PennyMac Financial Services (PFSI) 10-Q5 Aug 212021 Q2 Quarterly reportFinancial data

Company Profile

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Jun. 30, 2021	Aug. 03, 2021
Document and Entity Information
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2021
Document Transition Report	false
Entity File Number	001-38727
Entity Registrant Name	PennyMac Financial Services, Inc.
Entity Central Index Key	0001745916
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	83-1098934
Entity Address, Address Line One	3043 Townsgate Road
Entity Address, City or Town	Westlake Village
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	91361
City Area Code	818
Local Phone Number	224-7442
Title of 12(b) Security	Common Stock, $0.0001 par value
Trading Symbol	PFSI
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		62,055,841
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q2

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
ASSETS
Cash	$ 324,158	$ 532,716
Short-term investments at fair value	3,720	15,217
Loans held for sale at fair value (includes $10,451,126 and $11,457,678 pledged to creditors)	10,884,506	11,616,400
Derivative assets	371,269	711,238
Servicing advances, net (includes valuation allowance of $140,270 and $181,433; $311,896 and $413,484 pledged to creditors)	519,028	579,528
Mortgage servicing rights at fair value (includes $3,408,088 and $2,577,964 pledged to creditors)	3,412,648	2,581,174
Operating lease right-of-use assets	75,829	74,934
Loans eligible for repurchase	7,613,244	14,625,447
Other (includes $60,857 and $166,418 pledged to creditors)	612,273	692,169
Total assets	23,880,138	31,597,795
LIABILITIES
Assets sold under agreements to repurchase	8,254,543	9,654,797
Mortgage loans participation purchase and sale agreements	512,253	521,477
Obligations under capital lease	7,677	11,864
Notes payable secured by mortgage servicing assets	1,296,731	1,295,840
Unsecured senior notes	1,288,769	645,820
Derivative liabilities	43,910	42,638
Mortgage servicing liabilities at fair value	100,091	45,324
Accounts payable and accrued expenses	369,766	308,398
Operating lease liabilities	96,463	94,193
Income taxes payable	570,052	622,700
Liability for loans eligible for repurchase	7,613,244	14,625,447
Liability for losses under representations and warranties	44,335	32,688
Total liabilities	20,366,309	28,208,407
Commitments and contingencies - Note 16
STOCKHOLDERS' EQUITY
Additional paid-in capital	618,337	1,047,052
Retained earnings	2,895,486	2,342,329
Total stockholders' equity	3,513,829	3,389,388
Total liabilities and stockholders' equity	23,880,138	31,597,795
Common Stock
STOCKHOLDERS' EQUITY
Common stock - authorized 200,000,000 shares of $0.0001 par value; issued and outstanding, 64,483,965 and 70,905,532 shares respectively	6	7
PMT
ASSETS
Assets purchased from PennyMac Mortgage Investment Trust under agreements to resell pledged to creditors		80,862
Investment in PennyMac Mortgage Investment Trust at fair value	1,580	1,105
Receivable from PennyMac Investment Trust	61,883	87,005
LIABILITIES
Excess servicing spread financing payable to PennyMac Mortgage Investment Trust at fair value		131,750
Payable to PennyMac Mortgage Investment Trust	136,660	140,306
Private National Mortgage Acceptance Company, LLC
LIABILITIES
Payable to exchanged Private National Mortgage Acceptance Company, LLC unitholders under tax receivable agreement	$ 31,815	$ 35,165

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Mortgage loans held for sale, pledged to creditors	$ 10,451,126	$ 11,457,678
Servicing advances, net, valuation allowance	140,270	181,433
Servicing advances pledged to creditors	311,896	413,484
Mortgage servicing rights pledged to creditors	3,408,088	2,577,964
Other assets pledged to creditors	$ 60,857	$ 166,418
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	64,483,965	70,905,532
Common stock, shares outstanding	64,483,965	70,905,532

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Net gains on loans held for sale at fair value:
From non-affiliates	$ 594,196	$ 687,765	$ 1,362,785	$ 954,131
Net gains on loans held for sale at fair value	582,648	682,173	1,336,989	1,026,455
Loan origination fees from non-affiliates	90,163	54,660	186,008	108,251
Loan origination fees	97,291	58,948	201,328	116,519
Fulfillment fees from PennyMac Mortgage Investment Trust			114,855	94,755
Loan servicing fees
From non-affiliates	208,275	199,178	419,028	397,831
Other	31,731	28,543	61,330	57,298
Loan servicing fees	260,021	243,254	519,466	485,183
Change in fair value of mortgage servicing rights and mortgage servicing liabilities	336,268	205,789	112,805	1,241,002
Mortgage servicing rights hedging results	91,118	(15,764)	(351,033)	1,020,806
Change in fair value of excess servicing spread payable to PennyMac Mortgage Investment Trust	(245,150)	(220,917)	(464,875)	(205,038)
Net loan servicing fees	14,871	22,337	54,591	280,145
Interest income:
From non-affiliates	80,797	46,526	162,491	117,872
Interest income	80,797	47,318	162,878	119,882
Interest expense:
To non-affiliates	102,431	50,835	208,864	110,373
Interest expense	102,431	53,207	210,144	114,719
Net interest (expense) income	(21,634)	(5,889)	(47,266)	5,163
Management fees, net:
Management fees	11,913	8,288	20,362	17,343
Result of real estate acquired in settlement of loans	540	296	1,320	(411)
Other	2,459	2,123	4,214	3,804
Total net revenue	742,252	821,634	1,686,938	1,543,459
Expenses
Compensation	265,067	179,886	523,896	348,322
Loan origination	75,675	50,921	163,067	96,925
Technology	34,236	21,905	67,908	41,012
Servicing	31,290	56,503	50,473	98,669
Professional services	24,834	12,500	38,120	25,904
Occupancy and equipment	9,029	8,293	18,067	16,331
Other	22,606	11,264	39,884	21,204
Total expenses	462,737	341,272	901,415	648,367
Income before provision for income taxes	279,515	480,362	785,523	895,092
Provision for income taxes	75,286	127,685	204,426	236,172
Net income			581,097	658,920
Net income attributable to PennyMac Financial Services, Inc. common stockholders	$ 204,229	$ 352,677	$ 581,097	$ 658,920
Earnings per share
Basic (in dollars per share)	$ 3.10	$ 4.53	$ 8.61	$ 8.42
Diluted (in dollars per share)	$ 2.94	$ 4.39	$ 8.16	$ 8.11
Weighted-average shares outstanding
Basic (in shares)	65,890	77,790	67,493	78,240
Diluted (in shares)	69,399	80,424	71,248	81,241
Dividend declared per share (in dollars per share)	$ 0.20	$ 0.12	$ 0.40	$ 0.24
PMT
Net gains on loans held for sale at fair value:
From PennyMac Mortgage Investment Trust	$ (11,548)	$ (5,592)	$ (25,796)	$ 72,324
Loan origination fees from PennyMac Mortgage Investment Trust	7,128	4,288	15,320	8,268
Fulfillment fees from PennyMac Mortgage Investment Trust	54,020	52,815	114,855	94,755
Loan servicing fees
Loan servicing fees from affiliates	20,015	15,533	39,108	30,054
Changes in fair value included in income		636	(1,037)	15,158
Interest income:
From PennyMac Mortgage Investment Trust		792	387	2,010
Interest expense:
To PennyMac Mortgage Investment Trust		2,372	1,280	4,346
Management fees, net:
Management fees	11,913	8,288	20,362	17,343
Change in fair value of investment in and dividends received from affiliate	$ 144	$ 543	$ 545	$ (314)

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands	Common Stock.	Additional paid-in capital	Retained earnings	Common Stock	Total
Balance at Dec. 31, 2019	$ 8	$ 1,335,107	$ 726,392		$ 2,061,507
Balance (in shares) at Dec. 31, 2019	78,515
Changes in stockholders' equity
Net income			658,920		658,920
Stock and unit-based compensation		19,491			19,491
Stock and unit-based compensation (in shares)	1,053
Issuance of common stock in settlement of director fees		96			96
Issuance of common stock in settlement of director fees (in shares)	3
Repurchase of common stock	$ (1)	(241,282)		$ (241,283)	(241,283)
Repurchase of common stock (in shares)	(7,213)			(7,213)
Common stock dividends			(19,538)		(19,538)
Balance at Jun. 30, 2020	$ 7	1,113,412	1,365,774		2,479,193
Balance (in shares) at Jun. 30, 2020	72,358
Balance at Mar. 31, 2020	$ 8	1,341,219	1,022,902		2,364,129
Balance (in shares) at Mar. 31, 2020	79,190
Changes in stockholders' equity
Net income			352,677		352,677
Stock and unit-based compensation		9,306			9,306
Stock and unit-based compensation (in shares)	141
Issuance of common stock in settlement of directors' fees		48			48
Issuance of common stock in settlement of directors' fees (in shares)	2
Repurchase of common stock	$ (1)	(237,161)		$ (237,162)	(237,162)
Repurchase of common stock (in shares)	(6,975)			(6,975)
Common stock dividends			(9,805)		(9,805)
Balance at Jun. 30, 2020	$ 7	1,113,412	1,365,774		2,479,193
Balance (in shares) at Jun. 30, 2020	72,358
Balance at Dec. 31, 2020	$ 7	1,047,052	2,342,329		3,389,388
Balance (in shares) at Dec. 31, 2020	70,906
Changes in stockholders' equity
Net income			581,097		581,097
Stock and unit-based compensation		14,622			14,622
Stock and unit-based compensation (in shares)	803
Issuance of common stock in settlement of director fees		101			101
Issuance of common stock in settlement of director fees (in shares)	2
Repurchase of common stock	$ (1)	(443,438)		$ (443,439)	(443,439)
Repurchase of common stock (in shares)	(7,227)			(7,227)
Common stock dividends			(27,940)		(27,940)
Balance at Jun. 30, 2021	$ 6	618,337	2,895,486		3,513,829
Balance (in shares) at Jun. 30, 2021	64,484
Balance at Mar. 31, 2021	$ 7	762,585	2,704,822		3,467,414
Balance (in shares) at Mar. 31, 2021	66,961
Changes in stockholders' equity
Net income			204,229		204,229
Stock and unit-based compensation		10,621			10,621
Stock and unit-based compensation (in shares)	96
Issuance of common stock in settlement of director fees		50			50
Issuance of common stock in settlement of director fees (in shares)	1
Repurchase of common stock	$ (1)	(154,919)		$ (154,920)	(154,920)
Repurchase of common stock (in shares)	(2,574)			(2,574)
Common stock dividends			(13,565)		(13,565)
Balance at Jun. 30, 2021	$ 6	$ 618,337	$ 2,895,486		$ 3,513,829
Balance (in shares) at Jun. 30, 2021	64,484

