PennyMac Financial Services (PFSI) 10-Q 6 May 19 2019 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2019	May 03, 2019
Document and Entity Information
Entity Registrant Name	PENNYMAC FINANCIAL SERVICES, INC.
Entity Central Index Key	0001745916
Document Type	10-Q
Document Period End Date	Mar. 31, 2019
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		78,334,037
Entity Small Business	false
Entity Emerging Growth Company	false
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q1

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
ASSETS
Cash (includes $93,372 and $108,174 pledged to creditors)	$ 144,266	$ 155,289
Short-term investments at fair value	149,372	117,824
Mortgage loans held for sale at fair value (includes $2,639,669 and $2,478,858 pledged to creditors)	2,668,929	2,521,647
Derivative assets	121,153	96,347
Servicing advances, net (includes valuation allowance of $65,696 and $70,582; $147,435 and $162,895 pledged to creditors)	284,230	313,197
Mortgage servicing rights at fair value (includes $2,675,704 and $2,807,333 pledged to creditors)	2,905,090	2,820,612
Real estate acquired in settlement of loans	1,690	2,250
Operating lease right-of-use assets	56,239
Furniture, fixtures, equipment and building improvements, net (includes $15,254 and $16,281 pledged to creditors)	33,423	33,374
Capitalized software, net (includes $940 and $1,017 pledged to creditors)	45,416	39,748
Mortgage loans eligible for repurchase	1,094,702	1,102,840
Other	157,057	109,559
Total assets	7,819,000	7,478,573
LIABILITIES
Assets sold under agreements to repurchase	2,151,938	1,933,859
Mortgage loans participation purchase and sale agreements	547,879	532,251
Notes payable	1,292,736	1,292,291
Obligations under capital lease	5,091	6,605
Derivative liabilities	17,838	3,064
Operating lease liabilities	76,373
Accounts payable and accrued expenses	162,677	156,212
Mortgage servicing liabilities at fair value	7,844	8,681
Income taxes payable	414,636	400,546
Liability for mortgage loans eligible for repurchase	1,094,702	1,102,840
Liability for losses under representations and warranties	17,982	21,155
Total liabilities	6,117,808	5,824,782
Commitments and contingencies - Note 14
STOCKHOLDERS' EQUITY
Additional paid-in capital	1,311,914	1,310,648
Retained earnings	389,270	343,135
Total stockholders' equity	1,701,192	1,653,791
Total liabilities and stockholders' equity	7,819,000	7,478,573
Common Stock
STOCKHOLDERS' EQUITY
Common stock - authorized 200,000,000 shares of $0.0001 par value; issued and outstanding, 78,317,843 and 77,494,332 shares respectively	8	8
PMT
ASSETS
Assets purchased from PennyMac Mortgage Investment Trust under agreements to resell pledged to creditors	125,929	131,025
Investment in PennyMac Mortgage Investment Trust at fair value	1,553	1,397
Receivable, from affiliates	29,951	33,464
LIABILITIES
Excess servicing spread financing payable to PennyMac Mortgage Investment Trust at fair value	205,081	216,110
Payable to affiliates	76,494	104,631
Private National Mortgage Acceptance Company, LLC
LIABILITIES
Payable to exchanged Private National Mortgage Acceptance Company, LLC unitholders under tax receivable agreement	$ 46,537	$ 46,537

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Cash pledged to creditors	$ 93,372	$ 108,174
Mortgage loans held for sale, pledged to creditors	2,639,669	2,478,858
Servicing advances, net, valuation allowance	65,696	70,582
Servicing advances pledged to creditors	147,435	162,895
Mortgage servicing rights, at fair value	2,675,704	2,807,333
Furniture, fixtures, equipment and building improvements pledged to creditors	15,254	16,281
Capitalized software pledged to creditors	$ 940	$ 1,017
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	78,317,843	77,494,332
Common stock, shares outstanding	78,317,843	77,494,332

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Mortgage loan servicing fees
From non-affiliates and affiliates	$ 166,790	$ 135,483
Ancillary and other fees	22,017	14,171
Mortgage loan servicing fees	199,377	160,673
Change in fair value of mortgage servicing rights and mortgage servicing liabilities	(122,857)	(36,963)
Change in fair value of excess servicing spread payable to PennyMac Mortgage Investment Trust	(118,806)	(43,884)
Net mortgage loan servicing fees	80,571	116,789
Net gains on mortgage loans held for sale at fair value:
From non-affiliates	58,753	59,028
Net gains on mortgage loans held for sale at fair value	84,776	71,414
Mortgage loan origination fees from non-affiliates	21,687	23,355
Mortgage loan origination fees	23,930	24,563
Interest income:
From non-affiliates	56,537	40,639
Interest income	58,333	42,615
Interest expense:
To non-affiliates	34,477	32,811
Interest expense	37,543	36,745
Net interest income	20,790	5,870
Management fees, net:
Management fees	7,248	5,775
Result of real estate acquired in settlement of loans	274	(28)
Other	2,350	1,872
Total net revenue	247,705	238,201
Expenses
Compensation	106,600	102,013
Servicing	30,293	26,299
Technology	15,966	14,620
Loan origination	14,497	2,115
Occupancy and equipment	6,776	6,377
Professional services	5,881	5,738
Marketing	1,325	2,161
Other	6,076	5,882
Total expenses	187,414	165,205
Income before provision for income taxes	60,291	72,996
Provision for income taxes	14,156	6,070
Net income	46,135	66,926
Less: Net income attributable to noncontrolling interest		50,307
Net income attributable to PennyMac Financial Services, Inc. common stockholders	$ 46,135	$ 16,619
Earnings per share
Basic (in dollars per share)	$ 0.59	$ 0.70
Diluted (in dollars per share)	$ 0.58	$ 0.67
Weighted-average shares outstanding
Basic (in shares)	77,653	23,832
Diluted (in shares)	79,286	79,461
PMT
Mortgage loan servicing fees
From non-affiliates and affiliates	$ 10,570	$ 11,019
Changes in fair value included in income	4,051	(6,921)
Net gains on mortgage loans held for sale at fair value:
From PennyMac Mortgage Investment Trust	26,023	12,386
Mortgage loan origination fees from PennyMac Mortgage Investment Trust	2,243	1,208
Fulfillment fees from PennyMac Mortgage Investment Trust	27,574	11,944
Interest income:
From PennyMac Mortgage Investment Trust	1,796	1,976
Interest expense:
To PennyMac Mortgage Investment Trust	3,066	3,934
Management fees, net:
Management fees	7,248	5,696
Change in fair value of investment in and dividends received from affiliate	$ 192	182
Investment Funds
Management fees, net:
Management fees		79
Carried Interest from Investment Funds		$ (180)

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands	Common Stock.Common Stock	Common Stock.	Additional paid-in capital	Retained earnings	Noncontrolling interest in Private National Mortgage Acceptance Company, LLC	Total
Changes in stockholders' equity
Cumulative effect of change in accounting principle - accounting for all existing classes of mortgage servicing rights at fair value				$ 189	$ 587	$ 776
Balance after adjustment	$ 2		$ 204,103	265,495	1,250,850	1,720,450
Balance after adjustment (in shares)	23,530
Balance at Dec. 31, 2017	$ 2		204,103	265,306	1,250,263	1,719,674
Balance (in shares) at Dec. 31, 2017	23,530
Changes in stockholders' equity
Net income				16,619	50,307	66,926
Stock and unit-based compensation			5,191		4,235	9,426
Issuance of Class A common stock in settlement of director fees			24		55	79
Exchange of Class A units of Private National Mortgage Acceptance Company, LLC to Class A common stock of PennyMac Financial Services, Inc.			14,859		(14,859)	$ 14,859
Exchange of Class A units of Private National Mortgage Acceptance Company, LLC to Class A common stock of PennyMac Financial Services, Inc. (in shares)	748					748
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.			(2,682)			$ (2,682)
Balance at Mar. 31, 2018	$ 2		221,495	282,114	$ 1,290,588	1,794,199
Balance (in shares) at Mar. 31, 2018	24,278
Balance at Dec. 31, 2018		$ 8	1,310,648	343,135		1,653,791
Balance (in shares) at Dec. 31, 2018		77,494
Changes in stockholders' equity
Net income				46,135		46,135
Stock and unit-based compensation			1,180			1,180
Stock and unit-based compensation (in shares)		820
Issuance of common stock in settlement of directors' fees			86			86
Issuance of common stock in settlement of directors' fees (in shares)		4
Balance at Mar. 31, 2019		$ 8	$ 1,311,914	$ 389,270		$ 1,701,192
Balance (in shares) at Mar. 31, 2019		78,318

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Cash flow from operating activities
Net income	$ 46,135	$ 66,926
Adjustments to reconcile net income to net cash used in operating activities:
Change in fair value of mortgage servicing rights, mortgage servicing liabilities and excess servicing spread	118,806	43,884
Net gains on mortgage loans held for sale at fair value	(84,776)	(71,414)
Capitalization of interest on mortgage loans held for sale at fair value	(16,487)	(14,467)
Accrual of interest on excess servicing spread financing	3,066	3,934
Amortization of net debt issuance (premiums) and costs	(6,570)	(3,600)
Results of real estate acquired in settlement of loans	(274)	28
Stock based compensation expense	4,531	6,171
Provision for servicing advance losses	4,820	6,787
Depreciation and amortization	3,159	2,592
Amortization of right-to-use assets	2,359
Originations of mortgage loans held for sale	(1,719,734)	(1,281,302)
Purchase of mortgage loans from Ginnie Mae securities and early buyout investors for modification and subsequent sale	(941,154)	(911,585)
Sale and principal payments of mortgage loans held for sale to non-affiliates	8,536,430	11,103,785
Repurchase of mortgage loans subject to representations and warranties	(4,064)	(6,309)
Settlement of repurchase agreement derivatives	11,436
Decrease in servicing advances	24,087	27,450
Sale of real estate acquired in settlement of loans	2,075	1,230
(Increase) decrease in other assets	(38,676)	6,198
Decrease in operating lease liabilities	(2,977)
Increase in accounts payable and accrued expenses	10,483	2,344
Net cash (used in) provided by operating activities	(134,247)	537,392
Cash flow from investing activities
(Increase) decrease in short-term investments	(31,548)	64,190
Net settlement of derivative financial instruments used for hedging	125,695	(128,099)
Purchase of mortgage servicing rights	(211,481)	(27,544)
Purchase of furniture, fixtures, equipment and leasehold improvements	(2,126)	(2,779)
Acquisition of capitalized software	(6,750)	(3,722)
Decrease in margin deposits	28,343	15,501
Net cash used in investing activities	(92,771)	(81,263)
Cash flow from financing activities
Sale of assets under agreements to repurchase	8,382,013	9,771,234
Repurchase of assets sold under agreements to repurchase	(8,164,625)	(10,338,629)
Issuance of mortgage loan participation purchase and sale certificates	5,555,946	6,155,178
Repayment of mortgage loan participation purchase and sale certificates	(5,540,374)	(6,172,301)
Advances on notes payable		650,000
Repayments of notes payable		(400,000)
Repayments of obligations under capital lease	(1,514)	(4,536)
Repayment of excess servicing spread financing	(10,552)	(12,291)
Payment of debt issuance costs	(1,536)	(7,891)
Issuance of common stock pursuant to exercise of stock options	1,283	3,255
Payment of withholding taxes relating to stock-based compensation	(4,634)
Net cash provided by (used in) financing activities	216,007	(355,981)
Net increase (decrease) in cash and restricted cash	(11,011)	100,148
Cash and restricted cash at beginning of quarter	155,924	38,173
Cash and restricted cash at end of quarter	144,913	138,321
Cash	144,266	137,863
Restricted cash included in Other assets	647	458
Investment Funds
Adjustments to reconcile net income to net cash used in operating activities:
Carried Interest from Investment Funds		180
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	(156)	(147)
Purchase of mortgage loans held for sale from PennyMac Mortgage Investment Trust	(6,959,389)	(9,212,188)
Sale of mortgage loans held for sale to Penny Mac Mortgage Investment Trust	884,510	781,326
Decrease (increase) in receivable from affiliates	2,775	(955)
Decrease in payable to affiliate	(28,752)	(19,544)
Increase in income taxes payable	14,090	6,068
Cash flow from investing activities
Net change in assets purchased from PMT under agreement to resell	$ 5,096	$ 1,190

Organization

Organization	3 Months Ended
	Mar. 31, 2019
Organization
Organization	PENNYMAC FINANCIAL SERVICES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) Note 1—Organization PennyMac Financial Services, Inc. (“PFSI” or the “Company”) is a holding corporation and its primary assets are direct and indirect equity interests in Private National Mortgage Acceptance Company, LLC (“PennyMac”). The Company is the managing member of PennyMac, and it 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. Previously, PCM had management agreements with PNMAC Mortgage Opportunity Fund, LLC and PNMAC Mortgage Opportunity Fund, L.P. an affiliate of these registered funds, and PNMAC Mortgage Opportunity Fund Investors, LLC (the “Private Fund”) (collectively, the “Investment Funds”). The Investment Funds were dissolved during 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 (“FHA”) 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”). On November 1, 2018, the Company completed a corporate reorganization (the “Reorganization”) by which it changed its equity structure to create a single class of common stock held by all stockholders at a new top-level publicly traded parent holding corporation, as opposed to the two classes of common stock, Class A and Class B, that were in place before the Reorganization. The predecessor holding company became a consolidated subsidiary of the Company and is considered the predecessor of the Company for accounting purposes. Accordingly, the predecessor holding company's historical consolidated financial statements remain the Company’s historical financial statements. As part of the Reorganization, the Company retained its officers and directors in their previously existing roles and assumed the predecessor holding company's stock-based compensation plan. The details of the Reorganization are more fully described in Note 1 – Organization to Company’s Annual Report on Form 10-K for the year ended December 31, 2018.

Basis of Presentation and Recen

Basis of Presentation and Recently Issued Accounting Pronouncements	3 Months Ended
	Mar. 31, 2019
Basis of Presentation and Recently Issued Accounting Pronouncements
Basis of Presentation and Recently Issued Accounting Pronouncements	Note 2—Basis of Presentation and Recently Issued Accounting Pronouncements 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, 2018. 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, 2019. 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 Change Effective January 1, 2019, the Company adopted Accounting Standards Update 2016-02, Leases (Topic 842) , as amended (“ASU 2016-02”), using the modified retrospective approach. As the result of this adoption, the Company recorded a $58.6 million right-of-use asset, a corresponding lease liability and reclassified $20.7 million of deferred rent from accrued liabilities to the lease liability for a total lease liability of $79.3 million. The Company did not adjust the prior comparative period. As part of its adoption of ASU 2016-02, the Company made the following accounting policy elections: · to retain its current classification of existing leases; and · to exclude from its consolidated balance sheet leases with initial terms that are less than or equal to 12 months. The adoption of ASU 2016-02 did not have any effect on the Company’s consolidated statements of income, stockholder’s equity or cash flows. The Company determines if an arrangement is a lease at inception. Operating leases are included in Operating lease right-of-use assets and Operating lease liabilities in its consolidated balance sheet. Operating lease right-of-use assets represent the Company’s right to use the underlying assets and operating lease liabilities represent its obligation to make the payments required by the leases. As most of the Company’s leases do not provide an implicit discount rate, PFSI uses its incremental borrowing rate based on information available at the commencement date to determine the present value of its lease payment obligations. The operating lease right-of-use assets also includes any lease payments made and is reduced by lease incentives. Lease expense is recognized on the straight-line basis over the lease term. The Company has lease agreements that include both lease and non-lease components (such as common area maintenance), which are generally included in the lease and are accounted for along with the lease component as a single lease component. Detailed lease disclosures are included in Note 10‒Leases .

Concentration of Risk

Concentration of Risk	3 Months Ended
	Mar. 31, 2019
Concentration of Risk
Concentration of Risk	Note 3—Concentration of Risk A substantial portion of the Company’s activities relate to PMT. Revenues generated from PMT (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 paid to these entities, management fees, and change in fair value of investment and dividend received from PMT) totaled 31% and 15% of total net revenue for the quarters ended March 31, 2019 and 2018, respectively.

Transactions with Affiliates

Transactions with Affiliates	3 Months Ended
	Mar. 31, 2019
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. In the third quarter of 2017, the Company began selling conventional conforming balance mortgage loans to PMT under the agreement. Pursuant to the terms of an MSR recapture agreement by and between the Company and PMT, which was amended and restated 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 to PMT cash in an amount equal to 30% of the fair market value of the MSRs related to all such mortgage loans. The MSR recapture 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. Pursuant to a mortgage banking services agreement, which was amended and restated effective September 12, 2016, the Company provides PMT with certain mortgage banking services, including fulfillment and disposition-related services, 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. Following is a summary of loan production activities, including MSR recapture between the Company and PMT: Quarter ended March 31, 2019 2018 (in thousands) Net gains (loss) on mortgage loans held for sale at fair value: Net gains on mortgage loans held for sale to PMT $ 27,146 $ 13,811 Mortgage servicing rights and excess servicing spread recapture incurred (1,123) (1,425) $ 26,023 $ 12,386 Sale of mortgage loans held for sale to PMT $ 884,510 $ 781,326 Fulfillment fee revenue $ 27,574 $ 11,944 Unpaid principal balance of mortgage loans fulfilled for PMT subject to fulfillment fees $ 8,135,552 $ 4,225,631 Sourcing fees paid to PMT $ 1,994 $ 2,641 Unpaid principal balance of mortgage loans purchased from PMT $ 6,647,338 $ 8,847,873 Tax service fees earned from PMT included in Mortgage loan origination fees $ 2,243 $ 1,208 Mortgage Loan Servicing The Company and PMT have entered into a loan servicing agreement (the “Servicing Agreement”), which was amended and restated effective September 12, 2016 and pursuant to which the Company provides servicing for PMT’s portfolio of residential mortgage loans and subservicing for its portfolio of MSRs. 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 full modification or 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 fees earned from PMT: Quarter ended March 31, 2019 2018 (in thousands) Mortgage loans acquired for sale at fair value $ 239 $ 178 Mortgage loans at fair value 463 3,085 Mortgage servicing rights 9,868 7,756 $ 10,570 $ 11,019 Property management fees received from PMT included in Other income $ 123 $ 99 Investment Management Activities The Company has a management agreement with PMT (“Management Agreement”), which was amended and restated effective September 12, 2016. Pursuant to the Management Agreement, the Company oversees PMT’s business affairs in conformity with the investment policies that are approved and monitored by its board of trustees, for which it collects a base management fee and may collect a performance incentive fee. 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 March 31, 2019 2018 (in thousands) Base management $ 6,109 $ 5,696 Performance incentive 1,139 — $ 7,248 $ 5,696 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, 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 March 31, 2019 2018 (in thousands) Reimbursement of: Common overhead incurred by the Company included in Other revenue $ 1,236 $ 1,001 Compensation included in Other revenue 120 120 Expenses incurred on PMT's behalf, net 570 573 $ 1,926 $ 1,694 Payments and settlements during the quarter (1) $ 15,189 $ 7,658 (1) Payments and settlements include payments for management fees and correspondent production activities itemized in the preceding tables and netting settlements made pursuant to master netting agreements between the Company and PMT. 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. On February 1, 2019, the term of the reimbursement agreement was extended to February 1, 2023. The Company received $75,000 in reimbursement of underwriting fees from PMT during the quarter ended March 31, 2019. 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 March 31, 2019 2018 (in thousands) Interest income relating to Assets purchased from PennyMac Mortgage Investment Trust under agreements to resell $ 1,796 $ 1,976 Common shares of beneficial interest of PennyMac Mortgage Investment Trust: Dividends received $ 36 $ 35 Change in fair value of investment 156 147 $ 192 $ 182 March 31, December 31, 2019 2018 (in thousands) Assets purchased from PennyMac Mortgage Investment Trust under agreements to resell $ 125,929 $ 131,025 Common shares of beneficial interest of PennyMac Mortgage Investment Trust: Fair value $ 1,553 $ 1,397 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, settle its obligation to PMT in cash 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 March 31, 2019 2018 (in thousands) Excess servicing spread financing: Issuance pursuant to recapture agreement $ 508 $ 904 Repayment $ 10,552 $ 12,291 Gain (loss) recognized $ 4,051 $ (6,921) Interest expense $ 3,066 $ 3,934 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 $ 489 $ 830 March 31, December 31, 2019 2018 (in thousands) Excess servicing spread financing at fair value $ 205,081 $ 216,110 Receivable from and Payable to PMT Amounts receivable from and payable to PMT are summarized below: March 31, December 31, 2019 2018 (in thousands) Receivable from PMT: Fulfillment fees $ 11,744 $ 10,006 Management fees 7,238 6,559 Servicing fees 4,350 4,841 Allocated expenses and expenses incurred on PMT's behalf 3,907 9,066 Correspondent production fees 1,852 2,071 Conditional Reimbursement 726 801 Interest on assets purchased under agreements to resell 134 120 $ 29,951 $ 33,464 Payable to PMT: Deposits made by PMT to fund servicing advances $ 73,149 $ 100,554 Mortgage servicing rights recapture payable 160 179 Other 3,185 3,898 $ 76,494 $ 104,631 Exchanged Private National Mortgage Acceptance Company, LLC Unitholders On May 8, 2013, the Company entered into a tax receivable agreement with certain former owners of PennyMac 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 exchanges of ownership interests in PennyMac 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. Although the Company’s reorganization in 2018 eliminated the potential for unitholders to exchange any additional units subject to this tax receivable agreement, the Company continues to be subject to the agreement and will be required to make payments, if any, under the tax receivable agreement to those certain prior owners of PennyMac who effected exchanges of ownership interests in PennyMac for the Company’s common stock prior to the closing of the Reorganization in November 2018. Based on the PennyMac unitholder exchanges to date, the Company has recorded a $46.5 million Payable to exchanged Private National Mortgage Acceptance Company, LLC unitholders under tax receivable agreement as of March 31, 2019 and December 31, 2018. The Company did not make any payments under the tax receivable agreement during the quarters ended March 31, 2019 and 2018.

