,387)
Net amount of liabilities in the consolidated balance sheet	388
Royal Bank of Canada
Derivative liabilities:
Net amounts of liabilities presented in the consolidated balance sheet	33,465	24,835
Financial instruments	(33,465)	(23,752)
Net amount of liabilities in the consolidated balance sheet		1,083
JP Morgan
Derivative liabilities:
Net amounts of liabilities presented in the consolidated balance sheet	59,826	90,442
Financial instruments	(58,780)	(90,442)
Net amount of liabilities in the consolidated balance sheet	1,046
Morgan Stanley Bank
Derivative liabilities:
Net amounts of liabilities presented in the consolidated balance sheet	71,210	139,491
Financial instruments	(71,210)	(138,983)
Net amount of liabilities in the consolidated balance sheet		508
Citibank, N.A.
Derivative liabilities:
Net amounts of liabilities presented in the consolidated balance sheet	19,442	23,010
Financial instruments	(19,442)	(23,010)
BNP Paribas
Derivative liabilities:
Net amounts of liabilities presented in the consolidated balance sheet	81,163	87,753
Financial instruments	(81,163)	(87,753)
Other
Derivative liabilities:
Net amounts of liabilities presented in the consolidated balance sheet	1,647	1,791
Net amount of liabilities in the consolidated balance sheet	1,647	1,791
Interest rate lock commitments
Derivative liabilities:
Net amounts of liabilities presented in the consolidated balance sheet	3,912	1,740
Net amount of liabilities in the consolidated balance sheet	$ 3,912	$ 1,740

Carried Interest Due from Inv_3

Carried Interest Due from Investment Funds (Details) - Investment Funds - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Activity in the carried interest
Balance at beginning of quarter	$ 370	$ 71,019	$ 8,552	$ 70,906
Carried Interest recognized during the quarter	(17)	(1,158)	(365)	(1,045)
Cash received during the quarter	$ (353)	(61,314)	$ (8,187)	(61,314)
Balance at end of quarter		$ 8,547		$ 8,547

Mortgage Servicing Rights and_3

Mortgage Servicing Rights and Mortgage Servicing Liabilities - Activity in MSRs at Fair Value (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Jun. 30, 2018	Dec. 31, 2017	Jun. 30, 2017	Dec. 31, 2016
Activity in MSRs carried at fair value
Balance at beginning of quarter			$ 638,010
Change in fair value:
Balance at end of quarter	$ 2,785,964		2,785,964
Mortgage servicing rights
Activity in MSRs carried at fair value
Balance at beginning of quarter	2,486,157	$ 678,441	638,010	$ 515,925
Reclassification of mortgage servicing rights previously accounted for under the amortization method						$ 1,482,426
Balance after reclassification					$ 2,486,157	2,120,436	$ 678,441	$ 515,925
Additions - Purchases	163,511	41	193,640	183,830
Additions - Mortgage servicing rights resulting from mortgage loan sales	149,000	5,773	448,604	19,702
Additions	312,511	5,814	642,244	203,532
Change in fair value:
Changes in valuation inputs used in valuation model	64,293	(4,857)	239,538	(4,453)
Other changes in fair value	(76,997)	(23,414)	(216,254)	(59,020)
Total change in fair value	(12,704)	(28,271)	23,284	(63,473)
Balance at end of quarter	2,785,964	$ 655,984	2,785,964	$ 655,984
Total	$ 2,539,575		$ 2,539,575			$ 630,711

Mortgage Servicing Rights and_4

Mortgage Servicing Rights and Mortgage Servicing Liabilities - Activity in MSRs Carried at Lower of Amortize Cost or FV (Details) - Mortgage servicing rights - USD ($) $ in Thousands	Jan. 01, 2018	Sep. 30, 2017	Sep. 30, 2017	Dec. 31, 2017	Jun. 30, 2017	Dec. 31, 2016
Amortized cost:
Amortized cost at beginning of quarter	$ 1,583,378	$ 1,384,741	$ 1,206,694
Transfer of mortgage servicing rights resulting from change in method of accounting	(1,583,378)
Balance after reclassification					$ 1,384,741	$ 1,206,694
Mortgage servicing rights resulting from mortgage loan sales		153,061	412,206
Amortization		(48,448)	(129,546)
Amortized cost at end of quarter		1,489,354	1,489,354
Valuation allowance:
Balance at beginning of quarter	(101,800)	(111,583)	(94,947)
Reduction resulting from change in method of accounting	$ 101,800
Balance after reclassification					(111,583)	(94,947)
Application of valuation allowance to write down mortgage servicing rights with other-than-temporary impairment		(17,270)	(33,906)
Balance at end of quarter		(128,853)	(128,853)
Additional disclosures
Mortgage servicing rights, net		1,360,501	1,360,501
Fair value of mortgage servicing rights at beginning of year		1,360,578	1,360,578		1,273,364	1,112,302
Fair value of mortgage servicing rights at end of year		$ 1,360,578	$ 1,360,578		$ 1,273,364	$ 1,112,302
Total				$ 1,467,356

