PennyMac Financial Services (PFSI) 10-Q 6 Aug 19 2019 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2019	Aug. 05, 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	Jun. 30, 2019
Entity Interactive Data Current	Yes
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		78,607,436
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q2

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
ASSETS
Cash (includes $184,278 and $108,174 pledged to creditors)	$ 231,388	$ 155,289
Short-term investments at fair value	75,542	117,824
Loans held for sale at fair value (includes $3,475,090 and $2,478,858 pledged to creditors)	3,506,406	2,521,647
Derivative assets	168,116	96,347
Servicing advances, net (includes valuation allowance of $66,650 and $70,582; $151,384 and $162,895 pledged to creditors)	271,534	313,197
Mortgage servicing rights at fair value (includes $2,710,342 and $2,807,333 pledged to creditors)	2,720,335	2,820,612
Real estate acquired in settlement of loans	8,160	2,250
Operating lease right-of-use assets	53,977
Furniture, fixtures, equipment and building improvements, net (includes $0 and $16,281 pledged to creditors)	33,373	33,374
Capitalized software, net (includes $15,097 and $1,017 pledged to creditors)	55,642	39,748
Loans eligible for repurchase	1,007,435	1,102,840
Other	111,420	109,559
Total assets	8,398,376	7,478,573
LIABILITIES
Assets sold under agreements to repurchase	2,747,084	1,933,859
Mortgage loans participation purchase and sale agreements	523,177	532,251
Notes payable	1,293,180	1,292,291
Obligations under capital lease	28,295	6,605
Derivative liabilities	15,952	3,064
Operating lease liabilities	73,461
Accounts payable and accrued expenses	151,504	156,212
Mortgage servicing liabilities at fair value	12,948	8,681
Income taxes payable	441,336	400,546
Liability for loans eligible for repurchase	1,007,435	1,102,840
Liability for losses under representations and warranties	18,709	21,155
Total liabilities	6,619,379	5,824,782
Commitments and contingencies - Note 14
STOCKHOLDERS' EQUITY
Additional paid-in capital	1,317,023	1,310,648
Retained earnings	461,966	343,135
Total stockholders' equity	1,778,997	1,653,791
Total liabilities and stockholders' equity	8,398,376	7,478,573
Common Stock
STOCKHOLDERS' EQUITY
Common stock - authorized 200,000,000 shares of $0.0001 par value; issued and outstanding, 78,304,899 and 77,494,332 shares respectively	8	8
PMT
ASSETS
Assets purchased from PennyMac Mortgage Investment Trust under agreements to resell pledged to creditors	118,716	131,025
Investment in PennyMac Mortgage Investment Trust at fair value	1,637	1,397
Receivable, from affiliates	34,695	33,464
LIABILITIES
Excess servicing spread financing payable to PennyMac Mortgage Investment Trust at fair value	194,156	216,110
Payable to affiliates	65,605	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	Jun. 30, 2019	Dec. 31, 2018
Cash pledged to creditors	$ 184,278	$ 108,174
Mortgage loans held for sale, pledged to creditors	3,475,090	2,478,858
Servicing advances, net, valuation allowance	66,650	70,582
Servicing advances pledged to creditors	151,384	162,895
Mortgage servicing rights, at fair value	2,710,342	2,807,333
Furniture, fixtures, equipment and building improvements pledged to creditors	23,971	16,281
Capitalized software pledged to creditors	$ 15,097	$ 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	78,304,899	77,494,332
Common stock, shares outstanding	78,304,899	77,494,332

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Loan servicing fees
From non-affiliates and affiliates	$ 180,753	$ 138,871	$ 347,543	$ 274,354
Other	26,008	13,637	48,025	27,808
Loan servicing fees	218,329	161,942	417,706	322,615
Change in fair value of mortgage servicing rights and mortgage servicing liabilities	(162,799)	(47,257)	(285,656)	(84,220)
Change in fair value of excess servicing spread payable to PennyMac Mortgage Investment Trust	(159,195)	(48,253)	(278,001)	(92,137)
Net loan servicing fees	59,134	113,689	139,705	230,478
Net gains on loans held for sale at fair value:
From non-affiliates	111,222	46,019	169,975	105,047
Net gains on loans held for sale at fair value	147,533	60,946	232,309	132,360
Loan origination fees from non-affiliates	33,822	22,886	55,509	46,241
Loan origination fees	36,924	24,428	60,854	48,991
Interest income:
From non-affiliates	69,208	53,206	125,745	93,845
Interest income	70,900	55,104	129,233	97,719
Interest expense:
To non-affiliates	50,157	28,706	84,634	61,517
Interest expense	52,924	32,616	90,467	69,361
Net interest income	17,976	22,488	38,766	28,358
Management fees, net:
Management fees	8,832	5,664	16,080	11,439
Result of real estate acquired in settlement of loans	743	13	1,017	(15)
Other	2,126	2,571	4,476	4,443
Total net revenue	302,977	244,298	550,682	482,499
Expenses
Compensation	114,717	98,540	221,317	200,553
Servicing	29,008	28,490	59,301	54,789
Loan origination	23,071	5,144	37,568	7,259
Technology	16,080	15,154	32,046	29,774
Occupancy and equipment	7,042	6,507	13,818	12,884
Professional services	6,313	5,587	12,194	11,325
Other	7,156	10,178	14,557	18,221
Total expenses	203,387	169,600	390,801	334,805
Income before provision for income taxes	99,590	74,698	159,881	147,694
Provision for income taxes	26,894	6,293	41,050	12,363
Net income	72,696	68,405	118,831	135,331
Less: Net income attributable to noncontrolling interest		50,568		100,875
Net income attributable to PennyMac Financial Services, Inc. common stockholders	$ 72,696	$ 17,837	$ 118,831	$ 34,456
Earnings per share
Basic (in dollars per share)	$ 0.93	$ 0.71	$ 1.52	$ 1.41
Diluted (in dollars per share)	$ 0.92	$ 0.70	$ 1.50	$ 1.38
Weighted-average shares outstanding
Basic (in shares)	78,335	24,959	77,996	24,399
Diluted (in shares)	79,318	78,825	79,301	78,947
PMT
Loan servicing fees
From non-affiliates and affiliates	$ 11,568	$ 9,431	$ 22,138	$ 20,450
Changes in fair value included in income	3,604	(996)	7,655	(7,917)
Net gains on loans held for sale at fair value:
From PennyMac Mortgage Investment Trust	36,311	14,927	62,334	27,313
Loan origination fees from PennyMac Mortgage Investment Trust	3,102	1,542	5,345	2,750
Fulfillment fees from PennyMac Mortgage Investment Trust	29,590	14,559	57,164	26,503
Interest income:
From PennyMac Mortgage Investment Trust	1,692	1,898	3,488	3,874
Interest expense:
To PennyMac Mortgage Investment Trust	2,767	3,910	5,833	7,844
Management fees, net:
Management fees	8,832	5,728	16,080	11,424
Change in fair value of investment in and dividends received from affiliate	$ 119	108	$ 311	290
Investment Funds
Loan servicing fees
From non-affiliates and affiliates		3		3
Management fees, net:
Management fees		(64)		15
Carried Interest from Investment Funds		$ (168)		$ (348)

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	Common Stock	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				34,456	100,875		135,331
Stock and unit-based compensation			7,728		8,340		16,068
Stock and unit-based compensation (in shares)	230
Issuance of common stock in settlement of director fees			51		109		160
Exchange of Class A units of Private National Mortgage Acceptance Company, LLC to Class A common stock of PennyMac Financial Services, Inc.	$ 1		28,124		(28,125)		$ 28,124
Exchange of Class A units of Private National Mortgage Acceptance Company, LLC to Class A common stock of PennyMac Financial Services, Inc. (in shares)	1,485						1,485
Repurchase of common stock			(4,826)			$ (4,826)	$ (4,826)
Repurchase of common stock (in shares)	(236)					(236)
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.			(5,239)				(5,239)
Balance at Jun. 30, 2018	$ 3		229,941	299,951	1,332,049		1,861,944
Balance (in shares) at Jun. 30, 2018	25,009
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
Changes in stockholders' equity
Net income				17,837	50,568		68,405
Stock and unit-based compensation			2,537		4,105		6,642
Stock and unit-based compensation (in shares)	33
Issuance of common stock in settlement of director fees			27		54		81
Exchange of Class A units of Private National Mortgage Acceptance Company, LLC to Class A common stock of PennyMac Financial Services, Inc.	$ 1		13,265		(13,266)		$ 13,265
Exchange of Class A units of Private National Mortgage Acceptance Company, LLC to Class A common stock of PennyMac Financial Services, Inc. (in shares)	934						737
Repurchase of common stock			(4,826)			$ (4,826)	$ (4,826)
Repurchase of common stock (in shares)	(236)					(236)
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.			(2,557)				(2,557)
Balance at Jun. 30, 2018	$ 3		229,941	299,951	$ 1,332,049		1,861,944
Balance (in shares) at Jun. 30, 2018	25,009
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				118,831			118,831
Stock and unit-based compensation			7,295				7,295
Stock and unit-based compensation (in shares)		856
Issuance of common stock in settlement of director fees			136				136
Issuance of common stock in settlement of director fees (in shares)		6
Repurchase of common stock			(1,056)			$ (1,056)	(1,056)
Repurchase of common stock (in shares)		(51)				(51)
Balance at Jun. 30, 2019		$ 8	1,317,023	461,966			1,778,997
Balance (in shares) at Jun. 30, 2019		78,305
Balance at Mar. 31, 2019		$ 8	1,311,914	389,270			1,701,192
Balance (in shares) at Mar. 31, 2019		78,318
Changes in stockholders' equity
Net income				72,696			72,696
Stock and unit-based compensation			6,115				6,115
Stock and unit-based compensation (in shares)		36
Issuance of common stock in settlement of director fees			50				50
Issuance of common stock in settlement of director fees (in shares)		2
Repurchase of common stock			(1,056)			$ (1,056)	(1,056)
Repurchase of common stock (in shares)		(51)				(51)
Balance at Jun. 30, 2019		$ 8	$ 1,317,023	$ 461,966			$ 1,778,997
Balance (in shares) at Jun. 30, 2019		78,305

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Cash flow from operating activities
Net income	$ 118,831	$ 135,331
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	278,001	92,137
Net gains on loans held for sale at fair value	(232,309)	(132,360)
Capitalization of interest on loans held for sale at fair value	(36,550)	(39,390)
Accrual of interest on excess servicing spread financing	5,833	7,844
Amortization of net debt issuance (premiums) and costs	(7,701)	(13,385)
Results of real estate acquired in settlement of loans	(1,017)	15
Stock based compensation expense	10,183	12,235
Provision for servicing advance losses	8,375	12,097
Depreciation and amortization	6,750	5,647
Amortization of right-to-use assets	4,736
Origination of loans held for sale	(4,526,432)	(2,518,992)
Purchase of loans from Ginnie Mae securities and early buyout investors for modification and subsequent sale	(1,995,933)	(2,002,582)
Sale and principal payments of loans held for sale to non-affiliates	21,186,748	22,832,809
Repurchase of loans subject to representations and warranties	(11,312)	(12,974)
Settlement of repurchase agreement derivatives	22,572	7,478
Decrease in servicing advances	26,373	47,980
Sale of real estate acquired in settlement of loans	4,066	2,130
(Increase) decrease in other assets	(1,471)	16,031
Decrease in operating lease liabilities	(6,004)
Increase in accounts payable and accrued expenses	5,715	3,326
Net cash (used in) provided by operating activities	(881,945)	595,898
Cash flow from investing activities
Decrease in short-term investments	42,282	71,509
Net settlement of derivative financial instruments used for hedging	327,544	(126,918)
Purchase of mortgage servicing rights	(217,942)	(30,129)
Purchase of furniture, fixtures, equipment and leasehold improvements	(4,405)	(4,321)
Acquisition of capitalized software	(18,238)	(7,664)
Decrease (increase) in margin deposits	18,889	(3,774)
Net cash provided by (used in) investing activities	160,439	(95,751)
Cash flow from financing activities
Sale of assets under agreements to repurchase	20,955,022	20,763,584
Repurchase of assets sold under agreements to repurchase	(20,141,847)	(21,319,387)
Issuance of mortgage loan participation purchase and sale certificates	11,375,849	12,486,542
Repayment of mortgage loan participation purchase and sale certificates	(11,385,036)	(12,485,880)
Advances on notes payable		650,000
Repayments of notes payable		(400,000)
Advances of obligations under capital lease	25,123
Repayments of obligations under capital lease	(3,433)	(7,939)
Repayment of excess servicing spread financing	(21,082)	(24,309)
Payment of debt issuance costs	(3,064)	(9,788)
Issuance of common stock pursuant to exercise of stock options	1,746	3,833
Repurchase of common stock	(1,056)	(4,826)
Payment of withholding taxes relating to stock-based compensation	(4,634)
Net cash provided by (used in) financing activities	797,588	(348,170)
Net increase in cash and restricted cash	76,082	151,977
Cash and restricted cash at beginning of period	155,924	38,173
Cash and restricted cash at end of period	232,006	190,150
Cash	231,388	189,663
Restricted cash included in Other assets	618	487
Investment Funds
Adjustments to reconcile net income to net cash used in operating activities:
Carried Interest from Investment Funds		348
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	(240)	(219)
Purchase of loans held for sale from PennyMac Mortgage Investment Trust	(17,956,971)	(19,267,316)
Sale of loans held for sale to Penny Mac Mortgage Investment Trust	2,218,721	1,427,637
(Increase) decrease in receivable from affiliates	(3,092)	5,873
Decrease in payable to affiliate	(40,607)	(38,580)
Increase in income taxes payable	40,790	12,778
Cash flow from investing activities
Net change in assets purchased from PMT under agreement to resell	$ 12,309	$ 5,546

Organization

Organization	6 Months Ended
	Jun. 30, 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 and home equity loan production and loan servicing. PennyMac’s investment management activities and a portion of its loan servicing activities are conducted on behalf of an investment vehicle that invests in residential mortgage and home equity 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 (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 and home equity loans on behalf of non-affiliates and PMT, purchases, originates and sells new prime credit quality residential mortgage and home equity 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 the 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	6 Months Ended
	Jun. 30, 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. 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. 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 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 reflects 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 together with the lease as a single lease component. Detailed lease disclosures are included in Note 10 ‒Leases .

Concentration of Risk

Concentration of Risk	6 Months Ended
	Jun. 30, 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 loan servicing fees, gains on loans held for sale, loan origination fees, fulfillment fees, change in fair value of excess servicing spread financing (“ESS”), net interest, management fees, and change in fair value of investment and dividend received from PMT) totaled 31% and 18% of total net revenue for the quarters ended June 30, 2019 and 2018, respectively, and 31% and 16% for the six months ended June 30, 2019 and 2018, respectively.

Transactions with Affiliates

Transactions with Affiliates	6 Months Ended
	Jun. 30, 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 June 30, Six months ended June 30, 2019 2018 2019 2018 (in thousands) Net gains on loans held for sale at fair value: Net gains on loans held for sale to PMT $ 37,719 $ 15,863 $ 64,865 $ 29,674 Mortgage servicing rights and excess servicing spread recapture incurred (1,408) (936) (2,531) (2,361) $ 36,311 $ 14,927 $ 62,334 $ 27,313 Sale of loans held for sale to PMT $ 1,334,211 $ 646,311 $ 2,218,721 $ 1,427,637 Fulfillment fee revenue $ 29,590 $ 14,559 $ 57,164 $ 26,503 Unpaid principal balance of loans fulfilled for PMT subject to fulfillment fees $ 10,741,078 $ 5,396,370 $ 18,876,630 $ 9,622,001 Sourcing fees paid to PMT $ 3,155 $ 2,891 $ 5,149 $ 5,532 Unpaid principal balance of loans purchased from PMT $ 10,514,390 $ 9,639,495 $ 17,161,728 $ 18,487,368 Tax service fees earned from PMT included in Loan origination fees $ 3,102 $ 1,542 $ 5,345 $ 2,750 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 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 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 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 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 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 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 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 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 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 loan servicing and property management fees earned from PMT: Quarter ended June 30, Six months ended June 30, 2019 2018 2019 2018 (in thousands) Loans acquired for sale at fair value $ 385 $ 245 $ 624 $ 423 Loans at fair value 617 1,172 1,080 4,257 Mortgage servicing rights 10,566 8,014 20,434 15,770 $ 11,568 $ 9,431 $ 22,138 $ 20,450 Property management fees received from PMT included in Other income $ 102 $ 112 $ 225 $ 211 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 June 30, Six months ended June 30, 2019 2018 2019 2018 (in thousands) Base management $ 6,839 $ 5,728 $ 12,948 $ 11,424 Performance incentive 1,993 — 3,132 — $ 8,832 $ 5,728 $ 16,080 $ 11,424 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 June 30, Six months ended June 30, 2019 2018 2019 2018 (in thousands) Reimbursement of: Common overhead incurred by the Company included in Other revenue $ 1,276 $ 1,176 $ 2,512 $ 2,177 Compensation included in Other revenue 120 120 240 240 Expenses incurred on PMT's (the Company's) behalf, net 489 (514) 1,059 59 $ 1,885 $ 782 $ 3,811 $ 2,476 Payments and settlements during the period (1) $ 28,031 $ 15,957 $ 43,220 $ 23,615 (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 $144,000 and $219,000 in reimbursement of underwriting fees from PMT during the quarter and six months ended June 30, 2019, respectively. 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 June 30, Six months ended June 30, 2019 2018 2019 2018 (in thousands) Interest income relating to Assets purchased from PennyMac Mortgage Investment Trust under agreements to resell $ 1,692 $ 1,898 $ 3,488 $ 3,874 Common shares of beneficial interest of PennyMac Mortgage Investment Trust: Dividends received $ 35 $ 36 $ 71 $ 71 Change in fair value of investment 84 72 240 219 $ 119 $ 108 $ 311 $ 290 June 30, December 31, 2019 2018 (in thousands) Assets purchased from PennyMac Mortgage Investment Trust under agreements to resell $ 118,716 $ 131,025 Common shares of beneficial interest of PennyMac Mortgage Investment Trust: Fair value $ 1,637 $ 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 issued, 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 equal 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 equal 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 June 30, Six months ended June 30, 2019 2018 2019 2018 (in thousands) Excess servicing spread financing: Issuance pursuant to recapture agreement $ 442 $ 580 $ 950 $ 1,484 Repayment $ 10,530 $ 12,018 $ 21,082 $ 24,309 Gain (loss) recognized $ 3,604 $ (996) $ 7,655 $ (7,917) Interest expense $ 2,767 $ 3,910 $ 5,833 $ 7,844 Recapture incurred pursuant to refinancings by the Company of mortgage loans subject to excess servicing spread financing included in Net gains on loans held for sale at fair value $ 393 $ 524 $ 882 $ 1,354 June 30, December 31, 2019 2018 (in thousands) Excess servicing spread financing at fair value $ 194,156 $ 216,110 Receivable from and Payable to PMT Amounts receivable from and payable to PMT are summarized below: June 30, December 31, 2019 2018 (in thousands) Receivable from PMT: Fulfillment fees $ 10,454 $ 10,006 Management fees 8,526 6,559 Allocated expenses and expenses incurred on PMT's behalf 8,335 9,066 Servicing fees 4,030 4,841 Correspondent production fees 2,662 2,071 Conditional Reimbursement 582 801 Interest on assets purchased under agreements to resell 106 120 $ 34,695 $ 33,464 Payable to PMT: Deposits made by PMT to fund servicing advances $ 64,120 $ 100,554 Mortgage servicing rights recapture payable 112 179 Other 1,373 3,898 $ 65,605 $ 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 of 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 Reorganization 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 June 30, 2019 and December 31, 2018. The Company did not make any payments under the tax receivable agreement during the six months ended June 30, 2019 and 2018.

Loan Sales and Servicing Activi

Loan Sales and Servicing Activities	6 Months Ended
	Jun. 30, 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 loans in the secondary mortgage market without recourse for credit losses. However, the Company maintains continuing involvement with the loans in the form of servicing arrangements and the liability under representations and warranties it makes to purchasers and insurers of the loans. The following table summarizes cash flows between the Company and transferees as a result of the sale of loans in transactions where the Company maintains continuing involvement with the loans as servicer: Quarter ended June 30, Six months ended June 30, 2019 2018 2019 2018 (in thousands) Cash flows: Sales proceeds $ 12,650,318 $ 11,729,024 $ 21,186,748 $ 22,832,809 Servicing fees received (1) $ 140,416 $ 117,818 $ 277,564 $ 230,909 Net recoveries of servicing advances $ (8,012) $ (14,082) $ (32,188) $ (24,719) (1) Net of guarantee fees paid to the Agencies. The following table summarizes unpaid principal balance (the “UPB”) of the loans sold by the Company in which it maintains continuing involvement: June 30, December 31, 2019 2018 (in thousands) Unpaid principal balance of loans outstanding $ 153,688,804 $ 145,224,596 Delinquencies: 30-89 days $ 6,892,489 $ 6,222,864 90 days or more: Not in foreclosure $ 2,322,270 $ 2,208,083 In foreclosure $ 664,870 $ 720,894 Foreclosed $ 21,405 $ 24,243 Bankruptcy $ 1,178,689 $ 970,329 The following tables summarize the UPB of the Company’s loan servicing portfolio: June 30, 2019 Contract Servicing servicing and Total rights owned subservicing loans serviced (in thousands) Investor: Non-affiliated entities: Originated $ 153,688,804 $ — $ 153,688,804 Purchased 68,308,793 — 68,308,793 221,997,597 — 221,997,597 PennyMac Mortgage Investment Trust — 109,131,225 109,131,225 Loans held for sale 3,342,187 — 3,342,187 $ 225,339,784 $ 109,131,225 $ 334,471,009 Subserviced for the Company (1) $ 290,071 $ — $ 290,071 Delinquent loans: 30 days $ 7,697,720 $ 640,344 $ 8,338,064 60 days 2,034,567 117,182 2,151,749 90 days or more: Not in foreclosure 3,172,188 208,449 3,380,637 In foreclosure 942,838 87,462 1,030,300 Foreclosed 31,689 137,518 169,207 $ 13,879,002 $ 1,190,955 $ 15,069,957 Bankruptcy $ 1,737,309 $ 120,884 $ 1,858,193 Custodial funds managed by the Company (2) $ 5,366,007 $ 1,894,889 $ 7,260,896 (1) Certain of the loans for which the Company has purchased the MSRs are subserviced on the Company’s behalf by other 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 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 loans’ borrowers and investors, which are included in Interest income in the Company’s consolidated statements of income. December 31, 2018 Contract Servicing servicing and Total 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 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 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 loans for which the Company has purchased the MSRs are subserviced on the Company’s behalf by other 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 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 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 loans included in the Company’s loan servicing portfolio for the top five and all other states as measured by UPB: June 30, December 31, State 2019 2018 (in thousands) California $ 54,882,769 $ 51,377,441 Florida 26,270,860 22,650,926 Texas 25,589,761 23,648,042 Virginia 20,255,676 19,011,950 Maryland 15,300,464 13,774,011 All other states 192,171,479 168,831,502 $ 334,471,009 $ 299,293,872