Loan Sales and Servicing Activi

Loan Sales and Servicing Activities	3 Months Ended
	Mar. 31, 2019
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 with the mortgage loans as servicer: Quarter ended March 31, 2019 2018 (in thousands) Cash flows: Sales proceeds $ 8,536,430 $ 11,103,785 Servicing fees received (1) $ 137,148 $ 113,091 Net servicing recoveries $ (24,176) $ (10,637) (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: March 31, December 31, 2019 2018 (in thousands) Unpaid principal balance of mortgage loans outstanding $ 148,795,055 $ 145,224,596 Delinquencies: 30-89 days $ 5,489,000 $ 6,222,864 90 days or more: Not in foreclosure $ 2,085,034 $ 2,208,083 In foreclosure $ 710,297 $ 720,894 Foreclosed $ 24,875 $ 24,243 Bankruptcy $ 1,053,399 $ 970,329 The following tables summarize the UPB of the Company’s mortgage loan servicing portfolio: March 31, 2019 Contract Total Servicing servicing and mortgage rights owned subservicing loans serviced (in thousands) Investor: Non-affiliated entities: Originated $ 148,795,055 $ — $ 148,795,055 Purchased 72,039,709 — 72,039,709 220,834,764 — 220,834,764 PennyMac Mortgage Investment Trust — 101,287,428 101,287,428 Mortgage loans held for sale 2,573,121 — 2,573,121 $ 223,407,885 $ 101,287,428 $ 324,695,313 Subserviced for the Company (1) $ 16,270,233 $ — $ 16,270,233 Delinquent mortgage loans: 30 days $ 6,244,534 $ 479,185 $ 6,723,719 60 days 1,781,121 111,089 1,892,210 90 days or more: Not in foreclosure 3,100,186 223,231 3,323,417 In foreclosure 1,094,892 115,637 1,210,529 Foreclosed 35,354 157,762 193,116 $ 12,256,087 $ 1,086,904 $ 13,342,991 Bankruptcy $ 1,521,842 $ 118,609 $ 1,640,451 Custodial funds managed by the Company (2) $ 3,851,327 $ 1,384,404 $ 5,235,731 (1) Certain of the mortgage loans for which the Company has purchased the MSRs are subserviced on the Company’s behalf by other mortgage loan servicers on an interim basis when servicing of the loans has not yet been transferred to the Company’s loan servicing platform. (2) Custodial funds include cash accounts holding funds on behalf of borrowers and investors 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’ borrowers and investors, which are included in Interest income in the Company’s consolidated statements of income. December 31, 2018 Contract Total Servicing servicing and mortgage rights owned subservicing loans serviced (in thousands) Investor: Non-affiliated entities: Originated $ 145,224,596 $ — $ 145,224,596 Purchased 56,990,486 — 56,990,486 202,215,082 — 202,215,082 PennyMac Mortgage Investment Trust — 94,658,154 94,658,154 Mortgage loans held for sale 2,420,636 — 2,420,636 $ 204,635,718 $ 94,658,154 $ 299,293,872 Subserviced for the Company (1) $ 414,219 $ — $ 414,219 Delinquent mortgage loans: 30 days $ 6,677,179 $ 525,989 $ 7,203,168 60 days 1,983,381 113,238 2,096,619 90 days or more: Not in foreclosure 3,102,492 217,115 3,319,607 In foreclosure 1,027,493 127,025 1,154,518 Foreclosed 33,493 176,377 209,870 $ 12,824,038 $ 1,159,744 $ 13,983,782 Bankruptcy $ 1,415,106 $ 107,083 $ 1,522,189 Custodial funds managed by the Company (2) $ 3,033,658 $ 970,328 $ 4,003,986 (1) Certain of the mortgage loans for which the Company has purchased the MSRs are subserviced on the Company’s behalf by other mortgage loan servicers on an interim basis when servicing of the loans has not yet been transferred to the Company’s loan servicing platform. (2) Custodial funds include cash accounts holding funds on behalf of borrowers and investors 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’ borrowers and 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: March 31, December 31, State 2019 2018 (in thousands) California $ 54,790,956 $ 51,377,441 Florida 25,043,416 22,650,926 Texas 24,957,664 23,648,042 Virginia 19,845,177 19,011,950 Maryland 14,748,291 13,774,011 All other states 185,309,809 168,831,502 $ 324,695,313 $ 299,293,872

Fair Value

Fair Value	3 Months Ended
	Mar. 31, 2019
Fair Value
Fair Value	Note 6—Fair Value Most of the Company’s assets and certain of its liabilities are measured at or based on their fair values. 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. · 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 MSRs, its mortgage servicing liabilities (“MSLs”) and all of its non-cash financial assets other than Assets purchased from PennyMac Mortgage Investment Trust under agreements to resell , to be accounted for at fair value so changes in fair value will be reflected in income as they occur and more timely reflect the results of the Company’s performance. Management has also identified its ESS financing to be accounted for at fair value as a means of hedging the related 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: March 31, 2019 Level 1 Level 2 Level 3 Total (in thousands) Assets: Short-term investments $ 149,372 $ — $ — $ 149,372 Mortgage loans held for sale at fair value — 2,213,396 455,533 2,668,929 Derivative assets: Interest rate lock commitments — — 68,248 68,248 Repurchase agreement derivatives — — 24,632 24,632 Forward purchase contracts — 61,932 — 61,932 Forward sales contracts — 1,215 — 1,215 MBS put options — 6,287 — 6,287 MBS call options — 6,251 — 6,251 Put options on interest rate futures purchase contracts 2,639 — — 2,639 Call options on interest rate futures purchase contracts 14,078 — — 14,078 Total derivative assets before netting 16,717 75,685 92,880 185,282 Netting — — — (64,129) Total derivative assets 16,717 75,685 92,880 121,153 Investment in PennyMac Mortgage Investment Trust 1,553 — — 1,553 Mortgage servicing rights at fair value — — 2,905,090 2,905,090 $ 167,642 $ 2,289,081 $ 3,453,503 $ 5,846,097 Liabilities: Excess servicing spread financing payable to PennyMac Mortgage Investment Trust at fair value $ — $ — $ 205,081 $ 205,081 Derivative liabilities: Interest rate lock commitments — — 2,183 2,183 Forward purchase contracts — 3,170 — 3,170 Forward sales contracts — 25,962 — 25,962 Total derivative liabilities before netting — 29,132 2,183 31,315 Netting — — — (13,477) Total derivative liabilities — 29,132 2,183 17,838 Mortgage servicing liabilities at fair value — — 7,844 7,844 $ — $ 29,132 $ 215,108 $ 230,763 December 31, 2018 Level 1 Level 2 Level 3 Total (in thousands) Assets: Short-term investments $ 117,824 $ — $ — $ 117,824 Mortgage loans held for sale at fair value — 2,261,639 260,008 2,521,647 Derivative assets: Interest rate lock commitments — — 50,507 50,507 Repurchase agreement derivatives — — 26,770 26,770 Forward purchase contracts — 35,916 — 35,916 Forward sales contracts — 437 — 437 MBS put options — 720 — 720 MBS call options — 2,135 — 2,135 Put options on interest rate futures purchase contracts 866 — — 866 Call options on interest rate futures purchase contracts 5,965 — — 5,965 Total derivative assets before netting 6,831 39,208 77,277 123,316 Netting — — — (26,969) Total derivative assets 6,831 39,208 77,277 96,347 Investment in PennyMac Mortgage Investment Trust 1,397 — — 1,397 Mortgage servicing rights at fair value — — 2,820,612 2,820,612 $ 126,052 $ 2,300,847 $ 3,157,897 $ 5,557,827 Liabilities: Excess servicing spread financing payable to PennyMac Mortgage Investment Trust at fair value $ — $ — $ 216,110 $ 216,110 Derivative liabilities: Interest rate lock commitments — — 1,169 1,169 Forward purchase contracts — 215 — 215 Forward sales contracts — 26,762 — 26,762 Total derivative liabilities before netting — 26,977 1,169 28,146 Netting — — — (25,082) Total derivative liabilities — 26,977 1,169 3,064 Mortgage servicing liabilities at fair value — — 8,681 8,681 $ — $ 26,977 $ 225,960 $ 227,855 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, ESS and MSLs are measured using Level 3 fair value inputs. Following are rollforwards of these items for each of the quarters ended March 31, 2019 and 2018: Quarter ended March 31, 2019 Mortgage Net interest Repurchase Mortgage loans held rate lock agreement servicing for sale commitments (1) derivatives rights Total (in thousands) Assets: Balance, December 31, 2018 $ 260,008 $ 49,338 $ 26,770 $ 2,820,612 $ 3,156,728 Purchases and issuances, net 784,262 56,983 9,855 227,772 1,078,872 Sales and repayments (176,302) — (11,436) — (187,738) Mortgage servicing rights resulting from mortgage loan sales — — — 115,751 115,751 Changes in fair value included in income arising from: Changes in instrument-specific credit risk (6,091) — — — (6,091) Other factors — 59,978 (557) (259,045) (199,624) (6,091) 59,978 (557) (259,045) (205,715) Transfers from Level 3 to Level 2 (405,163) — — — (405,163) Transfers to real estate acquired in settlement of loans (1,181) — — — (1,181) Transfers of interest rate lock commitments to mortgage loans held for sale — (100,234) — — (100,234) Balance, March 31, 2019 $ 455,533 $ 66,065 $ 24,632 $ 2,905,090 $ 3,451,320 Changes in fair value recognized during the quarter relating to assets still held at March 31, 2019 $ (3,540) $ 66,065 $ — $ (259,045) $ (196,520) (1) For the purpose of this table, the IRLC asset and liability positions are shown net. Quarter ended March 31, 2019 Excess servicing Mortgage spread servicing financing liabilities Total (in thousands) Liabilities: Balance, December 31, 2018 $ 216,110 $ 8,681 $ 224,791 Issuance of excess servicing spread financing pursuant to a recapture agreement with PennyMac Mortgage Investment Trust 508 — 508 Accrual of interest 3,066 — 3,066 Repayments (10,552) — (10,552) Mortgage servicing liabilities resulting from mortgage loan sales — 794 794 Changes in fair value included in income (4,051) (1,631) (5,682) Balance, March 31, 2019 $ 205,081 $ 7,844 $ 212,925 Changes in fair value recognized during the quarter relating to liabilities still outstanding at March 31, 2019 $ (4,051) $ (1,631) $ (5,682) Quarter ended March 31, 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 adoption of the fair value method of accounting — — — 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 647,269 65,598 10,751 27,606 751,224 Sales and repayments (604,094) — (7) — (604,101) Mortgage servicing rights resulting from mortgage loan sales — — — 143,910 143,910 Changes in fair value included in income arising from: Changes in instrument-specific credit risk (8,755) — — — (8,755) Other factors — (44,913) (426) 62,537 17,198 (8,755) (44,913) (426) 62,537 8,443 Transfers from Level 3 to Level 2 (356,232) — — — (356,232) Transfers of interest rate lock commitments to mortgage loans held for sale — (28,061) — — (28,061) Balance, March 31, 2018 $ 460,399 $ 50,896 $ 20,974 $ 2,354,489 $ 2,886,758 Changes in fair value recognized during the quarter relating to assets still held at March 31, 2018 $ (7,598) $ 50,896 $ (77) $ 62,537 $ 105,758 (1) For the purpose of this table, the IRLC asset and liability positions are shown net. Quarter ended March 31, 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 904 — 904 Accrual of interest 3,934 — 3,934 Repayments (12,291) — (12,291) Mortgage servicing liabilities resulting from mortgage loan sales — 2,037 2,037 Changes in fair value included in income 6,921 (4,094) 2,827 Balance, March 31, 2018 $ 236,002 $ 12,063 $ 248,065 Changes in fair value recognized during the quarter relating to liabilities still outstanding at March 31, 2018 $ 6,921 $ (4,094) $ 2,827 The information used in the preceding roll forwards represents activity for any 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 quarters 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 March 31, 2019 2018 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 $ — $ 101,995 $ 101,995 $ — $ (6,118) $ (6,118) Mortgage servicing rights (259,045) — (259,045) 62,537 — 62,537 $ (259,045) $ 101,995 $ (157,050) $ 62,537 $ (6,118) $ 56,419 Liabilities: Excess servicing spread financing at fair value payable to PennyMac Mortgage Investment Trust $ 4,051 $ — $ 4,051 $ (6,921) $ — $ (6,921) Mortgage servicing liabilities 1,631 — 1,631 4,094 — 4,094 $ 5,682 $ — $ 5,682 $ (2,827) $ — $ (2,827) Following are the fair value and related principal amounts due upon maturity of assets accounted for under the fair value option: March 31, 2019 December 31, 2018 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 $ 2,357,344 $ 2,252,816 $ 104,528 $ 2,324,203 $ 2,220,371 $ 103,832 90 days or more delinquent: Not in foreclosure 235,957 240,728 (4,771) 143,631 144,011 (380) In foreclosure 75,628 79,577 (3,949) 53,813 56,254 (2,441) $ 2,668,929 $ 2,573,121 $ 95,808 $ 2,521,647 $ 2,420,636 $ 101,011 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: Real estate acquired in settlement of loans Level 1 Level 2 Level 3 Total (in thousands) March 31, 2019 $ — $ — $ 719 $ 719 December 31, 2018 $ — $ — $ 2,150 $ 2,150 The following table summarizes the total gains on assets measured at fair value on a nonrecurring basis: Quarter ended March 31, 2019 2018 (in thousands) Real estate acquired in settlement of loans $ 21 $ 27 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 are classified as “Level 3” fair value items due to the Company’s reliance on unobservable inputs to estimate these their fair values. The Company has concluded that the fair values of these assets and liabilities other than the Term Notes approximate their carrying values due to their short terms and/or variable interest rates. The fair value of the Term Notes at March 31, 2019 was $1.3 billion and was based on non-affiliate broker indications of value. The fair value of Term Notes at December 31, 2018 was $1.3 billion, and was estimated using a discounted cash flow approach using indications of market pricing spreads provided by non-affiliated brokers to develop an appropriate discount rate. 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. The Company has assigned responsibility for developing the fair values of IRLCs 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. The fair values of “Level 2” fair value mortgage loans 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 investors and thereafter may be repurchased to the extent eligible for resale into a new Ginnie Mae guaranteed pool. Such eligibility occurs when 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 are 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. The significant unobservable inputs used in the fair value measurement of the Company’s “Level 3” fair value mortgage loans held for sale 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: Key inputs (1) March 31, 2019 December 31, 2018 Discount rate: Range 3.1% – 9.2% 2.8% – 9.2% Weighted average 3.1% 2.9% Twelve-month projected housing price index change: Range 3.0% – 4.8% 2.2% – 5.0% Weighted average 3.3% 3.5% Voluntary prepayment / resale speed (2): Range 0.1% – 24.3% 0.1% – 21.8% Weighted average 22.0% 20.1% Total prepayment speed (3): Range 0.1% – 42.0% 0.1% – 40.5% Weighted average 39.2% 37.7% (1) Weighted average inputs are based on the 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 quarter end from the later of the beginning of the quarter 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 “Level 3” fair value assets or liabilities. The Company estimates the fair value of IRLCs 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 decreases 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 – 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 IRLCs are included as a component of the Company’s MSR hedging strategy. Following is a quantitative summary of key unobservable inputs used in the valuation of IRLCs: Key inputs (1) March 31, 2019 December 31, 2018 Pull-through rate: Range 12.2% – 100% 16.6% – 100% Weighted average 82.8% 84.1% Mortgage servicing rights value expressed as: Servicing fee multiple: Range 1.1 – 5.7 1.5 – 5.5 Weighted average 3.8 3.8 Percentage of unpaid principal balance: Range 0.3% – 2.7% 0.4% – 3.2% Weighted average 1.5% 1.5% (1) Weighted average inputs are based on the committed amounts. 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 – 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 separated for accounting purposes 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 March 31, 2019 and December 31, 2018. 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 the applicable pricing spread (discount rate), prepayment and default rates of the underlying mortgage loans, 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. Changes in the fair value of MSRs are included in Net mortgage loan servicing fees — Change in fair value of mortgage servicing rights and mortgage servicing liabilities in the consolidated statements of income. Following are the key inputs used in determining the fair value of MSRs received by the Company when it retains the obligation to service the mortgage loans it sells: Quarter ended March 31, 2019 2018 (Amount recognized and unpaid principal balance of underlying mortgage loans in thousands) MSR and pool characteristics: Amount recognized $ 115,751 $ 143,910 Unpaid principal balance of underlying mortgage loans $ 8,145,850 $ 10,162,316 Weighted average servicing fee rate (in basis points) 39 35 Key inputs (1): Pricing spread (2) Range 5.8% – 15.6% 7.4% – 14.1% Weighted average 8.9% 10.3% Annual total prepayment speed (3) Range 5.8% – 73.0% 3.9% – 49.0% Weighted average 15.3% 8.9% Life (in years) Range 0.8 – 10.2 1.1 – 11.6 Weighted average 5.8 8.2 Per-loan annual cost of servicing Range $78 – $100 $78 – $98 Weighted average $95 $89 (1) Weighted average inputs are based on the 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”)/swap curve for purposes of discounting cash flows relating to MSRs. (3) Prepayment speed is measured using Life Total CPR. Following is a quantitative summary of key inputs used in the valuation and assessment for the Company’s MSRs and the effect on the fair value from adverse changes in those inputs: March 31, 2019 December 31, 2018 (Carrying value, unpaid principal balance of underlying mortgage loans and effect on fair value amounts in thousands) MSR and pool characteristics: Carrying value $2,905,090 $2,820,612 Unpaid principal balance of underlying mortgage loans $219,834,361 $201,054,144 Weighted average note interest rate 4.0% 4.0% Weighted average servicing fee rate (in basis points) 33 33 Key inputs (1): Pricing spread (2): Range 6.0% – 15.8% 5.8% – 16.1% Weighted average 8.7% 8.7% Effect on fair value of: 5% adverse change ($45,330) ($45,268) 10% adverse change ($89,217) ($89,073) 20% adverse change ($172,915) ($172,556) Prepayment speed (3): Range 9.0% – 33.5% 8.4% – 32.6% Weighted average 11.4% 9.9% Average life (in years): Range 1.5 – 7.6 1.5 – 7.9 Weighted average 6.6 7.2 Effect on fair value of: 5% adverse change ($54,920) ($47,687) 10% adverse change ($107,628) ($93,626) 20% adverse change ($206,907) ($180,623) Annual per-loan cost of servicing: Range $78 – $100 $78 – $99 Weighted average $97 $93 Effect on fair value of: 5% adverse change ($24,494) ($22,944) 10% adverse change ($49,004) ($45,888) 20% adverse change ($98,024) ($91,775) (1) Weighted average inputs are based on the UPB of the underlying mortgage loans. (2) The Company applies a pricing spread to the United States Dollar LIBOR/swap curve for purposes of discounting cash flows relating to MSRs. (3) Prepayment speed is measured using Life Total CPR. The preceding sensitivity analyses are limited in that they were performed as of a particular date; only contemplate the movements in the indicated inputs; do not incorporate changes to other inputs; are subject to the accuracy of the models and inputs used; and do not incorporate other factors that would affect the Company’s overall financial performance in such events, including operational adjustments made by management to account for changing circumstances. For these reasons, the preceding estimates should not be viewed as earnings forecasts. Excess Servicing Spread Financing at Fair Value The Company categorizes ESS as a “Level 3” fair value liability. Because the ESS is a claim to a portion of the cash flows from MSRs, the fair value measurement of the ESS is similar to that of MSRs. The Company uses the same discounted cash flow approach to measuring the ESS as it uses to measure MSRs except that certain inputs relating to the cost to service the mortgage loans underlying the MSR and certain ancillary income are not included as these cash flows do not accrue to the holder of the ESS. The key inputs used in the estimation of ESS fair value include pricing spread (discount rate) and prepayment speed. Significant changes to either of those inputs in isolation could result in a significant change in the fair value of ESS. Changes in these key inputs are not necessarily directly related. ESS is generally subject to fair value increases when mortgage interest rates increase. Increasing mortgage interest rates normally discourage mortgage refinancing activity. Decreased refinancing activity increases the life of the mortgage loans underlying the ESS, thereby increasing its fair value. Changes in the fair value of ESS are included in Net mortgage loan servicing fees—Change in fair value of excess servicing spread payable to PennyMac Mortgage Investment Trust. Following are the key inputs used in determining the fair value of ESS financing: March 31, December 31, 2019 2018 Carrying value (in thousands) $205,081 $216,110 ESS and pool characteristics: Unpaid principal balance of underlying mortgage loans (in thousands) $22,664,211 $23,196,033 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 3.0% – 3.3% 2.8% – 3.2% Weighted average 3.2% 3.1% Annualized prepayment speed (3): Range 8.5% – 29.9% 8.2% – 29.5% Weighted average 10.4% 9.7% Average life (in years): Range 1.5 – 7.4 1.6 – 7.6 Weighted average 6.5 6.8 (1) Weighted average inputs are based on the UPB of the underlying mortgage loans. (2) The Company applies a pricing spread to the United States Dollar LIBOR/swap curve for purposes of discounting cash flows relating to ESS. (3) Prepayment speed is measured using Life Total CPR. Mortgage Servicing Liabilities MSLs are categorized as “Level 3” fair value liabilities. The Company uses a discounted cash flow approach to estimate the fair value of MSLs. This approach consists of projecting net servicing cash flows discounted at a rate that management believes market participants would use in their determinations of fair value. The key inputs used in the estimation of the fair value of MSLs include the applicable pricing spread (discount rate), the prepayment rates of the underlying mortgage loans, and the per-loan annual cost to service the respective mortgage loans. Changes in the fair value of MSLs are included in Net servicing fees — Change in fair value of mortgage servicing rights and mortgage servicing liabilities in the consolidated statements of income. Following are the key inputs used in determining the fair value of MSLs: March 31, December 31, 2019 2018 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: Pricing spread (1) Prepayment speed (2) Average life (in years) Annual per-loan cost of servicing $ $ (1) The Company applies a pricing spread to the United States Dollar LIBOR/swap curve for purposes of discounting cash flows relating to MSLs. (2) Prepayment speed is measured using Life Total CPR.

Mortgage Loans Held for Sale at

Mortgage Loans Held for Sale at Fair Value	3 Months Ended
	Mar. 31, 2019
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: March 31, December 31, 2019 2018 (in thousands) Government-insured or guaranteed $ 2,083,470 $ 2,116,126 Conventional conforming 129,926 145,513 Home equity lines of credit 86 — Purchased from Ginnie Mae pools serviced by the Company 446,290 250,585 Repurchased pursuant to representations and warranties 9,157 9,423 $ 2,668,929 $ 2,521,647 Fair value of mortgage loans pledged to secure: Assets sold under agreements to repurchase $ 2,065,151 $ 1,923,857 Mortgage loan participation purchase and sale agreements 574,518 555,001 $ 2,639,669 $ 2,478,858

Derivative Activities

Derivative Activities	3 Months Ended
	Mar. 31, 2019
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: March 31, 2019 December 31, 2018 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 3,821,942 $ 68,248 $ 2,183 2,805,400 $ 50,507 $ 1,169 Repurchase agreement derivatives 24,632 — 26,770 — Used for hedging purposes: Forward purchase contracts 9,313,389 61,932 3,170 6,657,026 35,916 215 Forward sales contracts 7,583,005 1,215 25,962 6,890,046 437 26,762 MBS put options 9,425,000 6,287 — 4,635,000 720 — MBS call options 3,350,000 6,251 — 1,450,000 2,135 — Put options on interest rate futures purchase contracts 3,350,000 2,639 — 3,085,000 866 — Call options on interest rate futures purchase contracts 2,250,000 14,078 — 1,512,500 5,965 — Treasury futures purchase contracts 1,810,000 — — 835,000 — — Treasury futures sale contracts 1,075,000 — — 1,450,000 — — Interest rate swap futures purchase contracts 1,025,000 — — 625,000 — — Total derivatives before netting 185,282 31,315 123,316 28,146 Netting (64,129) (13,477) (26,969) (25,082) $ 121,153 $ 17,838 $ 96,347 $ 3,064 Deposits placed with derivative counterparties $ 50,652 $ 1,887 The following table summarizes notional amount activity for derivative contracts used in the Company’s hedging activities: Quarter ended March 31, 2019 Notional Notional amount amount beginning of Dispositions/ end of Instrument quarter Additions expirations quarter (in thousands) Forward purchase contracts 6,657,026 52,621,845 (49,965,482) 9,313,389 Forward sale contracts 6,890,046 59,673,487 (58,980,528) 7,583,005 MBS put options 4,635,000 19,160,000 (14,370,000) 9,425,000 MBS call options 1,450,000 4,500,000 (2,600,000) 3,350,000 Put options on interest rate futures purchase contracts 3,085,000 6,675,000 (6,410,000) 3,350,000 Call options on interest rate futures purchase contracts 1,512,500 4,462,800 (3,725,300) 2,250,000 Put options on interest rate futures sale contracts — 10,135,300 (10,135,300) — Treasury futures purchase contracts 835,000 4,111,200 (3,136,200) 1,810,000 Treasury futures sale contracts 1,450,000 2,761,200 (3,136,200) 1,075,000 Interest rate swap futures purchase contracts 625,000 400,000 — 1,025,000 Quarter ended March 31, 2018 Notional Notional amount amount beginning of Dispositions/ end of Instrument quarter Additions expirations quarter (in thousands) Forward purchase contracts 4,920,883 45,330,785 (43,707,885) 6,543,783 Forward sale contracts 5,204,796 56,355,552 (54,636,002) 6,924,346 MBS put options 4,925,000 4,500,000 (5,675,000) 3,750,000 MBS call options — 5,675,000 (5,675,000) — Put options on interest rate futures purchase contracts 2,125,000 5,525,000 (4,850,000) 2,800,000 Call options on interest rate futures purchase contracts 100,000 375,000 (250,000) 225,000 Put options on interest rate futures sale contracts — 4,850,000 (4,850,000) — Call options on interest rate futures sale contracts — 250,000 (250,000) — Treasury futures purchase contracts 100,000 1,904,900 (1,494,900) 510,000 Treasury futures sale contracts — 3,406,200 (2,156,200) 1,250,000 Interest rate swap futures purchase contracts 1,400,000 465,000 (1,400,000) 465,000 Interest rate swap futures sale contracts — 1,400,000 (1,400,000) — 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: March 31, 2019 December 31, 2018 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 $ 68,248 $ — $ 68,248 $ 50,507 $ — $ 50,507 Repurchase agreement derivatives 24,632 — 24,632 26,770 — 26,770 92,880 — 92,880 77,277 — 77,277 Derivatives subject to master netting arrangements: Forward purchase contracts 61,932 — 61,932 35,916 — 35,916 Forward sale contracts 1,215 — 1,215 437 — 437 MBS put options 6,287 — 6,287 720 — 720 MBS call options 6,251 — 6,251 2,135 — 2,135 Put options on interest rate futures purchase contracts 2,639 — 2,639 866 — 866 Call options on interest rate futures purchase contracts 14,078 — 14,078 5,965 — 5,965 Netting (64,129) (64,129) — (26,969) (26,969) 92,402 (64,129) 28,273 46,039 (26,969) 19,070 $ 185,282 $ (64,129) $ 121,153 $ 123,316 $ (26,969) $ 96,347 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. March 31, 2019 December 31, 2018 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 $ 68,248 $ — $ — $ 68,248 $ 50,507 $ — $ — $ 50,507 Deutsche Bank 24,632 — — 24,632 26,770 — — 26,770 RJ O'Brien 16,717 — — 16,717 6,831 — — 6,831 Bank of America, N.A. 4,052 — — 4,052 2,781 — — 2,781 JPMorgan Chase Bank, N.A. 3,494 — — 3,494 1,399 — — 1,399 Wells Fargo Bank, N.A. 2,275 — — 2,275 3,707 — — 3,707 Goldman Sachs 1,286 — — 1,286 — — — — Citibank, N.A. — — — — 2,488 — — 2,488 Others 449 — — 449 1,864 — — 1,864 $ 121,153 $ — $ — $ 121,153 $ 96,347 $ — $ — $ 96,347 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. March 31, 2019 December 31, 2018 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 $ 2,183 $ — $ 2,183 $ 1,169 $ — $ 1,169 Derivatives subject to a master netting arrangement: Forward purchase contracts 3,170 — 3,170 215 — 215 Forward sale contracts 25,962 — 25,962 26,762 — 26,762 Netting — (13,477) (13,477) — (25,082) (25,082) 29,132 (13,477) 15,655 26,977 (25,082) 1,895 Total derivatives 31,315 (13,477) 17,838 28,146 (25,082) 3,064 Assets sold under agreements to repurchase: Amount outstanding 2,152,588 — 2,152,588 1,935,200 — 1,935,200 Unamortized debt issuance premiums and costs, net (650) — (650) (1,341) — (1,341) 2,151,938 — 2,151,938 1,933,859 — 1,933,859 $ 2,183,253 $ (13,477) $ 2,169,776 $ 1,962,005 $ (25,082) $ 1,936,923 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. March 31, 2019 December 31, 2018 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 $ 2,183 $ — $ — $ 2,183 $ 1,169 $ — $ — $ 1,169 Credit Suisse First Boston Mortgage Capital LLC 848,914 (845,622) — 3,292 691,030 (690,766) — 264 Deutsche Bank 692,010 (692,010) — — 741,978 (741,978) — — BNP Paribas 199,395 (199,395) — — 149,675 (149,482) — 193 Bank of America, N.A. 170,859 (170,859) — — 170,820 (170,820) — — Citibank, N.A. 83,533 (82,659) — 874 14,960 (14,960) — — Morgan Stanley Bank, N.A. 80,998 (71,069) — 9,929 77,687 (77,687) — — JPMorgan Chase Bank, N.A. 50,875 (50,875) — — 54,326 (54,326) — — Royal Bank of Canada 40,099 (40,099) — — 35,181 (35,181) — — Federal National Mortgage Association 764 — — 764 — — — — Others 796 — — 796 1,438 — — 1,438 $ 2,170,426 $ (2,152,588) $ — $ 17,838 $ 1,938,264 $ (1,935,200) $ — $ 3,064 Following are the gains (losses) recognized by the Company on derivative financial instruments and the income statement line items where such gains and losses are included: Quarter ended March 31, Derivative activity Income statement line 2019 2018 (in thousands) Interest rate lock commitments Net gains on mortgage loans held for sale at fair value $ 16,727 $ (7,376) Repurchase agreement derivatives Interest expense $ (557) $ (426) Hedged item: Interest rate lock commitments and mortgage loans held for sale Net gains on mortgage loans held for sale at fair value $ (34,668) $ 87,747 Mortgage servicing rights Net mortgage loan servicing fees –C hange in fair value of mortgage servicing rights and mortgage servicing liabilities $ 134,557 $ (103,593)