Mortgage Servicing Rights and_5

Mortgage Servicing Rights and Mortgage Servicing Liabilities - Mortgage Servicing Liabilities Carried at FV (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Amortized cost:
Mortgage servicing liabilities resulting from mortgage loan sales			$ 5,548	$ 11,940
Mortgage servicing liabilities
Amortized cost:
Balance at beginning of quarter	$ 10,253	$ 18,295	14,120	15,192
Mortgage servicing liabilities resulting from mortgage loan sales	1,741	4,071	5,548	11,940
Changes in valuation inputs used in valuation model	3,410	(176)	8,590	7,819
Other changes in fair value	(5,635)	(6,114)	(18,489)	(18,875)
Total change in fair value	(2,225)	(6,290)	(9,899)	(11,056)
Balance at end of quarter	$ 9,769	$ 16,076	$ 9,769	$ 16,076

Mortgage Servicing Rights and_6

Mortgage Servicing Rights and Mortgage Servicing Liabilities - Servicing, Late, Ancillary and Other Fees Relating to MSRs (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Contractually Specified Servicing Fees, Amount	$ 147,182	$ 126,416	$ 421,536	$ 345,231
Ancillary and other fees
Ancillary Fee Income Generated by Servicing Financial Assets, Amount	17,009	15,548	44,817	38,616
Bank Servicing Fees	109,703	78,081	340,181	199,157
Mortgage servicing rights
Contractually Specified Servicing Fees, Amount	147,182	126,416	421,536	345,231
Ancillary and other fees
Late Fee Income Generated by Servicing Financial Assets, Amount	5,087	6,326	19,595	18,915
Ancillary Fee Income Generated by Servicing Financial Assets, Amount	1,244	1,270	4,620	3,296
Bank Servicing Fees	$ 153,513	$ 134,012	$ 445,751	$ 367,442

Borrowings - Assets Sold Under

Borrowings - Assets Sold Under Agreement to Repurchase (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
During the period:
Total interest expense	$ 4,676	$ 19,203	$ 15,943	$ 52,249
Carrying value:
Unpaid principal balance	1,738,839		1,738,839
Unamortized debt issuance costs and premiums	799		799		$ 672
Total loans sold under agreements to repurchase	1,739,638		1,739,638		2,381,538
Assets sold under agreements to repurchase
During the period:
Average balance of mortgage loans sold under agreements to repurchase	$ 1,563,053	$ 1,960,332	$ 1,618,008	$ 1,854,786
Weighted-average interest rate (as a percent)	3.91%	3.23%	3.72%	3.15%
Total interest expense	$ 4,676	$ 19,203	$ 15,943	$ 52,249
Maximum daily amount outstanding	2,201,880	2,564,756	2,380,121	2,581,199
Carrying value:
Unpaid principal balance	1,738,839		1,738,839		2,380,866
Unamortized debt issuance costs and premiums	799		799		672
Total loans sold under agreements to repurchase	$ 1,739,638		$ 1,739,638		$ 2,381,538
Weighted average interest rate (as a percent)	3.93%		3.93%		3.24%
Available borrowing capacity committed	$ 449,370		$ 449,370		$ 316,503
Available borrowing capacity uncommitted	2,796,791		2,796,791		2,257,631
Available borrowing capacity	3,246,161		3,246,161		2,574,134
Margin deposits placed with counterparties	3,750		3,750		3,750
Amortization of premium	10,900	$ 3,000	29,700	$ 7,900
Amount of Master Repurchase Agreement incentives to refinance include in interest expense	12,800		$ 35,500
Initial term of Master Repurchase Agreement			6 months
Assets sold under agreements to repurchase | Mortgage Loans held for sale
Carrying value:
Fair value of assets pledged to secure	1,841,097		$ 1,841,097		2,530,299
Assets sold under agreements to repurchase | Mortgage servicing rights
Carrying value:
Fair value of assets pledged to secure	2,539,575		2,539,575		2,098,067
Assets sold under agreements to repurchase | Servicing advances
Carrying value:
Fair value of assets pledged to secure	102,222		102,222		114,643
Assets sold under agreements to repurchase | Financing receivable
Carrying value:
Fair value of assets pledged to secure	$ 133,128		$ 133,128		$ 144,128