Fair Value

Fair Value	6 Months Ended
	Jun. 30, 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: June 30, 2019 Level 1 Level 2 Level 3 Total (in thousands) Assets: Short-term investments $ 75,542 $ — $ — $ 75,542 Loans held for sale at fair value — 3,288,408 217,998 3,506,406 Derivative assets: Interest rate lock commitments — — 113,311 113,311 Repurchase agreement derivatives — — 16,015 16,015 Forward purchase contracts — 70,300 — 70,300 Forward sales contracts — 5,494 — 5,494 MBS put options — 8,092 — 8,092 MBS call options — 8,320 — 8,320 Put options on interest rate futures purchase contracts 2,674 — — 2,674 Call options on interest rate futures purchase contracts 19,186 — — 19,186 Total derivative assets before netting 21,860 92,206 129,326 243,392 Netting — — — (75,276) Total derivative assets 21,860 92,206 129,326 168,116 Mortgage servicing rights at fair value — — 2,720,335 2,720,335 Investment in PennyMac Mortgage Investment Trust 1,637 — — 1,637 $ 99,039 $ 3,380,614 $ 3,067,659 $ 6,472,036 Liabilities: Excess servicing spread financing payable to PennyMac Mortgage Investment Trust at fair value $ — $ — $ 194,156 $ 194,156 Derivative liabilities: Interest rate lock commitments — — 1,535 1,535 Forward purchase contracts — 6,826 — 6,826 Forward sales contracts — 42,745 — 42,745 Total derivative liabilities before netting — 49,571 1,535 51,106 Netting — — — (35,154) Total derivative liabilities — 49,571 1,535 15,952 Mortgage servicing liabilities at fair value — — 12,948 12,948 $ — $ 49,571 $ 208,639 $ 223,056 December 31, 2018 Level 1 Level 2 Level 3 Total (in thousands) Assets: Short-term investments $ 117,824 $ — $ — $ 117,824 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 Mortgage servicing rights at fair value — — 2,820,612 2,820,612 Investment in PennyMac Mortgage Investment Trust 1,397 — — 1,397 $ 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 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 roll forwards of these items for each of the quarter and six month periods ended June 30, 2019 and 2018: Quarter ended June 30, 2019 Net interest Repurchase Mortgage Loans held rate lock agreement servicing Assets for sale commitments (1) derivatives rights Total (in thousands) Balance, March 31, 2019 $ 455,533 $ 66,065 $ 24,632 $ 2,905,090 $ 3,451,320 Purchases (purchase adjustments) and issuances, net 891,146 119,880 3,662 (373) 1,014,315 Sales and repayments (656,033) — (11,136) — (667,169) Mortgage servicing rights resulting from loan sales — — — 183,331 183,331 Changes in fair value included in income arising from: Changes in instrument-specific credit risk (186) — — — (186) Other factors — 96,773 (1,143) (367,713) (272,083) (186) 96,773 (1,143) (367,713) (272,269) Transfers from Level 3 to Level 2 (471,599) — — — (471,599) Transfers to real estate acquired in settlement of loans (863) — — — (863) Transfers of interest rate lock commitments to loans held for sale — (170,942) — — (170,942) Balance, June 30, 2019 $ 217,998 $ 111,776 $ 16,015 $ 2,720,335 $ 3,066,124 Changes in fair value recognized during the quarter relating to assets still held at June 30, 2019 $ (3,911) $ 111,776 $ 244 $ (367,713) $ (259,604) (1) For the purpose of this table, the IRLC asset and liability positions are shown net. Quarter ended June 30, 2019 Excess servicing Mortgage spread servicing Liabilities financing liabilities Total (in thousands) Balance, March 31, 2019 $ 205,081 $ 7,844 $ 212,925 Issuance of excess servicing spread financing pursuant to a recapture agreement with PennyMac Mortgage Investment Trust 442 — 442 Accrual of interest 2,767 — 2,767 Repayments (10,530) — (10,530) Mortgage servicing liabilities resulting from loan sales — 6,838 6,838 Changes in fair value included in income (3,604) (1,734) (5,338) Balance, June 30, 2019 $ 194,156 $ 12,948 $ 207,104 Changes in fair value recognized during the quarter relating to liabilities still outstanding at June 30, 2019 $ (3,604) $ (1,734) $ (5,338) Quarter ended June 30, 2018 Net interest Repurchase Mortgage Loans held rate lock agreement servicing Assets for sale commitments (1) derivatives rights Total (in thousands) Balance, March 31, 2018 $ 460,399 $ 50,896 $ 20,974 $ 2,354,489 $ 2,886,758 Purchases and issuances, net 824,592 50,330 12,970 2,523 890,415 Sales and repayments (286,433) — (7,471) — (293,904) Mortgage servicing rights resulting from loan sales — — — 155,694 155,694 Changes in fair value included in income arising from: Changes in instrument-specific credit risk 3,727 — — — 3,727 Other factors — 5,590 (692) (26,549) (21,651) 3,727 5,590 (692) (26,549) (17,924) Transfers from Level 3 to Level 2 (665,298) — — — (665,298) Transfers to real estate acquired in settlement of loans (2,821) — — — (2,821) Transfers of interest rate lock commitments to loans held for sale — (51,127) — — (51,127) Balance, June 30, 2018 $ 334,166 $ 55,689 $ 25,781 $ 2,486,157 $ 2,901,793 Changes in fair value recognized during the quarter relating to assets still held at June 30, 2018 $ (3,584) $ 55,689 $ — $ (26,549) $ 25,556 (1) For the purpose of this table, the IRLC asset and liability positions are shown net. Quarter ended June 30, 2018 Excess servicing Mortgage spread servicing Liabilities financing liabilities Total (in thousands) Balance, March 31, 2018 $ 236,002 $ 12,063 $ 248,065 Issuance of excess servicing spread financing pursuant to a recapture agreement with PennyMac Mortgage Investment Trust 580 — 580 Accrual of interest 3,910 — 3,910 Repayments (12,018) — (12,018) Mortgage servicing liabilities resulting from loan sales — 1,770 1,770 Changes in fair value included in income 996 (3,580) (2,584) Balance, June 30, 2018 $ 229,470 $ 10,253 $ 239,723 Changes in fair value recognized during the quarter relating to liabilities still outstanding at June 30, 2018 $ 996 $ (3,580) $ (2,584) Six months ended June 30, 2019 Net interest Repurchase Mortgage Loans held rate lock agreement servicing Assets for sale commitments (1) derivatives rights Total (in thousands) Balance, December 31, 2018 $ 260,008 $ 49,338 $ 26,770 $ 2,820,612 $ 3,156,728 Purchases and issuances, net 1,675,408 176,863 13,517 227,399 2,093,187 Sales and repayments (832,335) — (22,572) — (854,907) Mortgage servicing rights resulting from loan sales — — — 299,082 299,082 Changes in fair value included in income arising from: Changes in instrument-specific credit risk (6,277) — — — (6,277) Other factors — 156,751 (1,700) (626,758) (471,707) (6,277) 156,751 (1,700) (626,758) (477,984) Transfers from Level 3 to Level 2 (876,762) — — — (876,762) Transfers to real estate acquired in settlement of loans (2,044) — — — (2,044) Transfers of interest rate lock commitments to loans held for sale — (271,176) — — (271,176) Balance, June 30, 2019 $ 217,998 $ 111,776 $ 16,015 $ 2,720,335 $ 3,066,124 Changes in fair value recognized during the period relating to assets still held at June 30, 2019 $ (4,380) $ 111,776 $ 244 $ (626,758) $ (519,118) (1) For the purpose of this table, the IRLC asset and liability positions are shown net. Six months ended June 30, 2019 Excess servicing Mortgage spread servicing Liabilities financing liabilities Total (in thousands) 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 950 — 950 Accrual of interest 5,833 — 5,833 Repayments (21,082) — (21,082) Mortgage servicing liabilities resulting from loan sales — 7,632 7,632 Changes in fair value included in income (7,655) (3,365) (11,020) Balance, June 30, 2019 $ 194,156 $ 12,948 $ 207,104 Changes in fair value recognized during the period relating to liabilities still outstanding at June 30, 2019 $ (7,655) $ (3,365) $ (11,020) Six months ended June 30, 2018 Net interest Repurchase Mortgage Loans held rate lock agreement servicing Assets for sale commitments (1) derivatives rights Total (in thousands) 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 1,471,861 115,928 23,721 30,129 1,641,639 Sales and repayments (890,527) — (7,478) — (898,005) Mortgage servicing rights resulting from loan sales — — — 299,604 299,604 Changes in fair value included in income arising from: Changes in instrument-specific credit risk (5,028) — — — (5,028) Other factors — (39,323) (1,118) 35,988 (4,453) (5,028) (39,323) (1,118) 35,988 (9,481) Transfers from Level 3 to Level 2 (1,021,530) — — — (1,021,530) Transfers to real estate acquired in settlement of loans (2,821) — — — (2,821) Transfers of interest rate lock commitments to loans held for sale — (79,188) — — (79,188) Balance, June 30, 2018 $ 334,166 $ 55,689 $ 25,781 $ 2,486,157 $ 2,901,793 Changes in fair value recognized during the period relating to assets still held at June 30, 2018 $ (5,061) $ 55,689 $ — $ 35,988 $ 86,616 (1) For the purpose of this table, the IRLC asset and liability positions are shown net. Six months ended June 30, 2018 Excess servicing Mortgage spread servicing Liabilities financing liabilities Total (in thousands) Balance, December 31, 2017 $ 236,534 $ 14,120 $ 250,654 Issuance of excess servicing spread financing pursuant to a recapture agreement with PennyMac Mortgage Investment Trust 1,484 — 1,484 Accrual of interest 7,844 — 7,844 Repayments (24,309) — (24,309) Mortgage servicing liabilities resulting from loan sales — 3,807 3,807 Changes in fair value included in income 7,917 (7,674) 243 Balance, June 30, 2018 $ 229,470 $ 10,253 $ 239,723 Changes in fair value recognized during the period relating to liabilities still outstanding at June 30, 2018 $ 7,917 $ (7,674) $ 243 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 periods presented. The Company had transfers among the fair value levels arising from transfers of IRLCs to loans held for sale at fair value upon purchase or funding of the respective loans and from the return to salability in the active secondary market of certain 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 June 30, 2019 2018 Net Net gains on Net Net gains on 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: Loans held for sale $ — $ 172,752 $ 172,752 $ — $ 56,861 $ 56,861 Mortgage servicing rights (367,713) — (367,713) (26,549) — (26,549) $ (367,713) $ 172,752 $ (194,961) $ (26,549) $ 56,861 $ 30,312 Liabilities: Excess servicing spread financing payable to PennyMac Mortgage Investment Trust $ 3,604 $ — $ 3,604 $ (996) $ — $ (996) Mortgage servicing liabilities 1,734 — 1,734 3,580 — 3,580 $ 5,338 $ — $ 5,338 $ 2,584 $ — $ 2,584 Six months ended June 30, 2019 2018 Net Net gains on Net Net gains on 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: Loans held for sale $ — $ 274,747 $ 274,747 $ — $ 50,743 $ 50,743 Mortgage servicing rights (626,758) — (626,758) 35,988 — 35,988 $ (626,758) $ 274,747 $ (352,011) $ 35,988 $ 50,743 $ 86,731 Liabilities: Excess servicing spread financing payable to PennyMac Mortgage Investment Trust $ 7,655 $ — $ 7,655 $ (7,917) $ — $ (7,917) Mortgage servicing liabilities 3,365 — 3,365 7,674 — 7,674 $ 11,020 $ — $ 11,020 $ (243) $ — $ (243) Following are the fair value and related principal amounts due upon maturity of loans accounted for under the fair value option: June 30, 2019 December 31, 2018 Principal Principal amount amount Fair due upon Fair due upon Loans held for sale value maturity Difference value maturity Difference (in thousands) Current through 89 days delinquent $ 3,371,553 $ 3,202,149 $ 169,404 $ 2,324,203 $ 2,220,371 $ 103,832 90 days or more delinquent: Not in foreclosure 99,723 102,479 (2,756) 143,631 144,011 (380) In foreclosure 35,130 37,559 (2,429) 53,813 56,254 (2,441) $ 3,506,406 $ 3,342,187 $ 164,219 $ 2,521,647 $ 2,420,636 $ 101,011 Assets Measured at Fair Value on a Nonrecurring Basis Following is a summary of assets 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) June 30, 2019 $ — $ — $ 5,290 $ 5,290 December 31, 2018 $ — $ — $ 2,150 $ 2,150 The following table summarizes the total gains (losses) on assets measured at fair value on a nonrecurring basis: Quarter ended June 30, Six months ended June 30, 2019 2018 2019 2018 (in thousands) Real estate acquired in settlement of loans $ 105 $ (26) $ 111 $ (42) 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 included in Notes payable approximate their carrying values due to their short terms and/or variable interest rates. The fair value of the Term Notes at June 30, 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: Loans Held for Sale Most of the Company’s 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 loans are determined using their quoted market or contracted selling price or market price equivalent. Certain of the Company’s loans held for sale are not saleable into active markets and are therefore categorized as “Level 3” fair value assets. Loans held for sale categorized as “Level 3” fair value assets include: · Certain delinquent government guaranteed or insured loans purchased by the Company from Ginnie Mae guaranteed pools in its loan servicing portfolio. The Company’s right to purchase delinquent government guaranteed or insured 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 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 the repurchased loans become current either through the borrower’s reperformance or through completion of a modification of the loan’s terms. · Certain of the Company’s 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 loan with an identified defect. The Company uses a discounted cash flow model to estimate the fair value of its “Level 3” fair value loans held for sale. The significant unobservable inputs used in the fair value measurement of the Company’s “Level 3” fair value 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 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 loans held for sale: Key inputs (1) June 30, 2019 December 31, 2018 Discount rate: Range 3.3% – 9.2% 2.8% – 9.2% Weighted average 3.4% 2.9% Twelve-month projected housing price index change: Range 2.2% – 3.4% 2.2% – 5.0% Weighted average 2.6% 3.5% Voluntary prepayment / resale speed (2): Range 0.1% – 20.5% 0.1% – 21.8% Weighted average 16.4% 20.1% Total prepayment speed (3): Range 0.1% – 40.1% 0.1% – 40.5% Weighted average 30.8% 37.7% (1) Weighted average inputs are based on the fair value of 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 loan’s delinquency status and performance history at period end from the later of the beginning of the period or acquisition date. Changes in fair value of loans held for sale are included in Net gains on 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 loans and the probability that the 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 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 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 loans held for sale at fair value and may be allocated to Net 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) June 30, 2019 December 31, 2018 Pull-through rate: Range 12.2% – 100% 16.6% – 100% Weighted average 83.4% 84.1% Mortgage servicing rights value expressed as: Servicing fee multiple: Range 1.1 – 5.9 1.5 – 5.5 Weighted average 3.8 3.8 Percentage of unpaid principal balance: Range 0.3% – 3.0% 0.4% – 3.2% Weighted average 1.6% 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 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 98.5% and 97.0%, at June 30, 2019 and December 31, 2018, respectively. 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 rates of the underlying loans, and annual per-loan cost to service the 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 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 June 30, Six months ended June 30, 2019 2018 2019 2018 (Amount recognized and unpaid principal balance of underlying loans in thousands) MSR and pool characteristics: Amount recognized $ 183,331 $ 155,694 $ 299,082 $ 299,604 Unpaid principal balance of underlying loans $ 11,677,325 $ 11,142,743 $ 19,823,176 $ 21,305,059 Weighted average servicing fee rate (in basis points) 42 36 41 35 Key inputs (1): Pricing spread (2) Range 5.9% – 15.8% 7.3% – 13.8% 5.8% – 15.8% 7.3% – 14.1% Weighted average 8.7% 10.2% 8.8% 10.3% Annual total prepayment speed (3) Range 8.7% – 32.8% 4.0% – 61.8% 7.7% – 32.8% 3.9% – 61.8% Weighted average 13.8% 10.9% 14.4% 9.9% Life (in years) Range 2.6 – 7.8 1.1 – 11.5 2.6 – 7.8 1.1 – 11.6 Weighted average 6.1 7.3 6.0 7.7 Per-loan annual cost of servicing Range $78 – $100 $78 – $98 $78 – $100 $78 – $98 Weighted average $97 $90 $96 $90 (1) Weighted average inputs are based on the UPB of the underlying 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: June 30, 2019 December 31, 2018 (Carrying value, unpaid principal balance of underlying loans and effect on fair value amounts in thousands) MSR and pool characteristics: Carrying value $2,720,335 $2,820,612 Unpaid principal balance of underlying loans $220,700,176 $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 5.9% – 15.8% 5.8% – 16.1% Weighted average 8.6% 8.7% Effect on fair value of: 5% adverse change ($41,633) ($45,268) 10% adverse change ($81,948) ($89,073) 20% adverse change ($158,854) ($172,556) Prepayment speed (3): Range 9.3% – 33.0% 8.4% – 32.6% Weighted average 13.3% 9.9% Average life (in years): Range 1.5 – 7.4 1.5 – 7.9 Weighted average 6.0 7.2 Effect on fair value of: 5% adverse change ($60,349) ($47,687) 10% adverse change ($118,029) ($93,626) 20% adverse change ($226,021) ($180,623) Annual per-loan cost of servicing: Range $77 – $100 $78 – $99 Weighted average $96 $93 Effect on fair value of: 5% adverse change ($23,403) ($22,944) 10% adverse change ($46,806) ($45,888) 20% adverse change ($93,611) ($91,775) (1) Weighted average inputs are based on the UPB of the underlying 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 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 di

Loans Held for Sale at Fair Val

Loans Held for Sale at Fair Value	6 Months Ended
	Jun. 30, 2019
Loans Held for Sale at Fair Value
Loans Held for Sale at Fair Value	Note 7—Loans Held for Sale at Fair Value Loans held for sale at fair value include the following: June 30, December 31, Loan type 2019 2018 (in thousands) Government-insured or guaranteed $ 3,024,387 $ 2,116,126 Conventional conforming 250,499 144,872 Jumbo 13,522 641 Home equity lines of credit 35 — Purchased from Ginnie Mae pools serviced by the Company 207,741 250,585 Repurchased pursuant to representations and warranties 10,222 9,423 $ 3,506,406 $ 2,521,647 Fair value of loans pledged to secure: Assets sold under agreements to repurchase $ 2,925,266 $ 1,923,857 Mortgage loan participation purchase and sale agreements 549,824 555,001 $ 3,475,090 $ 2,478,858

Derivative Financial Instrument

Derivative Financial Instruments	6 Months Ended
	Jun. 30, 2019
Derivative Financial Instruments
Derivative Financial Instruments	Note 8—Derivative Financial Instruments 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 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: June 30, 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 4,660,741 $ 113,311 $ 1,535 2,805,400 $ 50,507 $ 1,169 Repurchase agreement derivatives 16,015 — 26,770 — Used for hedging purposes: Forward purchase contracts 19,497,698 70,300 6,826 6,657,026 35,916 215 Forward sales contracts 14,276,156 5,494 42,745 6,890,046 437 26,762 MBS put options 12,775,000 8,092 — 4,635,000 720 — MBS call options 2,250,000 8,320 — 1,450,000 2,135 — Put options on interest rate futures purchase contracts 2,835,000 2,674 — 3,085,000 866 — Call options on interest rate futures purchase contracts 3,687,500 19,186 — 1,512,500 5,965 — Treasury futures purchase contracts 486,100 — — 835,000 — — Treasury futures sale contracts 1,550,000 — — 1,450,000 — — Interest rate swap futures purchase contracts 2,900,000 — — 625,000 — — Total derivatives before netting 243,392 51,106 123,316 28,146 Netting (75,276) (35,154) (26,969) (25,082) $ 168,116 $ 15,952 $ 96,347 $ 3,064 Collateral received from derivative counterparties $ (40,122) $ (1,887) The following table summarizes notional amount activity for derivative contracts used in the Company’s hedging activities: Quarter ended June 30, 2019 Notional Notional amount amount beginning of Dispositions/ end of Instrument quarter Additions expirations quarter (in thousands) Forward purchase contracts 9,313,389 84,608,506 (74,424,197) 19,497,698 Forward sale contracts 7,583,005 93,901,535 (87,208,384) 14,276,156 MBS put options 9,425,000 28,450,000 (25,100,000) 12,775,000 MBS call options 3,350,000 2,250,000 (3,350,000) 2,250,000 Put options on interest rate futures purchase contracts 3,350,000 2,897,500 (3,412,500) 2,835,000 Call options on interest rate futures purchase contracts 2,250,000 6,915,000 (5,477,500) 3,687,500 Put options on interest rate futures sale contracts — 8,827,500 (8,827,500) — Treasury futures purchase contracts 1,810,000 2,700,200 (4,024,100) 486,100 Treasury futures sale contracts 1,075,000 4,499,100 (4,024,100) 1,550,000 Interest rate swap futures purchase contracts 1,025,000 1,875,000 — 2,900,000 Quarter ended June 30, 2018 Notional Notional amount amount beginning of Dispositions/ end of Instrument quarter Additions expirations quarter (in thousands) Forward purchase contracts 6,543,783 47,789,665 (47,715,560) 6,617,888 Forward sale contracts 6,924,346 59,686,130 (59,503,274) 7,107,202 MBS put options 3,750,000 4,375,000 (5,450,000) 2,675,000 MBS call options — 5,450,000 (5,450,000) — Put options on interest rate futures purchase contracts 2,800,000 6,177,500 (7,125,000) 1,852,500 Call options on interest rate futures purchase contracts 225,000 1,075,000 (500,000) 800,000 Put options on interest rate futures sale contracts — 7,125,000 (7,125,000) — Call options on interest rate futures sale contracts — 500,000 (500,000) — Treasury futures purchase contracts 510,000 2,991,300 (2,666,300) 835,000 Treasury futures sale contracts 1,250,000 2,866,300 (2,666,300) 1,450,000 Interest rate swap futures purchase contracts 465,000 — — 465,000 Six months ended June 30, 2019 Notional Notional amount amount beginning of Dispositions/ end of Instrument period Additions expirations period (in thousands) Forward purchase contracts 6,657,026 137,230,351 (124,389,679) 19,497,698 Forward sale contracts 6,890,046 153,575,022 (146,188,912) 14,276,156 MBS put options 4,635,000 47,610,000 (39,470,000) 12,775,000 MBS call options 1,450,000 6,750,000 (5,950,000) 2,250,000 Put options on interest rate futures purchase contracts 3,085,000 9,572,500 (9,822,500) 2,835,000 Call options on interest rate futures purchase contracts 1,512,500 11,377,800 (9,202,800) 3,687,500 Put options on interest rate futures sale contracts — 18,962,800 (18,962,800) — Treasury futures purchase contracts 835,000 6,811,400 (7,160,300) 486,100 Treasury futures sale contracts 1,450,000 7,260,300 (7,160,300) 1,550,000 Interest rate swap futures purchase contracts 625,000 2,275,000 — 2,900,000 Six months ended June 30, 2018 Notional Notional amount amount beginning of Dispositions/ end of Instrument period Additions expirations period (in thousands) Forward purchase contracts 4,920,883 93,120,450 (91,423,445) 6,617,888 Forward sale contracts 5,204,796 116,041,682 (114,139,276) 7,107,202 MBS put options 4,925,000 8,875,000 (11,125,000) 2,675,000 MBS call options — 11,125,000 (11,125,000) — Put options on interest rate futures purchase contracts 2,125,000 11,702,500 (11,975,000) 1,852,500 Call options on interest rate futures purchase contracts 100,000 1,450,000 (750,000) 800,000 Put options on interest rate futures sale contracts — 11,975,000 (11,975,000) — Call options on interest rate futures sale contracts — 750,000 (750,000) — Treasury futures purchase contracts 100,000 4,896,200 (4,161,200) 835,000 Treasury futures sale contracts — 6,272,500 (4,822,500) 1,450,000 Interest rate swap futures purchase contracts 1,400,000 465,000 (1,400,000) 465,000 Interest rate swap futures sales 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: June 30, 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 $ 113,311 $ — $ 113,311 $ 50,507 $ — $ 50,507 Repurchase agreement derivatives 16,015 — 16,015 26,770 — 26,770 129,326 — 129,326 77,277 — 77,277 Derivatives subject to master netting arrangements: Forward purchase contracts 70,300 — 70,300 35,916 — 35,916 Forward sale contracts 5,494 — 5,494 437 — 437 MBS put options 8,092 — 8,092 720 — 720 MBS call options 8,320 — 8,320 2,135 — 2,135 Put options on interest rate futures purchase contracts 2,674 — 2,674 866 — 866 Call options on interest rate futures purchase contracts 19,186 — 19,186 5,965 — 5,965 Netting (75,276) (75,276) — (26,969) (26,969) 114,066 (75,276) 38,790 46,039 (26,969) 19,070 $ 243,392 $ (75,276) $ 168,116 $ 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. June 30, 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 $ 113,311 $ — $ — $ 113,311 $ 50,507 $ — $ — $ 50,507 RJ O'Brien 21,860 — — 21,860 6,831 — — 6,831 Deutsche Bank 16,015 — — 16,015 26,770 — — 26,770 Wells Fargo Bank, N.A. 5,516 — — 5,516 3,707 — — 3,707 Goldman Sachs 4,112 — — 4,112 — — — — Nomura Securities International, Inc. 2,834 — — 2,834 — — — — Bank of America, N.A. 2,427 — — 2,427 2,781 — — 2,781 Mizuho Securities 1,746 — — 1,746 — — — — Citibank, N.A. — — — — 2,488 — — 2,488 JPMorgan Chase Bank, N.A. — — — — 1,399 — — 1,399 Others 295 — — 295 1,864 — — 1,864 $ 168,116 $ — $ — $ 168,116 $ 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. June 30, 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 $ 1,535 $ — $ 1,535 $ 1,169 $ — $ 1,169 Derivatives subject to a master netting arrangement: Forward purchase contracts 6,826 — 6,826 215 — 215 Forward sale contracts 42,745 — 42,745 26,762 — 26,762 Netting — (35,154) (35,154) — (25,082) (25,082) 49,571 (35,154) 14,417 26,977 (25,082) 1,895 Total derivatives 51,106 (35,154) 15,952 28,146 (25,082) 3,064 Assets sold under agreements to repurchase: Amount outstanding 2,748,374 — 2,748,374 1,935,200 — 1,935,200 Unamortized debt issuance premiums and costs, net (1,290) — (1,290) (1,341) — (1,341) 2,747,084 — 2,747,084 1,933,859 — 1,933,859 $ 2,798,190 $ (35,154) $ 2,763,036 $ 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. June 30, 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 $ 1,535 $ — $ — $ 1,535 $ 1,169 $ — $ — $ 1,169 Credit Suisse First Boston Mortgage Capital LLC 939,988 (939,988) — — 691,030 (690,766) — 264 Bank of America, N.A. 419,594 (419,594) — — 170,820 (170,820) — — Citibank, N.A. 351,072 (350,235) — 837 14,960 (14,960) — — Morgan Stanley Bank, N.A. 326,564 (317,269) — 9,295 77,687 (77,687) — — JPMorgan Chase Bank, N.A. 320,478 (320,478) — — 54,326 (54,326) — — BNP Paribas 190,654 (190,654) — — 149,675 (149,482) — 193 Royal Bank of Canada 128,681 (128,681) — — 35,181 (35,181) — — Deutsche Bank 81,475 (81,475) — — 741,978 (741,978) — — Federal National Mortgage Association 2,168 — — 2,168 — — — — Others 2,117 — — 2,117 1,438 — — 1,438 $ 2,764,326 $ (2,748,374) $ — $ 15,952 $ 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 June 30, Six months ended June 30, Derivative activity Income statement line 2019 2018 2019 2018 (in thousands) Interest rate lock commitments Net gains on loans held for sale at fair value $ 45,711 $ 4,793 $ 62,438 $ (2,583) Repurchase agreement derivatives Interest expense $ (1,143) $ (692) $ (1,700) $ (1,118) Hedged item: Interest rate lock commitments and loans held for sale Net gains on loans held for sale at fair value $ (67,154) $ 1,855 $ (101,822) $ 89,602 Mortgage servicing rights Net loan servicing fees –C hange in fair value of mortgage servicing rights and mortgage servicing liabilities $ 203,180 $ (24,289) $ 337,737 $ (127,882)

Mortgage Servicing Rights and M

Mortgage Servicing Rights and Mortgage Servicing Liabilities	6 Months Ended
	Jun. 30, 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 June 30, Six months ended June 30, 2019 2018 2019 2018 (in thousands) Balance at beginning of period $ 2,905,090 $ 2,354,489 $ 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 2,905,090 2,354,489 2,820,612 2,120,436 Additions: Purchases (purchase adjustments) (373) 2,523 227,399 30,129 Resulting from loan sales 183,331 155,694 299,082 299,604 182,958 158,217 526,481 329,733 Change in fair value due to: Changes in inputs used in valuation model (1) (256,449) 44,796 (418,087) 175,245 Other changes in fair value (2) (111,264) (71,345) (208,671) (139,257) Total change in fair value (367,713) (26,549) (626,758) 35,988 Balance at end of period $ 2,720,335 $ 2,486,157 $ 2,720,335 $ 2,486,157 June 30, December 31, 2019 2018 (in thousands) Fair value of mortgage servicing rights pledged to secure Assets sold under agreements to repurchase and Notes payable $ 2,710,342 $ 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 June 30, Six months ended June 30, 2019 2018 2019 2018 (in thousands) Balance at beginning of period $ 7,844 $ 12,063 $ 8,681 $ 14,120 Mortgage servicing liabilities resulting from loan sales 6,838 1,770 7,632 3,807 Changes in fair value due to: Changes in valuation inputs used in valuation model (1) 2,756 2,537 6,057 5,180 Other changes in fair value (2) (4,490) (6,117) (9,422) (12,854) Total change in fair value (1,734) (3,580) (3,365) (7,674) Balance at end of period $ 12,948 $ 10,253 $ 12,948 $ 10,253 (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 loan servicing fees—Loan servicing fees—From non-affiliates on the consolidated statements of income; other fees relating to MSRs and MSLs are recorded in Net loan servicing fees—Loan servicing fees—Other on the Company’s consolidated statements of income. Such amounts are summarized below: Quarter ended June 30, Six months ended June 30, 2019 2018 2019 2018 (in thousands) Contractual servicing fees $ 180,753 $ 138,871 $ 347,543 $ 274,354 Other fees: Late charges 9,015 7,049 18,827 14,508 Other 2,612 1,814 4,273 3,376 $ 192,380 $ 147,734 $ 370,643 $ 292,238