Mortgage Servicing Rights and M

Mortgage Servicing Rights and Mortgage Servicing Liabilities	3 Months Ended
	Mar. 31, 2019
Mortgage Servicing Rights and Mortgage Servicing Liabilities
Mortgage Servicing Rights and Mortgage Servicing Liabilities	Note 9—Mortgage Servicing Rights and Mortgage Servicing Liabilities Mortgage Servicing Rights at Fair Value The activity in MSRs is as follows: Quarter ended March 31, 2019 2018 (in thousands) Balance at beginning of quarter $ 2,820,612 $ 638,010 Reclassification of mortgage servicing rights previously accounted for under the amortization method pursuant to adoption of the fair value method of accounting — 1,482,426 Balance after reclassification 2,820,612 2,120,436 Additions: Purchases 227,772 27,606 Resulting from mortgage loan sales 115,751 143,910 343,523 171,516 Change in fair value due to: Changes in inputs used in valuation model (1) (161,638) 130,449 Other changes in fair value (2) (97,407) (67,912) Total change in fair value (259,045) 62,537 Balance at end of quarter $ 2,905,090 $ 2,354,489 March 31, December 31, 2019 2018 (in thousands) Fair value of mortgage servicing rights pledged to secure Assets sold under agreements to repurchase and Notes payable $ 2,675,704 $ 2,807,333 (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 Liabilities at Fair Value The activity in MSLs is summarized below: Quarter ended March 31, 2019 2018 (in thousands) Balance at beginning of quarter $ 8,681 $ 14,120 Mortgage servicing liabilities resulting from mortgage loan sales 794 2,037 Changes in fair value due to: Changes in valuation inputs used in valuation model (1) 3,301 2,643 Other changes in fair value (2) (4,932) (6,737) Total change in fair value (1,631) (4,094) Balance at end of quarter $ 7,844 $ 12,063 (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—Mortgage 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—Mortgage loan servicing fees—Ancillary and other fees on the Company’s consolidated statements of income. Such amounts are summarized below: Quarter ended March 31, 2019 2018 (in thousands) Contractual servicing fees $ 166,790 $ 135,483 Ancillary and other fees: Late charges 9,812 7,459 Other 1,661 1,562 $ 178,263 $ 144,504

Leases

Leases	3 Months Ended
	Mar. 31, 2019
Leases
Leases	Note 10—Leases The Company has operating lease agreements relating to its facilities. The Company’s operating lease agreements have remaining terms ranging from less than one year to ten years, some of which include options to extend for up to five years. None of the Company’s operating lease agreements require the Company to make variable lease payments. The Company’s lease agreements are summarized below: Quarter ended March 31, 2019 (dollars in thousands) Lease expense: Operating leases $ 3,229 Short-term leases 217 Sublease income (32) Net lease expense included in Occupancy and equipment $ 3,414 Other information: Cash payments for operating leases $ 3,846 Operating lease right-of-use assets recognized upon the adoption of ASU 2016-02 $ 58,598 Weighted averages: Remaining lease term (in years) 6.3 Discount rate 4.6% The maturities of the Company’s operating lease liabilities are summarized below: Twelve months ended March 31, Operating leases (in thousands) 2020 $ 15,683 2021 14,993 2022 13,397 2023 11,941 2024 10,343 Thereafter 21,999 Total lease payments 88,356 Less imputed interest (11,983) Total $ 76,373 As of March 31, 2019, the Company has one operating lease that has not yet commenced with an undiscounted minimum payment commitment totaling $1.5 million. The lease is expected to commence in May 2020.

Borrowings

Borrowings	3 Months Ended
	Mar. 31, 2019
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 March 31, 2019. Assets Sold Under Agreements 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 March 31, 2019 2018 (dollars in thousands) Average balance of assets sold under agreements to repurchase $ 1,437,957 $ 1,643,443 Weighted average interest rate (1) 4.47 % 3.59 % Total interest expense (2) $ 8,635 $ 6,732 Maximum daily amount outstanding $ 2,152,588 $ 2,380,121 March 31, December 31, 2019 2018 (dollars in thousands) Carrying value: Unpaid principal balance $ 2,152,588 $ 1,935,200 Unamortized debt issuance premiums and costs, net (650) (1,341) $ 2,151,938 $ 1,933,859 Weighted average interest rate 4.35 % 4.22 % Available borrowing capacity (3): Committed $ 625,413 $ 695,767 Uncommitted 2,206,999 2,354,033 $ 2,832,412 $ 3,049,800 Fair value of assets securing repurchase agreements: Mortgage loans held for sale $ 2,065,151 $ 1,923,857 Assets purchased from PennyMac Mortgage Investment Trust under agreements to resell $ 125,929 $ 131,025 Servicing advances (4) $ 147,435 $ 162,895 Mortgage servicing rights (4) $ 2,574,228 $ 2,807,333 Margin deposits placed with counterparties (5) $ 3,750 $ 3,750 (1) Excludes the effect of amortization of net premiums totaling $7.4 million and $8.0 million for the quarters ended March 31, 2019 and 2018, 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. During the quarters ended March 31, 2019 and 2018, the Company included $9.3 million and $10.2 million, respectively, of such incentives as reductions in Interest expense . The master repurchase agreement expires on August 21, 2019, unless terminated earlier at the option of the lender. The Company expects that it will cease to accrue the incentives under the repurchase agreement in the second quarter of 2019. (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 described in Notes Payable . The VFN financing 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 March 31, 2019 Balance (dollars in thousands) Within 30 days $ 518,972 Over 30 to 90 days 1,334,389 Over 90 to 180 days 44,227 Over one to two years 255,000 Total assets sold under agreements to repurchase $ 2,152,588 Weighted average maturity (in months) 2.5 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 sold under agreements to repurchase is summarized by counterparty below as of March 31, 2019: Weighted average maturity of advances under repurchase Counterparty Amount at risk agreement Facility maturity (in thousands) Credit Suisse First Boston Mortgage Capital LLC $ 1,165,339 April 26, 2020 April 26, 2020 Credit Suisse First Boston Mortgage Capital LLC $ 26,541 April 16, 2019 April 26, 2019 Deutsche Bank AG $ 90,911 June 16, 2019 August 21, 2019 BNP Paribas $ 16,691 June 19, 2019 August 2, 2019 Bank of America, N.A. $ 14,405 May 4, 2019 October 28, 2019 Morgan Stanley Bank, N.A. $ 5,237 June 15, 2019 August 23, 2019 Citibank, N.A. $ 4,828 June 7, 2019 June 7, 2019 JP Morgan Chase Bank, N.A. $ 4,360 May 31, 2019 October 11, 2019 Royal Bank of Canada $ 2,631 June 28, 2019 June 28, 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 a 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 March 31, 2019 2018 (dollars in thousands) Average balance $ 236,667 $ 215,614 Weighted average interest rate (1) 3.68 % 2.89 % Total interest expense $ 2,311 $ 1,727 Maximum daily amount outstanding $ 548,038 $ 527,706 (1) Excludes the effect of amortization of facility fees totaling $135,000 and $171,000 for the quarters ended March 31, 2019 and 2018, respectively. March 31, December 31, 2019 2018 (dollars in thousands) Carrying value: Unpaid principal balance $ 548,038 $ 532,466 Unamortized debt issuance costs (159) (215) $ 547,879 $ 532,251 Weighted average interest rate 3.75 % 3.77 % Fair value of mortgage loans pledged to secure mortgage loan participation purchase and sale agreements $ 574,518 $ 555,001 Notes Payable Term Notes 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). Concurrent with issuance of the 2018-GT1 Notes, the Company also redeemed certain notes previously issued by the Issuer Trust. As a result, the Company recognized unamortized debt issuance costs of $3.4 million in Interest Expense during the quarter ended March 31, 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). Concurrent with the issuance of the 2018-GT2 Notes, the Company also redeemed certain notes previously issued by the Issuer Trust. As a result, the Company recognized unamortized debt issuance costs of $4.6 million in Interest Expense during the quarter ended September 31, 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. Corporate Revolving Line of Credit On November 1, 2018, the Company, 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 (“CS Cayman”), as collateral agent, and PNMAC Holdings, Inc. (formerly known as PennyMac Financial Services, Inc.) 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 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 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 were 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 PFSI, PNMAC Holdings, Inc., 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. MSR Note Payable On February 1, 2018, the Company issued a note payable in favor of CS Cayman that is secured by Fannie Mae and Freddie Mac MSRs. Interest is charged at a rate based on LIBOR plus the applicable contract margin. The facility expires on February 1, 2020. The maximum amount that the Company may borrow under the note payable is $400 million, less any amount outstanding under the agreement to repurchase pursuant to which the Company finances the VFN. The Company did not borrow under this note payable during the quarters ended March 31, 2019 or 2018. Notes payable are summarized below: Quarter ended March 31, 2019 2018 (dollars in thousands) Average balance $ 1,300,000 $ 979,868 Weighted average interest rate (1) 5.25 % 5.63 % Total interest expense $ 17,995 $ 18,222 Maximum daily amount outstanding $ 1,300,000 $ 1,150,000 (1) Excluding the effect of amortization of debt issuance costs totaling $0.7 million and $4.2 million for the quarters ended March 31, 2019 and 2018, respectively. Also excludes the effect of non-utilization fees of $196,000 and $192,000 for the quarters ended March 31, 2019 and 2018, respectively. March 31, December 31, 2019 2018 (dollars in thousands) Carrying value: Unpaid principal balance $ 1,300,000 $ 1,300,000 Unamortized debt issuance costs (7,264) (7,709) $ 1,292,736 $ 1,292,291 Weighted average interest rate 5.24 % 5.07 % Unused amount $ 150,000 $ 150,000 Assets pledged to secure notes payable: Cash $ 93,372 $ 108,174 Servicing advances (1) $ 147,435 $ 162,895 Mortgage servicing rights (1) $ 2,675,704 $ 2,807,333 (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. The VFN financing 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 March 31, 2019 2018 (dollars in thousands) Average balance $ 5,848 $ 18,703 Weighted average interest rate 4.50 % 3.64 % Total interest expense $ 66 $ 170 Maximum daily amount outstanding $ 6,605 $ 20,971 March 31, December 31, 2019 2018 (dollars in thousands) Unpaid principal balance $ 5,091 $ 6,605 Weighted average interest rate 4.48 % 4.46 % Assets pledged to secure obligations under capital lease: Furniture, fixtures and equipment $ 15,254 $ 16,281 Capitalized software $ 940 $ 1,017 Excess Servicing Spread Financing at Fair Value In conjunction with its 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 March 31, 2019 2018 (in thousands) Balance at beginning of quarter $ 216,110 $ 236,534 Issuances of excess servicing spread to PennyMac Mortgage Investment Trust pursuant to recapture agreement 508 904 Accrual of interest 3,066 3,934 Repayment (10,552) (12,291) Change in fair value (4,051) 6,921 Balance at end of quarter $ 205,081 $ 236,002

Liability for Losses Under Repr

Liability for Losses Under Representations and Warranties	3 Months Ended
	Mar. 31, 2019
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 March 31, 2019 2018 (in thousands) Balance at beginning of quarter $ 21,155 $ 20,053 Provision for losses on mortgage loans sold: Resulting from sales of mortgage loans 1,067 1,492 Reduction in liability due to change in estimate (4,210) (1,113) Incurred losses, net (30) (3) Balance at end of quarter $ 17,982 $ 20,429 Unpaid principal balance of mortgage loans subject to representations and warranties at end of quarter $ 133,698,782 $ 127,056,220

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2019
Income Taxes
Income Taxes	Note 13—Income Taxes The Company’s effective income tax rates were 23.5% and 8.3% for the quarters ended March 31, 2019 and 2018, respectively. Beginning November 1, 2018, the Company’s income subject to income tax includes the portion of its income formerly attributed to the noncontrolling interest, which prior to the Reorganization was not subject to income tax at the Company level. As a result, the Company reported a higher effective tax rate for the quarter ended March 31, 2019 than for the quarter ended March 31, 2018.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2019
Commitments and Contingencies.
Commitments and Contingencies	Note 14—Commitments and Contingencies Litigation The Company is a party to legal proceedings and potential claims arising in the ordinary course of its business. The amount, if any, of ultimate liability with respect to such matters cannot be determined, but despite the inherent uncertainties of litigation, management believes that the ultimate disposition of such proceedings and exposure will not have a material adverse effect on the financial condition, results of operations, or cash flows of 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 by the various states it operates in as well as federal agencies such as the Consumer Financial Protection Bureau, HUD, and the FHA and is subject to the requirements of the Agencies to which it sells loans and for which it performs loan servicing activities. As a result, the Company may become involved in information-gathering requests, reviews, investigations and proceedings (both formal and informal) by such 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 $3.8 billion as of March 31, 2019.

Stockholders' Equity

Stockholders' Equity	3 Months Ended
	Mar. 31, 2019
Stockholders' Equity.
Stockholders' Equity	Note 15—Stockholders’ Equity In June 2017, the Company’s board of directors authorized a stock repurchase program under which the Company may repurchase up to $50 million of its outstanding common stock. The Company has repurchased and cancelled $13.9 million of shares of common stock under the stock repurchase program from its inception through March 31, 2019.

Noncontrolling Interest

Noncontrolling Interest	3 Months Ended
	Mar. 31, 2019
Noncontrolling Interest.
Noncontrolling Interest	Note 16—Noncontrolling Interest As a result of the Reorganization, noncontrolling interest unitholders contributed their Class A units of PNMAC in exchange for shares of the Company’s common stock without any cash consideration on a one-for-one basis. Consequently, the noncontrolling interest was reclassified to the Company’s paid-in capital accounts, net of deferred income taxes attributable to the noncontrolling interests. 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 March 31, 2018 (in thousands) Net income attributable to PennyMac Financial Services, Inc. common stockholders $ 16,619 Increase in the Company's paid-in capital accounts for exchanges of Class A units of Private National Mortgage Acceptance Company, LLC to Class A common stock of PennyMac Financial Services, Inc. $ 14,859 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 748

Net Gains on Mortgage Loans Hel

Net Gains on Mortgage Loans Held for Sale	3 Months Ended
	Mar. 31, 2019
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 March 31, 2019 2018 (in thousands) From non-affiliates: Cash loss: Mortgage loans $ (41,242) $ (181,801) Hedging activities (8,927) 104,396 (50,169) (77,405) Non-cash gain: Mortgage servicing rights and mortgage servicing liabilities 114,957 141,873 Provision for losses relating to representations and warranties: Pursuant to mortgage loan sales (1,067) (1,492) Reduction in liability due to change in estimate 4,210 1,113 Change in fair value relating to mortgage loans and derivatives held at quarter end: Interest rate lock commitments 16,727 (7,376) Mortgage loans (164) 18,964 Hedging derivatives (25,741) (16,649) 58,753 59,028 From PennyMac Mortgage Investment Trust 26,023 12,386 $ 84,776 $ 71,414

Net Interest Income

Net Interest Income	3 Months Ended
	Mar. 31, 2019
Net Interest Income
Net Interest Income	Note 18—Net Interest Income Net interest income is summarized below: Quarter ended March 31, 2019 2018 (in thousands) Interest income: From non-affiliates: Cash and short-term investments $ 1,933 $ 608 Mortgage loans held for sale at fair value 31,343 26,607 Placement fees relating to custodial funds 23,261 13,424 56,537 40,639 From PennyMac Mortgage Investment Trust—Assets purchased from PennyMac Mortgage Investment Trust under agreements to resell 1,796 1,976 58,333 42,615 Interest expense: To non-affiliates: Assets sold under agreements to repurchase (1) 8,635 6,732 Mortgage loan participation purchase and sale agreements 2,311 1,727 Notes payable 17,995 18,222 Obligations under capital lease 66 170 Interest shortfall on repayments of mortgage loans serviced for Agency securitizations 4,311 4,830 Interest on mortgage loan impound deposits 1,159 1,130 34,477 32,811 To PennyMac Mortgage Investment Trust—Excess servicing spread financing at fair value 3,066 3,934 37,543 36,745 $ 20,790 $ 5,870 (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. During the quarters ended March 31, 2019 and 2018, the Company included $9.3 million and $10.2 million, respectively, of such incentives as reductions in Interest expense . The master repurchase agreement expires on August 21, 2019, unless terminated earlier at the option of the lender. The Company expects that it will cease to accrue the financing incentives under the repurchase agreement in the second quarter of 2019.

Stock-based Compensation

Stock-based Compensation	3 Months Ended
	Mar. 31, 2019
Stock-based Compensation
Stock-based Compensation	Note 19—Stock-based Compensation As of March 31, 2019, the Company had one stock-based compensation plan. Following is a summary of the stock-based compensation activity: Quarter ended March 31, 2019 2018 (in thousands) Grants: Units: Performance-based RSUs 665 524 Stock options 344 674 Time-based RSUs 330 316 Grant date fair value: Performance-based RSUs $ 15,253 $ 12,791 Stock options 2,965 6,147 Time-based RSUs 7,545 7,703 Total $ 25,763 $ 26,641 Vestings and exercises: Performance-based RSUs vested 648 — Stock options exercised 89 196 Time-based RSUs vested 291 234 Compensation expense $ 4,531 $ 6,171

Earnings Per Share of Common St

Earnings Per Share of Common Stock	3 Months Ended
	Mar. 31, 2019
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 quarter. 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 based on the outstanding stock-based compensation awards. As a result of the Reorganization, all Class A units of PNMAC converted into shares of the Company’s common stock on a one-for-one basis. The following table summarizes the basic and diluted earnings per share calculations: Quarter ended March 31, 2019 2018 (in thousands, except per share amounts) Basic earnings per share of common stock: Net income attributable to common stockholders $ 46,135 $ 16,619 Weighted average shares of common stock outstanding 77,653 23,832 Basic earnings per share of common stock $ 0.59 $ 0.70 Diluted earnings per share of common stock: Net income attributable to common stockholders $ 46,135 $ 16,619 Net income attributable to dilutive stock-based compensation units — 1,400 Net income attributable to PennyMac Class A units exchangeable to Class A common stock, net of income taxes — 35,449 Net income attributable to common stockholders for diluted earnings per share $ 46,135 $ 53,468 Weighted average shares of common stock outstanding applicable to basic earnings per share 77,653 23,832 Effect of dilutive shares: Common shares issuable under stock-based compensation plan 1,633 2,947 PennyMac Class A units exchangeable to Class A common stock — 52,682 Weighted average shares of common stock applicable to diluted earnings per share 79,286 79,461 Diluted earnings per share of common stock $ 0.58 $ 0.67 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 anti-dilutive weighted-average number of outstanding performance-based restricted share units (“RSUs”), time-based RSUs, and stock options excluded from the calculation of diluted earnings per share: Quarter ended March 31, 2019 2018 (in thousands except for weighted-average exercise price) Performance-based RSUs (1) 1,279 134 Time-based RSUs 61 — Stock options (2) 706 172 Total anti-dilutive stock-based compensation 2,046 306 Weighted average exercise price of anti-dilutive stock options (2) $ 24.26 $ 24.40 (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 prices for the quarter.

Supplemental Cash Flow Informat

Supplemental Cash Flow Information	3 Months Ended
	Mar. 31, 2019
Supplemental Cash Flow Information
Supplemental Cash Flow Information	Note 21—Supplemental Cash Flow Information Quarter ended March 31, 2019 2018 (in thousands) Cash paid for interest $ 33,952 $ 40,227 Cash paid for income taxes, net $ 66 $ 2 Non-cash investing activity: Mortgage servicing rights resulting from mortgage loan sales $ 115,751 $ 143,910 Mortgage servicing liabilities resulting from mortgage loan sales $ 794 $ 2,037 Unsettled portion of MSR acquisitions $ 16,291 $ 62 Operating right-of-use assets recognized upon the adoption of ASU 2016-02 $ 58,598 $ — Non-cash financing activity: Issuance of Excess servicing spread payable to PennyMac Mortgage Investment Trust pursuant to a recapture agreement $ 508 $ 904 Issuance of common stock and Class A common stock in settlement of director fees $ 86 $ 79

Regulatory Capital and Liquidit

Regulatory Capital and Liquidity Requirements	3 Months Ended
	Mar. 31, 2019
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 capital and liquidity to remain a seller/servicer in good standing with the Agencies. Such capital 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 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 600 basis points. 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: March 31, 2019 December 31, 2018 Agency–company subject to requirement Actual (1) Requirement (1) Actual (1) Requirement (1) (dollars in thousands) Capital Fannie Mae & Freddie Mac – PLS $ 1,833,819 $ 561,020 $ 1,788,430 $ 514,089 Ginnie Mae – PLS $ 1,543,756 $ 819,028 $ 1,535,826 $ 733,342 Ginnie Mae – PennyMac $ 1,802,129 $ 900,931 $ 1,786,430 $ 806,676 HUD – PLS $ 1,543,756 $ 2,500 $ 1,535,826 $ 2,500 Liquidity Fannie Mae & Freddie Mac – PLS $ 287,089 $ 77,292 $ 271,802 $ 70,775 Ginnie Mae – PLS $ 287,089 $ 208,693 $ 271,802 $ 189,592 Tangible net worth / Total assets ratio Fannie Mae & Freddie Mac – PLS 20 % 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

Segments	3 Months Ended
	Mar. 31, 2019
Segments
Segments	Note 23—Segments 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 mortgage loans, execution and management of early buyout loan 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 and managing the acquired assets and correspondent production activities for PMT. Financial performance and results by segment are as follows: Quarter ended March 31, 2019 Mortgage Banking Investment Production Servicing Total Management Total (in thousands) Revenue: (1) Net mortgage loan servicing fees $ — $ 80,571 $ 80,571 $ — $ 80,571 Net gains on mortgage loans held for sale at fair value 66,721 18,055 84,776 — 84,776 Mortgage loan origination fees 23,930 — 23,930 — 23,930 Fulfillment fees from PennyMac Mortgage Investment Trust 27,574 — 27,574 — 27,574 Net interest income (expense): Interest income 14,369 43,964 58,333 — 58,333 Interest expense 3,915 33,621 37,536 7 37,543 10,454 10,343 20,797 (7) 20,790 Management fees — — — 7,248 7,248 Other 488 765 1,253 1,563 2,816 Total net revenue 129,167 109,734 238,901 8,804 247,705 Expenses 82,161 98,571 180,732 6,682 187,414 Income before provision for income taxes $ 47,006 $ 11,163 $ 58,169 $ 2,122 $ 60,291 Segment assets at quarter end $ 2,501,468 $ 5,299,813 $ 7,801,281 $ 17,719 $ 7,819,000 (1) All revenues are from external customers. Quarter ended March 31, 2018 Mortgage Banking Investment Production Servicing Total Management Total (in thousands) Revenue: (1) Net mortgage loan servicing fees $ — $ 116,789 $ 116,789 $ — $ 116,789 Net gains on mortgage loans held for sale at fair value 36,198 35,216 71,414 — 71,414 Mortgage loan origination fees 24,563 — 24,563 — 24,563 Fulfillment fees from PennyMac Mortgage Investment Trust 11,944 — 11,944 — 11,944 Net interest income (expense): Interest income 14,248 28,367 42,615 — 42,615 Interest expense 2,102 34,627 36,729 16 36,745 12,146 (6,260) 5,886 (16) 5,870 Management fees — — — 5,775 5,775 Carried Interest from Investment Funds — — — (180) (180) Other 316 395 711 1,315 2,026 Total net revenue 85,167 146,140 231,307 6,894 238,201 Expenses 67,997 91,265 159,262 5,943 165,205 Income before provision for income taxes $ 17,170 $ 54,875 $ 72,045 $ 951 $ 72,996 Segment assets at quarter end (2) $ 2,251,354 $ 4,630,946 $ 6,882,300 $ 11,877 $ 6,894,177 (1) All revenues are from external customers. (2) Excludes parent Company assets, which consist of $8.7 million of cash.

Subsequent Events

Subsequent Events	3 Months Ended
	Mar. 31, 2019
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, there have been no material events that would require recognition in our consolidated financial statements or disclosure in the notes to the consolidated financial statements.

