PennyMac Financial Services (PFSI) 10-Q 4 Nov 19 2019 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2019	Nov. 01, 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	Sep. 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		78,448,596
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q3

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
ASSETS
Cash (includes $101,773 and $108,174 pledged to creditors)	$ 201,268	$ 155,289
Short-term investments at fair value	90,663	117,824
Loans held for sale at fair value (includes $4,481,210 and $2,478,858 pledged to creditors)	4,522,971	2,521,647
Derivative assets	232,948	96,347
Servicing advances, net (includes valuation allowance of $73,024 and $70,582; $181,747 and $162,895 pledged to creditors)	271,501	313,197
Mortgage servicing rights at fair value (includes $2,550,602 and $2,807,333 pledged to creditors)	2,556,253	2,820,612
Real estate acquired in settlement of loans	20,328	2,250
Operating lease right-of-use assets	53,384
Furniture, fixtures, equipment and building improvements, net (includes $22,172 and $16,281 pledged to creditors)	32,221	33,374
Capitalized software, net (includes $14,090 and $1,017 pledged to creditors)	57,975	39,748
Loans eligible for repurchase	892,631	1,102,840
Other	221,967	109,559
Total assets	9,303,199	7,478,573
LIABILITIES
Assets sold under agreements to repurchase	3,538,889	1,933,859
Mortgage loans participation purchase and sale agreements	514,625	532,251
Obligations under capital lease	23,881	6,605
Notes payable	1,293,625	1,292,291
Derivative liabilities	14,035	3,064
Operating lease liabilities	72,160
Accounts payable and accrued expenses	215,379	156,212
Mortgage servicing liabilities at fair value	34,294	8,681
Income taxes payable	480,559	400,546
Liability for loans eligible for repurchase	892,631	1,102,840
Liability for losses under representations and warranties	19,968	21,155
Total liabilities	7,391,586	5,824,782
Commitments and contingencies - Note 14
STOCKHOLDERS' EQUITY
Additional paid-in capital	1,328,166	1,310,648
Retained earnings	583,439	343,135
Total stockholders' equity	1,911,613	1,653,791
Total liabilities and stockholders' equity	9,303,199	7,478,573
Common Stock
STOCKHOLDERS' EQUITY
Common stock - authorized 200,000,000 shares of $0.0001 par value; issued and outstanding, 78,434,556 and 77,494,332 shares respectively	8	8
PMT
ASSETS
Assets purchased from PennyMac Mortgage Investment Trust under agreements to resell pledged to creditors	107,678	131,025
Investment in PennyMac Mortgage Investment Trust at fair value	1,667	1,397
Receivable, from affiliates	39,744	33,464
LIABILITIES
Excess servicing spread financing payable to PennyMac Mortgage Investment Trust at fair value	183,141	216,110
Payable to affiliates	61,862	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	Sep. 30, 2019	Dec. 31, 2018
Cash pledged to creditors	$ 101,773	$ 108,174
Mortgage loans held for sale, pledged to creditors	4,481,210	2,478,858
Servicing advances, net, valuation allowance	73,024	70,582
Servicing advances pledged to creditors	181,747	162,895
Mortgage servicing rights, at fair value	2,550,602	2,807,333
Furniture, fixtures, equipment and building improvements pledged to creditors	22,172	16,281
Capitalized software pledged to creditors	$ 14,090	$ 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	78,434,556	77,494,332
Common stock, shares outstanding	78,434,556	77,494,332

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Net gains on loans held for sale at fair value:
From non-affiliates	$ 175,070	$ 38,349	$ 345,045	$ 143,396
Net gains on loans held for sale at fair value	235,732	56,914	468,041	189,274
Loan origination fees from non-affiliates	45,212	24,366	100,721	70,607
Loan origination fees	49,434	26,485	110,288	75,476
Loan servicing fees
From non-affiliates and affiliates	185,967	147,182	533,510	421,536
Other	26,018	17,009	74,043	44,817
Loan servicing fees	224,949	174,262	642,655	496,877
Change in fair value of mortgage servicing rights and mortgage servicing liabilities	(162,584)	(63,450)	(448,240)	(147,670)
Change in fair value of excess servicing spread payable to PennyMac Mortgage Investment Trust	(158,720)	(64,559)	(436,721)	(156,696)
Net loan servicing fees	66,229	109,703	205,934	340,181
Interest income:
From non-affiliates	81,925	59,152	207,670	152,997
Interest income	83,452	60,964	212,685	158,683
Interest expense:
To non-affiliates	54,089	35,035	138,723	96,552
Interest expense	56,380	38,775	146,847	108,136
Net interest income	27,072	22,189	65,838	50,547
Management fees, net:
Management fees	10,098	6,471	26,178	17,910
Result of real estate acquired in settlement of loans	188	194	1,205	179
Other	2,379	2,605	6,855	7,048
Total net revenue	436,347	250,929	987,029	733,428
Expenses
Compensation	141,132	103,364	362,449	303,917
Servicing	47,909	40,797	107,210	95,586
Loan origination	34,851	7,203	72,419	14,462
Technology	20,385	15,273	52,431	45,047
Occupancy and equipment	7,257	7,117	21,075	20,001
Professional services	9,682	7,117	21,876	18,442
Other	8,934	8,361	23,491	26,582
Total expenses	270,150	189,232	660,951	524,037
Income before provision for income taxes	166,197	61,697	326,078	209,391
Provision for income taxes	44,724	5,545	85,774	17,908
Net income	121,473	56,152	240,304	191,483
Less: Net income attributable to noncontrolling interest		41,663		142,538
Net income attributable to PennyMac Financial Services, Inc. common stockholders	$ 121,473	$ 14,489	$ 240,304	$ 48,945
Earnings per share
Basic (in dollars per share)	$ 1.55	$ 0.58	$ 3.08	$ 1.99
Diluted (in dollars per share)	$ 1.51	$ 0.57	$ 3.01	$ 1.94
Weighted-average shares outstanding
Basic (in shares)	78,361	25,125	78,119	24,644
Diluted (in shares)	80,382	78,913	79,821	78,954
Dividend declared per share of Class A common stock (in dollars per share)		$ 0.40		$ 0.40
PMT
Net gains on loans held for sale at fair value:
From PennyMac Mortgage Investment Trust	$ 60,662	$ 18,565	$ 122,996	$ 45,878
Loan origination fees from PennyMac Mortgage Investment Trust	4,222	2,119	9,567	4,869
Fulfillment fees from PennyMac Mortgage Investment Trust	45,149	26,256	102,313	52,759
Loan servicing fees
From non-affiliates and affiliates	12,964	10,071	35,102	30,521
Changes in fair value included in income	3,864	(1,109)	11,519	(9,026)
Interest income:
From PennyMac Mortgage Investment Trust	1,527	1,812	5,015	5,686
Interest expense:
To PennyMac Mortgage Investment Trust	2,291	3,740	8,124	11,584
Management fees, net:
Management fees	10,098	6,482	26,178	17,906
Change in fair value of investment in and dividends received from affiliate	$ 66	129	$ 377	419
Investment Funds
Loan servicing fees
From non-affiliates and affiliates				3
Management fees, net:
Management fees		(11)		4
Carried Interest from Investment Funds		$ (17)		$ (365)

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				48,945	142,538		191,483
Stock and unit-based compensation			7,400		18,084		25,484
Stock and unit-based compensation (in shares)	285
Class A common stock dividends ($0.40 per share)				(10,054)			(10,054)
Issuance of common stock in settlement of director fees			79		166		245
Exchange of Class A units of Private National Mortgage Acceptance Company, LLC to Class A common stock of PennyMac Financial Services, Inc.	$ 1		32,501		(32,502)		$ 32,501
Exchange of Class A units of Private National Mortgage Acceptance Company, LLC to Class A common stock of PennyMac Financial Services, Inc. (in shares)	1,616						1,616
Repurchase of common stock			(1,554)		(3,272)	$ (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.			(6,072)				(6,072)
Balance at Sep. 30, 2018	$ 3		236,457	304,386	1,375,864		1,916,710
Balance (in shares) at Sep. 30, 2018	25,195
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
Changes in stockholders' equity
Net income				14,489	41,663		56,152
Stock and unit-based compensation			2,944		6,472		9,416
Stock and unit-based compensation (in shares)	55
Class A common stock dividends ($0.40 per share)				(10,054)			(10,054)
Issuance of common stock in settlement of director fees			28		57		85
Exchange of Class A units of Private National Mortgage Acceptance Company, LLC to Class A common stock of PennyMac Financial Services, Inc.			4,377		(4,377)		$ 4,377
Exchange of Class A units of Private National Mortgage Acceptance Company, LLC to Class A common stock of PennyMac Financial Services, Inc. (in shares)	131						131
Tax effect of exchange of Class A units of Private National Mortgage Acceptance Company, LLC to Class A common stock of PennyMac Financial Services, Inc.			(833)				$ (833)
Balance at Sep. 30, 2018	$ 3		236,457	304,386	$ 1,375,864		1,916,710
Balance (in shares) at Sep. 30, 2018	25,195
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				240,304			240,304
Stock and unit-based compensation			18,390				18,390
Stock and unit-based compensation (in shares)		984
Issuance of common stock in settlement of director fees			184				184
Issuance of common stock in settlement of director fees (in shares)		8
Repurchase of common stock			(1,056)			$ (1,056)	(1,056)
Repurchase of common stock (in shares)		(51)				(51)
Balance at Sep. 30, 2019		$ 8	1,328,166	583,439			1,911,613
Balance (in shares) at Sep. 30, 2019		78,435
Balance at Jun. 30, 2019		$ 8	1,317,023	461,966			1,778,997
Balance (in shares) at Jun. 30, 2019		78,305
Changes in stockholders' equity
Net income				121,473			121,473
Stock and unit-based compensation			11,095				11,095
Stock and unit-based compensation (in shares)		128
Issuance of common stock in settlement of director fees			48				48
Issuance of common stock in settlement of director fees (in shares)		2
Balance at Sep. 30, 2019		$ 8	$ 1,328,166	$ 583,439			$ 1,911,613
Balance (in shares) at Sep. 30, 2019		78,435

CONSOLIDATED STATEMENTS OF CH_2

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

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Cash flow from operating activities
Net income	$ 240,304	$ 191,483
Adjustments to reconcile net income to net cash used in operating activities:
Net gains on loans held for sale at fair value	(468,041)	(189,274)
Change in fair value of mortgage servicing rights, mortgage servicing liabilities and excess servicing spread	436,721	156,696
Capitalization of interest on loans held for sale at fair value	(56,800)	(67,025)
Accrual of interest on excess servicing spread financing	8,124	11,584
Amortization of net debt issuance (premiums) and costs	(6,601)	(19,198)
Results of real estate acquired in settlement of loans	(1,205)	(179)
Stock based compensation expense	19,124	20,766
Provision for servicing advance losses	19,973	24,046
Depreciation and amortization	10,650	9,046
Amortization of right-to-use assets	7,258
Purchase of loans held for sale from nonaffiliates	(1,132,749)	(409,546)
Origination of loans held for sale	(7,249,762)	(3,640,045)
Purchase of loans from Ginnie Mae securities and early buyout investors for modification and subsequent sale	(4,172,281)	(3,342,029)
Sale and principal payments of loans held for sale to non-affiliates	39,084,441	34,208,217
Repurchase of loans subject to representations and warranties	(15,427)	(24,891)
Settlement of repurchase agreement derivatives	31,993	19,460
(Increase) decrease in servicing advances	(9,871)	35,813
Sale of real estate acquired in settlement of loans	17,141	3,004
(Increase) decrease in other assets	(22,415)	9,291
Decrease in operating lease liabilities	(9,234)
Increase in accounts payable and accrued expenses	78,800	14,021
Net cash (used in) provided by operating activities	(1,690,141)	732,584
Cash flow from investing activities
Decrease in short-term investments	27,161	24,604
Net settlement of derivative financial instruments used for hedging	542,139	(182,402)
Purchase of mortgage servicing rights	(227,445)	(180,139)
Purchase of furniture, fixtures, equipment and leasehold improvements	(5,534)	(8,919)
Acquisition of capitalized software	(22,190)	(13,091)
Increase in margin deposits	(168,062)	(836)
Net cash provided by (used in) investing activities	169,416	(349,783)
Cash flow from financing activities
Sale of assets under agreements to repurchase	41,296,345	31,318,277
Repurchase of assets sold under agreements to repurchase	(39,692,086)	(31,960,304)
Issuance of mortgage loan participation purchase and sale certificates	17,498,589	19,398,281
Repayment of mortgage loan participation purchase and sale certificates	(17,516,431)	(19,401,301)
Advances of obligations under capital lease	25,123
Repayments of obligations under capital lease	(7,847)	(11,341)
Advances on notes payable		1,300,000
Repayments of notes payable		(900,000)
Repayment of excess servicing spread financing	(30,901)	(35,852)
Payment of debt issuance costs	(4,489)	(15,320)
Issuance of common stock pursuant to exercise of stock options	3,900	4,718
Repurchase of common stock	(1,056)	(4,826)
Payment of withholding taxes relating to stock-based compensation	(4,634)
Payment of dividend to Class A common stockholders		(10,054)
Net cash provided by (used in) financing activities	1,566,513	(317,722)
Net increase in cash and restricted cash	45,788	65,079
Cash and restricted cash at beginning of period	155,924	38,173
Cash and restricted cash at end of period	201,712	103,252
Cash	201,268	102,627
Restricted cash included in Other assets	444	625
Investment Funds
Adjustments to reconcile net income to net cash used in operating activities:
Carried Interest from Investment Funds		365
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	(270)	(313)
Purchase of loans held for sale from PennyMac Mortgage Investment Trust	(32,619,639)	(28,584,762)
Sale of loans held for sale to Penny Mac Mortgage Investment Trust	4,095,079	2,336,162
Increase in receivable from affiliates	(9,598)	(2,825)
Decrease in payable to affiliate	(45,869)	(46,731)
Increase in income taxes payable	80,013	19,448
Cash flow from investing activities
Net change in assets purchased from PMT under agreement to resell	$ 23,347	$ 11,000

Organization

Organization	9 Months Ended
	Sep. 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, 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. 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	9 Months Ended
	Sep. 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 FASB 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 amounts reported in 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 existing 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 lease commencement date to determine the present value of its lease payment obligations. The operating lease right-of-use assets also reflect any lease payments made and are 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	9 Months Ended
	Sep. 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 gains on loans held for sale, loan servicing fees, 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 in and dividends received from PMT) totaled 32% and 25% of total net revenue for the quarters ended September 30, 2019 and 2018, respectively, and 31% and 19% for the nine months ended September 30, 2019 and 2018, respectively.

Transactions with Affiliates

Transactions with Affiliates	9 Months Ended
	Sep. 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 September 30, Nine months ended September 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 $ 62,558 $ 19,722 $ 127,423 $ 49,396 Mortgage servicing rights and excess servicing spread recapture incurred (1,896) (1,157) (4,427) (3,518) $ 60,662 $ 18,565 $ 122,996 $ 45,878 Sale of loans held for sale to PMT $ 1,876,358 $ 908,525 $ 4,095,079 $ 2,336,162 Tax service fees earned from PMT included in Loan origination fees $ 4,222 $ 2,119 $ 9,567 $ 4,869 Fulfillment fee revenue $ 45,149 $ 26,256 $ 102,313 $ 52,759 Unpaid principal balance of loans fulfilled for PMT subject to fulfillment fees $ 16,647,172 $ 7,517,883 $ 35,523,802 $ 17,139,884 Sourcing fees paid to PMT $ 4,206 $ 2,689 $ 9,355 $ 8,221 Unpaid principal balance of loans purchased from PMT $ 14,022,222 $ 8,916,654 $ 31,183,950 $ 27,404,022 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 for fixed-rate loans and $8.50 per month for adjustable-rate loans. 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 September 30, Nine months ended September 30, 2019 2018 2019 2018 (in thousands) Loans acquired for sale at fair value $ 507 $ 316 $ 1,131 $ 739 Loans at fair value 858 1,271 1,938 5,528 Mortgage servicing rights 11,599 8,484 32,033 24,254 $ 12,964 $ 10,071 $ 35,102 $ 30,521 Property management fees received from PMT included in Other income $ 70 $ 122 $ 295 $ 333 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 September 30, Nine months ended September 30, 2019 2018 2019 2018 (in thousands) Base management $ 7,914 $ 5,799 $ 20,862 $ 17,223 Performance incentive 2,184 683 5,316 683 $ 10,098 $ 6,482 $ 26,178 $ 17,906 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 September 30, Nine months ended September 30, 2019 2018 2019 2018 (in thousands) Reimbursement of: Common overhead incurred by the Company included in Other revenue $ 1,543 $ 1,210 $ 4,055 $ 3,387 Compensation included in Other revenue 120 120 360 360 Expenses incurred on PMT's behalf, net 1,942 527 3,001 586 $ 3,605 $ 1,857 $ 7,416 $ 4,333 Payments and settlements during the period (1) $ 68,191 $ 21,650 $ 111,411 $ 45,265 (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 $219,000 in reimbursement of underwriting fees from PMT during the nine months ended September 30, 2019. Investing Activities Master Repurchase Agreement On December 19, 2016, the Company, through PLS, entered into a master repurchase agreement with one of PMT’s wholly-owned subsidiaries, PennyMac Holdings, LLC (“PMH”) (the “PMH Repurchase Agreement”), pursuant to which PMH may borrow from the Company for the purpose of financing PMH’s participation certificates representing beneficial ownership in ESS. PLS then re-pledges such participation certificates to PNMAC GMSR ISSUER TRUST (the “Issuer Trust”) under a master repurchase agreement by and among PLS, the Issuer Trust and PennyMac, as guarantor (the “PC Repurchase Agreement”). The Issuer Trust was formed for the purpose of allowing PLS to finance MSRs and ESS relating to such MSRs (the “GNMA MSR Facility”). In connection with the GNMA MSR Facility, PLS pledges and/or sells to the Issuer Trust participation certificates representing beneficial interests in MSRs and ESS pursuant to the terms of the PC Repurchase Agreement. In return, the Issuer Trust (a) has issued to PLS, pursuant to the terms of an indenture, the Series 2016-MSRVF1 Variable Funding Note, dated December 19, 2016, known as the “PNMAC GMSR ISSUER TRUST MSR Collateralized Notes, Series 2016-MSRVF1” (the “VFN”), and (b) has issued and may, from time to time pursuant to the terms of any supplemental indenture, issue to institutional investors additional term notes (“Term Notes”), in each case secured on a pari passu basis by the participation certificates relating to the MSRs and ESS. The maximum principal balance of the VFN is $1,000,000,000. The principal amount paid by PLS for the participation certificates under the PMH Repurchase Agreement is based upon a percentage of the market value of the underlying ESS. Upon PMH’s repurchase of the participation certificates, PMH is required to repay PLS the principal amount relating thereto plus accrued interest (at a rate reflective of the current market and consistent with the weighted average note rate of the VFN and any outstanding Term Notes) to the date of such repurchase. PLS is then required to repay the Issuer Trust the corresponding amount under the PC Repurchase Agreement. The Company holds an investment in PMT in the form of 75,000 common shares of beneficial interest. Following is a summary of investing activities between the Company and PMT: Quarter ended September 30, Nine months ended September 30, 2019 2018 2019 2018 (in thousands) Interest income relating to Assets purchased from PennyMac Mortgage Investment Trust under agreements to resell $ 1,527 $ 1,812 $ 5,015 $ 5,686 Common shares of beneficial interest of PennyMac Mortgage Investment Trust: Dividends received $ 36 $ 35 $ 107 $ 106 Change in fair value of investment 30 94 270 313 $ 66 $ 129 $ 377 $ 419 September 30, December 31, 2019 2018 (in thousands) Assets purchased from PennyMac Mortgage Investment Trust under agreements to resell $ 107,678 $ 131,025 Common shares of beneficial interest of PennyMac Mortgage Investment Trust: Fair value $ 1,667 $ 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 September 30, Nine months ended September 30, 2019 2018 2019 2018 (in thousands) Excess servicing spread financing: Issuance pursuant to recapture agreement $ 377 $ 499 $ 1,327 $ 1,983 Repayment $ 9,819 $ 11,543 $ 30,901 $ 35,852 Gain (loss) recognized $ 3,864 $ (1,109) $ 11,519 $ (9,026) Interest expense $ 2,291 $ 3,740 $ 8,124 $ 11,584 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 $ 429 $ 597 $ 1,311 $ 1,951 September 30, December 31, 2019 2018 (in thousands) Excess servicing spread financing at fair value $ 183,141 $ 216,110 Receivable from and Payable to PMT Amounts receivable from and payable to PMT are summarized below: September 30, December 31, 2019 2018 (in thousands) Receivable from PMT: Fulfillment fees $ 14,409 $ 10,006 Management fees 10,230 6,559 Correspondent production fees 5,501 2,071 Servicing fees 4,768 4,841 Allocated expenses and expenses incurred on PMT's behalf 4,166 9,066 Conditional Reimbursement 582 801 Interest on assets purchased under agreements to resell 88 120 $ 39,744 $ 33,464 Payable to PMT: Deposits made by PMT to fund servicing advances $ 56,869 $ 100,554 Mortgage servicing rights recapture payable 162 179 Other 4,831 3,898 $ 61,862 $ 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, to the extent any of the tax benefits specified above are deemed to be realized, 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 September 30, 2019 and December 31, 2018. The Company did not make any payments under the tax receivable agreement during the nine months ended September 30, 2019 and 2018.

Loan Sales and Servicing Activi

Loan Sales and Servicing Activities	9 Months Ended
	Sep. 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 September 30, Nine months ended September 30, 2019 2018 2019 2018 (in thousands) Cash flows: Sales proceeds $ 17,897,693 $ 11,375,408 $ 39,084,441 $ 34,208,217 Servicing fees received (1) $ 149,210 $ 123,626 $ 426,774 $ 354,535 Net servicing advances (recoveries) $ 8,605 $ 4,147 $ (23,583) $ (20,572) (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: September 30, December 31, 2019 2018 (in thousands) Unpaid principal balance of loans outstanding $ 159,638,921 $ 145,224,596 Delinquencies: 30-89 days $ 7,828,087 $ 6,222,864 90 days or more: Not in foreclosure $ 2,480,348 $ 2,208,083 In foreclosure $ 1,199,933 $ 720,894 Foreclosed $ 11,369 $ 24,243 Bankruptcy $ 1,339,983 $ 970,329 The following tables summarize the UPB of the Company’s loan servicing portfolio: September 30, 2019 Contract Servicing servicing and Total rights owned subservicing loans serviced (in thousands) Investor: Non-affiliated entities: Originated $ 159,638,921 $ — $ 159,638,921 Purchased 63,904,759 — 63,904,759 223,543,680 — 223,543,680 PennyMac Mortgage Investment Trust — 120,608,076 120,608,076 Loans held for sale 4,323,252 — 4,323,252 $ 227,866,932 $ 120,608,076 $ 348,475,008 Delinquent loans: 30 days $ 8,114,297 $ 879,366 $ 8,993,663 60 days 2,432,250 147,325 2,579,575 90 days or more: Not in foreclosure 3,043,663 181,330 3,224,993 In foreclosure 1,518,946 87,284 1,606,230 Foreclosed 13,372 110,821 124,193 $ 15,122,528 $ 1,406,126 $ 16,528,654 Bankruptcy $ 1,872,679 $ 124,619 $ 1,997,298 Custodial funds managed by the Company (1) $ 6,976,614 $ 3,018,131 $ 9,994,745 (1) 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: September 30, December 31, State 2019 2018 (in thousands) California $ 55,400,197 $ 51,377,441 Florida 27,435,384 22,650,926 Texas 26,509,926 23,648,042 Virginia 21,056,414 19,011,950 Maryland 15,968,754 13,774,011 All other states 202,104,333 168,831,502 $ 348,475,008 $ 299,293,872