Leases

Leases	6 Months Ended
	Jun. 30, 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 Six months ended June 30, 2019 June 30, 2019 (dollars in thousands) Lease expense: Operating leases $ 3,232 $ 6,461 Short-term leases 214 431 Sublease income (27) (59) Net lease expense included in Occupancy and equipment $ 3,419 $ 6,833 Other information: Cash payments for operating leases $ 3,884 $ 7,730 Operating lease right-of-use assets recognized $ 87 $ 58,713 Weighted averages: Remaining lease term (in years) 6.4 Discount rate The maturities of the Company’s operating lease liabilities are summarized below: Twelve months ended June 30, Operating leases (in thousands) 2020 $ 15,671 2021 14,859 2022 12,739 2023 11,837 2024 9,903 Thereafter 19,591 Total lease payments 84,600 Less imputed interest (11,139) Total $ 73,461 As of June 30, 2019, the Company had 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	6 Months Ended
	Jun. 30, 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 June 30, 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 loans held for sale at fair value or participation certificates backed by MSRs. Eligible 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. 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 June 30, Six months ended June 30, 2019 2018 2019 2018 (dollars in thousands) Average balance of assets sold under agreements to repurchase $ 1,988,920 $ 1,574,012 $ 1,715,846 $ 1,608,535 Weighted average interest rate (1) 4.35 % 3.90 % 4.40 % 3.74 % Total interest expense (2) $ 19,645 $ 4,535 $ 28,280 $ 11,267 Maximum daily amount outstanding $ 2,748,375 $ 2,028,713 $ 2,748,375 $ 2,380,121 June 30, December 31, 2019 2018 (dollars in thousands) Carrying value: Unpaid principal balance $ 2,748,374 $ 1,935,200 Unamortized debt issuance premiums and costs, net (1,290) (1,341) $ 2,747,084 $ 1,933,859 Weighted average interest rate 4.01 % 4.22 % Available borrowing capacity (3): Committed $ 80,406 $ 695,767 Uncommitted 2,156,220 2,354,033 $ 2,236,626 $ 3,049,800 Fair value of assets securing repurchase agreements: Loans held for sale $ 2,925,266 $ 1,923,857 Assets purchased from PennyMac Mortgage Investment Trust under agreements to resell $ 118,716 $ 131,025 Servicing advances (4) $ 151,384 $ 162,895 Mortgage servicing rights (4) $ 2,618,932 $ 2,807,333 Margin deposits placed with counterparties (5) $ 3,750 $ 3,750 (1) Excludes the effect of amortization of net premiums totaling $2.0 million and $9.4 million for the quarter and six months ended June 30, 2019, respectively, and $10.8 million and $18.8 million for the quarter and six months ended June 30, 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. The Company included $3.9 million and $12.5 million of such incentives as reductions in Interest expense during the quarters ended June 30, 2019 and 2018, respectively, and $13.2 million and $22.7 million during the six months ended June 30, 2019 and 2018, respectively. The master repurchase agreement expires on August 21, 2019, unless extended or terminated earlier at the option of the lender. The lender substantially curtailed the incentives provided under the master repurchase agreement through an orderly wind down of the incentive program during the quarter ended June 30, 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 June 30, 2019 Balance (dollars in thousands) Within 30 days $ 385,095 Over 30 to 90 days 2,201,740 Over 90 to 180 days 6,539 Over 180 days to one year 155,000 Total assets sold under agreements to repurchase $ 2,748,374 Weighted average maturity (in months) 2.4 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 June 30, 2019: Weighted average maturity of advances under repurchase Counterparty Amount at risk agreement Facility maturity (in thousands) Credit Suisse First Boston Mortgage Capital LLC $ 1,314,198 April 26, 2020 April 26, 2020 Credit Suisse First Boston Mortgage Capital LLC $ 73,613 August 20, 2019 April 24, 2020 Bank of America, N.A. $ 109,665 August 4, 2019 October 28, 2019 JP Morgan Chase Bank, N.A. $ 63,772 August 30, 2019 October 11, 2019 Morgan Stanley Bank, N.A. $ 25,753 August 23, 2019 August 23, 2019 Citibank, N.A. $ 24,944 August 6, 2019 August 6, 2019 BNP Paribas $ 11,892 August 2, 2019 August 2, 2019 Royal Bank of Canada $ 10,481 August 1, 2019 September 30, 2019 Deutsche Bank AG $ 9,863 August 21, 2019 August 21, 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 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 June 30, Six months ended June 30, 2019 2018 2019 2018 (dollars in thousands) Average balance $ 251,997 $ 246,368 $ 244,374 $ 231,076 Weighted average interest rate (1) 3.63 % 3.21 % 3.65 % 3.06 % Total interest expense $ 2,419 $ 2,190 $ 4,730 $ 3,917 Maximum daily amount outstanding $ 523,279 $ 528,368 $ 548,038 $ 528,368 (1) Excludes the effect of amortization of facility fees totaling $135,000 and $212,000 for the quarters ended June 30, 2019 and 2018, respectively, and $270,000 and $383,000 for the six months ended June 30, 2019 and 2018, respectively. June 30, December 31, 2019 2018 (dollars in thousands) Carrying value: Unpaid principal balance $ 523,279 $ 532,466 Unamortized debt issuance costs (102) (215) $ 523,177 $ 532,251 Weighted average interest rate 3.65 % 3.77 % Fair value of loans pledged to secure mortgage loan participation purchase and sale agreements $ 549,824 $ 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 quarter and six months ended June 30, 2019 or 2018. Notes payable are summarized below: Quarter ended June 30, Six months ended June 30, 2019 2018 2019 2018 (dollars in thousands) Average balance $ 1,300,000 $ 1,150,000 $ 1,300,000 $ 1,069,890 Weighted average interest rate (1) 5.27 % 5.33 % 5.26 % 5.44 % Total interest expense $ 18,039 $ 16,348 $ 36,034 $ 34,570 Maximum daily amount outstanding $ 1,300,000 $ 1,150,000 $ 1,300,000 $ 1,150,000 (1) Excludes the effect of amortization of debt issuance costs and non-utilization fees totaling $0.9 million and $ 1.1 million for the quarters ended June 30, 2019 and 2018, respectively, and $ 1.8 million and $5.5 million for the six months ended June 30, 2019 and 2018, respectively. June 30, December 31, 2019 2018 (dollars in thousands) Carrying value: Unpaid principal balance $ 1,300,000 $ 1,300,000 Unamortized debt issuance costs (6,820) (7,709) $ 1,293,180 $ 1,292,291 Weighted average interest rate 5.18 % 5.07 % Unused amount $ 150,000 $ 150,000 Assets pledged to secure notes payable: Cash $ 184,278 $ 108,174 Servicing advances (1) $ 151,384 $ 162,895 Mortgage servicing rights (1) $ 2,710,342 $ 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 June 30, Six months ended June 30, 2019 2018 2019 2018 (dollars in thousands) Average balance $ 10,135 $ 14,544 $ 8,406 $ 18,703 Weighted average interest rate 4.39 % 3.92 % 4.39 % 3.78 % Total interest expense $ 136 $ 152 $ 202 $ 322 Maximum daily amount outstanding $ 28,295 $ 16,435 $ 28,295 $ 20,971 June 30, December 31, 2019 2018 (dollars in thousands) Unpaid principal balance $ 28,295 $ 6,605 Weighted average interest rate 4.39 % 4.46 % Assets pledged to secure obligations under capital lease: Furniture, fixtures and equipment $ 23,971 $ 16,281 Capitalized software $ 15,097 $ 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 June 30, Six months ended June 30, 2019 2018 2019 2018 (in thousands) Balance at beginning of period $ 205,081 $ 236,002 $ 216,110 $ 236,534 Issuances of excess servicing spread to PennyMac Mortgage Investment Trust pursuant to recapture agreement 442 580 950 1,484 Accrual of interest 2,767 3,910 5,833 7,844 Repayment (10,530) (12,018) (21,082) (24,309) Change in fair value (3,604) 996 (7,655) 7,917 Balance at end of period $ 194,156 $ 229,470 $ 194,156 $ 229,470

Liability for Losses Under Repr

Liability for Losses Under Representations and Warranties	6 Months Ended
	Jun. 30, 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 June 30, Six months ended June 30, 2019 2018 2019 2018 (in thousands) Balance at beginning of period $ 17,982 $ 20,429 $ 21,155 $ 20,053 Provision for losses on loans sold: Resulting from sales of loans 1,647 1,216 2,714 2,708 Reduction in liability due to change in estimate (920) (1,359) (5,130) (2,472) Incurred losses, net — 301 (30) 298 Balance at end of period $ 18,709 $ 20,587 $ 18,709 $ 20,587 Unpaid principal balance of loans subject to representations and warranties at end of period $ 127,670,206 $ 133,585,457

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2019
Income Taxes
Income Taxes	Note 13—Income Taxes The Company’s effective income tax rates were 27.0% and 8.4% for the quarters ended June 30, 2019 and 2018, respectively, and 25.7% and 8.4% for the six months ended June 30, 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 was not subject to income tax at the parent Company level before the Reorganization. As a result, the Company reported a higher effective tax rate for the quarter and six months ended June 30, 2019 than for the quarter and six months ended June 30, 2018.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2019
Commitments and Contingencies.
Commitments and Contingencies	Note 14—Commitments and Contingencies Litigation From time to time, the Company may be a party to legal proceedings, lawsuits and other 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 any such proceedings and exposure will not have, individually or taken together, 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 loans totaled $4.7 billion as of June 30, 2019.

Stockholders' Equity

Stockholders' Equity	6 Months Ended
	Jun. 30, 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. Following is a summary of activity under the stock repurchase program: Quarter ended June 30, Six months ended June 30, Cumulative 2019 2018 2019 2018 total (1) (in thousands) Shares of common stock repurchased 51 236 51 236 816 Cost of shares of common stock repurchased $ 1,056 $ 4,826 $ 1,056 $ 4,826 $ 14,948 (1) Amounts represent the total shares of common stock repurchased under the stock repurchase program through June 30, 2019.

Noncontrolling Interest

Noncontrolling Interest	6 Months Ended
	Jun. 30, 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 Six months ended June 30, 2018 June 30, 2018 (in thousands) Net income attributable to PennyMac Financial Services, Inc. common stockholders $ 17,837 $ 34,456 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. $ 13,265 $ 28,124 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 737 1,485

Net Gains on Loans Held for Sal

Net Gains on Loans Held for Sale	6 Months Ended
	Jun. 30, 2019
Net Gains on Loans Held for Sale
Net Gains on Loans Held for Sale	Note 17—Net Gains on Loans Held for Sale Net gains on loans held for sale at fair value is summarized below: Quarter ended June 30, Six months ended June 30, 2019 2018 2019 2018 (in thousands) From non-affiliates: Cash loss: Loans $ (13,579) $ (110,242) $ (54,821) $ (292,043) Hedging activities (73,145) (12,567) (82,072) 91,829 (86,724) (122,809) (136,893) (200,214) Non-cash gain: Mortgage servicing rights and mortgage servicing liabilities resulting from loan sales 176,493 153,924 291,450 295,797 Provision for losses relating to representations and warranties: Pursuant to loan sales (1,647) (1,216) (2,714) (2,708) Reduction in liability due to change in estimate 920 1,359 5,130 2,472 Change in fair value of loans and derivatives held at period end: Interest rate lock commitments 45,711 4,793 62,438 (2,583) Loans (29,522) (4,454) (29,686) 14,510 Hedging derivatives 5,991 14,422 (19,750) (2,227) 111,222 46,019 169,975 105,047 From PennyMac Mortgage Investment Trust 36,311 14,927 62,334 27,313 $ 147,533 $ 60,946 $ 232,309 $ 132,360

Net Interest Income

Net Interest Income	6 Months Ended
	Jun. 30, 2019
Net Interest Income
Net Interest Income	Note 18—Net Interest Income Net interest income is summarized below: Quarter ended June 30, Six months ended June 30, 2019 2018 2019 2018 (in thousands) Interest income: From non-affiliates: Cash and short-term investments $ 2,706 $ 579 $ 4,639 $ 1,187 Loans held for sale at fair value 34,366 34,434 65,709 61,041 Placement fees relating to custodial funds 32,136 18,193 55,397 31,617 69,208 53,206 125,745 93,845 From PennyMac Mortgage Investment Trust—Assets purchased from PennyMac Mortgage Investment Trust under agreements to resell 1,692 1,898 3,488 3,874 70,900 55,104 129,233 97,719 Interest expense: To non-affiliates: Assets sold under agreements to repurchase (1) 19,645 4,535 28,280 11,267 Mortgage loan participation purchase and sale agreements 2,419 2,190 4,730 3,917 Notes payable 18,039 16,348 36,034 34,570 Obligations under capital lease 136 152 202 322 Interest shortfall on repayments of mortgage loans serviced for Agency securitizations 8,214 4,546 12,525 9,376 Interest on mortgage loan impound deposits 1,704 935 2,863 2,065 50,157 28,706 84,634 61,517 To PennyMac Mortgage Investment Trust—Excess servicing spread financing at fair value 2,767 3,910 5,833 7,844 52,924 32,616 90,467 69,361 $ 17,976 $ 22,488 $ 38,766 $ 28,358 (1) In 2017, the Company entered into a master repurchase agreement that provides the Company with incentives to finance mortgage loans approved for satisfying certain consumer relief characteristics as provided in the agreement. The Company included $3.9 million and $12.5 million of such incentives as reductions in Interest expense during the quarter ended June 30, 2019 and 2018, respectively, and $13.2 million and $22.7 million during the six months ended June 30, 2019 and 2018, respectively. The master repurchase agreement expires on August 21, 2019, unless extended or terminated earlier at the option of the lender. The lender substantially curtailed the incentives provided under the master repurchase agreement through an orderly wind down of the incentive program during the quarter ended June 30, 2019.

Stock-based Compensation

Stock-based Compensation	6 Months Ended
	Jun. 30, 2019
Stock-based Compensation
Stock-based Compensation	Note 19—Stock-based Compensation As of June 30, 2019, the Company had one stock-based compensation plan. Following is a summary of the stock-based compensation activity: Quarter ended June 30, Six months ended June 30, 2019 2018 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 — 774 648 774 Stock options exercised 29 33 118 229 Time-based RSUs vested — 11 291 244 Compensation expense $ 5,652 $ 6,063 $ 10,183 $ 12,234

Earnings Per Share of Common St

Earnings Per Share of Common Stock	6 Months Ended
	Jun. 30, 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, before the Reorganization, 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 PNMAC Class A units 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 June 30, Six months ended June 30, 2019 2018 2019 2018 (in thousands, except per share amounts) Basic earnings per share of common stock: Net income attributable to common stockholders $ 72,696 $ 17,837 $ 118,831 $ 34,456 Weighted average shares of common stock outstanding 78,335 24,959 77,996 24,399 Basic earnings per share of common stock $ 0.93 $ 0.71 $ 1.52 $ 1.41 Diluted earnings per share of common stock: Net income attributable to common stockholders $ 72,696 $ 17,837 $ 118,831 $ 34,456 Net income attributable to dilutive stock-based compensation units — 614 — 1,842 Net income attributable to PennyMac Class A units exchangeable to Class A common stock, net of income taxes — 36,766 — 72,396 Net income attributable to common stockholders for diluted earnings per share $ 72,696 $ 55,217 $ 118,831 $ 108,694 Weighted average shares of common stock outstanding applicable to basic earnings per share 78,335 24,959 77,996 24,399 Effect of dilutive shares: Common shares issuable under stock-based compensation plan 983 1,381 1,305 1,965 PennyMac Class A units exchangeable to Class A common stock — 52,485 — 52,583 Weighted average shares of common stock applicable to diluted earnings per share 79,318 78,825 79,301 78,947 Diluted earnings per share of common stock $ 0.92 $ 0.70 $ 1.50 $ 1.38 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 June 30, Six months ended June 30, 2019 2018 2019 2018 (in thousands except for weighted-average exercise price) Performance-based RSUs (1) 1,811 1,190 1,547 1,003 Time-based RSUs — 209 1 132 Stock options (2) 982 1,299 845 629 Total anti-dilutive stock-based compensation 2,793 2,698 2,393 1,764 Weighted average exercise price of anti-dilutive stock options (2) $ 18.34 $ 17.79 $ 18.34 $ 17.79 (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 period.

Supplemental Cash Flow Informat

Supplemental Cash Flow Information	6 Months Ended
	Jun. 30, 2019
Supplemental Cash Flow Information
Supplemental Cash Flow Information	Note 21—Supplemental Cash Flow Information Six months ended June 30, 2019 2018 (in thousands) Cash paid for interest $ 73,905 $ 85,540 Cash paid for income taxes (refunds received), net $ 261 $ (416) Non-cash investing activity: Mortgage servicing rights resulting from loan sales $ 299,082 $ 299,604 Mortgage servicing liabilities resulting from loan sales $ 7,632 $ 3,807 Unsettled portion of MSR acquisitions $ 9,457 $ — Operating right-of-use assets recognized upon the adoption of ASU 2016-02 $ 58,713 $ — Non-cash financing activity: Issuance of Excess servicing spread payable to PennyMac Mortgage Investment Trust pursuant to a recapture agreement $ 950 $ 1,484 Issuance of common stock and Class A common stock in settlement of director fees $ 136 $ 160

Regulatory Capital and Liquidit

Regulatory Capital and Liquidity Requirements	6 Months Ended
	Jun. 30, 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: June 30, 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 $ 1,922,068 $ 565,849 $ 1,788,430 $ 514,089 Ginnie Mae – PLS $ 1,676,194 $ 833,567 $ 1,535,826 $ 733,342 Ginnie Mae – PennyMac $ 1,945,850 $ 916,923 $ 1,786,430 $ 806,676 HUD – PLS $ 1,676,194 $ 2,500 $ 1,535,826 $ 2,500 Liquidity Fannie Mae & Freddie Mac – PLS $ 300,366 $ 77,699 $ 271,802 $ 70,775 Ginnie Mae – PLS $ 300,366 $ 209,988 $ 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	6 Months Ended
	Jun. 30, 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 loan origination, acquisition and sale activities. The servicing segment performs servicing of loans, execution and management of early buyout loan transactions and servicing of 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 June 30, 2019 Mortgage Banking Investment Production Servicing Total Management Total (in thousands) Revenue: (1) Net loan servicing fees $ — $ 59,134 $ 59,134 $ — $ 59,134 Net gains on loans held for sale at fair value 124,860 22,673 147,533 — 147,533 Loan origination fees 36,924 — 36,924 — 36,924 Fulfillment fees from PennyMac Mortgage Investment Trust 29,590 — 29,590 — 29,590 Net interest income (expense): Interest income 18,900 52,000 70,900 — 70,900 Interest expense 13,898 39,015 52,913 11 52,924 5,002 12,985 17,987 (11) 17,976 Management fees — — — 8,832 8,832 Other 117 1,332 1,449 1,539 2,988 Total net revenue 196,493 96,124 292,617 10,360 302,977 Expenses 98,249 98,797 197,046 6,341 203,387 Income before provision for income taxes $ 98,244 $ (2,673) $ 95,571 $ 4,019 $ 99,590 Segment assets at quarter end $ 3,556,575 $ 4,823,468 $ 8,380,043 $ 18,333 $ 8,398,376 (1) All revenues are from external customers. Quarter ended June 30, 2018 Mortgage Banking Investment Production Servicing Total Management Total (in thousands) Revenue: (1) Net loan servicing fees $ — $ 113,689 $ 113,689 $ — $ 113,689 Net gains on loans held for sale at fair value 33,966 26,980 60,946 — 60,946 Loan origination fees 24,428 — 24,428 — 24,428 Fulfillment fees from PennyMac Mortgage Investment Trust 14,559 — 14,559 — 14,559 Net interest income (expense): Interest income 16,874 38,230 55,104 — 55,104 Interest expense 1,025 31,576 32,601 15 32,616 15,849 6,654 22,503 (15) 22,488 Management fees — — — 5,664 5,664 Carried Interest from Investment Funds — — — (168) (168) Other 536 728 1,264 1,428 2,692 Total net revenue 89,338 148,051 237,389 6,909 244,298 Expenses 70,320 93,483 163,803 5,797 169,600 Income before provision for income taxes $ 19,018 $ 54,568 $ 73,586 $ 1,112 $ 74,698 Segment assets at quarter end (2) $ 2,280,251 $ 4,542,815 $ 6,823,066 $ 10,633 $ 6,833,699 (1) All revenues are from external customers. (2) Excludes parent Company assets, which consist of $8.0 million of cash. Six months ended June 30, 2019 Mortgage Banking Investment Production Servicing Total Management Total (in thousands) Revenue: (1) Net loan servicing fees $ — $ 139,705 $ 139,705 $ — $ 139,705 Net gains on loans held for sale at fair value 191,581 40,728 232,309 — 232,309 Loan origination fees 60,854 — 60,854 — 60,854 Fulfillment fees from PennyMac Mortgage Investment Trust 57,164 — 57,164 — 57,164 Net interest income (expense): Interest income 33,269 95,964 129,233 — 129,233 Interest expense 17,813 72,636 90,449 18 90,467 15,456 23,328 38,784 (18) 38,766 Management fees — — — 16,080 16,080 Other 605 2,097 2,702 3,102 5,804 Total net revenue 325,660 205,858 531,518 19,164 550,682 Expenses 180,410 197,368 377,778 13,023 390,801 Income before provision for income taxes $ 145,250 $ 8,490 $ 153,740 $ 6,141 $ 159,881 Segment assets at period end $ 3,556,575 $ 4,823,468 $ 8,380,043 $ 18,333 $ 8,398,376 (1) All revenues are from external customers. Six months ended June 30, 2018 Mortgage Banking Investment Production Servicing Total Management Total (in thousands) Revenue: (1) Net loan servicing fees $ — $ 230,478 $ 230,478 $ — $ 230,478 Net gains on loans held for sale at fair value 70,164 62,196 132,360 — 132,360 Loan origination fees 48,991 — 48,991 — 48,991 Fulfillment fees from PennyMac Mortgage Investment Trust 26,503 — 26,503 — 26,503 Net interest income (expense): Interest income 31,122 66,597 97,719 — 97,719 Interest expense 3,127 66,203 69,330 31 69,361 27,995 394 28,389 (31) 28,358 Management fees — — — 11,439 11,439 Carried Interest from Investment Funds — — — (348) (348) Other 852 1,123 1,975 2,743 4,718 Total net revenue 174,505 294,191 468,696 13,803 482,499 Expenses 138,317 184,748 323,065 11,740 334,805 Income before provision for income taxes $ 36,188 $ 109,443 $ 145,631 $ 2,063 $ 147,694 Segment assets at period end (2) $ 2,280,251 $ 4,542,815 $ 6,823,066 $ 10,633 $ 6,833,699 (1) All revenues are from external customers. (2) Excludes parent Company assets, which consist of $8.0 million of cash.

Subsequent Events

Subsequent Events	6 Months Ended
	Jun. 30, 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, on July 23, 2019, the Company through PLS, entered into an amendment (the “Amendment”) to its Master Repurchase Agreement, dated as of August 19, 2016, by and among JP Morgan Chase Bank, N.A. (“JPM”) and PLS, pursuant to which PLS may sell to, and later repurchase from, JPM certain newly originated mortgage loans. Pursuant to the Amendment, the maximum aggregate purchase price provided for in the Repurchase Agreement was increased from $500 million to $1 billion and the uncommitted amount of which was increased from $450 million to $950 million.

Transactions with Affiliates (T

Transactions with Affiliates (Tables) - PMT	6 Months Ended
	Jun. 30, 2019
Transactions with Affiliates
Summary of lending activity between the Company and affiliate	Quarter ended June 30, Six months ended June 30, 2019 2018 2019 2018 (in thousands) Net gains on loans held for sale at fair value: Net gains on loans held for sale to PMT $ 37,719 $ 15,863 $ 64,865 $ 29,674 Mortgage servicing rights and excess servicing spread recapture incurred (1,408) (936) (2,531) (2,361) $ 36,311 $ 14,927 $ 62,334 $ 27,313 Sale of loans held for sale to PMT $ 1,334,211 $ 646,311 $ 2,218,721 $ 1,427,637 Fulfillment fee revenue $ 29,590 $ 14,559 $ 57,164 $ 26,503 Unpaid principal balance of loans fulfilled for PMT subject to fulfillment fees $ 10,741,078 $ 5,396,370 $ 18,876,630 $ 9,622,001 Sourcing fees paid to PMT $ 3,155 $ 2,891 $ 5,149 $ 5,532 Unpaid principal balance of loans purchased from PMT $ 10,514,390 $ 9,639,495 $ 17,161,728 $ 18,487,368 Tax service fees earned from PMT included in Loan origination fees $ 3,102 $ 1,542 $ 5,345 $ 2,750
Summary of loan servicing fees earned from PMT	Quarter ended June 30, Six months ended June 30, 2019 2018 2019 2018 (in thousands) Loans acquired for sale at fair value $ 385 $ 245 $ 624 $ 423 Loans at fair value 617 1,172 1,080 4,257 Mortgage servicing rights 10,566 8,014 20,434 15,770 $ 11,568 $ 9,431 $ 22,138 $ 20,450 Property management fees received from PMT included in Other income $ 102 $ 112 $ 225 $ 211
Summary of management fees earned	Quarter ended June 30, Six months ended June 30, 2019 2018 2019 2018 (in thousands) Base management $ 6,839 $ 5,728 $ 12,948 $ 11,424 Performance incentive 1,993 — 3,132 — $ 8,832 $ 5,728 $ 16,080 $ 11,424
Summary of reimbursement of expenses	Quarter ended June 30, Six months ended June 30, 2019 2018 2019 2018 (in thousands) Reimbursement of: Common overhead incurred by the Company included in Other revenue $ 1,276 $ 1,176 $ 2,512 $ 2,177 Compensation included in Other revenue 120 120 240 240 Expenses incurred on PMT's (the Company's) behalf, net 489 (514) 1,059 59 $ 1,885 $ 782 $ 3,811 $ 2,476 Payments and settlements during the period (1) $ 28,031 $ 15,957 $ 43,220 $ 23,615 (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 June 30, Six months ended June 30, 2019 2018 2019 2018 (in thousands) Interest income relating to Assets purchased from PennyMac Mortgage Investment Trust under agreements to resell $ 1,692 $ 1,898 $ 3,488 $ 3,874 Common shares of beneficial interest of PennyMac Mortgage Investment Trust: Dividends received $ 35 $ 36 $ 71 $ 71 Change in fair value of investment 84 72 240 219 $ 119 $ 108 $ 311 $ 290 June 30, December 31, 2019 2018 (in thousands) Assets purchased from PennyMac Mortgage Investment Trust under agreements to resell $ 118,716 $ 131,025 Common shares of beneficial interest of PennyMac Mortgage Investment Trust: Fair value $ 1,637 $ 1,397 Number of shares 75 75
Summary of financing activity between the Company and affiliate	Quarter ended June 30, Six months ended June 30, 2019 2018 2019 2018 (in thousands) Excess servicing spread financing: Issuance pursuant to recapture agreement $ 442 $ 580 $ 950 $ 1,484 Repayment $ 10,530 $ 12,018 $ 21,082 $ 24,309 Gain (loss) recognized $ 3,604 $ (996) $ 7,655 $ (7,917) Interest expense $ 2,767 $ 3,910 $ 5,833 $ 7,844 Recapture incurred pursuant to refinancings by the Company of mortgage loans subject to excess servicing spread financing included in Net gains on loans held for sale at fair value $ 393 $ 524 $ 882 $ 1,354 June 30, December 31, 2019 2018 (in thousands) Excess servicing spread financing at fair value $ 194,156 $ 216,110
Summary of amounts due from and payable to affiliate	June 30, December 31, 2019 2018 (in thousands) Receivable from PMT: Fulfillment fees $ 10,454 $ 10,006 Management fees 8,526 6,559 Allocated expenses and expenses incurred on PMT's behalf 8,335 9,066 Servicing fees 4,030 4,841 Correspondent production fees 2,662 2,071 Conditional Reimbursement 582 801 Interest on assets purchased under agreements to resell 106 120 $ 34,695 $ 33,464 Payable to PMT: Deposits made by PMT to fund servicing advances $ 64,120 $ 100,554 Mortgage servicing rights recapture payable 112 179 Other 1,373 3,898 $ 65,605 $ 104,631