Transactions with Affiliates (T

Transactions with Affiliates (Tables) - PMT	3 Months Ended
	Mar. 31, 2019
Transactions with Affiliates
Summary of lending activity between the Company and affiliate	Quarter ended March 31, 2019 2018 (in thousands) Net gains (loss) on mortgage loans held for sale at fair value: Net gains on mortgage loans held for sale to PMT $ 27,146 $ 13,811 Mortgage servicing rights and excess servicing spread recapture incurred (1,123) (1,425) $ 26,023 $ 12,386 Sale of mortgage loans held for sale to PMT $ 884,510 $ 781,326 Fulfillment fee revenue $ 27,574 $ 11,944 Unpaid principal balance of mortgage loans fulfilled for PMT subject to fulfillment fees $ 8,135,552 $ 4,225,631 Sourcing fees paid to PMT $ 1,994 $ 2,641 Unpaid principal balance of mortgage loans purchased from PMT $ 6,647,338 $ 8,847,873 Tax service fees earned from PMT included in Mortgage loan origination fees $ 2,243 $ 1,208
Summary of mortgage loan servicing fees earned from PMT	Quarter ended March 31, 2019 2018 (in thousands) Mortgage loans acquired for sale at fair value $ 239 $ 178 Mortgage loans at fair value 463 3,085 Mortgage servicing rights 9,868 7,756 $ 10,570 $ 11,019 Property management fees received from PMT included in Other income $ 123 $ 99
Summary of management fees earned	Quarter ended March 31, 2019 2018 (in thousands) Base management $ 6,109 $ 5,696 Performance incentive 1,139 — $ 7,248 $ 5,696
Summary of reimbursement of expenses	Quarter ended March 31, 2019 2018 (in thousands) Reimbursement of: Common overhead incurred by the Company included in Other revenue $ 1,236 $ 1,001 Compensation included in Other revenue 120 120 Expenses incurred on PMT's behalf, net 570 573 $ 1,926 $ 1,694 Payments and settlements during the quarter (1) $ 15,189 $ 7,658 (1) Payments and settlements include payments for management fees and correspondent production activities itemized in the preceding tables and netting settlements made pursuant to master netting agreements between the Company and PMT.
Summary of investing activity between the Company and affiliate	Quarter ended March 31, 2019 2018 (in thousands) Interest income relating to Assets purchased from PennyMac Mortgage Investment Trust under agreements to resell $ 1,796 $ 1,976 Common shares of beneficial interest of PennyMac Mortgage Investment Trust: Dividends received $ 36 $ 35 Change in fair value of investment 156 147 $ 192 $ 182 March 31, December 31, 2019 2018 (in thousands) Assets purchased from PennyMac Mortgage Investment Trust under agreements to resell $ 125,929 $ 131,025 Common shares of beneficial interest of PennyMac Mortgage Investment Trust: Fair value $ 1,553 $ 1,397 Number of shares 75 75
Summary of financing activity between the Company and affiliate	Quarter ended March 31, 2019 2018 (in thousands) Excess servicing spread financing: Issuance pursuant to recapture agreement $ 508 $ 904 Repayment $ 10,552 $ 12,291 Gain (loss) recognized $ 4,051 $ (6,921) Interest expense $ 3,066 $ 3,934 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 $ 489 $ 830 March 31, December 31, 2019 2018 (in thousands) Excess servicing spread financing at fair value $ 205,081 $ 216,110
Summary of amounts due from and payable to affiliate	March 31, December 31, 2019 2018 (in thousands) Receivable from PMT: Fulfillment fees $ 11,744 $ 10,006 Management fees 7,238 6,559 Servicing fees 4,350 4,841 Allocated expenses and expenses incurred on PMT's behalf 3,907 9,066 Correspondent production fees 1,852 2,071 Conditional Reimbursement 726 801 Interest on assets purchased under agreements to resell 134 120 $ 29,951 $ 33,464 Payable to PMT: Deposits made by PMT to fund servicing advances $ 73,149 $ 100,554 Mortgage servicing rights recapture payable 160 179 Other 3,185 3,898 $ 76,494 $ 104,631

Loan Sales and Servicing Acti_2

Loan Sales and Servicing Activities (Tables)	3 Months Ended
	Mar. 31, 2019
Loan Sales and Servicing Activities
Summary of cash flows between the Company and transferees upon sale of mortgage loans in transactions	Quarter ended March 31, 2019 2018 (in thousands) Cash flows: Sales proceeds $ 8,536,430 $ 11,103,785 Servicing fees received (1) $ 137,148 $ 113,091 Net servicing recoveries $ (24,176) $ (10,637) (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	March 31, December 31, 2019 2018 (in thousands) Unpaid principal balance of mortgage loans outstanding $ 148,795,055 $ 145,224,596 Delinquencies: 30-89 days $ 5,489,000 $ 6,222,864 90 days or more: Not in foreclosure $ 2,085,034 $ 2,208,083 In foreclosure $ 710,297 $ 720,894 Foreclosed $ 24,875 $ 24,243 Bankruptcy $ 1,053,399 $ 970,329
Summary of mortgage servicing portfolio	March 31, 2019 Contract Total Servicing servicing and mortgage rights owned subservicing loans serviced (in thousands) Investor: Non-affiliated entities: Originated $ 148,795,055 $ — $ 148,795,055 Purchased 72,039,709 — 72,039,709 220,834,764 — 220,834,764 PennyMac Mortgage Investment Trust — 101,287,428 101,287,428 Mortgage loans held for sale 2,573,121 — 2,573,121 $ 223,407,885 $ 101,287,428 $ 324,695,313 Subserviced for the Company (1) $ 16,270,233 $ — $ 16,270,233 Delinquent mortgage loans: 30 days $ 6,244,534 $ 479,185 $ 6,723,719 60 days 1,781,121 111,089 1,892,210 90 days or more: Not in foreclosure 3,100,186 223,231 3,323,417 In foreclosure 1,094,892 115,637 1,210,529 Foreclosed 35,354 157,762 193,116 $ 12,256,087 $ 1,086,904 $ 13,342,991 Bankruptcy $ 1,521,842 $ 118,609 $ 1,640,451 Custodial funds managed by the Company (2) $ 3,851,327 $ 1,384,404 $ 5,235,731 (1) Certain of the mortgage loans for which the Company has purchased the MSRs are subserviced on the Company’s behalf by other mortgage loan servicers on an interim basis when servicing of the loans has not yet been transferred to the Company’s loan servicing platform. (2) Custodial funds include cash accounts holding funds on behalf of borrowers and investors 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’ borrowers and investors, which are included in Interest income in the Company’s consolidated statements of income. December 31, 2018 Contract Total Servicing servicing and mortgage rights owned subservicing loans serviced (in thousands) Investor: Non-affiliated entities: Originated $ 145,224,596 $ — $ 145,224,596 Purchased 56,990,486 — 56,990,486 202,215,082 — 202,215,082 PennyMac Mortgage Investment Trust — 94,658,154 94,658,154 Mortgage loans held for sale 2,420,636 — 2,420,636 $ 204,635,718 $ 94,658,154 $ 299,293,872 Subserviced for the Company (1) $ 414,219 $ — $ 414,219 Delinquent mortgage loans: 30 days $ 6,677,179 $ 525,989 $ 7,203,168 60 days 1,983,381 113,238 2,096,619 90 days or more: Not in foreclosure 3,102,492 217,115 3,319,607 In foreclosure 1,027,493 127,025 1,154,518 Foreclosed 33,493 176,377 209,870 $ 12,824,038 $ 1,159,744 $ 13,983,782 Bankruptcy $ 1,415,106 $ 107,083 $ 1,522,189 Custodial funds managed by the Company (2) $ 3,033,658 $ 970,328 $ 4,003,986 (1) Certain of the mortgage loans for which the Company has purchased the MSRs are subserviced on the Company’s behalf by other mortgage loan servicers on an interim basis when servicing of the loans has not yet been transferred to the Company’s loan servicing platform. (2) Custodial funds include cash accounts holding funds on behalf of borrowers and investors 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’ borrowers and 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)	March 31, December 31, State 2019 2018 (in thousands) California $ 54,790,956 $ 51,377,441 Florida 25,043,416 22,650,926 Texas 24,957,664 23,648,042 Virginia 19,845,177 19,011,950 Maryland 14,748,291 13,774,011 All other states 185,309,809 168,831,502 $ 324,695,313 $ 299,293,872

Fair Value (Tables)

Fair Value (Tables)	3 Months Ended
	Mar. 31, 2019
Fair Value
Summary of financial statement items measured at estimated fair value on a recurring basis	March 31, 2019 Level 1 Level 2 Level 3 Total (in thousands) Assets: Short-term investments $ 149,372 $ — $ — $ 149,372 Mortgage loans held for sale at fair value — 2,213,396 455,533 2,668,929 Derivative assets: Interest rate lock commitments — — 68,248 68,248 Repurchase agreement derivatives — — 24,632 24,632 Forward purchase contracts — 61,932 — 61,932 Forward sales contracts — 1,215 — 1,215 MBS put options — 6,287 — 6,287 MBS call options — 6,251 — 6,251 Put options on interest rate futures purchase contracts 2,639 — — 2,639 Call options on interest rate futures purchase contracts 14,078 — — 14,078 Total derivative assets before netting 16,717 75,685 92,880 185,282 Netting — — — (64,129) Total derivative assets 16,717 75,685 92,880 121,153 Investment in PennyMac Mortgage Investment Trust 1,553 — — 1,553 Mortgage servicing rights at fair value — — 2,905,090 2,905,090 $ 167,642 $ 2,289,081 $ 3,453,503 $ 5,846,097 Liabilities: Excess servicing spread financing payable to PennyMac Mortgage Investment Trust at fair value $ — $ — $ 205,081 $ 205,081 Derivative liabilities: Interest rate lock commitments — — 2,183 2,183 Forward purchase contracts — 3,170 — 3,170 Forward sales contracts — 25,962 — 25,962 Total derivative liabilities before netting — 29,132 2,183 31,315 Netting — — — (13,477) Total derivative liabilities — 29,132 2,183 17,838 Mortgage servicing liabilities at fair value — — 7,844 7,844 $ — $ 29,132 $ 215,108 $ 230,763 December 31, 2018 Level 1 Level 2 Level 3 Total (in thousands) Assets: Short-term investments $ 117,824 $ — $ — $ 117,824 Mortgage loans held for sale at fair value — 2,261,639 260,008 2,521,647 Derivative assets: Interest rate lock commitments — — 50,507 50,507 Repurchase agreement derivatives — — 26,770 26,770 Forward purchase contracts — 35,916 — 35,916 Forward sales contracts — 437 — 437 MBS put options — 720 — 720 MBS call options — 2,135 — 2,135 Put options on interest rate futures purchase contracts 866 — — 866 Call options on interest rate futures purchase contracts 5,965 — — 5,965 Total derivative assets before netting 6,831 39,208 77,277 123,316 Netting — — — (26,969) Total derivative assets 6,831 39,208 77,277 96,347 Investment in PennyMac Mortgage Investment Trust 1,397 — — 1,397 Mortgage servicing rights at fair value — — 2,820,612 2,820,612 $ 126,052 $ 2,300,847 $ 3,157,897 $ 5,557,827 Liabilities: Excess servicing spread financing payable to PennyMac Mortgage Investment Trust at fair value $ — $ — $ 216,110 $ 216,110 Derivative liabilities: Interest rate lock commitments — — 1,169 1,169 Forward purchase contracts — 215 — 215 Forward sales contracts — 26,762 — 26,762 Total derivative liabilities before netting — 26,977 1,169 28,146 Netting — — — (25,082) Total derivative liabilities — 26,977 1,169 3,064 Mortgage servicing liabilities at fair value — — 8,681 8,681 $ — $ 26,977 $ 225,960 $ 227,855
Summary of roll forward of items measured using Level 3 inputs on a recurring basis	Quarter ended March 31, 2019 Mortgage Net interest Repurchase Mortgage loans held rate lock agreement servicing for sale commitments (1) derivatives rights Total (in thousands) Assets: Balance, December 31, 2018 $ 260,008 $ 49,338 $ 26,770 $ 2,820,612 $ 3,156,728 Purchases and issuances, net 784,262 56,983 9,855 227,772 1,078,872 Sales and repayments (176,302) — (11,436) — (187,738) Mortgage servicing rights resulting from mortgage loan sales — — — 115,751 115,751 Changes in fair value included in income arising from: Changes in instrument-specific credit risk (6,091) — — — (6,091) Other factors — 59,978 (557) (259,045) (199,624) (6,091) 59,978 (557) (259,045) (205,715) Transfers from Level 3 to Level 2 (405,163) — — — (405,163) Transfers to real estate acquired in settlement of loans (1,181) — — — (1,181) Transfers of interest rate lock commitments to mortgage loans held for sale — (100,234) — — (100,234) Balance, March 31, 2019 $ 455,533 $ 66,065 $ 24,632 $ 2,905,090 $ 3,451,320 Changes in fair value recognized during the quarter relating to assets still held at March 31, 2019 $ (3,540) $ 66,065 $ — $ (259,045) $ (196,520) (1) For the purpose of this table, the IRLC asset and liability positions are shown net. Quarter ended March 31, 2019 Excess servicing Mortgage spread servicing financing liabilities Total (in thousands) Liabilities: Balance, December 31, 2018 $ 216,110 $ 8,681 $ 224,791 Issuance of excess servicing spread financing pursuant to a recapture agreement with PennyMac Mortgage Investment Trust 508 — 508 Accrual of interest 3,066 — 3,066 Repayments (10,552) — (10,552) Mortgage servicing liabilities resulting from mortgage loan sales — 794 794 Changes in fair value included in income (4,051) (1,631) (5,682) Balance, March 31, 2019 $ 205,081 $ 7,844 $ 212,925 Changes in fair value recognized during the quarter relating to liabilities still outstanding at March 31, 2019 $ (4,051) $ (1,631) $ (5,682) Quarter ended March 31, 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 adoption of the fair value method of accounting — — — 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 647,269 65,598 10,751 27,606 751,224 Sales and repayments (604,094) — (7) — (604,101) Mortgage servicing rights resulting from mortgage loan sales — — — 143,910 143,910 Changes in fair value included in income arising from: Changes in instrument-specific credit risk (8,755) — — — (8,755) Other factors — (44,913) (426) 62,537 17,198 (8,755) (44,913) (426) 62,537 8,443 Transfers from Level 3 to Level 2 (356,232) — — — (356,232) Transfers of interest rate lock commitments to mortgage loans held for sale — (28,061) — — (28,061) Balance, March 31, 2018 $ 460,399 $ 50,896 $ 20,974 $ 2,354,489 $ 2,886,758 Changes in fair value recognized during the quarter relating to assets still held at March 31, 2018 $ (7,598) $ 50,896 $ (77) $ 62,537 $ 105,758 (1) For the purpose of this table, the IRLC asset and liability positions are shown net. Quarter ended March 31, 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 904 — 904 Accrual of interest 3,934 — 3,934 Repayments (12,291) — (12,291) Mortgage servicing liabilities resulting from mortgage loan sales — 2,037 2,037 Changes in fair value included in income 6,921 (4,094) 2,827 Balance, March 31, 2018 $ 236,002 $ 12,063 $ 248,065 Changes in fair value recognized during the quarter relating to liabilities still outstanding at March 31, 2018 $ 6,921 $ (4,094) $ 2,827
Summary of net gains (losses) from changes in fair values included in earnings for financial statement items carried at fair value	Quarter ended March 31, 2019 2018 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 $ — $ 101,995 $ 101,995 $ — $ (6,118) $ (6,118) Mortgage servicing rights (259,045) — (259,045) 62,537 — 62,537 $ (259,045) $ 101,995 $ (157,050) $ 62,537 $ (6,118) $ 56,419 Liabilities: Excess servicing spread financing at fair value payable to PennyMac Mortgage Investment Trust $ 4,051 $ — $ 4,051 $ (6,921) $ — $ (6,921) Mortgage servicing liabilities 1,631 — 1,631 4,094 — 4,094 $ 5,682 $ — $ 5,682 $ (2,827) $ — $ (2,827)
Schedule of fair value and related principal amounts due upon maturity of assets and liabilities accounted for under the fair value option	March 31, 2019 December 31, 2018 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 $ 2,357,344 $ 2,252,816 $ 104,528 $ 2,324,203 $ 2,220,371 $ 103,832 90 days or more delinquent: Not in foreclosure 235,957 240,728 (4,771) 143,631 144,011 (380) In foreclosure 75,628 79,577 (3,949) 53,813 56,254 (2,441) $ 2,668,929 $ 2,573,121 $ 95,808 $ 2,521,647 $ 2,420,636 $ 101,011
Summary of financial statement items measured at estimated fair value on a nonrecurring basis	Real estate acquired in settlement of loans Level 1 Level 2 Level 3 Total (in thousands) March 31, 2019 $ — $ — $ 719 $ 719 December 31, 2018 $ — $ — $ 2,150 $ 2,150
Summary of total gains (losses) on assets measured at estimated fair values on a nonrecurring basis	Quarter ended March 31, 2019 2018 (in thousands) Real estate acquired in settlement of loans $ 21 $ 27
Quantitative summary of key inputs or assumptions used in the valuation of financial statement items, excluding MSR purchases	Quarter ended March 31, 2019 2018 (Amount recognized and unpaid principal balance of underlying mortgage loans in thousands) MSR and pool characteristics: Amount recognized $ 115,751 $ 143,910 Unpaid principal balance of underlying mortgage loans $ 8,145,850 $ 10,162,316 Weighted average servicing fee rate (in basis points) 39 35 Key inputs (1): Pricing spread (2) Range 5.8% – 15.6% 7.4% – 14.1% Weighted average 8.9% 10.3% Annual total prepayment speed (3) Range 5.8% – 73.0% 3.9% – 49.0% Weighted average 15.3% 8.9% Life (in years) Range 0.8 – 10.2 1.1 – 11.6 Weighted average 5.8 8.2 Per-loan annual cost of servicing Range $78 – $100 $78 – $98 Weighted average $95 $89 (1) Weighted average inputs are based on the 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”)/swap 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	Following is a quantitative summary of key inputs used in the valuation and assessment for the Company’s MSRs and the effect on the fair value from adverse changes in those inputs: March 31, 2019 December 31, 2018 (Carrying value, unpaid principal balance of underlying mortgage loans and effect on fair value amounts in thousands) MSR and pool characteristics: Carrying value $2,905,090 $2,820,612 Unpaid principal balance of underlying mortgage loans $219,834,361 $201,054,144 Weighted average note interest rate 4.0% 4.0% Weighted average servicing fee rate (in basis points) 33 33 Key inputs (1): Pricing spread (2): Range 6.0% – 15.8% 5.8% – 16.1% Weighted average 8.7% 8.7% Effect on fair value of: 5% adverse change ($45,330) ($45,268) 10% adverse change ($89,217) ($89,073) 20% adverse change ($172,915) ($172,556) Prepayment speed (3): Range 9.0% – 33.5% 8.4% – 32.6% Weighted average 11.4% 9.9% Average life (in years): Range 1.5 – 7.6 1.5 – 7.9 Weighted average 6.6 7.2 Effect on fair value of: 5% adverse change ($54,920) ($47,687) 10% adverse change ($107,628) ($93,626) 20% adverse change ($206,907) ($180,623) Annual per-loan cost of servicing: Range $78 – $100 $78 – $99 Weighted average $97 $93 Effect on fair value of: 5% adverse change ($24,494) ($22,944) 10% adverse change ($49,004) ($45,888) 20% adverse change ($98,024) ($91,775) (1) Weighted average inputs are based on the UPB of the underlying mortgage loans. (2) The Company applies a pricing spread to the United States Dollar LIBOR/swap curve for purposes of discounting cash flows relating to MSRs. (3) 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	March 31, December 31, 2019 2018 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: Pricing spread (1) Prepayment speed (2) Average life (in years) Annual per-loan cost of servicing $ $ (1) The Company applies a pricing spread to the United States Dollar LIBOR/swap 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	March 31, December 31, 2019 2018 Carrying value (in thousands) $205,081 $216,110 ESS and pool characteristics: Unpaid principal balance of underlying mortgage loans (in thousands) $22,664,211 $23,196,033 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 3.0% – 3.3% 2.8% – 3.2% Weighted average 3.2% 3.1% Annualized prepayment speed (3): Range 8.5% – 29.9% 8.2% – 29.5% Weighted average 10.4% 9.7% Average life (in years): Range 1.5 – 7.4 1.6 – 7.6 Weighted average 6.5 6.8 (1) Weighted average inputs are based on the UPB of the underlying mortgage loans. (2) The Company applies a pricing spread to the United States Dollar LIBOR/swap 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) March 31, 2019 December 31, 2018 Pull-through rate: Range 12.2% – 100% 16.6% – 100% Weighted average 82.8% 84.1% Mortgage servicing rights value expressed as: Servicing fee multiple: Range 1.1 – 5.7 1.5 – 5.5 Weighted average 3.8 3.8 Percentage of unpaid principal balance: Range 0.3% – 2.7% 0.4% – 3.2% Weighted average 1.5% 1.5% (1) Weighted average inputs are based on the committed amounts.
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) March 31, 2019 December 31, 2018 Discount rate: Range 3.1% – 9.2% 2.8% – 9.2% Weighted average 3.1% 2.9% Twelve-month projected housing price index change: Range 3.0% – 4.8% 2.2% – 5.0% Weighted average 3.3% 3.5% Voluntary prepayment / resale speed (2): Range 0.1% – 24.3% 0.1% – 21.8% Weighted average 22.0% 20.1% Total prepayment speed (3): Range 0.1% – 42.0% 0.1% – 40.5% Weighted average 39.2% 37.7% (1) Weighted average inputs are based on the 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)	3 Months Ended
	Mar. 31, 2019
Mortgage Loans Held for Sale at Fair Value
Summary of mortgage loans held for sale at fair value	March 31, December 31, 2019 2018 (in thousands) Government-insured or guaranteed $ 2,083,470 $ 2,116,126 Conventional conforming 129,926 145,513 Home equity lines of credit 86 — Purchased from Ginnie Mae pools serviced by the Company 446,290 250,585 Repurchased pursuant to representations and warranties 9,157 9,423 $ 2,668,929 $ 2,521,647 Fair value of mortgage loans pledged to secure: Assets sold under agreements to repurchase $ 2,065,151 $ 1,923,857 Mortgage loan participation purchase and sale agreements 574,518 555,001 $ 2,639,669 $ 2,478,858

Derivative Activities (Tables)