Fair Value

Fair Value	9 Months Ended
	Sep. 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. The Company 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: September 30, 2019 Level 1 Level 2 Level 3 Total (in thousands) Assets: Short-term investments $ 90,663 $ — $ — $ 90,663 Loans held for sale at fair value — 4,437,954 85,017 4,522,971 Derivative assets: Interest rate lock commitments — — 147,400 147,400 Repurchase agreement derivatives — — 8,187 8,187 Forward purchase contracts — 17,943 — 17,943 Forward sales contracts — 6,141 — 6,141 MBS put options — 10,040 — 10,040 Put options on interest rate futures purchase contracts 6,266 — — 6,266 Call options on interest rate futures purchase contracts 2,414 — — 2,414 Total derivative assets before netting 8,680 34,124 155,587 198,391 Netting — — — 34,557 Total derivative assets 8,680 34,124 155,587 232,948 Mortgage servicing rights at fair value — — 2,556,253 2,556,253 Investment in PennyMac Mortgage Investment Trust 1,667 — — 1,667 $ 101,010 $ 4,472,078 $ 2,796,857 $ 7,404,502 Liabilities: Excess servicing spread financing payable to PennyMac Mortgage Investment Trust at fair value $ — $ — $ 183,141 $ 183,141 Derivative liabilities: Interest rate lock commitments — — 2,276 2,276 Forward purchase contracts — 51,585 — 51,585 Forward sales contracts — 34,498 — 34,498 Total derivative liabilities before netting — 86,083 2,276 88,359 Netting — — — (74,324) Total derivative liabilities — 86,083 2,276 14,035 Mortgage servicing liabilities at fair value — — 34,294 34,294 $ — $ 86,083 $ 219,711 $ 231,470 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 nine month periods ended September 30, 2019 and 2018: Quarter ended September 30, 2019 Net interest Repurchase Mortgage Loans held rate lock agreement servicing Assets for sale commitments (1) derivatives rights Total (in thousands) Balance, June 30, 2019 $ 217,998 $ 111,776 $ 16,015 $ 2,720,335 $ 3,066,124 Purchases and issuances, net 1,861,769 199,274 1,502 46 2,062,591 Sales and repayments (1,582,564) — (9,422) — (1,591,986) Mortgage servicing rights resulting from loan sales — — — 246,757 246,757 Changes in fair value included in income arising from: Changes in instrument-specific credit risk 4,252 — — — 4,252 Other factors — 92,138 92 (410,885) (318,655) 4,252 92,138 92 (410,885) (314,403) Transfers from Level 3 to Level 2 (416,062) — — — (416,062) Transfers to real estate acquired in settlement of loans (376) — — — (376) Transfers of interest rate lock commitments to loans held for sale — (258,064) — — (258,064) Balance, September 30, 2019 $ 85,017 $ 145,124 $ 8,187 $ 2,556,253 $ 2,794,581 Changes in fair value recognized during the quarter relating to assets still held at September 30, 2019 $ (2,328) $ 145,124 $ 41 $ (410,885) $ (268,048) (1) For the purpose of this table, the IRLC asset and liability positions are shown net. Quarter ended September 30, 2019 Excess servicing Mortgage spread servicing Liabilities financing liabilities Total (in thousands) Balance, June 30, 2019 $ 194,156 $ 12,948 $ 207,104 Issuance of excess servicing spread financing pursuant to a recapture agreement with PennyMac Mortgage Investment Trust 377 — 377 Accrual of interest 2,291 — 2,291 Repayments (9,819) — (9,819) Mortgage servicing liabilities resulting from loan sales — 19,501 19,501 Changes in fair value included in income (3,864) 1,845 (2,019) Balance, September 30, 2019 $ 183,141 $ 34,294 $ 217,435 Changes in fair value recognized during the quarter relating to liabilities still outstanding at September 30, 2019 $ (3,864) $ 1,845 $ (2,019) Quarter ended September 30, 2018 Net interest Repurchase Mortgage Loans held rate lock agreement servicing Assets for sale commitments (1) derivatives rights Total (in thousands) Balance, June 30, 2018 $ 334,166 $ 55,689 $ 25,781 $ 2,486,157 $ 2,901,793 Purchases and issuances, net 1,008,662 41,721 12,903 163,511 1,226,797 Sales and repayments (231,921) — (11,982) — (243,903) Mortgage servicing rights resulting from loan sales — — — 149,000 149,000 Changes in fair value included in income arising from: Changes in instrument-specific credit risk 84 — — — 84 Other factors — 10,696 (227) (12,704) (2,235) 84 10,696 (227) (12,704) (2,151) Transfers from Level 3 to Level 2 (744,324) — — — (744,324) Transfers to real estate acquired in settlement of loans (1,364) — — — (1,364) Transfers of interest rate lock commitments to loans held for sale — (70,943) — — (70,943) Balance, September 30, 2018 $ 365,303 $ 37,163 $ 26,475 $ 2,785,964 $ 3,214,905 Changes in fair value recognized during the quarter relating to assets still held at September 30, 2018 $ (4,811) $ 37,163 $ — $ (12,704) $ 19,648 (1) For the purpose of this table, the IRLC asset and liability positions are shown net. Quarter ended September 30, 2018 Excess servicing Mortgage spread servicing Liabilities financing liabilities Total (in thousands) Balance, June 30, 2018 $ 229,470 $ 10,253 $ 239,723 Issuance of excess servicing spread financing pursuant to a recapture agreement with PennyMac Mortgage Investment Trust 499 — 499 Accrual of interest 3,740 — 3,740 Repayments (11,543) — (11,543) Mortgage servicing liabilities resulting from loan sales — 1,741 1,741 Changes in fair value included in income 1,109 (2,225) (1,116) Balance, September 30, 2018 $ 223,275 $ 9,769 $ 233,044 Changes in fair value recognized during the quarter relating to liabilities still outstanding at September 30, 2018 $ 1,109 $ (2,225) $ (1,116) Nine months ended September 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 3,537,177 376,137 15,019 227,445 4,155,778 Sales and repayments (2,414,899) — (31,994) — (2,446,893) Mortgage servicing rights resulting from loan sales — — — 545,839 545,839 Changes in fair value included in income arising from: Changes in instrument-specific credit risk (2,025) — — — (2,025) Other factors — 248,889 (1,608) (1,037,643) (790,362) (2,025) 248,889 (1,608) (1,037,643) (792,387) Transfers from Level 3 to Level 2 (1,292,824) — — — (1,292,824) Transfers to real estate acquired in settlement of loans (2,420) — — — (2,420) Transfers of interest rate lock commitments to loans held for sale — (529,240) — — (529,240) Balance, September 30, 2019 $ 85,017 $ 145,124 $ 8,187 $ 2,556,253 $ 2,794,581 Changes in fair value recognized during the period relating to assets still held at September 30, 2019 $ (2,478) $ 145,124 $ 165 $ (1,037,643) $ (894,832) (1) For the purpose of this table, the IRLC asset and liability positions are shown net. Nine months ended September 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 1,327 — 1,327 Accrual of interest 8,124 — 8,124 Repayments (30,901) — (30,901) Mortgage servicing liabilities resulting from loan sales — 27,133 27,133 Changes in fair value included in income (11,519) (1,520) (13,039) Balance, September 30, 2019 $ 183,141 $ 34,294 $ 217,435 Changes in fair value recognized during the period relating to liabilities still outstanding at September 30, 2019 $ (11,519) $ (1,520) $ (13,039) Nine months ended September 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 2,480,523 157,649 36,624 193,640 2,868,436 Sales and repayments (1,122,448) — (19,460) — (1,141,908) Mortgage servicing rights resulting from loan sales — — — 448,604 448,604 Changes in fair value included in income arising from: Changes in instrument-specific credit risk (4,944) — — — (4,944) Other factors — (28,627) (1,345) 23,284 (6,688) (4,944) (28,627) (1,345) 23,284 (11,632) Transfers from Level 3 to Level 2 (1,765,854) — — — (1,765,854) Transfers to real estate acquired in settlement of loans (4,185) — — — (4,185) Transfers of interest rate lock commitments to loans held for sale — (150,131) — — (150,131) Balance, September 30, 2018 $ 365,303 $ 37,163 $ 26,475 $ 2,785,964 $ 3,214,905 Changes in fair value recognized during the period relating to assets still held at September 30, 2018 $ (4,912) $ 37,163 $ — $ 23,284 $ 55,535 (1) For the purpose of this table, the IRLC asset and liability positions are shown net. Nine months ended September 30, 2018 Excess servicing Mortgage spread servicing 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 1,983 — 1,983 Accrual of interest 11,584 — 11,584 Repayments (35,852) — (35,852) Mortgage servicing liabilities resulting from loan sales — 5,548 5,548 Changes in fair value included in income 9,026 (9,899) (873) Balance, September 30, 2018 $ 223,275 $ 9,769 $ 233,044 Changes in fair value recognized during the period relating to liabilities still outstanding at September 30, 2018 $ 9,026 $ (9,899) $ (873) 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 September 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 $ — $ 263,339 $ 263,339 $ — $ 67,709 $ 67,709 Mortgage servicing rights (410,885) — (410,885) (12,704) — (12,704) $ (410,885) $ 263,339 $ (147,546) $ (12,704) $ 67,709 $ 55,005 Liabilities: Excess servicing spread financing payable to PennyMac Mortgage Investment Trust $ 3,864 $ — $ 3,864 $ (1,109) $ — $ (1,109) Mortgage servicing liabilities (1,845) — (1,845) 2,225 — 2,225 $ 2,019 $ — $ 2,019 $ 1,116 $ — $ 1,116 Nine months ended September 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 $ — $ 538,086 $ 538,086 $ — $ 118,452 $ 118,452 Mortgage servicing rights (1,037,643) — (1,037,643) 23,284 — 23,284 $ (1,037,643) $ 538,086 $ (499,557) $ 23,284 $ 118,452 $ 141,736 Liabilities: Excess servicing spread financing payable to PennyMac Mortgage Investment Trust $ 11,519 $ — $ 11,519 $ (9,026) $ — $ (9,026) Mortgage servicing liabilities 1,520 — 1,520 9,899 — 9,899 $ 13,039 $ — $ 13,039 $ 873 $ — $ 873 Following are the fair value and related principal amounts due upon maturity of loans held for sale accounted for under the fair value option: September 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 $ 4,478,965 $ 4,275,981 $ 202,984 $ 2,324,203 $ 2,220,371 $ 103,832 90 days or more delinquent: Not in foreclosure 20,972 22,145 (1,173) 143,631 144,011 (380) In foreclosure 23,034 25,126 (2,092) 53,813 56,254 (2,441) $ 4,522,971 $ 4,323,252 $ 199,719 $ 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) September 30, 2019 $ — $ — $ 8,575 $ 8,575 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 September 30, Nine months ended September 30, 2019 2018 2019 2018 (in thousands) Real estate acquired in settlement of loans $ 139 $ (41) $ 162 $ (72) 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 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 September 30, 2019 was based on non-affiliate broker indications of fair value. The fair value of Term Notes at December 31, 2018 was estimated using a discounted cash flow approach using indications of market pricing spreads provided by non-affiliate brokers to develop an appropriate discount rate. The fair value and carrying value of the Term Notes are summarized below: Term Notes September 30, 2019 December 31, 2018 (in thousands) Fair value $ 1,306,828 $ 1,285,894 Carrying value $ 1,293,625 $ 1,292,291 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 are measured using 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, the Company 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 contracted selling price or quoted market 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 security. 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 not 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: September 30, 2019 December 31, 2018 Carrying value (in thousands) $ 85,017 $ 260,008 Key inputs (1): Discount rate: Range 3.2% – 9.2% 2.8% – 9.2% Weighted average 3.4% 2.9% Twelve-month projected housing price index change: Range 2.6% – 3.2% 2.2% – 5.0% Weighted average 2.9% 3.5% Voluntary prepayment/resale speed (2): Range 0.3% – 19.2% 0.1% – 21.8% Weighted average 15.8% 20.1% Total prepayment speed (3): Range 0.6% – 34.8% 0.1% – 40.5% Weighted average 29.6% 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 be funded or 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: September 30, 2019 December 31, 2018 Carrying value (in thousands) (1) $ 145,124 $ 49,338 Key inputs (2): Pull-through rate: Range 12.2% – 100% 16.6% – 100% Weighted average 85.6% 84.1% Mortgage servicing rights value expressed as: Servicing fee multiple: Range 1.4 – 5.7 1.5 – 5.5 Weighted average 4.0 3.8 Percentage of unpaid principal balance: Range 0.3% – 2.9% 0.4% – 3.2% Weighted average 1.6% 1.5% (1) For purpose of this table, IRLC asset and liability positions are shown net. (2) 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 Through August 21, 2019, the Company had a master repurchase agreement that included 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 reporting purposes from the master repurchase agreement. The Company classifies repurchase agreement derivatives as “Level 3” fair value assets. The significant unobservable inputs into the valuation of repurchase agreement 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 were 99.0% and 97.0% at September 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 September 30, Nine months ended September 30, 2019 2018 2019 2018 (Amount recognized and unpaid principal balance of underlying loans in thousands) MSR and pool characteristics: Amount recognized $ 246,757 $ 149,000 $ 545,839 $ 448,604 Unpaid principal balance of underlying loans $ 15,709,249 $ 10,790,398 $ 35,532,425 $ 32,095,458 Weighted average servicing fee rate (in basis points) 43 37 42 36 Key inputs (1): Pricing spread (2) Range 5.5% – 16.2% 7.3% – 13.6% 5.5% – 16.2% 7.3% – 14.1% Weighted average 8.3% 10.1% 8.6% 10.2% Annual total prepayment speed (3) Range 8.8% – 32.1% 4.4% – 55.7% 7.7% – 32.8% 3.9% – 61.8% Weighted average 15.7% 11.8% 15.0% 10.6% Life (in years) Range 2.7 – 7.5 0.5 – 11.3 2.6 – 7.8 0.5 – 11.6 Weighted average 5.5 6.9 5.8 7.5 Per-loan annual cost of servicing Range $78 – $100 $78 – $98 $78 – $100 $78 – $98 Weighted average $97 $92 $97 $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: September 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 $ 2,556,253 $ 2,820,612 Unpaid principal balance of underlying loans $ 221,215,993 $ 201,054,144 Weighted average note interest rate 4.0% 4.0% Weighted average servicing fee rate (in basis points) 34 33 Key inputs (1): Pricing spread (2): Range 5.9% – 15.8% 5.8% – 16.1% Weighted average 8.5% 8.7% Effect on fair value of: 5% adverse change ($35,830) ($45,268) 10% adverse change ($70,578) ($89,073) 20% adverse change ($137,016) ($172,556) Prepayment speed (3): Range 9.8% – 33.0% 8.4% – 32.6% Weighted average 15.6% 9.9% Average life (in years): Range 1.4 – 7.2 1.5 – 7.9 Weighted average 5.2 7.2 Effect on fair value of: 5% adverse change ($64,047) ($47,687) 10% adverse change ($124,892) ($93,626) 20% adverse change ($237,822) ($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 ($21,731) ($22,944) 10% adverse change ($43,462) ($45,888) 20% adverse change ($86,925) ($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

Loans Held for Sale at Fair Val

Loans Held for Sale at Fair Value	9 Months Ended
	Sep. 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: September 30, December 31, Loan type 2019 2018 (in thousands) Government-insured or guaranteed $ 4,148,681 $ 2,116,126 Conventional conforming 289,273 144,872 Jumbo — 641 Home equity lines of credit 14 — Purchased from Ginnie Mae pools serviced by the Company 76,105 250,585 Repurchased pursuant to representations and warranties 8,898 9,423 $ 4,522,971 $ 2,521,647 Fair value of loans pledged to secure: Assets sold under agreements to repurchase $ 3,939,161 $ 1,923,857 Mortgage loan participation purchase and sale agreements 542,049 555,001 $ 4,481,210 $ 2,478,858

Derivative Financial Instrument

Derivative Financial Instruments	9 Months Ended
	Sep. 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 when the Company 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 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 does not designate and qualify any of its derivatives for hedge accounting. The Company records all derivative financial instruments at fair value and records changes in fair value in current period income. Derivative Notional Amounts and Fair Value of Derivatives The Company had the following derivative financial instruments recorded on its consolidated balance sheets: September 30, 2019 December 31, 2018 Fair value Fair value Notional Derivative Derivative Notional Derivative Derivative Instrument amount assets liabilities amount assets liabilities (in thousands) Not subject to master netting arrangements: Interest rate lock commitments 8,311,786 $ 147,400 $ 2,276 2,805,400 $ 50,507 $ 1,169 Repurchase agreement derivatives 8,187 — 26,770 — Used for hedging purposes: Forward purchase contracts 15,829,825 17,943 51,585 6,657,026 35,916 215 Forward sales contracts 15,116,810 6,141 34,498 6,890,046 437 26,762 MBS put options 10,050,000 10,040 — 4,635,000 720 — MBS call options — — — 1,450,000 2,135 — Put options on interest rate futures purchase contracts 4,350,000 6,266 — 3,085,000 866 — Call options on interest rate futures purchase contracts 600,000 2,414 — 1,512,500 5,965 — Treasury futures purchase contracts 1,408,500 — — 835,000 — — Treasury futures sale contracts 1,132,500 — — 1,450,000 — — Interest rate swap futures purchase contracts 3,910,000 — — 625,000 — — Total derivatives before netting 198,391 88,359 123,316 28,146 Netting 34,557 (74,324) (26,969) (25,082) $ 232,948 $ 14,035 $ 96,347 $ 3,064 Collateral placed with (received from) derivative counterparties $ 108,881 $ (1,887) The following table summarizes notional amount activity for derivative contracts used in the Company’s hedging activities: Quarter ended September 30, 2019 Notional Notional amount amount beginning of Dispositions/ end of Instrument quarter Additions expirations quarter (in thousands) Forward purchase contracts 19,497,698 100,139,970 (103,807,843) 15,829,825 Forward sale contracts 14,276,156 122,174,329 (121,333,675) 15,116,810 MBS put options 12,775,000 29,575,000 (32,300,000) 10,050,000 MBS call options 2,250,000 — (2,250,000) — Put options on interest rate futures purchase contracts 2,835,000 9,850,000 (8,335,000) 4,350,000 Call options on interest rate futures purchase contracts 3,687,500 1,750,000 (4,837,500) 600,000 Put options on interest rate futures sale contracts — 8,335,000 (8,335,000) — Call options on interest rate futures sale contracts — 4,837,500 (4,837,500) — Treasury futures purchase contracts 486,100 5,132,000 (4,209,600) 1,408,500 Treasury futures sale contracts 1,550,000 3,792,100 (4,209,600) 1,132,500 Interest rate swap futures purchase contracts 2,900,000 1,800,000 (790,000) 3,910,000 Interest rate swap futures sales contracts — 790,000 (790,000) — Quarter ended September 30, 2018 Notional Notional amount amount beginning of Dispositions/ end of Instrument quarter Additions expirations quarter (in thousands) Forward purchase contracts 6,617,888 47,038,415 (46,540,682) 7,115,621 Forward sale contracts 7,107,202 58,521,199 (58,917,204) 6,711,197 MBS put options 2,675,000 8,375,000 (6,900,000) 4,150,000 MBS call options — 1,250,000 — 1,250,000 Put options on interest rate futures purchase contracts 1,852,500 4,922,300 (4,549,800) 2,225,000 Call options on interest rate futures purchase contracts 800,000 950,000 (1,350,000) 400,000 Put options on interest rate futures sale contracts — 4,849,800 (4,549,800) 300,000 Call options on interest rate futures sale contracts — 1,350,000 (1,350,000) — Treasury futures purchase contracts 835,000 2,557,100 (2,557,100) 835,000 Treasury futures sale contracts 1,450,000 2,557,100 (2,557,100) 1,450,000 Interest rate swap futures purchase contracts 465,000 420,000 (885,000) — Interest rate swap futures sales contracts — 885,000 (260,000) 625,000 Nine months ended September 30, 2019 Notional Notional amount amount beginning of Dispositions/ end of Instrument period Additions expirations period (in thousands) Forward purchase contracts 6,657,026 237,370,321 (228,197,522) 15,829,825 Forward sale contracts 6,890,046 275,749,351 (267,522,587) 15,116,810 MBS put options 4,635,000 77,185,000 (71,770,000) 10,050,000 MBS call options 1,450,000 6,750,000 (8,200,000) — Put options on interest rate futures purchase contracts 3,085,000 19,422,500 (18,157,500) 4,350,000 Call options on interest rate futures purchase contracts 1,512,500 13,127,800 (14,040,300) 600,000 Put options on interest rate futures sale contracts — 27,297,800 (27,297,800) — Call options on interest rate futures sale contracts — 4,837,500 (4,837,500) — Treasury futures purchase contracts 835,000 11,943,400 (11,369,900) 1,408,500 Treasury futures sale contracts 1,450,000 11,052,400 (11,369,900) 1,132,500 Interest rate swap futures purchase contracts 625,000 4,075,000 (790,000) 3,910,000 Interest rate swap futures sale contracts — 790,000 (790,000) — Nine months ended September 30, 2018 Notional Notional amount amount beginning of Dispositions/ end of Instrument period Additions expirations period (in thousands) Forward purchase contracts 4,920,883 140,158,865 (137,964,127) 7,115,621 Forward sale contracts 5,204,796 174,562,881 (173,056,480) 6,711,197 MBS put options 4,925,000 17,250,000 (18,025,000) 4,150,000 MBS call options — 12,375,000 (11,125,000) 1,250,000 Put options on interest rate futures purchase contracts 2,125,000 16,624,800 (16,524,800) 2,225,000 Call options on interest rate futures purchase contracts 100,000 2,400,000 (2,100,000) 400,000 Put options on interest rate futures sale contracts — 16,824,800 (16,524,800) 300,000 Call options on interest rate futures sale contracts — 2,100,000 (2,100,000) — Treasury futures purchase contracts 100,000 7,453,300 (6,718,300) 835,000 Treasury futures sale contracts — 8,829,600 (7,379,600) 1,450,000 Interest rate swap futures purchase contracts 1,400,000 885,000 (2,285,000) — Interest rate swap futures sales contracts — 2,285,000 (1,660,000) 625,000 Derivative Balances and Netting of Financial Instruments The Company has elected to present net derivative asset and liability positions, and cash collateral obtained from (or posted to) its counterparties when subject to a master netting arrangement that is legally enforceable on all counterparties in the event of default. The derivatives that are not subject to a master netting arrangement are IRLCs and repurchase agreement derivatives. Offsetting of Derivative Assets Following are summaries of derivative assets and related netting amounts: September 30, 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 $ 147,400 $ — $ 147,400 $ 50,507 $ — $ 50,507 Repurchase agreement derivatives 8,187 — 8,187 26,770 — 26,770 155,587 — 155,587 77,277 — 77,277 Derivatives subject to master netting arrangements: Forward purchase contracts 17,943 — 17,943 35,916 — 35,916 Forward sale contracts 6,141 — 6,141 437 — 437 MBS put options 10,040 — 10,040 720 — 720 MBS call options — — — 2,135 — 2,135 Put options on interest rate futures purchase contracts 6,266 — 6,266 866 — 866 Call options on interest rate futures purchase contracts 2,414 — 2,414 5,965 — 5,965 Netting — 34,557 34,557 — (26,969) (26,969) 42,804 34,557 77,361 46,039 (26,969) 19,070 $ 198,391 $ 34,557 $ 232,948 $ 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. September 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 $ 147,400 $ — $ — $ 147,400 $ 50,507 $ — $ — $ 50,507 JPMorgan Chase Bank, N.A. 32,450 — — 32,450 1,399 — — 1,399 Citibank, N.A. 15,951 — — 15,951 2,488 — — 2,488 Morgan Stanley Bank, N.A. 11,842 — — 11,842 — — — RJ O'Brien 8,680 — — 8,680 6,831 — — 6,831 Deutsche Bank 8,187 — — 8,187 26,770 — — 26,770 Wells Fargo Bank, N.A. 5,728 — — 5,728 3,707 — — 3,707 Goldman Sachs 2,252 — — 2,252 — — — — Bank of America, N.A. — — — — 2,781 — — 2,781 Others 458 — — 458 1,864 — — 1,864 $ 232,948 $ — $ — $ 232,948 $ 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. September 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 $ 2,276 $ — $ 2,276 $ 1,169 $ — $ 1,169 Derivatives subject to a master netting arrangement: Forward purchase contracts 51,585 — 51,585 215 — 215 Forward sale contracts 34,498 — 34,498 26,762 — 26,762 Netting — (74,324) (74,324) — (25,082) (25,082) 86,083 (74,324) 11,759 26,977 (25,082) 1,895 Total derivatives 88,359 (74,324) 14,035 28,146 (25,082) 3,064 Assets sold under agreements to repurchase: Amount outstanding 3,539,459 — 3,539,459 1,935,200 — 1,935,200 Unamortized debt issuance premiums and costs, net (570) — (570) (1,341) — (1,341) 3,538,889 — 3,538,889 1,933,859 — 1,933,859 $ 3,627,248 $ (74,324) $ 3,552,924 $ 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. September 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 $ 2,276 $ — $ — $ 2,276 $ 1,169 $ — $ — $ 1,169 Credit Suisse First Boston Mortgage Capital LLC 1,000,098 (999,713) — 385 691,030 (690,766) — 264 Bank of America, N.A. 506,553 (497,335) — 9,218 170,820 (170,820) — — JPMorgan Chase Bank, N.A. 711,619 (711,619) — — 54,326 (54,326) — — Morgan Stanley Bank, N.A. 551,027 (551,027) — — 77,687 (77,687) — — Citibank, N.A. 461,496 (461,496) — — 14,960 (14,960) — — BNP Paribas 192,534 (192,534) — — 149,675 (149,482) — 193 Royal Bank of Canada 125,735 (125,735) — — 35,181 (35,181) — — Deutsche Bank — — — — 741,978 (741,978) — — Federal National Mortgage Association 685 — — 685 — — — — Others 1,471 — — 1,471 1,438 — — 1,438 $ 3,553,494 $ (3,539,459) $ — $ 14,035 $ 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 lines where such gains and losses are included: Quarter ended September 30, Nine months ended September 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 $ 33,347 $ (18,526) $ 95,785 $ (21,109) Repurchase agreement derivatives Interest expense $ 92 $ (227) $ (1,608) $ (1,345) Hedged item: Interest rate lock commitments and loans held for sale Net gains on loans held for sale at fair value $ (55,540) $ 10,820 $ (157,362) $ 100,422 Mortgage servicing rights Net loan servicing fees –C hange in fair value of mortgage servicing rights and mortgage servicing liabilities $ 250,146 $ (52,971) $ 587,883 $ (180,853)

Mortgage Servicing Rights and M

Mortgage Servicing Rights and Mortgage Servicing Liabilities	9 Months Ended
	Sep. 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 September 30, Nine months ended September 30, 2019 2018 2019 2018 (in thousands) Balance at beginning of period $ 2,720,335 $ 2,486,157 $ 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 2,720,335 2,486,157 2,820,612 2,120,436 Additions: Resulting from loan sales 246,757 149,000 545,839 448,604 Purchases 46 163,511 227,445 193,640 246,803 312,511 773,284 642,244 Change in fair value due to: Changes in inputs used in valuation model (1) (286,880) 64,293 (704,967) 239,538 Other changes in fair value (2) (124,005) (76,997) (332,676) (216,254) Total change in fair value (410,885) (12,704) (1,037,643) 23,284 Balance at end of period $ 2,556,253 $ 2,785,964 $ 2,556,253 $ 2,785,964 September 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 $ 2,550,602 $ 2,807,333 (1) Principally reflects changes in discount rate and prepayment speed inputs, primarily due to changes in market interest rates. (2) Represents changes due to realization of cash flows. Mortgage Servicing Liabilities at Fair Value The activity in MSLs is summarized below: Quarter ended September 30, Nine months ended September 30, 2019 2018 2019 2018 (in thousands) Balance at beginning of period $ 12,948 $ 10,253 $ 8,681 $ 14,120 Mortgage servicing liabilities resulting from loan sales 19,501 1,741 27,133 5,548 Changes in fair value due to: Changes in valuation inputs used in valuation model (1) 8,630 3,410 14,687 8,590 Other changes in fair value (2) (6,785) (5,635) (16,207) (18,489) Total change in fair value 1,845 (2,225) (1,520) (9,899) Balance at end of period $ 34,294 $ 9,769 $ 34,294 $ 9,769 (1) Principally reflects changes in expected borrower performance and servicer losses given default. (2) Represents changes due to realization of cash flows. Contractual 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 September 30, Nine months ended September 30, 2019 2018 2019 2018 (in thousands) Contractual servicing fees $ 185,967 $ 147,182 $ 533,510 $ 421,536 Other fees: Late charges 12,430 5,087 31,258 19,595 Other 4,846 1,244 9,119 4,620 $ 203,243 $ 153,513 $ 573,887 $ 445,751