CONSOLIDATED STATEMENTS OF CH_2

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
Common Stock dividends (in dollars per share)	$ 0.20	$ 0.12	$ 0.40	$ 0.24

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Cash flow from operating activities
Net income	$ 581,097	$ 658,920
Adjustments to reconcile net income to net cash used in operating activities:
Net gains on loans held for sale at fair value	(1,336,989)	(1,026,455)
Change in fair value of mortgage servicing rights, mortgage servicing liabilities and excess servicing spread	113,842	1,225,844
Mortgage servicing rights hedging gains	351,033	(1,020,806)
Capitalization of interest and advance on loans held for sale	(1,925)	(33,198)
Amortization debt issuance cost	13,977	5,565
Results of real estate acquired in settlement of loans	(1,320)	411
Stock based compensation expense	19,771	19,125
(Reversal of) Provision for servicing advance losses	(33,590)	34,061
Impairment of capitalized software	728
Depreciation and amortization	14,967	10,725
Amortization of right-to-use assets	6,918	6,017
Origination of loans held for sale	(27,731,285)	(11,820,127)
Purchase of loans held for sale from non-affiliates	(2,664,336)	(1,461,210)
Purchase of loans from Ginnie Mae securities and early buyout investors	(11,562,768)	(2,995,791)
Sale to non-affiliates and principal payments of loans held for sale	79,007,900	40,526,005
Repurchase of loans subject to representations and warranties	(43,914)	(34,518)
Sale of real estate acquired in settlement of loans	9,503	19,559
Decrease in servicing advances	12,543	2,411
Decrease (increase) in other assets	63,006	(132,288)
Increase in accounts payable and accrued expenses	61,121	39,792
Decrease in operating lease liabilities	(8,265)	(6,888)
Net cash used in operating activities	1,331,598	365,597
Cash flow from investing activities
Decrease in short-term investments	11,497	66,865
Net settlement of derivative financial instruments used for hedging of mortgage servicing rights	(345,621)	995,223
Purchase of mortgage servicing rights		(24,707)
Purchase of furniture, fixtures, equipment and leasehold improvements	(5,049)	(3,472)
Acquisition of capitalized software	(21,594)	(33,270)
Decrease (increase) in margin deposits	134,666	(31,913)
Net cash (used in) provided by investing activities	(145,239)	986,137
Cash flow from financing activities
Sale of assets under agreements to repurchase	69,437,269	39,561,048
Repurchase of assets sold under agreements to repurchase	(70,839,012)	(39,933,232)
Issuance of mortgage loan participation purchase and sale certificates	12,508,356	11,548,130
Repayment of mortgage loan participation purchase and sale certificates	(12,517,580)	(11,509,683)
Repayments of obligations under capital lease	(4,187)	(4,061)
Issuance of unsecured senior notes	650,000
Repayment of excess servicing spread financing	(134,624)	(17,430)
Payment of debt issuance costs	(18,648)	(14,240)
Issuance of common stock pursuant to exercise of stock options	3,397	5,631
Payment of withholding taxes relating to stock-based compensation	(8,546)	(5,265)
Payment of dividend to holders of common stock	(27,940)	(19,538)
Repurchase of common stock	(443,439)	(241,283)
Net cash used in financing activities	(1,394,954)	(629,923)
Net (decrease) increase in cash and restricted cash	(208,595)	721,811
Cash and restricted cash at beginning of period	532,781	188,578
Cash and restricted cash at end of period	324,186	910,389
Cash	324,158	910,257
Restricted cash included in Other assets	28	132
PMT
Adjustments to reconcile net income to net cash used in operating activities:
Accrual of interest on excess servicing spread financing payable to PennyMac Mortgage Investment Trust	1,280	4,346
Change in fair value of investment in common shares of PennyMac Mortgage Investment Trust	(475)	362
Purchase of loans held for sale from PennyMac Mortgage Investment Trust	(35,474,697)	(26,112,503)
Sale to Penny Mac Mortgage Investment Trust of loans held for sale		2,248,869
Decrease (increase) in receivable from affiliates	18,058	(171)
Decrease in payable to affiliate	(28,584)	(24,761)
Payments to exchanged Private National Mortgage Acceptance Company, LLC unitholders under tax receivable agreement	(3,350)
(Decrease) increase in income taxes payable	(52,648)	232,301
Cash flow from investing activities
Net change in assets purchased from PMT under agreement to resell	$ 80,862	$ 17,411

Organization

Organization	6 Months Ended
Organization	Jun. 30, 2021
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 loan production and servicing. PennyMac’s investment management activities and a portion of its loan servicing activities are conducted on behalf of PennyMac Mortgage Investment Trust (“PMT”), a publicly-traded real estate mortgage investment trust that invests primarily in mortgage-related assets. PennyMac’s primary wholly owned subsidiaries are: ● PennyMac Loan Services, LLC (“PLS”) — a Delaware limited liability company that services portfolios of residential mortgage loans on behalf of non-affiliates and PMT , purchases, originates and sells new prime credit quality residential mortgage loans and engages in other mortgage banking activities for its own account and the account of PMT. PLS is approved as a seller/servicer of mortgage loans by the Federal National Mortgage Association (“Fannie Mae”) and the Federal Home Loan Mortgage Corporation (“Freddie Mac”) and as an issuer of securities guaranteed by the Government National Mortgage Association (“Ginnie Mae”). PLS is a licensed Federal Housing Administration (“FHA”) Nonsupervised Title II Lender with the U.S. Department of Housing and Urban Development (“HUD”) and a lender/servicer with the Veterans Administration (“VA”) and U.S. Department of Agriculture (“USDA”) (each of the above an “Agency” and collectively the “Agencies”). ● PNMAC Capital Management, LLC (“PCM”)— a Delaware limited liability company registered with the Securities and Exchange Commission as an investment adviser under the Investment Advisers Act of 1940, as amended. PCM has an investment management agreement with PMT.

Basis of Presentation and Recen

Basis of Presentation and Recently Adopted Accounting Pronouncement	6 Months Ended
	Jun. 30, 2021
Basis of Presentation and Recently Adopted Accounting Pronouncement
Basis of Presentation and Recently Adopted Accounting Pronouncements	Note 2—Basis of Presentation and Recently Adopted Accounting Pronouncement 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 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 presented, but are not necessarily indicative of income to be anticipated for the full year ending December 31, 2021. 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.

Concentration of Risk

Concentration of Risk	6 Months Ended
Concentration of Risk	Jun. 30, 2021
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 origination and fulfillment fees, loan servicing 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 11% and 9% of total net revenue for the quarters ended June 30, 2021 and 2020, respectively, and 10% and 15% for the six months ended June 30, 2021 and 2020, respectively.