Loan Sales and Servicing Acti_2

Loan Sales and Servicing Activities (Tables)	6 Months Ended
	Jun. 30, 2019
Loan Sales and Servicing Activities
Summary of cash flows between the Company and transferees upon sale of loans in transactions	Quarter ended June 30, Six months ended June 30, 2019 2018 2019 2018 (in thousands) Cash flows: Sales proceeds $ 12,650,318 $ 11,729,024 $ 21,186,748 $ 22,832,809 Servicing fees received (1) $ 140,416 $ 117,818 $ 277,564 $ 230,909 Net recoveries of servicing advances $ (8,012) $ (14,082) $ (32,188) $ (24,719) (1) Net of guarantee fees paid to the Agencies.
Summary of sale of loans between the Company and transferees upon sale of loans in transactions	June 30, December 31, 2019 2018 (in thousands) Unpaid principal balance of loans outstanding $ 153,688,804 $ 145,224,596 Delinquencies: 30-89 days $ 6,892,489 $ 6,222,864 90 days or more: Not in foreclosure $ 2,322,270 $ 2,208,083 In foreclosure $ 664,870 $ 720,894 Foreclosed $ 21,405 $ 24,243 Bankruptcy $ 1,178,689 $ 970,329
Summary of servicing portfolio	June 30, 2019 Contract Servicing servicing and Total rights owned subservicing loans serviced (in thousands) Investor: Non-affiliated entities: Originated $ 153,688,804 $ — $ 153,688,804 Purchased 68,308,793 — 68,308,793 221,997,597 — 221,997,597 PennyMac Mortgage Investment Trust — 109,131,225 109,131,225 Loans held for sale 3,342,187 — 3,342,187 $ 225,339,784 $ 109,131,225 $ 334,471,009 Subserviced for the Company (1) $ 290,071 $ — $ 290,071 Delinquent loans: 30 days $ 7,697,720 $ 640,344 $ 8,338,064 60 days 2,034,567 117,182 2,151,749 90 days or more: Not in foreclosure 3,172,188 208,449 3,380,637 In foreclosure 942,838 87,462 1,030,300 Foreclosed 31,689 137,518 169,207 $ 13,879,002 $ 1,190,955 $ 15,069,957 Bankruptcy $ 1,737,309 $ 120,884 $ 1,858,193 Custodial funds managed by the Company (2) $ 5,366,007 $ 1,894,889 $ 7,260,896 (1) Certain of the loans for which the Company has purchased the MSRs are subserviced on the Company’s behalf by other 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 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 loans’ borrowers and investors, which are included in Interest income in the Company’s consolidated statements of income. December 31, 2018 Contract Servicing servicing and Total 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 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 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 loans for which the Company has purchased the MSRs are subserviced on the Company’s behalf by other 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 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 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)	June 30, December 31, State 2019 2018 (in thousands) California $ 54,882,769 $ 51,377,441 Florida 26,270,860 22,650,926 Texas 25,589,761 23,648,042 Virginia 20,255,676 19,011,950 Maryland 15,300,464 13,774,011 All other states 192,171,479 168,831,502 $ 334,471,009 $ 299,293,872

Fair Value (Tables)

Fair Value (Tables)	6 Months Ended
	Jun. 30, 2019
Fair Value
Summary of financial statement items measured at estimated fair value on a recurring basis	June 30, 2019 Level 1 Level 2 Level 3 Total (in thousands) Assets: Short-term investments $ 75,542 $ — $ — $ 75,542 Loans held for sale at fair value — 3,288,408 217,998 3,506,406 Derivative assets: Interest rate lock commitments — — 113,311 113,311 Repurchase agreement derivatives — — 16,015 16,015 Forward purchase contracts — 70,300 — 70,300 Forward sales contracts — 5,494 — 5,494 MBS put options — 8,092 — 8,092 MBS call options — 8,320 — 8,320 Put options on interest rate futures purchase contracts 2,674 — — 2,674 Call options on interest rate futures purchase contracts 19,186 — — 19,186 Total derivative assets before netting 21,860 92,206 129,326 243,392 Netting — — — (75,276) Total derivative assets 21,860 92,206 129,326 168,116 Mortgage servicing rights at fair value — — 2,720,335 2,720,335 Investment in PennyMac Mortgage Investment Trust 1,637 — — 1,637 $ 99,039 $ 3,380,614 $ 3,067,659 $ 6,472,036 Liabilities: Excess servicing spread financing payable to PennyMac Mortgage Investment Trust at fair value $ — $ — $ 194,156 $ 194,156 Derivative liabilities: Interest rate lock commitments — — 1,535 1,535 Forward purchase contracts — 6,826 — 6,826 Forward sales contracts — 42,745 — 42,745 Total derivative liabilities before netting — 49,571 1,535 51,106 Netting — — — (35,154) Total derivative liabilities — 49,571 1,535 15,952 Mortgage servicing liabilities at fair value — — 12,948 12,948 $ — $ 49,571 $ 208,639 $ 223,056 December 31, 2018 Level 1 Level 2 Level 3 Total (in thousands) Assets: Short-term investments $ 117,824 $ — $ — $ 117,824 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 Mortgage servicing rights at fair value — — 2,820,612 2,820,612 Investment in PennyMac Mortgage Investment Trust 1,397 — — 1,397 $ 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 June 30, 2019 Net interest Repurchase Mortgage Loans held rate lock agreement servicing Assets for sale commitments (1) derivatives rights Total (in thousands) Balance, March 31, 2019 $ 455,533 $ 66,065 $ 24,632 $ 2,905,090 $ 3,451,320 Purchases (purchase adjustments) and issuances, net 891,146 119,880 3,662 (373) 1,014,315 Sales and repayments (656,033) — (11,136) — (667,169) Mortgage servicing rights resulting from loan sales — — — 183,331 183,331 Changes in fair value included in income arising from: Changes in instrument-specific credit risk (186) — — — (186) Other factors — 96,773 (1,143) (367,713) (272,083) (186) 96,773 (1,143) (367,713) (272,269) Transfers from Level 3 to Level 2 (471,599) — — — (471,599) Transfers to real estate acquired in settlement of loans (863) — — — (863) Transfers of interest rate lock commitments to loans held for sale — (170,942) — — (170,942) Balance, June 30, 2019 $ 217,998 $ 111,776 $ 16,015 $ 2,720,335 $ 3,066,124 Changes in fair value recognized during the quarter relating to assets still held at June 30, 2019 $ (3,911) $ 111,776 $ 244 $ (367,713) $ (259,604) (1) For the purpose of this table, the IRLC asset and liability positions are shown net. Quarter ended June 30, 2019 Excess servicing Mortgage spread servicing Liabilities financing liabilities Total (in thousands) Balance, March 31, 2019 $ 205,081 $ 7,844 $ 212,925 Issuance of excess servicing spread financing pursuant to a recapture agreement with PennyMac Mortgage Investment Trust 442 — 442 Accrual of interest 2,767 — 2,767 Repayments (10,530) — (10,530) Mortgage servicing liabilities resulting from loan sales — 6,838 6,838 Changes in fair value included in income (3,604) (1,734) (5,338) Balance, June 30, 2019 $ 194,156 $ 12,948 $ 207,104 Changes in fair value recognized during the quarter relating to liabilities still outstanding at June 30, 2019 $ (3,604) $ (1,734) $ (5,338) Quarter ended June 30, 2018 Net interest Repurchase Mortgage Loans held rate lock agreement servicing Assets for sale commitments (1) derivatives rights Total (in thousands) Balance, March 31, 2018 $ 460,399 $ 50,896 $ 20,974 $ 2,354,489 $ 2,886,758 Purchases and issuances, net 824,592 50,330 12,970 2,523 890,415 Sales and repayments (286,433) — (7,471) — (293,904) Mortgage servicing rights resulting from loan sales — — — 155,694 155,694 Changes in fair value included in income arising from: Changes in instrument-specific credit risk 3,727 — — — 3,727 Other factors — 5,590 (692) (26,549) (21,651) 3,727 5,590 (692) (26,549) (17,924) Transfers from Level 3 to Level 2 (665,298) — — — (665,298) Transfers to real estate acquired in settlement of loans (2,821) — — — (2,821) Transfers of interest rate lock commitments to loans held for sale — (51,127) — — (51,127) Balance, June 30, 2018 $ 334,166 $ 55,689 $ 25,781 $ 2,486,157 $ 2,901,793 Changes in fair value recognized during the quarter relating to assets still held at June 30, 2018 $ (3,584) $ 55,689 $ — $ (26,549) $ 25,556 (1) For the purpose of this table, the IRLC asset and liability positions are shown net. Quarter ended June 30, 2018 Excess servicing Mortgage spread servicing Liabilities financing liabilities Total (in thousands) Balance, March 31, 2018 $ 236,002 $ 12,063 $ 248,065 Issuance of excess servicing spread financing pursuant to a recapture agreement with PennyMac Mortgage Investment Trust 580 — 580 Accrual of interest 3,910 — 3,910 Repayments (12,018) — (12,018) Mortgage servicing liabilities resulting from loan sales — 1,770 1,770 Changes in fair value included in income 996 (3,580) (2,584) Balance, June 30, 2018 $ 229,470 $ 10,253 $ 239,723 Changes in fair value recognized during the quarter relating to liabilities still outstanding at June 30, 2018 $ 996 $ (3,580) $ (2,584) Six months ended June 30, 2019 Net interest Repurchase Mortgage Loans held rate lock agreement servicing Assets for sale commitments (1) derivatives rights Total (in thousands) Balance, December 31, 2018 $ 260,008 $ 49,338 $ 26,770 $ 2,820,612 $ 3,156,728 Purchases and issuances, net 1,675,408 176,863 13,517 227,399 2,093,187 Sales and repayments (832,335) — (22,572) — (854,907) Mortgage servicing rights resulting from loan sales — — — 299,082 299,082 Changes in fair value included in income arising from: Changes in instrument-specific credit risk (6,277) — — — (6,277) Other factors — 156,751 (1,700) (626,758) (471,707) (6,277) 156,751 (1,700) (626,758) (477,984) Transfers from Level 3 to Level 2 (876,762) — — — (876,762) Transfers to real estate acquired in settlement of loans (2,044) — — — (2,044) Transfers of interest rate lock commitments to loans held for sale — (271,176) — — (271,176) Balance, June 30, 2019 $ 217,998 $ 111,776 $ 16,015 $ 2,720,335 $ 3,066,124 Changes in fair value recognized during the period relating to assets still held at June 30, 2019 $ (4,380) $ 111,776 $ 244 $ (626,758) $ (519,118) (1) For the purpose of this table, the IRLC asset and liability positions are shown net. Six months ended June 30, 2019 Excess servicing Mortgage spread servicing Liabilities financing liabilities Total (in thousands) 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 950 — 950 Accrual of interest 5,833 — 5,833 Repayments (21,082) — (21,082) Mortgage servicing liabilities resulting from loan sales — 7,632 7,632 Changes in fair value included in income (7,655) (3,365) (11,020) Balance, June 30, 2019 $ 194,156 $ 12,948 $ 207,104 Changes in fair value recognized during the period relating to liabilities still outstanding at June 30, 2019 $ (7,655) $ (3,365) $ (11,020) Six months ended June 30, 2018 Net interest Repurchase Mortgage Loans held rate lock agreement servicing Assets for sale commitments (1) derivatives rights Total (in thousands) 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 1,471,861 115,928 23,721 30,129 1,641,639 Sales and repayments (890,527) — (7,478) — (898,005) Mortgage servicing rights resulting from loan sales — — — 299,604 299,604 Changes in fair value included in income arising from: Changes in instrument-specific credit risk (5,028) — — — (5,028) Other factors — (39,323) (1,118) 35,988 (4,453) (5,028) (39,323) (1,118) 35,988 (9,481) Transfers from Level 3 to Level 2 (1,021,530) — — — (1,021,530) Transfers to real estate acquired in settlement of loans (2,821) — — — (2,821) Transfers of interest rate lock commitments to loans held for sale — (79,188) — — (79,188) Balance, June 30, 2018 $ 334,166 $ 55,689 $ 25,781 $ 2,486,157 $ 2,901,793 Changes in fair value recognized during the period relating to assets still held at June 30, 2018 $ (5,061) $ 55,689 $ — $ 35,988 $ 86,616 (1) For the purpose of this table, the IRLC asset and liability positions are shown net. Six months ended June 30, 2018 Excess servicing Mortgage spread servicing Liabilities financing liabilities Total (in thousands) Balance, December 31, 2017 $ 236,534 $ 14,120 $ 250,654 Issuance of excess servicing spread financing pursuant to a recapture agreement with PennyMac Mortgage Investment Trust 1,484 — 1,484 Accrual of interest 7,844 — 7,844 Repayments (24,309) — (24,309) Mortgage servicing liabilities resulting from loan sales — 3,807 3,807 Changes in fair value included in income 7,917 (7,674) 243 Balance, June 30, 2018 $ 229,470 $ 10,253 $ 239,723 Changes in fair value recognized during the period relating to liabilities still outstanding at June 30, 2018 $ 7,917 $ (7,674) $ 243
Summary of net gains (losses) from changes in fair values included in earnings for financial statement items carried at fair value	Quarter ended June 30, 2019 2018 Net Net gains on Net Net gains on 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: Loans held for sale $ — $ 172,752 $ 172,752 $ — $ 56,861 $ 56,861 Mortgage servicing rights (367,713) — (367,713) (26,549) — (26,549) $ (367,713) $ 172,752 $ (194,961) $ (26,549) $ 56,861 $ 30,312 Liabilities: Excess servicing spread financing payable to PennyMac Mortgage Investment Trust $ 3,604 $ — $ 3,604 $ (996) $ — $ (996) Mortgage servicing liabilities 1,734 — 1,734 3,580 — 3,580 $ 5,338 $ — $ 5,338 $ 2,584 $ — $ 2,584 Six months ended June 30, 2019 2018 Net Net gains on Net Net gains on 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: Loans held for sale $ — $ 274,747 $ 274,747 $ — $ 50,743 $ 50,743 Mortgage servicing rights (626,758) — (626,758) 35,988 — 35,988 $ (626,758) $ 274,747 $ (352,011) $ 35,988 $ 50,743 $ 86,731 Liabilities: Excess servicing spread financing payable to PennyMac Mortgage Investment Trust $ 7,655 $ — $ 7,655 $ (7,917) $ — $ (7,917) Mortgage servicing liabilities 3,365 — 3,365 7,674 — 7,674 $ 11,020 $ — $ 11,020 $ (243) $ — $ (243)
Schedule of fair value and related principal amounts due upon maturity of assets and liabilities accounted for under the fair value option	June 30, 2019 December 31, 2018 Principal Principal amount amount Fair due upon Fair due upon Loans held for sale value maturity Difference value maturity Difference (in thousands) Current through 89 days delinquent $ 3,371,553 $ 3,202,149 $ 169,404 $ 2,324,203 $ 2,220,371 $ 103,832 90 days or more delinquent: Not in foreclosure 99,723 102,479 (2,756) 143,631 144,011 (380) In foreclosure 35,130 37,559 (2,429) 53,813 56,254 (2,441) $ 3,506,406 $ 3,342,187 $ 164,219 $ 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) June 30, 2019 $ — $ — $ 5,290 $ 5,290 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 June 30, Six months ended June 30, 2019 2018 2019 2018 (in thousands) Real estate acquired in settlement of loans $ 105 $ (26) $ 111 $ (42)
Quantitative summary of key inputs or assumptions used in the valuation of financial statement items, excluding MSR purchases	Quarter ended June 30, Six months ended June 30, 2019 2018 2019 2018 (Amount recognized and unpaid principal balance of underlying loans in thousands) MSR and pool characteristics: Amount recognized $ 183,331 $ 155,694 $ 299,082 $ 299,604 Unpaid principal balance of underlying loans $ 11,677,325 $ 11,142,743 $ 19,823,176 $ 21,305,059 Weighted average servicing fee rate (in basis points) 42 36 41 35 Key inputs (1): Pricing spread (2) Range 5.9% – 15.8% 7.3% – 13.8% 5.8% – 15.8% 7.3% – 14.1% Weighted average 8.7% 10.2% 8.8% 10.3% Annual total prepayment speed (3) Range 8.7% – 32.8% 4.0% – 61.8% 7.7% – 32.8% 3.9% – 61.8% Weighted average 13.8% 10.9% 14.4% 9.9% Life (in years) Range 2.6 – 7.8 1.1 – 11.5 2.6 – 7.8 1.1 – 11.6 Weighted average 6.1 7.3 6.0 7.7 Per-loan annual cost of servicing Range $78 – $100 $78 – $98 $78 – $100 $78 – $98 Weighted average $97 $90 $96 $90 (1) Weighted average inputs are based on the UPB of the underlying 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: June 30, 2019 December 31, 2018 (Carrying value, unpaid principal balance of underlying loans and effect on fair value amounts in thousands) MSR and pool characteristics: Carrying value $2,720,335 $2,820,612 Unpaid principal balance of underlying loans $220,700,176 $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 5.9% – 15.8% 5.8% – 16.1% Weighted average 8.6% 8.7% Effect on fair value of: 5% adverse change ($41,633) ($45,268) 10% adverse change ($81,948) ($89,073) 20% adverse change ($158,854) ($172,556) Prepayment speed (3): Range 9.3% – 33.0% 8.4% – 32.6% Weighted average 13.3% 9.9% Average life (in years): Range 1.5 – 7.4 1.5 – 7.9 Weighted average 6.0 7.2 Effect on fair value of: 5% adverse change ($60,349) ($47,687) 10% adverse change ($118,029) ($93,626) 20% adverse change ($226,021) ($180,623) Annual per-loan cost of servicing: Range $77 – $100 $78 – $99 Weighted average $96 $93 Effect on fair value of: 5% adverse change ($23,403) ($22,944) 10% adverse change ($46,806) ($45,888) 20% adverse change ($93,611) ($91,775) (1) Weighted average inputs are based on the UPB of the underlying 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	June 30, December 31, 2019 2018 MSL and pool characteristics: Carrying value (in thousands) $ $ Unpaid principal balance of underlying 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	June 30, December 31, 2019 2018 Carrying value (in thousands) $194,156 $216,110 ESS and pool characteristics: Unpaid principal balance of underlying loans (in thousands) $21,757,903 $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 8.7% – 15.2% 8.2% – 29.5% Weighted average 11.1% 9.7% Average life (in years): Range 2.9 – 7.3 1.6 – 7.6 Weighted average 6.2 6.8 (1) Weighted average inputs are based on the UPB of the underlying 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) June 30, 2019 December 31, 2018 Pull-through rate: Range 12.2% – 100% 16.6% – 100% Weighted average 83.4% 84.1% Mortgage servicing rights value expressed as: Servicing fee multiple: Range 1.1 – 5.9 1.5 – 5.5 Weighted average 3.8 3.8 Percentage of unpaid principal balance: Range 0.3% – 3.0% 0.4% – 3.2% Weighted average 1.6% 1.5% (1) Weighted average inputs are based on the committed amounts.
Loans held for sale
Fair Value
Quantitative summary of key inputs or assumptions used in the valuation of financial statement items	Key inputs (1) June 30, 2019 December 31, 2018 Discount rate: Range 3.3% – 9.2% 2.8% – 9.2% Weighted average 3.4% 2.9% Twelve-month projected housing price index change: Range 2.2% – 3.4% 2.2% – 5.0% Weighted average 2.6% 3.5% Voluntary prepayment / resale speed (2): Range 0.1% – 20.5% 0.1% – 21.8% Weighted average 16.4% 20.1% Total prepayment speed (3): Range 0.1% – 40.1% 0.1% – 40.5% Weighted average 30.8% 37.7% (1) Weighted average inputs are based on the fair value of 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.

Loans Held for Sale at Fair V_2

Loans Held for Sale at Fair Value (Tables)	6 Months Ended
	Jun. 30, 2019
Loans Held for Sale at Fair Value
Summary of loans held for sale at fair value	June 30, December 31, Loan type 2019 2018 (in thousands) Government-insured or guaranteed $ 3,024,387 $ 2,116,126 Conventional conforming 250,499 144,872 Jumbo 13,522 641 Home equity lines of credit 35 — Purchased from Ginnie Mae pools serviced by the Company 207,741 250,585 Repurchased pursuant to representations and warranties 10,222 9,423 $ 3,506,406 $ 2,521,647 Fair value of loans pledged to secure: Assets sold under agreements to repurchase $ 2,925,266 $ 1,923,857 Mortgage loan participation purchase and sale agreements 549,824 555,001 $ 3,475,090 $ 2,478,858

Derivative Financial Instrume_2

Derivative Financial Instruments (Tables)	6 Months Ended
	Jun. 30, 2019
Derivative Financial Instruments
Summary of derivative financial instruments	June 30, 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 4,660,741 $ 113,311 $ 1,535 2,805,400 $ 50,507 $ 1,169 Repurchase agreement derivatives 16,015 — 26,770 — Used for hedging purposes: Forward purchase contracts 19,497,698 70,300 6,826 6,657,026 35,916 215 Forward sales contracts 14,276,156 5,494 42,745 6,890,046 437 26,762 MBS put options 12,775,000 8,092 — 4,635,000 720 — MBS call options 2,250,000 8,320 — 1,450,000 2,135 — Put options on interest rate futures purchase contracts 2,835,000 2,674 — 3,085,000 866 — Call options on interest rate futures purchase contracts 3,687,500 19,186 — 1,512,500 5,965 — Treasury futures purchase contracts 486,100 — — 835,000 — — Treasury futures sale contracts 1,550,000 — — 1,450,000 — — Interest rate swap futures purchase contracts 2,900,000 — — 625,000 — — Total derivatives before netting 243,392 51,106 123,316 28,146 Netting (75,276) (35,154) (26,969) (25,082) $ 168,116 $ 15,952 $ 96,347 $ 3,064 Collateral received from derivative counterparties $ (40,122) $ (1,887)
Summary of the notional value activity for derivative contracts used to hedge the IRLCs and inventory of loans held for sale at fair value and MSRs	Quarter ended June 30, 2019 Notional Notional amount amount beginning of Dispositions/ end of Instrument quarter Additions expirations quarter (in thousands) Forward purchase contracts 9,313,389 84,608,506 (74,424,197) 19,497,698 Forward sale contracts 7,583,005 93,901,535 (87,208,384) 14,276,156 MBS put options 9,425,000 28,450,000 (25,100,000) 12,775,000 MBS call options 3,350,000 2,250,000 (3,350,000) 2,250,000 Put options on interest rate futures purchase contracts 3,350,000 2,897,500 (3,412,500) 2,835,000 Call options on interest rate futures purchase contracts 2,250,000 6,915,000 (5,477,500) 3,687,500 Put options on interest rate futures sale contracts — 8,827,500 (8,827,500) — Treasury futures purchase contracts 1,810,000 2,700,200 (4,024,100) 486,100 Treasury futures sale contracts 1,075,000 4,499,100 (4,024,100) 1,550,000 Interest rate swap futures purchase contracts 1,025,000 1,875,000 — 2,900,000 Quarter ended June 30, 2018 Notional Notional amount amount beginning of Dispositions/ end of Instrument quarter Additions expirations quarter (in thousands) Forward purchase contracts 6,543,783 47,789,665 (47,715,560) 6,617,888 Forward sale contracts 6,924,346 59,686,130 (59,503,274) 7,107,202 MBS put options 3,750,000 4,375,000 (5,450,000) 2,675,000 MBS call options — 5,450,000 (5,450,000) — Put options on interest rate futures purchase contracts 2,800,000 6,177,500 (7,125,000) 1,852,500 Call options on interest rate futures purchase contracts 225,000 1,075,000 (500,000) 800,000 Put options on interest rate futures sale contracts — 7,125,000 (7,125,000) — Call options on interest rate futures sale contracts — 500,000 (500,000) — Treasury futures purchase contracts 510,000 2,991,300 (2,666,300) 835,000 Treasury futures sale contracts 1,250,000 2,866,300 (2,666,300) 1,450,000 Interest rate swap futures purchase contracts 465,000 — — 465,000 Six months ended June 30, 2019 Notional Notional amount amount beginning of Dispositions/ end of Instrument period Additions expirations period (in thousands) Forward purchase contracts 6,657,026 137,230,351 (124,389,679) 19,497,698 Forward sale contracts 6,890,046 153,575,022 (146,188,912) 14,276,156 MBS put options 4,635,000 47,610,000 (39,470,000) 12,775,000 MBS call options 1,450,000 6,750,000 (5,950,000) 2,250,000 Put options on interest rate futures purchase contracts 3,085,000 9,572,500 (9,822,500) 2,835,000 Call options on interest rate futures purchase contracts 1,512,500 11,377,800 (9,202,800) 3,687,500 Put options on interest rate futures sale contracts — 18,962,800 (18,962,800) — Treasury futures purchase contracts 835,000 6,811,400 (7,160,300) 486,100 Treasury futures sale contracts 1,450,000 7,260,300 (7,160,300) 1,550,000 Interest rate swap futures purchase contracts 625,000 2,275,000 — 2,900,000 Six months ended June 30, 2018 Notional Notional amount amount beginning of Dispositions/ end of Instrument period Additions expirations period (in thousands) Forward purchase contracts 4,920,883 93,120,450 (91,423,445) 6,617,888 Forward sale contracts 5,204,796 116,041,682 (114,139,276) 7,107,202 MBS put options 4,925,000 8,875,000 (11,125,000) 2,675,000 MBS call options — 11,125,000 (11,125,000) — Put options on interest rate futures purchase contracts 2,125,000 11,702,500 (11,975,000) 1,852,500 Call options on interest rate futures purchase contracts 100,000 1,450,000 (750,000) 800,000 Put options on interest rate futures sale contracts — 11,975,000 (11,975,000) — Call options on interest rate futures sale contracts — 750,000 (750,000) — Treasury futures purchase contracts 100,000 4,896,200 (4,161,200) 835,000 Treasury futures sale contracts — 6,272,500 (4,822,500) 1,450,000 Interest rate swap futures purchase contracts 1,400,000 465,000 (1,400,000) 465,000 Interest rate swap futures sales contracts — 1,400,000 (1,400,000) —
Summaries of derivative assets and related netting amounts	June 30, 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 $ 113,311 $ — $ 113,311 $ 50,507 $ — $ 50,507 Repurchase agreement derivatives 16,015 — 16,015 26,770 — 26,770 129,326 — 129,326 77,277 — 77,277 Derivatives subject to master netting arrangements: Forward purchase contracts 70,300 — 70,300 35,916 — 35,916 Forward sale contracts 5,494 — 5,494 437 — 437 MBS put options 8,092 — 8,092 720 — 720 MBS call options 8,320 — 8,320 2,135 — 2,135 Put options on interest rate futures purchase contracts 2,674 — 2,674 866 — 866 Call options on interest rate futures purchase contracts 19,186 — 19,186 5,965 — 5,965 Netting (75,276) (75,276) — (26,969) (26,969) 114,066 (75,276) 38,790 46,039 (26,969) 19,070 $ 243,392 $ (75,276) $ 168,116 $ 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	June 30, 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 $ 113,311 $ — $ — $ 113,311 $ 50,507 $ — $ — $ 50,507 RJ O'Brien 21,860 — — 21,860 6,831 — — 6,831 Deutsche Bank 16,015 — — 16,015 26,770 — — 26,770 Wells Fargo Bank, N.A. 5,516 — — 5,516 3,707 — — 3,707 Goldman Sachs 4,112 — — 4,112 — — — — Nomura Securities International, Inc. 2,834 — — 2,834 — — — — Bank of America, N.A. 2,427 — — 2,427 2,781 — — 2,781 Mizuho Securities 1,746 — — 1,746 — — — — Citibank, N.A. — — — — 2,488 — — 2,488 JPMorgan Chase Bank, N.A. — — — — 1,399 — — 1,399 Others 295 — — 295 1,864 — — 1,864 $ 168,116 $ — $ — $ 168,116 $ 96,347 $ — $ — $ 96,347
Summary of net derivative liabilities and assets sold under agreements to repurchase and related netting amounts	June 30, 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 $ 1,535 $ — $ 1,535 $ 1,169 $ — $ 1,169 Derivatives subject to a master netting arrangement: Forward purchase contracts 6,826 — 6,826 215 — 215 Forward sale contracts 42,745 — 42,745 26,762 — 26,762 Netting — (35,154) (35,154) — (25,082) (25,082) 49,571 (35,154) 14,417 26,977 (25,082) 1,895 Total derivatives 51,106 (35,154) 15,952 28,146 (25,082) 3,064 Assets sold under agreements to repurchase: Amount outstanding 2,748,374 — 2,748,374 1,935,200 — 1,935,200 Unamortized debt issuance premiums and costs, net (1,290) — (1,290) (1,341) — (1,341) 2,747,084 — 2,747,084 1,933,859 — 1,933,859 $ 2,798,190 $ (35,154) $ 2,763,036 $ 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	June 30, 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 $ 1,535 $ — $ — $ 1,535 $ 1,169 $ — $ — $ 1,169 Credit Suisse First Boston Mortgage Capital LLC 939,988 (939,988) — — 691,030 (690,766) — 264 Bank of America, N.A. 419,594 (419,594) — — 170,820 (170,820) — — Citibank, N.A. 351,072 (350,235) — 837 14,960 (14,960) — — Morgan Stanley Bank, N.A. 326,564 (317,269) — 9,295 77,687 (77,687) — — JPMorgan Chase Bank, N.A. 320,478 (320,478) — — 54,326 (54,326) — — BNP Paribas 190,654 (190,654) — — 149,675 (149,482) — 193 Royal Bank of Canada 128,681 (128,681) — — 35,181 (35,181) — — Deutsche Bank 81,475 (81,475) — — 741,978 (741,978) — — Federal National Mortgage Association 2,168 — — 2,168 — — — — Others 2,117 — — 2,117 1,438 — — 1,438 $ 2,764,326 $ (2,748,374) $ — $ 15,952 $ 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 June 30, Six months ended June 30, Derivative activity Income statement line 2019 2018 2019 2018 (in thousands) Interest rate lock commitments Net gains on loans held for sale at fair value $ 45,711 $ 4,793 $ 62,438 $ (2,583) Repurchase agreement derivatives Interest expense $ (1,143) $ (692) $ (1,700) $ (1,118) Hedged item: Interest rate lock commitments and loans held for sale Net gains on loans held for sale at fair value $ (67,154) $ 1,855 $ (101,822) $ 89,602 Mortgage servicing rights Net loan servicing fees –C hange in fair value of mortgage servicing rights and mortgage servicing liabilities $ 203,180 $ (24,289) $ 337,737 $ (127,882)