Borrowings - Maturities of Outs

Borrowings - Maturities of Outstanding Advances Under Repurchase Agreements (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2018USD ($)
Mortgage loans sold under agreement to repurchase
Unpaid principal balance	$ 1,738,839
Weighted-average maturity (in months)	2 months 9 days
Within 30 days
Mortgage loans sold under agreement to repurchase
Unpaid principal balance	$ 444,530
Over 30 to 90 days
Mortgage loans sold under agreement to repurchase
Unpaid principal balance	1,239,074
Over 90 to 180 days
Mortgage loans sold under agreement to repurchase
Unpaid principal balance	5,235
Over one to two years
Mortgage loans sold under agreement to repurchase
Unpaid principal balance	$ 50,000

Borrowings - Mortgage Loans Sol

Borrowings - Mortgage Loans Sold Under Agreement to Repurchase by Counterparty (Details) - Assets sold under agreements to repurchase $ in Thousands	Sep. 30, 2018USD ($)
Credit Suisse First Boston Mortgage Capital LLC Tranche Two
Mortgage loans sold under agreement to repurchase
Amount at risk	$ 1,290,904
Credit Suisse First Boston Mortgage Capital LLC Tranche One
Mortgage loans sold under agreement to repurchase
Amount at risk	33,078
Deutsche Bank AG
Mortgage loans sold under agreement to repurchase
Amount at risk	84,185
Bank of America, N.A.
Mortgage loans sold under agreement to repurchase
Amount at risk	17,796
Morgan Stanley Bank
Mortgage loans sold under agreement to repurchase
Amount at risk	4,656
JP Morgan
Mortgage loans sold under agreement to repurchase
Amount at risk	4,937
BNP Paribas
Mortgage loans sold under agreement to repurchase
Amount at risk	4,384
Royal Bank of Canada
Mortgage loans sold under agreement to repurchase
Amount at risk	1,704
Citibank, N.A.
Mortgage loans sold under agreement to repurchase
Amount at risk	$ 783

Borrowings - Mortgage Loan Part

Borrowings - Mortgage Loan Participation and Sale Agreement (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
During the period:
Total interest expense	$ 2,533,000	$ 1,484,000	$ 6,450,000	$ 3,780,000
Carrying value:
Mortgage loan participation and sale agreement secured by mortgage loan participation certificates	524,667,000		524,667,000		$ 527,395,000
Mortgage Loan Participation and Sale Agreement member
During the period:
Average balance	$ 289,008,000	$ 213,486,000	$ 250,599,000	$ 200,119,000
Weighted-average interest rate (as a percent)	3.31%	2.48%	3.14%	2.25%
Total interest expense	$ 2,533,000	$ 1,484,000	$ 6,450,000	$ 3,780,000
Carrying value:
Unpaid principal balance of mortgage loan participation and sale agreement secured by mortgage loan participation certificates	524,686,000		524,686,000		527,706,000
Unamortized issuance costs	(19,000)		(19,000)		(311,000)
Mortgage loan participation and sale agreement secured by mortgage loan participation certificates	$ 524,667,000		$ 524,667,000		$ 527,395,000
Weighted-average interest rate (as a percent)	3.51%		3.51%		2.81%
Fair value of mortgage loans pledged to secure	$ 547,969,000		$ 547,969,000		$ 551,688,000
Amortization of debt issuance costs	92,000	134,000	475,000	365,000
Maximum | Mortgage Loan Participation and Sale Agreement member
Carrying value:
Mortgage loan participation and sale agreement secured by mortgage loan participation certificates		532,266,000		532,266,000
Mortgage loan participation and sale agreement secured by mortgage loan participation certificates	$ 722,611,000	$ 532,266,000	$ 722,611,000	$ 532,266,000