Related Party Transactions

Related Party Transactions	6 Months Ended
Related Party Transactions	Jun. 30, 2021
Related Party Transactions
Related Party Transactions	Note 4—Related Party Transactions 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. The Company has typically utilized the mortgage loan purchase agreement for the purpose of selling to PMT conforming balance non-government insured or guaranteed loans, as well as prime jumbo residential mortgage loans. Through June 30, 2020, pursuant to the terms of an MSR recapture agreement by and between the Company and PMT, if the Company refinanced mortgage loans for which PMT previously held the MSRs, the Company was 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. On June 30, 2020, the MSR recapture agreement was amended and restated for a term of five years (the “2020 MSR Recapture Agreement”). Effective July 1, 2020, the 2020 MSR Recapture Agreement changes the recapture fee payable by the Company to a tiered amount equal to: ● 40% of the fair market value of the MSRs relating to the recaptured loans subject to the first 15% of the “recapture rate”; ● 35% of the fair market value of the MSRs relating to the recaptured loans subject to the “recapture rate” in excess of 15% and up to 30% ; and ● 30% of the fair market value of the MSRs relating to the recaptured loans subject to the “recapture rate” in excess of 30% . The “recapture rate” means, during each month, the ratio of (i) the aggregate unpaid principal balance of all recaptured loans, to (ii) the aggregate unpaid principal balance of all mortgage loans for which the Company held the MSRs and that were refinanced or otherwise paid off in such month. The Company has also agreed to allocate sufficient resources to target a recapture rate of 15% . The Company provides PMT with certain mortgage banking services, including fulfillment and disposition-related services, for which it receives a monthly fulfillment fee. Through June 30, 2020, pursuant to the terms of a mortgage banking services agreement, the monthly fulfillment fee was an amount equal to: 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 was 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 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, through June 30, 2020, 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. While the Company purchases these mortgage loans “as is” and without recourse of any kind from PMT, where the Company has a claim for repurchase, indemnity or otherwise against a correspondent seller, it is entitled, at its sole expense, to pursue any such claim through or in the name of PMT. Effective July 1, 2020, the fulfillment fees and sourcing fees were revised as follows: ● Fulfillment fees shall not exceed the following: (i) the number of loan commitments multiplied by a pull-through factor of either .99 or .80 depending on whether the loan commitments are subject to a “mandatory trade confirmation” or a “best efforts lock confirmation”, respectively, and then multiplied by $585 for each pull-through adjusted loan commitment up to and including 16,500 per quarter and $355 for each pull-through adjusted loan commitment in excess of 16,500 per quarter, plus (ii) $315 multiplied by the number of purchased loans that are sold to Fannie Mae and Freddie Mac up to the and including 16,500 per quarter and $195 multiplied by the number of such purchased loans in excess of 16,500 per quarter, plus (iii) $750 multiplied by the number of all purchased loans that are sold or securitized to parties other than Fannie Mae and Freddie Mac; provided however, that no fulfillment fee shall be due or payable to PLS with respect to any Ginnie Mae loans. ● Sourcing fees charged to PLS range from one to two basis points, generally based on the average number of calendar days the loans are held by PMT before purchase by PLS. Following is a summary of loan production activities, including MSR recapture between the Company and PMT: Quarter ended June 30, Six months ended June 30, 2021 2020 2021 2020 (in thousands) Net gains on loans held for sale at fair value: Net gains on loans held for sale to PMT (primarily cash) $ — $ 70 $ — $ 81,294 Mortgage servicing rights and excess servicing spread recapture incurred (11,548) (5,662) (25,796) (8,970) $ (11,548) $ (5,592) $ (25,796) $ 72,324 Sale of loans held for sale to PMT $ — $ 2,742 $ — $ 2,248,869 Tax service fees earned from PMT included in Loan origination fees $ 7,128 $ 4,288 $ 15,320 $ 8,268 Fulfillment fee revenue $ 54,020 $ 52,815 $ 114,855 $ 94,755 Sourcing fees included in cost of loans purchased from PMT $ 1,630 $ 3,324 $ 3,368 $ 7,485 Unpaid principal balance of loans purchased from PMT $ 16,297,216 $ 11,080,565 $ 33,856,791 $ 24,950,845 Loan Servicing The Company and PMT have entered into a loan servicing agreement (the “Servicing Agreement”), 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. Prime Servicing ● The base servicing fees for non-distressed 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. ● To the extent that non-distressed loans become delinquent, the Company is entitled to an additional servicing fee per loan ranging from $10 to $55 per month based on the delinquency, bankruptcy and foreclosure status of the loan or $75 per month if the underlying mortgaged property becomes REO. The Company is also entitled to customary ancillary income and certain market-based fees and charges, including boarding and deboarding fees, liquidation and disposition fees, assumption, modification and origination fees. ● Effective July 1, 2020, the Company also receives certain fees for COVID-19-related forbearance and modification activities provided for under the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”). Special Servicing (Distressed loans) ● The base servicing fee rates for distressed loans range from $30 per month for current loans up to $95 per month for loans in foreclosure proceedings. The base servicing fee rate for REO is $75 per month. The Company also receives a supplemental servicing fee of $25 per month for each distressed loan. ● The Company receives activity-based fees for modifications, foreclosures and liquidations that it facilitates with respect to distressed loans, as well as other market-based refinancing and loan disposition fees. The Company may also receive REO rental fees, property lease renewal fees, property management fees, tenant paid application fees, late rent fees, and third-party vendor fees associated with its management of REO. Following is a summary of loan servicing fees earned from PMT: Quarter ended June 30, Six months ended June 30, 2021 2020 2021 2020 (in thousands) Loan type serviced: Loans acquired for sale at fair value $ 630 $ 607 $ 1,173 $ 1,143 Distressed loans 80 188 217 488 Mortgage servicing rights 19,305 14,738 37,718 28,423 $ 20,015 $ 15,533 $ 39,108 $ 30,054 On June 30, 2020, the Servicing Agreement was amended and restated for a term of five years (the “2020 Servicing Agreement”). The terms of the 2020 Servicing Agreement are substantially similar to those in the prior servicing agreement except that they now include fees relating to COVID-19 related forbearance and modification activities provided for under the CARES Act. Investment Management Activities The Company has a management agreement with PMT (“Management Agreement”), pursuant to which 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 PFSI 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. In the event of termination of the Management Agreement between PMT and the Company, the Company may be entitled to a termination fee in certain circumstances. The termination fee is equal to three times the sum of (a) the average annual base management fee, and (b) the average annual performance incentive fee earned by the Company, in each case during the 24-month period immediately preceding the date of termination. Following is a summary of the base management and performance incentive fees earned from PMT: Quarter ended June 30, Six months ended June 30, 2021 2020 2021 2020 (in thousands) Base management $ 8,648 $ 8,288 $ 17,097 $ 17,343 Performance incentive 3,265 — 3,265 — $ 11,913 $ 8,288 $ 20,362 $ 17,343 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 was reimbursed $120,000 per fiscal quarter through June 30, 2020. 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 are allocated based on the ratio of PMT’s proportion of gross assets compared to all remaining gross assets managed by the Company as calculated at each fiscal quarter end. On June 30, 2020, the Management Agreement was amended and restated for a term of five years (the “2020 Management Agreement”). The Company received reimbursements from PMT for expenses as follows: Quarter ended June 30, Six months ended June 30, 2021 2020 2021 2020 (in thousands) Reimbursement of: Common overhead incurred by the Company $ 1,268 $ 1,585 $ 1,839 $ 3,125 Compensation 165 120 330 240 Expenses incurred on PMT's behalf, net 7,804 1,438 9,140 2,709 $ 9,237 $ 3,143 $ 11,309 $ 6,074 Payments and settlements during the period (1) $ 74,441 $ 136,352 $ 187,182 $ 170,035 (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. 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 the first quarter of 2021, PLS repurchased the ESS from PMH at fair market value, effectively terminating the borrowing arrangements allowing PMH to finance its participation certificates representing beneficial ownership in ESS. Such ESS is now included in PLS's participation certificates representing beneficial ownership in ESS. The Company holds an investment in PMT in the form of 75,000 common shares of beneficial interest. Following is a summary of investing activities between the Company and PMT: Quarter ended June 30, Six months ended June 30, 2021 2020 2021 2020 (in thousands) Interest income relating to Assets purchased from PennyMac Mortgage Investment Trust under agreements to resell $ — $ 792 $ 387 $ 2,010 Change in fair value of investment in and dividends received from PennyMac Mortgage Investment Trust $ 144 $ 543 $ 545 $ (314) June 30, December 31, 2021 2020 (in thousands) Assets purchased from PennyMac Mortgage Investment Trust under agreements to resell $ — $ 80,862 Common shares of beneficial interest of PennyMac Mortgage Investment Trust: Fair value $ 1,580 $ 1,105 Number of shares 75 75 Financing Activities Spread Acquisition and MSR Servicing Agreements The Company has a master spread acquisition and MSR servicing agreement with PMT (the “Spread Acquisition Agreement”) which was amended and restated effective December 19, 2016, 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. During the quarter ended March 31, 2021, the Company repurchased ESS from PMT and repaid its outstanding ESS financing payable to PMT. Following is a summary of financing activities between the Company and PMT: Quarter ended Six months ended June 30, June 30, 2020 2021 2020 (in thousands) Excess servicing spread financing: Balance at beginning of period $ 157,109 $ 131,750 $ 178,586 Issuance pursuant to recapture agreement 483 557 862 Accrual of interest 2,372 1,280 4,346 Repayment (8,122) (134,624) (17,430) Change in fair value (636) 1,037 (15,158) Balance at end of period $ 151,206 $ — $ 151,206 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 $ 535 $ 614 $ 916 Receivable from and Payable to PMT Amounts receivable from and payable to PMT are summarized below: June 30, December 31, 2021 2020 (in thousands) Receivable from PMT: Allocated expenses and expenses incurred on PMT's behalf $ 17,002 $ 38,142 Fulfillment fees 16,467 20,873 Management fees 11,913 8,686 Correspondent production fees 9,764 13,065 Servicing fees 6,737 6,213 Interest on assets purchased under agreements to resell — 26 $ 61,883 $ 87,005 Payable to PMT: Amounts advanced by PMT to fund its servicing advances $ 117,444 $ 132,154 Other 19,216 8,152 $ 136,660 $ 140,306 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 a reorganization in November 2018 eliminated the potential for unitholders to exchange any additional units subject to this tax receivable agreement, the Company continues to be subject to the agreement and will be required to make payments, 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. The Company has recorded $31.8 million and $35.2 million, Payable to exchanged Private National Mortgage Acceptance Company, LLC unitholders under tax receivable agreement

Loan Sales and Servicing Activi

Loan Sales and Servicing Activities	6 Months Ended
Loan Sales and Servicing Activities	Jun. 30, 2021
Loan Sales and Servicing Activities
Loan Sales and Servicing Activities	Note 5—Loan Sales and Servicing Activities The Company, through PLS, originates or purchases and sells loans in the secondary mortgage market without recourse for credit losses. However, the Company maintains continuing involvement with the loans in the form of servicing arrangements and the liability under representations and warranties it makes to purchasers and insurers of the loans. The following table summarizes cash flows between the Company and transferees as a result of the sale of loans in transactions where the Company maintains continuing involvement with the loans as servicer: Quarter ended June 30, Six months ended June 30, 2021 2020 2021 2020 (in thousands) Cash flows: Sales proceeds $ 41,739,700 $ 21,188,988 $ 79,007,900 $ 40,526,005 Servicing fees received (1) $ 201,866 $ 158,871 $ 397,648 $ 325,427 (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 in the form of owned servicing obligations: June 30, December 31, 2021 2020 (in thousands) Unpaid principal balance of loans outstanding $ 227,560,336 $ 199,655,361 Delinquencies (1): 30-89 days $ 4,574,834 $ 6,041,366 90 days or more: Not in foreclosure $ 13,173,282 $ 17,799,621 In foreclosure $ 481,974 $ 581,683 Foreclosed $ 6,444 $ 10,893 Bankruptcy $ 1,201,936 $ 1,230,696 Delinquent loans in COVID-19 pandemic-related forbearance: 30-89 days $ 1,383,601 $ 2,626,617 90 days or more 9,019,414 12,181,174 $ 10,403,015 $ 14,807,791 (1) Includes delinquent loans in COVID-19 pandemic-related forbearance plans that were requested by borrowers seeking payment relief in accordance with the CARES Act. The following tables summarize the UPB of the Company’s loan servicing portfolio: June 30, 2021 Contract Servicing servicing and Total rights owned subservicing loans serviced (in thousands) Investor: Non-affiliated entities: Originated $ 227,560,336 $ — $ 227,560,336 Purchased 31,050,313 — 31,050,313 258,610,649 — 258,610,649 PennyMac Mortgage Investment Trust — 204,174,462 204,174,462 Loans held for sale 10,438,935 — 10,438,935 $ 269,049,584 $ 204,174,462 $ 473,224,046 Delinquent loans (1): 30 days $ 4,175,393 $ 708,701 $ 4,884,094 60 days 1,432,015 198,221 1,630,236 90 days or more: Not in foreclosure 15,364,421 2,988,774 18,353,195 In foreclosure 624,204 28,514 652,718 Foreclosed 7,191 21,557 28,748 $ 21,603,224 $ 3,945,767 $ 25,548,991 Bankruptcy $ 1,582,002 $ 149,224 $ 1,731,226 Delinquent loans in COVID-19 pandemic-related forbearance: 30 days $ 854,161 $ 140,175 $ 994,336 60 days 791,271 134,304 925,575 90 days or more 10,402,947 2,467,315 12,870,262 $ 12,048,379 $ 2,741,794 $ 14,790,173 Custodial funds managed by the Company $ 10,262,380 $ 4,937,986 $ 15,200,366 (1) Includes delinquent loans in COVID-19 related forbearance plans that were requested by borrowers seeking payment relief in accordance with the CARES Act. (2) Custodial funds include cash accounts holding funds on behalf of borrowers and investors relating to loans serviced under servicing agreements and are not recorded on the Company’s consolidated balance sheets. The Company earns placement fees on certain of the custodial funds it manages on behalf of the loans’ borrowers and investors, which are included in Interest income in the Company’s consolidated statements of income. December 31, 2020 Contract Servicing servicing and Total rights owned subservicing loans serviced (in thousands) Investor: Non-affiliated entities: Originated $ 199,655,361 $ — $ 199,655,361 Purchased 41,612,940 — 41,612,940 241,268,301 — 241,268,301 PennyMac Mortgage Investment Trust — 174,418,591 174,418,591 Loans held for sale 11,063,938 — 11,063,938 $ 252,332,239 $ 174,418,591 $ 426,750,830 Delinquent loans (1): 30 days $ 5,217,949 $ 901,965 $ 6,119,914 60 days 2,393,267 348,416 2,741,683 90 days or more: Not in foreclosure 21,781,226 4,473,217 26,254,443 In foreclosure 751,586 33,312 784,898 Foreclosed 12,938 37,131 50,069 $ 30,156,966 $ 5,794,041 $ 35,951,007 Bankruptcy $ 1,698,418 $ 153,179 $ 1,851,597 Delinquent loans in COVID-19 pandemic-related forbearance: 30 days $ 1,745,257 $ 334,498 $ 2,079,755 60 days 1,479,753 259,019 1,738,772 90 days or more 14,904,052 3,690,505 18,594,557 $ 18,129,062 $ 4,284,022 $ 22,413,084 Custodial funds managed by the Company $ 10,660,517 $ 6,086,725 $ 16,747,242 (1) Includes delinquent loans in COVID-19 related forbearance plans that were requested by borrowers seeking payment relief in accordance with the CARES Act. (2) Custodial funds include cash accounts holding funds on behalf of borrowers and investors relating to loans serviced under servicing agreements and are not recorded on the Company’s consolidated balance sheets. The Company earns placement fees on certain of the custodial funds it manages on behalf of the loans’ borrowers and investors, which are included in Interest income in the Company’s consolidated statements of income. Following is a summary of the geographical distribution of loans included in the Company’s loan servicing portfolio for the top five and all other states as measured by UPB: June 30, December 31, State 2021 2020 (in thousands) California $ 65,386,177 $ 60,591,363 Florida 39,712,103 35,360,190 Texas 38,627,464 34,591,419 Virginia 29,487,339 26,209,701 Maryland 22,372,406 19,974,809 All other states 277,638,557 250,023,348 $ 473,224,046 $ 426,750,830