Derivative Activities (Tables)	3 Months Ended
	Mar. 31, 2019
Derivative Activities
Summary of derivative financial instruments	March 31, 2019 December 31, 2018 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 3,821,942 $ 68,248 $ 2,183 2,805,400 $ 50,507 $ 1,169 Repurchase agreement derivatives 24,632 — 26,770 — Used for hedging purposes: Forward purchase contracts 9,313,389 61,932 3,170 6,657,026 35,916 215 Forward sales contracts 7,583,005 1,215 25,962 6,890,046 437 26,762 MBS put options 9,425,000 6,287 — 4,635,000 720 — MBS call options 3,350,000 6,251 — 1,450,000 2,135 — Put options on interest rate futures purchase contracts 3,350,000 2,639 — 3,085,000 866 — Call options on interest rate futures purchase contracts 2,250,000 14,078 — 1,512,500 5,965 — Treasury futures purchase contracts 1,810,000 — — 835,000 — — Treasury futures sale contracts 1,075,000 — — 1,450,000 — — Interest rate swap futures purchase contracts 1,025,000 — — 625,000 — — Total derivatives before netting 185,282 31,315 123,316 28,146 Netting (64,129) (13,477) (26,969) (25,082) $ 121,153 $ 17,838 $ 96,347 $ 3,064 Deposits placed with derivative counterparties $ 50,652 $ 1,887
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 March 31, 2019 Notional Notional amount amount beginning of Dispositions/ end of Instrument quarter Additions expirations quarter (in thousands) Forward purchase contracts 6,657,026 52,621,845 (49,965,482) 9,313,389 Forward sale contracts 6,890,046 59,673,487 (58,980,528) 7,583,005 MBS put options 4,635,000 19,160,000 (14,370,000) 9,425,000 MBS call options 1,450,000 4,500,000 (2,600,000) 3,350,000 Put options on interest rate futures purchase contracts 3,085,000 6,675,000 (6,410,000) 3,350,000 Call options on interest rate futures purchase contracts 1,512,500 4,462,800 (3,725,300) 2,250,000 Put options on interest rate futures sale contracts — 10,135,300 (10,135,300) — Treasury futures purchase contracts 835,000 4,111,200 (3,136,200) 1,810,000 Treasury futures sale contracts 1,450,000 2,761,200 (3,136,200) 1,075,000 Interest rate swap futures purchase contracts 625,000 400,000 — 1,025,000 Quarter ended March 31, 2018 Notional Notional amount amount beginning of Dispositions/ end of Instrument quarter Additions expirations quarter (in thousands) Forward purchase contracts 4,920,883 45,330,785 (43,707,885) 6,543,783 Forward sale contracts 5,204,796 56,355,552 (54,636,002) 6,924,346 MBS put options 4,925,000 4,500,000 (5,675,000) 3,750,000 MBS call options — 5,675,000 (5,675,000) — Put options on interest rate futures purchase contracts 2,125,000 5,525,000 (4,850,000) 2,800,000 Call options on interest rate futures purchase contracts 100,000 375,000 (250,000) 225,000 Put options on interest rate futures sale contracts — 4,850,000 (4,850,000) — Call options on interest rate futures sale contracts — 250,000 (250,000) — Treasury futures purchase contracts 100,000 1,904,900 (1,494,900) 510,000 Treasury futures sale contracts — 3,406,200 (2,156,200) 1,250,000 Interest rate swap futures purchase contracts 1,400,000 465,000 (1,400,000) 465,000 Interest rate swap futures sale contracts — 1,400,000 (1,400,000) —
Summaries of derivative assets and related netting amounts	March 31, 2019 December 31, 2018 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 $ 68,248 $ — $ 68,248 $ 50,507 $ — $ 50,507 Repurchase agreement derivatives 24,632 — 24,632 26,770 — 26,770 92,880 — 92,880 77,277 — 77,277 Derivatives subject to master netting arrangements: Forward purchase contracts 61,932 — 61,932 35,916 — 35,916 Forward sale contracts 1,215 — 1,215 437 — 437 MBS put options 6,287 — 6,287 720 — 720 MBS call options 6,251 — 6,251 2,135 — 2,135 Put options on interest rate futures purchase contracts 2,639 — 2,639 866 — 866 Call options on interest rate futures purchase contracts 14,078 — 14,078 5,965 — 5,965 Netting (64,129) (64,129) — (26,969) (26,969) 92,402 (64,129) 28,273 46,039 (26,969) 19,070 $ 185,282 $ (64,129) $ 121,153 $ 123,316 $ (26,969) $ 96,347
Summary of the amount of derivative asset positions by significant counterparty after considering master netting arrangements and financial instruments or cash pledged	March 31, 2019 December 31, 2018 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 $ 68,248 $ — $ — $ 68,248 $ 50,507 $ — $ — $ 50,507 Deutsche Bank 24,632 — — 24,632 26,770 — — 26,770 RJ O'Brien 16,717 — — 16,717 6,831 — — 6,831 Bank of America, N.A. 4,052 — — 4,052 2,781 — — 2,781 JPMorgan Chase Bank, N.A. 3,494 — — 3,494 1,399 — — 1,399 Wells Fargo Bank, N.A. 2,275 — — 2,275 3,707 — — 3,707 Goldman Sachs 1,286 — — 1,286 — — — — Citibank, N.A. — — — — 2,488 — — 2,488 Others 449 — — 449 1,864 — — 1,864 $ 121,153 $ — $ — $ 121,153 $ 96,347 $ — $ — $ 96,347
Summary of net derivative liabilities and assets sold under agreements to repurchase and related netting amounts	March 31, 2019 December 31, 2018 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 $ 2,183 $ — $ 2,183 $ 1,169 $ — $ 1,169 Derivatives subject to a master netting arrangement: Forward purchase contracts 3,170 — 3,170 215 — 215 Forward sale contracts 25,962 — 25,962 26,762 — 26,762 Netting — (13,477) (13,477) — (25,082) (25,082) 29,132 (13,477) 15,655 26,977 (25,082) 1,895 Total derivatives 31,315 (13,477) 17,838 28,146 (25,082) 3,064 Assets sold under agreements to repurchase: Amount outstanding 2,152,588 — 2,152,588 1,935,200 — 1,935,200 Unamortized debt issuance premiums and costs, net (650) — (650) (1,341) — (1,341) 2,151,938 — 2,151,938 1,933,859 — 1,933,859 $ 2,183,253 $ (13,477) $ 2,169,776 $ 1,962,005 $ (25,082) $ 1,936,923
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	March 31, 2019 December 31, 2018 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 $ 2,183 $ — $ — $ 2,183 $ 1,169 $ — $ — $ 1,169 Credit Suisse First Boston Mortgage Capital LLC 848,914 (845,622) — 3,292 691,030 (690,766) — 264 Deutsche Bank 692,010 (692,010) — — 741,978 (741,978) — — BNP Paribas 199,395 (199,395) — — 149,675 (149,482) — 193 Bank of America, N.A. 170,859 (170,859) — — 170,820 (170,820) — — Citibank, N.A. 83,533 (82,659) — 874 14,960 (14,960) — — Morgan Stanley Bank, N.A. 80,998 (71,069) — 9,929 77,687 (77,687) — — JPMorgan Chase Bank, N.A. 50,875 (50,875) — — 54,326 (54,326) — — Royal Bank of Canada 40,099 (40,099) — — 35,181 (35,181) — — Federal National Mortgage Association 764 — — 764 — — — — Others 796 — — 796 1,438 — — 1,438 $ 2,170,426 $ (2,152,588) $ — $ 17,838 $ 1,938,264 $ (1,935,200) $ — $ 3,064
Summary of gains (losses) recognized on derivative financial instruments and the respective income statement line items	Quarter ended March 31, Derivative activity Income statement line 2019 2018 (in thousands) Interest rate lock commitments Net gains on mortgage loans held for sale at fair value $ 16,727 $ (7,376) Repurchase agreement derivatives Interest expense $ (557) $ (426) Hedged item: Interest rate lock commitments and mortgage loans held for sale Net gains on mortgage loans held for sale at fair value $ (34,668) $ 87,747 Mortgage servicing rights Net mortgage loan servicing fees –C hange in fair value of mortgage servicing rights and mortgage servicing liabilities $ 134,557 $ (103,593)

Mortgage Servicing Rights and_2

Mortgage Servicing Rights and Mortgage Servicing Liabilities (Tables)	3 Months Ended
	Mar. 31, 2019
Mortgage Servicing Rights and Mortgage Servicing Liabilities
Schedule of activity in MSRs carried at fair value	Quarter ended March 31, 2019 2018 (in thousands) Balance at beginning of quarter $ 2,820,612 $ 638,010 Reclassification of mortgage servicing rights previously accounted for under the amortization method pursuant to adoption of the fair value method of accounting — 1,482,426 Balance after reclassification 2,820,612 2,120,436 Additions: Purchases 227,772 27,606 Resulting from mortgage loan sales 115,751 143,910 343,523 171,516 Change in fair value due to: Changes in inputs used in valuation model (1) (161,638) 130,449 Other changes in fair value (2) (97,407) (67,912) Total change in fair value (259,045) 62,537 Balance at end of quarter $ 2,905,090 $ 2,354,489 March 31, December 31, 2019 2018 (in thousands) Fair value of mortgage servicing rights pledged to secure Assets sold under agreements to repurchase and Notes payable $ 2,675,704 $ 2,807,333 (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 mortgage servicing liability carried at fair value	Quarter ended March 31, 2019 2018 (in thousands) Balance at beginning of quarter $ 8,681 $ 14,120 Mortgage servicing liabilities resulting from mortgage loan sales 794 2,037 Changes in fair value due to: Changes in valuation inputs used in valuation model (1) 3,301 2,643 Other changes in fair value (2) (4,932) (6,737) Total change in fair value (1,631) (4,094) Balance at end of quarter $ 7,844 $ 12,063 (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 March 31, 2019 2018 (in thousands) Contractual servicing fees $ 166,790 $ 135,483 Ancillary and other fees: Late charges 9,812 7,459 Other 1,661 1,562 $ 178,263 $ 144,504

Leases (Tables)

Leases (Tables)	3 Months Ended
	Mar. 31, 2019
Leases
Summary of Company's leases	Quarter ended March 31, 2019 (dollars in thousands) Lease expense: Operating leases $ 3,229 Short-term leases 217 Sublease income (32) Net lease expense included in Occupancy and equipment $ 3,414 Other information: Cash payments for operating leases $ 3,846 Operating lease right-of-use assets recognized upon the adoption of ASU 2016-02 $ 58,598 Weighted averages: Remaining lease term (in years) 6.3 Discount rate 4.6%
Schedule of maturities of operating lease liabilities	Twelve months ended March 31, Operating leases (in thousands) 2020 $ 15,683 2021 14,993 2022 13,397 2023 11,941 2024 10,343 Thereafter 21,999 Total lease payments 88,356 Less imputed interest (11,983) Total $ 76,373

Borrowings (Tables)

Borrowings (Tables)	3 Months Ended
	Mar. 31, 2019
Borrowings
Summary of financial data pertaining to assets sold under agreements to repurchase	Quarter ended March 31, 2019 2018 (dollars in thousands) Average balance of assets sold under agreements to repurchase $ 1,437,957 $ 1,643,443 Weighted average interest rate (1) 4.47 % 3.59 % Total interest expense (2) $ 8,635 $ 6,732 Maximum daily amount outstanding $ 2,152,588 $ 2,380,121 March 31, December 31, 2019 2018 (dollars in thousands) Carrying value: Unpaid principal balance $ 2,152,588 $ 1,935,200 Unamortized debt issuance premiums and costs, net (650) (1,341) $ 2,151,938 $ 1,933,859 Weighted average interest rate 4.35 % 4.22 % Available borrowing capacity (3): Committed $ 625,413 $ 695,767 Uncommitted 2,206,999 2,354,033 $ 2,832,412 $ 3,049,800 Fair value of assets securing repurchase agreements: Mortgage loans held for sale $ 2,065,151 $ 1,923,857 Assets purchased from PennyMac Mortgage Investment Trust under agreements to resell $ 125,929 $ 131,025 Servicing advances (4) $ 147,435 $ 162,895 Mortgage servicing rights (4) $ 2,574,228 $ 2,807,333 Margin deposits placed with counterparties (5) $ 3,750 $ 3,750 (1) Excludes the effect of amortization of net premiums totaling $7.4 million and $8.0 million for the quarters ended March 31, 2019 and 2018, 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. During the quarters ended March 31, 2019 and 2018, the Company included $9.3 million and $10.2 million, respectively, of such incentives as reductions in Interest expense . The master repurchase agreement expires on August 21, 2019, unless terminated earlier at the option of the lender. The Company expects that it will cease to accrue the incentives under the repurchase agreement in the second quarter of 2019. (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 described in Notes Payable . The VFN financing 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 March 31, 2019 Balance (dollars in thousands) Within 30 days $ 518,972 Over 30 to 90 days 1,334,389 Over 90 to 180 days 44,227 Over one to two years 255,000 Total assets sold under agreements to repurchase $ 2,152,588 Weighted average maturity (in months) 2.5
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 $ 1,165,339 April 26, 2020 April 26, 2020 Credit Suisse First Boston Mortgage Capital LLC $ 26,541 April 16, 2019 April 26, 2019 Deutsche Bank AG $ 90,911 June 16, 2019 August 21, 2019 BNP Paribas $ 16,691 June 19, 2019 August 2, 2019 Bank of America, N.A. $ 14,405 May 4, 2019 October 28, 2019 Morgan Stanley Bank, N.A. $ 5,237 June 15, 2019 August 23, 2019 Citibank, N.A. $ 4,828 June 7, 2019 June 7, 2019 JP Morgan Chase Bank, N.A. $ 4,360 May 31, 2019 October 11, 2019 Royal Bank of Canada $ 2,631 June 28, 2019 June 28, 2019
Summary of mortgage loan participations	Quarter ended March 31, 2019 2018 (dollars in thousands) Average balance $ 236,667 $ 215,614 Weighted average interest rate (1) 3.68 % 2.89 % Total interest expense $ 2,311 $ 1,727 Maximum daily amount outstanding $ 548,038 $ 527,706 (1) Excludes the effect of amortization of facility fees totaling $135,000 and $171,000 for the quarters ended March 31, 2019 and 2018, respectively. March 31, December 31, 2019 2018 (dollars in thousands) Carrying value: Unpaid principal balance $ 548,038 $ 532,466 Unamortized debt issuance costs (159) (215) $ 547,879 $ 532,251 Weighted average interest rate 3.75 % 3.77 % Fair value of mortgage loans pledged to secure mortgage loan participation purchase and sale agreements $ 574,518 $ 555,001
Summary of note payable	Quarter ended March 31, 2019 2018 (dollars in thousands) Average balance $ 1,300,000 $ 979,868 Weighted average interest rate (1) 5.25 % 5.63 % Total interest expense $ 17,995 $ 18,222 Maximum daily amount outstanding $ 1,300,000 $ 1,150,000 (1) Excluding the effect of amortization of debt issuance costs totaling $0.7 million and $4.2 million for the quarters ended March 31, 2019 and 2018, respectively. Also excludes the effect of non-utilization fees of $196,000 and $192,000 for the quarters ended March 31, 2019 and 2018, respectively. March 31, December 31, 2019 2018 (dollars in thousands) Carrying value: Unpaid principal balance $ 1,300,000 $ 1,300,000 Unamortized debt issuance costs (7,264) (7,709) $ 1,292,736 $ 1,292,291 Weighted average interest rate 5.24 % 5.07 % Unused amount $ 150,000 $ 150,000 Assets pledged to secure notes payable: Cash $ 93,372 $ 108,174 Servicing advances (1) $ 147,435 $ 162,895 Mortgage servicing rights (1) $ 2,675,704 $ 2,807,333 (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. The VFN financing 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 March 31, 2019 2018 (dollars in thousands) Average balance $ 5,848 $ 18,703 Weighted average interest rate 4.50 % 3.64 % Total interest expense $ 66 $ 170 Maximum daily amount outstanding $ 6,605 $ 20,971 March 31, December 31, 2019 2018 (dollars in thousands) Unpaid principal balance $ 5,091 $ 6,605 Weighted average interest rate 4.48 % 4.46 % Assets pledged to secure obligations under capital lease: Furniture, fixtures and equipment $ 15,254 $ 16,281 Capitalized software $ 940 $ 1,017
Summary of roll forward of Excess Servicing Spread Financing	Quarter ended March 31, 2019 2018 (in thousands) Balance at beginning of quarter $ 216,110 $ 236,534 Issuances of excess servicing spread to PennyMac Mortgage Investment Trust pursuant to recapture agreement 508 904 Accrual of interest 3,066 3,934 Repayment (10,552) (12,291) Change in fair value (4,051) 6,921 Balance at end of quarter $ 205,081 $ 236,002

Liability for Losses Under Re_2

Liability for Losses Under Representations and Warranties (Tables)	3 Months Ended
	Mar. 31, 2019
Liability for Losses Under Representations and Warranties
Summary of repurchase activity	Quarter ended March 31, 2019 2018 (in thousands) Balance at beginning of quarter $ 21,155 $ 20,053 Provision for losses on mortgage loans sold: Resulting from sales of mortgage loans 1,067 1,492 Reduction in liability due to change in estimate (4,210) (1,113) Incurred losses, net (30) (3) Balance at end of quarter $ 17,982 $ 20,429 Unpaid principal balance of mortgage loans subject to representations and warranties at end of quarter $ 133,698,782 $ 127,056,220

Noncontrolling Interest (Tables

Noncontrolling Interest (Tables)	3 Months Ended
	Mar. 31, 2019
Noncontrolling Interest.
Noncontrolling Interest	Quarter ended March 31, 2018 (in thousands) Net income attributable to PennyMac Financial Services, Inc. common stockholders $ 16,619 Increase in the Company's paid-in capital accounts for exchanges of Class A units of Private National Mortgage Acceptance Company, LLC to Class A common stock of PennyMac Financial Services, Inc. $ 14,859 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 748

Net Gains on Mortgage Loans H_2

Net Gains on Mortgage Loans Held for Sale (Tables)	3 Months Ended
	Mar. 31, 2019
Net Gains on Mortgage Loans Held for Sale
Net Gains on Mortgage Loans Held for Sale	Quarter ended March 31, 2019 2018 (in thousands) From non-affiliates: Cash loss: Mortgage loans $ (41,242) $ (181,801) Hedging activities (8,927) 104,396 (50,169) (77,405) Non-cash gain: Mortgage servicing rights and mortgage servicing liabilities 114,957 141,873 Provision for losses relating to representations and warranties: Pursuant to mortgage loan sales (1,067) (1,492) Reduction in liability due to change in estimate 4,210 1,113 Change in fair value relating to mortgage loans and derivatives held at quarter end: Interest rate lock commitments 16,727 (7,376) Mortgage loans (164) 18,964 Hedging derivatives (25,741) (16,649) 58,753 59,028 From PennyMac Mortgage Investment Trust 26,023 12,386 $ 84,776 $ 71,414

Net Interest Income (Tables)

Net Interest Income (Tables)	3 Months Ended
	Mar. 31, 2019
Net Interest Income
Summary of net interest income	Quarter ended March 31, 2019 2018 (in thousands) Interest income: From non-affiliates: Cash and short-term investments $ 1,933 $ 608 Mortgage loans held for sale at fair value 31,343 26,607 Placement fees relating to custodial funds 23,261 13,424 56,537 40,639 From PennyMac Mortgage Investment Trust—Assets purchased from PennyMac Mortgage Investment Trust under agreements to resell 1,796 1,976 58,333 42,615 Interest expense: To non-affiliates: Assets sold under agreements to repurchase (1) 8,635 6,732 Mortgage loan participation purchase and sale agreements 2,311 1,727 Notes payable 17,995 18,222 Obligations under capital lease 66 170 Interest shortfall on repayments of mortgage loans serviced for Agency securitizations 4,311 4,830 Interest on mortgage loan impound deposits 1,159 1,130 34,477 32,811 To PennyMac Mortgage Investment Trust—Excess servicing spread financing at fair value 3,066 3,934 37,543 36,745 $ 20,790 $ 5,870 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. During the quarters ended March 31, 2019 and 2018, the Company included $9.3 million and $10.2 million, respectively, of such incentives as reductions in Interest expense . The master repurchase agreement expires on August 21, 2019, unless terminated earlier at the option of the lender. The Company expects that it will cease to accrue the financing incentives under the repurchase agreement in the second quarter of 2019.

Stock-based Compensation (Table

Stock-based Compensation (Tables)	3 Months Ended
	Mar. 31, 2019
Stock-based Compensation
Summary of the stock-based compensation activity	Quarter ended March 31, 2019 2018 (in thousands) Grants: Units: Performance-based RSUs 665 524 Stock options 344 674 Time-based RSUs 330 316 Grant date fair value: Performance-based RSUs $ 15,253 $ 12,791 Stock options 2,965 6,147 Time-based RSUs 7,545 7,703 Total $ 25,763 $ 26,641 Vestings and exercises: Performance-based RSUs vested 648 — Stock options exercised 89 196 Time-based RSUs vested 291 234 Compensation expense $ 4,531 $ 6,171

Earnings Per Share of Common _2

Earnings Per Share of Common Stock (Tables)	3 Months Ended
	Mar. 31, 2019
Earnings Per Share of Common Stock
Summary of basic and diluted earnings per share calculations	Quarter ended March 31, 2019 2018 (in thousands, except per share amounts) Basic earnings per share of common stock: Net income attributable to common stockholders $ 46,135 $ 16,619 Weighted average shares of common stock outstanding 77,653 23,832 Basic earnings per share of common stock $ 0.59 $ 0.70 Diluted earnings per share of common stock: Net income attributable to common stockholders $ 46,135 $ 16,619 Net income attributable to dilutive stock-based compensation units — 1,400 Net income attributable to PennyMac Class A units exchangeable to Class A common stock, net of income taxes — 35,449 Net income attributable to common stockholders for diluted earnings per share $ 46,135 $ 53,468 Weighted average shares of common stock outstanding applicable to basic earnings per share 77,653 23,832 Effect of dilutive shares: Common shares issuable under stock-based compensation plan 1,633 2,947 PennyMac Class A units exchangeable to Class A common stock — 52,682 Weighted average shares of common stock applicable to diluted earnings per share 79,286 79,461 Diluted earnings per share of common stock $ 0.58 $ 0.67
Schedule of anti-dilutive shares outstanding	Quarter ended March 31, 2019 2018 (in thousands except for weighted-average exercise price) Performance-based RSUs (1) 1,279 134 Time-based RSUs 61 — Stock options (2) 706 172 Total anti-dilutive stock-based compensation 2,046 306 Weighted average exercise price of anti-dilutive stock options (2) $ 24.26 $ 24.40 (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 prices for the quarter.

Supplemental Cash Flow Inform_2

Supplemental Cash Flow Information (Tables)	3 Months Ended
	Mar. 31, 2019
Supplemental Cash Flow Information
Schedule of supplemental cash flow information	Quarter ended March 31, 2019 2018 (in thousands) Cash paid for interest $ 33,952 $ 40,227 Cash paid for income taxes, net $ 66 $ 2 Non-cash investing activity: Mortgage servicing rights resulting from mortgage loan sales $ 115,751 $ 143,910 Mortgage servicing liabilities resulting from mortgage loan sales $ 794 $ 2,037 Unsettled portion of MSR acquisitions $ 16,291 $ 62 Operating right-of-use assets recognized upon the adoption of ASU 2016-02 $ 58,598 $ — Non-cash financing activity: Issuance of Excess servicing spread payable to PennyMac Mortgage Investment Trust pursuant to a recapture agreement $ 508 $ 904 Issuance of common stock and Class A common stock in settlement of director fees $ 86 $ 79

Regulatory Capital and Liquid_2

Regulatory Capital and Liquidity Requirements (Tables)	3 Months Ended
	Mar. 31, 2019
Regulatory Capital and Liquidity Requirements
Summary of agencies' capital and liquidity requirements by each agency	March 31, 2019 December 31, 2018 Agency–company subject to requirement Actual (1) Requirement (1) Actual (1) Requirement (1) (dollars in thousands) Capital Fannie Mae & Freddie Mac – PLS $ 1,833,819 $ 561,020 $ 1,788,430 $ 514,089 Ginnie Mae – PLS $ 1,543,756 $ 819,028 $ 1,535,826 $ 733,342 Ginnie Mae – PennyMac $ 1,802,129 $ 900,931 $ 1,786,430 $ 806,676 HUD – PLS $ 1,543,756 $ 2,500 $ 1,535,826 $ 2,500 Liquidity Fannie Mae & Freddie Mac – PLS $ 287,089 $ 77,292 $ 271,802 $ 70,775 Ginnie Mae – PLS $ 287,089 $ 208,693 $ 271,802 $ 189,592 Tangible net worth / Total assets ratio Fannie Mae & Freddie Mac – PLS 20 % 6 % % % (1) Calculated in compliance with the respective Agency’s requirements.

Segments (Tables)

Segments (Tables)	3 Months Ended
	Mar. 31, 2019
Segments
Schedule of change in expense allocation, by segment	Quarter ended March 31, 2019 Mortgage Banking Investment Production Servicing Total Management Total (in thousands) Revenue: (1) Net mortgage loan servicing fees $ — $ 80,571 $ 80,571 $ — $ 80,571 Net gains on mortgage loans held for sale at fair value 66,721 18,055 84,776 — 84,776 Mortgage loan origination fees 23,930 — 23,930 — 23,930 Fulfillment fees from PennyMac Mortgage Investment Trust 27,574 — 27,574 — 27,574 Net interest income (expense): Interest income 14,369 43,964 58,333 — 58,333 Interest expense 3,915 33,621 37,536 7 37,543 10,454 10,343 20,797 (7) 20,790 Management fees — — — 7,248 7,248 Other 488 765 1,253 1,563 2,816 Total net revenue 129,167 109,734 238,901 8,804 247,705 Expenses 82,161 98,571 180,732 6,682 187,414 Income before provision for income taxes $ 47,006 $ 11,163 $ 58,169 $ 2,122 $ 60,291 Segment assets at quarter end $ 2,501,468 $ 5,299,813 $ 7,801,281 $ 17,719 $ 7,819,000 (1) All revenues are from external customers. Quarter ended March 31, 2018 Mortgage Banking Investment Production Servicing Total Management Total (in thousands) Revenue: (1) Net mortgage loan servicing fees $ — $ 116,789 $ 116,789 $ — $ 116,789 Net gains on mortgage loans held for sale at fair value 36,198 35,216 71,414 — 71,414 Mortgage loan origination fees 24,563 — 24,563 — 24,563 Fulfillment fees from PennyMac Mortgage Investment Trust 11,944 — 11,944 — 11,944 Net interest income (expense): Interest income 14,248 28,367 42,615 — 42,615 Interest expense 2,102 34,627 36,729 16 36,745 12,146 (6,260) 5,886 (16) 5,870 Management fees — — — 5,775 5,775 Carried Interest from Investment Funds — — — (180) (180) Other 316 395 711 1,315 2,026 Total net revenue 85,167 146,140 231,307 6,894 238,201 Expenses 67,997 91,265 159,262 5,943 165,205 Income before provision for income taxes $ 17,170 $ 54,875 $ 72,045 $ 951 $ 72,996 Segment assets at quarter end (2) $ 2,251,354 $ 4,630,946 $ 6,882,300 $ 11,877 $ 6,894,177 (1) All revenues are from external customers. Excludes parent Company assets, which consist of $8.7 million of cash.