Borrowings - Note Payable (Deta

Borrowings - Note Payable (Details) - USD ($)	Aug. 10, 2018	Feb. 28, 2018	Aug. 10, 2017	Feb. 16, 2017	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
During the period:
Total interest expense					$ 21,369,000	$ 11,747,000	$ 55,939,000	$ 24,746,000
Carrying value:
Notes payable					1,291,847,000		1,291,847,000		$ 891,505,000
Notes payable
Repayments of notes payable							900,000,000	186,935,000
Debt issuance costs							3,400,000
Note Payable
During the period:
Average balance					$ 1,234,783,000	$ 689,417,000	$ 1,125,458,000	$ 483,370,000
Weighted-average interest rate (as a percent)					5.07%	5.85%	5.29%	5.87%
Total interest expense					$ 21,369,000	$ 11,747,000	$ 55,939,000	$ 24,746,000
Maximum daily amount outstanding					1,300,000,000	890,879,000	1,300,000,000	891,011,000
Carrying value:
Unpaid principal balance					1,300,000,000		1,300,000,000		900,006,000
Unamortized issuance costs					(8,153,000)		(8,153,000)		(8,501,000)
Notes payable					$ 1,291,847,000		$ 1,291,847,000		$ 891,505,000
Weighted-average interest rate (as a percent)					4.82%		4.82%		5.66%
Unused amount					$ 150,000,000		$ 150,000,000		$ 280,000,000
Amortization of Financing Costs					5,200,000	$ 1,200,000	10,300,000	$ 3,200,000
Non-utilization fees					179,000		562,000
Notes payable
Repayments of notes payable	$ 500,000,000	$ 400,000,000
Debt issuance costs					4,600,000		4,600,000
Note Payable | Revolving credit agreement
Short-term Debt [Line Items]
Maximum loan amount					150,000,000		150,000,000
Note Payable | LIBOR
Notes payable
Maximum loan amount	$ 650,000,000	$ 650,000,000	$ 500,000,000	$ 400,000,000
Description of variable rate	one-month LIBOR	one-month LIBOR	one-month LIBOR	one-month LIBOR
Interest rate spread	2.65%	2.85%	4.00%	4.75%
Note Payable | Mortgage servicing rights
Carrying value:
Assets pledged to secure					2,539,575,000		2,539,575,000		2,098,067,000
Note Payable | Cash.
Carrying value:
Assets pledged to secure					81,640,000		81,640,000		20,765,000
Note Payable | Carried interest
Carrying value:
Assets pledged to secure									8,552,000
Note Payable | Servicing advances
Carrying value:
Assets pledged to secure					$ 102,222,000		$ 102,222,000		$ 114,643,000

Borrowings - Obligations Under

Borrowings - Obligations Under Capital Lease (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Obligations Under Capital Lease
Average balance	$ 11,615	$ 25,507	$ 15,187	$ 25,573
Weighted average interest rate	4.09%	3.25%	3.87%	3.01%
Total interest expense	$ 122	$ 205	$ 444	$ 585
Unpaid principal balance	$ 9,630		$ 9,630		$ 20,971
Weighted average interest rate	4.16%		4.16%		3.26%
Furniture, fixtures, equipment and building improvements pledged to creditors	$ 19,022		$ 19,022		$ 23,915
Capitalized software pledged to creditors	1,231		1,231		$ 1,568
Maximum
Obligations Under Capital Lease
Maximum daily amount outstanding	$ 13,032	$ 26,641	$ 20,971	$ 30,044

Borrowings - ESS (Details)

Borrowings - ESS (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
PMT
Issuances of excess servicing spread to PennyMac Mortgage Investment Trust:
Change in fair value	$ (1,109)	$ 4,828	$ (9,026)	$ 14,757
Excess servicing spread financing
Roll forward of liabilities measured using Level 3 inputs on a recurring basis
Balance at the beginning of the quarter	229,470	261,796	236,534	288,669
Issuances of excess servicing spread to PennyMac Mortgage Investment Trust:
Accrual of interest	3,740	3,998	11,584	13,011
Repayment	(11,543)	(13,410)	(35,852)	(42,320)
Change in fair value	1,109	(4,828)	9,026	(14,757)
Balance at the end of the quarter	223,275	248,763	223,275	248,763
Excess servicing spread financing | PMT
Issuances of excess servicing spread to PennyMac Mortgage Investment Trust:
Issuances	499	1,207	1,983	4,160
Change in fair value	$ 1,109	$ (4,828)	$ 9,026	$ (14,757)

Liability for Losses Under Re_3

Liability for Losses Under Representations and Warranties (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
During the year:
Balance at beginning of quarter	$ 20,587	$ 19,568	$ 20,053	$ 19,067
Provision for losses relating to representations and warranties on loans sold pursuant to mortgage loan sales	1,842	1,596	4,550	4,294
Provision for losses relating to representations and warranties on loans sold reduction in liability due to change in estimate	(1,155)	(1,194)	(3,627)	(3,086)
Incurred losses	(252)	(297)	46	(602)
Balance at end of quarter	21,022	19,673	21,022	19,673
Unpaid principal balance of mortgage loans subject to representations and warranties at period end	$ 139,315,779	$ 114,531,205	$ 139,315,779	$ 114,531,205