Mortgage Servicing Rights and_2

Mortgage Servicing Rights and Mortgage Servicing Liabilities (Tables)	6 Months Ended
	Jun. 30, 2019
Mortgage Servicing Rights and Mortgage Servicing Liabilities
Schedule of activity in MSRs carried at fair value	Quarter ended June 30, Six months ended June 30, 2019 2018 2019 2018 (in thousands) Balance at beginning of period $ 2,905,090 $ 2,354,489 $ 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 2,905,090 2,354,489 2,820,612 2,120,436 Additions: Purchases (purchase adjustments) (373) 2,523 227,399 30,129 Resulting from loan sales 183,331 155,694 299,082 299,604 182,958 158,217 526,481 329,733 Change in fair value due to: Changes in inputs used in valuation model (1) (256,449) 44,796 (418,087) 175,245 Other changes in fair value (2) (111,264) (71,345) (208,671) (139,257) Total change in fair value (367,713) (26,549) (626,758) 35,988 Balance at end of period $ 2,720,335 $ 2,486,157 $ 2,720,335 $ 2,486,157 June 30, December 31, 2019 2018 (in thousands) Fair value of mortgage servicing rights pledged to secure Assets sold under agreements to repurchase and Notes payable $ 2,710,342 $ 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 June 30, Six months ended June 30, 2019 2018 2019 2018 (in thousands) Balance at beginning of period $ 7,844 $ 12,063 $ 8,681 $ 14,120 Mortgage servicing liabilities resulting from loan sales 6,838 1,770 7,632 3,807 Changes in fair value due to: Changes in valuation inputs used in valuation model (1) 2,756 2,537 6,057 5,180 Other changes in fair value (2) (4,490) (6,117) (9,422) (12,854) Total change in fair value (1,734) (3,580) (3,365) (7,674) Balance at end of period $ 12,948 $ 10,253 $ 12,948 $ 10,253 (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 June 30, Six months ended June 30, 2019 2018 2019 2018 (in thousands) Contractual servicing fees $ 180,753 $ 138,871 $ 347,543 $ 274,354 Other fees: Late charges 9,015 7,049 18,827 14,508 Other 2,612 1,814 4,273 3,376 $ 192,380 $ 147,734 $ 370,643 $ 292,238

Leases (Tables)

Leases (Tables)	6 Months Ended
	Jun. 30, 2019
Leases
Summary of Company's leases	Quarter ended Six months ended June 30, 2019 June 30, 2019 (dollars in thousands) Lease expense: Operating leases $ 3,232 $ 6,461 Short-term leases 214 431 Sublease income (27) (59) Net lease expense included in Occupancy and equipment $ 3,419 $ 6,833 Other information: Cash payments for operating leases $ 3,884 $ 7,730 Operating lease right-of-use assets recognized $ 87 $ 58,713 Weighted averages: Remaining lease term (in years) 6.4 Discount rate
Schedule of maturities of operating lease liabilities	Twelve months ended June 30, Operating leases (in thousands) 2020 $ 15,671 2021 14,859 2022 12,739 2023 11,837 2024 9,903 Thereafter 19,591 Total lease payments 84,600 Less imputed interest (11,139) Total $ 73,461

Borrowings (Tables)

Borrowings (Tables)	6 Months Ended
	Jun. 30, 2019
Borrowings
Summary of financial data pertaining to assets sold under agreements to repurchase	Quarter ended June 30, Six months ended June 30, 2019 2018 2019 2018 (dollars in thousands) Average balance of assets sold under agreements to repurchase $ 1,988,920 $ 1,574,012 $ 1,715,846 $ 1,608,535 Weighted average interest rate (1) 4.35 % 3.90 % 4.40 % 3.74 % Total interest expense (2) $ 19,645 $ 4,535 $ 28,280 $ 11,267 Maximum daily amount outstanding $ 2,748,375 $ 2,028,713 $ 2,748,375 $ 2,380,121 June 30, December 31, 2019 2018 (dollars in thousands) Carrying value: Unpaid principal balance $ 2,748,374 $ 1,935,200 Unamortized debt issuance premiums and costs, net (1,290) (1,341) $ 2,747,084 $ 1,933,859 Weighted average interest rate 4.01 % 4.22 % Available borrowing capacity (3): Committed $ 80,406 $ 695,767 Uncommitted 2,156,220 2,354,033 $ 2,236,626 $ 3,049,800 Fair value of assets securing repurchase agreements: Loans held for sale $ 2,925,266 $ 1,923,857 Assets purchased from PennyMac Mortgage Investment Trust under agreements to resell $ 118,716 $ 131,025 Servicing advances (4) $ 151,384 $ 162,895 Mortgage servicing rights (4) $ 2,618,932 $ 2,807,333 Margin deposits placed with counterparties (5) $ 3,750 $ 3,750 (1) Excludes the effect of amortization of net premiums totaling $2.0 million and $9.4 million for the quarter and six months ended June 30, 2019, respectively, and $10.8 million and $18.8 million for the quarter and six months ended June 30, 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. The Company included $3.9 million and $12.5 million of such incentives as reductions in Interest expense during the quarters ended June 30, 2019 and 2018, respectively, and $13.2 million and $22.7 million during the six months ended June 30, 2019 and 2018, respectively. The master repurchase agreement expires on August 21, 2019, unless extended or terminated earlier at the option of the lender. The lender substantially curtailed the incentives provided under the master repurchase agreement through an orderly wind down of the incentive program during the quarter ended June 30, 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 June 30, 2019 Balance (dollars in thousands) Within 30 days $ 385,095 Over 30 to 90 days 2,201,740 Over 90 to 180 days 6,539 Over 180 days to one year 155,000 Total assets sold under agreements to repurchase $ 2,748,374 Weighted average maturity (in months) 2.4
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 $ 1,314,198 April 26, 2020 April 26, 2020 Credit Suisse First Boston Mortgage Capital LLC $ 73,613 August 20, 2019 April 24, 2020 Bank of America, N.A. $ 109,665 August 4, 2019 October 28, 2019 JP Morgan Chase Bank, N.A. $ 63,772 August 30, 2019 October 11, 2019 Morgan Stanley Bank, N.A. $ 25,753 August 23, 2019 August 23, 2019 Citibank, N.A. $ 24,944 August 6, 2019 August 6, 2019 BNP Paribas $ 11,892 August 2, 2019 August 2, 2019 Royal Bank of Canada $ 10,481 August 1, 2019 September 30, 2019 Deutsche Bank AG $ 9,863 August 21, 2019 August 21, 2019
Summary of mortgage loan participations	Quarter ended June 30, Six months ended June 30, 2019 2018 2019 2018 (dollars in thousands) Average balance $ 251,997 $ 246,368 $ 244,374 $ 231,076 Weighted average interest rate (1) 3.63 % 3.21 % 3.65 % 3.06 % Total interest expense $ 2,419 $ 2,190 $ 4,730 $ 3,917 Maximum daily amount outstanding $ 523,279 $ 528,368 $ 548,038 $ 528,368 (1) Excludes the effect of amortization of facility fees totaling $135,000 and $212,000 for the quarters ended June 30, 2019 and 2018, respectively, and $270,000 and $383,000 for the six months ended June 30, 2019 and 2018, respectively. June 30, December 31, 2019 2018 (dollars in thousands) Carrying value: Unpaid principal balance $ 523,279 $ 532,466 Unamortized debt issuance costs (102) (215) $ 523,177 $ 532,251 Weighted average interest rate 3.65 % 3.77 % Fair value of loans pledged to secure mortgage loan participation purchase and sale agreements $ 549,824 $ 555,001
Summary of note payable	Quarter ended June 30, Six months ended June 30, 2019 2018 2019 2018 (dollars in thousands) Average balance $ 1,300,000 $ 1,150,000 $ 1,300,000 $ 1,069,890 Weighted average interest rate (1) 5.27 % 5.33 % 5.26 % 5.44 % Total interest expense $ 18,039 $ 16,348 $ 36,034 $ 34,570 Maximum daily amount outstanding $ 1,300,000 $ 1,150,000 $ 1,300,000 $ 1,150,000 (1) Excludes the effect of amortization of debt issuance costs and non-utilization fees totaling $0.9 million and $ 1.1 million for the quarters ended June 30, 2019 and 2018, respectively, and $ 1.8 million and $5.5 million for the six months ended June 30, 2019 and 2018, respectively. June 30, December 31, 2019 2018 (dollars in thousands) Carrying value: Unpaid principal balance $ 1,300,000 $ 1,300,000 Unamortized debt issuance costs (6,820) (7,709) $ 1,293,180 $ 1,292,291 Weighted average interest rate 5.18 % 5.07 % Unused amount $ 150,000 $ 150,000 Assets pledged to secure notes payable: Cash $ 184,278 $ 108,174 Servicing advances (1) $ 151,384 $ 162,895 Mortgage servicing rights (1) $ 2,710,342 $ 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 June 30, Six months ended June 30, 2019 2018 2019 2018 (dollars in thousands) Average balance $ 10,135 $ 14,544 $ 8,406 $ 18,703 Weighted average interest rate 4.39 % 3.92 % 4.39 % 3.78 % Total interest expense $ 136 $ 152 $ 202 $ 322 Maximum daily amount outstanding $ 28,295 $ 16,435 $ 28,295 $ 20,971 June 30, December 31, 2019 2018 (dollars in thousands) Unpaid principal balance $ 28,295 $ 6,605 Weighted average interest rate 4.39 % 4.46 % Assets pledged to secure obligations under capital lease: Furniture, fixtures and equipment $ 23,971 $ 16,281 Capitalized software $ 15,097 $ 1,017
Summary of roll forward of Excess Servicing Spread Financing	Quarter ended June 30, Six months ended June 30, 2019 2018 2019 2018 (in thousands) Balance at beginning of period $ 205,081 $ 236,002 $ 216,110 $ 236,534 Issuances of excess servicing spread to PennyMac Mortgage Investment Trust pursuant to recapture agreement 442 580 950 1,484 Accrual of interest 2,767 3,910 5,833 7,844 Repayment (10,530) (12,018) (21,082) (24,309) Change in fair value (3,604) 996 (7,655) 7,917 Balance at end of period $ 194,156 $ 229,470 $ 194,156 $ 229,470

Liability for Losses Under Re_2

Liability for Losses Under Representations and Warranties (Tables)	6 Months Ended
	Jun. 30, 2019
Liability for Losses Under Representations and Warranties
Summary of repurchase activity	Quarter ended June 30, Six months ended June 30, 2019 2018 2019 2018 (in thousands) Balance at beginning of period $ 17,982 $ 20,429 $ 21,155 $ 20,053 Provision for losses on loans sold: Resulting from sales of loans 1,647 1,216 2,714 2,708 Reduction in liability due to change in estimate (920) (1,359) (5,130) (2,472) Incurred losses, net — 301 (30) 298 Balance at end of period $ 18,709 $ 20,587 $ 18,709 $ 20,587 Unpaid principal balance of loans subject to representations and warranties at end of period $ 127,670,206 $ 133,585,457

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	6 Months Ended
	Jun. 30, 2019
Stockholders' Equity.
Summary of share repurchase activity	Quarter ended June 30, Six months ended June 30, Cumulative 2019 2018 2019 2018 total (1) (in thousands) Shares of common stock repurchased 51 236 51 236 816 Cost of shares of common stock repurchased $ 1,056 $ 4,826 $ 1,056 $ 4,826 $ 14,948 Amounts represent the total shares of common stock repurchased under the stock repurchase program through June 30, 2019.

Noncontrolling Interest (Tables

Noncontrolling Interest (Tables)	6 Months Ended
	Jun. 30, 2019
Noncontrolling Interest.
Noncontrolling Interest	Quarter ended Six months ended June 30, 2018 June 30, 2018 (in thousands) Net income attributable to PennyMac Financial Services, Inc. common stockholders $ 17,837 $ 34,456 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. $ 13,265 $ 28,124 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 737 1,485

Net Gains on Loans Held for S_2

Net Gains on Loans Held for Sale (Tables)	6 Months Ended
	Jun. 30, 2019
Net Gains on Loans Held for Sale
Net Gains on Loans Held for Sale	Quarter ended June 30, Six months ended June 30, 2019 2018 2019 2018 (in thousands) From non-affiliates: Cash loss: Loans $ (13,579) $ (110,242) $ (54,821) $ (292,043) Hedging activities (73,145) (12,567) (82,072) 91,829 (86,724) (122,809) (136,893) (200,214) Non-cash gain: Mortgage servicing rights and mortgage servicing liabilities resulting from loan sales 176,493 153,924 291,450 295,797 Provision for losses relating to representations and warranties: Pursuant to loan sales (1,647) (1,216) (2,714) (2,708) Reduction in liability due to change in estimate 920 1,359 5,130 2,472 Change in fair value of loans and derivatives held at period end: Interest rate lock commitments 45,711 4,793 62,438 (2,583) Loans (29,522) (4,454) (29,686) 14,510 Hedging derivatives 5,991 14,422 (19,750) (2,227) 111,222 46,019 169,975 105,047 From PennyMac Mortgage Investment Trust 36,311 14,927 62,334 27,313 $ 147,533 $ 60,946 $ 232,309 $ 132,360

Net Interest Income (Tables)

Net Interest Income (Tables)	6 Months Ended
	Jun. 30, 2019
Net Interest Income
Summary of net interest income	Quarter ended June 30, Six months ended June 30, 2019 2018 2019 2018 (in thousands) Interest income: From non-affiliates: Cash and short-term investments $ 2,706 $ 579 $ 4,639 $ 1,187 Loans held for sale at fair value 34,366 34,434 65,709 61,041 Placement fees relating to custodial funds 32,136 18,193 55,397 31,617 69,208 53,206 125,745 93,845 From PennyMac Mortgage Investment Trust—Assets purchased from PennyMac Mortgage Investment Trust under agreements to resell 1,692 1,898 3,488 3,874 70,900 55,104 129,233 97,719 Interest expense: To non-affiliates: Assets sold under agreements to repurchase (1) 19,645 4,535 28,280 11,267 Mortgage loan participation purchase and sale agreements 2,419 2,190 4,730 3,917 Notes payable 18,039 16,348 36,034 34,570 Obligations under capital lease 136 152 202 322 Interest shortfall on repayments of mortgage loans serviced for Agency securitizations 8,214 4,546 12,525 9,376 Interest on mortgage loan impound deposits 1,704 935 2,863 2,065 50,157 28,706 84,634 61,517 To PennyMac Mortgage Investment Trust—Excess servicing spread financing at fair value 2,767 3,910 5,833 7,844 52,924 32,616 90,467 69,361 $ 17,976 $ 22,488 $ 38,766 $ 28,358 In 2017, the Company entered into a master repurchase agreement that provides the Company with incentives to finance mortgage loans approved for satisfying certain consumer relief characteristics as provided in the agreement. The Company included $3.9 million and $12.5 million of such incentives as reductions in Interest expense during the quarter ended June 30, 2019 and 2018, respectively, and $13.2 million and $22.7 million during the six months ended June 30, 2019 and 2018, respectively. The master repurchase agreement expires on August 21, 2019, unless extended or terminated earlier at the option of the lender. The lender substantially curtailed the incentives provided under the master repurchase agreement through an orderly wind down of the incentive program during the quarter ended June 30, 2019.

Stock-based Compensation (Table

Stock-based Compensation (Tables)	6 Months Ended
	Jun. 30, 2019
Stock-based Compensation
Summary of the stock-based compensation activity	Quarter ended June 30, Six months ended June 30, 2019 2018 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 — 774 648 774 Stock options exercised 29 33 118 229 Time-based RSUs vested — 11 291 244 Compensation expense $ 5,652 $ 6,063 $ 10,183 $ 12,234

Earnings Per Share of Common _2

Earnings Per Share of Common Stock (Tables)	6 Months Ended
	Jun. 30, 2019
Earnings Per Share of Common Stock
Summary of basic and diluted earnings per share calculations	Quarter ended June 30, Six months ended June 30, 2019 2018 2019 2018 (in thousands, except per share amounts) Basic earnings per share of common stock: Net income attributable to common stockholders $ 72,696 $ 17,837 $ 118,831 $ 34,456 Weighted average shares of common stock outstanding 78,335 24,959 77,996 24,399 Basic earnings per share of common stock $ 0.93 $ 0.71 $ 1.52 $ 1.41 Diluted earnings per share of common stock: Net income attributable to common stockholders $ 72,696 $ 17,837 $ 118,831 $ 34,456 Net income attributable to dilutive stock-based compensation units — 614 — 1,842 Net income attributable to PennyMac Class A units exchangeable to Class A common stock, net of income taxes — 36,766 — 72,396 Net income attributable to common stockholders for diluted earnings per share $ 72,696 $ 55,217 $ 118,831 $ 108,694 Weighted average shares of common stock outstanding applicable to basic earnings per share 78,335 24,959 77,996 24,399 Effect of dilutive shares: Common shares issuable under stock-based compensation plan 983 1,381 1,305 1,965 PennyMac Class A units exchangeable to Class A common stock — 52,485 — 52,583 Weighted average shares of common stock applicable to diluted earnings per share 79,318 78,825 79,301 78,947 Diluted earnings per share of common stock $ 0.92 $ 0.70 $ 1.50 $ 1.38
Schedule of anti-dilutive shares outstanding	Quarter ended June 30, Six months ended June 30, 2019 2018 2019 2018 (in thousands except for weighted-average exercise price) Performance-based RSUs (1) 1,811 1,190 1,547 1,003 Time-based RSUs — 209 1 132 Stock options (2) 982 1,299 845 629 Total anti-dilutive stock-based compensation 2,793 2,698 2,393 1,764 Weighted average exercise price of anti-dilutive stock options (2) $ 18.34 $ 17.79 $ 18.34 $ 17.79 (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 period.

Supplemental Cash Flow Inform_2

Supplemental Cash Flow Information (Tables)	6 Months Ended
	Jun. 30, 2019
Supplemental Cash Flow Information
Schedule of supplemental cash flow information	Six months ended June 30, 2019 2018 (in thousands) Cash paid for interest $ 73,905 $ 85,540 Cash paid for income taxes (refunds received), net $ 261 $ (416) Non-cash investing activity: Mortgage servicing rights resulting from loan sales $ 299,082 $ 299,604 Mortgage servicing liabilities resulting from loan sales $ 7,632 $ 3,807 Unsettled portion of MSR acquisitions $ 9,457 $ — Operating right-of-use assets recognized upon the adoption of ASU 2016-02 $ 58,713 $ — Non-cash financing activity: Issuance of Excess servicing spread payable to PennyMac Mortgage Investment Trust pursuant to a recapture agreement $ 950 $ 1,484 Issuance of common stock and Class A common stock in settlement of director fees $ 136 $ 160

Regulatory Capital and Liquid_2

Regulatory Capital and Liquidity Requirements (Tables)	6 Months Ended
	Jun. 30, 2019
Regulatory Capital and Liquidity Requirements
Summary of agencies' capital and liquidity requirements by each agency	June 30, 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 $ 1,922,068 $ 565,849 $ 1,788,430 $ 514,089 Ginnie Mae – PLS $ 1,676,194 $ 833,567 $ 1,535,826 $ 733,342 Ginnie Mae – PennyMac $ 1,945,850 $ 916,923 $ 1,786,430 $ 806,676 HUD – PLS $ 1,676,194 $ 2,500 $ 1,535,826 $ 2,500 Liquidity Fannie Mae & Freddie Mac – PLS $ 300,366 $ 77,699 $ 271,802 $ 70,775 Ginnie Mae – PLS $ 300,366 $ 209,988 $ 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)	6 Months Ended
	Jun. 30, 2019
Segments
Schedule of change in expense allocation, by segment	Quarter ended June 30, 2019 Mortgage Banking Investment Production Servicing Total Management Total (in thousands) Revenue: (1) Net loan servicing fees $ — $ 59,134 $ 59,134 $ — $ 59,134 Net gains on loans held for sale at fair value 124,860 22,673 147,533 — 147,533 Loan origination fees 36,924 — 36,924 — 36,924 Fulfillment fees from PennyMac Mortgage Investment Trust 29,590 — 29,590 — 29,590 Net interest income (expense): Interest income 18,900 52,000 70,900 — 70,900 Interest expense 13,898 39,015 52,913 11 52,924 5,002 12,985 17,987 (11) 17,976 Management fees — — — 8,832 8,832 Other 117 1,332 1,449 1,539 2,988 Total net revenue 196,493 96,124 292,617 10,360 302,977 Expenses 98,249 98,797 197,046 6,341 203,387 Income before provision for income taxes $ 98,244 $ (2,673) $ 95,571 $ 4,019 $ 99,590 Segment assets at quarter end $ 3,556,575 $ 4,823,468 $ 8,380,043 $ 18,333 $ 8,398,376 (1) All revenues are from external customers. Quarter ended June 30, 2018 Mortgage Banking Investment Production Servicing Total Management Total (in thousands) Revenue: (1) Net loan servicing fees $ — $ 113,689 $ 113,689 $ — $ 113,689 Net gains on loans held for sale at fair value 33,966 26,980 60,946 — 60,946 Loan origination fees 24,428 — 24,428 — 24,428 Fulfillment fees from PennyMac Mortgage Investment Trust 14,559 — 14,559 — 14,559 Net interest income (expense): Interest income 16,874 38,230 55,104 — 55,104 Interest expense 1,025 31,576 32,601 15 32,616 15,849 6,654 22,503 (15) 22,488 Management fees — — — 5,664 5,664 Carried Interest from Investment Funds — — — (168) (168) Other 536 728 1,264 1,428 2,692 Total net revenue 89,338 148,051 237,389 6,909 244,298 Expenses 70,320 93,483 163,803 5,797 169,600 Income before provision for income taxes $ 19,018 $ 54,568 $ 73,586 $ 1,112 $ 74,698 Segment assets at quarter end (2) $ 2,280,251 $ 4,542,815 $ 6,823,066 $ 10,633 $ 6,833,699 (1) All revenues are from external customers. (2) Excludes parent Company assets, which consist of $8.0 million of cash. Six months ended June 30, 2019 Mortgage Banking Investment Production Servicing Total Management Total (in thousands) Revenue: (1) Net loan servicing fees $ — $ 139,705 $ 139,705 $ — $ 139,705 Net gains on loans held for sale at fair value 191,581 40,728 232,309 — 232,309 Loan origination fees 60,854 — 60,854 — 60,854 Fulfillment fees from PennyMac Mortgage Investment Trust 57,164 — 57,164 — 57,164 Net interest income (expense): Interest income 33,269 95,964 129,233 — 129,233 Interest expense 17,813 72,636 90,449 18 90,467 15,456 23,328 38,784 (18) 38,766 Management fees — — — 16,080 16,080 Other 605 2,097 2,702 3,102 5,804 Total net revenue 325,660 205,858 531,518 19,164 550,682 Expenses 180,410 197,368 377,778 13,023 390,801 Income before provision for income taxes $ 145,250 $ 8,490 $ 153,740 $ 6,141 $ 159,881 Segment assets at period end $ 3,556,575 $ 4,823,468 $ 8,380,043 $ 18,333 $ 8,398,376 (1) All revenues are from external customers. Six months ended June 30, 2018 Mortgage Banking Investment Production Servicing Total Management Total (in thousands) Revenue: (1) Net loan servicing fees $ — $ 230,478 $ 230,478 $ — $ 230,478 Net gains on loans held for sale at fair value 70,164 62,196 132,360 — 132,360 Loan origination fees 48,991 — 48,991 — 48,991 Fulfillment fees from PennyMac Mortgage Investment Trust 26,503 — 26,503 — 26,503 Net interest income (expense): Interest income 31,122 66,597 97,719 — 97,719 Interest expense 3,127 66,203 69,330 31 69,361 27,995 394 28,389 (31) 28,358 Management fees — — — 11,439 11,439 Carried Interest from Investment Funds — — — (348) (348) Other 852 1,123 1,975 2,743 4,718 Total net revenue 174,505 294,191 468,696 13,803 482,499 Expenses 138,317 184,748 323,065 11,740 334,805 Income before provision for income taxes $ 36,188 $ 109,443 $ 145,631 $ 2,063 $ 147,694 Segment assets at period end (2) $ 2,280,251 $ 4,542,815 $ 6,823,066 $ 10,633 $ 6,833,699 (1) All revenues are from external customers. (2) Excludes parent Company assets, which consist of $8.0 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	Jun. 30, 2019	Jun. 30, 2019	Dec. 31, 2018
Recently Issued Accounting Pronouncements
Lease liability		$ 73,461	$ 73,461
Right-of-use assets obtained in exchange for lease obligations		87	58,713
Deferred rent		$ 151,504	$ 151,504	$ 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		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Sales Revenue | Customer Concentration Risk
Concentration of Risk
Percentage of total net revenue	31.00%	18.00%	31.00%	16.00%

Transactions with Affiliates -

Transactions with Affiliates - Correspondent Production (Details) - USD ($) $ in Thousands	Sep. 12, 2016	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 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
Total of gain on sale of loans and MSR recapture		$ 36,311	$ 14,927	$ 62,334	$ 27,313
Sale of loans held for sale to PMT				2,218,721	1,427,637
Fulfillment fee revenue		29,590	14,559	57,164	26,503
Proceeds from sale of mortgage loans held for sale to PennyMac Mortgage Investment Trust				2,218,721	1,427,637
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 | Loan Lending
Lending activity between the entity and affiliate
Net gain on loans held for sale to PMT		37,719	15,863	64,865	29,674
Mortgage servicing rights and excess servicing spread recapture incurred		(1,408)	(936)	(2,531)	(2,361)
Total of gain on sale of loans and MSR recapture		36,311	14,927	62,334	27,313
Sale of loans held for sale to PMT		1,334,211	646,311	2,218,721	1,427,637
Fulfillment fee revenue		29,590	14,559	57,164	26,503
Unpaid principal balance of loans fulfilled for PMT		10,741,078	5,396,370	18,876,630	9,622,001
Sourcing fees paid		3,155	2,891	5,149	5,532
Unpaid principal balance of loans purchased from PMT		10,514,390	9,639,495	17,161,728	18,487,368
Proceeds from sale of mortgage loans held for sale to PennyMac Mortgage Investment Trust		1,334,211	646,311	2,218,721	1,427,637
Tax service fee		$ 3,102	$ 1,542	$ 5,345	$ 2,750