Fair Value

Fair Value	6 Months Ended
Fair Value	Jun. 30, 2021
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 significant 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 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 Assets and Liabilities Measured at Fair Value on a Recurring Basis Following is a summary of assets and liabilities that are measured at fair value on a recurring basis: June 30, 2021 Level 1 Level 2 Level 3 Total (in thousands) Assets: Short-term investments $ 3,720 $ — $ — $ 3,720 Loans held for sale at fair value — 7,066,245 3,818,261 10,884,506 Derivative assets: Interest rate lock commitments — — 344,128 344,128 Forward purchase contracts — 55,765 — 55,765 Forward sales contracts — 39,597 — 39,597 MBS put options — 13,106 — 13,106 MBS call options — 687 — 687 Swaption purchase contracts — 11,041 — 11,041 Put options on interest rate futures purchase contracts 2,664 — — 2,664 Call options on interest rate futures purchase contracts 2,297 — — 2,297 Total derivative assets before netting 4,961 120,196 344,128 469,285 Netting — — — (98,016) Total derivative assets 4,961 120,196 344,128 371,269 Mortgage servicing rights at fair value — — 3,412,648 3,412,648 Investment in PennyMac Mortgage Investment Trust 1,580 — — 1,580 $ 10,261 $ 7,186,441 $ 7,575,037 $ 14,673,723 Liabilities: Derivative liabilities: Interest rate lock commitments $ — $ — $ 518 $ 518 Forward purchase contracts — 23,274 — 23,274 Forward sales contracts — 68,347 — 68,347 Total derivative liabilities before netting — 91,621 518 92,139 Netting — — — (48,229) Total derivative liabilities — 91,621 518 43,910 Mortgage servicing liabilities at fair value — — 100,091 100,091 $ — $ 91,621 $ 100,609 $ 144,001 December 31, 2020 Level 1 Level 2 Level 3 Total (in thousands) Assets: Short-term investments $ 15,217 $ — $ — $ 15,217 Loans held for sale at fair value — 6,941,231 4,675,169 11,616,400 Derivative assets: Interest rate lock commitments — — 679,961 679,961 Forward purchase contracts — 133,267 — 133,267 Forward sales contracts — 1,451 — 1,451 MBS put options — 14,302 — 14,302 Swaption purchase contracts — 11,939 — 11,939 Put options on interest rate futures purchase contracts 5,520 — — 5,520 Call options on interest rate futures purchase contracts 1,391 — — 1,391 Total derivative assets before netting 6,911 160,959 679,961 847,831 Netting — — — (136,593) Total derivative assets 6,911 160,959 679,961 711,238 Mortgage servicing rights at fair value — — 2,581,174 2,581,174 Investment in PennyMac Mortgage Investment Trust 1,105 — — 1,105 $ 23,233 $ 7,102,190 $ 7,936,304 $ 14,925,134 Liabilities: Excess servicing spread financing payable to PennyMac Mortgage Investment Trust at fair value $ — $ — $ 131,750 $ 131,750 Derivative liabilities: Interest rate lock commitments — — 2,935 2,935 Forward purchase contracts — 1,276 — 1,276 Forward sales contracts — 251,149 — 251,149 Total derivative liabilities before netting — 252,425 2,935 255,360 Netting — — — (212,722) Total derivative liabilities — 252,425 2,935 42,638 Mortgage servicing liabilities at fair value — — 45,324 45,324 $ — $ 252,425 $ 180,009 $ 219,712 As shown above, all or a portion of the Company’s loans held for sale, Interest Rate Lock Commitments (“IRLCs”), MSRs, ESS and MSLs are measured using Level 3 fair value inputs. Following are roll forwards of assets and liabilities measured at fair value using “Level 3” inputs at either the beginning or the end of the period presented: Quarter ended June 30, 2021 Net interest Mortgage Loans held rate lock servicing Assets for sale commitments (1) rights Total (in thousands) Balance, March 31, 2021 $ 5,202,065 $ 337,940 $ 3,268,910 $ 8,808,915 Purchases and issuances, net 6,828,094 351,934 — 7,180,028 Capitalization of interest and advances 60,439 — — 60,439 Sales and repayments (3,866,340) — — (3,866,340) Mortgage servicing rights resulting from loan sales — — 483,362 483,362 Changes in fair value included in income arising from: Changes in instrument-specific credit risk 179,792 — — 179,792 Other factors — 332,435 (339,624) (7,189) 179,792 332,435 (339,624) 172,603 Transfers from Level 3 to Level 2 (4,585,789) — — (4,585,789) Transfers to loans held for sale — (678,699) — (678,699) Balance, June 30, 2021 $ 3,818,261 $ 343,610 $ 3,412,648 $ 7,574,519 Changes in fair value recognized during the quarter relating to assets still held at June 30, 2021 $ 74,184 $ 343,610 $ (339,624) $ 78,170 (1) For the purpose of this table, the IRLC asset and liability positions are shown net. Quarter ended Liabilities June 30, 2021 (in thousands) Mortgage servicing liabilities: Balance, March 31, 2021 $ 46,026 Mortgage servicing liabilities resulting from loan sales 57,421 Changes in fair value included in income (3,356) Balance, June 30, 2021 $ 100,091 Changes in fair value recognized during the quarter relating to liabilities still outstanding at June 30, 2021 $ (3,356) Quarter ended June 30, 2020 Net interest Repurchase Mortgage Loans held rate lock agreement servicing Assets for sale commitments (1) derivatives rights Total (in thousands) Balance, March 31, 2020 $ 806,587 $ 315,194 $ 8,187 $ 2,193,697 $ 3,323,665 Purchases and issuances, net 288,856 496,149 — — 785,005 Capitalization of interest and advances 14,994 — — — 14,994 Sales and repayments (60,364) — — — (60,364) Mortgage servicing rights resulting from loan sales — — — 225,534 225,534 Changes in fair value included in income arising from: Changes in instrument-specific credit risk 1,132 — — — 1,132 Other factors — 297,198 — (205,692) 91,506 1,132 297,198 — (205,692) 92,638 Transfers from Level 3 to Level 2 (389,486) — — — (389,486) Transfers to loans held for sale — (740,477) — — (740,477) Balance, June 30, 2020 $ 661,719 $ 368,064 $ 8,187 $ 2,213,539 $ 3,251,509 Changes in fair value recognized during the quarter relating to assets still held at June 30, 2020 $ (717) $ 368,064 $ — $ (205,692) $ 161,655 (1) For the purpose of this table, the IRLC asset and liability positions are shown net. Quarter ended June 30, 2020 Excess servicing Mortgage spread servicing Liabilities financing liabilities Total (in thousands) Balance, March 31, 2020 $ 157,109 $ 29,761 $ 186,870 Issuance of excess servicing spread financing pursuant to a recapture agreement with PennyMac Mortgage Investment Trust 483 — 483 Accrual of interest 2,372 — 2,372 Repayments (8,122) — (8,122) Changes in fair value included in income (636) 97 (539) Balance, June 30, 2020 $ 151,206 $ 29,858 $ 181,064 Changes in fair value recognized during the quarter relating to liabilities still outstanding at June 30, 2020 $ (636) $ 97 $ (539) Six months ended June 30, 2021 Net interest Mortgage Loans held rate lock servicing Assets for sale commitments (1) rights Total (in thousands) Balance, December 31, 2020 $ 4,675,169 $ 677,026 $ 2,581,174 $ 7,933,369 Purchases and issuances, net 11,056,535 829,867 — 11,886,402 Capitalization of interest and advances 78,844 — — 78,844 Sales and repayments (4,795,241) — — (4,795,241) Mortgage servicing rights resulting from loan sales — — 953,895 953,895 Changes in fair value included in income arising from: Changes in instrument-specific credit risk 227,946 — — 227,946 Other factors — 152,822 (122,421) 30,401 227,946 152,822 (122,421) 258,347 Transfers from Level 3 to Level 2 (7,424,910) — — (7,424,910) Transfers to real estate acquired in settlement of loans (82) — — (82) Transfers to loans held for sale — (1,316,105) — (1,316,105) Balance, June 30, 2021 $ 3,818,261 $ 343,610 $ 3,412,648 $ 7,574,519 Changes in fair value recognized during the period relating to assets still held at June 30, 2021 $ 135,823 $ 343,610 $ (122,421) $ 357,012 (1) For the purpose of this table, the IRLC asset and liability positions are shown net. Six months ended June 30, 2021 Excess servicing Mortgage spread servicing Liabilities financing liabilities Total (in thousands) Balance, December 31, 2020 $ 131,750 $ 45,324 $ 177,074 Issuance of excess servicing spread financing pursuant to a recapture agreement with PennyMac Mortgage Investment Trust 557 — 557 Accrual of interest 1,280 — 1,280 Repayments (134,624) — (134,624) Mortgage servicing liabilities resulting from loan sales — 64,383 64,383 Changes in fair value included in income 1,037 (9,616) (8,579) Balance, June 30, 2021 $ — $ 100,091 $ 100,091 Changes in fair value recognized during the period relating to liabilities still outstanding at June 30, 2021 $ — $ (9,616) $ (9,616) Six months ended June 30, 2020 Net interest Repurchase Mortgage Loans held rate lock agreement servicing Assets for sale commitments (1) derivatives rights Total (in thousands) Balance, December 31, 2019 $ 383,878 $ 136,650 $ 8,187 $ 2,926,790 $ 3,455,505 Purchases and issuances, net 1,930,087 838,129 — 25,760 2,793,976 Capitalization of interest and advances 33,021 — — — 33,021 Sales and repayments (799,292) — — — (799,292) Mortgage servicing rights resulting from loan sales — — — 507,849 507,849 Changes in fair value included in income arising from: Changes in instrument-specific credit risk (6,391) — — — (6,391) Other factors — 497,116 — (1,246,860) (749,744) (6,391) 497,116 — (1,246,860) (756,135) Transfers from Level 3 to Level 2 (878,893) — — — (878,893) Transfers to real estate acquired in settlement of loans (691) — — — (691) Transfers of interest rate lock commitments to loans held for sale — (1,103,831) — — (1,103,831) Balance, June 30, 2020 $ 661,719 $ 368,064 $ 8,187 $ 2,213,539 $ 3,251,509 Changes in fair value recognized during the period relating to assets still held at June 30, 2020 $ (563) $ 368,064 $ — $ (1,246,860) $ (879,359) (1) For the purpose of this table, the IRLC asset and liability positions are shown net. Six months ended June 30, 2020 Excess servicing Mortgage spread servicing Liabilities financing liabilities Total (in thousands) Balance, December 31, 2019 $ 178,586 $ 29,140 $ 207,726 Issuance of excess servicing spread financing pursuant to a recapture agreement with PennyMac Mortgage Investment Trust 862 — 862 Accrual of interest 4,346 — 4,346 Repayments (17,430) — (17,430) Mortgage servicing liabilities resulting from loan sales — 6,576 6,576 Changes in fair value included in income (15,158) (5,858) (21,016) Balance, June 30, 2020 $ 151,206 $ 29,858 $ 181,064 Changes in fair value recognized during the period relating to liabilities still outstanding at June 30, 2020 $ (15,158) $ (5,858) $ (21,016) The Company had transfers among the fair value levels arising from the return to salability in the active secondary market of certain loans held for sale and from transfers of IRLCs to loans held for sale at fair value upon purchase or funding. Assets and Liabilities Measured at Fair Value under the Fair Value Option Net changes in fair values included in income for assets and liabilities carried at fair value as a result of management’s election of the fair value option by income statement line item are summarized below: Quarter ended June 30, 2021 2020 Net gains on Net Net gains on Net loans held loan loans held loan for sale at servicing for sale at servicing fair value fees Total fair value fees Total (in thousands) Assets: Loans held for sale $ 761,841 $ — $ 761,841 $ 739,797 $ — $ 739,797 Mortgage servicing rights — (339,624) (339,624) — (205,692) (205,692) $ 761,841 $ (339,624) $ 422,217 $ 739,797 $ (205,692) $ 534,105 Liabilities: Excess servicing spread financing payable to PennyMac Mortgage Investment Trust $ — $ — $ — $ — $ 636 $ 636 Mortgage servicing liabilities — 3,356 3,356 — (97) (97) $ — $ 3,356 $ 3,356 $ — $ 539 $ 539 Six months ended June 30, 2021 2020 Net gains on Net Net gains on Net loans held loan loans held loan for sale at servicing for sale at servicing fair value fees Total fair value fees Total (in thousands) Assets: Loans held for sale $ 1,411,960 $ — $ 1,411,960 $ 1,138,515 $ — $ 1,138,515 Mortgage servicing rights — (122,421) (122,421) — (1,246,860) (1,246,860) $ 1,411,960 $ (122,421) $ 1,289,539 $ 1,138,515 $ (1,246,860) $ (108,345) Liabilities: Excess servicing spread financing payable to PennyMac Mortgage Investment Trust $ — $ (1,037) $ (1,037) $ — $ 15,158 $ 15,158 Mortgage servicing liabilities — 9,616 9,616 — 5,858 5,858 $ — $ 8,579 $ 8,579 $ — $ 21,016 $ 21,016 Following are the fair value and related principal amounts due upon maturity of loans held for sale: June 30, 2021 December 31, 2020 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 $ 10,526,148 $ 10,079,813 $ 446,335 $ 11,304,308 $ 10,743,814 $ 560,494 90 days or more delinquent: Not in foreclosure 330,472 327,869 2,603 275,419 280,595 (5,176) In foreclosure 27,886 31,253 (3,367) 36,673 39,529 (2,856) $ 10,884,506 $ 10,438,935 $ 445,571 $ 11,616,400 $ 11,063,938 $ 552,462 Assets Measured at Fair Value on a Nonrecurring Basis Following is a summary of assets that were measured at fair value on a nonrecurring basis: Real estate acquired in settlement of loans Level 1 Level 2 Level 3 Total (in thousands) June 30, 2021 $ — $ — $ 2,863 $ 2,863 December 31, 2020 $ — $ — $ 1,450 $ 1,450 The following table summarizes the (losses) gains recognized on assets when they were remeasured at fair value on a nonrecurring basis: Quarter ended June 30, Six months ended June 30, 2021 2020 2021 2020 (in thousands) Real estate acquired in settlement of loans $ (434) $ (1,001) $ (743) $ (2,283) Fair Value of Financial Instruments Carried at Amortized Cost The Company’s Assets purchased from PennyMac Mortgage Investment Trust under agreements to resell pledged to creditors Assets sold under agreements to repurchase Mortgage loan participation purchase and sale agreements Obligations under capital lease, Notes payable secured by mortgage servicing assets Unsecured senior notes 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 2018-GTI Term Notes and 2018-GT2 Term Notes included in Notes payable secured by mortgage servicing assets Unsecured senior notes The Company estimates the fair value of the Notes payable secured by mortgage servicing assets Unsecured senior notes June 30, 2021 December 31, 2020 Fair value Carrying value Fair value Carrying value (in thousands) Notes payable secured by mortgage servicing assets $ 1,298,603 $ 1,296,731 $ 1,268,304 $ 1,295,840 Unsecured senior notes $ 1,309,750 $ 1,288,769 $ 685,750 $ 645,820 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 derivative liabilities and all of its MSRs, ESS, and MSLs are “Level 3” fair value assets and liabilities which require use of unobservable inputs that are significant to the estimation of the items’ fair values. Unobservable inputs reflect the Company’s own judgments about the factors that market participants use in pricing an asset or liability, and are based on the best information available under the circumstances. Due to the difficulty in estimating the fair values of “Level 3” fair value assets and liabilities, 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 chief operating, financial, investment and risk officers as well as other senior members of the Company’s finance, capital markets and risk management staffs. 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: ● 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 government guaranteed or insured loans arises as the result of the loan being at least three months delinquent on the date of purchase 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 loans may be resold to investors and thereafter may be repurchased to the extent eligible for resale into a new Ginnie Mae guaranteed security. Loans become eligible for resale into a new Ginnie Mae security when the loans become current either through completion of a modification of the loan’s terms or after six months of timely payments following either the completion of certain types of payment deferral programs or borrower reperformance and when the issuance date of the new security is at least 210 days after the date the loan was last delinquent. ● Loans 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 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: June 30, 2021 December 31, 2020 Fair value (in thousands) $ 3,818,261 $ 4,675,169 Key inputs (1): Discount rate: Range 2.0% – 9.2% 2.8% – 9.2% Weighted average 2.0% 2.8% Twelve-month projected housing price index change: Range 4.8% – 5.3% 2.7% – 3.5% Weighted average 5.1% 3.0% Voluntary prepayment/resale speed (2): Range 0.4% – 26.8% 0.4% – 31.3% Weighted average 22.0% 21.9% Total prepayment speed (3): Range 0.4% – 37.6% 0.5% – 42.9% Weighted average 28.8% 29.2% (1) Weighted average inputs are based on the fair value of the “Level 3” 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, which includes both voluntary and involuntary prepayment and resale rates. Changes in fair value of loans held for sale attributable to changes in the loan’s instrument-specific credit risk are measured with 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 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 estimated fair value of MSR attributable to the mortgage loans it has committed to purchase. Significant changes in the pull-through rate or the MSR component of the IRLCs, in isolation, could result in significant changes in the IRLCs’ fair value measurement. The financial effects of changes in these inputs are generally inversely correlated as increasing interest rates have a positive effect on the fair value of the MSR component of IRLC fair value, but increase the pull-through rate for the loan principal and interest payment cash flow component, which has decreased in fair value. Changes in fair value of IRLCs are included in Net gains on loans held for sale at fair value Following is a quantitative summary of key unobservable inputs used in the valuation of IRLCs: June 30, 2021 December 31, 2020 Fair value (in thousands) $ 343,610 $ 677,026 Key inputs Pull-through rate: Range 8.0% – 100% 10.1% – 100% Weighted average 82.7% 82.7% Mortgage servicing rights value expressed as: Servicing fee multiple: Range (14.7) – 6.5 0.7 – 5.3 Weighted average 3.6 3.6 Percentage of loan commitment amount Range (2.1)% – 3.1% 0.1% – 2.6% Weighted average 1.2% 1.2% (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 values of derivative financial instruments actively traded on exchanges are categorized by the Company as “Level 1” fair value assets and liabilities; fair values of derivative financial instruments based on observable interest rates, volatilities and prices in the MBS or other markets are categorized by the Company as “Level 2” fair value assets and liabilities. Changes in the fair value of hedging derivatives are included in Net gains on loans held for sale at fair value, Net loan servicing fees – Hedging results . 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 (prepayment speed), and annual per-loan cost to service the underlying 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 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 Following are the key inputs used in determining the fair value of MSRs received by the Company when it retains the obligation to service the mortgage loans it sells: Quarter ended June 30, Six months ended June 30, 2021 2020 2021 2020 (Amount recognized and unpaid principal balance of underlying loans in thousands) MSR and pool characteristics: Amount recognized $ 483,362 $ 225,534 $ 953,895 $ 507,849 Unpaid principal balance of underlying loans $ 36,830,098 $ 20,066,302 $ 71,773,352 $ 38,396,686 Weighted average servicing fee rate (in basis points) 33 36 33 38 Key inputs (1): Pricing spread (2): Range 6.0% – 16.9% 8.1% – 18.1% 6.0% – 16.9% 6.8% – 18.1% Weighted average 8.9% 9.9% 9.2% 9.1% Annual total prepayment speed (3): Range 6.7% – 17.7% 8.8% – 29.1% 6.2% – 16.7% 8.8% – 49.8% Weighted average 8.5% 13.0% 8.1% 13.7% Equivalent average life (in years): Range 4.0 – 8.8 2.9 – 8.1 4.1 – 9.0 1.5 – 8.1 Weighted average 8.1 6.3 8.3 6.1 Per-loan annual cost of servicing: Range $80 – $117 $79 – $110 $81 – $117 $77 – $110 Weighted average $104 $101 $104 $99 (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) Annual total prepayment speed is measured using Life Total CPR, which includes both voluntary and involuntary prepayments. Equivalent average life is provided for informational purposes. Following is a quantitative summary of key inputs used in the valuation of the Company’s MSRs and the effect on the fair value from adverse changes in those inputs: June 30, 2021 December 31, 2020 (Fair value, unpaid principal balance of underlying loans and effect on fair value amounts in thousands) Fair value $ 3,412,648 $ 2,581,174 Pool characteristics: Unpaid principal balance of underlying loans $ 252,475,400 $ 238,410,809 Weighted average note interest rate 3.3% 3.6% Weighted average servicing fee rate (in basis points) 34 35 Key inputs (1): Pricing spread