Income Taxes (Details)

Income Taxes (Details)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Reconciliation of the entity's provision for income taxes at statutory rates to the provision for income taxes at the entity's effective tax rate
Effective tax rate (as a percent)	9.00%	12.40%	8.60%	12.40%
Federal income tax statutory rate (as a percent)			21.00%		35.00%

Commitments and Contingencies -

Commitments and Contingencies - Commitments to Fund and Sell Mortgage Loans (Details) $ in Billions	Sep. 30, 2018USD ($)
Commitments and Contingencies.
Total commitments to purchase and fund mortgage loans	$ 3.4

Commitments and Contingencies_2

Commitments and Contingencies - Leases (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Commitments and Contingencies.
Rent expense	$ 3,700	$ 3,000	$ 10,300	$ 8,800
Future minimum lease payments
2,019	15,243		15,243
2,020	15,367		15,367
2,021	12,967		12,967
2,022	10,487		10,487
2,023	9,572		9,572
Thereafter	25,538		25,538
Total future minimum lease payments	$ 89,174		$ 89,174

Stockholders' Equity (Details)

Stockholders' Equity (Details) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended	9 Months Ended		16 Months Ended
	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Jun. 30, 2017
Stockholders' Equity
Cost of shares of Class A common stock repurchased	$ 8,599	$ 4,826	$ 8,599
Class A Common Stock
Stockholders' Equity
Authorized stock repurchase amount					$ 50,000
Shares of Class A common stock repurchased	505	236	505	741
Cost of shares of Class A common stock repurchased	$ 8,599	$ 4,826	$ 8,599	$ 13,425

Noncontrolling Interest (Detail

Noncontrolling Interest (Details) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Net income and the effects of changes in noncontrolling interest
Net income attributable to PennyMac Financial Services, Inc. common stockholders	$ 14,489	$ 17,081	$ 48,945	$ 38,439
Increase in the Company's additional paid-in capital for exchanges of Class A units of Private National Mortgage Acceptance Company, LLC to Class A common stock of PennyMac Financial Services, Inc.	$ 4,377	$ 3,656	$ 32,501	$ 20,583
Exchange of Class A units of Private National Mortgage Acceptance Company, LLC to Class A common stock of PennyMac Financial Services, Inc. (in shares)	131	251	1,616	1,297
Noncontrolling interest in Private National Mortgage Acceptance Company, LLC (as a percent)	67.50%		67.50%		69.20%
Class A Common Stock
Net income and the effects of changes in noncontrolling interest
Increase in the Company's additional paid-in capital for exchanges of Class A units of Private National Mortgage Acceptance Company, LLC to Class A common stock of PennyMac Financial Services, Inc.			$ 1
Exchange of Class A units of Private National Mortgage Acceptance Company, LLC to Class A common stock of PennyMac Financial Services, Inc. (in shares)	131	251	1,616	1,297

Net Gains on Mortgage Loans H_3

Net Gains on Mortgage Loans Held for Sale (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Cash (loss) gain:
Mortgage Loans	$ (107,414)	$ (40,747)	$ (399,457)	$ (98,408)
Hedging activities	(2,507)	(14,592)	89,322	(8,168)
Cash gain (loss), net of effects of cash hedging, on sale of mortgage loans held for sale	(109,921)	(55,339)	(310,135)	(106,576)
Non-cash gain:
Mortgage servicing rights and mortgage servicing liabilities resulting from mortgage loan sales, net	147,259	154,763	443,056	419,968
Provision for losses relating to representations and warranties on loans sold pursuant to mortgage loan sales	(1,842)	(1,596)	(4,550)	(4,294)
Provision for losses relating to representations and warranties on loans sold reduction in liability due to change in estimate	1,155	1,194	3,627	3,086
Change in fair value relating to mortgage loans and hedging derivatives held at quarter end:
Interest rate lock commitments	(18,526)	8,226	(21,109)	(5,008)
Mortgage loans	6,897	3,376	21,407	(2,554)
Hedging derivatives	13,327	(12,389)	11,100	(19,023)
From non-affiliates	38,349	98,235	143,396	285,599
Recapture payable to PennyMac Mortgage Investment Trust	18,565	9,901	45,878	7,584
Net gains on mortgage loans held for sale at fair value	$ 56,914	$ 108,136	$ 189,274	$ 293,183