Leases

Leases	9 Months Ended
	Sep. 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 these operating lease agreements include options to extend the term 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 Nine months ended September 30, 2019 September 30, 2019 (dollars in thousands) Lease expense: Operating leases $ 3,356 $ 9,817 Short-term leases 213 644 Sublease income (35) (94) Net lease expense included in Occupancy and equipment $ 3,534 $ 10,367 Other information: Cash payments for operating leases $ 4,063 $ 11,793 Operating lease right-of-use assets recognized Upon adoption of ASU 2016-02 $ — $ 58,713 New leases 1,929 1,929 $ 1,929 $ 60,642 Period end: Weighted averages: Remaining lease term (in years) 5.8 Discount rate The maturities of the Company’s operating lease liabilities are summarized below: Twelve months ended September 30, Operating leases (in thousands) 2020 $ 17,246 2021 14,754 2022 12,170 2023 11,580 2024 9,123 Thereafter 17,628 Total lease payments 82,501 Less imputed interest (10,341) Total $ 72,160 As of September 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	9 Months Ended
	Sep. 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 September 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 September 30, Nine months ended September 30, 2019 2018 2019 2018 (dollars in thousands) Average balance of assets sold under agreements to repurchase $ 2,098,208 $ 1,563,053 $ 1,861,086 $ 1,618,008 Weighted average interest rate (1) 3.66 % 3.91 % 4.08 % 3.72 % Total interest expense (2) $ 19,429 $ 4,676 $ 47,709 $ 15,943 Maximum daily amount outstanding $ 3,539,459 $ 2,201,880 $ 3,539,459 $ 2,380,121 September 30, December 31, 2019 2018 (dollars in thousands) Carrying value: Unpaid principal balance $ 3,539,459 $ 1,935,200 Unamortized debt issuance premiums and costs, net (570) (1,341) $ 3,538,889 $ 1,933,859 Weighted average interest rate 3.53 % 4.22 % Available borrowing capacity (3): Committed $ 2,665 $ 695,767 Uncommitted 1,292,876 2,354,033 $ 1,295,541 $ 3,049,800 Fair value of assets securing repurchase agreements: Loans held for sale $ 3,939,161 $ 1,923,857 Assets purchased from PennyMac Mortgage Investment Trust under agreements to resell $ 107,678 $ 131,025 Servicing advances (4) $ 181,747 $ 162,895 Mortgage servicing rights (4) $ 2,532,369 $ 2,807,333 Margin deposits placed with counterparties (5) $ 5,000 $ 3,750 (1) Excludes the effect of amortization of net issuance costs and premiums totaling $0.2 million and $9.2 million for the quarter and nine months ended September 30, 2019, respectively, and net premiums totaling $10.9 million and $29.7 million for the quarter and nine months ended September 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 $1.6 million and $12.8 million of such incentives as reductions in Interest expense during the quarters ended September 30, 2019 and 2018, respectively, and $14.7 million and $35.5 million during the nine months ended September 30, 2019 and 2018, respectively. The master repurchase agreement expired on August 21, 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 September 30, 2019 Balance (dollars in thousands) Within 30 days $ 276,113 Over 30 to 90 days 3,041,052 Over 90 to 180 days 122,294 Over 180 days to one year 100,000 Total assets sold under agreements to repurchase $ 3,539,459 Weighted average maturity (in months) 2.5 The amount at risk (the fair value of the assets pledged plus the related margin deposit, less the amount advanced by the counterparty and interest payable) relating to the Company’s assets sold under agreements to repurchase is summarized by counterparty below as of September 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 $ 1,313,083 April 26, 2020 April 26, 2020 Credit Suisse First Boston Mortgage Capital LLC $ 231,656 December 2, 2019 April 24, 2020 Bank of America, N.A. $ 82,942 October 28, 2019 October 28, 2019 JP Morgan Chase Bank, N.A. $ 79,142 October 9, 2019 October 11, 2019 Citibank, N.A. $ 41,279 December 17, 2019 August 4, 2020 Morgan Stanley Bank, N.A. $ 40,511 December 16, 2019 August 21, 2020 BNP Paribas $ 12,363 December 17, 2019 July 31, 2020 Royal Bank of Canada $ 9,804 December 31, 2019 December 31, 2019 The Company is subject to margin calls during the period the repurchase 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 September 30, Nine months ended September 30, 2019 2018 2019 2018 (dollars in thousands) Average balance $ 258,169 $ 289,008 $ 249,023 $ 250,599 Weighted average interest rate (1) 3.36 % 3.31 % 3.55 % 3.14 % Total interest expense $ 2,304 $ 2,533 $ 7,034 $ 6,450 Maximum daily amount outstanding $ 524,095 $ 722,611 $ 548,038 $ 722,611 (1) Excludes the effect of amortization of facility fees totaling $135,000 and $92,000 for the quarters ended September 30, 2019 and 2018, respectively, and $405,000 and $475,000 for the nine months ended September 30, 2019 and 2018, respectively. September 30, December 31, 2019 2018 (dollars in thousands) Carrying value: Unpaid principal balance $ 514,625 $ 532,466 Unamortized debt issuance costs — (215) $ 514,625 $ 532,251 Weighted average interest rate 3.27 % 3.77 % Fair value of loans pledged to secure mortgage loan participation purchase and sale agreements $ 542,049 $ 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. 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. 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 nine months ended September 30, 2019 or 2018. Notes payable are summarized below: Quarter ended September 30, Nine months ended September 30, 2019 2018 2019 2018 (dollars in thousands) Average balance $ 1,300,000 $ 1,234,783 $ 1,300,000 $ 1,125,458 Weighted average interest rate (1) 5.11 % 5.07 % 5.21 % 5.29 % Total interest expense $ 17,525 $ 21,369 $ 53,559 $ 55,939 Maximum daily amount outstanding $ 1,300,000 $ 1,300,000 $ 1,300,000 $ 1,300,000 (1) Excludes the effect of amortization of debt issuance costs and non-utilization fees totaling $0.9 million and $2.0 million for the quarters ended September 30, 2019 and 2018, respectively, and $2.7 million and $2.8 million for the nine months ended September 30, 2019 and 2018, respectively, as well as unamortized debt issuance costs of $3.4 million and $8.0 million, recognized in Interest expense due to repayments of certain previously issued notes during the quarter and nine months ended September 30, 2018, respectively. September 30, December 31, 2019 2018 (dollars in thousands) Carrying value: Unpaid principal balance $ 1,300,000 $ 1,300,000 Unamortized debt issuance costs (6,375) (7,709) $ 1,293,625 $ 1,292,291 Weighted average interest rate 4.90 % 5.07 % Unused amount $ 150,000 $ 150,000 Assets pledged to secure notes payable: Cash $ 101,773 $ 108,174 Servicing advances (1) $ 181,747 $ 162,895 Mortgage servicing rights (1) $ 2,489,481 $ 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 The Company has a capital lease transaction secured by certain fixed assets and capitalized software. The capital lease matures on June 13, 2022 and bears interest at a spread over one-month LIBOR. Obligations under capital lease are summarized below: Quarter ended September 30, Nine months ended September 30, 2019 2018 2019 2018 (dollars in thousands) Average balance $ 25,812 $ 11,615 $ 13,380 $ 15,187 Weighted average interest rate 4.47 % 4.09 % 4.48 % 3.87 % Total interest expense $ 274 $ 122 $ 476 $ 444 Maximum daily amount outstanding $ 28,295 $ 13,032 $ 28,295 $ 20,971 September 30, December 31, 2019 2018 (dollars in thousands) Unpaid principal balance $ 23,881 $ 6,605 Weighted average interest rate 4.45 % 4.46 % Assets pledged to secure obligations under capital lease: Furniture, fixtures and equipment $ 22,172 $ 16,281 Capitalized software $ 14,090 $ 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 September 30, Nine months ended September 30, 2019 2018 2019 2018 (in thousands) Balance at beginning of period $ 194,156 $ 229,470 $ 216,110 $ 236,534 Issuances of excess servicing spread to PennyMac Mortgage Investment Trust pursuant to recapture agreement 377 499 1,327 1,983 Accrual of interest 2,291 3,740 8,124 11,584 Repayment (9,819) (11,543) (30,901) (35,852) Change in fair value (3,864) 1,109 (11,519) 9,026 Balance at end of period $ 183,141 $ 223,275 $ 183,141 $ 223,275

Liability for Losses Under Repr

Liability for Losses Under Representations and Warranties	9 Months Ended
	Sep. 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 September 30, Nine months ended September 30, 2019 2018 2019 2018 (in thousands) Balance at beginning of period $ 18,709 $ 20,587 $ 21,155 $ 20,053 Provision for losses on loans sold: Resulting from sales of loans 2,508 1,842 5,222 4,550 Reduction in liability due to change in estimate (1,175) (1,155) (6,305) (3,627) (Recoveries) incurred losses, net (74) (252) (104) 46 Balance at end of period $ 19,968 $ 21,022 $ 19,968 $ 21,022 Unpaid principal balance of loans subject to representations and warranties at end of period $ 166,541,153 $ 139,315,779

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2019
Income Taxes
Income Taxes	Note 13—Income Taxes The Company’s effective income tax rates were 26.9% and 9.0% for the quarters ended September 30, 2019 and 2018, respectively, and 26.3% and 8.6% for the nine months ended September 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 nine months ended September 30, 2019 than for the quarter and nine months ended September 30, 2018.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 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 $8.3 billion as of September 30, 2019.

Stockholders' Equity

Stockholders' Equity	9 Months Ended
	Sep. 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 September 30, Nine months ended September 30, Cumulative 2019 2018 2019 2018 total (1) (in thousands) Shares of common stock repurchased — — 51 236 816 Cost of shares of common stock repurchased $ — $ — $ 1,056 $ 4,826 $ 14,948 (1) Amounts represent the total shares of common stock repurchased under the stock repurchase program through September 30, 2019.

Noncontrolling Interest

Noncontrolling Interest	9 Months Ended
	Sep. 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 Nine months ended September 30, 2018 September 30, 2018 (in thousands) Net income attributable to PennyMac Financial Services, Inc. common stockholders $ 14,489 $ 48,945 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. $ 4,377 $ 32,501 Shares of Class A common stock of PennyMac Financial Services, Inc. issued pursuant to exchange of Class A units of Private National Mortgage Acceptance Company, LLC by noncontrolling interest unitholders and issued as equity compensation 131 1,616

Net Gains on Loans Held for Sal

Net Gains on Loans Held for Sale	9 Months Ended
	Sep. 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 September 30, Nine months ended September 30, 2019 2018 2019 2018 (in thousands) From non-affiliates: Cash loss: Loans $ (22,838) $ (107,414) $ (77,659) $ (399,457) Hedging activities (148,128) (2,507) (230,200) 89,322 (170,966) (109,921) (307,859) (310,135) Non-cash gain: Mortgage servicing rights and mortgage servicing liabilities resulting from loan sales 227,256 147,259 518,706 443,056 Provision for losses relating to representations and warranties: Pursuant to loan sales (2,508) (1,842) (5,222) (4,550) Reduction in liability due to change in estimate 1,175 1,155 6,305 3,627 Change in fair value of loans and derivatives held at period end: Interest rate lock commitments 33,347 (18,526) 95,785 (21,109) Loans (5,822) 6,897 (35,508) 21,407 Hedging derivatives 92,588 13,327 72,838 11,100 175,070 38,349 345,045 143,396 From PennyMac Mortgage Investment Trust 60,662 18,565 122,996 45,878 $ 235,732 $ 56,914 $ 468,041 $ 189,274

Net Interest Income

Net Interest Income	9 Months Ended
	Sep. 30, 2019
Net Interest Income
Net Interest Income	Note 18—Net Interest Income Net interest income is summarized below: Quarter ended September 30, Nine months ended September 30, 2019 2018 2019 2018 (in thousands) Interest income: From non-affiliates: Cash and short-term investments $ 2,894 $ 814 $ 7,533 $ 2,001 Loans held for sale at fair value 35,800 34,941 101,509 95,982 Placement fees relating to custodial funds 43,231 23,397 98,628 55,014 81,925 59,152 207,670 152,997 From PennyMac Mortgage Investment Trust—Assets purchased from PennyMac Mortgage Investment Trust under agreements to resell 1,527 1,812 5,015 5,686 83,452 60,964 212,685 158,683 Interest expense: To non-affiliates: Assets sold under agreements to repurchase (1) 19,429 4,676 47,709 15,943 Mortgage loan participation purchase and sale agreements 2,304 2,533 7,034 6,450 Notes payable 17,525 21,369 53,559 55,939 Obligations under capital lease 274 122 476 444 Interest shortfall on repayments of mortgage loans serviced for Agency securitizations 12,453 4,883 24,978 14,259 Interest on mortgage loan impound deposits 2,104 1,452 4,967 3,517 54,089 35,035 138,723 96,552 To PennyMac Mortgage Investment Trust—Excess servicing spread financing at fair value 2,291 3,740 8,124 11,584 56,380 38,775 146,847 108,136 $ 27,072 $ 22,189 $ 65,838 $ 50,547 (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 $1.6 million and $12.8 million of such incentives as reductions of Interest expense during the quarter ended September 30, 2019 and 2018, respectively, and $14.7 million and $35.5 million during the nine months ended September 30, 2019 and 2018, respectively. The master repurchase agreement expired on August 21, 2019.

Stock-based Compensation

Stock-based Compensation	9 Months Ended
	Sep. 30, 2019
Stock-based Compensation
Stock-based Compensation	Note 19—Stock-based Compensation As of September 30, 2019, the Company had one stock-based compensation plan. Following is a summary of the stock-based compensation activity: Quarter ended September 30, Nine months ended September 30, 2019 2018 2019 2018 (in thousands) Grants: Units: Performance-based RSUs — — 665 524 Stock options — — 344 674 Time-based RSUs 4 5 334 321 Grant date fair value: Performance-based RSUs $ — $ — $ 15,253 $ 12,791 Stock options — — 2,965 6,147 Time-based RSUs 102 100 7,647 7,803 Total $ 102 $ 100 $ 25,865 $ 26,741 Vestings and exercises: Performance-based RSUs vested — — 648 774 Stock options exercised 127 55 245 285 Time-based RSUs vested 3 1 294 245 Compensation expense $ 8,941 $ 8,532 $ 19,124 $ 20,766

Earnings Per Share of Common St

Earnings Per Share of Common Stock	9 Months Ended
	Sep. 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 period. Diluted earnings per share of common stock is determined by dividing net income attributable to the Company’s common stockholders by the weighted average number of shares of common stock outstanding, assuming all dilutive shares of common stock were issued. Potentially dilutive shares of common stock include non-vested stock-based compensation awards and, 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 September 30, Nine months ended September 30, 2019 2018 2019 2018 (in thousands, except per share amounts) Basic earnings per share of common stock: Net income attributable to common stockholders $ 121,473 $ 14,489 $ 240,304 $ 48,945 Weighted average shares of common stock outstanding 78,361 25,125 78,119 24,644 Basic earnings per share of common stock $ 1.55 $ 0.58 $ 3.08 $ 1.99 Diluted earnings per share of common stock: Net income attributable to common stockholders $ 121,473 $ 14,489 $ 240,304 $ 48,945 Net income attributable to dilutive stock-based compensation units — 552 — 2,435 Net income attributable to PennyMac Class A units exchangeable to Class A common stock, net of income taxes — 29,580 — 101,921 Net income attributable to common stockholders for diluted earnings per share $ 121,473 $ 44,621 $ 240,304 $ 153,301 Weighted average shares of common stock outstanding applicable to basic earnings per share 78,361 25,125 78,119 24,644 Effect of dilutive shares: Common shares issuable under stock-based compensation plan 2,021 1,476 1,702 1,818 PennyMac Class A units exchangeable to Class A common stock — 52,312 — 52,492 Weighted average shares of common stock applicable to diluted earnings per share 80,382 78,913 79,821 78,954 Diluted earnings per share of common stock $ 1.51 $ 0.57 $ 3.01 $ 1.94 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 September 30, Nine months ended September 30, 2019 2018 2019 2018 (in thousands except for weighted-average exercise price) Performance-based RSUs (1) 1,157 1,172 985 1,060 Time-based RSUs — 86 — 68 Stock options (2) 566 1,208 888 705 Total anti-dilutive shares and units 1,723 2,466 1,873 1,833 Weighted average exercise price of anti-dilutive stock options (2) $ 23.50 $ 17.79 $ 23.98 $ 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	9 Months Ended
	Sep. 30, 2019
Supplemental Cash Flow Information
Supplemental Cash Flow Information	Note 21—Supplemental Cash Flow Information Nine months ended September 30, 2019 2018 (in thousands) Cash paid for interest $ 125,987 $ 123,622 Cash paid (refunds received) for income taxes , net $ 5,761 $ (1,541) Non-cash investing activity: Mortgage servicing rights resulting from loan sales $ 545,839 $ 448,604 Mortgage servicing liabilities resulting from loan sales $ 27,133 $ 5,548 Unsettled portion of MSR acquisitions $ — $ 13,501 Operating right-of-use assets recognized $ 60,642 $ — Non-cash financing activity: Issuance of Excess servicing spread payable to PennyMac Mortgage Investment Trust pursuant to a recapture agreement $ 1,327 $ 1,983 Issuance of common stock and Class A common stock in settlement of director fees $ 184 $ 245

Regulatory Capital and Liquidit

Regulatory Capital and Liquidity Requirements	9 Months Ended
	Sep. 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: September 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 $ 2,062,630 $ 572,167 $ 1,788,430 $ 514,089 Ginnie Mae – PLS $ 1,718,072 $ 852,256 $ 1,535,826 $ 733,342 Ginnie Mae – PennyMac $ 2,006,339 $ 937,482 $ 1,786,430 $ 806,676 HUD – PLS $ 1,718,072 $ 2,500 $ 1,535,826 $ 2,500 Liquidity Fannie Mae & Freddie Mac – PLS $ 282,056 $ 78,240 $ 271,802 $ 70,775 Ginnie Mae – PLS $ 282,056 $ 211,021 $ 271,802 $ 189,592 Tangible net worth / Total assets ratio Fannie Mae & Freddie Mac – PLS 19 % 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	9 Months Ended
	Sep. 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 September 30, 2019 Mortgage Banking Investment Production Servicing Total Management Total (in thousands) Revenue: (1) Net gains on loans held for sale at fair value $ 216,132 $ 19,600 $ 235,732 $ — $ 235,732 Loan origination fees 49,434 — 49,434 — 49,434 Fulfillment fees from PennyMac Mortgage Investment Trust 45,149 — 45,149 — 45,149 Net loan servicing fees — 66,229 66,229 — 66,229 Net interest income (expense): Interest income 22,445 61,007 83,452 — 83,452 Interest expense 18,423 37,936 56,359 21 56,380 4,022 23,071 27,093 (21) 27,072 Management fees — — — 10,098 10,098 Other 324 567 891 1,742 2,633 Total net revenue 315,061 109,467 424,528 11,819 436,347 Expenses 135,777 127,581 263,358 6,792 270,150 Income before provision for income taxes $ 179,284 $ (18,114) $ 161,170 $ 5,027 $ 166,197 Segment assets at quarter end $ 4,850,741 $ 4,433,177 $ 9,283,918 $ 19,281 $ 9,303,199 (1) All revenues are from external customers. Quarter ended September 30, 2018 Mortgage Banking Investment Production Servicing Total Management Total (in thousands) Revenue: (1) Net gains on loans held for sale at fair value $ 34,947 $ 21,967 $ 56,914 $ — $ 56,914 Loan origination fees 26,485 — 26,485 — 26,485 Fulfillment fees from PennyMac Mortgage Investment Trust 26,256 — 26,256 — 26,256 Net loan servicing fees — 109,703 109,703 — 109,703 Net interest income (expense): Interest income 17,013 43,935 60,948 16 60,964 Interest expense 1,274 37,491 38,765 10 38,775 15,739 6,444 22,183 6 22,189 Management fees — — — 6,471 6,471 Carried Interest from Investment Funds — — — (17) (17) Other 645 805 1,450 1,478 2,928 Total net revenue 104,072 138,919 242,991 7,938 250,929 Expenses 78,405 105,346 183,751 5,481 189,232 Income before provision for income taxes $ 25,667 $ 33,573 $ 59,240 $ 2,457 $ 61,697 Segment assets at quarter end (2) $ 2,168,126 $ 4,812,898 $ 6,981,024 $ 11,996 $ 6,993,020 (1) All revenues are from external customers. (2) Excludes parent Company assets, which consist of $1.8 million of cash and includes receivable from parent Company of $2.3 million. Nine months ended September 30, 2019 Mortgage Banking Investment Production Servicing Total Management Total (in thousands) Revenue: (1) Net gains on loans held for sale at fair value $ 407,713 $ 60,328 $ 468,041 $ — $ 468,041 Loan origination fees 110,288 — 110,288 — 110,288 Fulfillment fees from PennyMac Mortgage Investment Trust 102,313 — 102,313 — 102,313 Net loan servicing fees — 205,934 205,934 — 205,934 Net interest income (expense): Interest income 55,714 156,971 212,685 — 212,685 Interest expense 36,236 110,572 146,808 39 146,847 19,478 46,399 65,877 (39) 65,838 Management fees — — — 26,178 26,178 Other 929 2,664 3,593 4,844 8,437 Total net revenue 640,721 315,325 956,046 30,983 987,029 Expenses 316,187 324,949 641,136 19,815 660,951 Income before provision for income taxes $ 324,534 $ (9,624) $ 314,910 $ 11,168 $ 326,078 Segment assets at period end $ 4,850,741 $ 4,433,177 $ 9,283,918 $ 19,281 $ 9,303,199 (1) All revenues are from external customers. Nine months ended September 30, 2018 Mortgage Banking Investment Production Servicing Total Management Total (in thousands) Revenue: (1) Net gains on loans held for sale at fair value $ 105,111 $ 84,163 $ 189,274 $ — $ 189,274 Loan origination fees 75,476 — 75,476 — 75,476 Fulfillment fees from PennyMac Mortgage Investment Trust 52,759 — 52,759 — 52,759 Net loan servicing fees — 340,181 340,181 — 340,181 Net interest income (expense): Interest income 48,135 110,532 158,667 16 158,683 Interest expense 4,401 103,694 108,095 41 108,136 43,734 6,838 50,572 (25) 50,547 Management fees — — — 17,910 17,910 Carried Interest from Investment Funds — — — (365) (365) Other 1,497 1,928 3,425 4,221 7,646 Total net revenue 278,577 433,110 711,687 21,741 733,428 Expenses 216,722 290,094 506,816 17,221 524,037 Income before provision for income taxes $ 61,855 $ 143,016 $ 204,871 $ 4,520 $ 209,391 Segment assets at period end (2) $ 2,168,126 $ 4,812,898 $ 6,981,024 $ 11,996 $ 6,993,020 (1) All revenues are from external customers. (2) Excludes parent Company assets, which consist of $1.8 million of cash and includes receivable from parent Company of $2.3 million.

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 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 October 31, 2019, the Company announced that it has initiated a quarterly dividend for common shareholders and that the board of directors declared a cash dividend of $0.12 per common share. The dividend will be paid on November 29, 2019 to common shareholders of record as of November 15, 2019.

Transactions with Affiliates (T

Transactions with Affiliates (Tables) - PMT	9 Months Ended
	Sep. 30, 2019
Transactions with Affiliates
Summary of lending activity between the Company and affiliate	Quarter ended September 30, Nine months ended September 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 $ 62,558 $ 19,722 $ 127,423 $ 49,396 Mortgage servicing rights and excess servicing spread recapture incurred (1,896) (1,157) (4,427) (3,518) $ 60,662 $ 18,565 $ 122,996 $ 45,878 Sale of loans held for sale to PMT $ 1,876,358 $ 908,525 $ 4,095,079 $ 2,336,162 Tax service fees earned from PMT included in Loan origination fees $ 4,222 $ 2,119 $ 9,567 $ 4,869 Fulfillment fee revenue $ 45,149 $ 26,256 $ 102,313 $ 52,759 Unpaid principal balance of loans fulfilled for PMT subject to fulfillment fees $ 16,647,172 $ 7,517,883 $ 35,523,802 $ 17,139,884 Sourcing fees paid to PMT $ 4,206 $ 2,689 $ 9,355 $ 8,221 Unpaid principal balance of loans purchased from PMT $ 14,022,222 $ 8,916,654 $ 31,183,950 $ 27,404,022
Summary of loan servicing fees earned from PMT	Quarter ended September 30, Nine months ended September 30, 2019 2018 2019 2018 (in thousands) Loans acquired for sale at fair value $ 507 $ 316 $ 1,131 $ 739 Loans at fair value 858 1,271 1,938 5,528 Mortgage servicing rights 11,599 8,484 32,033 24,254 $ 12,964 $ 10,071 $ 35,102 $ 30,521 Property management fees received from PMT included in Other income $ 70 $ 122 $ 295 $ 333
Summary of management fees earned	Quarter ended September 30, Nine months ended September 30, 2019 2018 2019 2018 (in thousands) Base management $ 7,914 $ 5,799 $ 20,862 $ 17,223 Performance incentive 2,184 683 5,316 683 $ 10,098 $ 6,482 $ 26,178 $ 17,906
Summary of reimbursement of expenses	Quarter ended September 30, Nine months ended September 30, 2019 2018 2019 2018 (in thousands) Reimbursement of: Common overhead incurred by the Company included in Other revenue $ 1,543 $ 1,210 $ 4,055 $ 3,387 Compensation included in Other revenue 120 120 360 360 Expenses incurred on PMT's behalf, net 1,942 527 3,001 586 $ 3,605 $ 1,857 $ 7,416 $ 4,333 Payments and settlements during the period (1) $ 68,191 $ 21,650 $ 111,411 $ 45,265 (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 September 30, Nine months ended September 30, 2019 2018 2019 2018 (in thousands) Interest income relating to Assets purchased from PennyMac Mortgage Investment Trust under agreements to resell $ 1,527 $ 1,812 $ 5,015 $ 5,686 Common shares of beneficial interest of PennyMac Mortgage Investment Trust: Dividends received $ 36 $ 35 $ 107 $ 106 Change in fair value of investment 30 94 270 313 $ 66 $ 129 $ 377 $ 419 September 30, December 31, 2019 2018 (in thousands) Assets purchased from PennyMac Mortgage Investment Trust under agreements to resell $ 107,678 $ 131,025 Common shares of beneficial interest of PennyMac Mortgage Investment Trust: Fair value $ 1,667 $ 1,397 Number of shares 75 75
Summary of financing activity between the Company and affiliate	Quarter ended September 30, Nine months ended September 30, 2019 2018 2019 2018 (in thousands) Excess servicing spread financing: Issuance pursuant to recapture agreement $ 377 $ 499 $ 1,327 $ 1,983 Repayment $ 9,819 $ 11,543 $ 30,901 $ 35,852 Gain (loss) recognized $ 3,864 $ (1,109) $ 11,519 $ (9,026) Interest expense $ 2,291 $ 3,740 $ 8,124 $ 11,584 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 $ 429 $ 597 $ 1,311 $ 1,951 September 30, December 31, 2019 2018 (in thousands) Excess servicing spread financing at fair value $ 183,141 $ 216,110
Summary of amounts due from and payable to affiliate	September 30, December 31, 2019 2018 (in thousands) Receivable from PMT: Fulfillment fees $ 14,409 $ 10,006 Management fees 10,230 6,559 Correspondent production fees 5,501 2,071 Servicing fees 4,768 4,841 Allocated expenses and expenses incurred on PMT's behalf 4,166 9,066 Conditional Reimbursement 582 801 Interest on assets purchased under agreements to resell 88 120 $ 39,744 $ 33,464 Payable to PMT: Deposits made by PMT to fund servicing advances $ 56,869 $ 100,554 Mortgage servicing rights recapture payable 162 179 Other 4,831 3,898 $ 61,862 $ 104,631

Loan Sales and Servicing Acti_2

Loan Sales and Servicing Activities (Tables)	9 Months Ended
	Sep. 30, 2019
Loan Sales and Servicing Activities
Summary of cash flows between the Company and transferees upon sale of loans in transactions	Quarter ended September 30, Nine months ended September 30, 2019 2018 2019 2018 (in thousands) Cash flows: Sales proceeds $ 17,897,693 $ 11,375,408 $ 39,084,441 $ 34,208,217 Servicing fees received (1) $ 149,210 $ 123,626 $ 426,774 $ 354,535 Net servicing advances (recoveries) $ 8,605 $ 4,147 $ (23,583) $ (20,572) (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	September 30, December 31, 2019 2018 (in thousands) Unpaid principal balance of loans outstanding $ 159,638,921 $ 145,224,596 Delinquencies: 30-89 days $ 7,828,087 $ 6,222,864 90 days or more: Not in foreclosure $ 2,480,348 $ 2,208,083 In foreclosure $ 1,199,933 $ 720,894 Foreclosed $ 11,369 $ 24,243 Bankruptcy $ 1,339,983 $ 970,329
Summary of servicing portfolio	September 30, 2019 Contract Servicing servicing and Total rights owned subservicing loans serviced (in thousands) Investor: Non-affiliated entities: Originated $ 159,638,921 $ — $ 159,638,921 Purchased 63,904,759 — 63,904,759 223,543,680 — 223,543,680 PennyMac Mortgage Investment Trust — 120,608,076 120,608,076 Loans held for sale 4,323,252 — 4,323,252 $ 227,866,932 $ 120,608,076 $ 348,475,008 Delinquent loans: 30 days $ 8,114,297 $ 879,366 $ 8,993,663 60 days 2,432,250 147,325 2,579,575 90 days or more: Not in foreclosure 3,043,663 181,330 3,224,993 In foreclosure 1,518,946 87,284 1,606,230 Foreclosed 13,372 110,821 124,193 $ 15,122,528 $ 1,406,126 $ 16,528,654 Bankruptcy $ 1,872,679 $ 124,619 $ 1,997,298 Custodial funds managed by the Company (1) $ 6,976,614 $ 3,018,131 $ 9,994,745 (1) 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)	September 30, December 31, State 2019 2018 (in thousands) California $ 55,400,197 $ 51,377,441 Florida 27,435,384 22,650,926 Texas 26,509,926 23,648,042 Virginia 21,056,414 19,011,950 Maryland 15,968,754 13,774,011 All other states 202,104,333 168,831,502 $ 348,475,008 $ 299,293,872