Transactions with Affiliates _2

Transactions with Affiliates - Mortgage Loan Servicing (Details)	Sep. 12, 2016USD ($)item	Jun. 30, 2019USD ($)	Jun. 30, 2018USD ($)	Jun. 30, 2019USD ($)	Jun. 30, 2018USD ($)
Summary of mortgage loan servicing fees earned
Loan servicing fees		$ 180,753,000	$ 138,871,000	$ 347,543,000	$ 274,354,000
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 | Loan Servicing Agreement
Transactions with Affiliates
Servicing fees amount per month for current loans	$ 30
Maximum | 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		11,568,000	9,431,000	22,138,000	20,450,000
PMT | Loans acquired for sale at fair value
Summary of mortgage loan servicing fees earned
Loan servicing fees		385,000	245,000	624,000	423,000
PMT | Loans at fair value
Summary of mortgage loan servicing fees earned
Loan servicing fees		617,000	1,172,000	1,080,000	4,257,000
PMT | Mortgage servicing rights
Summary of mortgage loan servicing fees earned
Loan servicing fees		10,566,000	8,014,000	20,434,000	15,770,000
PMT | Other income.
Summary of mortgage loan servicing fees earned
Property management fees		$ 102,000	$ 112,000	$ 225,000	$ 211,000

Transactions with Affiliates _3

Transactions with Affiliates - Management Fees (Details) - USD ($)	Sep. 12, 2016	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Management Fee Revenue Abstract
Management fees		$ 8,832,000	$ 5,664,000	$ 16,080,000	$ 11,439,000
PMT
Management Fee Revenue Abstract
Management fees		8,832,000	5,728,000	16,080,000	11,424,000
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		6,839,000	5,728,000	12,948,000	11,424,000
Performance incentive		1,993,000		3,132,000
Management fees		$ 8,832,000	$ 5,728,000	$ 16,080,000	$ 11,424,000
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	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 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		$ 1,885,000	$ 782,000	$ 3,811,000	$ 2,476,000
Payments and settlements during the period		28,031,000	15,957,000	43,220,000	23,615,000
Common overhead incurred
Reimbursement of common overhead and expenses incurred on behalf of affiliates
Reimbursement of common overhead and expenses incurred by the Company		1,276,000	1,176,000	2,512,000	2,177,000
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	240,000	240,000
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		$ 489,000	$ (514,000)	$ 1,059,000	$ 59,000

Transactions with Affiliates _5

Transactions with Affiliates - Other Transactions, Conditional Reimbursement (Details) - PMT - Conditional Reimbursement - USD ($)	3 Months Ended	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2019	Aug. 04, 2009
Conditional reimbursement
Payments received	$ 144,000	$ 219,000
Maximum
Conditional reimbursement
Conditional reimbursement			$ 2,900,000

Transactions with Affiliates _6

Transactions with Affiliates - Investing Activities (Details)	Dec. 19, 2016USD ($)item	Jun. 30, 2019USD ($)shares	Jun. 30, 2018USD ($)	Jun. 30, 2019USD ($)shares	Jun. 30, 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		75,000
Repurchase agreement with PennyMac Mortgage Investment Trust:
Assets purchased from PennyMac Mortgage Investment Trust under agreements to resell pledged to creditors		$ 118,716,000		$ 118,716,000		$ 131,025,000
Activity during the year:
Interest income on receivable from PennyMac Mortgage Investment Trust		1,692,000	$ 1,898,000	3,488,000	$ 3,874,000
Activity during the period:
Dividends received from PennyMac Mortgage Investment Trust		35,000	36,000	71,000	71,000
Change in fair value of investment in Common shares of PennyMac Mortgage Investment Trust		84,000	72,000	240,000	219,000
Balance at end of period		119,000	108,000	311,000	290,000
Loans and Leases Receivable, Related Parties		118,716,000		118,716,000		131,025,000
Fair value of PennyMac Mortgage Investment Trust shares		$ 1,637,000		$ 1,637,000		$ 1,397,000
Number of shares | shares		75,000		75,000		75,000
PMT | PennyMac Holdings, L L C Repurchase Agreement
Activity during the year:
Interest income on receivable from PennyMac Mortgage Investment Trust		$ 1,692,000	$ 1,898,000	$ 3,488,000	$ 3,874,000

Transactions with Affiliates _7

Transactions with Affiliates - Financing Activities (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018	Feb. 01, 2013
Financing activities:
Issuance pursuant to recapture agreement			$ 950,000	$ 1,484,000
Repayments			21,082,000	24,309,000
PMT
Financing activities:
Gain (loss) recognized	$ 3,604,000	$ (996,000)	7,655,000	(7,917,000)
Interest expense	2,767,000	3,910,000	5,833,000	7,844,000
Excess servicing spread financing at fair value payable to affiliate	194,156,000		194,156,000		$ 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	(3,604,000)	996,000	(7,655,000)	7,917,000
Excess servicing spread financing | PMT
Financing activities:
Issuance pursuant to recapture agreement	442,000	580,000	950,000	1,484,000
Repayments	10,530,000	12,018,000	21,082,000	24,309,000
Gain (loss) recognized	3,604,000	(996,000)	7,655,000	(7,917,000)
Interest expense	2,767,000	3,910,000	5,833,000	7,844,000
Excess servicing spread recapture recognized	393,000	$ 524,000	882,000	$ 1,354,000
Excess servicing spread financing at fair value payable to affiliate	$ 194,156,000		$ 194,156,000		$ 216,110,000

Transactions with Affiliates _8

Transactions with Affiliates - Amounts due from Affiliate (Details) - PMT - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Amounts due from affiliate
Fulfillment fees	$ 10,454	$ 10,006
Management fees	8,526	6,559
Allocated expenses	8,335	9,066
Servicing fees	4,030	4,841
Correspondent production fees	2,662	2,071
Conditional Reimbursement	582	801
Interest on assets purchased under agreements to resell	106	120
Total due from affiliate	34,695	33,464
Payable to affiliate
Deposits made by PMT	64,120	100,554
MSR Recapture Payable to PMT	112	179
Other expenses	1,373	3,898
Payable to affiliates	$ 65,605	$ 104,631

Transactions with Affiliates _9

Transactions with Affiliates - Exchanged Private National Mortgage Acceptance Company, LLC Unitholders (Details) - USD ($) $ in Millions	6 Months Ended	12 Months Ended
	Jun. 30, 2019	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		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Cash flows:
Sales proceeds	$ 12,650,318	$ 11,729,024	$ 21,186,748	$ 22,832,809
Servicing fees received	140,416	117,818	277,564	230,909
Net recoveries of servicing advances	(8,012)	$ (14,082)	(32,188)	$ (24,719)
Period end information:
Unpaid principal balance of loans outstanding	153,688,804		153,688,804		$ 145,224,596
30-89 days	6,892,489		6,892,489		6,222,864
90 days or more - Not in foreclosure	2,322,270		2,322,270		2,208,083
90 days or more - In foreclosure	664,870		664,870		720,894
90 days or more - Foreclosed	21,405		21,405		24,243
Bankruptcy	$ 1,178,689		$ 1,178,689		$ 970,329

Loan Sales and Servicing Acti_4

Loan Sales and Servicing Activities - Summary of Mortgage Servicing Portfolio (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Mortgage servicing portfolio
Loans held for sale	$ 3,342,187	$ 2,420,636
Total loans serviced	334,471,009	299,293,872
Subserviced for the Company	290,071	414,219
Delinquent loans:
30 days	8,338,064	7,203,168
60 days	2,151,749	2,096,619
90 days or more - Not in foreclosure	3,380,637	3,319,607
90 days or more - In foreclosure	1,030,300	1,154,518
90 days or more - Foreclosed	169,207	209,870
Total delinquent mortgage loans	15,069,957	13,983,782
Bankruptcy	1,858,193	1,522,189
Custodial funds managed by the Company	7,260,896	4,003,986
Servicing rights owned
Mortgage servicing portfolio
Loans held for sale	3,342,187	2,420,636
Total loans serviced	225,339,784	204,635,718
Subserviced for the Company	290,071	414,219
Delinquent loans:
30 days	7,697,720	6,677,179
60 days	2,034,567	1,983,381
90 days or more - Not in foreclosure	3,172,188	3,102,492
90 days or more - In foreclosure	942,838	1,027,493
90 days or more - Foreclosed	31,689	33,493
Total delinquent mortgage loans	13,879,002	12,824,038
Bankruptcy	1,737,309	1,415,106
Custodial funds managed by the Company	5,366,007	3,033,658
Contract servicing and subservicing
Mortgage servicing portfolio
Total loans serviced	109,131,225	94,658,154
Delinquent loans:
30 days	640,344	525,989
60 days	117,182	113,238
90 days or more - Not in foreclosure	208,449	217,115
90 days or more - In foreclosure	87,462	127,025
90 days or more - Foreclosed	137,518	176,377
Total delinquent mortgage loans	1,190,955	1,159,744
Bankruptcy	120,884	107,083
Custodial funds managed by the Company	1,894,889	970,328
Non affiliated entities
Mortgage servicing portfolio
Originated	153,688,804	145,224,596
Purchased	68,308,793	56,990,486
Total loans serviced, excluding loans held for sale	221,997,597	202,215,082
Non affiliated entities | Servicing rights owned
Mortgage servicing portfolio
Originated	153,688,804	145,224,596
Purchased	68,308,793	56,990,486
Total loans serviced, excluding loans held for sale	221,997,597	202,215,082
Affiliated entities
Mortgage servicing portfolio
Advised entities	109,131,225	94,658,154
Affiliated entities | Contract servicing and subservicing
Mortgage servicing portfolio
Advised entities	$ 109,131,225	$ 94,658,154

Loan Sales and Servicing Acti_5

Loan Sales and Servicing Activities - Geographical Distribution of Loans (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Loan Sales and Servicing Activities
Total loans serviced	$ 334,471,009	$ 299,293,872
California
Loan Sales and Servicing Activities
Total loans serviced	54,882,769	51,377,441
Florida
Loan Sales and Servicing Activities
Total loans serviced	26,270,860	22,650,926
Texas
Loan Sales and Servicing Activities
Total loans serviced	25,589,761	23,648,042
Virginia
Loan Sales and Servicing Activities
Total loans serviced	20,255,676	19,011,950
Maryland
Loan Sales and Servicing Activities
Total loans serviced	15,300,464	13,774,011
All other states
Loan Sales and Servicing Activities
Total loans serviced	$ 192,171,479	$ 168,831,502

Fair Value - Financial Statemen

Fair Value - Financial Statement Items Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Assets:
Short-term investments at fair value	$ 75,542	$ 117,824
Loans held for sale	3,506,406	2,521,647
Derivative assets:
Derivative asset, before netting	243,392	123,316
Netting	(75,276)	(26,969)
Total derivative assets	168,116	96,347
Mortgage servicing rights at fair value	2,710,342	2,807,333
Derivative liabilities:
Derivative liability, before netting	51,106	28,146
Netting	(35,154)	(25,082)
Net amounts of liabilities presented in the consolidated balance sheet	15,952	3,064
Mortgage servicing liabilities	12,948	8,681
PMT
Derivative assets:
Investment in PennyMac Mortgage Investment Trust	1,637	1,397
Interest rate lock commitments
Derivative assets:
Total derivative assets	113,311	50,507
Forward contracts | Purchases
Derivative assets:
Derivative asset, before netting	70,300	35,916
Derivative liabilities:
Derivative liability, before netting	6,826	215
Forward contracts | Sales
Derivative assets:
Derivative asset, before netting	5,494	437
Derivative liabilities:
Derivative liability, before netting	42,745	26,762
MBS put options
Derivative assets:
Derivative asset, before netting	8,092	720
MBS call options
Derivative assets:
Derivative asset, before netting	8,320	2,135
Call options on interest rate futures | Purchases
Derivative assets:
Derivative asset, before netting	19,186	5,965
Put options on interest rate futures | Purchases
Derivative assets:
Derivative asset, before netting	2,674	866
Recurring basis
Assets:
Short-term investments at fair value	75,542	117,824
Loans held for sale	3,506,406	2,521,647
Derivative assets:
Derivative asset, before netting	243,392	123,316
Netting	(75,276)	(26,969)
Total derivative assets	168,116	96,347
Mortgage servicing rights at fair value	2,720,335	2,820,612
Total assets	6,472,036	5,557,827
Derivative liabilities:
Derivative liability, before netting	51,106	28,146
Netting	(35,154)	(25,082)
Net amounts of liabilities presented in the consolidated balance sheet	15,952	3,064
Mortgage servicing liabilities	12,948	8,681
Total liabilities	223,056	227,855
Recurring basis | PMT
Derivative assets:
Investment in PennyMac Mortgage Investment Trust	1,637	1,397
Derivative liabilities:
Excess servicing spread financing at fair value to affiliate	194,156	216,110
Recurring basis | Interest rate lock commitments
Derivative assets:
Derivative asset, before netting	113,311	50,507
Derivative liabilities:
Derivative liability, before netting	1,535	1,169
Recurring basis | Repurchase agreement derivatives
Derivative assets:
Derivative asset, before netting	16,015	26,770
Recurring basis | Forward contracts | Purchases
Derivative assets:
Derivative asset, before netting	70,300	35,916
Derivative liabilities:
Derivative liability, before netting	6,826	215
Recurring basis | Forward contracts | Sales
Derivative assets:
Derivative asset, before netting	5,494	437
Derivative liabilities:
Derivative liability, before netting	42,745	26,762
Recurring basis | MBS put options
Derivative assets:
Derivative asset, before netting	8,092	720
Recurring basis | MBS call options
Derivative assets:
Derivative asset, before netting	8,320	2,135
Recurring basis | Call options on interest rate futures | Purchases
Derivative assets:
Derivative asset, before netting	19,186	5,965
Recurring basis | Put options on interest rate futures | Purchases
Derivative assets:
Derivative asset, before netting	2,674	866
Recurring basis | Level 1
Assets:
Short-term investments at fair value	75,542	117,824
Derivative assets:
Derivative asset, before netting	21,860	6,831
Total derivative assets	21,860	6,831
Total assets	99,039	126,052
Recurring basis | Level 1 | PMT
Derivative assets:
Investment in PennyMac Mortgage Investment Trust	1,637	1,397
Recurring basis | Level 1 | Call options on interest rate futures | Purchases
Derivative assets:
Derivative asset, before netting	19,186	5,965
Recurring basis | Level 1 | Put options on interest rate futures | Purchases
Derivative assets:
Derivative asset, before netting	2,674	866
Recurring basis | Level 2
Assets:
Loans held for sale	3,288,408	2,261,639
Derivative assets:
Derivative asset, before netting	92,206	39,208
Total derivative assets	92,206	39,208
Total assets	3,380,614	2,300,847
Derivative liabilities:
Derivative liability, before netting	49,571	26,977
Net amounts of liabilities presented in the consolidated balance sheet	49,571	26,977
Total liabilities	49,571	26,977
Recurring basis | Level 2 | Forward contracts | Purchases
Derivative assets:
Derivative asset, before netting	70,300	35,916
Derivative liabilities:
Derivative liability, before netting	6,826	215
Recurring basis | Level 2 | Forward contracts | Sales
Derivative assets:
Derivative asset, before netting	5,494	437
Derivative liabilities:
Derivative liability, before netting	42,745	26,762
Recurring basis | Level 2 | MBS put options
Derivative assets:
Derivative asset, before netting	8,092	720
Recurring basis | Level 2 | MBS call options
Derivative assets:
Derivative asset, before netting	8,320	2,135
Recurring basis | Level 3
Assets:
Loans held for sale	217,998	260,008
Derivative assets:
Derivative asset, before netting	129,326	77,277
Total derivative assets	129,326	77,277
Mortgage servicing rights at fair value	2,720,335	2,820,612
Total assets	3,067,659	3,157,897
Derivative liabilities:
Derivative liability, before netting	1,535	1,169
Net amounts of liabilities presented in the consolidated balance sheet	1,535	1,169
Mortgage servicing liabilities	12,948	8,681
Total liabilities	208,639	225,960
Recurring basis | Level 3 | PMT
Derivative liabilities:
Excess servicing spread financing at fair value to affiliate	194,156	216,110
Recurring basis | Level 3 | Interest rate lock commitments
Derivative assets:
Derivative asset, before netting	113,311	50,507
Derivative liabilities:
Derivative liability, before netting	1,535	1,169
Recurring basis | Level 3 | Repurchase agreement derivatives
Derivative assets:
Derivative asset, before netting	$ 16,015	$ 26,770

Fair Value - Level 3 Input Roll

Fair Value - Level 3 Input Roll Forward, Recurring Basis (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Jan. 01, 2018
Roll forward of liabilities measured using Level 3 inputs on a recurring basis
Mortgage servicing liabilities resulting from loan sales			$ 7,632	$ 3,807
Excess servicing spread financing
Roll forward of liabilities measured using Level 3 inputs on a recurring basis
Balance at the beginning of the period	$ 205,081	$ 236,002	216,110	236,534
Accrual of interest on excess servicing spread financing	2,767	3,910	5,833	7,844
Repayment	(10,530)	(12,018)	(21,082)	(24,309)
Changes in fair value included in income	(3,604)	996	(7,655)	7,917
Balance at the end of the period	194,156	229,470	194,156	229,470
Recurring basis
Roll forward of assets measured using Level 3 inputs on a recurring basis
Balance at the beginning of the period	3,451,320	2,886,758	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				1,641,639
Purchases and issuances, net	1,014,315	890,415	2,093,187
Sales and repayments	(667,169)	(293,904)	(854,907)	(898,005)
Mortgage servicing rights resulting from loan sales	183,331	155,694	299,082	299,604
Changes in fair value included in income arising from:
Changes in instrument specific credit risk	(186)	3,727	(6,277)	(5,028)
Other factors	(272,083)	(21,651)	(471,707)	(4,453)
Total changes in fair value included in income	(272,269)	(17,924)	(477,984)	(9,481)
Transfers from mortgage loans held for sale from Level 3 to Level 2	(471,599)	(665,298)	(876,762)	(1,021,530)
Transfers to real estate acquired in settlement of loans	(863)	(2,821)	(2,044)	(2,821)
Transfers from interest rate lock commitments to loans held for sale	(170,942)	(51,127)	(271,176)	(79,188)
Balance at the end of the period	3,066,124	2,901,793	3,066,124	2,901,793
Changes in fair value recognized during the period relating to assets still held at the end of the period	(259,604)	25,556	(519,118)	86,616
Roll forward of liabilities measured using Level 3 inputs on a recurring basis
Balance at the beginning of the period	212,925	248,065	224,791	250,654
Issuances	442	580	950	1,484
Accrual of interest on excess servicing spread financing	2,767	3,910	5,833	7,844
Repayment	(10,530)	(12,018)	(21,082)	(24,309)
Mortgage servicing liabilities resulting from loan sales	6,838	1,770	7,632	3,807
Changes in fair value included in income	(5,338)	(2,584)	(11,020)	243
Balance at the end of the period	207,104	239,723	207,104	239,723
Changes in fair value recognized during the period relating to liability still outstanding at the end of the period	(5,338)	(2,584)	(11,020)	243
Recurring basis | Excess servicing spread financing
Roll forward of liabilities measured using Level 3 inputs on a recurring basis
Balance at the beginning of the period	205,081	236,002	216,110	236,534
Issuances	442	580	950	1,484
Accrual of interest on excess servicing spread financing	2,767	3,910	5,833	7,844
Repayment	(10,530)	(12,018)	(21,082)	(24,309)
Changes in fair value included in income	(3,604)	996	(7,655)	7,917
Balance at the end of the period	194,156	229,470	194,156	229,470
Changes in fair value recognized during the period relating to liability still outstanding at the end of the period	(3,604)	996	(7,655)	7,917
Recurring basis | Mortgage servicing liabilities
Roll forward of liabilities measured using Level 3 inputs on a recurring basis
Balance at the beginning of the period	7,844	12,063	8,681	14,120
Mortgage servicing liabilities resulting from loan sales	6,838	1,770	7,632	3,807
Changes in fair value included in income	(1,734)	(3,580)	(3,365)	(7,674)
Balance at the end of the period	12,948	10,253	12,948	10,253
Changes in fair value recognized during the period relating to liability still outstanding at the end of the period	(1,734)	(3,580)	(3,365)	(7,674)
Recurring basis | Loans held for sale
Roll forward of assets measured using Level 3 inputs on a recurring basis
Balance at the beginning of the period	455,533	460,399	260,008	782,211
Balance after reclassification					782,211
Purchases				1,471,861
Purchases and issuances, net	891,146	824,592	1,675,408
Sales and repayments	(656,033)	(286,433)	(832,335)	(890,527)
Changes in fair value included in income arising from:
Changes in instrument specific credit risk	(186)	3,727	(6,277)	(5,028)
Total changes in fair value included in income	(186)	3,727	(6,277)	(5,028)
Transfers from mortgage loans held for sale from Level 3 to Level 2	(471,599)	(665,298)	(876,762)	(1,021,530)
Transfers to real estate acquired in settlement of loans	(863)	(2,821)	(2,044)	(2,821)
Balance at the end of the period	217,998	334,166	217,998	334,166
Changes in fair value recognized during the period relating to assets still held at the end of the period	(3,911)	(3,584)	(4,380)	(5,061)
Recurring basis | Interest rate lock commitments
Roll forward of assets measured using Level 3 inputs on a recurring basis
Balance at the beginning of the period	66,065	50,896	49,338	58,272
Balance after reclassification					58,272
Purchases				115,928
Purchases and issuances, net	119,880	50,330	176,863
Changes in fair value included in income arising from:
Other factors	96,773	5,590	156,751	(39,323)
Total changes in fair value included in income	96,773	5,590	156,751	(39,323)
Transfers from interest rate lock commitments to loans held for sale	(170,942)	(51,127)	(271,176)	(79,188)
Balance at the end of the period	111,776	55,689	111,776	55,689
Changes in fair value recognized during the period relating to assets still held at the end of the period	111,776	55,689	111,776	55,689
Recurring basis | Repurchase agreement derivatives
Roll forward of assets measured using Level 3 inputs on a recurring basis
Balance at the beginning of the period	24,632	20,974	26,770	10,656
Balance after reclassification					10,656
Purchases				23,721
Purchases and issuances, net	3,662	12,970	13,517
Sales and repayments	(11,136)	(7,471)	(22,572)	(7,478)
Changes in fair value included in income arising from:
Other factors	(1,143)	(692)	(1,700)	(1,118)
Total changes in fair value included in income	(1,143)	(692)	(1,700)	(1,118)
Balance at the end of the period	16,015	25,781	16,015	25,781
Changes in fair value recognized during the period relating to assets still held at the end of the period	244		244
Recurring basis | Mortgage servicing rights
Roll forward of assets measured using Level 3 inputs on a recurring basis
Balance at the beginning of the period	2,905,090	2,354,489	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				30,129
Purchases and issuances, net	(373)	2,523	227,399
Mortgage servicing rights resulting from loan sales	183,331	155,694	299,082	299,604
Changes in fair value included in income arising from:
Other factors	(367,713)	(26,549)	(626,758)	35,988
Total changes in fair value included in income	(367,713)	(26,549)	(626,758)	35,988
Balance at the end of the period	2,720,335	2,486,157	2,720,335	2,486,157
Changes in fair value recognized during the period relating to assets still held at the end of the period	$ (367,713)	$ (26,549)	$ (626,758)	$ 35,988

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		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 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	$ 5,338	$ 2,584	$ 11,020	$ (243)
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	5,338	2,584	11,020	(243)
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	3,604	(996)	7,655	(7,917)
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	3,604	(996)	7,655	(7,917)
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	1,734	3,580	3,365	7,674
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	1,734	3,580	3,365	7,674
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	(194,961)	30,312	(352,011)	86,731
Assets | Net gains on 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	172,752	56,861	274,747	50,743
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	(367,713)	(26,549)	(626,758)	35,988
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	172,752	56,861	274,747	50,743
Loans held for sale | Net gains on 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	172,752	56,861	274,747	50,743
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	(367,713)	(26,549)	(626,758)	35,988
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	$ (367,713)	$ (26,549)	$ (626,758)	$ 35,988

Fair Value - Fair Value Option

Fair Value - Fair Value Option Maturities, Recurring Basis (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Fair value
Total fair value	$ 3,506,406	$ 2,521,647
Recurring basis
Fair value
Total fair value	3,506,406	2,521,647
Loans held for sale | Recurring basis
Fair value
Current through 89 days delinquent	3,371,553	2,324,203
Not in foreclosure	99,723	143,631
In foreclosure	35,130	53,813
Total fair value	3,506,406	2,521,647
Principal amount due upon maturity
Current through 89 days delinquent	3,202,149	2,220,371
Not in foreclosure	102,479	144,011
In foreclosure	37,559	56,254
Total principal amount due upon maturity	3,342,187	2,420,636
Difference
Current through 89 days delinquent	169,404	103,832
Not in foreclosure	(2,756)	(380)
In foreclosure	(2,429)	(2,441)
Total difference	$ 164,219	$ 101,011

Fair Value - Measurement Basis,

Fair Value - Measurement Basis, Nonrecurring (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Total gains (losses) on assets measured at estimated fair values on a nonrecurring basis
Notes Payable	$ 1,293,180		$ 1,293,180		$ 1,292,291
Nonrecurring basis
Financial statement items measured at fair value on a nonrecurring basis
Real estate acquired in settlement of loans	5,290		5,290		2,150
Total gains (losses) on assets measured at estimated fair values on a nonrecurring basis
Real estate acquired in settlement of loans	105	$ (26)	111	$ (42)
Nonrecurring basis | Level 3
Financial statement items measured at fair value on a nonrecurring basis
Real estate acquired in settlement of loans	5,290		5,290		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		$ 1,300,000

Fair Value - Level 3 Unobservab

Fair Value - Level 3 Unobservable Inputs, Mortgage Loans and IRLC (Details) - item	Jun. 30, 2019	Dec. 31, 2018
Loans held for sale | Discount rate | Level 3 | Minimum
Excess servicing spread financing
Input	3.3	2.8
Loans held for sale | Discount rate | Level 3 | Maximum
Excess servicing spread financing
Input	9.2	9.2
Loans held for sale | Discount rate | Level 3 | Weighted average
Excess servicing spread financing
Input	3.4	2.9
Loans held for sale | Twelve-month projected housing price index Change | Level 3 | Minimum
Excess servicing spread financing
Input	2.2	2.2
Loans held for sale | Twelve-month projected housing price index Change | Level 3 | Maximum
Excess servicing spread financing
Input	3.4	5
Loans held for sale | Twelve-month projected housing price index Change | Level 3 | Weighted average
Excess servicing spread financing
Input	2.6	3.5
Loans held for sale | Prepayment/resale speed | Level 3 | Minimum
Excess servicing spread financing
Input	0.1	0.1
Loans held for sale | Prepayment/resale speed | Level 3 | Maximum
Excess servicing spread financing
Input	20.5	21.8
Loans held for sale | Prepayment/resale speed | Level 3 | Weighted average
Excess servicing spread financing
Input	16.4	20.1
Loans held for sale | Total prepayment speed | Level 3 | Minimum
Excess servicing spread financing
Input	0.1	0.1
Loans held for sale | Total prepayment speed | Level 3 | Maximum
Excess servicing spread financing
Input	40.1	40.5
Loans held for sale | Total prepayment speed | Level 3 | Weighted average
Excess servicing spread financing
Input	30.8	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	83.4	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	5.9	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	3	3.2
Interest rate lock commitments | Percentage of unpaid principal balance | Level 3 | Weighted average
Excess servicing spread financing
Input	1.6	1.5
Repurchase agreement derivatives
Excess servicing spread financing
Acceptance rate (as a percent)	98.50%	97.00%