Net Interest Income (Expense)_2

Net Interest Income (Expense) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Interest income:
Short-term investments	$ 814	$ 733	$ 2,001	$ 1,727
Mortgage loans held for sale at fair value	34,941	28,199	95,982	68,528
Placement fees relating to custodial funds	23,397	13,394	55,014	27,073
Interest income, excluding related parties	59,152	42,326	152,997	97,328
Interest income	60,964	44,442	158,683	103,274
Interest expense:
Assets sold under agreements to repurchase	4,676	19,203	15,943	52,249
Mortgage loan participation purchase and sale agreements	2,533	1,484	6,450	3,780
Notes payable	21,369	11,747	55,939	24,746
Obligations under capital lease	122	205	444	585
Interest shortfall on repayments of mortgage loans serviced for Agency securitizations	4,883	4,602	14,259	11,529
Interest on mortgage loan impound deposits	1,452	1,253	3,517	2,943
Interest expense, non-affiliates	35,035	38,494	96,552	95,832
Interest expense	38,775	42,492	108,136	108,843
Net interest income (expense):	22,189	1,950	50,547	(5,569)
PMT
Interest income:
From PennyMac Mortgage Investment Trust	1,812	2,116	5,686	5,946
Interest expense:
To PennyMac Mortgage Investment Trust Excess servicing spread financing at fair value	3,740	3,998	11,584	13,011
Assets sold under agreements to repurchase
Interest expense:
Assets sold under agreements to repurchase	4,676	$ 19,203	15,943	$ 52,249
Incentives recorded	$ 12,800		$ 35,500
Repurchase agreement initial term					6 months

Stock-based Compensation - Comp

Stock-based Compensation - Compensation Expense by Award (Details) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Stock-Based Compensation
Grant date fair value	$ 100	$ 58	$ 26,741	$ 25,643
Stock-based compensation expense	$ 8,532	$ 4,243	$ 20,766	$ 14,633
Stock Options
Stock-Based Compensation
Granted (in units)			674	861
Grant date fair value			$ 6,147	$ 5,772
Exercised (in units)	55	9	285	34
Performance-based RSUs
Stock-Based Compensation
Granted (in units)			524	694
Grant date fair value			$ 12,791	$ 12,512
Vested (in units)			774	446
Time-based RSUs
Stock-Based Compensation
Granted (in units)	5	3	321	408
Grant date fair value	$ 100	$ 58	$ 7,803	$ 7,359
Vested (in units)	1	4	245	165

Earnings Per Share of Common _3

Earnings Per Share of Common Stock (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Basic earnings per share of common stock:
Net income attributable to common stockholders	$ 14,489	$ 17,081	$ 48,945	$ 38,439
Weighted-average common stock outstanding	25,125	23,426	24,644	23,147
Basic earnings per share of common stock (in dollars per share)	$ 0.58	$ 0.73	$ 1.99	$ 1.66
Diluted earnings per share of common stock:
Net income attributable to common stockholders	$ 14,489	$ 17,081	$ 48,945	$ 38,439
Net income attributable to dilutive stock-based compensation units	552	888	2,435	1,816
Effect of net income attributable to noncontrolling interest, net of tax	29,580	37,996	101,921	86,473
Net income attributable to common stockholders for diluted earnings per share	$ 44,621	$ 55,965	$ 153,301	$ 126,728
Weighted-average common stock outstanding applicable to basic earnings per share	25,125	23,426	24,644	23,147
Effect of dilutive shares:
Common shares issuable under stock-based compensation plan	$ 1,476	$ 1,751	$ 1,818	$ 1,684
PennyMac Class A units exchangeable to common stock	52,312	53,239	52,492	53,400
Weighted-average shares of common stock outstanding applicable to diluted earnings per share	78,913	78,416	78,954	78,231
Diluted earnings per share of common stock (in dollars per share)	$ 0.57	$ 0.71	$ 1.94	$ 1.62
Total anti-dilutive stock-based compensation units	2,466	2,623	1,833	2,910
Performance-based RSUs
Effect of dilutive shares:
Total anti-dilutive stock-based compensation units	1,172		1,060	475
Stock Options
Effect of dilutive shares:
Total anti-dilutive stock-based compensation units	1,208	2,622	705	2,434
Weighted-average exercise price of anti-dilutive stock options	$ 17.79	$ 16.39	$ 17.79	$ 16.39
Time-based RSUs
Effect of dilutive shares:
Total anti-dilutive stock-based compensation units	86	1	68	1