Fair Value (Tables)

Fair Value (Tables)	9 Months Ended
	Sep. 30, 2019
Fair Value
Summary of financial statement items measured at estimated fair value on a recurring basis	September 30, 2019 Level 1 Level 2 Level 3 Total (in thousands) Assets: Short-term investments $ 90,663 $ — $ — $ 90,663 Loans held for sale at fair value — 4,437,954 85,017 4,522,971 Derivative assets: Interest rate lock commitments — — 147,400 147,400 Repurchase agreement derivatives — — 8,187 8,187 Forward purchase contracts — 17,943 — 17,943 Forward sales contracts — 6,141 — 6,141 MBS put options — 10,040 — 10,040 Put options on interest rate futures purchase contracts 6,266 — — 6,266 Call options on interest rate futures purchase contracts 2,414 — — 2,414 Total derivative assets before netting 8,680 34,124 155,587 198,391 Netting — — — 34,557 Total derivative assets 8,680 34,124 155,587 232,948 Mortgage servicing rights at fair value — — 2,556,253 2,556,253 Investment in PennyMac Mortgage Investment Trust 1,667 — — 1,667 $ 101,010 $ 4,472,078 $ 2,796,857 $ 7,404,502 Liabilities: Excess servicing spread financing payable to PennyMac Mortgage Investment Trust at fair value $ — $ — $ 183,141 $ 183,141 Derivative liabilities: Interest rate lock commitments — — 2,276 2,276 Forward purchase contracts — 51,585 — 51,585 Forward sales contracts — 34,498 — 34,498 Total derivative liabilities before netting — 86,083 2,276 88,359 Netting — — — (74,324) Total derivative liabilities — 86,083 2,276 14,035 Mortgage servicing liabilities at fair value — — 34,294 34,294 $ — $ 86,083 $ 219,711 $ 231,470 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 September 30, 2019 Net interest Repurchase Mortgage Loans held rate lock agreement servicing Assets for sale commitments (1) derivatives rights Total (in thousands) Balance, June 30, 2019 $ 217,998 $ 111,776 $ 16,015 $ 2,720,335 $ 3,066,124 Purchases and issuances, net 1,861,769 199,274 1,502 46 2,062,591 Sales and repayments (1,582,564) — (9,422) — (1,591,986) Mortgage servicing rights resulting from loan sales — — — 246,757 246,757 Changes in fair value included in income arising from: Changes in instrument-specific credit risk 4,252 — — — 4,252 Other factors — 92,138 92 (410,885) (318,655) 4,252 92,138 92 (410,885) (314,403) Transfers from Level 3 to Level 2 (416,062) — — — (416,062) Transfers to real estate acquired in settlement of loans (376) — — — (376) Transfers of interest rate lock commitments to loans held for sale — (258,064) — — (258,064) Balance, September 30, 2019 $ 85,017 $ 145,124 $ 8,187 $ 2,556,253 $ 2,794,581 Changes in fair value recognized during the quarter relating to assets still held at September 30, 2019 $ (2,328) $ 145,124 $ 41 $ (410,885) $ (268,048) (1) For the purpose of this table, the IRLC asset and liability positions are shown net. Quarter ended September 30, 2019 Excess servicing Mortgage spread servicing Liabilities financing liabilities Total (in thousands) Balance, June 30, 2019 $ 194,156 $ 12,948 $ 207,104 Issuance of excess servicing spread financing pursuant to a recapture agreement with PennyMac Mortgage Investment Trust 377 — 377 Accrual of interest 2,291 — 2,291 Repayments (9,819) — (9,819) Mortgage servicing liabilities resulting from loan sales — 19,501 19,501 Changes in fair value included in income (3,864) 1,845 (2,019) Balance, September 30, 2019 $ 183,141 $ 34,294 $ 217,435 Changes in fair value recognized during the quarter relating to liabilities still outstanding at September 30, 2019 $ (3,864) $ 1,845 $ (2,019) Quarter ended September 30, 2018 Net interest Repurchase Mortgage Loans held rate lock agreement servicing Assets for sale commitments (1) derivatives rights Total (in thousands) Balance, June 30, 2018 $ 334,166 $ 55,689 $ 25,781 $ 2,486,157 $ 2,901,793 Purchases and issuances, net 1,008,662 41,721 12,903 163,511 1,226,797 Sales and repayments (231,921) — (11,982) — (243,903) Mortgage servicing rights resulting from loan sales — — — 149,000 149,000 Changes in fair value included in income arising from: Changes in instrument-specific credit risk 84 — — — 84 Other factors — 10,696 (227) (12,704) (2,235) 84 10,696 (227) (12,704) (2,151) Transfers from Level 3 to Level 2 (744,324) — — — (744,324) Transfers to real estate acquired in settlement of loans (1,364) — — — (1,364) Transfers of interest rate lock commitments to loans held for sale — (70,943) — — (70,943) Balance, September 30, 2018 $ 365,303 $ 37,163 $ 26,475 $ 2,785,964 $ 3,214,905 Changes in fair value recognized during the quarter relating to assets still held at September 30, 2018 $ (4,811) $ 37,163 $ — $ (12,704) $ 19,648 (1) For the purpose of this table, the IRLC asset and liability positions are shown net. Quarter ended September 30, 2018 Excess servicing Mortgage spread servicing Liabilities financing liabilities Total (in thousands) Balance, June 30, 2018 $ 229,470 $ 10,253 $ 239,723 Issuance of excess servicing spread financing pursuant to a recapture agreement with PennyMac Mortgage Investment Trust 499 — 499 Accrual of interest 3,740 — 3,740 Repayments (11,543) — (11,543) Mortgage servicing liabilities resulting from loan sales — 1,741 1,741 Changes in fair value included in income 1,109 (2,225) (1,116) Balance, September 30, 2018 $ 223,275 $ 9,769 $ 233,044 Changes in fair value recognized during the quarter relating to liabilities still outstanding at September 30, 2018 $ 1,109 $ (2,225) $ (1,116) Nine months ended September 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 3,537,177 376,137 15,019 227,445 4,155,778 Sales and repayments (2,414,899) — (31,994) — (2,446,893) Mortgage servicing rights resulting from loan sales — — — 545,839 545,839 Changes in fair value included in income arising from: Changes in instrument-specific credit risk (2,025) — — — (2,025) Other factors — 248,889 (1,608) (1,037,643) (790,362) (2,025) 248,889 (1,608) (1,037,643) (792,387) Transfers from Level 3 to Level 2 (1,292,824) — — — (1,292,824) Transfers to real estate acquired in settlement of loans (2,420) — — — (2,420) Transfers of interest rate lock commitments to loans held for sale — (529,240) — — (529,240) Balance, September 30, 2019 $ 85,017 $ 145,124 $ 8,187 $ 2,556,253 $ 2,794,581 Changes in fair value recognized during the period relating to assets still held at September 30, 2019 $ (2,478) $ 145,124 $ 165 $ (1,037,643) $ (894,832) (1) For the purpose of this table, the IRLC asset and liability positions are shown net. Nine months ended September 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 1,327 — 1,327 Accrual of interest 8,124 — 8,124 Repayments (30,901) — (30,901) Mortgage servicing liabilities resulting from loan sales — 27,133 27,133 Changes in fair value included in income (11,519) (1,520) (13,039) Balance, September 30, 2019 $ 183,141 $ 34,294 $ 217,435 Changes in fair value recognized during the period relating to liabilities still outstanding at September 30, 2019 $ (11,519) $ (1,520) $ (13,039) Nine months ended September 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 2,480,523 157,649 36,624 193,640 2,868,436 Sales and repayments (1,122,448) — (19,460) — (1,141,908) Mortgage servicing rights resulting from loan sales — — — 448,604 448,604 Changes in fair value included in income arising from: Changes in instrument-specific credit risk (4,944) — — — (4,944) Other factors — (28,627) (1,345) 23,284 (6,688) (4,944) (28,627) (1,345) 23,284 (11,632) Transfers from Level 3 to Level 2 (1,765,854) — — — (1,765,854) Transfers to real estate acquired in settlement of loans (4,185) — — — (4,185) Transfers of interest rate lock commitments to loans held for sale — (150,131) — — (150,131) Balance, September 30, 2018 $ 365,303 $ 37,163 $ 26,475 $ 2,785,964 $ 3,214,905 Changes in fair value recognized during the period relating to assets still held at September 30, 2018 $ (4,912) $ 37,163 $ — $ 23,284 $ 55,535 (1) For the purpose of this table, the IRLC asset and liability positions are shown net. Nine months ended September 30, 2018 Excess servicing Mortgage spread servicing 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 1,983 — 1,983 Accrual of interest 11,584 — 11,584 Repayments (35,852) — (35,852) Mortgage servicing liabilities resulting from loan sales — 5,548 5,548 Changes in fair value included in income 9,026 (9,899) (873) Balance, September 30, 2018 $ 223,275 $ 9,769 $ 233,044 Changes in fair value recognized during the period relating to liabilities still outstanding at September 30, 2018 $ 9,026 $ (9,899) $ (873)
Summary of net gains (losses) from changes in fair values included in earnings for financial statement items carried at fair value	Quarter ended September 30, 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 $ — $ 263,339 $ 263,339 $ — $ 67,709 $ 67,709 Mortgage servicing rights (410,885) — (410,885) (12,704) — (12,704) $ (410,885) $ 263,339 $ (147,546) $ (12,704) $ 67,709 $ 55,005 Liabilities: Excess servicing spread financing payable to PennyMac Mortgage Investment Trust $ 3,864 $ — $ 3,864 $ (1,109) $ — $ (1,109) Mortgage servicing liabilities (1,845) — (1,845) 2,225 — 2,225 $ 2,019 $ — $ 2,019 $ 1,116 $ — $ 1,116 Nine months ended September 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 $ — $ 538,086 $ 538,086 $ — $ 118,452 $ 118,452 Mortgage servicing rights (1,037,643) — (1,037,643) 23,284 — 23,284 $ (1,037,643) $ 538,086 $ (499,557) $ 23,284 $ 118,452 $ 141,736 Liabilities: Excess servicing spread financing payable to PennyMac Mortgage Investment Trust $ 11,519 $ — $ 11,519 $ (9,026) $ — $ (9,026) Mortgage servicing liabilities 1,520 — 1,520 9,899 — 9,899 $ 13,039 $ — $ 13,039 $ 873 $ — $ 873
Schedule of fair value and related principal amounts due upon maturity of assets and liabilities accounted for under the fair value option	September 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 $ 4,478,965 $ 4,275,981 $ 202,984 $ 2,324,203 $ 2,220,371 $ 103,832 90 days or more delinquent: Not in foreclosure 20,972 22,145 (1,173) 143,631 144,011 (380) In foreclosure 23,034 25,126 (2,092) 53,813 56,254 (2,441) $ 4,522,971 $ 4,323,252 $ 199,719 $ 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) September 30, 2019 $ — $ — $ 8,575 $ 8,575 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 September 30, Nine months ended September 30, 2019 2018 2019 2018 (in thousands) Real estate acquired in settlement of loans $ 139 $ (41) $ 162 $ (72)
Summary of carrying value and fair value of debt	Term Notes September 30, 2019 December 31, 2018 (in thousands) Fair value $ 1,306,828 $ 1,285,894 Carrying value $ 1,293,625 $ 1,292,291
Quantitative summary of key inputs or assumptions used in the valuation of financial statement items, excluding MSR purchases	Quarter ended September 30, Nine months ended September 30, 2019 2018 2019 2018 (Amount recognized and unpaid principal balance of underlying loans in thousands) MSR and pool characteristics: Amount recognized $ 246,757 $ 149,000 $ 545,839 $ 448,604 Unpaid principal balance of underlying loans $ 15,709,249 $ 10,790,398 $ 35,532,425 $ 32,095,458 Weighted average servicing fee rate (in basis points) 43 37 42 36 Key inputs (1): Pricing spread (2) Range 5.5% – 16.2% 7.3% – 13.6% 5.5% – 16.2% 7.3% – 14.1% Weighted average 8.3% 10.1% 8.6% 10.2% Annual total prepayment speed (3) Range 8.8% – 32.1% 4.4% – 55.7% 7.7% – 32.8% 3.9% – 61.8% Weighted average 15.7% 11.8% 15.0% 10.6% Life (in years) Range 2.7 – 7.5 0.5 – 11.3 2.6 – 7.8 0.5 – 11.6 Weighted average 5.5 6.9 5.8 7.5 Per-loan annual cost of servicing Range $78 – $100 $78 – $98 $78 – $100 $78 – $98 Weighted average $97 $92 $97 $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: September 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 $ 2,556,253 $ 2,820,612 Unpaid principal balance of underlying loans $ 221,215,993 $ 201,054,144 Weighted average note interest rate 4.0% 4.0% Weighted average servicing fee rate (in basis points) 34 33 Key inputs (1): Pricing spread (2): Range 5.9% – 15.8% 5.8% – 16.1% Weighted average 8.5% 8.7% Effect on fair value of: 5% adverse change ($35,830) ($45,268) 10% adverse change ($70,578) ($89,073) 20% adverse change ($137,016) ($172,556) Prepayment speed (3): Range 9.8% – 33.0% 8.4% – 32.6% Weighted average 15.6% 9.9% Average life (in years): Range 1.4 – 7.2 1.5 – 7.9 Weighted average 5.2 7.2 Effect on fair value of: 5% adverse change ($64,047) ($47,687) 10% adverse change ($124,892) ($93,626) 20% adverse change ($237,822) ($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 ($21,731) ($22,944) 10% adverse change ($43,462) ($45,888) 20% adverse change ($86,925) ($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	September 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	September 30, December 31, 2019 2018 Carrying value (in thousands) $ 183,141 $ 216,110 ESS and pool characteristics: Unpaid principal balance of underlying loans (in thousands) $ 20,794,571 $ 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 8.9% – 15.0% 8.2% – 29.5% Weighted average 11.7% 9.7% Average life (in years): Range 2.8 – 7.1 1.6 – 7.6 Weighted average 5.9 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	September 30, 2019 December 31, 2018 Carrying value (in thousands) (1) $ 145,124 $ 49,338 Key inputs (2): Pull-through rate: Range 12.2% – 100% 16.6% – 100% Weighted average 85.6% 84.1% Mortgage servicing rights value expressed as: Servicing fee multiple: Range 1.4 – 5.7 1.5 – 5.5 Weighted average 4.0 3.8 Percentage of unpaid principal balance: Range 0.3% – 2.9% 0.4% – 3.2% Weighted average 1.6% 1.5% (1) For purpose of this table, IRLC asset and liability positions are shown net. (2) 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	September 30, 2019 December 31, 2018 Carrying value (in thousands) $ 85,017 $ 260,008 Key inputs (1): Discount rate: Range 3.2% – 9.2% 2.8% – 9.2% Weighted average 3.4% 2.9% Twelve-month projected housing price index change: Range 2.6% – 3.2% 2.2% – 5.0% Weighted average 2.9% 3.5% Voluntary prepayment/resale speed (2): Range 0.3% – 19.2% 0.1% – 21.8% Weighted average 15.8% 20.1% Total prepayment speed (3): Range 0.6% – 34.8% 0.1% – 40.5% Weighted average 29.6% 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)	9 Months Ended
	Sep. 30, 2019
Loans Held for Sale at Fair Value
Summary of loans held for sale at fair value	September 30, December 31, Loan type 2019 2018 (in thousands) Government-insured or guaranteed $ 4,148,681 $ 2,116,126 Conventional conforming 289,273 144,872 Jumbo — 641 Home equity lines of credit 14 — Purchased from Ginnie Mae pools serviced by the Company 76,105 250,585 Repurchased pursuant to representations and warranties 8,898 9,423 $ 4,522,971 $ 2,521,647 Fair value of loans pledged to secure: Assets sold under agreements to repurchase $ 3,939,161 $ 1,923,857 Mortgage loan participation purchase and sale agreements 542,049 555,001 $ 4,481,210 $ 2,478,858

Derivative Financial Instrume_2

Derivative Financial Instruments (Tables)	9 Months Ended
	Sep. 30, 2019
Derivative Financial Instruments
Summary of derivative financial instruments	September 30, 2019 December 31, 2018 Fair value Fair value Notional Derivative Derivative Notional Derivative Derivative Instrument amount assets liabilities amount assets liabilities (in thousands) Not subject to master netting arrangements: Interest rate lock commitments 8,311,786 $ 147,400 $ 2,276 2,805,400 $ 50,507 $ 1,169 Repurchase agreement derivatives 8,187 — 26,770 — Used for hedging purposes: Forward purchase contracts 15,829,825 17,943 51,585 6,657,026 35,916 215 Forward sales contracts 15,116,810 6,141 34,498 6,890,046 437 26,762 MBS put options 10,050,000 10,040 — 4,635,000 720 — MBS call options — — — 1,450,000 2,135 — Put options on interest rate futures purchase contracts 4,350,000 6,266 — 3,085,000 866 — Call options on interest rate futures purchase contracts 600,000 2,414 — 1,512,500 5,965 — Treasury futures purchase contracts 1,408,500 — — 835,000 — — Treasury futures sale contracts 1,132,500 — — 1,450,000 — — Interest rate swap futures purchase contracts 3,910,000 — — 625,000 — — Total derivatives before netting 198,391 88,359 123,316 28,146 Netting 34,557 (74,324) (26,969) (25,082) $ 232,948 $ 14,035 $ 96,347 $ 3,064 Collateral placed with (received from) derivative counterparties $ 108,881 $ (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 September 30, 2019 Notional Notional amount amount beginning of Dispositions/ end of Instrument quarter Additions expirations quarter (in thousands) Forward purchase contracts 19,497,698 100,139,970 (103,807,843) 15,829,825 Forward sale contracts 14,276,156 122,174,329 (121,333,675) 15,116,810 MBS put options 12,775,000 29,575,000 (32,300,000) 10,050,000 MBS call options 2,250,000 — (2,250,000) — Put options on interest rate futures purchase contracts 2,835,000 9,850,000 (8,335,000) 4,350,000 Call options on interest rate futures purchase contracts 3,687,500 1,750,000 (4,837,500) 600,000 Put options on interest rate futures sale contracts — 8,335,000 (8,335,000) — Call options on interest rate futures sale contracts — 4,837,500 (4,837,500) — Treasury futures purchase contracts 486,100 5,132,000 (4,209,600) 1,408,500 Treasury futures sale contracts 1,550,000 3,792,100 (4,209,600) 1,132,500 Interest rate swap futures purchase contracts 2,900,000 1,800,000 (790,000) 3,910,000 Interest rate swap futures sales contracts — 790,000 (790,000) — Quarter ended September 30, 2018 Notional Notional amount amount beginning of Dispositions/ end of Instrument quarter Additions expirations quarter (in thousands) Forward purchase contracts 6,617,888 47,038,415 (46,540,682) 7,115,621 Forward sale contracts 7,107,202 58,521,199 (58,917,204) 6,711,197 MBS put options 2,675,000 8,375,000 (6,900,000) 4,150,000 MBS call options — 1,250,000 — 1,250,000 Put options on interest rate futures purchase contracts 1,852,500 4,922,300 (4,549,800) 2,225,000 Call options on interest rate futures purchase contracts 800,000 950,000 (1,350,000) 400,000 Put options on interest rate futures sale contracts — 4,849,800 (4,549,800) 300,000 Call options on interest rate futures sale contracts — 1,350,000 (1,350,000) — Treasury futures purchase contracts 835,000 2,557,100 (2,557,100) 835,000 Treasury futures sale contracts 1,450,000 2,557,100 (2,557,100) 1,450,000 Interest rate swap futures purchase contracts 465,000 420,000 (885,000) — Interest rate swap futures sales contracts — 885,000 (260,000) 625,000 Nine months ended September 30, 2019 Notional Notional amount amount beginning of Dispositions/ end of Instrument period Additions expirations period (in thousands) Forward purchase contracts 6,657,026 237,370,321 (228,197,522) 15,829,825 Forward sale contracts 6,890,046 275,749,351 (267,522,587) 15,116,810 MBS put options 4,635,000 77,185,000 (71,770,000) 10,050,000 MBS call options 1,450,000 6,750,000 (8,200,000) — Put options on interest rate futures purchase contracts 3,085,000 19,422,500 (18,157,500) 4,350,000 Call options on interest rate futures purchase contracts 1,512,500 13,127,800 (14,040,300) 600,000 Put options on interest rate futures sale contracts — 27,297,800 (27,297,800) — Call options on interest rate futures sale contracts — 4,837,500 (4,837,500) — Treasury futures purchase contracts 835,000 11,943,400 (11,369,900) 1,408,500 Treasury futures sale contracts 1,450,000 11,052,400 (11,369,900) 1,132,500 Interest rate swap futures purchase contracts 625,000 4,075,000 (790,000) 3,910,000 Interest rate swap futures sale contracts — 790,000 (790,000) — Nine months ended September 30, 2018 Notional Notional amount amount beginning of Dispositions/ end of Instrument period Additions expirations period (in thousands) Forward purchase contracts 4,920,883 140,158,865 (137,964,127) 7,115,621 Forward sale contracts 5,204,796 174,562,881 (173,056,480) 6,711,197 MBS put options 4,925,000 17,250,000 (18,025,000) 4,150,000 MBS call options — 12,375,000 (11,125,000) 1,250,000 Put options on interest rate futures purchase contracts 2,125,000 16,624,800 (16,524,800) 2,225,000 Call options on interest rate futures purchase contracts 100,000 2,400,000 (2,100,000) 400,000 Put options on interest rate futures sale contracts — 16,824,800 (16,524,800) 300,000 Call options on interest rate futures sale contracts — 2,100,000 (2,100,000) — Treasury futures purchase contracts 100,000 7,453,300 (6,718,300) 835,000 Treasury futures sale contracts — 8,829,600 (7,379,600) 1,450,000 Interest rate swap futures purchase contracts 1,400,000 885,000 (2,285,000) — Interest rate swap futures sales contracts — 2,285,000 (1,660,000) 625,000
Summaries of derivative assets and related netting amounts	September 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 $ 147,400 $ — $ 147,400 $ 50,507 $ — $ 50,507 Repurchase agreement derivatives 8,187 — 8,187 26,770 — 26,770 155,587 — 155,587 77,277 — 77,277 Derivatives subject to master netting arrangements: Forward purchase contracts 17,943 — 17,943 35,916 — 35,916 Forward sale contracts 6,141 — 6,141 437 — 437 MBS put options 10,040 — 10,040 720 — 720 MBS call options — — — 2,135 — 2,135 Put options on interest rate futures purchase contracts 6,266 — 6,266 866 — 866 Call options on interest rate futures purchase contracts 2,414 — 2,414 5,965 — 5,965 Netting — 34,557 34,557 — (26,969) (26,969) 42,804 34,557 77,361 46,039 (26,969) 19,070 $ 198,391 $ 34,557 $ 232,948 $ 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	September 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 $ 147,400 $ — $ — $ 147,400 $ 50,507 $ — $ — $ 50,507 JPMorgan Chase Bank, N.A. 32,450 — — 32,450 1,399 — — 1,399 Citibank, N.A. 15,951 — — 15,951 2,488 — — 2,488 Morgan Stanley Bank, N.A. 11,842 — — 11,842 — — — RJ O'Brien 8,680 — — 8,680 6,831 — — 6,831 Deutsche Bank 8,187 — — 8,187 26,770 — — 26,770 Wells Fargo Bank, N.A. 5,728 — — 5,728 3,707 — — 3,707 Goldman Sachs 2,252 — — 2,252 — — — — Bank of America, N.A. — — — — 2,781 — — 2,781 Others 458 — — 458 1,864 — — 1,864 $ 232,948 $ — $ — $ 232,948 $ 96,347 $ — $ — $ 96,347
Summary of net derivative liabilities and assets sold under agreements to repurchase and related netting amounts	September 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 $ 2,276 $ — $ 2,276 $ 1,169 $ — $ 1,169 Derivatives subject to a master netting arrangement: Forward purchase contracts 51,585 — 51,585 215 — 215 Forward sale contracts 34,498 — 34,498 26,762 — 26,762 Netting — (74,324) (74,324) — (25,082) (25,082) 86,083 (74,324) 11,759 26,977 (25,082) 1,895 Total derivatives 88,359 (74,324) 14,035 28,146 (25,082) 3,064 Assets sold under agreements to repurchase: Amount outstanding 3,539,459 — 3,539,459 1,935,200 — 1,935,200 Unamortized debt issuance premiums and costs, net (570) — (570) (1,341) — (1,341) 3,538,889 — 3,538,889 1,933,859 — 1,933,859 $ 3,627,248 $ (74,324) $ 3,552,924 $ 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	September 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 $ 2,276 $ — $ — $ 2,276 $ 1,169 $ — $ — $ 1,169 Credit Suisse First Boston Mortgage Capital LLC 1,000,098 (999,713) — 385 691,030 (690,766) — 264 Bank of America, N.A. 506,553 (497,335) — 9,218 170,820 (170,820) — — JPMorgan Chase Bank, N.A. 711,619 (711,619) — — 54,326 (54,326) — — Morgan Stanley Bank, N.A. 551,027 (551,027) — — 77,687 (77,687) — — Citibank, N.A. 461,496 (461,496) — — 14,960 (14,960) — — BNP Paribas 192,534 (192,534) — — 149,675 (149,482) — 193 Royal Bank of Canada 125,735 (125,735) — — 35,181 (35,181) — — Deutsche Bank — — — — 741,978 (741,978) — — Federal National Mortgage Association 685 — — 685 — — — — Others 1,471 — — 1,471 1,438 — — 1,438 $ 3,553,494 $ (3,539,459) $ — $ 14,035 $ 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 September 30, Nine months ended September 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 $ 33,347 $ (18,526) $ 95,785 $ (21,109) Repurchase agreement derivatives Interest expense $ 92 $ (227) $ (1,608) $ (1,345) Hedged item: Interest rate lock commitments and loans held for sale Net gains on loans held for sale at fair value $ (55,540) $ 10,820 $ (157,362) $ 100,422 Mortgage servicing rights Net loan servicing fees –C hange in fair value of mortgage servicing rights and mortgage servicing liabilities $ 250,146 $ (52,971) $ 587,883 $ (180,853)