Organization (Details)

Organization (Details) - item	Nov. 01, 2018	Oct. 31, 2018
Organization
Number of classes of common stock	1	2

Basis of Presentation and Rec_2

Basis of Presentation and Recently Issued Accounting Pronouncements (Details) - USD ($) $ in Thousands	Jan. 01, 2019	Mar. 31, 2019	Dec. 31, 2018
Recently Issued Accounting Pronouncements
Lease liability		$ 76,373
Right-of-use assets obtained in exchange for lease obligations		58,598
Deferred rent		$ 162,677	$ 156,212
Accounting Standards Update 2016-02: Leases | Restatement
Recently Issued Accounting Pronouncements
Lease liability	$ 79,300
Right-of-use assets obtained in exchange for lease obligations	58,600
Deferred rent	$ (20,700)

Concentration of Risk (Details)

Concentration of Risk (Details)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Sales Revenue | Customer Concentration Risk
Concentration of Risk
Percentage of total net revenue	31.00%	15.00%

Transactions with Affiliates -

Transactions with Affiliates - Correspondent Production (Details) - USD ($) $ in Thousands	Sep. 12, 2016	Mar. 31, 2019	Mar. 31, 2018
MBS Agreement
Transactions with Affiliates
The administrative fee plus accrued interest and sourcing fee percent	0.35%
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
Sale of mortgage loans held for sale to PMT		$ 884,510	$ 781,326
Fulfillment fee revenue		27,574	11,944
Proceeds from sale of mortgage loans held for sale to PennyMac Mortgage Investment Trust		884,510	781,326
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 (loss) on mortgage loans held for sale to PMT		27,146	13,811
Mortgage servicing rights and excess servicing spread recapture incurred		(1,123)	(1,425)
Total of gain on sale of loans and MSR recapture		26,023	12,386
Sale of mortgage loans held for sale to PMT		884,510	781,326
Fulfillment fee revenue		27,574	11,944
Unpaid principal balance of mortgage loans fulfilled for PMT		8,135,552	4,225,631
Sourcing fees paid		1,994	2,641
Unpaid principal balance of mortgage loans purchased from PMT		6,647,338	8,847,873
Proceeds from sale of mortgage loans held for sale to PennyMac Mortgage Investment Trust		884,510	781,326
Tax service fee		$ 2,243	$ 1,208

Transactions with Affiliates _2

Transactions with Affiliates - Mortgage Loan Servicing (Details)	Sep. 12, 2016USD ($)item	Mar. 31, 2019USD ($)	Mar. 31, 2018USD ($)
Summary of mortgage loan servicing fees earned
Loan servicing fees		$ 166,790,000	$ 135,483,000
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		10,570,000	11,019,000
PMT | Mortgage loans acquired for sale at fair value
Summary of mortgage loan servicing fees earned
Loan servicing fees		239,000	178,000
PMT | Mortgage loans at fair value
Summary of mortgage loan servicing fees earned
Loan servicing fees		463,000	3,085,000
PMT | Mortgage servicing rights
Summary of mortgage loan servicing fees earned
Loan servicing fees		9,868,000	7,756,000
PMT | Other income.
Summary of mortgage loan servicing fees earned
Property management fees		$ 123,000	$ 99,000

Transactions with Affiliates _3

Transactions with Affiliates - Management Fees (Details) - USD ($)	Sep. 12, 2016	Mar. 31, 2019	Mar. 31, 2018
Management Fee Revenue Abstract
Management fees		$ 7,248,000	$ 5,775,000
PMT
Management Fee Revenue Abstract
Management fees		7,248,000	5,696,000
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		6,109,000	5,696,000
Performance incentive		1,139,000
Management fees		$ 7,248,000	$ 5,696,000
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	Mar. 31, 2019	Mar. 31, 2018
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		$ 1,926,000	$ 1,694,000
Payments and settlements during the period		15,189,000	7,658,000
Common overhead incurred
Reimbursement of common overhead and expenses incurred on behalf of affiliates
Reimbursement of common overhead and expenses incurred by the Company		1,236,000	1,001,000
Compensation
Reimbursement of common overhead and expenses incurred on behalf of affiliates
Reimbursement of common overhead and expenses incurred by the Company		120,000	120,000
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		$ 570,000	$ 573,000

Transactions with Affiliates _5

Transactions with Affiliates - Other Transactions, Conditional Reimbursement (Details) - PMT - Conditional Reimbursement - USD ($)	3 Months Ended
	Mar. 31, 2019	Aug. 04, 2009
Conditional reimbursement
Payments received	$ 75,000
Maximum
Conditional reimbursement
Conditional reimbursement		$ 2,900,000

Transactions with Affiliates _6

Transactions with Affiliates - Investing Activities (Details)	Dec. 19, 2016USD ($)item	Mar. 31, 2019USD ($)shares	Mar. 31, 2018USD ($)	Dec. 31, 2018USD ($)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
Repurchase agreement with PennyMac Mortgage Investment Trust:
Assets purchased from PennyMac Mortgage Investment Trust under agreements to resell pledged to creditors		$ 125,929,000		$ 131,025,000
Activity during the year:
Interest income on receivable from PennyMac Mortgage Investment Trust		1,796,000	$ 1,976,000
Activity during the period:
Dividends received from PennyMac Mortgage Investment Trust		36,000	35,000
Change in fair value of investment in Common shares of PennyMac Mortgage Investment Trust		156,000	147,000
Balance at end of period		192,000	182,000
Assets purchased from PennyMac Mortgage Investment Trust under agreements to resell		125,929,000		131,025,000
Fair value of PennyMac Mortgage Investment Trust shares		$ 1,553,000		$ 1,397,000
Number of shares | shares		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		$ 1,796,000	$ 1,976,000

Transactions with Affiliates _7

Transactions with Affiliates - Financing Activities (Details) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018	Feb. 01, 2013
Financing activities:
Issuance pursuant to recapture agreement	$ 508,000	$ 904,000
Repayments	10,552,000	12,291,000
PMT
Financing activities:
Gain (loss) recognized	4,051,000	(6,921,000)
Interest expense	3,066,000	3,934,000
Excess servicing spread financing at fair value payable to affiliate	205,081,000		$ 216,110,000
PMT | 2/1/13 Spread Acquisition Agreement
Financing activities:
Maximum ESS recapture obligation				$ 200,000
Excess servicing spread financing
Financing activities:
Gain (loss) recognized	(4,051,000)	6,921,000
Excess servicing spread financing | PMT
Financing activities:
Issuance pursuant to recapture agreement	508,000	904,000
Repayments	10,552,000	12,291,000
Gain (loss) recognized	4,051,000	(6,921,000)
Interest expense	3,066,000	3,934,000
Excess servicing spread recapture recognized	489,000	$ 830,000
Excess servicing spread financing at fair value payable to affiliate	$ 205,081,000		$ 216,110,000

Transactions with Affiliates _8

Transactions with Affiliates - Amounts due from Affiliate (Details) - PMT - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Amounts due from affiliate
Fulfillment fees	$ 3,907	$ 9,066
Management fees	4,350	4,841
Servicing fees	7,238	6,559
Allocated expenses	1,852	2,071
Correspondent production fees	726	801
Conditional Reimbursement	11,744	10,006
Interest on assets purchased under agreements to resell	134	120
Total due from affiliate	29,951	33,464
Payable to affiliate
Deposits made by PMT	73,149	100,554
MSR Recapture Payable to PMT	160	179
Other expenses	3,185	3,898
Payable to affiliates	$ 76,494	$ 104,631

Transactions with Affiliates _9

Transactions with Affiliates - Exchanged Private National Mortgage Acceptance Company, LLC Unitholders (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
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	$ 46.5		$ 46.5
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	$ 0

Loan Sales and Servicing Acti_3

Loan Sales and Servicing Activities - Summary of Cash Flows with Transferees (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Cash flows:
Sales proceeds	$ 8,536,430	$ 11,103,785
Servicing fees received	137,148	113,091
Net servicing advances (recoveries)	(24,176)	$ (10,637)
Period end information:
Unpaid principal balance of mortgage loans outstanding	148,795,055		$ 145,224,596
30-89 days	5,489,000		6,222,864
90 days or more - Not in foreclosure	2,085,034		2,208,083
90 days or more - In foreclosure	710,297		720,894
90 days or more - Foreclosed	24,875		24,243
Bankruptcy	$ 1,053,399		$ 970,329

Loan Sales and Servicing Acti_4

Loan Sales and Servicing Activities - Summary of Mortgage Servicing Portfolio (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Mortgage servicing portfolio
Mortgage loans held for sale	$ 2,573,121	$ 2,420,636
Total loans serviced	324,695,313	299,293,872
Subserviced for the Company	16,270,233	414,219
Delinquent mortgage loans:
30 days	6,723,719	7,203,168
60 days	1,892,210	2,096,619
90 days or more - Not in foreclosure	3,323,417	3,319,607
90 days or more - In foreclosure	1,210,529	1,154,518
90 days or more - Foreclosed	193,116	209,870
Total delinquent mortgage loans	13,342,991	13,983,782
Bankruptcy	1,640,451	1,522,189
Custodial funds managed by the Company	5,235,731	4,003,986
Servicing rights owned
Mortgage servicing portfolio
Mortgage loans held for sale	2,573,121	2,420,636
Total loans serviced	223,407,885	204,635,718
Subserviced for the Company	16,270,233	414,219
Delinquent mortgage loans:
30 days	6,244,534	6,677,179
60 days	1,781,121	1,983,381
90 days or more - Not in foreclosure	3,100,186	3,102,492
90 days or more - In foreclosure	1,094,892	1,027,493
90 days or more - Foreclosed	35,354	33,493
Total delinquent mortgage loans	12,256,087	12,824,038
Bankruptcy	1,521,842	1,415,106
Custodial funds managed by the Company	3,851,327	3,033,658
Contract servicing and subservicing
Mortgage servicing portfolio
Total loans serviced	101,287,428	94,658,154
Delinquent mortgage loans:
30 days	479,185	525,989
60 days	111,089	113,238
90 days or more - Not in foreclosure	223,231	217,115
90 days or more - In foreclosure	115,637	127,025
90 days or more - Foreclosed	157,762	176,377
Total delinquent mortgage loans	1,086,904	1,159,744
Bankruptcy	118,609	107,083
Custodial funds managed by the Company	1,384,404	970,328
Non affiliated entities
Mortgage servicing portfolio
Originated	148,795,055	145,224,596
Purchased	72,039,709	56,990,486
Total loans serviced, excluding loans held for sale	220,834,764	202,215,082
Non affiliated entities | Servicing rights owned
Mortgage servicing portfolio
Originated	148,795,055	145,224,596
Purchased	72,039,709	56,990,486
Total loans serviced, excluding loans held for sale	220,834,764	202,215,082
Affiliated entities
Mortgage servicing portfolio
Advised entities	101,287,428	94,658,154
Affiliated entities | Contract servicing and subservicing
Mortgage servicing portfolio
Advised entities	$ 101,287,428	$ 94,658,154

Loan Sales and Servicing Acti_5

Loan Sales and Servicing Activities - Geographical Distribution of Loans (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Loan Sales and Servicing Activities
Total loans serviced	$ 324,695,313	$ 299,293,872
California
Loan Sales and Servicing Activities
Total loans serviced	54,790,956	51,377,441
Florida
Loan Sales and Servicing Activities
Total loans serviced	25,043,416	22,650,926
Texas
Loan Sales and Servicing Activities
Total loans serviced	24,957,664	23,648,042
Virginia
Loan Sales and Servicing Activities
Total loans serviced	19,845,177	19,011,950
Maryland
Loan Sales and Servicing Activities
Total loans serviced	14,748,291	13,774,011
All other states
Loan Sales and Servicing Activities
Total loans serviced	$ 185,309,809	$ 168,831,502

Fair Value - Financial Statemen

Fair Value - Financial Statement Items Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Assets:
Short-term investments at fair value	$ 149,372	$ 117,824
Mortgage loans held for sale	2,668,929	2,521,647
Derivative assets:
Derivative asset, before netting	185,282	123,316
Netting	(64,129)	(26,969)
Total derivative assets	121,153	96,347
Mortgage servicing rights at fair value	2,675,704	2,807,333
Derivative liabilities:
Derivative liability, before netting	31,315	28,146
Netting	(13,477)	(25,082)
Net amounts of liabilities presented in the consolidated balance sheet	17,838	3,064
Mortgage servicing liabilities	7,844	8,681
PMT
Derivative assets:
Investment in PennyMac Mortgage Investment Trust	1,553	1,397
Interest rate lock commitments
Derivative assets:
Total derivative assets	68,248	50,507
Forward contracts | Purchases
Derivative assets:
Derivative asset, before netting	61,932	35,916
Derivative liabilities:
Derivative liability, before netting	3,170	215
Forward contracts | Sales
Derivative assets:
Derivative asset, before netting	1,215	437
Derivative liabilities:
Derivative liability, before netting	25,962	26,762
MBS put options
Derivative assets:
Derivative asset, before netting	6,287	720
MBS call options
Derivative assets:
Derivative asset, before netting	6,251	2,135
Call options on interest rate futures | Purchases
Derivative assets:
Derivative asset, before netting	14,078	5,965
Put options on interest rate futures | Purchases
Derivative assets:
Derivative asset, before netting	2,639	866
Recurring basis
Assets:
Short-term investments at fair value	149,372	117,824
Mortgage loans held for sale	2,668,929	2,521,647
Derivative assets:
Derivative asset, before netting	185,282	123,316
Netting	(64,129)	(26,969)
Total derivative assets	121,153	96,347
Mortgage servicing rights at fair value	2,905,090	2,820,612
Total assets	5,846,097	5,557,827
Derivative liabilities:
Derivative liability, before netting	31,315	28,146
Netting	(13,477)	(25,082)
Net amounts of liabilities presented in the consolidated balance sheet	17,838	3,064
Mortgage servicing liabilities	7,844	8,681
Total liabilities	230,763	227,855
Recurring basis | PMT
Derivative assets:
Investment in PennyMac Mortgage Investment Trust	1,553	1,397
Derivative liabilities:
Excess servicing spread financing at fair value to affiliate	205,081	216,110
Recurring basis | Interest rate lock commitments
Derivative assets:
Derivative asset, before netting	68,248	50,507
Derivative liabilities:
Derivative liability, before netting	2,183	1,169
Recurring basis | Repurchase agreement derivatives
Derivative assets:
Derivative asset, before netting	24,632	26,770
Recurring basis | Forward contracts | Purchases
Derivative assets:
Derivative asset, before netting	61,932	35,916
Derivative liabilities:
Derivative liability, before netting	3,170	215
Recurring basis | Forward contracts | Sales
Derivative assets:
Derivative asset, before netting	1,215	437
Derivative liabilities:
Derivative liability, before netting	25,962	26,762
Recurring basis | MBS put options
Derivative assets:
Derivative asset, before netting	6,287	720
Recurring basis | MBS call options
Derivative assets:
Derivative asset, before netting	6,251	2,135
Recurring basis | Call options on interest rate futures | Purchases
Derivative assets:
Derivative asset, before netting	14,078	5,965
Recurring basis | Put options on interest rate futures | Purchases
Derivative assets:
Derivative asset, before netting	2,639	866
Recurring basis | Level 1
Assets:
Short-term investments at fair value	149,372	117,824
Derivative assets:
Derivative asset, before netting	16,717	6,831
Total derivative assets	16,717	6,831
Total assets	167,642	126,052
Recurring basis | Level 1 | PMT
Derivative assets:
Investment in PennyMac Mortgage Investment Trust	1,553	1,397
Recurring basis | Level 1 | Call options on interest rate futures | Purchases
Derivative assets:
Derivative asset, before netting	14,078	5,965
Recurring basis | Level 1 | Put options on interest rate futures | Purchases
Derivative assets:
Derivative asset, before netting	2,639	866
Recurring basis | Level 2
Assets:
Mortgage loans held for sale	2,213,396	2,261,639
Derivative assets:
Derivative asset, before netting	75,685	39,208
Total derivative assets	75,685	39,208
Total assets	2,289,081	2,300,847
Derivative liabilities:
Derivative liability, before netting	29,132	26,977
Net amounts of liabilities presented in the consolidated balance sheet	29,132	26,977
Total liabilities	29,132	26,977
Recurring basis | Level 2 | Forward contracts | Purchases
Derivative assets:
Derivative asset, before netting	61,932	35,916
Derivative liabilities:
Derivative liability, before netting	3,170	215
Recurring basis | Level 2 | Forward contracts | Sales
Derivative assets:
Derivative asset, before netting	1,215	437
Derivative liabilities:
Derivative liability, before netting	25,962	26,762
Recurring basis | Level 2 | MBS put options
Derivative assets:
Derivative asset, before netting	6,287	720
Recurring basis | Level 2 | MBS call options
Derivative assets:
Derivative asset, before netting	6,251	2,135
Recurring basis | Level 3
Assets:
Mortgage loans held for sale	455,533	260,008
Derivative assets:
Derivative asset, before netting	92,880	77,277
Total derivative assets	92,880	77,277
Mortgage servicing rights at fair value	2,905,090	2,820,612
Total assets	3,453,503	3,157,897
Derivative liabilities:
Derivative liability, before netting	2,183	1,169
Net amounts of liabilities presented in the consolidated balance sheet	2,183	1,169
Mortgage servicing liabilities	7,844	8,681
Total liabilities	215,108	225,960
Recurring basis | Level 3 | PMT
Derivative liabilities:
Excess servicing spread financing at fair value to affiliate	205,081	216,110
Recurring basis | Level 3 | Interest rate lock commitments
Derivative assets:
Derivative asset, before netting	68,248	50,507
Derivative liabilities:
Derivative liability, before netting	2,183	1,169
Recurring basis | Level 3 | Repurchase agreement derivatives
Derivative assets:
Derivative asset, before netting	$ 24,632	$ 26,770

Fair Value - Level 3 Input Roll

Fair Value - Level 3 Input Roll Forward, Recurring Basis (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Jan. 01, 2018
Roll forward of liabilities measured using Level 3 inputs on a recurring basis
Mortgage servicing liabilities resulting from mortgage loan sales	$ 794	$ 2,037
Excess servicing spread financing
Roll forward of liabilities measured using Level 3 inputs on a recurring basis
Balance at the beginning of the quarter	216,110	236,534
Accrual of interest on excess servicing spread financing	3,066	3,934
Repayment	(10,552)	(12,291)
Changes in fair value included in income	(4,051)	6,921
Balance at the end of the quarter	205,081	236,002
Recurring basis
Roll forward of assets measured using Level 3 inputs on a recurring basis
Balance at the beginning of the quarter	3,156,728	1,489,149
Reclassification of mortgage servicing rights previously accounted for under the amortization method			$ 1,482,426
Balance after reclassification			2,971,575
Purchases	1,078,872	751,224
Sales and repayments	(187,738)	(604,101)
Mortgage servicing rights resulting from mortgage loan sales	115,751	143,910
Changes in fair value included in income arising from:
Changes in instrument specific credit risk	(6,091)	(8,755)
Other factors	(199,624)	17,198
Total changes in fair value included in income	(205,715)	8,443
Transfers from mortgage loans held for sale from Level 3 to Level 2	(405,163)	(356,232)
Transfers to real estate acquired in settlement of loans	(1,181)
Transfers from interest rate lock commitments to mortgage loans held for sale	(100,234)	(28,061)
Balance at the end of the quarter	3,451,320	2,886,758
Changes in fair value recognized during the period relating to assets still held at the end of the period	(196,520)	105,758
Roll forward of liabilities measured using Level 3 inputs on a recurring basis
Balance at the beginning of the quarter	224,791	250,654
Issuances	508	904
Accrual of interest on excess servicing spread financing	3,066	3,934
Repayment	(10,552)	(12,291)
Mortgage servicing liabilities resulting from mortgage loan sales	794	2,037
Changes in fair value included in income	(5,682)	2,827
Balance at the end of the quarter	212,925	248,065
Changes in fair value recognized during the period relating to liability still outstanding at the end of the period	(5,682)	2,827
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	216,110	236,534
Issuances	508	904
Accrual of interest on excess servicing spread financing	3,066	3,934
Repayment	(10,552)	(12,291)
Changes in fair value included in income	(4,051)	6,921
Balance at the end of the quarter	205,081	236,002
Changes in fair value recognized during the period relating to liability still outstanding at the end of the period	(4,051)	6,921
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	8,681	14,120
Mortgage servicing liabilities resulting from mortgage loan sales	794	2,037
Changes in fair value included in income	(1,631)	(4,094)
Balance at the end of the quarter	7,844	12,063
Changes in fair value recognized during the period relating to liability still outstanding at the end of the period	(1,631)	(4,094)
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	260,008	782,211
Balance after reclassification			782,211
Purchases	784,262	647,269
Sales and repayments	(176,302)	(604,094)
Changes in fair value included in income arising from:
Changes in instrument specific credit risk	(6,091)	(8,755)
Total changes in fair value included in income	(6,091)	(8,755)
Transfers from mortgage loans held for sale from Level 3 to Level 2	(405,163)	(356,232)
Transfers to real estate acquired in settlement of loans	(1,181)
Balance at the end of the quarter	455,533	460,399
Changes in fair value recognized during the period relating to assets still held at the end of the period	(3,540)	(7,598)
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	49,338	58,272
Balance after reclassification			58,272
Purchases	56,983	65,598
Changes in fair value included in income arising from:
Other factors	59,978	(44,913)
Total changes in fair value included in income	59,978	(44,913)
Transfers from interest rate lock commitments to mortgage loans held for sale	(100,234)	(28,061)
Balance at the end of the quarter	66,065	50,896
Changes in fair value recognized during the period relating to assets still held at the end of the period	66,065	50,896
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	26,770	10,656
Balance after reclassification			10,656
Purchases	9,855	10,751
Sales and repayments	(11,436)	(7)
Changes in fair value included in income arising from:
Other factors	(557)	(426)
Total changes in fair value included in income	(557)	(426)
Balance at the end of the quarter	24,632	20,974
Changes in fair value recognized during the period relating to assets still held at the end of the period		(77)
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	2,820,612	638,010
Reclassification of mortgage servicing rights previously accounted for under the amortization method			1,482,426
Balance after reclassification			$ 2,120,436
Purchases	227,772	27,606
Mortgage servicing rights resulting from mortgage loan sales	115,751	143,910
Changes in fair value included in income arising from:
Other factors	(259,045)	62,537
Total changes in fair value included in income	(259,045)	62,537
Balance at the end of the quarter	2,905,090	2,354,489
Changes in fair value recognized during the period relating to assets still held at the end of the period	$ (259,045)	$ 62,537

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
	Mar. 31, 2019	Mar. 31, 2018
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	$ 5,682	$ (2,827)
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	5,682	(2,827)
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	4,051	(6,921)
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	4,051	(6,921)
Mortgage servicing liabilities
Net gains (losses) from changes in estimated fair values included in earnings for financial statement items carried at estimated fair value
Total gains (losses) from changes in estimated fair values included in earnings	1,631	4,094
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	1,631	4,094
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	(157,050)	56,419
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	101,995	(6,118)
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	(259,045)	62,537
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	101,995	(6,118)
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	101,995	(6,118)
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	(259,045)	62,537
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	$ (259,045)	$ 62,537

Fair Value - Fair Value Option

Fair Value - Fair Value Option Maturities, Recurring Basis (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Fair value
Total fair value	$ 2,668,929	$ 2,521,647
Recurring basis
Fair value
Total fair value	2,668,929	2,521,647
Mortgage loans held for sale | Recurring basis
Fair value
Current through 89 days delinquent	2,357,344	2,324,203
Not in foreclosure	235,957	143,631
In foreclosure	75,628	53,813
Total fair value	2,668,929	2,521,647
Principal amount due upon maturity
Current through 89 days delinquent	2,252,816	2,220,371
Not in foreclosure	240,728	144,011
In foreclosure	79,577	56,254
Total principal amount due upon maturity	2,573,121	2,420,636
Difference
Current through 89 days delinquent	104,528	103,832
Not in foreclosure	(4,771)	(380)
In foreclosure	(3,949)	(2,441)
Total difference	$ 95,808	$ 101,011

Fair Value - Measurement Basis,

Fair Value - Measurement Basis, Nonrecurring (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Total gains (losses) on assets measured at estimated fair values on a nonrecurring basis
Notes Payable	$ 1,292,736		$ 1,292,291
Nonrecurring basis
Financial statement items measured at fair value on a nonrecurring basis
Real estate acquired in settlement of loans	719		2,150
Total gains (losses) on assets measured at estimated fair values on a nonrecurring basis
Real estate acquired in settlement of loans	21	$ 27
Nonrecurring basis | Level 3
Financial statement items measured at fair value on a nonrecurring basis
Real estate acquired in settlement of loans	719		2,150
Fair Values
Total gains (losses) on assets measured at estimated fair values on a nonrecurring basis
Notes Payable	$ 1,300,000		$ 1,300,000