Supplemental Cash Flow Inform_3

Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Cash paid for interest			$ 123,622	$ 115,710
Cash paid for income taxes, net			(1,541)	41
Non-cash investing activity:
Mortgage servicing rights resulting from mortgage loan sales			448,604	431,908
Mortgage servicing liabilities resulting from mortgage loan sales			5,548	11,940
Unsettled portion of MSR acquisitions			13,501	16,364
Non-cash financing activity:
Transfer of excess servicing spread pursuant to recapture agreement with PennyMac Mortgage Investment Trust			1,983	4,160
Issuance of Class A common stock in settlement of director fees	$ 85	$ 84	$ 245	$ 253

Regulatory Capital and Liquid_3

Regulatory Capital and Liquidity Requirements (Details) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2015	Sep. 30, 2018
Fannie Mae / Freddie Mac - PLS
Regulatory Net Worth and Agency Capital Requirements
Net worth	$ 1,561,977,000		$ 1,749,912,000
Capital Requirement	429,671,000		495,694,000
Liquidity	196,415,000		243,827,000
Liquidity requirement	$ 58,754,000		$ 68,224,000
Tangible net worth / Total assets ratio actual	21.00%		22.00%
Tangible net worth / Total assets ratio requirement	6.00%		6.00%
Ginnie Mae - PLS
Regulatory Net Worth and Agency Capital Requirements
Net worth	$ 1,307,580,000		$ 1,520,550,000
Capital Requirement	674,133,000		698,354,000
Liquidity	196,415,000		243,827,000
Liquidity requirement	153,431,000		181,852,000
Ginnie Mae - PennyMac
Regulatory Net Worth and Agency Capital Requirements
Net worth	1,511,201,000		1,755,669,000
Capital Requirement	741,574,000		768,190,000
Ginnie Mae - PennyMac | 1-4 unit servicing portfolio
Regulatory Net Worth and Agency Capital Requirements
Net worth	$ 2,500,000
FHFA net worth requirement spread	0.35%
FHFA liquidity spread of UPB serviced	0.10%
Liquidity requirement	$ 1,000,000
HUD - PLS
Regulatory Net Worth and Agency Capital Requirements
Net worth	1,307,580,000		1,520,550,000
Capital Requirement	$ 2,500,000		$ 2,500,000
Federal Housing Finance Agency
Regulatory Net Worth and Agency Capital Requirements
Net worth		$ 2,500,000
FHFA liquidity spread of UPB serviced		0.035%
FHFA additional liquidity spread of UPB in excess of 6%		$ 2
Federal Housing Finance Agency | 1-4 unit servicing portfolio
Regulatory Net Worth and Agency Capital Requirements
FHFA net worth requirement spread		0.25%