Mortgage Servicing Rights and_2

Mortgage Servicing Rights and Mortgage Servicing Liabilities (Tables)	9 Months Ended
	Sep. 30, 2019
Mortgage Servicing Rights and Mortgage Servicing Liabilities
Schedule of activity in MSRs carried at fair value	Quarter ended September 30, Nine months ended September 30, 2019 2018 2019 2018 (in thousands) Balance at beginning of period $ 2,720,335 $ 2,486,157 $ 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 2,720,335 2,486,157 2,820,612 2,120,436 Additions: Resulting from loan sales 246,757 149,000 545,839 448,604 Purchases 46 163,511 227,445 193,640 246,803 312,511 773,284 642,244 Change in fair value due to: Changes in inputs used in valuation model (1) (286,880) 64,293 (704,967) 239,538 Other changes in fair value (2) (124,005) (76,997) (332,676) (216,254) Total change in fair value (410,885) (12,704) (1,037,643) 23,284 Balance at end of period $ 2,556,253 $ 2,785,964 $ 2,556,253 $ 2,785,964 September 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 $ 2,550,602 $ 2,807,333 (1) Principally reflects changes in discount rate and prepayment speed inputs, primarily due to changes in market interest rates. (2) Represents changes due to realization of cash flows.
Schedule of activity in mortgage servicing liability carried at fair value	Quarter ended September 30, Nine months ended September 30, 2019 2018 2019 2018 (in thousands) Balance at beginning of period $ 12,948 $ 10,253 $ 8,681 $ 14,120 Mortgage servicing liabilities resulting from loan sales 19,501 1,741 27,133 5,548 Changes in fair value due to: Changes in valuation inputs used in valuation model (1) 8,630 3,410 14,687 8,590 Other changes in fair value (2) (6,785) (5,635) (16,207) (18,489) Total change in fair value 1,845 (2,225) (1,520) (9,899) Balance at end of period $ 34,294 $ 9,769 $ 34,294 $ 9,769 (1) Principally reflects changes in expected borrower performance and servicer losses given default. (2) Represents changes due to realization of cash flows.
Summary of servicing fees, late fees and ancillary and other fees relating to MSRs recorded on the consolidated statements of income	Quarter ended September 30, Nine months ended September 30, 2019 2018 2019 2018 (in thousands) Contractual servicing fees $ 185,967 $ 147,182 $ 533,510 $ 421,536 Other fees: Late charges 12,430 5,087 31,258 19,595 Other 4,846 1,244 9,119 4,620 $ 203,243 $ 153,513 $ 573,887 $ 445,751

Leases (Tables)

Leases (Tables)	9 Months Ended
	Sep. 30, 2019
Leases
Summary of Company's leases	Quarter ended Nine months ended September 30, 2019 September 30, 2019 (dollars in thousands) Lease expense: Operating leases $ 3,356 $ 9,817 Short-term leases 213 644 Sublease income (35) (94) Net lease expense included in Occupancy and equipment $ 3,534 $ 10,367 Other information: Cash payments for operating leases $ 4,063 $ 11,793 Operating lease right-of-use assets recognized Upon adoption of ASU 2016-02 $ — $ 58,713 New leases 1,929 1,929 $ 1,929 $ 60,642 Period end: Weighted averages: Remaining lease term (in years) 5.8 Discount rate
Schedule of maturities of operating lease liabilities	Twelve months ended September 30, Operating leases (in thousands) 2020 $ 17,246 2021 14,754 2022 12,170 2023 11,580 2024 9,123 Thereafter 17,628 Total lease payments 82,501 Less imputed interest (10,341) Total $ 72,160

Borrowings (Tables)

Borrowings (Tables)	9 Months Ended
	Sep. 30, 2019
Borrowings
Summary of financial data pertaining to assets sold under agreements to repurchase	Quarter ended September 30, Nine months ended September 30, 2019 2018 2019 2018 (dollars in thousands) Average balance of assets sold under agreements to repurchase $ 2,098,208 $ 1,563,053 $ 1,861,086 $ 1,618,008 Weighted average interest rate (1) 3.66 % 3.91 % 4.08 % 3.72 % Total interest expense (2) $ 19,429 $ 4,676 $ 47,709 $ 15,943 Maximum daily amount outstanding $ 3,539,459 $ 2,201,880 $ 3,539,459 $ 2,380,121 September 30, December 31, 2019 2018 (dollars in thousands) Carrying value: Unpaid principal balance $ 3,539,459 $ 1,935,200 Unamortized debt issuance premiums and costs, net (570) (1,341) $ 3,538,889 $ 1,933,859 Weighted average interest rate 3.53 % 4.22 % Available borrowing capacity (3): Committed $ 2,665 $ 695,767 Uncommitted 1,292,876 2,354,033 $ 1,295,541 $ 3,049,800 Fair value of assets securing repurchase agreements: Loans held for sale $ 3,939,161 $ 1,923,857 Assets purchased from PennyMac Mortgage Investment Trust under agreements to resell $ 107,678 $ 131,025 Servicing advances (4) $ 181,747 $ 162,895 Mortgage servicing rights (4) $ 2,532,369 $ 2,807,333 Margin deposits placed with counterparties (5) $ 5,000 $ 3,750 (1) Excludes the effect of amortization of net issuance costs and premiums totaling $0.2 million and $9.2 million for the quarter and nine months ended September 30, 2019, respectively, and net premiums totaling $10.9 million and $29.7 million for the quarter and nine months ended September 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 $1.6 million and $12.8 million of such incentives as reductions in Interest expense during the quarters ended September 30, 2019 and 2018, respectively, and $14.7 million and $35.5 million during the nine months ended September 30, 2019 and 2018, respectively. The master repurchase agreement expired on August 21, 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 September 30, 2019 Balance (dollars in thousands) Within 30 days $ 276,113 Over 30 to 90 days 3,041,052 Over 90 to 180 days 122,294 Over 180 days to one year 100,000 Total assets sold under agreements to repurchase $ 3,539,459 Weighted average maturity (in months) 2.5
Summary of amount at risk relating to the assets sold under agreements to repurchase by counterparty	Weighted average maturity of advances under repurchase Counterparty Amount at risk agreement Facility maturity (in thousands) Credit Suisse First Boston Mortgage Capital LLC $ 1,313,083 April 26, 2020 April 26, 2020 Credit Suisse First Boston Mortgage Capital LLC $ 231,656 December 2, 2019 April 24, 2020 Bank of America, N.A. $ 82,942 October 28, 2019 October 28, 2019 JP Morgan Chase Bank, N.A. $ 79,142 October 9, 2019 October 11, 2019 Citibank, N.A. $ 41,279 December 17, 2019 August 4, 2020 Morgan Stanley Bank, N.A. $ 40,511 December 16, 2019 August 21, 2020 BNP Paribas $ 12,363 December 17, 2019 July 31, 2020 Royal Bank of Canada $ 9,804 December 31, 2019 December 31, 2019
Summary of mortgage loan participations	Quarter ended September 30, Nine months ended September 30, 2019 2018 2019 2018 (dollars in thousands) Average balance $ 258,169 $ 289,008 $ 249,023 $ 250,599 Weighted average interest rate (1) 3.36 % 3.31 % 3.55 % 3.14 % Total interest expense $ 2,304 $ 2,533 $ 7,034 $ 6,450 Maximum daily amount outstanding $ 524,095 $ 722,611 $ 548,038 $ 722,611 (1) Excludes the effect of amortization of facility fees totaling $135,000 and $92,000 for the quarters ended September 30, 2019 and 2018, respectively, and $405,000 and $475,000 for the nine months ended September 30, 2019 and 2018, respectively. September 30, December 31, 2019 2018 (dollars in thousands) Carrying value: Unpaid principal balance $ 514,625 $ 532,466 Unamortized debt issuance costs — (215) $ 514,625 $ 532,251 Weighted average interest rate 3.27 % 3.77 % Fair value of loans pledged to secure mortgage loan participation purchase and sale agreements $ 542,049 $ 555,001
Summary of note payable	Quarter ended September 30, Nine months ended September 30, 2019 2018 2019 2018 (dollars in thousands) Average balance $ 1,300,000 $ 1,234,783 $ 1,300,000 $ 1,125,458 Weighted average interest rate (1) 5.11 % 5.07 % 5.21 % 5.29 % Total interest expense $ 17,525 $ 21,369 $ 53,559 $ 55,939 Maximum daily amount outstanding $ 1,300,000 $ 1,300,000 $ 1,300,000 $ 1,300,000 (1) Excludes the effect of amortization of debt issuance costs and non-utilization fees totaling $0.9 million and $2.0 million for the quarters ended September 30, 2019 and 2018, respectively, and $2.7 million and $2.8 million for the nine months ended September 30, 2019 and 2018, respectively, as well as unamortized debt issuance costs of $3.4 million and $8.0 million, recognized in Interest expense due to repayments of certain previously issued notes during the quarter and nine months ended September 30, 2018, respectively. September 30, December 31, 2019 2018 (dollars in thousands) Carrying value: Unpaid principal balance $ 1,300,000 $ 1,300,000 Unamortized debt issuance costs (6,375) (7,709) $ 1,293,625 $ 1,292,291 Weighted average interest rate 4.90 % 5.07 % Unused amount $ 150,000 $ 150,000 Assets pledged to secure notes payable: Cash $ 101,773 $ 108,174 Servicing advances (1) $ 181,747 $ 162,895 Mortgage servicing rights (1) $ 2,489,481 $ 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 September 30, Nine months ended September 30, 2019 2018 2019 2018 (dollars in thousands) Average balance $ 25,812 $ 11,615 $ 13,380 $ 15,187 Weighted average interest rate 4.47 % 4.09 % 4.48 % 3.87 % Total interest expense $ 274 $ 122 $ 476 $ 444 Maximum daily amount outstanding $ 28,295 $ 13,032 $ 28,295 $ 20,971 September 30, December 31, 2019 2018 (dollars in thousands) Unpaid principal balance $ 23,881 $ 6,605 Weighted average interest rate 4.45 % 4.46 % Assets pledged to secure obligations under capital lease: Furniture, fixtures and equipment $ 22,172 $ 16,281 Capitalized software $ 14,090 $ 1,017
Summary of roll forward of Excess Servicing Spread Financing	Quarter ended September 30, Nine months ended September 30, 2019 2018 2019 2018 (in thousands) Balance at beginning of period $ 194,156 $ 229,470 $ 216,110 $ 236,534 Issuances of excess servicing spread to PennyMac Mortgage Investment Trust pursuant to recapture agreement 377 499 1,327 1,983 Accrual of interest 2,291 3,740 8,124 11,584 Repayment (9,819) (11,543) (30,901) (35,852) Change in fair value (3,864) 1,109 (11,519) 9,026 Balance at end of period $ 183,141 $ 223,275 $ 183,141 $ 223,275

Liability for Losses Under Re_2

Liability for Losses Under Representations and Warranties (Tables)	9 Months Ended
	Sep. 30, 2019
Liability for Losses Under Representations and Warranties
Summary of repurchase activity	Quarter ended September 30, Nine months ended September 30, 2019 2018 2019 2018 (in thousands) Balance at beginning of period $ 18,709 $ 20,587 $ 21,155 $ 20,053 Provision for losses on loans sold: Resulting from sales of loans 2,508 1,842 5,222 4,550 Reduction in liability due to change in estimate (1,175) (1,155) (6,305) (3,627) (Recoveries) incurred losses, net (74) (252) (104) 46 Balance at end of period $ 19,968 $ 21,022 $ 19,968 $ 21,022 Unpaid principal balance of loans subject to representations and warranties at end of period $ 166,541,153 $ 139,315,779

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	9 Months Ended
	Sep. 30, 2019
Stockholders' Equity.
Summary of share repurchase activity	Quarter ended September 30, Nine months ended September 30, Cumulative 2019 2018 2019 2018 total (1) (in thousands) Shares of common stock repurchased — — 51 236 816 Cost of shares of common stock repurchased $ — $ — $ 1,056 $ 4,826 $ 14,948 Amounts represent the total shares of common stock repurchased under the stock repurchase program through September 30, 2019.

Noncontrolling Interest (Tables

Noncontrolling Interest (Tables)	9 Months Ended
	Sep. 30, 2019
Noncontrolling Interest.
Noncontrolling Interest	Quarter ended Nine months ended September 30, 2018 September 30, 2018 (in thousands) Net income attributable to PennyMac Financial Services, Inc. common stockholders $ 14,489 $ 48,945 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. $ 4,377 $ 32,501 Shares of Class A common stock of PennyMac Financial Services, Inc. issued pursuant to exchange of Class A units of Private National Mortgage Acceptance Company, LLC by noncontrolling interest unitholders and issued as equity compensation 131 1,616

Net Gains on Loans Held for S_2

Net Gains on Loans Held for Sale (Tables)	9 Months Ended
	Sep. 30, 2019
Net Gains on Loans Held for Sale
Net Gains on Loans Held for Sale	Quarter ended September 30, Nine months ended September 30, 2019 2018 2019 2018 (in thousands) From non-affiliates: Cash loss: Loans $ (22,838) $ (107,414) $ (77,659) $ (399,457) Hedging activities (148,128) (2,507) (230,200) 89,322 (170,966) (109,921) (307,859) (310,135) Non-cash gain: Mortgage servicing rights and mortgage servicing liabilities resulting from loan sales 227,256 147,259 518,706 443,056 Provision for losses relating to representations and warranties: Pursuant to loan sales (2,508) (1,842) (5,222) (4,550) Reduction in liability due to change in estimate 1,175 1,155 6,305 3,627 Change in fair value of loans and derivatives held at period end: Interest rate lock commitments 33,347 (18,526) 95,785 (21,109) Loans (5,822) 6,897 (35,508) 21,407 Hedging derivatives 92,588 13,327 72,838 11,100 175,070 38,349 345,045 143,396 From PennyMac Mortgage Investment Trust 60,662 18,565 122,996 45,878 $ 235,732 $ 56,914 $ 468,041 $ 189,274

Net Interest Income (Tables)

Net Interest Income (Tables)	9 Months Ended
	Sep. 30, 2019
Net Interest Income
Summary of net interest income	Quarter ended September 30, Nine months ended September 30, 2019 2018 2019 2018 (in thousands) Interest income: From non-affiliates: Cash and short-term investments $ 2,894 $ 814 $ 7,533 $ 2,001 Loans held for sale at fair value 35,800 34,941 101,509 95,982 Placement fees relating to custodial funds 43,231 23,397 98,628 55,014 81,925 59,152 207,670 152,997 From PennyMac Mortgage Investment Trust—Assets purchased from PennyMac Mortgage Investment Trust under agreements to resell 1,527 1,812 5,015 5,686 83,452 60,964 212,685 158,683 Interest expense: To non-affiliates: Assets sold under agreements to repurchase (1) 19,429 4,676 47,709 15,943 Mortgage loan participation purchase and sale agreements 2,304 2,533 7,034 6,450 Notes payable 17,525 21,369 53,559 55,939 Obligations under capital lease 274 122 476 444 Interest shortfall on repayments of mortgage loans serviced for Agency securitizations 12,453 4,883 24,978 14,259 Interest on mortgage loan impound deposits 2,104 1,452 4,967 3,517 54,089 35,035 138,723 96,552 To PennyMac Mortgage Investment Trust—Excess servicing spread financing at fair value 2,291 3,740 8,124 11,584 56,380 38,775 146,847 108,136 $ 27,072 $ 22,189 $ 65,838 $ 50,547 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 $1.6 million and $12.8 million of such incentives as reductions of Interest expense during the quarter ended September 30, 2019 and 2018, respectively, and $14.7 million and $35.5 million during the nine months ended September 30, 2019 and 2018, respectively. The master repurchase agreement expired on August 21, 2019.

Stock-based Compensation (Table

Stock-based Compensation (Tables)	9 Months Ended
	Sep. 30, 2019
Stock-based Compensation
Summary of the stock-based compensation activity	Quarter ended September 30, Nine months ended September 30, 2019 2018 2019 2018 (in thousands) Grants: Units: Performance-based RSUs — — 665 524 Stock options — — 344 674 Time-based RSUs 4 5 334 321 Grant date fair value: Performance-based RSUs $ — $ — $ 15,253 $ 12,791 Stock options — — 2,965 6,147 Time-based RSUs 102 100 7,647 7,803 Total $ 102 $ 100 $ 25,865 $ 26,741 Vestings and exercises: Performance-based RSUs vested — — 648 774 Stock options exercised 127 55 245 285 Time-based RSUs vested 3 1 294 245 Compensation expense $ 8,941 $ 8,532 $ 19,124 $ 20,766

Earnings Per Share of Common _2

Earnings Per Share of Common Stock (Tables)	9 Months Ended
	Sep. 30, 2019
Earnings Per Share of Common Stock
Summary of basic and diluted earnings per share calculations	Quarter ended September 30, Nine months ended September 30, 2019 2018 2019 2018 (in thousands, except per share amounts) Basic earnings per share of common stock: Net income attributable to common stockholders $ 121,473 $ 14,489 $ 240,304 $ 48,945 Weighted average shares of common stock outstanding 78,361 25,125 78,119 24,644 Basic earnings per share of common stock $ 1.55 $ 0.58 $ 3.08 $ 1.99 Diluted earnings per share of common stock: Net income attributable to common stockholders $ 121,473 $ 14,489 $ 240,304 $ 48,945 Net income attributable to dilutive stock-based compensation units — 552 — 2,435 Net income attributable to PennyMac Class A units exchangeable to Class A common stock, net of income taxes — 29,580 — 101,921 Net income attributable to common stockholders for diluted earnings per share $ 121,473 $ 44,621 $ 240,304 $ 153,301 Weighted average shares of common stock outstanding applicable to basic earnings per share 78,361 25,125 78,119 24,644 Effect of dilutive shares: Common shares issuable under stock-based compensation plan 2,021 1,476 1,702 1,818 PennyMac Class A units exchangeable to Class A common stock — 52,312 — 52,492 Weighted average shares of common stock applicable to diluted earnings per share 80,382 78,913 79,821 78,954 Diluted earnings per share of common stock $ 1.51 $ 0.57 $ 3.01 $ 1.94
Schedule of anti-dilutive shares outstanding	Quarter ended September 30, Nine months ended September 30, 2019 2018 2019 2018 (in thousands except for weighted-average exercise price) Performance-based RSUs (1) 1,157 1,172 985 1,060 Time-based RSUs — 86 — 68 Stock options (2) 566 1,208 888 705 Total anti-dilutive shares and units 1,723 2,466 1,873 1,833 Weighted average exercise price of anti-dilutive stock options (2) $ 23.50 $ 17.79 $ 23.98 $ 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)	9 Months Ended
	Sep. 30, 2019
Supplemental Cash Flow Information
Schedule of supplemental cash flow information	Nine months ended September 30, 2019 2018 (in thousands) Cash paid for interest $ 125,987 $ 123,622 Cash paid (refunds received) for income taxes , net $ 5,761 $ (1,541) Non-cash investing activity: Mortgage servicing rights resulting from loan sales $ 545,839 $ 448,604 Mortgage servicing liabilities resulting from loan sales $ 27,133 $ 5,548 Unsettled portion of MSR acquisitions $ — $ 13,501 Operating right-of-use assets recognized $ 60,642 $ — Non-cash financing activity: Issuance of Excess servicing spread payable to PennyMac Mortgage Investment Trust pursuant to a recapture agreement $ 1,327 $ 1,983 Issuance of common stock and Class A common stock in settlement of director fees $ 184 $ 245

Regulatory Capital and Liquid_2

Regulatory Capital and Liquidity Requirements (Tables)	9 Months Ended
	Sep. 30, 2019
Regulatory Capital and Liquidity Requirements
Summary of agencies' capital and liquidity requirements by each agency	September 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 $ 2,062,630 $ 572,167 $ 1,788,430 $ 514,089 Ginnie Mae – PLS $ 1,718,072 $ 852,256 $ 1,535,826 $ 733,342 Ginnie Mae – PennyMac $ 2,006,339 $ 937,482 $ 1,786,430 $ 806,676 HUD – PLS $ 1,718,072 $ 2,500 $ 1,535,826 $ 2,500 Liquidity Fannie Mae & Freddie Mac – PLS $ 282,056 $ 78,240 $ 271,802 $ 70,775 Ginnie Mae – PLS $ 282,056 $ 211,021 $ 271,802 $ 189,592 Tangible net worth / Total assets ratio Fannie Mae & Freddie Mac – PLS 19 % 6 % % % (1) Calculated in compliance with the respective Agency’s requirements.

Segments (Tables)

Segments (Tables)	9 Months Ended
	Sep. 30, 2019
Segments
Schedule of change in expense allocation, by segment	Quarter ended September 30, 2019 Mortgage Banking Investment Production Servicing Total Management Total (in thousands) Revenue: (1) Net gains on loans held for sale at fair value $ 216,132 $ 19,600 $ 235,732 $ — $ 235,732 Loan origination fees 49,434 — 49,434 — 49,434 Fulfillment fees from PennyMac Mortgage Investment Trust 45,149 — 45,149 — 45,149 Net loan servicing fees — 66,229 66,229 — 66,229 Net interest income (expense): Interest income 22,445 61,007 83,452 — 83,452 Interest expense 18,423 37,936 56,359 21 56,380 4,022 23,071 27,093 (21) 27,072 Management fees — — — 10,098 10,098 Other 324 567 891 1,742 2,633 Total net revenue 315,061 109,467 424,528 11,819 436,347 Expenses 135,777 127,581 263,358 6,792 270,150 Income before provision for income taxes $ 179,284 $ (18,114) $ 161,170 $ 5,027 $ 166,197 Segment assets at quarter end $ 4,850,741 $ 4,433,177 $ 9,283,918 $ 19,281 $ 9,303,199 (1) All revenues are from external customers. Quarter ended September 30, 2018 Mortgage Banking Investment Production Servicing Total Management Total (in thousands) Revenue: (1) Net gains on loans held for sale at fair value $ 34,947 $ 21,967 $ 56,914 $ — $ 56,914 Loan origination fees 26,485 — 26,485 — 26,485 Fulfillment fees from PennyMac Mortgage Investment Trust 26,256 — 26,256 — 26,256 Net loan servicing fees — 109,703 109,703 — 109,703 Net interest income (expense): Interest income 17,013 43,935 60,948 16 60,964 Interest expense 1,274 37,491 38,765 10 38,775 15,739 6,444 22,183 6 22,189 Management fees — — — 6,471 6,471 Carried Interest from Investment Funds — — — (17) (17) Other 645 805 1,450 1,478 2,928 Total net revenue 104,072 138,919 242,991 7,938 250,929 Expenses 78,405 105,346 183,751 5,481 189,232 Income before provision for income taxes $ 25,667 $ 33,573 $ 59,240 $ 2,457 $ 61,697 Segment assets at quarter end (2) $ 2,168,126 $ 4,812,898 $ 6,981,024 $ 11,996 $ 6,993,020 (1) All revenues are from external customers. (2) Excludes parent Company assets, which consist of $1.8 million of cash and includes receivable from parent Company of $2.3 million. Nine months ended September 30, 2019 Mortgage Banking Investment Production Servicing Total Management Total (in thousands) Revenue: (1) Net gains on loans held for sale at fair value $ 407,713 $ 60,328 $ 468,041 $ — $ 468,041 Loan origination fees 110,288 — 110,288 — 110,288 Fulfillment fees from PennyMac Mortgage Investment Trust 102,313 — 102,313 — 102,313 Net loan servicing fees — 205,934 205,934 — 205,934 Net interest income (expense): Interest income 55,714 156,971 212,685 — 212,685 Interest expense 36,236 110,572 146,808 39 146,847 19,478 46,399 65,877 (39) 65,838 Management fees — — — 26,178 26,178 Other 929 2,664 3,593 4,844 8,437 Total net revenue 640,721 315,325 956,046 30,983 987,029 Expenses 316,187 324,949 641,136 19,815 660,951 Income before provision for income taxes $ 324,534 $ (9,624) $ 314,910 $ 11,168 $ 326,078 Segment assets at period end $ 4,850,741 $ 4,433,177 $ 9,283,918 $ 19,281 $ 9,303,199 (1) All revenues are from external customers. Nine months ended September 30, 2018 Mortgage Banking Investment Production Servicing Total Management Total (in thousands) Revenue: (1) Net gains on loans held for sale at fair value $ 105,111 $ 84,163 $ 189,274 $ — $ 189,274 Loan origination fees 75,476 — 75,476 — 75,476 Fulfillment fees from PennyMac Mortgage Investment Trust 52,759 — 52,759 — 52,759 Net loan servicing fees — 340,181 340,181 — 340,181 Net interest income (expense): Interest income 48,135 110,532 158,667 16 158,683 Interest expense 4,401 103,694 108,095 41 108,136 43,734 6,838 50,572 (25) 50,547 Management fees — — — 17,910 17,910 Carried Interest from Investment Funds — — — (365) (365) Other 1,497 1,928 3,425 4,221 7,646 Total net revenue 278,577 433,110 711,687 21,741 733,428 Expenses 216,722 290,094 506,816 17,221 524,037 Income before provision for income taxes $ 61,855 $ 143,016 $ 204,871 $ 4,520 $ 209,391 Segment assets at period end (2) $ 2,168,126 $ 4,812,898 $ 6,981,024 $ 11,996 $ 6,993,020 (1) All revenues are from external customers. (2) Excludes parent Company assets, which consist of $1.8 million of cash and includes receivable from parent Company of $2.3 million.