Fair Value - Level 3 Unobserv_2

Fair Value - Level 3 Unobservable Inputs, Mortgage Servicing Rights - Initial Recognition (Details)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2019USD ($)item	Jun. 30, 2018USD ($)item	Jun. 30, 2019USD ($)item	Jun. 30, 2018USD ($)item	Dec. 31, 2018USD ($)item
Mortgage servicing rights
Inputs
Amount recognized | $	$ 183,331,000	$ 155,694,000	$ 299,082,000	$ 299,604,000
Fair Values | Mortgage servicing rights | Level 3 | Minimum
Inputs:
Annual per-loan cost of servicing | $			77		$ 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 | $			$ 96		$ 93
Fair Values | Mortgage servicing rights | Pricing spread | Level 3 | Minimum
Inputs:
Input	5.9		5.9		5.8
Fair Values | Mortgage servicing rights | Pricing spread | Level 3 | Maximum
Inputs:
Input	15.8		15.8		16.1
Fair Values | Mortgage servicing rights | Pricing spread | Level 3 | Weighted average
Inputs:
Input	8.6		8.6		8.7
Fair Values | Mortgage servicing rights | Annual total prepayment speed | Level 3 | Minimum
Inputs:
Input	9.3		9.3		8.4
Fair Values | Mortgage servicing rights | Annual total prepayment speed | Level 3 | Maximum
Inputs:
Input	33		33		32.6
Fair Values | Mortgage servicing rights | Annual total prepayment speed | Level 3 | Weighted average
Inputs:
Input	13.3		13.3		9.9
Fair Values | Mortgage servicing rights | Life | Level 3 | Minimum
Inputs:
Input	1.5		1.5		1.5
Fair Values | Mortgage servicing rights | Life | Level 3 | Maximum
Inputs:
Input	7.4		7.4		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 | $	$ 183,331,000	155,694,000
Unpaid principal balance of underlying loans | $	$ 11,677,325,000	$ 11,142,743,000
Weighted-average servicing fee rate (as a percent)	0.42%	0.36%
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 | $	$ 97	$ 90
Fair Values | MSRs at the time of initial recognition, excluding MSR purchases | Pricing spread | Level 3 | Minimum
Inputs:
Input	5.9	7.3	5.9	7.3
Fair Values | MSRs at the time of initial recognition, excluding MSR purchases | Pricing spread | Level 3 | Maximum
Inputs:
Input	15.8	13.8	15.8	13.8
Fair Values | MSRs at the time of initial recognition, excluding MSR purchases | Pricing spread | Level 3 | Weighted average
Inputs:
Input	8.7	10.2	8.7	10.2
Fair Values | MSRs at the time of initial recognition, excluding MSR purchases | Annual total prepayment speed | Level 3 | Minimum
Inputs:
Input	8.7	4	8.7	4
Fair Values | MSRs at the time of initial recognition, excluding MSR purchases | Annual total prepayment speed | Level 3 | Maximum
Inputs:
Input	32.8	61.8	32.8	61.8
Fair Values | MSRs at the time of initial recognition, excluding MSR purchases | Annual total prepayment speed | Level 3 | Weighted average
Inputs:
Input	13.8	10.9	13.8	10.9
Fair Values | MSRs at the time of initial recognition, excluding MSR purchases | Life | Level 3 | Minimum
Inputs:
Input	2.6	1.1	2.6	1.1
Fair Values | MSRs at the time of initial recognition, excluding MSR purchases | Life | Level 3 | Maximum
Inputs:
Input	7.8	11.5	7.8	11.5
Fair Values | MSRs at the time of initial recognition, excluding MSR purchases | Life | Level 3 | Weighted average
Inputs:
Input	6.1	7.3	6.1	7.3
Fair Values | Mortgage servicing rights | Level 3
Inputs
Amount recognized | $			$ 299,082,000,000	$ 299,604,000,000
Unpaid principal balance of underlying loans | $			$ 19,823,176,000	$ 21,305,059,000
Weighted-average servicing fee rate (as a percent)			4100.00%	3500.00%
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	98
Fair Values | Mortgage servicing rights | Level 3 | Weighted average
Inputs:
Annual per-loan cost of servicing | $			$ 96	$ 90
Fair Values | Mortgage servicing rights | Pricing spread | Level 3 | Minimum
Inputs:
Input	5.8	7.3	5.8	7.3
Fair Values | Mortgage servicing rights | Pricing spread | Level 3 | Maximum
Inputs:
Input	15.8	14.1	15.8	14.1
Fair Values | Mortgage servicing rights | Pricing spread | Level 3 | Weighted average
Inputs:
Input	8.8	10.3	8.8	10.3
Fair Values | Mortgage servicing rights | Annual total prepayment speed | Level 3 | Minimum
Inputs:
Input	7.7	3.9	7.7	3.9
Fair Values | Mortgage servicing rights | Annual total prepayment speed | Level 3 | Maximum
Inputs:
Input	32.8	61.8	32.8	61.8
Fair Values | Mortgage servicing rights | Annual total prepayment speed | Level 3 | Weighted average
Inputs:
Input	14.4	9.9	14.4	9.9
Fair Values | Mortgage servicing rights | Life | Level 3 | Minimum
Inputs:
Input	2.6	1.1	2.6	1.1
Fair Values | Mortgage servicing rights | Life | Level 3 | Maximum
Inputs:
Input	7.8	11.6	7.8	11.6
Fair Values | Mortgage servicing rights | Life | Level 3 | Weighted average
Inputs:
Input	6	7.7	6	7.7

Fair Value - Level 3 Unobserv_3

Fair Value - Level 3 Unobservable Inputs, Mortgage Servicing Rights, Effect of Change In Inputs on Fair Value (Details)	6 Months Ended	12 Months Ended
	Jun. 30, 2019USD ($)item	Dec. 31, 2018USD ($)item
MSR and pool characteristics
Carrying value	$ 2,720,335,000	$ 2,820,612,000
Mortgage servicing liabilities | Level 3
Prepayment speed
Annual per-loan cost of servicing	320	373
Fair Values | Mortgage servicing rights | Level 3
MSR and pool characteristics
Carrying value	2,720,335,000	2,820,612,000
Unpaid principal balance of underlying loans	$ 220,700,176,000	$ 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	$ (41,633,000)	$ (45,268,000)
Effect on fair value of 10% adverse change	(81,948,000)	(89,073,000)
Effect on fair value of 20% adverse change	(158,854,000)	(172,556,000)
Prepayment speed
Effect on fair value of 5% adverse change	(60,349,000)	(47,687,000)
Effect on fair value of 10% adverse change	(118,029,000)	(93,626,000)
Effect on fair value of 20% adverse change	(226,021,000)	(180,623,000)
Annual per-loan cost of servicing
Effect on fair value of 5% adverse change	(23,403,000)	(22,944,000)
Effect on fair value of 10% adverse change	(46,806,000)	(45,888,000)
Effect on fair value of 20% adverse change	(93,611,000)	(91,775,000)
Fair Values | Mortgage servicing rights | Level 3 | Minimum
Prepayment speed
Annual per-loan cost of servicing	77	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	$ 96	$ 93
Fair Values | Mortgage servicing rights | Pricing spread | Level 3 | Minimum
Inputs
Input | item	5.9	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	8.6	8.7
Fair Values | Mortgage servicing rights | Annual total prepayment speed | Level 3 | Minimum
Inputs
Input | item	9.3	8.4
Fair Values | Mortgage servicing rights | Annual total prepayment speed | Level 3 | Maximum
Inputs
Input | item	33	32.6
Fair Values | Mortgage servicing rights | Annual total prepayment speed | Level 3 | Weighted average
Inputs
Input | item	13.3	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	7.4	7.9
Fair Values | Mortgage servicing rights | Life | Level 3 | Weighted average
Inputs
Input | item	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	6 Months Ended	12 Months Ended
	Jun. 30, 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 | $	$ 194,156	$ 216,110
Unpaid principal balance of underlying mortgage loans | $	$ 21,757,903	$ 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	8.7	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	15.2	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	11.1	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	2.9	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	7.3	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	6.2	6.8

Fair Value - Level 3 Unobserv_5

Fair Value - Level 3 Unobservable Inputs, Mortgage Servicing Liabilities (Details)	6 Months Ended	12 Months Ended
	Jun. 30, 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	$ 12,948,000	$ 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	12,948,000	8,681,000
Unpaid principal balance of underlying loans	$ 1,297,421,000	$ 1,160,938,000
Servicing fee rate (as a percent)	0.0025	0.0025
Annual per-loan cost of servicing	$ 320	$ 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	7.8	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	31.8	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	3.5	3.8

Loans Held for Sale at Fair V_3

Loans Held for Sale at Fair Value (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Mortgage Loans Held for Sale at Fair Value
Loans held for sale	$ 3,506,406	$ 2,521,647
Fair value of loans pledged to secure assets sold under agreements to repurchase	2,925,266	1,923,857
Fair value of loans pledged to secure mortgage loan participation and sale agreement	549,824	555,001
Pledged Assets Separately Reported, Loans Pledged as Collateral, at Fair Value, Total	3,475,090	2,478,858
Government-insured or guaranteed
Mortgage Loans Held for Sale at Fair Value
Loans held for sale	3,024,387	2,116,126
Conventional mortgage loans
Mortgage Loans Held for Sale at Fair Value
Loans held for sale	250,499	144,872
Jumbo Loan
Mortgage Loans Held for Sale at Fair Value
Loans held for sale	13,522	641
Home equity lines of credit
Mortgage Loans Held for Sale at Fair Value
Loans held for sale	35
Mortgage loans purchased from Ginnie Mae pools serviced by the entity
Mortgage Loans Held for Sale at Fair Value
Loans held for sale	207,741	250,585
Mortgage loans repurchased pursuant to representations and warranties
Mortgage Loans Held for Sale at Fair Value
Loans held for sale	$ 10,222	$ 9,423

Derivative Financial Instrume_3

Derivative Financial Instruments - Other Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Dec. 31, 2018
Derivative assets:
Derivative asset, before netting					$ 243,392	$ 123,316
Netting					(75,276)	(26,969)
Total derivative assets					168,116	96,347
Derivative liabilities:
Derivative liability, before netting					51,106	28,146
Netting					(35,154)	(25,082)
Net amounts of liabilities presented in the consolidated balance sheet					15,952	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	$ (1,143)	$ (692)	$ (1,700)	$ (1,118)
Net gains on loans held for sale at fair value | Interest rate lock commitments and 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	(67,154)	1,855	(101,822)	89,602
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	203,180	(24,289)	337,737	(127,882)
Margin Deposits
Derivative assets:
Deposits placed with (collateral received from) derivative counterparties					(40,122)	(1,887)
Interest rate lock commitments
Derivative assets:
Total derivative assets					113,311	50,507
Interest rate lock commitments | Net gains on 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	45,711	4,793	62,438	(2,583)
Forward contracts | Purchases
Derivative Instruments
Notional amount	19,497,698		6,657,026		19,497,698	6,657,026
Derivative assets:
Derivative asset, before netting					70,300	35,916
Derivative liabilities:
Derivative liability, before netting					6,826	215
Activity for derivative contracts used to hedge the IRLCs and inventory of mortgage loans at notional value
Balance at beginning of period			6,657,026
Balance at end of period	19,497,698		19,497,698
Forward contracts | Sales
Derivative Instruments
Notional amount	14,276,156		6,890,046		14,276,156	6,890,046
Derivative assets:
Derivative asset, before netting					5,494	437
Derivative liabilities:
Derivative liability, before netting					42,745	26,762
Activity for derivative contracts used to hedge the IRLCs and inventory of mortgage loans at notional value
Balance at beginning of period			6,890,046
Balance at end of period	14,276,156		14,276,156
MBS put options
Derivative Instruments
Notional amount	12,775,000		4,635,000		12,775,000	4,635,000
Derivative assets:
Derivative asset, before netting					8,092	720
Activity for derivative contracts used to hedge the IRLCs and inventory of mortgage loans at notional value
Balance at beginning of period			4,635,000
Balance at end of period	12,775,000		12,775,000
MBS call options
Derivative Instruments
Notional amount	2,250,000		1,450,000		2,250,000	1,450,000
Derivative assets:
Derivative asset, before netting					8,320	2,135
Activity for derivative contracts used to hedge the IRLCs and inventory of mortgage loans at notional value
Balance at beginning of period			1,450,000
Balance at end of period	2,250,000		2,250,000
Put options on interest rate futures | Purchases
Derivative Instruments
Notional amount	2,835,000		3,085,000		2,835,000	3,085,000
Derivative assets:
Derivative asset, before netting					2,674	866
Activity for derivative contracts used to hedge the IRLCs and inventory of mortgage loans at notional value
Balance at beginning of period			3,085,000
Balance at end of period	2,835,000		2,835,000
Call options on interest rate futures | Purchases
Derivative Instruments
Notional amount	3,687,500		1,512,500		3,687,500	1,512,500
Derivative assets:
Derivative asset, before netting					19,186	5,965
Activity for derivative contracts used to hedge the IRLCs and inventory of mortgage loans at notional value
Balance at beginning of period			1,512,500
Balance at end of period	3,687,500		3,687,500
Treasury future | Purchases
Derivative Instruments
Notional amount	486,100		835,000		486,100	835,000
Activity for derivative contracts used to hedge the IRLCs and inventory of mortgage loans at notional value
Balance at beginning of period			835,000
Balance at end of period	486,100		486,100
Treasury future | Sales
Derivative Instruments
Notional amount	1,550,000		1,450,000		1,550,000	1,450,000
Activity for derivative contracts used to hedge the IRLCs and inventory of mortgage loans at notional value
Balance at beginning of period			1,450,000
Balance at end of period	1,550,000		1,550,000
Interest rate swap futures | Purchases
Derivative Instruments
Notional amount	2,900,000		625,000		2,900,000	625,000
Activity for derivative contracts used to hedge the IRLCs and inventory of mortgage loans at notional value
Balance at beginning of period			625,000
Balance at end of period	2,900,000		2,900,000
Not designated as hedging instrument | Repurchase agreement derivatives
Derivative assets:
Derivative asset, before netting					16,015	26,770
Not designated as hedging instrument | Interest rate lock commitments
Derivative Instruments
Notional amount	4,660,741		2,805,400		4,660,741	2,805,400
Derivative assets:
Derivative asset, before netting					113,311	50,507
Derivative liabilities:
Derivative liability, before netting					1,535	1,169
Activity for derivative contracts used to hedge the IRLCs and inventory of mortgage loans at notional value
Balance at beginning of period			2,805,400
Balance at end of period	4,660,741		4,660,741
Not designated as hedging instrument | Forward contracts | Purchases
Derivative Instruments
Notional amount	9,313,389	6,543,783	6,657,026	4,920,883	19,497,698	6,657,026
Activity for derivative contracts used to hedge the IRLCs and inventory of mortgage loans at notional value
Balance at beginning of period	9,313,389	6,543,783	6,657,026	4,920,883
Additions	84,608,506	47,789,665	137,230,351	93,120,450
Dispositions/expirations	(74,424,197)	(47,715,560)	(124,389,679)	(91,423,445)
Balance at end of period	19,497,698	6,617,888	19,497,698	6,617,888
Not designated as hedging instrument | Forward contracts | Sales
Derivative Instruments
Notional amount	7,583,005	6,924,346	6,890,046	5,204,796	14,276,156	6,890,046
Activity for derivative contracts used to hedge the IRLCs and inventory of mortgage loans at notional value
Balance at beginning of period	7,583,005	6,924,346	6,890,046	5,204,796
Additions	93,901,535	59,686,130	153,575,022	116,041,682
Dispositions/expirations	(87,208,384)	(59,503,274)	(146,188,912)	(114,139,276)
Balance at end of period	14,276,156	7,107,202	14,276,156	7,107,202
Not designated as hedging instrument | MBS put options
Derivative Instruments
Notional amount	9,425,000	3,750,000	4,635,000	4,925,000	12,775,000	4,635,000
Activity for derivative contracts used to hedge the IRLCs and inventory of mortgage loans at notional value
Balance at beginning of period	9,425,000	3,750,000	4,635,000	4,925,000
Additions	28,450,000	4,375,000	47,610,000	8,875,000
Dispositions/expirations	(25,100,000)	(5,450,000)	(39,470,000)	(11,125,000)
Balance at end of period	12,775,000	2,675,000	12,775,000	2,675,000
Not designated as hedging instrument | MBS call options
Derivative Instruments
Notional amount	3,350,000		1,450,000		2,250,000	1,450,000
Activity for derivative contracts used to hedge the IRLCs and inventory of mortgage loans at notional value
Balance at beginning of period	3,350,000		1,450,000
Additions	2,250,000	5,450,000	6,750,000	11,125,000
Dispositions/expirations	(3,350,000)	(5,450,000)	(5,950,000)	(11,125,000)
Balance at end of period	2,250,000		2,250,000
Not designated as hedging instrument | Put options on interest rate futures | Purchases
Derivative Instruments
Notional amount	3,350,000	2,800,000	3,085,000	2,125,000	2,835,000	3,085,000
Activity for derivative contracts used to hedge the IRLCs and inventory of mortgage loans at notional value
Balance at beginning of period	3,350,000	2,800,000	3,085,000	2,125,000
Additions	2,897,500	6,177,500	9,572,500	11,702,500
Dispositions/expirations	(3,412,500)	(7,125,000)	(9,822,500)	(11,975,000)
Balance at end of period	2,835,000	1,852,500	2,835,000	1,852,500
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	8,827,500	7,125,000	18,962,800	11,975,000
Dispositions/expirations	(8,827,500)	(7,125,000)	(18,962,800)	(11,975,000)
Not designated as hedging instrument | Call options on interest rate futures | Purchases
Derivative Instruments
Notional amount	2,250,000	225,000	1,512,500	100,000	3,687,500	1,512,500
Activity for derivative contracts used to hedge the IRLCs and inventory of mortgage loans at notional value
Balance at beginning of period	2,250,000	225,000	1,512,500	100,000
Additions	6,915,000	1,075,000	11,377,800	1,450,000
Dispositions/expirations	(5,477,500)	(500,000)	(9,202,800)	(750,000)
Balance at end of period	3,687,500	800,000	3,687,500	800,000
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		500,000		750,000
Dispositions/expirations		(500,000)		(750,000)
Not designated as hedging instrument | Treasury future | Purchases
Derivative Instruments
Notional amount	1,810,000	510,000	835,000	100,000	486,100	835,000
Activity for derivative contracts used to hedge the IRLCs and inventory of mortgage loans at notional value
Balance at beginning of period	1,810,000	510,000	835,000	100,000
Additions	2,700,200	2,991,300	6,811,400	4,896,200
Dispositions/expirations	(4,024,100)	(2,666,300)	(7,160,300)	(4,161,200)
Balance at end of period	486,100	835,000	486,100	835,000
Not designated as hedging instrument | Treasury future | Sales
Derivative Instruments
Notional amount	1,075,000	1,250,000	1,450,000	1,450,000	1,550,000	1,450,000
Activity for derivative contracts used to hedge the IRLCs and inventory of mortgage loans at notional value
Balance at beginning of period	1,075,000	1,250,000	1,450,000
Additions	4,499,100	2,866,300	7,260,300	6,272,500
Dispositions/expirations	(4,024,100)	(2,666,300)	(7,160,300)	(4,822,500)
Balance at end of period	1,550,000	1,450,000	1,550,000	1,450,000
Not designated as hedging instrument | Interest rate swap futures | Purchases
Derivative Instruments
Notional amount	1,025,000	465,000	625,000	1,400,000	$ 2,900,000	$ 625,000
Activity for derivative contracts used to hedge the IRLCs and inventory of mortgage loans at notional value
Balance at beginning of period	1,025,000	465,000	625,000	1,400,000
Additions	1,875,000		2,275,000	465,000
Dispositions/expirations				(1,400,000)
Balance at end of period	$ 2,900,000	$ 465,000	$ 2,900,000	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 Financial Instrume_4

Derivative Financial Instruments - Offsetting of Derivative Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Derivatives not subject to master netting arrangements
Gross amounts of recognized assets	$ 129,326	$ 77,277
Derivatives subject to master netting arrangements:
Gross amounts of recognized assets	114,066	46,039
Gross amounts offset in the consolidated balance sheet	(75,276)	(26,969)
Net amounts of assets presented in the consolidated balance sheet	38,790	19,070
Total
Gross amounts of recognized assets	243,392	123,316
Net amounts of assets presented in the balance sheet	168,116	96,347
Interest rate lock commitments
Derivatives not subject to master netting arrangements
Gross amounts of recognized assets	113,311	50,507
Total
Net amounts of assets presented in the balance sheet	113,311	50,507
Repurchase agreement derivatives
Derivatives not subject to master netting arrangements
Gross amounts of recognized assets	16,015	26,770
MBS put options
Derivatives subject to master netting arrangements:
Gross amounts of recognized assets	8,092	720
Net amounts of assets presented in the consolidated balance sheet	8,092	720
Total
Gross amounts of recognized assets	8,092	720
MBS call options
Derivatives subject to master netting arrangements:
Gross amounts of recognized assets	8,320	2,135
Net amounts of assets presented in the consolidated balance sheet	8,320	2,135
Total
Gross amounts of recognized assets	8,320	2,135
Forward contracts | Purchases
Derivatives subject to master netting arrangements:
Gross amounts of recognized assets	70,300	35,916
Net amounts of assets presented in the consolidated balance sheet	70,300	35,916
Total
Gross amounts of recognized assets	70,300	35,916
Forward contracts | Sales
Derivatives subject to master netting arrangements:
Gross amounts of recognized assets	5,494	437
Net amounts of assets presented in the consolidated balance sheet	5,494	437
Total
Gross amounts of recognized assets	5,494	437
Put options on interest rate futures | Purchases
Derivatives subject to master netting arrangements:
Gross amounts of recognized assets	2,674	866
Net amounts of assets presented in the consolidated balance sheet	2,674	866
Total
Gross amounts of recognized assets	2,674	866
Call options on interest rate futures | Purchases
Derivatives subject to master netting arrangements:
Gross amounts of recognized assets	19,186	5,965
Net amounts of assets presented in the consolidated balance sheet	19,186	5,965
Total
Gross amounts of recognized assets	$ 19,186	$ 5,965

Derivative Financial Instrume_5

Derivative Financial Instruments - Offsetting of Derivative Assets - Derivative Assets, Financial Assets, and Collateral Held by Counterparty (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Total
Net amounts of assets presented in the balance sheet	$ 168,116	$ 96,347
Net amount	168,116	96,347
Deutsche Bank AG
Total
Net amounts of assets presented in the balance sheet	16,015	26,770
Net amount	16,015	26,770
RJ O'Brien
Total
Net amounts of assets presented in the balance sheet	21,860	6,831
Net amount	21,860	6,831
Wells Fargo Bank, N.A.
Total
Net amounts of assets presented in the balance sheet	5,516	3,707
Net amount	5,516	3,707
Mizuho Securities
Total
Net amounts of assets presented in the balance sheet	1,746
Net amount	1,746
Bank of America, N.A.
Total
Net amounts of assets presented in the balance sheet	2,427	2,781
Net amount	2,427	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		1,399
Net amount		1,399
Goldman Sachs
Total
Net amounts of assets presented in the balance sheet	4,112
Net amount	4,112
Nomura Securities International, Inc.
Total
Net amounts of assets presented in the balance sheet	2,834
Net amount	2,834
Other
Total
Net amounts of assets presented in the balance sheet	295	1,864
Net amount	295	1,864
Interest rate lock commitments
Total
Net amounts of assets presented in the balance sheet	113,311	50,507
Net amount	$ 113,311	$ 50,507

Derivative Financial Instrume_6

Derivative Financial Instruments - Offsetting of Derivative Assets - Offsetting of Derivative and Financial Liabilities (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2019	Dec. 31, 2018
Derivatives: Subject to master netting arrangements:
Gross amounts of recognized liabilities	$ 49,571	$ 26,977
Netting	(35,154)	(25,082)
Net amounts of liabilities presented in the balance sheet	14,417	1,895
Total
Gross amounts of recognized liabilities	51,106	28,146
Net amounts of liabilities presented in the consolidated balance sheet	15,952	3,064
Mortgage loans sold under agreements to repurchase
Net amounts of liabilities presented in the consolidated balance sheet	2,748,374
Debt Issuance Costs
Debt issuance costs, gross	(1,290)	(1,341)
Debt issuance costs	(1,290)	(1,341)
Gross amounts of recognized liabilities	2,747,084	1,933,859
Net amount of liabilities in the consolidated balance sheet	2,747,084	1,933,859
Total
Gross amounts of recognized liabilities	2,798,190	1,962,005
Gross amounts offset in the consolidated balance sheet	(35,154)	(25,082)
Net amounts of liabilities presented in the consolidated balance sheet	2,764,326	1,938,264
Net amount of liabilities in the consolidated balance sheet	15,952	3,064
Receivable from Counterparties
Total
Net amounts of liabilities presented in the consolidated balance sheet	2,763,036	1,936,923
Assets sold under agreements to repurchase
Mortgage loans sold under agreements to repurchase
Gross amounts of recognized liabilities	2,748,374	1,935,200
Net amounts of liabilities presented in the consolidated balance sheet	2,748,374	1,935,200
Net amounts of liabilities presented in the consolidated balance sheet	2,748,374	1,935,200
Debt Issuance Costs
Debt issuance costs, gross	(1,290)	(1,341)
Net amount of liabilities in the consolidated balance sheet	2,747,084	1,933,859
Forward contracts | Purchases
Derivatives: Subject to master netting arrangements:
Gross amounts of recognized liabilities	6,826	215
Net amounts of liabilities presented in the balance sheet	6,826	215
Total
Gross amounts of recognized liabilities	6,826	215
Forward contracts | Sales
Derivatives: Subject to master netting arrangements:
Gross amounts of recognized liabilities	42,745	26,762
Net amounts of liabilities presented in the balance sheet	42,745	26,762
Total
Gross amounts of recognized liabilities	42,745	26,762
Interest rate lock commitments
Derivatives not subject to master netting arrangements
Gross amounts of recognized liabilities	1,535	1,169
Total
Net amounts of liabilities presented in the consolidated balance sheet	1,535	1,169
Net amount of liabilities in the consolidated balance sheet	$ 1,535	$ 1,169