Fair Value - Level 3 Unobservab

Fair Value - Level 3 Unobservable Inputs, Mortgage Loans and IRLC (Details) - item	Mar. 31, 2019	Dec. 31, 2018
Mortgage loans held for sale | Discount rate | Level 3 | Minimum
Excess servicing spread financing
Input	3.1	2.8
Mortgage loans held for sale | Discount rate | Level 3 | Maximum
Excess servicing spread financing
Input	9.2	9.2
Mortgage loans held for sale | Discount rate | Level 3 | Weighted average
Excess servicing spread financing
Input	3.1	2.9
Mortgage loans held for sale | Twelve-month projected housing price index Change | Level 3 | Minimum
Excess servicing spread financing
Input	3	2.2
Mortgage loans held for sale | Twelve-month projected housing price index Change | Level 3 | Maximum
Excess servicing spread financing
Input	4.8	5
Mortgage loans held for sale | Twelve-month projected housing price index Change | Level 3 | Weighted average
Excess servicing spread financing
Input	3.3	3.5
Mortgage loans held for sale | Prepayment/resale speed | Level 3 | Minimum
Excess servicing spread financing
Input	0.1	0.1
Mortgage loans held for sale | Prepayment/resale speed | Level 3 | Maximum
Excess servicing spread financing
Input	24.3	21.8
Mortgage loans held for sale | Prepayment/resale speed | Level 3 | Weighted average
Excess servicing spread financing
Input	22	20.1
Mortgage loans held for sale | Total prepayment speed | Level 3 | Minimum
Excess servicing spread financing
Input	0.1	0.1
Mortgage loans held for sale | Total prepayment speed | Level 3 | Maximum
Excess servicing spread financing
Input	42	40.5
Mortgage loans held for sale | Total prepayment speed | Level 3 | Weighted average
Excess servicing spread financing
Input	39.2	37.7
Interest rate lock commitments | Pull-through rate | Level 3 | Minimum
Excess servicing spread financing
Input	12.2	16.6
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	82.8	84.1
Interest rate lock commitments | Mortgage servicing rights value expressed as servicing fee multiple | Level 3 | Minimum
Excess servicing spread financing
Input	1.1	1.5
Interest rate lock commitments | Mortgage servicing rights value expressed as servicing fee multiple | Level 3 | Maximum
Excess servicing spread financing
Input	5.7	5.5
Interest rate lock commitments | Mortgage servicing rights value expressed as servicing fee multiple | Level 3 | Weighted average
Excess servicing spread financing
Input	3.8	3.8
Interest rate lock commitments | Percentage of unpaid principal balance | Level 3 | Minimum
Excess servicing spread financing
Input	0.3	0.4
Interest rate lock commitments | Percentage of unpaid principal balance | Level 3 | Maximum
Excess servicing spread financing
Input	2.7	3.2
Interest rate lock commitments | Percentage of unpaid principal balance | Level 3 | Weighted average
Excess servicing spread financing
Input	1.5	1.5
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		12 Months Ended
	Mar. 31, 2019USD ($)item	Mar. 31, 2018USD ($)item	Dec. 31, 2018USD ($)item
Mortgage servicing rights
Inputs
Amount recognized | $	$ 115,751,000	$ 143,910,000
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 | $	100		99
Fair Values | Mortgage servicing rights | Level 3 | Weighted average
Inputs:
Annual per-loan cost of servicing | $	$ 97		$ 93
Fair Values | Mortgage servicing rights | Pricing spread | Level 3 | Minimum
Inputs:
Input	6		5.8
Fair Values | Mortgage servicing rights | Pricing spread | Level 3 | Maximum
Inputs:
Input	15.8		16.1
Fair Values | Mortgage servicing rights | Pricing spread | Level 3 | Weighted average
Inputs:
Input	8.7		8.7
Fair Values | Mortgage servicing rights | Annual total prepayment speed | Level 3 | Minimum
Inputs:
Input	9		8.4
Fair Values | Mortgage servicing rights | Annual total prepayment speed | Level 3 | Maximum
Inputs:
Input	33.5		32.6
Fair Values | Mortgage servicing rights | Annual total prepayment speed | Level 3 | Weighted average
Inputs:
Input	11.4		9.9
Fair Values | Mortgage servicing rights | Life | Level 3 | Minimum
Inputs:
Input	1.5		1.5
Fair Values | Mortgage servicing rights | Life | Level 3 | Maximum
Inputs:
Input	7.6		7.9
Fair Values | Mortgage servicing rights | Life | Level 3 | Weighted average
Inputs:
Input	6.6		7.2
Fair Values | MSRs at the time of initial recognition, excluding MSR purchases | Level 3
Inputs
Amount recognized | $	$ 115,751,000	143,910,000
Unpaid principal balance of underlying mortgage loans | $	$ 8,145,850,000	$ 10,162,316,000
Weighted-average servicing fee rate (as a percent)	0.39%	0.35%
Fair Values | MSRs at the time of initial recognition, excluding MSR purchases | Level 3 | Minimum
Inputs:
Annual per-loan cost of servicing | $	$ 78	$ 78
Fair Values | MSRs at the time of initial recognition, excluding MSR purchases | Level 3 | Maximum
Inputs:
Annual per-loan cost of servicing | $	100	98
Fair Values | MSRs at the time of initial recognition, excluding MSR purchases | Level 3 | Weighted average
Inputs:
Annual per-loan cost of servicing | $	$ 95	$ 89
Fair Values | MSRs at the time of initial recognition, excluding MSR purchases | Pricing spread | Level 3 | Minimum
Inputs:
Input	5.8	7.4
Fair Values | MSRs at the time of initial recognition, excluding MSR purchases | Pricing spread | Level 3 | Maximum
Inputs:
Input	15.6	14.1
Fair Values | MSRs at the time of initial recognition, excluding MSR purchases | Pricing spread | Level 3 | Weighted average
Inputs:
Input	8.9	10.3
Fair Values | MSRs at the time of initial recognition, excluding MSR purchases | Annual total prepayment speed | Level 3 | Minimum
Inputs:
Input	5.8	3.9
Fair Values | MSRs at the time of initial recognition, excluding MSR purchases | Annual total prepayment speed | Level 3 | Maximum
Inputs:
Input	73	49
Fair Values | MSRs at the time of initial recognition, excluding MSR purchases | Annual total prepayment speed | Level 3 | Weighted average
Inputs:
Input	15.3	8.9
Fair Values | MSRs at the time of initial recognition, excluding MSR purchases | Life | Level 3 | Minimum
Inputs:
Input	0.8	1.1
Fair Values | MSRs at the time of initial recognition, excluding MSR purchases | Life | Level 3 | Maximum
Inputs:
Input	10.2	11.6
Fair Values | MSRs at the time of initial recognition, excluding MSR purchases | Life | Level 3 | Weighted average
Inputs:
Input	5.8	8.2

Fair Value - Level 3 Unobserv_3

Fair Value - Level 3 Unobservable Inputs, Mortgage Servicing Rights, Effect of Change In Inputs on Fair Value (Details)	3 Months Ended	12 Months Ended
	Mar. 31, 2019USD ($)item	Dec. 31, 2018USD ($)item
MSR and pool characteristics
Carrying value	$ 2,905,090,000	$ 2,820,612,000
Mortgage servicing liabilities | Level 3
Prepayment speed
Annual per-loan cost of servicing	364	373
Fair Values | Mortgage servicing rights | Level 3
MSR and pool characteristics
Carrying value	2,905,090,000	2,820,612,000
Unpaid principal balance of underlying mortgage loans	$ 219,834,361,000	$ 201,054,144,000
Weighted-average note interest rate (as a percent)	4	4
Weighted-average servicing fee rate (as a percent)	0.33%	0.33%
Pricing spread
Effect on fair value of 5% adverse change	$ (45,330,000)	$ (45,268,000)
Effect on fair value of 10% adverse change	(89,217,000)	(89,073,000)
Effect on fair value of 20% adverse change	(172,915,000)	(172,556,000)
Prepayment speed
Effect on fair value of 5% adverse change	(54,920,000)	(47,687,000)
Effect on fair value of 10% adverse change	(107,628,000)	(93,626,000)
Effect on fair value of 20% adverse change	(206,907,000)	(180,623,000)
Annual per-loan cost of servicing
Effect on fair value of 5% adverse change	(24,494,000)	(22,944,000)
Effect on fair value of 10% adverse change	(49,004,000)	(45,888,000)
Effect on fair value of 20% adverse change	(98,024,000)	(91,775,000)
Fair Values | Mortgage servicing rights | Level 3 | Minimum
Prepayment speed
Annual per-loan cost of servicing	78	78
Fair Values | Mortgage servicing rights | Level 3 | Maximum
Prepayment speed
Annual per-loan cost of servicing	100	99
Fair Values | Mortgage servicing rights | Level 3 | Weighted average
Prepayment speed
Annual per-loan cost of servicing	$ 97	$ 93
Fair Values | Mortgage servicing rights | Pricing spread | Level 3 | Minimum
Inputs
Input | item	6	5.8
Fair Values | Mortgage servicing rights | Pricing spread | Level 3 | Maximum
Inputs
Input | item	15.8	16.1
Fair Values | Mortgage servicing rights | Pricing spread | Level 3 | Weighted average
Inputs
Input | item	8.7	8.7
Fair Values | Mortgage servicing rights | Annual total prepayment speed | Level 3 | Minimum
Inputs
Input | item	9	8.4
Fair Values | Mortgage servicing rights | Annual total prepayment speed | Level 3 | Maximum
Inputs
Input | item	33.5	32.6
Fair Values | Mortgage servicing rights | Annual total prepayment speed | Level 3 | Weighted average
Inputs
Input | item	11.4	9.9
Fair Values | Mortgage servicing rights | Life | Level 3 | Minimum
Inputs
Input | item	1.5	1.5
Fair Values | Mortgage servicing rights | Life | Level 3 | Maximum
Inputs
Input | item	7.6	7.9
Fair Values | Mortgage servicing rights | Life | Level 3 | Weighted average
Inputs
Input | item	6.6	7.2

Fair Value - Level 3 Unobserv_4

Fair Value - Level 3 Unobservable Inputs, ESS (Details) - Excess servicing spread financing - Level 3 $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2019USD ($)item	Dec. 31, 2018USD ($)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 | $	$ 205,081	$ 216,110
Unpaid principal balance of underlying mortgage loans | $	$ 22,664,211	$ 23,196,033
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	2.8
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	3.3	3.2
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	3.2	3.1
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	8.5	8.2
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	29.9	29.5
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	10.4	9.7
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	1.5	1.6
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	7.4	7.6
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	6.5	6.8

Fair Value - Level 3 Unobserv_5

Fair Value - Level 3 Unobservable Inputs, Mortgage Servicing Liabilities (Details)	3 Months Ended	12 Months Ended
	Mar. 31, 2019USD ($)item	Dec. 31, 2018USD ($)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	$ 7,844,000	$ 8,681,000
Mortgage servicing liabilities | Level 3
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	7,844,000	8,681,000
Unpaid principal balance of underlying mortgage loans	$ 1,000,403,000	$ 1,160,938,000
Servicing fee rate (as a percent)	0.0025	0.0025
Annual per-loan cost of servicing	$ 364	$ 373
Mortgage servicing liabilities | Pricing spread | Level 3
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	7.4	7.3
Mortgage servicing liabilities | Annual total prepayment speed | Level 3
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	32.6	32.2
Mortgage servicing liabilities | Life | Level 3
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	3.6	3.8

Mortgage Loans Held for Sale _3

Mortgage Loans Held for Sale at Fair Value (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Mortgage Loans Held for Sale at Fair Value
Mortgage loans held for sale	$ 2,668,929	$ 2,521,647
Fair value of mortgage loans pledged to secure assets sold under agreements to repurchase	2,065,151	1,923,857
Fair value of mortgage loans pledged to secure mortgage loan participation and sale agreement	574,518	555,001
Pledged Assets Separately Reported, Loans Pledged as Collateral, at Fair Value, Total	2,639,669	2,478,858
Government-insured or guaranteed
Mortgage Loans Held for Sale at Fair Value
Mortgage loans held for sale	2,083,470	2,116,126
Conventional mortgage loans
Mortgage Loans Held for Sale at Fair Value
Mortgage loans held for sale	129,926	145,513
Home equity lines of credit
Mortgage Loans Held for Sale at Fair Value
Mortgage loans held for sale	86
Mortgage loans purchased from Ginnie Mae pools serviced by the entity
Mortgage Loans Held for Sale at Fair Value
Mortgage loans held for sale	446,290	250,585
Mortgage loans repurchased pursuant to representations and warranties
Mortgage Loans Held for Sale at Fair Value
Mortgage loans held for sale	$ 9,157	$ 9,423

Derivative Activities - Other I

Derivative Activities - Other Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Mar. 31, 2019	Dec. 31, 2018
Derivative assets:
Derivative asset, before netting			$ 185,282	$ 123,316
Netting			(64,129)	(26,969)
Total derivative assets			121,153	96,347
Derivative liabilities:
Derivative liability, before netting			31,315	28,146
Netting			(13,477)	(25,082)
Net amounts of liabilities presented in the consolidated balance sheet			17,838	3,064
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	$ (557)	$ (426)
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	(34,668)	87,747
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	134,557	(103,593)
Margin Deposits
Derivative assets:
Derivative asset, before netting			50,652	1,887
Interest rate lock commitments
Derivative assets:
Total derivative assets			68,248	50,507
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	16,727	(7,376)
Forward contracts | Purchases
Derivative Instruments
Notional amount	6,657,026		9,313,389	6,657,026
Derivative assets:
Derivative asset, before netting			61,932	35,916
Derivative liabilities:
Derivative liability, before netting			3,170	215
Activity for derivative contracts used to hedge the IRLCs and inventory of mortgage loans at notional value
Balance at beginning of quarter	6,657,026
Balance end of quarter	9,313,389
Forward contracts | Sales
Derivative Instruments
Notional amount	6,890,046		7,583,005	6,890,046
Derivative assets:
Derivative asset, before netting			1,215	437
Derivative liabilities:
Derivative liability, before netting			25,962	26,762
Activity for derivative contracts used to hedge the IRLCs and inventory of mortgage loans at notional value
Balance at beginning of quarter	6,890,046
Balance end of quarter	7,583,005
MBS put options
Derivative Instruments
Notional amount	4,635,000		9,425,000	4,635,000
Derivative assets:
Derivative asset, before netting			6,287	720
Activity for derivative contracts used to hedge the IRLCs and inventory of mortgage loans at notional value
Balance at beginning of quarter	4,635,000
Balance end of quarter	9,425,000
MBS call options
Derivative Instruments
Notional amount	1,450,000		3,350,000	1,450,000
Derivative assets:
Derivative asset, before netting			6,251	2,135
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
Balance end of quarter	3,350,000
Put options on interest rate futures | Purchases
Derivative Instruments
Notional amount	3,085,000		3,350,000	3,085,000
Derivative assets:
Derivative asset, before netting			2,639	866
Activity for derivative contracts used to hedge the IRLCs and inventory of mortgage loans at notional value
Balance at beginning of quarter	3,085,000
Balance end of quarter	3,350,000
Call options on interest rate futures | Purchases
Derivative Instruments
Notional amount	1,512,500		2,250,000	1,512,500
Derivative assets:
Derivative asset, before netting			14,078	5,965
Activity for derivative contracts used to hedge the IRLCs and inventory of mortgage loans at notional value
Balance at beginning of quarter	1,512,500
Balance end of quarter	2,250,000
Treasury future | Purchases
Derivative Instruments
Notional amount	835,000		1,810,000	835,000
Activity for derivative contracts used to hedge the IRLCs and inventory of mortgage loans at notional value
Balance at beginning of quarter	835,000
Balance end of quarter	1,810,000
Treasury future | Sales
Derivative Instruments
Notional amount	1,450,000		1,075,000	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
Balance end of quarter	1,075,000
Interest rate swap futures | Purchases
Derivative Instruments
Notional amount	625,000		1,025,000	625,000
Activity for derivative contracts used to hedge the IRLCs and inventory of mortgage loans at notional value
Balance at beginning of quarter	625,000
Balance end of quarter	1,025,000
Not designated as hedging instrument | Repurchase agreement derivatives
Derivative assets:
Derivative asset, before netting			24,632	26,770
Not designated as hedging instrument | Interest rate lock commitments
Derivative Instruments
Notional amount	2,805,400		3,821,942	2,805,400
Derivative assets:
Derivative asset, before netting			68,248	50,507
Derivative liabilities:
Derivative liability, before netting			2,183	1,169
Activity for derivative contracts used to hedge the IRLCs and inventory of mortgage loans at notional value
Balance at beginning of quarter	2,805,400
Balance end of quarter	3,821,942
Not designated as hedging instrument | Forward contracts | Purchases
Derivative Instruments
Notional amount	6,657,026	4,920,883	9,313,389	6,657,026
Activity for derivative contracts used to hedge the IRLCs and inventory of mortgage loans at notional value
Balance at beginning of quarter	6,657,026	4,920,883
Additions	52,621,845	45,330,785
Dispositions/expirations	(49,965,482)	(43,707,885)
Balance end of quarter	9,313,389	6,543,783
Not designated as hedging instrument | Forward contracts | Sales
Derivative Instruments
Notional amount	6,890,046	5,204,796	7,583,005	6,890,046
Activity for derivative contracts used to hedge the IRLCs and inventory of mortgage loans at notional value
Balance at beginning of quarter	6,890,046	5,204,796
Additions	59,673,487	56,355,552
Dispositions/expirations	(58,980,528)	(54,636,002)
Balance end of quarter	7,583,005	6,924,346
Not designated as hedging instrument | MBS put options
Derivative Instruments
Notional amount	4,635,000	4,925,000	9,425,000	4,635,000
Activity for derivative contracts used to hedge the IRLCs and inventory of mortgage loans at notional value
Balance at beginning of quarter	4,635,000	4,925,000
Additions	19,160,000	4,500,000
Dispositions/expirations	(14,370,000)	(5,675,000)
Balance end of quarter	9,425,000	3,750,000
Not designated as hedging instrument | MBS call options
Derivative Instruments
Notional amount	1,450,000		3,350,000	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	4,500,000	5,675,000
Dispositions/expirations	(2,600,000)	(5,675,000)
Balance end of quarter	3,350,000
Not designated as hedging instrument | Put options on interest rate futures | Purchases
Derivative Instruments
Notional amount	3,085,000	2,125,000	3,350,000	3,085,000
Activity for derivative contracts used to hedge the IRLCs and inventory of mortgage loans at notional value
Balance at beginning of quarter	3,085,000	2,125,000
Additions	6,675,000	5,525,000
Dispositions/expirations	(6,410,000)	(4,850,000)
Balance end of quarter	3,350,000	2,800,000
Not designated as hedging instrument | Put options on interest rate futures | Sales
Activity for derivative contracts used to hedge the IRLCs and inventory of mortgage loans at notional value
Additions	10,135,300	4,850,000
Dispositions/expirations	(10,135,300)	(4,850,000)
Not designated as hedging instrument | Call options on interest rate futures | Purchases
Derivative Instruments
Notional amount	1,512,500	100,000	2,250,000	1,512,500
Activity for derivative contracts used to hedge the IRLCs and inventory of mortgage loans at notional value
Balance at beginning of quarter	1,512,500	100,000
Additions	4,462,800	375,000
Dispositions/expirations	(3,725,300)	(250,000)
Balance end of quarter	2,250,000	225,000
Not designated as hedging instrument | Call options on interest rate futures | Sales
Activity for derivative contracts used to hedge the IRLCs and inventory of mortgage loans at notional value
Additions		250,000
Dispositions/expirations		(250,000)
Not designated as hedging instrument | Treasury future | Purchases
Derivative Instruments
Notional amount	835,000	100,000	1,810,000	835,000
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	4,111,200	1,904,900
Dispositions/expirations	(3,136,200)	(1,494,900)
Balance end of quarter	1,810,000	510,000
Not designated as hedging instrument | Treasury future | Sales
Derivative Instruments
Notional amount	1,450,000	1,250,000	1,075,000	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	2,761,200	3,406,200
Dispositions/expirations	(3,136,200)	(2,156,200)
Balance end of quarter	1,075,000	1,250,000
Not designated as hedging instrument | Interest rate swap futures | Purchases
Derivative Instruments
Notional amount	625,000	1,400,000	$ 1,025,000	$ 625,000
Activity for derivative contracts used to hedge the IRLCs and inventory of mortgage loans at notional value
Balance at beginning of quarter	625,000	1,400,000
Additions	400,000	465,000
Dispositions/expirations		(1,400,000)
Balance end of quarter	$ 1,025,000	465,000
Not designated as hedging instrument | Interest rate swap futures | Sales
Activity for derivative contracts used to hedge the IRLCs and inventory of mortgage loans at notional value
Additions		1,400,000
Dispositions/expirations		$ (1,400,000)

Derivative Activities - Offsett

Derivative Activities - Offsetting of Derivative Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Derivatives not subject to master netting arrangements
Gross amounts of recognized assets	$ 92,880	$ 77,277
Derivatives subject to master netting arrangements:
Gross amounts of recognized assets	92,402	46,039
Gross amounts offset in the consolidated balance sheet	(64,129)	(26,969)
Net amounts of assets presented in the consolidated balance sheet	28,273	19,070
Total
Gross amounts of recognized assets	185,282	123,316
Net amounts of assets presented in the balance sheet	121,153	96,347
Interest rate lock commitments
Derivatives not subject to master netting arrangements
Gross amounts of recognized assets	68,248	50,507
Total
Net amounts of assets presented in the balance sheet	68,248	50,507
Repurchase agreement derivatives
Derivatives not subject to master netting arrangements
Gross amounts of recognized assets	24,632	26,770
MBS put options
Derivatives subject to master netting arrangements:
Gross amounts of recognized assets	6,287	720
Net amounts of assets presented in the consolidated balance sheet	6,287	720
Total
Gross amounts of recognized assets	6,287	720
MBS call options
Derivatives subject to master netting arrangements:
Gross amounts of recognized assets	6,251	2,135
Net amounts of assets presented in the consolidated balance sheet	6,251	2,135
Total
Gross amounts of recognized assets	6,251	2,135
Forward contracts | Purchases
Derivatives subject to master netting arrangements:
Gross amounts of recognized assets	61,932	35,916
Net amounts of assets presented in the consolidated balance sheet	61,932	35,916
Total
Gross amounts of recognized assets	61,932	35,916
Forward contracts | Sales
Derivatives subject to master netting arrangements:
Gross amounts of recognized assets	1,215	437
Net amounts of assets presented in the consolidated balance sheet	1,215	437
Total
Gross amounts of recognized assets	1,215	437
Put options on interest rate futures | Purchases
Derivatives subject to master netting arrangements:
Gross amounts of recognized assets	2,639	866
Net amounts of assets presented in the consolidated balance sheet	2,639	866
Total
Gross amounts of recognized assets	2,639	866
Call options on interest rate futures | Purchases
Derivatives subject to master netting arrangements:
Gross amounts of recognized assets	14,078	5,965
Net amounts of assets presented in the consolidated balance sheet	14,078	5,965
Total
Gross amounts of recognized assets	14,078	5,965
Margin Deposits
Total
Gross amounts of recognized assets	$ 50,652	$ 1,887

Derivative Activities - Offse_2

Derivative Activities - Offsetting of Derivative Assets - Derivative Assets, Financial Assets, and Collateral Held by Counterparty (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Total
Net amounts of assets presented in the balance sheet	$ 121,153	$ 96,347
Net amount	121,153	96,347
Deutsche Bank AG
Total
Net amounts of assets presented in the balance sheet	24,632	26,770
Net amount	24,632	26,770
RJ O'Brien
Total
Net amounts of assets presented in the balance sheet	16,717	6,831
Net amount	16,717	6,831
Wells Fargo Bank, N.A.
Total
Net amounts of assets presented in the balance sheet	2,275	3,707
Net amount	2,275	3,707
Bank of America, N.A.
Total
Net amounts of assets presented in the balance sheet	4,052	2,781
Net amount	4,052	2,781
Citibank, N.A.
Total
Net amounts of assets presented in the balance sheet		2,488
Net amount		2,488
JP Morgan
Total
Net amounts of assets presented in the balance sheet	3,494	1,399
Net amount	3,494	1,399
Goldman Sachs
Total
Net amounts of assets presented in the balance sheet	1,286
Net amount	1,286
Other
Total
Net amounts of assets presented in the balance sheet	449	1,864
Net amount	449	1,864
Interest rate lock commitments
Total
Net amounts of assets presented in the balance sheet	68,248	50,507
Net amount	$ 68,248	$ 50,507

Derivative Activities - Offse_3

Derivative Activities - Offsetting of Derivative Assets - Offsetting of Derivative and Financial Liabilities (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2019	Dec. 31, 2018
Derivatives: Subject to master netting arrangements:
Gross amounts of recognized liabilities	$ 29,132	$ 26,977
Netting	(13,477)	(25,082)
Net amounts of liabilities presented in the balance sheet	15,655	1,895
Total
Gross amounts of recognized liabilities	31,315	28,146
Net amounts of liabilities presented in the consolidated balance sheet	17,838	3,064
Mortgage loans sold under agreements to repurchase
Net amounts of liabilities presented in the consolidated balance sheet	2,152,588
Debt Issuance Costs
Debt issuance costs, gross	(650)	(1,341)
Debt issuance costs	(650)	(1,341)
Gross amounts of recognized liabilities	2,151,938	1,933,859
Net amount of liabilities in the consolidated balance sheet	2,151,938	1,933,859
Total
Gross amounts of recognized liabilities	2,183,253	1,962,005
Gross amounts offset in the consolidated balance sheet	(13,477)	(25,082)
Net amounts of liabilities presented in the consolidated balance sheet	2,170,426	1,938,264
Net amount of liabilities in the consolidated balance sheet	17,838	3,064
Receivable from Counterparties
Total
Net amounts of liabilities presented in the consolidated balance sheet	2,169,776	1,936,923
Assets sold under agreements to repurchase
Mortgage loans sold under agreements to repurchase
Gross amounts of recognized liabilities	2,152,588	1,935,200
Net amounts of liabilities presented in the consolidated balance sheet	2,152,588	1,935,200
Net amounts of liabilities presented in the consolidated balance sheet	2,152,588	1,935,200
Debt Issuance Costs
Debt issuance costs	(650)	(1,341)
Net amount of liabilities in the consolidated balance sheet	2,151,938	1,933,859
Forward contracts | Purchases
Derivatives: Subject to master netting arrangements:
Gross amounts of recognized liabilities	3,170	215
Net amounts of liabilities presented in the balance sheet	3,170	215
Total
Gross amounts of recognized liabilities	3,170	215
Forward contracts | Sales
Derivatives: Subject to master netting arrangements:
Gross amounts of recognized liabilities	25,962	26,762
Net amounts of liabilities presented in the balance sheet	25,962	26,762
Total
Gross amounts of recognized liabilities	25,962	26,762
Interest rate lock commitments
Derivatives not subject to master netting arrangements
Gross amounts of recognized liabilities	2,183	1,169
Total
Net amounts of liabilities presented in the consolidated balance sheet	2,183	1,169
Net amount of liabilities in the consolidated balance sheet	$ 2,183	$ 1,169