Loans Held for Sale at Fair Val

Loans Held for Sale at Fair Value	6 Months Ended
Loans Held for Sale at Fair Value	Jun. 30, 2021
Loans Held for Sale at Fair Value
Loans Held for Sale at Fair Value	Note 7—Loans Held for Sale at Fair Value Loans held for sale at fair value include the following: June 30, December 31, Loan type 2021 2020 (in thousands) Government-insured or guaranteed $ 5,115,678 $ 5,683,786 Conventional conforming 1,950,567 1,257,445 Purchased from Ginnie Mae pools serviced by the Company 3,789,022 4,661,378 Repurchased pursuant to representations and warranties 29,239 13,791 $ 10,884,506 $ 11,616,400 Fair value of loans pledged to secure: Assets sold under agreements to repurchase $ 9,917,262 $ 10,912,178 Mortgage loan participation purchase and sale agreements 533,864 545,500 $ 10,451,126 $ 11,457,678

Derivative Financial Instrument

Derivative Financial Instruments	6 Months Ended
Derivative Financial Instruments	Jun. 30, 2021
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 the Company’s loan production activities 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 loan production activities are IRLCs that are created when the Company commits to purchase or originate a loan for sale. The Company engages in interest rate risk management activities in an effort to moderate the effect of changes in market interest rates on the fair value of certain of the its assets. 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 its MSRs. 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: June 30, 2021 December 31, 2020 Fair value Fair value Notional Derivative Derivative Notional Derivative Derivative Instrument amount (1) assets liabilities amount (1) assets liabilities (in thousands) Not subject to master netting arrangements: Interest rate lock commitments 13,879,343 $ 344,128 $ 518 20,624,535 $ 679,961 $ 2,935 Used for hedging purposes (2): Forward purchase contracts 24,712,770 55,765 23,274 31,689,543 133,267 1,276 Forward sales contracts 37,785,066 39,597 68,347 50,438,967 1,451 251,149 MBS put options 11,450,000 13,106 — 12,025,000 14,302 — MBS call options 750,000 687 — — — — Swaption purchase contracts 5,455,000 11,041 — 3,375,000 11,939 — Put options on interest rate futures purchase contracts 3,450,000 2,664 — 4,750,000 5,520 — Call options on interest rate futures purchase contracts 350,000 2,297 — 850,000 1,391 — Treasury futures purchase contracts 705,000 — — 1,065,000 — — Treasury futures sale contracts 1,480,000 — — 1,555,000 — — Interest rate swap futures purchase contracts 4,040,000 — — 4,801,700 — — Interest rate swap futures sale contracts 250,000 — — 711,700 — — Total derivatives before netting 469,285 92,139 847,831 255,360 Netting (98,016) (48,229) (136,593) (212,722) $ 371,269 $ 43,910 $ 711,238 $ 42,638 Deposits (received from) placed with derivative counterparties, net $ (49,787) $ 76,129 (1) Notional amounts provide an indication of the volume of the Company’s derivative activity. (2) All of the derivatives used for hedging purposes are interest rate derivatives and are used as economic hedges. 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. Offsetting of Derivative Assets Following are summaries of derivative assets and related netting amounts: June 30, 2021 December 31, 2020 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 - IRLCs $ 344,128 $ — $ 344,128 $ 679,961 $ — $ 679,961 Derivatives subject to master netting arrangements: Forward purchase contracts 55,765 — 55,765 133,267 — 133,267 Forward sale contracts 39,597 — 39,597 1,451 — 1,451 MBS put options 13,106 — 13,106 14,302 — 14,302 MBS call options 687 — 687 — — — Swaption purchase contracts 11,041 — 11,041 11,939 — 11,939 Put options on interest rate futures purchase contracts 2,664 — 2,664 5,520 — 5,520 Call options on interest rate futures purchase contracts 2,297 — 2,297 1,391 — 1,391 Netting — (98,016) (98,016) — (136,593) (136,593) 125,157 (98,016) 27,141 167,870 (136,593) 31,277 $ 469,285 $ (98,016) $ 371,269 $ 847,831 $ (136,593) $ 711,238 Derivative Assets, Financial Instruments, and Cash Collateral Held by Counterparty The following table summarizes by significant counterparty the amount of derivative asset positions after considering master netting arrangements and financial instruments or cash pledged that do not meet the accounting guidance qualifying for netting. June 30, 2021 December 31, 2020 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 $ 344,128 $ — $ — $ 344,128 $ 679,961 $ — $ — $ 679,961 JPMorgan Chase Bank, N.A. 11,325 — — 11,325 17,149 — — 17,149 Bank of America, N.A. 5,972 — — 5,972 — — — — RJ O'Brien 4,961 — — 4,961 6,910 — — 6,910 Barclays Capital 3,166 — — 3,166 — — — — Morgan Stanley Bank, N.A. — — — — 2,443 — — 2,443 Citibank, N.A. — — — — 2,026 — — 2,026 Others 1,717 — — 1,717 2,749 — — 2,749 $ 371,269 $ — $ — $ 371,269 $ 711,238 $ — $ — $ 711,238 Offsetting of Derivative Liabilities and Financial Liabilities Following is a summary of net derivative liabilities and assets sold under agreements to repurchase and related netting amounts. Assets sold under agreements to repurchase do not qualify for netting. June 30, 2021 December 31, 2020 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 – $ 518 $ — $ 518 $ 2,935 $ — $ 2,935 Derivatives subject to a master netting arrangement: Forward purchase contracts 23,274 — 23,274 1,276 — 1,276 Forward sale contracts 68,347 — 68,347 251,149 — 251,149 Netting — (48,229) (48,229) — (212,722) (212,722) 91,621 (48,229) 43,392 252,425 (212,722) 39,703 Total derivatives 92,139 (48,229) 43,910 255,360 (212,722) 42,638 Assets sold under agreements to repurchase: Amount outstanding 8,262,251 — 8,262,251 9,663,995 — 9,663,995 Unamortized debt issuance cost (7,708) — (7,708) (9,198) — (9,198) 8,254,543 — 8,254,543 9,654,797 — 9,654,797 $ 8,346,682 $ (48,229) $ 8,298,453 $ 9,910,157 $ (212,722) $ 9,697,435 Derivative Liabilities, Financial Instruments, and Collateral Held by Counterparty The following table summarizes by significant counterparty the amount of derivative liabilities and assets sold under agreements to repurchase after considering master netting arrangements and financial instruments or cash pledged that do not qualify under the accounting guidance for netting. All assets sold under agreements to repurchase are secured by sufficient collateral or have fair value that exceeds the liability amount recorded on the consolidated balance sheets. June 30, 2021 December 31, 2020 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 $ 518 $ — $ — $ 518 $ 2,935 $ — $ — $ 2,935 JPMorgan Chase Bank, N.A. 2,214,762 (2,214,762) — — 2,752,279 (2,752,279) — — Credit Suisse First Boston Mortgage Capital LLC 1,873,730 (1,866,023) — 7,707 3,947,752 (3,943,149) — 4,603 Bank of America, N.A. 1,053,871 (1,053,871) — — 634,523 (626,550) — 7,973 Goldman Sachs 788,182 (788,182) — — — — — — Royal Bank of Canada 728,898 (728,898) — — 406,348 (406,348) — — BNP Paribas 372,377 (372,377) — — 337,823 (336,545) — 1,278 Morgan Stanley Bank, N.A. 353,729 (353,729) — — 331,546 (331,546) — — Barclays Capital 348,272 (348,272) — — 596,729 (596,729) — — Wells Fargo Bank, N.A. 349,852 (342,509) — 7,343 169,085 (165,224) — 3,861 Citibank, N.A. 204,515 (193,628) — 10,887 505,625 (505,625) — — Mizuho Securities 14,225 — — 14,225 6,491 — — 6,491 Federal Home Loan Mortgage Corporation — — — — 12,928 — — 12,928 Others 3,230 — — 3,230 2,569 — — 2,569 $ 8,306,161 $ (8,262,251) $ — $ 43,910 $ 9,706,633 $ (9,663,995) $ — $ 42,638 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 June 30, Six months ended June 30, Derivative activity Income statement line 2021 2020 2021 2020 (in thousands) Interest rate lock commitments Net gains on loans held for sale at fair value (1) $ 5,670 $ 52,871 $ (333,416) $ 231,414 Hedged item: Interest rate lock commitments and loans held for sale Net gains on loans held for sale at fair value $ (167,734) $ (101,115) $ 294,804 $ (326,672) Mortgage servicing rights Net loan servicing fees – $ 91,118 $ (15,764) $ (351,033) $ 1,020,806 (1) Represents net increase (decrease) in fair value of IRLCs from the beginning to the end of the period. Amounts recognized at the date of commitment and fair value changes recognized during the period until purchase of the underlying loans are shown in the rollforward of IRLCs for the period in Note 6 – Fair Value – Assets and Liabilities Measured at Fair Value on a Recurring Basis.