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	Sep. 30, 2019	Sep. 30, 2019	Dec. 31, 2018
Recently Issued Accounting Pronouncements
Lease liability		$ 72,160	$ 72,160
Right-of-use assets obtained in exchange for lease obligations		1,929	60,642
Deferred rent		$ 215,379	$ 215,379	$ 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		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Sales Revenue | Customer Concentration Risk
Concentration of Risk
Percentage of total net revenue	32.00%	25.00%	31.00%	19.00%

Transactions with Affiliates -

Transactions with Affiliates - Correspondent Production (Details) - USD ($) $ in Thousands	Sep. 12, 2016	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 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		$ 60,662	$ 18,565	$ 122,996	$ 45,878
Sale of loans held for sale to PMT				4,095,079	2,336,162
Fulfillment fee revenue		45,149	26,256	102,313	52,759
Proceeds from sale of mortgage loans held for sale to PennyMac Mortgage Investment Trust				4,095,079	2,336,162
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		62,558	19,722	127,423	49,396
Mortgage servicing rights and excess servicing spread recapture incurred		(1,896)	(1,157)	(4,427)	(3,518)
Total of gain on sale of loans and MSR recapture		60,662	18,565	122,996	45,878
Sale of loans held for sale to PMT		1,876,358	908,525	4,095,079	2,336,162
Tax service fee		4,222	2,119	9,567	4,869
Fulfillment fee revenue		45,149	26,256	102,313	52,759
Unpaid principal balance of loans fulfilled for PMT		16,647,172	7,517,883	35,523,802	17,139,884
Sourcing fees paid		4,206	2,689	9,355	8,221
Unpaid principal balance of loans purchased from PMT		14,022,222	8,916,654	31,183,950	27,404,022
Proceeds from sale of mortgage loans held for sale to PennyMac Mortgage Investment Trust		$ 1,876,358	$ 908,525	$ 4,095,079	$ 2,336,162

Transactions with Affiliates _2

Transactions with Affiliates - Mortgage Loan Servicing (Details)	Sep. 12, 2016USD ($)item	Sep. 30, 2019USD ($)	Sep. 30, 2018USD ($)	Sep. 30, 2019USD ($)	Sep. 30, 2018USD ($)
Summary of mortgage loan servicing fees earned
Loan servicing fees		$ 185,967,000	$ 147,182,000	$ 533,510,000	$ 421,536,000
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		12,964,000	10,071,000	35,102,000	30,521,000
PMT | Loans acquired for sale at fair value
Summary of mortgage loan servicing fees earned
Loan servicing fees		507,000	316,000	1,131,000	739,000
PMT | Loans at fair value
Summary of mortgage loan servicing fees earned
Loan servicing fees		858,000	1,271,000	1,938,000	5,528,000
PMT | Mortgage servicing rights
Summary of mortgage loan servicing fees earned
Loan servicing fees		11,599,000	8,484,000	32,033,000	24,254,000
PMT | Other income.
Summary of mortgage loan servicing fees earned
Property management fees		$ 70,000	$ 122,000	$ 295,000	$ 333,000

Transactions with Affiliates _3

Transactions with Affiliates - Management Fees (Details) - USD ($)	Sep. 12, 2016	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Management Fee Revenue Abstract
Management fees		$ 10,098,000	$ 6,471,000	$ 26,178,000	$ 17,910,000
PMT
Management Fee Revenue Abstract
Management fees		10,098,000	6,482,000	26,178,000	17,906,000
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		7,914,000	5,799,000	20,862,000	17,223,000
Performance incentive		2,184,000	683,000	5,316,000	683,000
Management fees		$ 10,098,000	$ 6,482,000	$ 26,178,000	$ 17,906,000
PMT | Management Agreement | Maximum
Transactions with Affiliates
Percentage of performance incentive fee payable by issuance of common shares	50.00%
PMT | Management Agreement | Minimum
Transactions with Affiliates
High watermark	$ 0
PMT | Shareholders Equity Up To 2 Billion Dollars | Maximum
Transactions with Affiliates
Base management fee annual rate (as a percent)	1.50%
Base management fee shareholders' equity limit	$ 2,000,000,000
PMT | Shareholders Equity In Excess Of 2 Billion Dollars And Upto 5 Billion Dollars
Transactions with Affiliates
Base management fee annual rate (as a percent)	1.375%
PMT | Shareholders Equity In Excess Of 2 Billion Dollars And Upto 5 Billion Dollars | Maximum
Transactions with Affiliates
Base management fee shareholders' equity limit	$ 5,000,000,000
PMT | Shareholders Equity In Excess Of 2 Billion Dollars And Upto 5 Billion Dollars | Minimum
Transactions with Affiliates
Base management fee shareholders' equity limit	$ 2,000,000,000
PMT | Shareholders Equity In Excess Of 5 Billion Dollars
Transactions with Affiliates
Base management fee annual rate (as a percent)	1.25%
PMT | Shareholders Equity In Excess Of 5 Billion Dollars | Maximum
Transactions with Affiliates
Base management fee shareholders' equity limit	$ 5,000,000,000
PMT | Return on Shareholders Equity 8 Percent
Transactions with Affiliates
Percentage of net income for calculation of performance incentive fees	10.00%
PMT | Return on Shareholders Equity 8 Percent | Maximum
Transactions with Affiliates
Percentage of return on affiliate's equity	12.00%
PMT | Return on Shareholders Equity 8 Percent | Minimum
Transactions with Affiliates
Percentage of return on affiliate's equity	8.00%
PMT | Return on Shareholders Equity 12 Percent
Transactions with Affiliates
Percentage of net income for calculation of performance incentive fees	15.00%
Percentage of return on affiliate's equity	12.00%
PMT | Return on Shareholders Equity 12 Percent | Maximum
Transactions with Affiliates
Percentage of return on affiliate's equity	16.00%
PMT | Return on Shareholders Equity in Excess of 16 Percent
Transactions with Affiliates
Percentage of net income for calculation of performance incentive fees	20.00%
Percentage of return on affiliate's equity	16.00%

Transactions with Affiliates _4

Transactions with Affiliates - Other Transactions, Reimbursement of Common Overhead Expenses (Details) - PMT - USD ($)	Sep. 12, 2016	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 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		$ 3,605,000	$ 1,857,000	$ 7,416,000	$ 4,333,000
Payments and settlements during the period		68,191,000	21,650,000	111,411,000	45,265,000
Common overhead incurred
Reimbursement of common overhead and expenses incurred on behalf of affiliates
Reimbursement of common overhead and expenses incurred by the Company		1,543,000	1,210,000	4,055,000	3,387,000
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	360,000	360,000
Expenses incurred by related party (reporting entity), net
Reimbursement of common overhead and expenses incurred on behalf of affiliates
Reimbursement of common overhead and expenses incurred by the Company		$ 1,942,000	$ 527,000	$ 3,001,000	$ 586,000

Transactions with Affiliates _5

Transactions with Affiliates - Other Transactions, Conditional Reimbursement (Details) - PMT - Conditional Reimbursement - USD ($)	9 Months Ended
	Sep. 30, 2019	Aug. 04, 2009
Conditional reimbursement
Payments received	$ 219,000
Maximum
Conditional reimbursement
Conditional reimbursement		$ 2,900,000

Transactions with Affiliates _6

Transactions with Affiliates - Investing Activities (Details)	Dec. 19, 2016USD ($)item	Sep. 30, 2019USD ($)shares	Sep. 30, 2018USD ($)	Sep. 30, 2019USD ($)shares	Sep. 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		$ 107,678,000		$ 107,678,000		$ 131,025,000
Activity during the year:
Interest income on receivable from PennyMac Mortgage Investment Trust		1,527,000	$ 1,812,000	5,015,000	$ 5,686,000
Activity during the period:
Dividends received from PennyMac Mortgage Investment Trust		36,000	35,000	107,000	106,000
Change in fair value of investment in Common shares of PennyMac Mortgage Investment Trust		30,000	94,000	270,000	313,000
Balance at end of period		66,000	129,000	377,000	419,000
Loans and Leases Receivable, Related Parties		107,678,000		107,678,000		131,025,000
Fair value of PennyMac Mortgage Investment Trust shares		$ 1,667,000		$ 1,667,000		$ 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		$ 1,527,000	$ 1,812,000	$ 5,015,000	$ 5,686,000

Transactions with Affiliates _7

Transactions with Affiliates - Financing Activities (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018	Feb. 01, 2013
Financing activities:
Issuance pursuant to recapture agreement			$ 1,327,000	$ 1,983,000
Repayments			30,901,000	35,852,000
PMT
Financing activities:
Gain (loss) recognized	$ 3,864,000	$ (1,109,000)	11,519,000	(9,026,000)
Interest expense	2,291,000	3,740,000	8,124,000	11,584,000
Excess servicing spread financing at fair value payable to affiliate	183,141,000		183,141,000		$ 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	(3,864,000)	1,109,000	(11,519,000)	9,026,000
Excess servicing spread financing | PMT
Financing activities:
Issuance pursuant to recapture agreement	377,000	499,000	1,327,000	1,983,000
Repayments	9,819,000	11,543,000	30,901,000	35,852,000
Gain (loss) recognized	3,864,000	(1,109,000)	11,519,000	(9,026,000)
Interest expense	2,291,000	3,740,000	8,124,000	11,584,000
Excess servicing spread recapture recognized	429,000	$ 597,000	1,311,000	$ 1,951,000
Excess servicing spread financing at fair value payable to affiliate	$ 183,141,000		$ 183,141,000		$ 216,110,000

Transactions with Affiliates _8

Transactions with Affiliates - Amounts due from Affiliate (Details) - PMT - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Amounts due from affiliate
Fulfillment fees	$ 14,409	$ 10,006
Management fees	10,230	6,559
Correspondent production fees	5,501	2,071
Servicing fees	4,768	4,841
Allocated expenses	4,166	9,066
Conditional Reimbursement	582	801
Interest on assets purchased under agreements to resell	88	120
Total due from affiliate	39,744	33,464
Payable to affiliate
Deposits made by PMT	56,869	100,554
MSR Recapture Payable to PMT	162	179
Other expenses	4,831	3,898
Payable to affiliates	$ 61,862	$ 104,631

Transactions with Affiliates _9

Transactions with Affiliates - Exchanged Private National Mortgage Acceptance Company, LLC Unitholders (Details) - USD ($) $ in Millions	9 Months Ended	12 Months Ended
	Sep. 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		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Cash flows:
Sales proceeds	$ 17,897,693	$ 11,375,408	$ 39,084,441	$ 34,208,217
Servicing fees received	149,210	123,626	426,774	354,535
Net servicing advances (recoveries)	8,605	$ 4,147	(23,583)	$ (20,572)
Period end information:
Unpaid principal balance of loans outstanding	159,638,921		159,638,921		$ 145,224,596
30-89 days	7,828,087		7,828,087		6,222,864
90 days or more - Not in foreclosure	2,480,348		2,480,348		2,208,083
90 days or more - In foreclosure	1,199,933		1,199,933		720,894
90 days or more - Foreclosed	11,369		11,369		24,243
Bankruptcy	$ 1,339,983		$ 1,339,983		$ 970,329

Loan Sales and Servicing Acti_4

Loan Sales and Servicing Activities - Summary of Mortgage Servicing Portfolio (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Mortgage servicing portfolio
Loans held for sale	$ 4,323,252	$ 2,420,636
Total loans serviced	348,475,008	299,293,872
Subserviced for the Company		414,219
Delinquent loans:
30 days	8,993,663	7,203,168
60 days	2,579,575	2,096,619
90 days or more - Not in foreclosure	3,224,993	3,319,607
90 days or more - In foreclosure	1,606,230	1,154,518
90 days or more - Foreclosed	124,193	209,870
Total delinquent mortgage loans	16,528,654	13,983,782
Bankruptcy	1,997,298	1,522,189
Custodial funds managed by the Company	9,994,745	4,003,986
Servicing rights owned
Mortgage servicing portfolio
Loans held for sale	4,323,252	2,420,636
Total loans serviced	227,866,932	204,635,718
Subserviced for the Company		414,219
Delinquent loans:
30 days	8,114,297	6,677,179
60 days	2,432,250	1,983,381
90 days or more - Not in foreclosure	3,043,663	3,102,492
90 days or more - In foreclosure	1,518,946	1,027,493
90 days or more - Foreclosed	13,372	33,493
Total delinquent mortgage loans	15,122,528	12,824,038
Bankruptcy	1,872,679	1,415,106
Custodial funds managed by the Company	6,976,614	3,033,658
Contract servicing and subservicing
Mortgage servicing portfolio
Total loans serviced	120,608,076	94,658,154
Delinquent loans:
30 days	879,366	525,989
60 days	147,325	113,238
90 days or more - Not in foreclosure	181,330	217,115
90 days or more - In foreclosure	87,284	127,025
90 days or more - Foreclosed	110,821	176,377
Total delinquent mortgage loans	1,406,126	1,159,744
Bankruptcy	124,619	107,083
Custodial funds managed by the Company	3,018,131	970,328
Non affiliated entities
Mortgage servicing portfolio
Originated	159,638,921	145,224,596
Purchased	63,904,759	56,990,486
Total loans serviced, excluding loans held for sale	223,543,680	202,215,082
Non affiliated entities | Servicing rights owned
Mortgage servicing portfolio
Originated	159,638,921	145,224,596
Purchased	63,904,759	56,990,486
Total loans serviced, excluding loans held for sale	223,543,680	202,215,082
Affiliated entities
Mortgage servicing portfolio
Advised entities	120,608,076	94,658,154
Affiliated entities | Contract servicing and subservicing
Mortgage servicing portfolio
Advised entities	$ 120,608,076	$ 94,658,154

Loan Sales and Servicing Acti_5

Loan Sales and Servicing Activities - Geographical Distribution of Loans (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Loan Sales and Servicing Activities
Total loans serviced	$ 348,475,008	$ 299,293,872
California
Loan Sales and Servicing Activities
Total loans serviced	55,400,197	51,377,441
Florida
Loan Sales and Servicing Activities
Total loans serviced	27,435,384	22,650,926
Texas
Loan Sales and Servicing Activities
Total loans serviced	26,509,926	23,648,042
Virginia
Loan Sales and Servicing Activities
Total loans serviced	21,056,414	19,011,950
Maryland
Loan Sales and Servicing Activities
Total loans serviced	15,968,754	13,774,011
All other states
Loan Sales and Servicing Activities
Total loans serviced	$ 202,104,333	$ 168,831,502

Fair Value - Financial Statemen

Fair Value - Financial Statement Items Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Assets:
Short-term investments at fair value	$ 90,663	$ 117,824
Loans held for sale	4,522,971	2,521,647
Derivative assets:
Derivative asset, before netting	198,391	123,316
Netting	34,557	(26,969)
Total derivative assets	232,948	96,347
Mortgage servicing rights at fair value	2,550,602	2,807,333
Derivative liabilities:
Derivative liability, before netting	88,359	28,146
Netting	(74,324)	(25,082)
Net amounts of liabilities presented in the consolidated balance sheet	14,035	3,064
Mortgage servicing liabilities	34,294	8,681
PMT
Derivative assets:
Investment in PennyMac Mortgage Investment Trust	1,667	1,397
Interest rate lock commitments
Derivative assets:
Total derivative assets	147,400	50,507
Forward contracts | Purchases
Derivative assets:
Derivative asset, before netting	17,943	35,916
Derivative liabilities:
Derivative liability, before netting	51,585	215
Forward contracts | Sales
Derivative assets:
Derivative asset, before netting	6,141	437
Derivative liabilities:
Derivative liability, before netting	34,498	26,762
MBS put options
Derivative assets:
Derivative asset, before netting	10,040	720
MBS call options
Derivative assets:
Derivative asset, before netting		2,135
Call options on interest rate futures | Purchases
Derivative assets:
Derivative asset, before netting	2,414	5,965
Put options on interest rate futures | Purchases
Derivative assets:
Derivative asset, before netting	6,266	866
Level 3 | Interest rate lock commitments
Assets:
Loans held for sale	145,124	49,338
Recurring basis
Assets:
Short-term investments at fair value	90,663	117,824
Loans held for sale	4,522,971	2,521,647
Derivative assets:
Derivative asset, before netting	198,391	123,316
Netting	34,557	(26,969)
Total derivative assets	232,948	96,347
Mortgage servicing rights at fair value	2,556,253	2,820,612
Total assets	7,404,502	5,557,827
Derivative liabilities:
Derivative liability, before netting	88,359	28,146
Netting	(74,324)	(25,082)
Net amounts of liabilities presented in the consolidated balance sheet	14,035	3,064
Mortgage servicing liabilities	34,294	8,681
Total liabilities	231,470	227,855
Recurring basis | PMT
Derivative assets:
Investment in PennyMac Mortgage Investment Trust	1,667	1,397
Derivative liabilities:
Excess servicing spread financing at fair value to affiliate	183,141	216,110
Recurring basis | Interest rate lock commitments
Derivative assets:
Derivative asset, before netting	147,400	50,507
Derivative liabilities:
Derivative liability, before netting	2,276	1,169
Recurring basis | Repurchase agreement derivatives
Derivative assets:
Derivative asset, before netting	8,187	26,770
Recurring basis | Forward contracts | Purchases
Derivative assets:
Derivative asset, before netting	17,943	35,916
Derivative liabilities:
Derivative liability, before netting	51,585	215
Recurring basis | Forward contracts | Sales
Derivative assets:
Derivative asset, before netting	6,141	437
Derivative liabilities:
Derivative liability, before netting	34,498	26,762
Recurring basis | MBS put options
Derivative assets:
Derivative asset, before netting	10,040	720
Recurring basis | MBS call options
Derivative assets:
Derivative asset, before netting		2,135
Recurring basis | Call options on interest rate futures | Purchases
Derivative assets:
Derivative asset, before netting	2,414	5,965
Recurring basis | Put options on interest rate futures | Purchases
Derivative assets:
Derivative asset, before netting	6,266	866
Recurring basis | Level 1
Assets:
Short-term investments at fair value	90,663	117,824
Derivative assets:
Derivative asset, before netting	8,680	6,831
Total derivative assets	8,680	6,831
Total assets	101,010	126,052
Recurring basis | Level 1 | PMT
Derivative assets:
Investment in PennyMac Mortgage Investment Trust	1,667	1,397
Recurring basis | Level 1 | Call options on interest rate futures | Purchases
Derivative assets:
Derivative asset, before netting	2,414	5,965
Recurring basis | Level 1 | Put options on interest rate futures | Purchases
Derivative assets:
Derivative asset, before netting	6,266	866
Recurring basis | Level 2
Assets:
Loans held for sale	4,437,954	2,261,639
Derivative assets:
Derivative asset, before netting	34,124	39,208
Total derivative assets	34,124	39,208
Total assets	4,472,078	2,300,847
Derivative liabilities:
Derivative liability, before netting	86,083	26,977
Net amounts of liabilities presented in the consolidated balance sheet	86,083	26,977
Total liabilities	86,083	26,977
Recurring basis | Level 2 | Forward contracts | Purchases
Derivative assets:
Derivative asset, before netting	17,943	35,916
Derivative liabilities:
Derivative liability, before netting	51,585	215
Recurring basis | Level 2 | Forward contracts | Sales
Derivative assets:
Derivative asset, before netting	6,141	437
Derivative liabilities:
Derivative liability, before netting	34,498	26,762
Recurring basis | Level 2 | MBS put options
Derivative assets:
Derivative asset, before netting	10,040	720
Recurring basis | Level 2 | MBS call options
Derivative assets:
Derivative asset, before netting		2,135
Recurring basis | Level 3
Assets:
Loans held for sale	85,017	260,008
Derivative assets:
Derivative asset, before netting	155,587	77,277
Total derivative assets	155,587	77,277
Mortgage servicing rights at fair value	2,556,253	2,820,612
Total assets	2,796,857	3,157,897
Derivative liabilities:
Derivative liability, before netting	2,276	1,169
Net amounts of liabilities presented in the consolidated balance sheet	2,276	1,169
Mortgage servicing liabilities	34,294	8,681
Total liabilities	219,711	225,960
Recurring basis | Level 3 | PMT
Derivative liabilities:
Excess servicing spread financing at fair value to affiliate	183,141	216,110
Recurring basis | Level 3 | Interest rate lock commitments
Derivative assets:
Derivative asset, before netting	147,400	50,507
Derivative liabilities:
Derivative liability, before netting	2,276	1,169
Recurring basis | Level 3 | Repurchase agreement derivatives
Derivative assets:
Derivative asset, before netting	$ 8,187	$ 26,770

Fair Value - Level 3 Input Roll

Fair Value - Level 3 Input Roll Forward, Recurring Basis (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 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			$ 27,133	$ 5,548
Excess servicing spread financing
Roll forward of liabilities measured using Level 3 inputs on a recurring basis
Balance at the beginning of the period	$ 194,156	$ 229,470	216,110	236,534
Accrual of interest on excess servicing spread financing	2,291	3,740	8,124	11,584
Repayment	(9,819)	(11,543)	(30,901)	(35,852)
Changes in fair value included in income	(3,864)	1,109	(11,519)	9,026
Balance at the end of the period	183,141	223,275	183,141	223,275
Recurring basis
Roll forward of assets measured using Level 3 inputs on a recurring basis
Balance at the beginning of the period	3,066,124	2,901,793	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				2,868,436
Purchases and issuances, net	2,062,591	1,226,797	4,155,778
Sales and repayments	(1,591,986)	(243,903)	(2,446,893)	(1,141,908)
Mortgage servicing rights resulting from loan sales	246,757	149,000	545,839	448,604
Changes in fair value included in income arising from:
Changes in instrument specific credit risk	4,252	84	(2,025)	(4,944)
Other factors	(318,655)	(2,235)	(790,362)	(6,688)
Total changes in fair value included in income	(314,403)	(2,151)	(792,387)	(11,632)
Transfers from mortgage loans held for sale from Level 3 to Level 2	(416,062)	(744,324)	(1,292,824)	(1,765,854)
Transfers to real estate acquired in settlement of loans	(376)	(1,364)	(2,420)	(4,185)
Transfers from interest rate lock commitments to loans held for sale	(258,064)	(70,943)	(529,240)	(150,131)
Balance at the end of the period	2,794,581	3,214,905	2,794,581	3,214,905
Changes in fair value recognized during the period relating to assets still held at the end of the period	(268,048)	19,648	(894,832)	55,535
Roll forward of liabilities measured using Level 3 inputs on a recurring basis
Balance at the beginning of the period	207,104	239,723	224,791	250,654
Issuances	377	499	1,327	1,983
Accrual of interest on excess servicing spread financing	2,291	3,740	8,124	11,584
Repayment	(9,819)	(11,543)	(30,901)	(35,852)
Mortgage servicing liabilities resulting from loan sales	19,501	1,741	27,133	5,548
Changes in fair value included in income	(2,019)	(1,116)	(13,039)	(873)
Balance at the end of the period	217,435	233,044	217,435	233,044
Changes in fair value recognized during the period relating to liability still outstanding at the end of the period	(2,019)	(1,116)	(13,039)	(873)
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	194,156	229,470	216,110	236,534
Issuances	377	499	1,327	1,983
Accrual of interest on excess servicing spread financing	2,291	3,740	8,124	11,584
Repayment	(9,819)	(11,543)	(30,901)	(35,852)
Changes in fair value included in income	(3,864)	1,109	(11,519)	9,026
Balance at the end of the period	183,141	223,275	183,141	223,275
Changes in fair value recognized during the period relating to liability still outstanding at the end of the period	(3,864)	1,109	(11,519)	9,026
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	12,948	10,253	8,681	14,120
Mortgage servicing liabilities resulting from loan sales	19,501	1,741	27,133	5,548
Changes in fair value included in income	1,845	(2,225)	(1,520)	(9,899)
Balance at the end of the period	34,294	9,769	34,294	9,769
Changes in fair value recognized during the period relating to liability still outstanding at the end of the period	1,845	(2,225)	(1,520)	(9,899)
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	217,998	334,166	260,008	782,211
Balance after reclassification					782,211
Purchases				2,480,523
Purchases and issuances, net	1,861,769	1,008,662	3,537,177
Sales and repayments	(1,582,564)	(231,921)	(2,414,899)	(1,122,448)
Changes in fair value included in income arising from:
Changes in instrument specific credit risk	4,252	84	(2,025)	(4,944)
Total changes in fair value included in income	4,252	84	(2,025)	(4,944)
Transfers from mortgage loans held for sale from Level 3 to Level 2	(416,062)	(744,324)	(1,292,824)	(1,765,854)
Transfers to real estate acquired in settlement of loans	(376)	(1,364)	(2,420)	(4,185)
Balance at the end of the period	85,017	365,303	85,017	365,303
Changes in fair value recognized during the period relating to assets still held at the end of the period	(2,328)	(4,811)	(2,478)	(4,912)
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	111,776	55,689	49,338	58,272
Balance after reclassification					58,272
Purchases				157,649
Purchases and issuances, net	199,274	41,721	376,137
Changes in fair value included in income arising from:
Other factors	92,138	10,696	248,889	(28,627)
Total changes in fair value included in income	92,138	10,696	248,889	(28,627)
Transfers from interest rate lock commitments to loans held for sale	(258,064)	(70,943)	(529,240)	(150,131)
Balance at the end of the period	145,124	37,163	145,124	37,163
Changes in fair value recognized during the period relating to assets still held at the end of the period	145,124	37,163	145,124	37,163
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	16,015	25,781	26,770	10,656
Balance after reclassification					10,656
Purchases				36,624
Purchases and issuances, net	1,502	12,903	15,019
Sales and repayments	(9,422)	(11,982)	(31,994)	(19,460)
Changes in fair value included in income arising from:
Other factors	92	(227)	(1,608)	(1,345)
Total changes in fair value included in income	92	(227)	(1,608)	(1,345)
Balance at the end of the period	8,187	26,475	8,187	26,475
Changes in fair value recognized during the period relating to assets still held at the end of the period	41		165
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	2,720,335	2,486,157	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				193,640
Purchases and issuances, net	46	163,511	227,445
Mortgage servicing rights resulting from loan sales	246,757	149,000	545,839	448,604
Changes in fair value included in income arising from:
Other factors	(410,885)	(12,704)	(1,037,643)	23,284
Total changes in fair value included in income	(410,885)	(12,704)	(1,037,643)	23,284
Balance at the end of the period	2,556,253	2,785,964	2,556,253	2,785,964
Changes in fair value recognized during the period relating to assets still held at the end of the period	$ (410,885)	$ (12,704)	$ (1,037,643)	$ 23,284

Fair Value - Changes in Fair Va

Fair Value - Changes in Fair Value, Fair Value Option, Recurring Basis (Details) - Recurring basis - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 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	$ 2,019	$ 1,116	$ 13,039	$ 873
Liabilities. | Net loan servicing fees
Net gains (losses) from changes in estimated fair values included in earnings for financial statement items carried at estimated fair value
Total gains (losses) from changes in estimated fair values included in earnings	2,019	1,116	13,039	873
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	3,864	(1,109)	11,519	(9,026)
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	3,864	(1,109)	11,519	(9,026)
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	(1,845)	2,225	1,520	9,899
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	(1,845)	2,225	1,520	9,899
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	(147,546)	55,005	(499,557)	141,736
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	263,339	67,709	538,086	118,452
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	(410,885)	(12,704)	(1,037,643)	23,284
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	263,339	67,709	538,086	118,452
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	263,339	67,709	538,086	118,452
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	(410,885)	(12,704)	(1,037,643)	23,284
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	$ (410,885)	$ (12,704)	$ (1,037,643)	$ 23,284

Fair Value - Fair Value Option

Fair Value - Fair Value Option Maturities, Recurring Basis (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Fair value
Total fair value	$ 4,522,971	$ 2,521,647
Recurring basis
Fair value
Total fair value	4,522,971	2,521,647
Loans held for sale | Recurring basis
Fair value
Current through 89 days delinquent	4,478,965	2,324,203
Not in foreclosure	20,972	143,631
In foreclosure	23,034	53,813
Total fair value	4,522,971	2,521,647
Principal amount due upon maturity
Current through 89 days delinquent	4,275,981	2,220,371
Not in foreclosure	22,145	144,011
In foreclosure	25,126	56,254
Total principal amount due upon maturity	4,323,252	2,420,636
Difference
Current through 89 days delinquent	202,984	103,832
Not in foreclosure	(1,173)	(380)
In foreclosure	(2,092)	(2,441)
Total difference	$ 199,719	$ 101,011

Fair Value - Measurement Basis,

Fair Value - Measurement Basis, Nonrecurring (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Total gains (losses) on assets measured at estimated fair values on a nonrecurring basis
Notes Payable	$ 1,293,625		$ 1,293,625		$ 1,292,291
Nonrecurring basis
Financial statement items measured at fair value on a nonrecurring basis
Real estate acquired in settlement of loans	8,575		8,575		2,150
Total gains (losses) on assets measured at estimated fair values on a nonrecurring basis
Real estate acquired in settlement of loans	139	$ (41)	162	$ (72)
Nonrecurring basis | Level 3
Financial statement items measured at fair value on a nonrecurring basis
Real estate acquired in settlement of loans	8,575		8,575		2,150
Fair Values
Total gains (losses) on assets measured at estimated fair values on a nonrecurring basis
Notes Payable	$ 1,306,828		$ 1,306,828		$ 1,285,894