Derivative Activities - Offse_4

Derivative Activities - Offsetting of Derivative Assets - Derivative Liabilities, Financial Liabilities, and Collateral Held by Counterparty (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Derivative liabilities:
Net amounts of liabilities presented in the consolidated balance sheet	$ 2,170,426	$ 1,938,264
Financial instruments	(2,152,588)	(1,935,200)
Net amount of liabilities in the consolidated balance sheet	17,838	3,064
Credit Suisse First Boston Mortgage Capital LLC
Derivative liabilities:
Net amounts of liabilities presented in the consolidated balance sheet	848,914	691,030
Financial instruments	(845,622)	(690,766)
Net amount of liabilities in the consolidated balance sheet	3,292	264
Bank of America, N.A.
Derivative liabilities:
Net amounts of liabilities presented in the consolidated balance sheet	170,859	170,820
Financial instruments	(170,859)	(170,820)
Deutsche Bank AG
Derivative liabilities:
Net amounts of liabilities presented in the consolidated balance sheet	692,010	741,978
Financial instruments	(692,010)	(741,978)
Royal Bank of Canada
Derivative liabilities:
Net amounts of liabilities presented in the consolidated balance sheet	40,099	35,181
Financial instruments	(40,099)	(35,181)
JP Morgan
Derivative liabilities:
Net amounts of liabilities presented in the consolidated balance sheet	50,875	54,326
Financial instruments	(50,875)	(54,326)
Morgan Stanley Bank
Derivative liabilities:
Net amounts of liabilities presented in the consolidated balance sheet	80,998	77,687
Financial instruments	(71,069)	(77,687)
Net amount of liabilities in the consolidated balance sheet	9,929
Citibank, N.A.
Derivative liabilities:
Net amounts of liabilities presented in the consolidated balance sheet	83,533	14,960
Financial instruments	(82,659)	(14,960)
Net amount of liabilities in the consolidated balance sheet	874
Federal National Mortgage Association
Derivative liabilities:
Net amounts of liabilities presented in the consolidated balance sheet	764
Net amount of liabilities in the consolidated balance sheet	764
BNP Paribas
Derivative liabilities:
Net amounts of liabilities presented in the consolidated balance sheet	199,395	149,675
Financial instruments	(199,395)	(149,482)
Net amount of liabilities in the consolidated balance sheet		193
Other
Derivative liabilities:
Net amounts of liabilities presented in the consolidated balance sheet	796	1,438
Net amount of liabilities in the consolidated balance sheet	796	1,438
Interest rate lock commitments
Derivative liabilities:
Net amounts of liabilities presented in the consolidated balance sheet	2,183	1,169
Net amount of liabilities in the consolidated balance sheet	$ 2,183	$ 1,169

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
	Mar. 31, 2019	Mar. 31, 2018	Jan. 01, 2019	Dec. 31, 2018	Jan. 01, 2018
Activity in MSRs carried at fair value
Balance at beginning of quarter	$ 2,807,333
Change in fair value:
Balance at end of quarter	2,675,704
Mortgage servicing rights
Activity in MSRs carried at fair value
Balance at beginning of quarter	2,820,612	$ 638,010
Reclassification of mortgage servicing rights previously accounted for under the amortization method					$ 1,482,426
Balance after reclassification			$ 2,820,612		$ 2,120,436
Additions - Purchases	227,772	27,606
Additions - Mortgage servicing rights resulting from mortgage loan sales	115,751	143,910
Additions	343,523	171,516
Change in fair value:
Changes in inputs used in valuation model	(161,638)	130,449
Other changes in fair value	(97,407)	(67,912)
Total change in fair value	(259,045)	62,537
Balance at end of quarter	2,905,090	$ 2,354,489
Total	$ 2,675,704			$ 2,807,333

Mortgage Servicing Rights and_4

Mortgage Servicing Rights and Mortgage Servicing Liabilities - Mortgage Servicing Liabilities Carried at FV (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Amortized cost:
Mortgage servicing liabilities resulting from mortgage loan sales	$ 794	$ 2,037
Mortgage servicing liabilities
Amortized cost:
Balance at beginning of period	8,681	14,120
Mortgage servicing liabilities resulting from mortgage loan sales	794	2,037
Changes in valuation inputs used in valuation model	3,301	2,643
Other changes in fair value	(4,932)	(6,737)
Total change in fair value	(1,631)	(4,094)
Balance at end of period	$ 7,844	$ 12,063

Mortgage Servicing Rights and_5

Mortgage Servicing Rights and Mortgage Servicing Liabilities - Servicing, Late, Ancillary and Other Fees Relating to MSRs (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Contractual servicing fees	$ 166,790	$ 135,483
Ancillary and other fees
Other	22,017	14,171
Bank Servicing Fees	80,571	116,789
Mortgage servicing rights
Contractual servicing fees	166,790	135,483
Ancillary and other fees
Late charges	9,812	7,459
Other	1,661	1,562
Bank Servicing Fees	$ 178,263	$ 144,504

Leases (Details)

Leases (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2019USD ($)item
Leases
Operating lease option to extend	true
Lease expenses:
Lease cost	$ 3,229
Short-term lease cost	217
Sublease income	(32)
Total lease cost	3,414
Cash payments for operating leases	3,846
Right-of-use assets obtained in exchange for lease obligations	$ 58,598
Remaining lease term (in year)	6 years 3 months 18 days
Discount rate (as a percent)	4.60%
Operating lease liabilities
2020	$ 15,683
2021	14,993
2022	13,397
2023	11,941
2024	10,343
Thereafter	21,999
Total lease payments	88,356
Less imputed interest	(11,983)
Total	$ 76,373
Number of operating leases not yet commenced. | item	1
Lease expense from leases not yet commenced	$ 1,500
Minimum
Leases
Remaining operating lease term	1 year
Maximum
Leases
Remaining operating lease term	10 years
Operating lease renewal term	5 years

Borrowings - Assets Sold Under

Borrowings - Assets Sold Under Agreement to Repurchase (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
During the period:
Total interest expense	$ 8,635	$ 6,732
Carrying value:
Unpaid principal balance	2,152,588
Unamortized debt issuance costs and premiums	(650)		$ (1,341)
Total loans sold under agreements to repurchase	2,151,938		1,933,859
Servicing advances	147,435		162,895
Assets sold under agreements to repurchase
During the period:
Average balance of mortgage loans sold under agreements to repurchase	$ 1,437,957	$ 1,643,443
Weighted-average interest rate (as a percent)	4.47%	3.59%
Total interest expense	$ 8,635	$ 6,732
Maximum daily amount outstanding	2,152,588	2,380,121
Carrying value:
Unpaid principal balance	2,152,588		1,935,200
Unamortized debt issuance costs and premiums	(650)		(1,341)
Total loans sold under agreements to repurchase	$ 2,151,938		$ 1,933,859
Weighted average interest rate (as a percent)	4.35%		4.22%
Available borrowing capacity committed	$ 625,413		$ 695,767
Available borrowing capacity uncommitted	2,206,999		2,354,033
Available borrowing capacity	2,832,412		3,049,800
Margin deposits placed with counterparties	3,750		3,750
Amortization of premium	7,400	8,000
Amount of Master Repurchase Agreement incentives to refinance include in interest expense	9,300	$ 10,200
Assets sold under agreements to repurchase | Mortgage Loans held for sale
Carrying value:
Fair value of assets pledged to secure	2,065,151		1,923,857
Assets sold under agreements to repurchase | Mortgage servicing rights
Carrying value:
Fair value of assets pledged to secure	2,574,228		2,807,333
Assets sold under agreements to repurchase | Servicing advances
Carrying value:
Fair value of assets pledged to secure	147,435		162,895
Assets sold under agreements to repurchase | Financing receivable
Carrying value:
Fair value of assets pledged to secure	$ 125,929		$ 131,025

Borrowings - Maturities of Outs

Borrowings - Maturities of Outstanding Advances Under Repurchase Agreements (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2019USD ($)
Mortgage loans sold under agreement to repurchase
Unpaid principal balance	$ 2,152,588
Weighted-average maturity (in months)	2 months 15 days
Within 30 days
Mortgage loans sold under agreement to repurchase
Unpaid principal balance	$ 518,972
Over 30 to 90 days
Mortgage loans sold under agreement to repurchase
Unpaid principal balance	1,334,389
Over 90 to 180 days
Mortgage loans sold under agreement to repurchase
Unpaid principal balance	44,227
Over one to two years
Mortgage loans sold under agreement to repurchase
Unpaid principal balance	$ 255,000

Borrowings - Mortgage Loans Sol

Borrowings - Mortgage Loans Sold Under Agreement to Repurchase by Counterparty (Details) - Assets sold under agreements to repurchase $ in Thousands	Mar. 31, 2019USD ($)
Credit Suisse First Boston Mortgage Capital LLC Tranche Two
Mortgage loans sold under agreement to repurchase
Amount at risk	$ 1,165,339
Credit Suisse First Boston Mortgage Capital LLC Tranche One
Mortgage loans sold under agreement to repurchase
Amount at risk	26,541
Deutsche Bank AG
Mortgage loans sold under agreement to repurchase
Amount at risk	90,911
Bank of America, N.A.
Mortgage loans sold under agreement to repurchase
Amount at risk	14,405
Morgan Stanley Bank
Mortgage loans sold under agreement to repurchase
Amount at risk	5,237
JP Morgan
Mortgage loans sold under agreement to repurchase
Amount at risk	4,360
BNP Paribas
Mortgage loans sold under agreement to repurchase
Amount at risk	16,691
Royal Bank of Canada
Mortgage loans sold under agreement to repurchase
Amount at risk	2,631
Citibank, N.A.
Mortgage loans sold under agreement to repurchase
Amount at risk	$ 4,828

Borrowings - Mortgage Loan Part

Borrowings - Mortgage Loan Participation and Sale Agreement (Details) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
During the period:
Total interest expense	$ 2,311,000	$ 1,727,000
Carrying value:
Mortgage loan participation and sale agreement secured by mortgage loan participation certificates	547,879,000		$ 532,251,000
Fair value of mortgage loans pledged to secure	574,518,000		555,001,000
Mortgage Loan Participation and Sale Agreement member
During the period:
Average balance	$ 236,667,000	$ 215,614,000
Short-term Debt, Weighted Average Interest Rate, over Time	3.68%	2.89%
Total interest expense	$ 2,311,000	$ 1,727,000
Carrying value:
Unpaid principal balance of mortgage loan participation and sale agreement secured by mortgage loan participation certificates	548,038,000		532,466,000
Unamortized issuance costs	(159,000)		(215,000)
Mortgage loan participation and sale agreement secured by mortgage loan participation certificates	$ 547,879		$ 532,251
Weighted average interest rate (as a percent)	3.75%		3.77%
Fair value of mortgage loans pledged to secure	$ 574,518,000		$ 555,001,000
Amortization of debt issuance costs	135,000	171,000
Maximum | Mortgage Loan Participation and Sale Agreement member
Carrying value:
Mortgage loan participation and sale agreement secured by mortgage loan participation certificates		$ 527,706,000
Mortgage loan participation and sale agreement secured by mortgage loan participation certificates	$ 548,038,000

Borrowings - Note Payable (Deta

Borrowings - Note Payable (Details) - USD ($)	Aug. 10, 2018	Feb. 28, 2018	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018	Nov. 01, 2018	Feb. 01, 2018
During the period:
Total interest expense			$ 17,995,000	$ 18,222,000
Carrying value:
Notes payable			1,292,736,000		$ 1,292,291,000
Notes payable
Repayments of notes payable				400,000,000
Debt issuance costs				3,400,000
Note Payable
During the period:
Average balance			$ 1,300,000,000	$ 979,868,000
Weighted-average interest rate (as a percent)			5.25%	5.63%
Total interest expense			$ 17,995,000	$ 18,222,000
Maximum daily amount outstanding			1,300,000,000	1,150,000,000
Carrying value:
Unpaid principal balance			1,300,000,000		1,300,000,000
Unamortized issuance costs			(7,264,000)		(7,709,000)
Notes payable			$ 1,292,736,000		$ 1,292,291,000
Weighted-average interest rate (as a percent)			5.24%		5.07%
Unused amount			$ 150,000,000		$ 150,000,000
Amortization of Financing Costs			700,000	4,200,000
Non-utilization fees			196,000	192,000
Notes payable
Debt issuance costs	$ 4,600,000
Note Payable | Revolving credit agreement
Short-term debt
Maximum loan amount						$ 150,000,000
Note Payable | LIBOR
Notes payable
Maximum loan amount	$ 650,000,000	$ 650,000,000
Description of variable rate	one-month LIBOR	one-month LIBOR
Interest rate spread	2.65%	2.85%
Note Payable | Credit Suisse AG
Short-term debt
Maximum loan amount							$ 400,000,000
Note Payable | Mortgage servicing rights
Carrying value:
Assets pledged to secure			2,675,704,000		2,807,333,000
Note Payable | Cash.
Carrying value:
Assets pledged to secure			93,372,000		108,174,000
Note Payable | Servicing advances
Carrying value:
Assets pledged to secure			147,435,000		162,895,000
Mortgage Loan Participation and Sale Agreement member
During the period:
Average balance			236,667,000	215,614,000
Carrying value:
Unamortized issuance costs			(159,000)		$ (215,000)
Amortization of Financing Costs			$ 135,000	$ 171,000

Borrowings - Obligations Under

Borrowings - Obligations Under Capital Lease (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Obligations Under Capital Lease
Average balance	$ 5,848	$ 18,703
Weighted average interest rate	4.50%	3.64%
Total interest expense	$ 66	$ 170
Unpaid principal balance	$ 5,091		$ 6,605
Weighted average interest rate	4.48%		4.46%
Furniture, fixtures, equipment and building improvements pledged to creditors	$ 15,254		$ 16,281
Capitalized software pledged to creditors	940		$ 1,017
Maximum
Obligations Under Capital Lease
Maximum daily amount outstanding	$ 6,605	$ 20,971

Borrowings - ESS (Details)

Borrowings - ESS (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
PMT
Issuances of excess servicing spread to PennyMac Mortgage Investment Trust:
Change in fair value	$ 4,051	$ (6,921)
Excess servicing spread financing
Roll forward of liabilities measured using Level 3 inputs on a recurring basis
Balance at the beginning of the quarter	216,110	236,534
Issuances of excess servicing spread to PennyMac Mortgage Investment Trust:
Accrual of interest	3,066	3,934
Repayment	(10,552)	(12,291)
Change in fair value	(4,051)	6,921
Balance at the end of the quarter	205,081	236,002
Excess servicing spread financing | PMT
Issuances of excess servicing spread to PennyMac Mortgage Investment Trust:
Issuances	508	904
Change in fair value	$ 4,051	$ (6,921)

Liability for Losses Under Re_3

Liability for Losses Under Representations and Warranties (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
During the year:
Balance at beginning of quarter	$ 21,155	$ 20,053
Provision for losses on mortgage loans sold resulting from sales of mortgage loans	1,067	1,492
Provision for losses on mortgage loans sold reduction in liability due to change in estimate	(4,210)	(1,113)
Incurred losses, net	(30)	(3)
Balance at end of quarter	17,982	20,429
Unpaid principal balance of mortgage loans subject to representations and warranties at end of quarter	$ 133,698,782	$ 127,056,220

Income Taxes - General (Details

Income Taxes - General (Details)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
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)	23.50%	8.30%

Commitments and Contingencies (

Commitments and Contingencies (Details) $ in Billions	Mar. 31, 2019USD ($)
Commitments and Contingencies.
Total commitments to purchase and fund mortgage loans	$ 3.8

Stockholders' Equity (Details)

Stockholders' Equity (Details) - Common Stock - USD ($) shares in Millions, $ in Millions	22 Months Ended
	Mar. 31, 2019	Jun. 30, 2017
Stockholders' Equity
Authorized stock repurchase amount		$ 50
Shares of common stock repurchased	13.9

Noncontrolling Interest (Detail

Noncontrolling Interest (Details) - USD ($) shares in Thousands, $ in Thousands	Nov. 01, 2018	Mar. 31, 2019	Mar. 31, 2018
Net income and the effects of changes in noncontrolling interest
Net income attributable to PennyMac Financial Services, Inc. common stockholders		$ 46,135	$ 16,619
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.			$ 14,859
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 (in shares)			748
New PFSI | Class A Unit
Noncontrolling Interest [Line Items]
Common stock conversion ratio (as a percent)	100.00%
Noncontrolling interest in Private National Mortgage Acceptance Company, LLC
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.			$ (14,859)

Net Gains on Mortgage Loans H_3

Net Gains on Mortgage Loans Held for Sale (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Cash loss:
Mortgage Loans	$ (41,242)	$ (181,801)
Hedging activities	(8,927)	104,396
Cash gain (loss), net of effects of cash hedging, on sale of mortgage loans held for sale	(50,169)	(77,405)
Non-cash gain:
Mortgage servicing rights and mortgage servicing liabilities resulting from mortgage loan sales	114,957	141,873
Provision for losses relating to representations and warranties on loans sold pursuant to mortgage loan sales	(1,067)	(1,492)
Provision for losses relating to representations and warranties on loans sold reduction in liability due to change in estimate	4,210	1,113
Change in fair value relating to mortgage loans and derivatives held at year end:
Interest rate lock commitments	16,727	(7,376)
Mortgage loans	(164)	18,964
Hedging derivatives	(25,741)	(16,649)
From non-affiliates	58,753	59,028
Recapture payable to PennyMac Mortgage Investment Trust	26,023	12,386
Net gains on mortgage loans held for sale at fair value	$ 84,776	$ 71,414

Net Interest Income (Details)

Net Interest Income (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Interest income:
Cash and short-term investments	$ 1,933	$ 608
Mortgage loans held for sale at fair value	31,343	26,607
Placement fees relating to custodial funds	23,261	13,424
Interest income, excluding related parties	56,537	40,639
Interest income	58,333	42,615
Interest expense:
Assets sold under agreements to repurchase	8,635	6,732
Mortgage loan participation purchase and sale agreements	2,311	1,727
Notes payable	17,995	18,222
Obligations under capital lease	66	170
Interest shortfall on repayments of mortgage loans serviced for Agency securitizations	4,311	4,830
Interest on mortgage loan impound deposits	1,159	1,130
Interest expense, non-affiliates	34,477	32,811
Interest expense	37,543	36,745
Net interest income	20,790	5,870
PMT
Interest income:
From PennyMac Mortgage Investment Trust	1,796	1,976
Interest expense:
To PennyMac Mortgage Investment Trust Excess servicing spread financing at fair value	3,066	3,934
Assets sold under agreements to repurchase
Interest expense:
Assets sold under agreements to repurchase	8,635	6,732
Incentives recorded	$ 9,300	$ 10,200

Earnings Per Share of Common _3

Earnings Per Share of Common Stock (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	Nov. 01, 2018	Mar. 31, 2019	Mar. 31, 2018
Basic earnings per share of common stock:
Net income attributable to common stockholders		$ 46,135	$ 16,619
Weighted-average common stock outstanding		77,653	23,832
Basic earnings per share of common stock (in dollars per share)		$ 0.59	$ 0.70
Diluted earnings per share of common stock:
Net income attributable to common stockholders		$ 46,135	$ 16,619
Net income attributable to dilutive stock-based compensation units			1,400
Effect of net income attributable to noncontrolling interest, net of tax			35,449
Net income attributable to common stockholders for diluted earnings per share		$ 46,135	$ 53,468
Weighted-average common stock outstanding applicable to basic earnings per share		77,653	23,832
Effect of dilutive shares:
Common shares issuable under stock-based compensation plan		$ 1,633	$ 2,947
PennyMac Class A units exchangeable to common stock			52,682
Weighted-average shares of common stock outstanding applicable to diluted earnings per share		79,286	79,461
Diluted earnings per share of common stock (in dollars per share)		$ 0.58	$ 0.67
Total anti-dilutive stock-based compensation units		2,046	306
Performance-based RSUs
Effect of dilutive shares:
Total anti-dilutive stock-based compensation units		1,279	134
Stock Options
Effect of dilutive shares:
Total anti-dilutive stock-based compensation units		706	172
Weighted-average exercise price of anti-dilutive stock options		$ 24.26	$ 24.40
Time-based RSUs
Effect of dilutive shares:
Total anti-dilutive stock-based compensation units		61
Class A Unit | New PFSI
Common stock conversion ratio (as a percent)	100.00%

Supplemental Cash Flow Inform_3

Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Cash paid for interest	$ 33,952	$ 40,227
Cash paid for income taxes, net	66	2
Non-cash investing activity:
Mortgage servicing rights resulting from mortgage loan sales	115,751	143,910
Mortgage servicing liabilities resulting from mortgage loan sales	794	2,037
Unsettled portion of MSR acquisitions	16,291	62
Operating lease right-of-use assets obtained in exchange for lease obligation	58,598
Non-cash financing activity:
Issuance of Excess servicing spread payable to PennyMac Mortgage Investment Trust pursuant to a recapture agreement	508	904
Issuance of Class A common stock and common stock in settlement of director fees	$ 86	$ 79

Regulatory Capital and Liquid_3

Regulatory Capital and Liquidity Requirements (Details) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2019	Dec. 31, 2015	Dec. 31, 2018
Fannie Mae / Freddie Mac - PLS
Regulatory Net Worth and Agency Capital Requirements
Net worth	$ 1,833,819,000		$ 1,788,430,000
Capital Requirement	561,020,000		514,089,000
Liquidity	287,089,000		271,802,000
Liquidity requirement	$ 77,292,000		$ 70,775,000
Tangible net worth / Total assets ratio actual	20.00%		21.00%
Tangible net worth / Total assets ratio requirement	6.00%		6.00%
Ginnie Mae - PLS
Regulatory Net Worth and Agency Capital Requirements
Net worth	$ 1,543,756,000		$ 1,535,826,000
Capital Requirement	819,028,000		733,342,000
Liquidity	287,089,000		271,802,000
Liquidity requirement	208,693,000		189,592,000
Ginnie Mae - PennyMac
Regulatory Net Worth and Agency Capital Requirements
Net worth	1,802,129,000		1,786,430,000
Capital Requirement	900,931,000		806,676,000
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	1,543,756,000		1,535,826,000
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 (Details)

Segments (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2019USD ($)segment	Mar. 31, 2018USD ($)	Dec. 31, 2018USD ($)
Segments and Related Information
Number of segments | segment	3
Revenues:
Net mortgage loan servicing fees	$ 80,571	$ 116,789
Net gains on mortgage loans held for sale at fair value	84,776	71,414
Mortgage loan origination fees	23,930	24,563
Net interest income (expense):
Interest income	58,333	42,615
Interest expense, before non-segment activities	37,543	36,745
Net interest expense, before non-segment activities	20,790	5,870
Management fees	7,248	5,775
Other	2,816	2,026
Total net revenues, before non-segment activities	247,705	238,201
Expenses	187,414	165,205
Income before provision for income taxes	60,291	72,996
Assets:
Segment assets at year end	7,819,000		$ 7,478,573
PMT
Revenues:
Fulfillment fees from PennyMac Mortgage Investment Trust	27,574	11,944
Net interest income (expense):
Management fees	7,248	5,696
Assets:
Receivable	$ 29,951		$ 33,464
Investment Funds
Net interest income (expense):
Management fees		79
Carried Interest from Investment Funds		(180)
Mortgage banking
Segments and Related Information
Number of segments | segment	2
Operating segment
Assets:
Segment assets at year end	$ 7,819,000	6,894,177
Working capital		8,700
Operating segment | Investment management
Net interest income (expense):
Interest expense, before non-segment activities	7	16
Net interest expense, before non-segment activities	(7)	(16)
Management fees	7,248	5,775
Other	1,563	1,315
Total net revenues, before non-segment activities	8,804	6,894
Expenses	6,682	5,943
Income before provision for income taxes	2,122	951
Assets:
Segment assets at year end	17,719	11,877
Operating segment | Investment management | Investment Funds
Net interest income (expense):
Carried Interest from Investment Funds		(180)
Operating segment | Mortgage banking
Revenues:
Net mortgage loan servicing fees	80,571	116,789
Net gains on mortgage loans held for sale at fair value	84,776	71,414
Mortgage loan origination fees	23,930	24,563
Net interest income (expense):
Interest income	58,333	42,615
Interest expense, before non-segment activities	37,536	36,729
Net interest expense, before non-segment activities	20,797	5,886
Other	1,253	711
Total net revenues, before non-segment activities	238,901	231,307
Expenses	180,732	159,262
Income before provision for income taxes	58,169	72,045
Assets:
Segment assets at year end	7,801,281	6,882,300
Operating segment | Mortgage banking | PMT
Revenues:
Fulfillment fees from PennyMac Mortgage Investment Trust	27,574	11,944
Operating segment | Mortgage banking Production
Revenues:
Net gains on mortgage loans held for sale at fair value	66,721	36,198
Mortgage loan origination fees	23,930	24,563
Net interest income (expense):
Interest income	14,369	14,248
Interest expense, before non-segment activities	3,915	2,102
Net interest expense, before non-segment activities	10,454	12,146
Other	488	316
Total net revenues, before non-segment activities	129,167	85,167
Expenses	82,161	67,997
Income before provision for income taxes	47,006	17,170
Assets:
Segment assets at year end	2,501,468	2,251,354
Operating segment | Mortgage banking Production | PMT
Revenues:
Fulfillment fees from PennyMac Mortgage Investment Trust	27,574	11,944
Operating segment | Mortgage banking Servicing
Revenues:
Net mortgage loan servicing fees	80,571	116,789
Net gains on mortgage loans held for sale at fair value	18,055	35,216
Net interest income (expense):
Interest income	43,964	28,367
Interest expense, before non-segment activities	33,621	34,627
Net interest expense, before non-segment activities	10,343	(6,260)
Other	765	395
Total net revenues, before non-segment activities	109,734	146,140
Expenses	98,571	91,265
Income before provision for income taxes	11,163	54,875
Assets:
Segment assets at year end	$ 5,299,813	$ 4,630,946