Derivative Financial Instrume_7

Derivative Financial Instruments - Offsetting of Derivative Assets - Derivative Liabilities, Financial Liabilities, and Collateral Held by Counterparty (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Derivative liabilities:
Net amounts of liabilities presented in the consolidated balance sheet	$ 2,764,326	$ 1,938,264
Financial instruments	(2,748,374)	(1,935,200)
Net amount of liabilities in the consolidated balance sheet	15,952	3,064
Credit Suisse First Boston Mortgage Capital LLC
Derivative liabilities:
Net amounts of liabilities presented in the consolidated balance sheet	939,988	691,030
Financial instruments	(939,988)	(690,766)
Net amount of liabilities in the consolidated balance sheet		264
Bank of America, N.A.
Derivative liabilities:
Net amounts of liabilities presented in the consolidated balance sheet	419,594	170,820
Financial instruments	(419,594)	(170,820)
Deutsche Bank AG
Derivative liabilities:
Net amounts of liabilities presented in the consolidated balance sheet	81,475	741,978
Financial instruments	(81,475)	(741,978)
Royal Bank of Canada
Derivative liabilities:
Net amounts of liabilities presented in the consolidated balance sheet	128,681	35,181
Financial instruments	(128,681)	(35,181)
JP Morgan
Derivative liabilities:
Net amounts of liabilities presented in the consolidated balance sheet	320,478	54,326
Financial instruments	(320,478)	(54,326)
Morgan Stanley Bank
Derivative liabilities:
Net amounts of liabilities presented in the consolidated balance sheet	326,564	77,687
Financial instruments	(317,269)	(77,687)
Net amount of liabilities in the consolidated balance sheet	9,295
Citibank, N.A.
Derivative liabilities:
Net amounts of liabilities presented in the consolidated balance sheet	351,072	14,960
Financial instruments	(350,235)	(14,960)
Net amount of liabilities in the consolidated balance sheet	837
Federal National Mortgage Association
Derivative liabilities:
Net amounts of liabilities presented in the consolidated balance sheet	2,168
Net amount of liabilities in the consolidated balance sheet	2,168
BNP Paribas
Derivative liabilities:
Net amounts of liabilities presented in the consolidated balance sheet	190,654	149,675
Financial instruments	(190,654)	(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	2,117	1,438
Net amount of liabilities in the consolidated balance sheet	2,117	1,438
Interest rate lock commitments
Derivative liabilities:
Net amounts of liabilities presented in the consolidated balance sheet	1,535	1,169
Net amount of liabilities in the consolidated balance sheet	$ 1,535	$ 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		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Mar. 31, 2019	Dec. 31, 2018	Mar. 31, 2018	Dec. 31, 2017
Activity in MSRs carried at fair value
Balance at beginning of period			$ 2,807,333
Change in fair value:
Balance at end of period	$ 2,710,342		2,710,342
Mortgage servicing rights
Activity in MSRs carried at fair value
Balance at beginning of period	2,905,090	$ 2,354,489	2,820,612	$ 638,010
Reclassification of mortgage servicing rights previously accounted for under the amortization method								$ 1,482,426
Balance after reclassification					$ 2,905,090	$ 2,820,612	$ 2,354,489	$ 2,120,436
Additions - Purchases	(373)	2,523	227,399	30,129
Additions - Mortgage servicing rights resulting from loan sales	183,331	155,694	299,082	299,604
Additions	182,958	158,217	526,481	329,733
Change in fair value:
Changes in inputs used in valuation model	(256,449)	44,796	(418,087)	175,245
Other changes in fair value	(111,264)	(71,345)	(208,671)	(139,257)
Total change in fair value	(367,713)	(26,549)	(626,758)	35,988
Balance at end of period	2,720,335	2,486,157	2,720,335	2,486,157
Total	$ 2,710,342	$ 2,807,333	$ 2,710,342	$ 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		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Amortized cost:
Mortgage servicing liabilities resulting from loan sales			$ 7,632	$ 3,807
Mortgage servicing liabilities
Amortized cost:
Balance at beginning of period	$ 7,844	$ 12,063	8,681	14,120
Mortgage servicing liabilities resulting from loan sales	6,838	1,770	7,632	3,807
Changes in valuation inputs used in valuation model	2,756	2,537	6,057	5,180
Other changes in fair value	(4,490)	(6,117)	(9,422)	(12,854)
Total change in fair value	(1,734)	(3,580)	(3,365)	(7,674)
Balance at end of period	$ 12,948	$ 10,253	$ 12,948	$ 10,253

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		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Contractual servicing fees	$ 180,753	$ 138,871	$ 347,543	$ 274,354
Ancillary and other fees
Other	26,008	13,637	48,025	27,808
Bank Servicing Fees	59,134	113,689	139,705	230,478
Mortgage servicing rights
Contractual servicing fees	180,753	138,871	347,543	274,354
Ancillary and other fees
Late charges	9,015	7,049	18,827	14,508
Other	2,612	1,814	4,273	3,376
Bank Servicing Fees	$ 192,380	$ 147,734	$ 370,643	$ 292,238

Leases (Details)

Leases (Details) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2019USD ($)item	Jun. 30, 2019USD ($)item
Leases
Operating lease option to extend		true
Lease expenses:
Operating leases	$ 3,232	$ 6,461
Short-term leases	214	431
Sublease income	(27)	(59)
Total lease cost	3,419	6,833
Cash payments for operating leases	3,884	7,730
Right-of-use assets obtained in exchange for lease obligations	$ 87	$ 58,713
Remaining lease term (in year)	6 years 4 months 24 days	6 years 4 months 24 days
Discount rate (as a percent)	4.62%	4.62%
Operating lease liabilities
2020	$ 15,671	$ 15,671
2021	14,859	14,859
2022	12,739	12,739
2023	11,837	11,837
2024	9,903	9,903
Thereafter	19,591	19,591
Total lease payments	84,600	84,600
Less imputed interest	(11,139)	(11,139)
Total	$ 73,461	$ 73,461
Number of operating leases not yet commenced. | item	1	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	5 years

Borrowings - Assets Sold Under

Borrowings - Assets Sold Under Agreement to Repurchase (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
During the period:
Total interest expense	$ 19,645	$ 4,535	$ 28,280	$ 11,267
Carrying value:
Unpaid principal balance	2,748,374		2,748,374
Unamortized debt issuance costs and premiums	(1,290)		(1,290)		$ (1,341)
Total loans sold under agreements to repurchase	2,747,084		2,747,084		1,933,859
Servicing advances	151,384		151,384		162,895
Assets sold under agreements to repurchase
During the period:
Average balance of mortgage loans sold under agreements to repurchase	$ 1,988,920	$ 1,574,012	$ 1,715,846	$ 1,608,535
Weighted-average interest rate (as a percent)	4.35%	3.90%	4.40%	3.74%
Total interest expense	$ 19,645	$ 4,535	$ 28,280	$ 11,267
Maximum daily amount outstanding	2,748,375	2,028,713	2,748,375	2,380,121
Carrying value:
Unpaid principal balance	2,748,374		2,748,374		1,935,200
Unamortized debt issuance costs and premiums	(1,290)		(1,290)		(1,341)
Total loans sold under agreements to repurchase	$ 2,747,084		$ 2,747,084		$ 1,933,859
Weighted average interest rate (as a percent)	4.01%		4.01%		4.22%
Available borrowing capacity committed	$ 80,406		$ 80,406		$ 695,767
Available borrowing capacity uncommitted	2,156,220		2,156,220		2,354,033
Available borrowing capacity	2,236,626		2,236,626		3,049,800
Margin deposits placed with counterparties	3,750		3,750		3,750
Amortization of premium	2,000	10,800	9,400	18,800
Amount of Master Repurchase Agreement incentives to refinance include in interest expense	3,900	$ 12,500	13,200	$ 22,700
Assets sold under agreements to repurchase | Loans held for sale
Carrying value:
Fair value of assets pledged to secure	2,925,266		2,925,266		1,923,857
Assets sold under agreements to repurchase | Mortgage servicing rights
Carrying value:
Fair value of assets pledged to secure	2,618,932		2,618,932		2,807,333
Assets sold under agreements to repurchase | Servicing advances
Carrying value:
Fair value of assets pledged to secure	151,384		151,384		162,895
Assets sold under agreements to repurchase | Financing receivable
Carrying value:
Fair value of assets pledged to secure	$ 118,716		$ 118,716		$ 131,025

Borrowings - Maturities of Outs

Borrowings - Maturities of Outstanding Advances Under Repurchase Agreements (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2019USD ($)
Mortgage loans sold under agreement to repurchase
Unpaid principal balance	$ 2,748,374
Weighted-average maturity (in months)	2 months 12 days
Within 30 days
Mortgage loans sold under agreement to repurchase
Unpaid principal balance	$ 385,095
Over 30 to 90 days
Mortgage loans sold under agreement to repurchase
Unpaid principal balance	2,201,740
Over 90 to 180 days
Mortgage loans sold under agreement to repurchase
Unpaid principal balance	6,539
Over 180 days to one year
Mortgage loans sold under agreement to repurchase
Unpaid principal balance	$ 155,000

Borrowings - Mortgage Loans Sol

Borrowings - Mortgage Loans Sold Under Agreement to Repurchase by Counterparty (Details) - Assets sold under agreements to repurchase $ in Thousands	Jun. 30, 2019USD ($)
Credit Suisse First Boston Mortgage Capital LLC Tranche Two
Mortgage loans sold under agreement to repurchase
Amount at risk	$ 1,314,198
Credit Suisse First Boston Mortgage Capital LLC Tranche One
Mortgage loans sold under agreement to repurchase
Amount at risk	73,613
Deutsche Bank AG
Mortgage loans sold under agreement to repurchase
Amount at risk	9,863
Bank of America, N.A.
Mortgage loans sold under agreement to repurchase
Amount at risk	109,665
Morgan Stanley Bank
Mortgage loans sold under agreement to repurchase
Amount at risk	25,753
JP Morgan
Mortgage loans sold under agreement to repurchase
Amount at risk	63,772
BNP Paribas
Mortgage loans sold under agreement to repurchase
Amount at risk	11,892
Royal Bank of Canada
Mortgage loans sold under agreement to repurchase
Amount at risk	10,481
Citibank, N.A.
Mortgage loans sold under agreement to repurchase
Amount at risk	$ 24,944

Borrowings - Mortgage Loan Part

Borrowings - Mortgage Loan Participation and Sale Agreement (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
During the period:
Total interest expense	$ 2,419,000	$ 2,190,000	$ 4,730,000	$ 3,917,000
Carrying value:
Mortgage loan participation and sale agreement secured by mortgage loan participation certificates	523,177,000		523,177,000		$ 532,251,000
Fair value of loans pledged to secure	549,824,000		549,824,000		555,001,000
Mortgage Loan Participation and Sale Agreement member
During the period:
Average balance	$ 251,997,000	$ 246,368,000	$ 244,374,000	$ 231,076,000
Short-term Debt, Weighted Average Interest Rate, over Time	3.63%	3.21%	3.65%	3.06%
Total interest expense	$ 2,419,000	$ 2,190,000	$ 4,730,000	$ 3,917,000
Carrying value:
Unpaid principal balance of mortgage loan participation and sale agreement secured by mortgage loan participation certificates	523,279,000		523,279,000		532,466,000
Unamortized issuance costs	(102,000)		(102,000)		(215,000)
Mortgage loan participation and sale agreement secured by mortgage loan participation certificates	$ 523,177		$ 523,177		$ 532,251
Weighted average interest rate (as a percent)	3.65%		3.65%		3.77%
Fair value of loans pledged to secure	$ 549,824,000		$ 549,824,000		$ 555,001,000
Amortization of debt issuance costs	135,000	212,000	270,000	383,000
Maximum | Mortgage Loan Participation and Sale Agreement member
Carrying value:
Mortgage loan participation and sale agreement secured by mortgage loan participation certificates	$ 523,279,000	$ 528,368,000	$ 548,038,000	$ 528,368,000

Borrowings - Note Payable (Deta

Borrowings - Note Payable (Details) - USD ($)	Aug. 10, 2018	Feb. 28, 2018	Jun. 30, 2019	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018	Nov. 01, 2018	Feb. 01, 2018
During the period:
Total interest expense			$ 18,039,000		$ 16,348,000		$ 36,034,000	$ 34,570,000
Carrying value:
Notes payable			1,293,180,000				1,293,180,000		$ 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		$ 1,150,000,000		$ 1,300,000,000	$ 1,069,890,000
Weighted-average interest rate (as a percent)			5.27%		5.33%		5.26%	5.44%
Total interest expense			$ 18,039,000		$ 16,348,000		$ 36,034,000	$ 34,570,000
Maximum daily amount outstanding			1,300,000,000		1,150,000,000		1,300,000,000	1,150,000,000
Carrying value:
Unpaid principal balance			1,300,000,000				1,300,000,000		1,300,000,000
Unamortized issuance costs			(6,820,000)				(6,820,000)		(7,709,000)
Notes payable			$ 1,293,180,000				$ 1,293,180,000		$ 1,292,291,000
Weighted-average interest rate (as a percent)			5.18%				5.18%		5.07%
Unused amount			$ 150,000,000				$ 150,000,000		$ 150,000,000
Amortization of Financing Costs			900,000		1,100,000		1,800,000	5,500,000
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			2,710,342,000				2,710,342,000		2,807,333,000
Note Payable | Cash.
Carrying value:
Assets pledged to secure			184,278,000				184,278,000		108,174,000
Note Payable | Servicing advances
Carrying value:
Assets pledged to secure			151,384,000				151,384,000		162,895,000
Mortgage Loan Participation and Sale Agreement member
During the period:
Average balance			251,997,000		246,368,000		244,374,000	231,076,000
Carrying value:
Unamortized issuance costs			(102,000)				(102,000)		$ (215,000)
Amortization of Financing Costs			$ 135,000		$ 212,000		$ 270,000	$ 383,000

Borrowings - Obligations Under

Borrowings - Obligations Under Capital Lease (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Leases
Average balance	$ 10,135	$ 14,544	$ 8,406	$ 18,703
Weighted average interest rate	4.39%	3.92%	4.39%	3.78%
Total interest expense	$ 136	$ 152	$ 202	$ 322
Unpaid principal balance	$ 28,295		$ 28,295		$ 6,605
Weighted average interest rate	4.39%		4.39%		4.46%
Furniture, fixtures, equipment and building improvements pledged to creditors	$ 23,971		$ 23,971		$ 16,281
Capitalized software pledged to creditors	15,097		15,097		$ 1,017
Maximum
Leases
Maximum daily amount outstanding	$ 28,295	$ 16,435	$ 28,295	$ 20,971

Borrowings - ESS (Details)

Borrowings - ESS (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
PMT
Issuances of excess servicing spread to PennyMac Mortgage Investment Trust:
Change in fair value	$ 3,604	$ (996)	$ 7,655	$ (7,917)
Excess servicing spread financing
Roll forward of liabilities measured using Level 3 inputs on a recurring basis
Balance at the beginning of the period	205,081	236,002	216,110	236,534
Issuances of excess servicing spread to PennyMac Mortgage Investment Trust:
Accrual of interest	2,767	3,910	5,833	7,844
Repayment	(10,530)	(12,018)	(21,082)	(24,309)
Change in fair value	(3,604)	996	(7,655)	7,917
Balance at the end of the period	194,156	229,470	194,156	229,470
Excess servicing spread financing | PMT
Issuances of excess servicing spread to PennyMac Mortgage Investment Trust:
Issuances	442	580	950	1,484
Change in fair value	$ 3,604	$ (996)	$ 7,655	$ (7,917)

Liability for Losses Under Re_3

Liability for Losses Under Representations and Warranties (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
During the year:
Balance at beginning of period	$ 17,982	$ 20,429	$ 21,155	$ 20,053
Provision for losses on loans sold resulting from sales of loans	1,647	1,216	2,714	2,708
Provision for losses on loans sold reduction in liability due to change in estimate	(920)	(1,359)	(5,130)	(2,472)
Incurred losses, net		301	(30)	298
Balance at end of period	18,709	20,587	18,709	20,587
Unpaid principal balance of loans subject to representations and warranties at end of quarter	$ 127,670,206	$ 133,585,457	$ 127,670,206	$ 133,585,457

Income Taxes - General (Details

Income Taxes - General (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 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)	27.00%	8.40%	25.70%	8.40%

Commitments and Contingencies (

Commitments and Contingencies (Details) $ in Billions	Jun. 30, 2019USD ($)
Commitments and Contingencies.
Total commitments to purchase and fund mortgage loans	$ 4.7

Stockholders' Equity (Details)

Stockholders' Equity (Details) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended		25 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2017
Stockholders' Equity
Cost of shares of common stock repurchased	$ 1,056	$ 4,826	$ 1,056	$ 4,826
Common Stock
Stockholders' Equity
Authorized stock repurchase amount						$ 50,000
Shares of common stock repurchased	51	236	51	236	816
Cost of shares of common stock repurchased	$ 1,056	$ 4,826	$ 1,056	$ 4,826	$ 14,948

Noncontrolling Interest (Detail

Noncontrolling Interest (Details) - USD ($) shares in Thousands, $ in Thousands	Nov. 01, 2018	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Net income and the effects of changes in noncontrolling interest
Net income attributable to PennyMac Financial Services, Inc. common stockholders		$ 72,696	$ 17,837	$ 118,831	$ 34,456
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.			$ 13,265		$ 28,124
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)			737		1,485
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.			$ (13,266)		$ (28,125)

Net Gains on Loans Held for S_3

Net Gains on Loans Held for Sale (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Cash loss:
Loans	$ (13,579)	$ (110,242)	$ (54,821)	$ (292,043)
Hedging activities	(73,145)	(12,567)	(82,072)	91,829
Cash gain (loss), net of effects of cash hedging, on sale of loans held for sale	(86,724)	(122,809)	(136,893)	(200,214)
Non-cash gain:
Mortgage servicing rights and mortgage servicing liabilities resulting from loan sales	176,493	153,924	291,450	295,797
Provision for losses relating to representations and warranties on loans sold pursuant to loan sales	(1,647)	(1,216)	(2,714)	(2,708)
Provision for losses relating to representations and warranties on loans sold reduction in liability due to change in estimate	920	1,359	5,130	2,472
Change in fair value relating to loans and derivatives held at year end:
Interest rate lock commitments	45,711	4,793	62,438	(2,583)
Loans	(29,522)	(4,454)	(29,686)	14,510
Hedging derivatives	5,991	14,422	(19,750)	(2,227)
From non-affiliates	111,222	46,019	169,975	105,047
Recapture payable to PennyMac Mortgage Investment Trust	36,311	14,927	62,334	27,313
Net gains on loans held for sale at fair value	$ 147,533	$ 60,946	$ 232,309	$ 132,360

Net Interest Income (Details)

Net Interest Income (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Interest income:
Cash and short-term investments	$ 2,706	$ 579	$ 4,639	$ 1,187
Loans held for sale at fair value	34,366	34,434	65,709	61,041
Placement fees relating to custodial funds	32,136	18,193	55,397	31,617
Interest income, excluding related parties	69,208	53,206	125,745	93,845
Interest income	70,900	55,104	129,233	97,719
Interest expense:
Assets sold under agreements to repurchase	19,645	4,535	28,280	11,267
Mortgage loan participation purchase and sale agreements	2,419	2,190	4,730	3,917
Notes payable	18,039	16,348	36,034	34,570
Obligations under capital lease	136	152	202	322
Interest shortfall on repayments of mortgage loans serviced for Agency securitizations	8,214	4,546	12,525	9,376
Interest on mortgage loan impound deposits	1,704	935	2,863	2,065
Interest expense, non-affiliates	50,157	28,706	84,634	61,517
Interest expense	52,924	32,616	90,467	69,361
Net interest income	17,976	22,488	38,766	28,358
PMT
Interest income:
From PennyMac Mortgage Investment Trust	1,692	1,898	3,488	3,874
Interest expense:
To PennyMac Mortgage Investment Trust Excess servicing spread financing at fair value	2,767	3,910	5,833	7,844
Assets sold under agreements to repurchase
Interest expense:
Assets sold under agreements to repurchase	19,645	4,535	28,280	11,267
Incentives recorded	$ 3,900	$ 12,500	$ 13,200	$ 22,700

Stock-based Compensation (Detai

Stock-based Compensation (Details) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Stock-Based Compensation
Grant date fair value			$ 25,763	$ 26,641
Stock-based compensation expense	$ 5,652	$ 6,063	$ 10,183	$ 12,234
Stock Options
Stock-Based Compensation
Granted (in units)			344	674
Grant date fair value			$ 2,965	$ 6,147
Exercised (in units)	29	33	118	229
Performance-based RSUs
Stock-Based Compensation
Granted (in units)			665	524
Grant date fair value			$ 15,253	$ 12,791
Vested (in units)		774	648	774
Time-based RSUs
Stock-Based Compensation
Granted (in units)			330	316
Grant date fair value			$ 7,545	$ 7,703
Vested (in units)		11	291	244

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	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Basic earnings per share of common stock:
Net income attributable to common stockholders		$ 72,696	$ 17,837	$ 118,831	$ 34,456
Weighted-average common stock outstanding		78,335	24,959	77,996	24,399
Basic earnings per share of common stock (in dollars per share)		$ 0.93	$ 0.71	$ 1.52	$ 1.41
Diluted earnings per share of common stock:
Net income attributable to common stockholders		$ 72,696	$ 17,837	$ 118,831	$ 34,456
Net income attributable to dilutive stock-based compensation units			614		1,842
Effect of net income attributable to noncontrolling interest, net of tax			36,766		72,396
Net income attributable to common stockholders for diluted earnings per share		$ 72,696	$ 55,217	$ 118,831	$ 108,694
Weighted-average common stock outstanding applicable to basic earnings per share		78,335	24,959	77,996	24,399
Effect of dilutive shares:
Common shares issuable under stock-based compensation plan		$ 983	$ 1,381	$ 1,305	$ 1,965
PennyMac Class A units exchangeable to common stock			52,485		52,583
Weighted-average shares of common stock outstanding applicable to diluted earnings per share		79,318	78,825	79,301	78,947
Diluted earnings per share of common stock (in dollars per share)		$ 0.92	$ 0.70	$ 1.50	$ 1.38
Total anti-dilutive stock-based compensation units		2,793	2,698	2,393	1,764
Performance-based RSUs
Effect of dilutive shares:
Total anti-dilutive stock-based compensation units		1,811	1,190	1,547	1,003
Stock Options
Effect of dilutive shares:
Total anti-dilutive stock-based compensation units		982	1,299	845	629
Weighted-average exercise price of anti-dilutive stock options		$ 18.34	$ 17.79	$ 18.34	$ 17.79
Time-based RSUs
Effect of dilutive shares:
Total anti-dilutive stock-based compensation units			209	1	132
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		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Cash paid for interest			$ 73,905	$ 85,540
Cash paid for income taxes (refunds received), net			261	(416)
Non-cash investing activity:
Mortgage servicing rights resulting from loan sales			299,082	299,604
Mortgage servicing liabilities resulting from loan sales			7,632	3,807
Unsettled portion of MSR acquisitions			9,457
Operating lease right-of-use assets obtained in exchange for lease obligation	$ 87		58,713
Non-cash financing activity:
Issuance of Excess servicing spread payable to PennyMac Mortgage Investment Trust pursuant to a recapture agreement			950	1,484
Issuance of Class A common stock and common stock in settlement of director fees	$ 50	$ 81	$ 136	$ 160

Regulatory Capital and Liquid_3

Regulatory Capital and Liquidity Requirements (Details) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2019	Dec. 31, 2015	Dec. 31, 2018
Fannie Mae / Freddie Mac - PLS
Regulatory Net Worth and Agency Capital Requirements
Net worth	$ 1,922,068,000		$ 1,788,430,000
Capital Requirement	565,849,000		514,089,000
Liquidity	300,366,000		271,802,000
Liquidity requirement	$ 77,699,000		$ 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	$ 1,676,194,000		$ 1,535,826,000
Capital Requirement	833,567,000		733,342,000
Liquidity	300,366,000		271,802,000
Liquidity requirement	209,988,000		189,592,000
Ginnie Mae - PennyMac
Regulatory Net Worth and Agency Capital Requirements
Net worth	1,945,850,000		1,786,430,000
Capital Requirement	916,923,000		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	1,676,194,000		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		6 Months Ended
	Jun. 30, 2019USD ($)	Jun. 30, 2018USD ($)	Jun. 30, 2019USD ($)segment	Jun. 30, 2018USD ($)	Dec. 31, 2018USD ($)
Segments and Related Information
Number of segments | segment			3
Revenues:
Net loan servicing fees	$ 59,134	$ 113,689	$ 139,705	$ 230,478
Net gains on loans held for sale at fair value	147,533	60,946	232,309	132,360
Loan origination fees	36,924	24,428	60,854	48,991
Net interest income (expense):
Interest income	70,900	55,104	129,233	97,719
Interest expense, before non-segment activities	52,924	32,616	90,467	69,361
Net interest expense, before non-segment activities	17,976	22,488	38,766	28,358
Management fees	8,832	5,664	16,080	11,439
Other	2,988	2,692	5,804	4,718
Total net revenues, before non-segment activities	302,977	244,298	550,682	482,499
Expenses	203,387	169,600	390,801	334,805
Income before provision for income taxes	99,590	74,698	159,881	147,694
Assets:
Segment assets at year end	8,398,376	6,833,699	8,398,376	6,833,699	$ 7,478,573
PMT
Revenues:
Fulfillment fees from PennyMac Mortgage Investment Trust	29,590	14,559	57,164	26,503
Net interest income (expense):
Management fees	8,832	5,728	16,080	11,424
Assets:
Receivable	34,695		$ 34,695		$ 33,464
Investment Funds
Net interest income (expense):
Management fees		(64)		15
Carried Interest from Investment Funds		(168)		(348)
Mortgage banking
Segments and Related Information
Number of segments | segment			2
Operating segment
Assets:
Segment assets at year end	8,398,376	6,833,699	$ 8,398,376	6,833,699
Working capital		8,000		8,000
Operating segment | Investment management
Net interest income (expense):
Interest expense, before non-segment activities	11	15	18	31
Net interest expense, before non-segment activities	(11)	(15)	(18)	(31)
Management fees	8,832	5,664	16,080	11,439
Other	1,539	1,428	3,102	2,743
Total net revenues, before non-segment activities	10,360	6,909	19,164	13,803
Expenses	6,341	5,797	13,023	11,740
Income before provision for income taxes	4,019	1,112	6,141	2,063
Assets:
Segment assets at year end	18,333	10,633	18,333	10,633
Operating segment | Investment management | Investment Funds
Net interest income (expense):
Carried Interest from Investment Funds		(168)		(348)
Operating segment | Mortgage banking
Revenues:
Net loan servicing fees	59,134	113,689	139,705	230,478
Net gains on loans held for sale at fair value	147,533	60,946	232,309	132,360
Loan origination fees	36,924	24,428	60,854	48,991
Net interest income (expense):
Interest income	70,900	55,104	129,233	97,719
Interest expense, before non-segment activities	52,913	32,601	90,449	69,330
Net interest expense, before non-segment activities	17,987	22,503	38,784	28,389
Other	1,449	1,264	2,702	1,975
Total net revenues, before non-segment activities	292,617	237,389	531,518	468,696
Expenses	197,046	163,803	377,778	323,065
Income before provision for income taxes	95,571	73,586	153,740	145,631
Assets:
Segment assets at year end	8,380,043	6,823,066	8,380,043	6,823,066
Operating segment | Mortgage banking | PMT
Revenues:
Fulfillment fees from PennyMac Mortgage Investment Trust	29,590	14,559	57,164	26,503
Operating segment | Mortgage banking Production
Revenues:
Net gains on loans held for sale at fair value	124,860	33,966	191,581	70,164
Loan origination fees	36,924	24,428	60,854	48,991
Net interest income (expense):
Interest income	18,900	16,874	33,269	31,122
Interest expense, before non-segment activities	13,898	1,025	17,813	3,127
Net interest expense, before non-segment activities	5,002	15,849	15,456	27,995
Other	117	536	605	852
Total net revenues, before non-segment activities	196,493	89,338	325,660	174,505
Expenses	98,249	70,320	180,410	138,317
Income before provision for income taxes	98,244	19,018	145,250	36,188
Assets:
Segment assets at year end	3,556,575	2,280,251	3,556,575	2,280,251
Operating segment | Mortgage banking Production | PMT
Revenues:
Fulfillment fees from PennyMac Mortgage Investment Trust	29,590	14,559	57,164	26,503
Operating segment | Mortgage banking Servicing
Revenues:
Net loan servicing fees	59,134	113,689	139,705	230,478
Net gains on loans held for sale at fair value	22,673	26,980	40,728	62,196
Net interest income (expense):
Interest income	52,000	38,230	95,964	66,597
Interest expense, before non-segment activities	39,015	31,576	72,636	66,203
Net interest expense, before non-segment activities	12,985	6,654	23,328	394
Other	1,332	728	2,097	1,123
Total net revenues, before non-segment activities	96,124	148,051	205,858	294,191
Expenses	98,797	93,483	197,368	184,748
Income before provision for income taxes	(2,673)	54,568	8,490	109,443
Assets:
Segment assets at year end	$ 4,823,468	$ 4,542,815	$ 4,823,468	$ 4,542,815

Subsequent Events (Details)

Subsequent Events (Details) - Master Repurchase Agreement - USD ($) $ in Millions	Jul. 23, 2019	Aug. 19, 2016
Securities Sold under Agreements to Repurchase [Abstract]
Maximum aggregate purchase price		$ 500
Aggregate purchase price, uncommitted amount		$ 450
Subsequent Event
Securities Sold under Agreements to Repurchase [Abstract]
Maximum aggregate purchase price	$ 1,000
Aggregate purchase price, uncommitted amount	$ 950