Fair Value - Level 3 Unobservab

Fair Value - Level 3 Unobservable Inputs, Mortgage Loans and IRLC (Details) $ in Thousands	Sep. 30, 2019USD ($)item	Dec. 31, 2018USD ($)item
Excess servicing spread financing
Loans held for sale | $	$ 4,522,971	$ 2,521,647
Loans held for sale | Level 3
Excess servicing spread financing
Loans held for sale | $	$ 85,017	$ 260,008
Loans held for sale | Discount rate | Level 3 | Minimum
Excess servicing spread financing
Input	3.2	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	2.6	2.2
Loans held for sale | Twelve-month projected housing price index Change | Level 3 | Maximum
Excess servicing spread financing
Input	3.2	5
Loans held for sale | Twelve-month projected housing price index Change | Level 3 | Weighted average
Excess servicing spread financing
Input	2.9	3.5
Loans held for sale | Prepayment/resale speed | Level 3 | Minimum
Excess servicing spread financing
Input	0.3	0.1
Loans held for sale | Prepayment/resale speed | Level 3 | Maximum
Excess servicing spread financing
Input	19.2	21.8
Loans held for sale | Prepayment/resale speed | Level 3 | Weighted average
Excess servicing spread financing
Input	15.8	20.1
Loans held for sale | Total prepayment speed | Level 3 | Minimum
Excess servicing spread financing
Input	0.6	0.1
Loans held for sale | Total prepayment speed | Level 3 | Maximum
Excess servicing spread financing
Input	34.8	40.5
Loans held for sale | Total prepayment speed | Level 3 | Weighted average
Excess servicing spread financing
Input	29.6	37.7
Interest rate lock commitments | Level 3
Excess servicing spread financing
Loans held for sale | $	$ 145,124	$ 49,338
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	85.6	84.1
Interest rate lock commitments | Mortgage servicing rights value expressed as servicing fee multiple | Level 3 | Minimum
Excess servicing spread financing
Input	1.4	1.5
Interest rate lock commitments | Mortgage servicing rights value expressed as servicing fee multiple | Level 3 | Maximum
Excess servicing spread financing
Input	5.7	5.5
Interest rate lock commitments | Mortgage servicing rights value expressed as servicing fee multiple | Level 3 | Weighted average
Excess servicing spread financing
Input	4	3.8
Interest rate lock commitments | Percentage of unpaid principal balance | Level 3 | Minimum
Excess servicing spread financing
Input	0.3	0.4
Interest rate lock commitments | Percentage of unpaid principal balance | Level 3 | Maximum
Excess servicing spread financing
Input	2.9	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)	99.00%	97.00%

Fair Value - Level 3 Unobserv_2

Fair Value - Level 3 Unobservable Inputs, Mortgage Servicing Rights - Initial Recognition (Details)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2019USD ($)item	Sep. 30, 2018USD ($)item	Sep. 30, 2019USD ($)item	Sep. 30, 2018USD ($)item	Dec. 31, 2018USD ($)item
Mortgage servicing rights
Inputs
Amount recognized | $	$ 246,757,000	$ 149,000,000	$ 545,839,000	$ 448,604,000
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	8.5		8.5		8.7
Fair Values | Mortgage servicing rights | Annual total prepayment speed | Level 3 | Minimum
Inputs:
Input	9.8		9.8		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	15.6		15.6		9.9
Fair Values | Mortgage servicing rights | Life | Level 3 | Minimum
Inputs:
Input	1.4		1.4		1.5
Fair Values | Mortgage servicing rights | Life | Level 3 | Maximum
Inputs:
Input	7.2		7.2		7.9
Fair Values | Mortgage servicing rights | Life | Level 3 | Weighted average
Inputs:
Input	5.2		5.2		7.2
Fair Values | MSRs at the time of initial recognition, excluding MSR purchases | Level 3
Inputs
Amount recognized | $	$ 246,757,000	149,000,000
Unpaid principal balance of underlying loans | $	$ 15,709,249,000	$ 10,790,398,000
Weighted-average servicing fee rate (as a percent)	0.43%	0.37%
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	$ 92
Fair Values | MSRs at the time of initial recognition, excluding MSR purchases | Pricing spread | Level 3 | Minimum
Inputs:
Input	5.5	7.3	5.5	7.3
Fair Values | MSRs at the time of initial recognition, excluding MSR purchases | Pricing spread | Level 3 | Maximum
Inputs:
Input	16.2	13.6	16.2	13.6
Fair Values | MSRs at the time of initial recognition, excluding MSR purchases | Pricing spread | Level 3 | Weighted average
Inputs:
Input	8.3	10.1	8.3	10.1
Fair Values | MSRs at the time of initial recognition, excluding MSR purchases | Annual total prepayment speed | Level 3 | Minimum
Inputs:
Input	8.8	4.4	8.8	4.4
Fair Values | MSRs at the time of initial recognition, excluding MSR purchases | Annual total prepayment speed | Level 3 | Maximum
Inputs:
Input	32.1	55.7	32.1	55.7
Fair Values | MSRs at the time of initial recognition, excluding MSR purchases | Annual total prepayment speed | Level 3 | Weighted average
Inputs:
Input	15.7	11.8	15.7	11.8
Fair Values | MSRs at the time of initial recognition, excluding MSR purchases | Life | Level 3 | Minimum
Inputs:
Input	2.7	0.5	2.7	0.5
Fair Values | MSRs at the time of initial recognition, excluding MSR purchases | Life | Level 3 | Maximum
Inputs:
Input	7.5	11.3	7.5	11.3
Fair Values | MSRs at the time of initial recognition, excluding MSR purchases | Life | Level 3 | Weighted average
Inputs:
Input	5.5	6.9	5.5	6.9
Fair Values | Mortgage servicing rights | Level 3
Inputs
Amount recognized | $			$ 545,839,000,000	$ 448,604,000,000
Unpaid principal balance of underlying loans | $			$ 35,532,425,000	$ 32,095,458,000
Weighted-average servicing fee rate (as a percent)			4200.00%	3600.00%
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 | $			$ 97	$ 90
Fair Values | Mortgage servicing rights | Pricing spread | Level 3 | Minimum
Inputs:
Input	5.5	7.3	5.5	7.3
Fair Values | Mortgage servicing rights | Pricing spread | Level 3 | Maximum
Inputs:
Input	16.2	14.1	16.2	14.1
Fair Values | Mortgage servicing rights | Pricing spread | Level 3 | Weighted average
Inputs:
Input	8.6	10.2	8.6	10.2
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	15	10.6	15	10.6
Fair Values | Mortgage servicing rights | Life | Level 3 | Minimum
Inputs:
Input	2.6	0.5	2.6	0.5
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	5.8	7.5	5.8	7.5

Fair Value - Level 3 Unobserv_3

Fair Value - Level 3 Unobservable Inputs, Mortgage Servicing Rights, Effect of Change In Inputs on Fair Value (Details)	9 Months Ended	12 Months Ended
	Sep. 30, 2019USD ($)item	Dec. 31, 2018USD ($)item
MSR and pool characteristics
Carrying value	$ 2,556,253,000	$ 2,820,612,000
Mortgage servicing liabilities | Level 3
Prepayment speed
Annual per-loan cost of servicing	338	373
Fair Values | Mortgage servicing rights | Level 3
MSR and pool characteristics
Carrying value	2,556,253,000	2,820,612,000
Unpaid principal balance of underlying loans	$ 221,215,993,000	$ 201,054,144,000
Weighted-average note interest rate (as a percent)	4	4
Weighted-average servicing fee rate (as a percent)	0.34%	0.33%
Pricing spread
Effect on fair value of 5% adverse change	$ (35,830,000)	$ (45,268,000)
Effect on fair value of 10% adverse change	(70,578,000)	(89,073,000)
Effect on fair value of 20% adverse change	(137,016,000)	(172,556,000)
Prepayment speed
Effect on fair value of 5% adverse change	(64,047,000)	(47,687,000)
Effect on fair value of 10% adverse change	(124,892,000)	(93,626,000)
Effect on fair value of 20% adverse change	(237,822,000)	(180,623,000)
Annual per-loan cost of servicing
Effect on fair value of 5% adverse change	(21,731,000)	(22,944,000)
Effect on fair value of 10% adverse change	(43,462,000)	(45,888,000)
Effect on fair value of 20% adverse change	(86,925,000)	(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	8.5	8.7
Fair Values | Mortgage servicing rights | Annual total prepayment speed | Level 3 | Minimum
Inputs
Input | item	9.8	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	15.6	9.9
Fair Values | Mortgage servicing rights | Life | Level 3 | Minimum
Inputs
Input | item	1.4	1.5
Fair Values | Mortgage servicing rights | Life | Level 3 | Maximum
Inputs
Input | item	7.2	7.9
Fair Values | Mortgage servicing rights | Life | Level 3 | Weighted average
Inputs
Input | item	5.2	7.2

Fair Value - Level 3 Unobserv_4

Fair Value - Level 3 Unobservable Inputs, ESS (Details) - Excess servicing spread financing - Level 3 $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 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 | $	$ 183,141	$ 216,110
Unpaid principal balance of underlying mortgage loans | $	$ 20,794,571	$ 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	8.9	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	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	11.7	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	2.8	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	7.1	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	5.9	6.8

Fair Value - Level 3 Unobserv_5

Fair Value - Level 3 Unobservable Inputs, Mortgage Servicing Liabilities (Details)	9 Months Ended	12 Months Ended
	Sep. 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	$ 34,294,000	$ 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	34,294,000	8,681,000
Unpaid principal balance of underlying loans	$ 2,327,687,000	$ 1,160,938,000
Servicing fee rate (as a percent)	0.0025	0.0025
Annual per-loan cost of servicing	$ 338	$ 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	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	31.6	32.2
Mortgage servicing liabilities | Life | Level 3
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items]
Input | item	3.3	3.8

Loans Held for Sale at Fair V_3

Loans Held for Sale at Fair Value (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Mortgage Loans Held for Sale at Fair Value
Loans held for sale	$ 4,522,971	$ 2,521,647
Fair value of loans pledged to secure assets sold under agreements to repurchase	3,939,161	1,923,857
Fair value of loans pledged to secure mortgage loan participation and sale agreement	542,049	555,001
Pledged Assets Separately Reported, Loans Pledged as Collateral, at Fair Value, Total	4,481,210	2,478,858
Government-insured or guaranteed
Mortgage Loans Held for Sale at Fair Value
Loans held for sale	4,148,681	2,116,126
Conventional mortgage loans
Mortgage Loans Held for Sale at Fair Value
Loans held for sale	289,273	144,872
Jumbo Loan
Mortgage Loans Held for Sale at Fair Value
Loans held for sale		641
Home equity lines of credit
Mortgage Loans Held for Sale at Fair Value
Loans held for sale	14
Mortgage loans purchased from Ginnie Mae pools serviced by the entity
Mortgage Loans Held for Sale at Fair Value
Loans held for sale	76,105	250,585
Mortgage loans repurchased pursuant to representations and warranties
Mortgage Loans Held for Sale at Fair Value
Loans held for sale	$ 8,898	$ 9,423

Derivative Financial Instrume_3

Derivative Financial Instruments - Other Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Dec. 31, 2018
Derivative assets:
Derivative asset, before netting					$ 198,391	$ 123,316
Netting					34,557	(26,969)
Total derivative assets					232,948	96,347
Derivative liabilities:
Derivative liability, before netting					88,359	28,146
Netting					(74,324)	(25,082)
Net amounts of liabilities presented in the consolidated balance sheet					14,035	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	$ 92	$ (227)	$ (1,608)	$ (1,345)
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	(55,540)	10,820	(157,362)	100,422
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	250,146	(52,971)	587,883	(180,853)
Margin Deposits
Derivative assets:
Collateral placed with (received from) derivative counterparties					108,881	(1,887)
Interest rate lock commitments
Derivative assets:
Total derivative assets					147,400	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	33,347	(18,526)	95,785	(21,109)
Forward contracts | Purchases
Derivative Instruments
Notional amount	15,829,825		6,657,026		15,829,825	6,657,026
Derivative assets:
Derivative asset, before netting					17,943	35,916
Derivative liabilities:
Derivative liability, before netting					51,585	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	15,829,825		15,829,825
Forward contracts | Sales
Derivative Instruments
Notional amount	15,116,810		6,890,046		15,116,810	6,890,046
Derivative assets:
Derivative asset, before netting					6,141	437
Derivative liabilities:
Derivative liability, before netting					34,498	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	15,116,810		15,116,810
MBS put options
Derivative Instruments
Notional amount	10,050,000		4,635,000		10,050,000	4,635,000
Derivative assets:
Derivative asset, before netting					10,040	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	10,050,000		10,050,000
MBS call options
Derivative Instruments
Notional amount			1,450,000			1,450,000
Derivative assets:
Derivative asset, before netting						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
Put options on interest rate futures | Purchases
Derivative Instruments
Notional amount	4,350,000		3,085,000		4,350,000	3,085,000
Derivative assets:
Derivative asset, before netting					6,266	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	4,350,000		4,350,000
Call options on interest rate futures | Purchases
Derivative Instruments
Notional amount	600,000		1,512,500		600,000	1,512,500
Derivative assets:
Derivative asset, before netting					2,414	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	600,000		600,000
Treasury future | Purchases
Derivative Instruments
Notional amount	1,408,500		835,000		1,408,500	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	1,408,500		1,408,500
Treasury future | Sales
Derivative Instruments
Notional amount	1,132,500		1,450,000		1,132,500	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	1,132,500		1,132,500
Interest rate swap futures | Purchases
Derivative Instruments
Notional amount	3,910,000		625,000		3,910,000	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	3,910,000		3,910,000
Not designated as hedging instrument | Repurchase agreement derivatives
Derivative assets:
Derivative asset, before netting					8,187	26,770
Not designated as hedging instrument | Interest rate lock commitments
Derivative Instruments
Notional amount	8,311,786		2,805,400		8,311,786	2,805,400
Derivative assets:
Derivative asset, before netting					147,400	50,507
Derivative liabilities:
Derivative liability, before netting					2,276	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	8,311,786		8,311,786
Not designated as hedging instrument | Forward contracts | Purchases
Derivative Instruments
Notional amount	19,497,698	6,617,888	6,657,026	4,920,883	15,829,825	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	19,497,698	6,617,888	6,657,026	4,920,883
Additions	100,139,970	47,038,415	237,370,321	140,158,865
Dispositions/expirations	(103,807,843)	(46,540,682)	(228,197,522)	(137,964,127)
Balance at end of period	15,829,825	7,115,621	15,829,825	7,115,621
Not designated as hedging instrument | Forward contracts | Sales
Derivative Instruments
Notional amount	14,276,156	7,107,202	6,890,046	5,204,796	15,116,810	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	14,276,156	7,107,202	6,890,046	5,204,796
Additions	122,174,329	58,521,199	275,749,351	174,562,881
Dispositions/expirations	(121,333,675)	(58,917,204)	(267,522,587)	(173,056,480)
Balance at end of period	15,116,810	6,711,197	15,116,810	6,711,197
Not designated as hedging instrument | MBS put options
Derivative Instruments
Notional amount	12,775,000	2,675,000	4,635,000	4,925,000	10,050,000	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	12,775,000	2,675,000	4,635,000	4,925,000
Additions	29,575,000	8,375,000	77,185,000	17,250,000
Dispositions/expirations	(32,300,000)	(6,900,000)	(71,770,000)	(18,025,000)
Balance at end of period	10,050,000	4,150,000	10,050,000	4,150,000
Not designated as hedging instrument | MBS call options
Derivative Instruments
Notional amount	2,250,000	1,250,000	1,450,000	1,250,000		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	2,250,000		1,450,000
Additions		1,250,000	6,750,000	12,375,000
Dispositions/expirations	(2,250,000)		(8,200,000)	(11,125,000)
Balance at end of period		1,250,000		1,250,000
Not designated as hedging instrument | Put options on interest rate futures | Purchases
Derivative Instruments
Notional amount	2,835,000	1,852,500	3,085,000	2,125,000	4,350,000	3,085,000
Activity for derivative contracts used to hedge the IRLCs and inventory of mortgage loans at notional value
Balance at beginning of period	2,835,000	1,852,500	3,085,000	2,125,000
Additions	9,850,000	4,922,300	19,422,500	16,624,800
Dispositions/expirations	(8,335,000)	(4,549,800)	(18,157,500)	(16,524,800)
Balance at end of period	4,350,000	2,225,000	4,350,000	2,225,000
Not designated as hedging instrument | Put options on interest rate futures | Sales
Derivative Instruments
Notional amount		300,000		300,000
Activity for derivative contracts used to hedge the IRLCs and inventory of mortgage loans at notional value
Additions	8,335,000	4,849,800	27,297,800	16,824,800
Dispositions/expirations	(8,335,000)	(4,549,800)	(27,297,800)	(16,524,800)
Balance at end of period		300,000		300,000
Not designated as hedging instrument | Call options on interest rate futures | Purchases
Derivative Instruments
Notional amount	3,687,500	800,000	1,512,500	100,000	600,000	1,512,500
Activity for derivative contracts used to hedge the IRLCs and inventory of mortgage loans at notional value
Balance at beginning of period	3,687,500	800,000	1,512,500	100,000
Additions	1,750,000	950,000	13,127,800	2,400,000
Dispositions/expirations	(4,837,500)	(1,350,000)	(14,040,300)	(2,100,000)
Balance at end of period	600,000	400,000	600,000	400,000
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	4,837,500	1,350,000	4,837,500	2,100,000
Dispositions/expirations	(4,837,500)	(1,350,000)	(4,837,500)	(2,100,000)
Not designated as hedging instrument | Treasury future | Purchases
Derivative Instruments
Notional amount	486,100	835,000	835,000	100,000	1,408,500	835,000
Activity for derivative contracts used to hedge the IRLCs and inventory of mortgage loans at notional value
Balance at beginning of period	486,100	835,000	835,000	100,000
Additions	5,132,000	2,557,100	11,943,400	7,453,300
Dispositions/expirations	(4,209,600)	(2,557,100)	(11,369,900)	(6,718,300)
Balance at end of period	1,408,500	835,000	1,408,500	835,000
Not designated as hedging instrument | Treasury future | Sales
Derivative Instruments
Notional amount	1,550,000	1,450,000	1,450,000	1,450,000	1,132,500	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	1,550,000	1,450,000	1,450,000
Additions	3,792,100	2,557,100	11,052,400	8,829,600
Dispositions/expirations	(4,209,600)	(2,557,100)	(11,369,900)	(7,379,600)
Balance at end of period	1,132,500	1,450,000	1,132,500	1,450,000
Not designated as hedging instrument | Interest rate swap futures | Purchases
Derivative Instruments
Notional amount	2,900,000	465,000	625,000	1,400,000	$ 3,910,000	$ 625,000
Activity for derivative contracts used to hedge the IRLCs and inventory of mortgage loans at notional value
Balance at beginning of period	2,900,000	465,000	625,000	1,400,000
Additions	1,800,000	420,000	4,075,000	885,000
Dispositions/expirations	(790,000)	(885,000)	(790,000)	(2,285,000)
Balance at end of period	3,910,000		3,910,000
Not designated as hedging instrument | Interest rate swap futures | Sales
Derivative Instruments
Notional amount		625,000		625,000
Activity for derivative contracts used to hedge the IRLCs and inventory of mortgage loans at notional value
Additions	790,000	885,000	790,000	2,285,000
Dispositions/expirations	$ (790,000)	(260,000)	$ (790,000)	(1,660,000)
Balance at end of period		$ 625,000		$ 625,000

Derivative Financial Instrume_4

Derivative Financial Instruments - Offsetting of Derivative Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Derivatives not subject to master netting arrangements
Gross amounts of recognized assets	$ 155,587	$ 77,277
Derivatives subject to master netting arrangements:
Gross amounts of recognized assets	42,804	46,039
Gross amounts offset in the consolidated balance sheet	34,557	(26,969)
Net amounts of assets presented in the consolidated balance sheet	77,361	19,070
Total
Gross amounts of recognized assets	198,391	123,316
Net amounts of assets presented in the balance sheet	232,948	96,347
Interest rate lock commitments
Derivatives not subject to master netting arrangements
Gross amounts of recognized assets	147,400	50,507
Total
Net amounts of assets presented in the balance sheet	147,400	50,507
Repurchase agreement derivatives
Derivatives not subject to master netting arrangements
Gross amounts of recognized assets	8,187	26,770
MBS put options
Derivatives subject to master netting arrangements:
Gross amounts of recognized assets	10,040	720
Net amounts of assets presented in the consolidated balance sheet	10,040	720
Total
Gross amounts of recognized assets	10,040	720
MBS call options
Derivatives subject to master netting arrangements:
Gross amounts of recognized assets		2,135
Net amounts of assets presented in the consolidated balance sheet		2,135
Total
Gross amounts of recognized assets		2,135
Forward contracts | Purchases
Derivatives subject to master netting arrangements:
Gross amounts of recognized assets	17,943	35,916
Net amounts of assets presented in the consolidated balance sheet	17,943	35,916
Total
Gross amounts of recognized assets	17,943	35,916
Forward contracts | Sales
Derivatives subject to master netting arrangements:
Gross amounts of recognized assets	6,141	437
Net amounts of assets presented in the consolidated balance sheet	6,141	437
Total
Gross amounts of recognized assets	6,141	437
Put options on interest rate futures | Purchases
Derivatives subject to master netting arrangements:
Gross amounts of recognized assets	6,266	866
Net amounts of assets presented in the consolidated balance sheet	6,266	866
Total
Gross amounts of recognized assets	6,266	866
Call options on interest rate futures | Purchases
Derivatives subject to master netting arrangements:
Gross amounts of recognized assets	2,414	5,965
Net amounts of assets presented in the consolidated balance sheet	2,414	5,965
Total
Gross amounts of recognized assets	$ 2,414	$ 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	Sep. 30, 2019	Dec. 31, 2018
Total
Net amounts of assets presented in the balance sheet	$ 232,948	$ 96,347
Net amount	232,948	96,347
Deutsche Bank AG
Total
Net amounts of assets presented in the balance sheet	8,187	26,770
Net amount	8,187	26,770
RJ O'Brien
Total
Net amounts of assets presented in the balance sheet	8,680	6,831
Net amount	8,680	6,831
Wells Fargo Bank, N.A.
Total
Net amounts of assets presented in the balance sheet	5,728	3,707
Net amount	5,728	3,707
Bank of America, N.A.
Total
Net amounts of assets presented in the balance sheet		2,781
Net amount		2,781
Citibank, N.A.
Total
Net amounts of assets presented in the balance sheet	15,951	2,488
Net amount	15,951	2,488
JP Morgan
Total
Net amounts of assets presented in the balance sheet	32,450	1,399
Net amount	32,450	1,399
Goldman Sachs
Total
Net amounts of assets presented in the balance sheet	2,252
Net amount	2,252
Morgan Stanley Bank
Total
Net amounts of assets presented in the balance sheet	11,842
Net amount	11,842
Other
Total
Net amounts of assets presented in the balance sheet	458	1,864
Net amount	458	1,864
Interest rate lock commitments
Total
Net amounts of assets presented in the balance sheet	147,400	50,507
Net amount	$ 147,400	$ 50,507

Derivative Financial Instrume_6

Derivative Financial Instruments - Offsetting of Derivative Assets - Offsetting of Derivative and Financial Liabilities (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Derivatives: Subject to master netting arrangements:
Gross amounts of recognized liabilities	$ 86,083	$ 26,977
Netting	(74,324)	(25,082)
Net amounts of liabilities presented in the balance sheet	11,759	1,895
Total
Gross amounts of recognized liabilities	88,359	28,146
Net amounts of liabilities presented in the consolidated balance sheet	14,035	3,064
Mortgage loans sold under agreements to repurchase
Net amounts of liabilities presented in the consolidated balance sheet	3,539,459
Debt Issuance Costs
Debt issuance costs, gross	(570)	(1,341)
Debt issuance costs	(570)	(1,341)
Gross amounts of recognized liabilities	3,538,889	1,933,859
Net amount of liabilities in the consolidated balance sheet	3,538,889	1,933,859
Total
Gross amounts of recognized liabilities	3,627,248	1,962,005
Gross amounts offset in the consolidated balance sheet	(74,324)	(25,082)
Net amounts of liabilities presented in the consolidated balance sheet	3,553,494	1,938,264
Net amount of liabilities in the consolidated balance sheet	14,035	3,064
Receivable from Counterparties
Total
Net amounts of liabilities presented in the consolidated balance sheet	3,552,924	1,936,923
Assets sold under agreements to repurchase
Mortgage loans sold under agreements to repurchase
Gross amounts of recognized liabilities	3,539,459	1,935,200
Net amounts of liabilities presented in the consolidated balance sheet	3,539,459	1,935,200
Net amounts of liabilities presented in the consolidated balance sheet	3,539,459	1,935,200
Debt Issuance Costs
Debt issuance costs, gross	(570)	(1,341)
Net amount of liabilities in the consolidated balance sheet	3,538,889	1,933,859
Forward contracts | Purchases
Derivatives: Subject to master netting arrangements:
Gross amounts of recognized liabilities	51,585	215
Net amounts of liabilities presented in the balance sheet	51,585	215
Total
Gross amounts of recognized liabilities	51,585	215
Forward contracts | Sales
Derivatives: Subject to master netting arrangements:
Gross amounts of recognized liabilities	34,498	26,762
Net amounts of liabilities presented in the balance sheet	34,498	26,762
Total
Gross amounts of recognized liabilities	34,498	26,762
Interest rate lock commitments
Derivatives not subject to master netting arrangements
Gross amounts of recognized liabilities	2,276	1,169
Total
Net amounts of liabilities presented in the consolidated balance sheet	2,276	1,169
Net amount of liabilities in the consolidated balance sheet	$ 2,276	$ 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	Sep. 30, 2019	Dec. 31, 2018
Derivative liabilities:
Net amounts of liabilities presented in the consolidated balance sheet	$ 3,553,494	$ 1,938,264
Financial instruments	(3,539,459)	(1,935,200)
Net amount of liabilities in the consolidated balance sheet	14,035	3,064
Credit Suisse First Boston Mortgage Capital LLC
Derivative liabilities:
Net amounts of liabilities presented in the consolidated balance sheet	1,000,098	691,030
Financial instruments	(999,713)	(690,766)
Net amount of liabilities in the consolidated balance sheet	385	264
Bank of America, N.A.
Derivative liabilities:
Net amounts of liabilities presented in the consolidated balance sheet	506,553	170,820
Financial instruments	(497,335)	(170,820)
Net amount of liabilities in the consolidated balance sheet	9,218
Deutsche Bank AG
Derivative liabilities:
Net amounts of liabilities presented in the consolidated balance sheet		741,978
Financial instruments		(741,978)
Royal Bank of Canada
Derivative liabilities:
Net amounts of liabilities presented in the consolidated balance sheet	125,735	35,181
Financial instruments	(125,735)	(35,181)
JP Morgan
Derivative liabilities:
Net amounts of liabilities presented in the consolidated balance sheet	711,619	54,326
Financial instruments	(711,619)	(54,326)
Morgan Stanley Bank
Derivative liabilities:
Net amounts of liabilities presented in the consolidated balance sheet	551,027	77,687
Financial instruments	(551,027)	(77,687)
Citibank, N.A.
Derivative liabilities:
Net amounts of liabilities presented in the consolidated balance sheet	461,496	14,960
Financial instruments	(461,496)	(14,960)
Federal National Mortgage Association
Derivative liabilities:
Net amounts of liabilities presented in the consolidated balance sheet	685
Net amount of liabilities in the consolidated balance sheet	685
BNP Paribas
Derivative liabilities:
Net amounts of liabilities presented in the consolidated balance sheet	192,534	149,675
Financial instruments	(192,534)	(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	1,471	1,438
Net amount of liabilities in the consolidated balance sheet	1,471	1,438
Interest rate lock commitments
Derivative liabilities:
Net amounts of liabilities presented in the consolidated balance sheet	2,276	1,169
Net amount of liabilities in the consolidated balance sheet	$ 2,276	$ 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		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Jun. 30, 2019	Dec. 31, 2018	Jun. 30, 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	$ 2,550,602		2,550,602
Mortgage servicing rights
Activity in MSRs carried at fair value
Balance at beginning of period	2,720,335	$ 2,486,157	2,820,612	$ 638,010
Reclassification of mortgage servicing rights previously accounted for under the amortization method								$ 1,482,426
Balance after reclassification					$ 2,720,335	$ 2,820,612	$ 2,486,157	$ 2,120,436
Additions - Mortgage servicing rights resulting from loan sales	246,757	149,000	545,839	448,604
Additions - Purchases	46	163,511	227,445	193,640
Additions	246,803	312,511	773,284	642,244
Change in fair value:
Changes in inputs used in valuation model	(286,880)	64,293	(704,967)	239,538
Other changes in fair value	(124,005)	(76,997)	(332,676)	(216,254)
Total change in fair value	(410,885)	(12,704)	(1,037,643)	23,284
Balance at end of period	2,556,253	2,785,964	2,556,253	2,785,964
Total	$ 2,550,602	$ 2,807,333	$ 2,550,602	$ 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		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Amortized cost:
Mortgage servicing liabilities resulting from loan sales			$ 27,133	$ 5,548
Mortgage servicing liabilities
Amortized cost:
Balance at beginning of period	$ 12,948	$ 10,253	8,681	14,120
Mortgage servicing liabilities resulting from loan sales	19,501	1,741	27,133	5,548
Changes in valuation inputs used in valuation model	8,630	3,410	14,687	8,590
Other changes in fair value	(6,785)	(5,635)	(16,207)	(18,489)
Total change in fair value	1,845	(2,225)	(1,520)	(9,899)
Balance at end of period	$ 34,294	$ 9,769	$ 34,294	$ 9,769