Mortgage Servicing Rights and M

Mortgage Servicing Rights and Mortgage Servicing Liabilities	6 Months Ended
	Jun. 30, 2021
Mortgage Servicing Rights and Mortgage Servicing Liabilities
Mortgage Servicing Rights and Mortgage Servicing Liabilities	Note 9—Mortgage Servicing Rights and Mortgage Servicing Liabilities Mortgage Servicing Rights at Fair Value The activity in MSRs is as follows: Quarter ended June 30, Six months ended June 30, 2021 2020 2021 2020 (in thousands) Balance at beginning of period $ 3,268,910 $ 2,193,697 $ 2,581,174 $ 2,926,790 Additions: Resulting from loan sales 483,362 225,534 953,895 507,849 Purchases — — — 25,760 483,362 225,534 953,895 533,609 Change in fair value due to: Changes in valuation inputs used in valuation model (1) (239,514) (98,681) 73,376 (1,014,543) Other changes in fair value (2) (100,110) (107,011) (195,797) (232,317) Total change in fair value (339,624) (205,692) (122,421) (1,246,860) Balance at end of period $ 3,412,648 $ 2,213,539 $ 3,412,648 $ 2,213,539 June 30, December 31, 2021 2020 (in thousands) Fair value of mortgage servicing rights pledged to secure Assets sold under agreements to repurchase Notes payable secured by mortgage servicing assets $ 3,408,088 $ 2,577,964 (1) Principally reflects changes in discount rate, prepayment speed and servicing cost inputs. (2) Represents changes due to realization of cash flows. Mortgage Servicing Liabilities at Fair Value The activity in MSLs is summarized below: Quarter ended June 30, Six months ended June 30, 2021 2020 2021 2020 (in thousands) Balance at beginning of period $ 46,026 $ 29,761 $ 45,324 $ 29,140 Mortgage servicing liabilities resulting from loan sales 57,421 — 64,383 6,576 Changes in fair value due to: Changes in valuation inputs used in valuation model (1) 11,083 9,673 17,847 14,105 Other changes in fair value (2) (14,439) (9,576) (27,463) (19,963) Total change in fair value (3,356) 97 (9,616) (5,858) Balance at end of period $ 100,091 $ 29,858 $ 100,091 $ 29,858 (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 Net loan servicing fees—Loan servicing fees—Other Quarter ended June 30, Six months ended June 30, 2021 2020 2021 2020 (in thousands) Contractual servicing fees $ 208,275 $ 199,178 $ 419,028 $ 397,831 Other fees: Late charges 6,665 8,490 14,596 21,103 Other 7,768 5,971 15,622 10,821 $ 222,708 $ 213,639 $ 449,246 $ 429,755

Leases

Leases	6 Months Ended
Leases	Jun. 30, 2021
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 the 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 June 30, Six months ended June 30, 2021 2020 2021 2020 (dollars in thousands) Lease expense: Operating leases $ 4,508 $ 4,034 $ 8,874 $ 7,966 Short-term leases 420 224 470 480 Net lease expense included in Occupancy and equipment $ 4,928 $ 4,258 $ 9,344 $ 8,446 Other information: Payments for operating leases $ 5,149 $ 4,354 $ 10,185 $ 8,794 Operating lease right-of-use assets $ 4,570 $ 4,964 $ 7,813 $ 6,498 Period end weighted averages: Remaining lease term (in years) 5.9 6.6 Discount rate 4.1% 4.2% Lease payments of the Company’s operating lease liabilities are summarized below: Twelve months ended June 30, Operating leases (in thousands) 2022 $ 19,401 2023 18,968 2024 17,503 2025 15,929 2026 14,324 Thereafter 20,945 Total lease payments 107,070 Less imputed interest (10,607) Operating lease liability $ 96,463

Other Assets

Other Assets	6 Months Ended
Other Assets	Jun. 30, 2021
Other Asset
Other Assets	Note 11—Other Assets Other June 30, December 31, 2021 2020 (in thousands) Margin deposits $ 103,863 $ 116,881 Capitalized software, net 91,712 81,434 Prepaid expenses 57,800 53,975 Deposits securing Assets sold under agreements to repurchase Notes payable secured by mortgage servicing assets 49,934 153,054 Net servicing fee receivables 31,012 42,282 Furniture, fixture, equipment and building improvements, net 32,887 32,217 Real estate acquired in settlement of loans 8,548 12,158 Other 236,517 200,168 $ 612,273 $ 692,169 Deposits pledged to secure Assets sold under agreements to repurchase Notes payable secured by mortgage servicing assets $ 49,934 $ 153,054 Assets pledged to secure Obligations under capital lease Capitalized software, net 6,024 7,675 Furniture, fixture, equipment and building improvements, net 4,899 5,689 $ 60,857 $ 166,418