Segments and Related Informat_3

Segments and Related Information - Financial Highlights by Segment (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018USD ($)	Sep. 30, 2017USD ($)	Sep. 30, 2018USD ($)segment	Sep. 30, 2017USD ($)	Dec. 31, 2017USD ($)
Segments and Related Information
Number of segments | segment			3
Revenues:
Net mortgage loan servicing fees	$ 109,703	$ 78,081	$ 340,181	$ 199,157
Net gains on mortgage loans held for sale at fair value	56,914	108,136	189,274	293,183
Mortgage loan origination fees	26,485	33,168	75,476	88,935
Net interest income (expense):
Interest income	60,964	44,442	158,683	103,274
Interest expense, before non-segment activities	38,775	42,492	108,136	108,843
Net interest expense, before non-segment activities	22,189	1,950	50,547	(5,569)
Management fees	6,471	6,216	17,910	17,597
Other	2,928	735	7,646	3,387
Total net revenues, before non-segment activities	250,929	250,635	733,428	656,829
Expenses	189,232	156,491	524,037	442,693
Income before provision for income taxes	61,697	94,144	209,391	214,136
Assets:
Segment assets at quarter end	6,992,530		6,992,530		$ 7,368,093
PMT
Revenues:
Fulfillment fees from PennyMac Mortgage Investment Trust	26,256	23,507	52,759	61,184
Net interest income (expense):
Management fees	6,482	6,038	17,906	16,684
Assets:
Receivable	27,467		27,467		27,119
Investment Funds
Net interest income (expense):
Management fees	(11)	178	4	913
Carried Interest from Investment Funds	(17)	(1,158)	$ (365)	(1,045)
Assets:
Receivable					$ 417
Mortgage banking
Segments and Related Information
Number of segments | segment			2
Operating segment
Assets:
Segment assets at quarter end	6,993,020	6,386,724	$ 6,993,020	6,386,724
Working capital	1,800	1,600	1,800	1,600
Receivable	2,300		2,300
Operating segment | Investment management
Net interest income (expense):
Interest income	16		16
Interest expense, before non-segment activities	10	13	41	37
Net interest expense, before non-segment activities	6	(13)	(25)	(37)
Management fees	6,471	6,216	17,910	17,597
Other	1,478	(25)	4,221	234
Total net revenues, before non-segment activities	7,938	5,020	21,741	16,749
Expenses	5,481	4,305	17,221	12,455
Income before provision for income taxes	2,457	715	4,520	4,294
Assets:
Segment assets at quarter end	11,996	20,369	11,996	20,369
Operating segment | Investment management | Investment Funds
Net interest income (expense):
Carried Interest from Investment Funds	(17)	(1,158)	(365)	(1,045)
Operating segment | Mortgage banking
Revenues:
Net mortgage loan servicing fees	109,703	78,081	340,181	199,157
Net gains on mortgage loans held for sale at fair value	56,914	108,136	189,274	293,183
Mortgage loan origination fees	26,485	33,168	75,476	88,935
Net interest income (expense):
Interest income	60,948	44,442	158,667	103,274
Interest expense, before non-segment activities	38,765	42,479	108,095	108,806
Net interest expense, before non-segment activities	22,183	1,963	50,572	(5,532)
Other	1,450	760	3,425	3,153
Total net revenues, before non-segment activities	242,991	245,615	711,687	640,080
Expenses	183,751	152,186	506,816	430,238
Income before provision for income taxes	59,240	93,429	204,871	209,842
Assets:
Segment assets at quarter end	6,981,024	6,366,355	6,981,024	6,366,355
Operating segment | Mortgage banking | PMT
Revenues:
Fulfillment fees from PennyMac Mortgage Investment Trust	26,256	23,507	52,759	61,184
Operating segment | Mortgage banking Production
Revenues:
Net gains on mortgage loans held for sale at fair value	34,947	79,983	105,111	217,526
Mortgage loan origination fees	26,485	33,168	75,476	88,935
Net interest income (expense):
Interest income	17,013	17,651	48,135	45,866
Interest expense, before non-segment activities	1,274	12,355	4,401	32,507
Net interest expense, before non-segment activities	15,739	5,296	43,734	13,359
Other	645	235	1,497	1,711
Total net revenues, before non-segment activities	104,072	142,189	278,577	382,715
Expenses	78,405	73,231	216,722	199,547
Income before provision for income taxes	25,667	68,958	61,855	183,168
Assets:
Segment assets at quarter end	2,168,126	2,737,666	2,168,126	2,737,666
Operating segment | Mortgage banking Production | PMT
Revenues:
Fulfillment fees from PennyMac Mortgage Investment Trust	26,256	23,507	52,759	61,184
Operating segment | Mortgage banking Servicing
Revenues:
Net mortgage loan servicing fees	109,703	78,081	340,181	199,157
Net gains on mortgage loans held for sale at fair value	21,967	28,153	84,163	75,657
Net interest income (expense):
Interest income	43,935	26,791	110,532	57,408
Interest expense, before non-segment activities	37,491	30,124	103,694	76,299
Net interest expense, before non-segment activities	6,444	(3,333)	6,838	(18,891)
Other	805	525	1,928	1,442
Total net revenues, before non-segment activities	138,919	103,426	433,110	257,365
Expenses	105,346	78,955	290,094	230,691
Income before provision for income taxes	33,573	24,471	143,016	26,674
Assets:
Segment assets at quarter end	$ 4,812,898	$ 3,628,689	$ 4,812,898	$ 3,628,689

Subsequent Events (Details)

Subsequent Events (Details) - Subsequent Event $ in Thousands	Nov. 01, 2018USD ($)item	Oct. 31, 2018USD ($)item	Oct. 29, 2018USD ($)item
Subsequent Event
Number of classes of common stock | item	1	2
Maximum loan amount	$ 150,000
Number of non-affiliate sellers of bulk portfolio | item		2
Purchase of UPB of Ginnie Mae MSRs		$ 3,200,000
Syndicated Repurchase Agreement
Subsequent Event
Number of indirect controlled subsidiaries that entered into Amended and Restated Master Purchase Agreement. | item			2
New PFSI | Class A Common Stock
Subsequent Event
Common stock conversion ratio (as a percent)	100.00%
New PFSI | Class B Common Stock
Subsequent Event
Consideration received from conversion of stock	$ 0
New PFSI | Class A Unit
Subsequent Event
Common stock conversion ratio (as a percent)	100.00%
PLS | Syndicated Repurchase Agreement
Securities Sold under Agreements to Repurchase [Abstract]
Maximum aggregate transaction amount			$ 500,000