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		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Contractual servicing fees	$ 185,967	$ 147,182	$ 533,510	$ 421,536
Ancillary and other fees
Other	26,018	17,009	74,043	44,817
Mortgage servicing rights
Contractual servicing fees	185,967	147,182	533,510	421,536
Ancillary and other fees
Late charges	12,430	5,087	31,258	19,595
Other	4,846	1,244	9,119	4,620
Bank Servicing Fees	$ 203,243	$ 153,513	$ 573,887	$ 445,751

Leases (Details)

Leases (Details) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2019USD ($)item	Sep. 30, 2019USD ($)item
Leases
Operating lease option to extend		true
Lease expenses:
Operating leases	$ 3,356	$ 9,817
Short-term leases	213	644
Sublease income	(35)	(94)
Total lease cost	3,534	10,367
Cash payments for operating leases	4,063	11,793
Upon adoption of ASU 2016-02		58,713
New leases	1,929	1,929
Right-of-use assets obtained in exchange for lease obligations	$ 1,929	$ 60,642
Remaining lease term (in year)	5 years 9 months 18 days	5 years 9 months 18 days
Discount rate (as a percent)	4.60%	4.60%
Operating lease liabilities
2020	$ 17,246	$ 17,246
2021	14,754	14,754
2022	12,170	12,170
2023	11,580	11,580
2024	9,123	9,123
Thereafter	17,628	17,628
Total lease payments	82,501	82,501
Less imputed interest	(10,341)	(10,341)
Total	$ 72,160	$ 72,160
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		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
During the period:
Total interest expense	$ 19,429	$ 4,676	$ 47,709	$ 15,943
Carrying value:
Unpaid principal balance	3,539,459		3,539,459
Unamortized debt issuance costs and premiums	(570)		(570)		$ (1,341)
Total loans sold under agreements to repurchase	3,538,889		3,538,889		1,933,859
Servicing advances	181,747		181,747		162,895
Assets sold under agreements to repurchase
During the period:
Average balance of mortgage loans sold under agreements to repurchase	$ 2,098,208	$ 1,563,053	$ 1,861,086	$ 1,618,008
Weighted-average interest rate (as a percent)	3.66%	3.91%	4.08%	3.72%
Total interest expense	$ 19,429	$ 4,676	$ 47,709	$ 15,943
Maximum daily amount outstanding	3,539,459	2,201,880	3,539,459	2,380,121
Carrying value:
Unpaid principal balance	3,539,459		3,539,459		1,935,200
Unamortized debt issuance costs and premiums	(570)		(570)		(1,341)
Total loans sold under agreements to repurchase	$ 3,538,889		$ 3,538,889		$ 1,933,859
Weighted average interest rate (as a percent)	3.53%		3.53%		4.22%
Available borrowing capacity committed	$ 2,665		$ 2,665		$ 695,767
Available borrowing capacity uncommitted	1,292,876		1,292,876		2,354,033
Available borrowing capacity	1,295,541		1,295,541		3,049,800
Margin deposits placed with counterparties	5,000		5,000		3,750
Amortization of premium	200	10,900	9,200	29,700
Amount of Master Repurchase Agreement incentives to refinance include in interest expense	1,600	$ 12,800	14,700	$ 35,500
Assets sold under agreements to repurchase | Loans held for sale
Carrying value:
Fair value of assets pledged to secure	3,939,161		3,939,161		1,923,857
Assets sold under agreements to repurchase | Mortgage servicing rights
Carrying value:
Fair value of assets pledged to secure	2,532,369		2,532,369		2,807,333
Assets sold under agreements to repurchase | Servicing advances
Carrying value:
Fair value of assets pledged to secure	181,747		181,747		162,895
Assets sold under agreements to repurchase | Financing receivable
Carrying value:
Fair value of assets pledged to secure	$ 107,678		$ 107,678		$ 131,025

Borrowings - Maturities of Outs

Borrowings - Maturities of Outstanding Advances Under Repurchase Agreements (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2019USD ($)
Mortgage loans sold under agreement to repurchase
Unpaid principal balance	$ 3,539,459
Weighted-average maturity (in months)	2 months 15 days
Within 30 days
Mortgage loans sold under agreement to repurchase
Unpaid principal balance	$ 276,113
Over 30 to 90 days
Mortgage loans sold under agreement to repurchase
Unpaid principal balance	3,041,052
Over 90 to 180 days
Mortgage loans sold under agreement to repurchase
Unpaid principal balance	122,294
Over 180 days to one year
Mortgage loans sold under agreement to repurchase
Unpaid principal balance	$ 100,000

Borrowings - Mortgage Loans Sol

Borrowings - Mortgage Loans Sold Under Agreement to Repurchase by Counterparty (Details) - Assets sold under agreements to repurchase $ in Thousands	Sep. 30, 2019USD ($)
Credit Suisse First Boston Mortgage Capital LLC Tranche Two
Mortgage loans sold under agreement to repurchase
Amount at risk	$ 1,313,083
Credit Suisse First Boston Mortgage Capital LLC Tranche One
Mortgage loans sold under agreement to repurchase
Amount at risk	231,656
Bank of America, N.A.
Mortgage loans sold under agreement to repurchase
Amount at risk	82,942
Morgan Stanley Bank
Mortgage loans sold under agreement to repurchase
Amount at risk	40,511
JP Morgan
Mortgage loans sold under agreement to repurchase
Amount at risk	79,142
BNP Paribas
Mortgage loans sold under agreement to repurchase
Amount at risk	12,363
Royal Bank of Canada
Mortgage loans sold under agreement to repurchase
Amount at risk	9,804
Citibank, N.A.
Mortgage loans sold under agreement to repurchase
Amount at risk	$ 41,279

Borrowings - Mortgage Loan Part

Borrowings - Mortgage Loan Participation and Sale Agreement (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
During the period:
Total interest expense	$ 2,304,000	$ 2,533,000	$ 7,034,000	$ 6,450,000
Carrying value:
Mortgage loan participation and sale agreement secured by mortgage loan participation certificates	514,625,000		514,625,000		$ 532,251,000
Fair value of loans pledged to secure	542,049,000		542,049,000		555,001,000
Mortgage Loan Participation and Sale Agreement member
During the period:
Average balance	$ 258,169,000	$ 289,008,000	$ 249,023,000	$ 250,599,000
Short-term Debt, Weighted Average Interest Rate, over Time	3.36%	3.31%	3.55%	3.14%
Total interest expense	$ 2,304,000	$ 2,533,000	$ 7,034,000	$ 6,450,000
Carrying value:
Unpaid principal balance of mortgage loan participation and sale agreement secured by mortgage loan participation certificates	514,625,000		514,625,000		532,466,000
Unamortized issuance costs					(215,000)
Mortgage loan participation and sale agreement secured by mortgage loan participation certificates	$ 514,625		$ 514,625		$ 532,251
Weighted average interest rate (as a percent)	3.27%		3.27%		3.77%
Fair value of loans pledged to secure	$ 542,049,000		$ 542,049,000		$ 555,001,000
Amortization of debt issuance costs	135,000	92,000	405,000	475,000
Maximum | Mortgage Loan Participation and Sale Agreement member
Carrying value:
Mortgage loan participation and sale agreement secured by mortgage loan participation certificates	$ 524,095,000	$ 722,611,000	$ 548,038,000	$ 722,611,000

Borrowings - Note Payable (Deta

Borrowings - Note Payable (Details) - USD ($)	Aug. 10, 2018	Feb. 28, 2018	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018	Nov. 01, 2018	Feb. 01, 2018
During the period:
Total interest expense			$ 17,525,000	$ 21,369,000	$ 53,559,000	$ 55,939,000
Carrying value:
Notes payable			1,293,625,000		1,293,625,000		$ 1,292,291,000
Notes payable
Repayments of notes payable						900,000,000
Note Payable
During the period:
Average balance			$ 1,300,000,000	$ 1,234,783,000	$ 1,300,000,000	$ 1,125,458,000
Weighted-average interest rate (as a percent)			5.11%	5.07%	5.21%	5.29%
Total interest expense			$ 17,525,000	$ 21,369,000	$ 53,559,000	$ 55,939,000
Maximum daily amount outstanding			1,300,000,000	1,300,000,000	1,300,000,000	1,300,000,000
Carrying value:
Unpaid principal balance			1,300,000,000		1,300,000,000		1,300,000,000
Unamortized issuance costs			(6,375,000)		(6,375,000)		(7,709,000)
Notes payable			$ 1,293,625,000		$ 1,293,625,000		$ 1,292,291,000
Weighted-average interest rate (as a percent)			4.90%		4.90%		5.07%
Unused amount			$ 150,000,000		$ 150,000,000		$ 150,000,000
Amortization of Financing Costs			900,000	2,000,000	2,700,000	2,800,000
Notes payable
Debt issuance costs				3,400,000		8,000,000
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			2,489,481,000		2,489,481,000		2,807,333,000
Note Payable | Cash.
Carrying value:
Assets pledged to secure			101,773,000		101,773,000		108,174,000
Note Payable | Servicing advances
Carrying value:
Assets pledged to secure			181,747,000		181,747,000		162,895,000
Mortgage Loan Participation and Sale Agreement member
During the period:
Average balance			258,169,000	289,008,000	249,023,000	250,599,000
Carrying value:
Unamortized issuance costs							$ (215,000)
Amortization of Financing Costs			$ 135,000	$ 92,000	$ 405,000	$ 475,000

Borrowings - Obligations Under

Borrowings - Obligations Under Capital Lease (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Leases
Average balance	$ 25,812	$ 11,615	$ 13,380	$ 15,187
Weighted average interest rate	4.47%	4.09%	4.48%	3.87%
Total interest expense	$ 274	$ 122	$ 476	$ 444
Unpaid principal balance	$ 23,881		$ 23,881		$ 6,605
Weighted average interest rate	4.45%		4.45%		4.46%
Furniture, fixtures, equipment and building improvements pledged to creditors	$ 22,172		$ 22,172		$ 16,281
Capitalized software pledged to creditors	14,090		14,090		$ 1,017
Maximum
Leases
Maximum daily amount outstanding	$ 28,295	$ 13,032	$ 28,295	$ 20,971

Borrowings - ESS (Details)

Borrowings - ESS (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
PMT
Issuances of excess servicing spread to PennyMac Mortgage Investment Trust:
Change in fair value	$ 3,864	$ (1,109)	$ 11,519	$ (9,026)
Excess servicing spread financing
Roll forward of liabilities measured using Level 3 inputs on a recurring basis
Balance at the beginning of the period	194,156	229,470	216,110	236,534
Issuances of excess servicing spread to PennyMac Mortgage Investment Trust:
Accrual of interest	2,291	3,740	8,124	11,584
Repayment	(9,819)	(11,543)	(30,901)	(35,852)
Change in fair value	(3,864)	1,109	(11,519)	9,026
Balance at the end of the period	183,141	223,275	183,141	223,275
Excess servicing spread financing | PMT
Issuances of excess servicing spread to PennyMac Mortgage Investment Trust:
Issuances	377	499	1,327	1,983
Change in fair value	$ 3,864	$ (1,109)	$ 11,519	$ (9,026)

Liability for Losses Under Re_3

Liability for Losses Under Representations and Warranties (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
During the year:
Balance at beginning of period	$ 18,709	$ 20,587	$ 21,155	$ 20,053
Provision for losses on loans sold resulting from sales of loans	2,508	1,842	5,222	4,550
Provision for losses on loans sold reduction in liability due to change in estimate	(1,175)	(1,155)	(6,305)	(3,627)
(Recoveries) incurred losses, net	(74)	(252)	(104)	46
Balance at end of period	19,968	21,022	19,968	21,022
Unpaid principal balance of loans subject to representations and warranties at end of quarter	$ 166,541,153	$ 139,315,779	$ 166,541,153	$ 139,315,779

Income Taxes - General (Details

Income Taxes - General (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 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)	26.90%	9.00%	26.30%	8.60%

Commitments and Contingencies (

Commitments and Contingencies (Details) $ in Billions	Sep. 30, 2019USD ($)
Commitments and Contingencies.
Total commitments to purchase and fund mortgage loans	$ 8.3

Stockholders' Equity (Details)

Stockholders' Equity (Details) - USD ($) shares in Thousands, $ in Thousands	9 Months Ended		28 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Jun. 30, 2017
Stockholders' Equity
Cost of shares of common stock repurchased	$ 1,056	$ 4,826
Common Stock
Stockholders' Equity
Authorized stock repurchase amount				$ 50,000
Shares of common stock repurchased	51	236	816
Cost of shares of common stock repurchased	$ 1,056	$ 4,826	$ 14,948

Noncontrolling Interest (Detail

Noncontrolling Interest (Details) - USD ($) shares in Thousands, $ in Thousands	Nov. 01, 2018	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Net income and the effects of changes in noncontrolling interest
Net income attributable to PennyMac Financial Services, Inc. common stockholders		$ 121,473	$ 14,489	$ 240,304	$ 48,945
Increase in the Company's additional paid-in capital for exchanges of Class A units of Private National Mortgage Acceptance Company, LLC to Class A common stock of PennyMac Financial Services, Inc.			$ 4,377		$ 32,501
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)			131		1,616
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.			$ (4,377)		$ (32,502)

Net Gains on Loans Held for S_3

Net Gains on Loans Held for Sale (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Cash loss:
Loans	$ (22,838)	$ (107,414)	$ (77,659)	$ (399,457)
Hedging activities	(148,128)	(2,507)	(230,200)	89,322
Cash gain (loss), net of effects of cash hedging, on sale of loans held for sale	(170,966)	(109,921)	(307,859)	(310,135)
Non-cash gain:
Mortgage servicing rights and mortgage servicing liabilities resulting from loan sales	227,256	147,259	518,706	443,056
Provision for losses relating to representations and warranties on loans sold pursuant to loan sales	(2,508)	(1,842)	(5,222)	(4,550)
Provision for losses relating to representations and warranties on loans sold reduction in liability due to change in estimate	1,175	1,155	6,305	3,627
Change in fair value relating to loans and derivatives held at year end:
Interest rate lock commitments	33,347	(18,526)	95,785	(21,109)
Loans	(5,822)	6,897	(35,508)	21,407
Hedging derivatives	92,588	13,327	72,838	11,100
From non-affiliates	175,070	38,349	345,045	143,396
Recapture payable to PennyMac Mortgage Investment Trust	60,662	18,565	122,996	45,878
Net gains on loans held for sale at fair value	$ 235,732	$ 56,914	$ 468,041	$ 189,274

Net Interest Income (Details)

Net Interest Income (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Interest income:
Cash and short-term investments	$ 2,894	$ 814	$ 7,533	$ 2,001
Loans held for sale at fair value	35,800	34,941	101,509	95,982
Placement fees relating to custodial funds	43,231	23,397	98,628	55,014
Interest income, excluding related parties	81,925	59,152	207,670	152,997
Interest income	83,452	60,964	212,685	158,683
Interest expense:
Assets sold under agreements to repurchase	19,429	4,676	47,709	15,943
Mortgage loan participation purchase and sale agreements	2,304	2,533	7,034	6,450
Notes payable	17,525	21,369	53,559	55,939
Obligations under capital lease	274	122	476	444
Interest shortfall on repayments of mortgage loans serviced for Agency securitizations	12,453	4,883	24,978	14,259
Interest on mortgage loan impound deposits	2,104	1,452	4,967	3,517
Interest expense, non-affiliates	54,089	35,035	138,723	96,552
Interest expense	56,380	38,775	146,847	108,136
Net interest income	27,072	22,189	65,838	50,547
PMT
Interest income:
From PennyMac Mortgage Investment Trust	1,527	1,812	5,015	5,686
Interest expense:
To PennyMac Mortgage Investment Trust Excess servicing spread financing at fair value	2,291	3,740	8,124	11,584
Assets sold under agreements to repurchase
Interest expense:
Assets sold under agreements to repurchase	19,429	4,676	47,709	15,943
Incentives recorded	$ 1,600	$ 12,800	$ 14,700	$ 35,500

Stock-based Compensation (Detai

Stock-based Compensation (Details) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Stock-Based Compensation
Grant date fair value	$ 102	$ 100	$ 25,865	$ 26,741
Stock-based compensation expense	$ 8,941	$ 8,532	$ 19,124	$ 20,766
Stock Options
Stock-Based Compensation
Granted (in units)			344	674
Grant date fair value			$ 2,965	$ 6,147
Exercised (in units)	127	55	245	285
Performance-based RSUs
Stock-Based Compensation
Granted (in units)			665	524
Grant date fair value			$ 15,253	$ 12,791
Vested (in units)			648	774
Time-based RSUs
Stock-Based Compensation
Granted (in units)	4	5	334	321
Grant date fair value	$ 102	$ 100	$ 7,647	$ 7,803
Vested (in units)	3	1	294	245

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	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Basic earnings per share of common stock:
Net income attributable to common stockholders		$ 121,473	$ 14,489	$ 240,304	$ 48,945
Weighted-average common stock outstanding		78,361	25,125	78,119	24,644
Basic earnings per share of common stock (in dollars per share)		$ 1.55	$ 0.58	$ 3.08	$ 1.99
Diluted earnings per share of common stock:
Net income attributable to common stockholders		$ 121,473	$ 14,489	$ 240,304	$ 48,945
Net income attributable to dilutive stock-based compensation units			552		2,435
Effect of net income attributable to noncontrolling interest, net of tax			29,580		101,921
Net income attributable to common stockholders for diluted earnings per share		$ 121,473	$ 44,621	$ 240,304	$ 153,301
Weighted-average common stock outstanding applicable to basic earnings per share		78,361	25,125	78,119	24,644
Effect of dilutive shares:
Common shares issuable under stock-based compensation plan		$ 2,021	$ 1,476	$ 1,702	$ 1,818
PennyMac Class A units exchangeable to common stock			52,312		52,492
Weighted-average shares of common stock outstanding applicable to diluted earnings per share		80,382	78,913	79,821	78,954
Diluted earnings per share of common stock (in dollars per share)		$ 1.51	$ 0.57	$ 3.01	$ 1.94
Total anti-dilutive shares and units		1,723	2,466	1,873	1,833
Performance-based RSUs
Effect of dilutive shares:
Total anti-dilutive shares and units		1,157	1,172	985	1,060
Stock Options
Effect of dilutive shares:
Total anti-dilutive shares and units		566	1,208	888	705
Weighted-average exercise price of anti-dilutive stock options		$ 23.50	$ 17.79	$ 23.98	$ 17.79
Time-based RSUs
Effect of dilutive shares:
Total anti-dilutive shares and units			86		68
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		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Cash paid for interest			$ 125,987	$ 123,622
Cash paid for income taxes (refunds received), net			5,761	(1,541)
Non-cash investing activity:
Mortgage servicing rights resulting from loan sales			545,839	448,604
Mortgage servicing liabilities resulting from loan sales			27,133	5,548
Unsettled portion of MSR acquisitions				13,501
Operating right-of-use assets recognized	$ 1,929		60,642
Non-cash financing activity:
Issuance of Excess servicing spread payable to PennyMac Mortgage Investment Trust pursuant to a recapture agreement			1,327	1,983
Issuance of Class A common stock and common stock in settlement of director fees	$ 48	$ 85	$ 184	$ 245

Regulatory Capital and Liquid_3

Regulatory Capital and Liquidity Requirements (Details) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2019	Dec. 31, 2015	Dec. 31, 2018
Fannie Mae / Freddie Mac - PLS
Regulatory Net Worth and Agency Capital Requirements
Net worth	$ 2,062,630,000		$ 1,788,430,000
Capital Requirement	572,167,000		514,089,000
Liquidity	282,056,000		271,802,000
Liquidity requirement	$ 78,240,000		$ 70,775,000
Tangible net worth / Total assets ratio actual	19.00%		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	$ 1,718,072,000		$ 1,535,826,000
Capital Requirement	852,256,000		733,342,000
Liquidity	282,056,000		271,802,000
Liquidity requirement	211,021,000		189,592,000
Ginnie Mae - PennyMac
Regulatory Net Worth and Agency Capital Requirements
Net worth	2,006,339,000		1,786,430,000
Capital Requirement	937,482,000		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	1,718,072,000		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		9 Months Ended
	Sep. 30, 2019USD ($)	Sep. 30, 2018USD ($)	Sep. 30, 2019USD ($)segment	Sep. 30, 2018USD ($)	Dec. 31, 2018USD ($)
Segments and Related Information
Number of segments | segment			3
Revenues:
Net gains on loans held for sale at fair value	$ 235,732	$ 56,914	$ 468,041	$ 189,274
Loan origination fees	49,434	26,485	110,288	75,476
Net loan servicing fees	66,229	109,703	205,934	340,181
Net interest income (expense):
Interest income	83,452	60,964	212,685	158,683
Interest expense, before non-segment activities	56,380	38,775	146,847	108,136
Net interest expense, before non-segment activities	27,072	22,189	65,838	50,547
Management fees	10,098	6,471	26,178	17,910
Other	2,633	2,928	8,437	7,646
Total net revenues, before non-segment activities	436,347	250,929	987,029	733,428
Expenses	270,150	189,232	660,951	524,037
Income before provision for income taxes	166,197	61,697	326,078	209,391
Assets:
Segment assets at year end	9,303,199	6,993,020	9,303,199	6,993,020	$ 7,478,573
PMT
Revenues:
Fulfillment fees from PennyMac Mortgage Investment Trust	45,149	26,256	102,313	52,759
Net interest income (expense):
Management fees	10,098	6,482	26,178	17,906
Assets:
Receivable	39,744		$ 39,744		$ 33,464
Investment Funds
Net interest income (expense):
Management fees		(11)		4
Carried Interest from Investment Funds		(17)		(365)
Mortgage banking
Segments and Related Information
Number of segments | segment			2
Operating segment
Assets:
Segment assets at year end	9,303,199	6,993,020	$ 9,303,199	6,993,020
Working capital		1,800		1,800
Receivable		2,300		2,300
Operating segment | Investment management
Net interest income (expense):
Interest income		16		16
Interest expense, before non-segment activities	21	10	39	41
Net interest expense, before non-segment activities	(21)	6	(39)	(25)
Management fees	10,098	6,471	26,178	17,910
Other	1,742	1,478	4,844	4,221
Total net revenues, before non-segment activities	11,819	7,938	30,983	21,741
Expenses	6,792	5,481	19,815	17,221
Income before provision for income taxes	5,027	2,457	11,168	4,520
Assets:
Segment assets at year end	19,281	11,996	19,281	11,996
Operating segment | Investment management | Investment Funds
Net interest income (expense):
Carried Interest from Investment Funds		(17)		(365)
Operating segment | Mortgage banking
Revenues:
Net gains on loans held for sale at fair value	235,732	56,914	468,041	189,274
Loan origination fees	49,434	26,485	110,288	75,476
Net loan servicing fees	66,229	109,703	205,934	340,181
Net interest income (expense):
Interest income	83,452	60,948	212,685	158,667
Interest expense, before non-segment activities	56,359	38,765	146,808	108,095
Net interest expense, before non-segment activities	27,093	22,183	65,877	50,572
Other	891	1,450	3,593	3,425
Total net revenues, before non-segment activities	424,528	242,991	956,046	711,687
Expenses	263,358	183,751	641,136	506,816
Income before provision for income taxes	161,170	59,240	314,910	204,871
Assets:
Segment assets at year end	9,283,918	6,981,024	9,283,918	6,981,024
Operating segment | Mortgage banking | PMT
Revenues:
Fulfillment fees from PennyMac Mortgage Investment Trust	45,149	26,256	102,313	52,759
Operating segment | Mortgage banking Production
Revenues:
Net gains on loans held for sale at fair value	216,132	34,947	407,713	105,111
Loan origination fees	49,434	26,485	110,288	75,476
Net interest income (expense):
Interest income	22,445	17,013	55,714	48,135
Interest expense, before non-segment activities	18,423	1,274	36,236	4,401
Net interest expense, before non-segment activities	4,022	15,739	19,478	43,734
Other	324	645	929	1,497
Total net revenues, before non-segment activities	315,061	104,072	640,721	278,577
Expenses	135,777	78,405	316,187	216,722
Income before provision for income taxes	179,284	25,667	324,534	61,855
Assets:
Segment assets at year end	4,850,741	2,168,126	4,850,741	2,168,126
Operating segment | Mortgage banking Production | PMT
Revenues:
Fulfillment fees from PennyMac Mortgage Investment Trust	45,149	26,256	102,313	52,759
Operating segment | Mortgage banking Servicing
Revenues:
Net gains on loans held for sale at fair value	19,600	21,967	60,328	84,163
Net loan servicing fees	66,229	109,703	205,934	340,181
Net interest income (expense):
Interest income	61,007	43,935	156,971	110,532
Interest expense, before non-segment activities	37,936	37,491	110,572	103,694
Net interest expense, before non-segment activities	23,071	6,444	46,399	6,838
Other	567	805	2,664	1,928
Total net revenues, before non-segment activities	109,467	138,919	315,325	433,110
Expenses	127,581	105,346	324,949	290,094
Income before provision for income taxes	(18,114)	33,573	(9,624)	143,016
Assets:
Segment assets at year end	$ 4,433,177	$ 4,812,898	$ 4,433,177	$ 4,812,898

Subsequent Events (Details)

Subsequent Events (Details)	Oct. 31, 2019$ / shares
Subsequent Event
Subsequent Event
Dividends declared (in dollars per share)	$ 0.12