Short-Term Borrowings

Short-Term Borrowings	6 Months Ended
Short-Term Borrowings	Jun. 30, 2021
Short-Term Borrowings
Short-Term Borrowings	Note 12—Short-Term Borrowings The borrowing facilities described throughout these Notes 12 and 13 contain various covenants, including financial covenants governing the Company’s net worth, debt-to-equity ratio, profitability and liquidity. Management believes that the Company was in compliance with these covenants as of June 30, 2021. 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, assets purchased from PMT under agreements to resell or participation certificates backed by mortgage servicing assets. Eligible assets 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 LIBOR. Loans and MSRs financed under these agreements may be re-pledged by the lenders. Fannie Mae MSR Facility On April 28, 2021, the Company, through PLS, PennyMac, and PFSI Issuer Trust - FMSR, entered into a structured finance transaction, allowing PLS to finance Fannie Mae MSRs and ESS (the “Fannie Mae MSR Facility”). In connection with the Fannie Mae MSR Facility, PLS pledges and/or sells to PFSI Issuer Trust - FMSR participation certificates representing beneficial interests in MSRs and ESS pursuant to the terms of a master repurchase agreement, dated as of April 28, 2021, by and between PLS, PFSI Issuer Trust - FMSR and PennyMac (the “PC Repurchase Agreement”). In return, PFSI Issuer Trust - FMSR (a) has issued to PLS the Series 2021-MSRVF1 Note, dated April 28, 2021, known as the “PFSI ISSUER TRUST - FMSR Collateralized Notes, Series 2021-MSRVF1” (the “FMSR VFN”), and (b) may, from time to time, issue to institutional investors 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 FMSR VFN is Under the PC Repurchase Agreement, PLS grants to PFSI Issuer Trust – FMSR a security interest in all of its right, title and interest in, to and under participation certificates representing beneficial interests in MSRs and ESS, including all of its rights and interests in any MSRs and ESS it thereafter owns or acquires. The principal amount paid by PFSI Issuer Trust - FMSR for the participation certificates under the PC Repurchase Agreement is based upon a percentage of the market value of the underlying MSRs (inclusive of the ESS). Upon PLS’s repurchase of the participation certificates, PLS is required to repay PFSI Issuer Trust - FMSR 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 FMSR VFN and any outstanding term notes) to the date of such repurchase. million, all of which is committed. The principal amount paid by CSCIB for the FMSR VFN is based upon a percentage of the market value of such FMSR VFN. Upon PLS’s repurchase of the FMSR VFN, PLS is required to repay CSCIB the principal amount relating thereto plus accrued interest (at a rate reflective of the current market based on a spread above LIBOR with index replacement provisions related to the transition from LIBOR) to the date of such repurchase. Under the FMSR VFN Repurchase Agreement, in the event any such transactions are deemed to be loans and not sales and purchases, PLS granted to CSCIB a security interest in all of its right, title and interest in, to and under the FMSR VFN and all rights to reimbursement or payment of the FMSR VFN and/or amounts due in respect thereof. Ginnie Mae 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, 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. On April 1, 2020, the Company issued a series of variable funding notes, the Series 2020-SPIADVF1 Notes (“GMSR Servicing Advance Notes”), to be sold under agreement to repurchase pursuant to a Master Repurchase Agreement, dated as of April 1, 2020, with Credit Suisse First Boston Mortgage Capital LLC, acting as administrative agent on behalf of Credit Suisse AG, Cayman Islands Branch, as buyer (the “GMSR Servicing Advances Repurchase Agreement”). The GMSR Servicing Advances Repurchase Agreement provides the Company with financing secured by its servicing advances to pay, in accordance with the Ginnie Mae requirements, in the event borrowers are delinquent: (i) regularly scheduled monthly principal and interest to mortgage-backed securities holders; (ii) taxes, homeowner’s insurance, and other escrowed items; and (iii) other expenses related to servicing delinquent loans as specified by (A) state and federal laws and (B) government agencies, including the FHA, the VA, and the USDA. The borrowing capacity under the GMSR Servicing Advances Repurchase Agreement, shared with VFN financing capacity, is $600 million, all of which is committed and may be used to finance the servicing advances related to delinquent FHA, VA, and USDA loans, including delinquencies caused by forbearance provided to the borrower in accordance with the CARES Act. Assets sold under agreements to repurchase are summarized below: Quarter ended June 30, Six months ended June 30, 2021 2020 2021 2020 (dollars in thousands) Average balance of assets sold under agreements to repurchase $ 7,571,340 $ 2,529,217 $ 7,999,580 $ 2,833,444 Weighted average interest rate (1) 2.07 % 2.32 % 2.13 % 2.74 % Total interest expense $ 44,623 $ 17,487 $ 96,802 $ 43,171 Maximum daily amount outstanding $ 10,856,677 $ 3,769,495 $ 10,856,677 $ 3,769,495 June 30, December 31, 2021 2020 (dollars in thousands) Carrying value: Unpaid principal balance $ 8,262,251 $ 9,663,995 Unamortized debt issuance costs (7,708) (9,198) $ 8,254,543 $ 9,654,797 Weighted average interest rate 1.86 % 1.90 % Available borrowing capacity (2): Committed $ 666,772 $ 372,803 Uncommitted 6,695,976 2,163,202 $ 7,362,748 $ 2,536,005 Fair value of assets securing repurchase agreements: Loans held for sale $ 9,917,262 $ 10,912,178 Assets purchased from PennyMac Mortgage Investment Trust under agreements to resell $ — $ 80,862 Servicing advances (3) $ 311,896 $ 413,484 Mortgage servicing rights (3) $ 3,209,383 $ 2,490,267 Deposits (3) $ 49,934 $ 153,054 Margin deposits placed with counterparties (4) $ 10,875 $ 5,625 (1) Excludes the effect of amortization of net issuance costs and utilization fees of $5.3 million and $2.8 million for the quarters ended June 30, 2021 and 2020, respectively, and $11.8 million and $4.4 million for the six months ended June 30, 2021 and 2020, respectively. (2) 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. (3) Beneficial interests in the Ginnie Mae MSRs, servicing advances and deposits are pledged to the Issuer Trust and together serve as the collateral backing the VFN, GMSR Servicing Advance Notes, and the Term Notes described in Note 13 – Long-Term Debt - Notes payable secured by mortgage servicing assets . The VFN financing and the GMSR Servicing Advance Notes are included in Assets sold under agreements to repurchase and the Term Notes are included in Notes payable secured by mortgage servicing assets on the Company's consolidated balance sheets. (4) Margin deposits are included in Other assets on the Company’s consolidated balance sheets. Following is a summary of maturities of outstanding advances under repurchase agreements by maturity date: Remaining maturity at June 30, 2021 Unpaid principal balance (dollars in thousands) Within 30 days $ 3,532,563 Over 30 to 90 days 3,396,557 Over 90 to 180 days 987,861 Over 180 days to one year 295,270 Over one year to two year 50,000 Total assets sold under agreements to repurchase $ 8,262,251 Weighted average maturity (in months) 2.2 The amount at risk (the fair value of the assets pledged plus the related margin deposit, less the amount advanced by the counterparty and interest payable) relating to the Company’s assets sold under agreements to repurchase is summarized by counterparty below as of June 30, 2021: Weighted average Counterparty Amount at risk maturity of advances Facility maturity (in thousands) Credit Suisse First Boston Mortgage Capital LLC (1) $ 2,126,158 March 31, 2023 March 31, 2023 Credit Suisse First Boston Mortgage Capital LLC $ 724,309 August 18, 2021 March 31, 2023 Bank of America, N.A. $ 397,300 July 31, 2021 June 7, 2023 JP Morgan Chase Bank, N.A. $ 207,772 August 3, 2021 September 30, 2022 JP Morgan Chase Bank, N.A. $ 1,891 August 6, 2021 June 6, 2023 BNP Paribas $ 124,512 July 18, 2021 July 30, 2021 Goldman Sachs $ 77,468 October 8, 2021 December 23, 2022 Royal Bank of Canada $ 55,641 September 26, 2021 June 14, 2022 Morgan Stanley Bank, N.A. $ 44,701 August 28, 2021 November 2, 2022 Barclays Bank PLC $ 41,978 August 26, 2021 November 3, 2022 Wells Fargo Bank, N.A. $ 20,750 September 16, 2021 October 6, 2022 Citibank, N.A. $ 11,835 August 3, 2021 August 3, 2021 (1) The calculation of the amount at risk includes the VFN and the Term Notes because 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, and the Term Notes described in Notes payable secured by mortgage servicing assets below. The VFN financing is included in Assets sold under agreements to repurchase and the Term Notes are included in Notes payable secured by mortgage servicing assets on the Company's consolidated balance sheets. 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 June 30, Six months ended June 30, 2021 2020 2021 2020 (dollars in thousands) Average balance $ 254,343 $ 240,119 $ 265,390 $ 243,965 Weighted average interest rate (1) 1.36 % 1.53 % 1.35 % 2.09 % Total interest expense $ 1,039 $ 1,061 $ 2,134 $ 2,871 Maximum daily amount outstanding $ 528,844 $ 540,977 $ 528,844 $ 540,977 (1) Excludes the effect of amortization of debt issuance costs totaling $172,000 and $145,000 for the quarters ended June 30, 2021 and 2020, respectively, and $344,000 and $318,000 for the six months ended June 30, 2021 and 2020, respectively. June 30, December 31, 2021 2020 (dollars in thousands) Carrying value: Unpaid principal balance $ 512,253 $ 521,477 Unamortized debt issuance costs — — $ 512,253 $ 521,477 Weighted average interest rate 1.48 % 1.39 % Fair value of loans pledged to secure mortgage loan participation purchase and sale agreements $ 533,864 $ 545,500 Corporate Revolving Line of Credit The Company, through its subsidiary PennyMac, entered into an amended and restated credit agreement on November 18, 2016, as amended (the “Credit Agreement”) under which PennyMac established a revolving line of credit in an amount not to exceed $150 million. PennyMac did not borrow under the revolving line of credit during the periods presented and terminated the Credit Agreement on September 29, 2020 concurrent with the issuance the Unsecured Senior Notes

Long-Term Debt

Long-Term Debt	6 Months Ended
Long-Term Debt	Jun. 30, 2021
Long-Term Debt.
Long-Term Debt	Note 13—Long-Term Debt 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 June 30, Six months ended June 30, 2021 2020 2021 2020 (dollars in thousands) Average balance $ 9,072 $ 17,272 $ 10,169 $ 18,367 Weighted average interest rate 2.10 % 2.70 % 2.12 % 3.05 % Total interest expense $ 48 $ 104 $ 107 $ 271 Maximum daily amount outstanding $ 10,468 $ 18,145 $ 11,864 $ 20,810 June 30, December 31, 2021 2020 (dollars in thousands) Unpaid principal balance $ 7,677 $ 11,864 Weighted average interest rate 2.07 % 2.15 % Assets pledged to secure obligations under capital lease: Capitalized software $ 6,024 $ 7,675 Furniture, fixtures and equipment $ 4,899 $ 5,689 Notes Payable Secured by Mortgage Servicing Assets Term Notes The Company, through the Issuer Trust described in Note 12— Short-Term Borrowings—Assets Sold Under Agreements to Repurchase Following is a summary of the issued and outstanding Term Notes: Issuance date Principal balance Stated interest rate (1) Stated maturity date (2) (in thousands) (Annual) February 28, 2018 (the "GT1 Notes") $ 650,000 2.85% 2/25/2023 August 10, 2018 (the "GT2 Notes") 650,000 2.65% 8/25/2023 $ 1,300,000 (1) Spread over one-month LIBOR. (2) The Term Notes’ indentures provide the Company with the option to extend the maturity of the Term Notes by two years after the stated maturity . MSR Note Payable On February 1, 2018, the Company issued a note payable that is secured by Freddie Mac MSRs. Interest is charged at a rate based on LIBOR plus the applicable contract margin. The facility expires on March 31, 2023. The maximum amount that the Company may borrow under the note payable is $600 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 periods presented. Notes payable secured by mortgage servicing assets are summarized below: Quarter ended June 30, Six months ended June 30, 2021 2020 2021 2020 (dollars in thousands) Average balance $ 1,300,000 $ 1,300,000 $ 1,300,000 $ 1,300,000 Weighted average interest rate (1) 2.91 % 3.28 % 2.90 % 3.86 % Total interest expense $ 10,104 $ 11,109 $ 19,992 $ 25,955 (1) Excludes the effect of amortization of debt issuance costs totaling $634,000 and $451,000 for the quarters ended June 30, 2021 and 2020, respectively, and $1.2 million and $896,000 for the six months ended June 30, 2021 and 2020, respectively. June 30, December 31, 2021 2020 (dollars in thousands) Carrying value: Unpaid principal balance $ 1,300,000 $ 1,300,000 Unamortized debt issuance costs (3,269) (4,160) $ 1,296,731 $ 1,295,840 Weighted average interest rate 2.84 % 2.93 % Assets pledged to secure notes payable (1): Servicing advances $ 311,896 $ 413,484 Mortgage servicing rights $ 3,164,980 $ 2,421,326 Deposits $ 49,934 $ 153,054 (1) Beneficial interests in the Ginnie Mae MSRs, servicing advances and deposits are pledged to the Issuer Trust and together serve as the collateral backing the VFN, GMSR Servicing Advance Notes and the Term Notes. The VFN financing and the GMSR Servicing Advance Notes are included in Assets sold under agreements to repurchase and the Term Notes are included in Notes payable secured by mortgage servicing assets on the Company's consolidated balance sheets. Unsecured Senior Notes The Company issued unsecured senior notes (the “Unsecured Notes”) to qualified institutional buyers under Rule 144A of the Securities Act. The Unsecured Notes are senior unsecured obligations of the Company and will rank senior in right of payment to any future subordinated indebtedness of the Company, equally in right of payment with all existing and future senior indebtedness of the Company and effectively subordinated to any future secured indebtedness of the Company to the extent of the fair value of collateral securing such indebtedness. The Unsecured Notes are fully and unconditionally guaranteed, jointly and severally, on a senior unsecured basis by PFSI’s existing and future wholly-owned domestic subsidiaries (other than certain excluded subsidiaries defined in the indenture under which the Unsecured Notes were issued). The guarantees are senior unsecured obligations of the guarantors and will rank senior in right of payment to any future subordinated indebtedness of the guarantors, equally in right of payment with all existing and future senior indebtedness of the guarantors and effectively subordinated to any future secured indebtedness of the guarantors to the extent of the fair value of collateral securing such indebtedness. The Unsecured Notes and the guarantees are structurally subordinated to the indebtedness and liabilities of the Company’s subsidiaries that do not guarantee the Unsecured Notes. Following is a summary of the Unsecured Notes issued: Issuance date Principal balance Coupon interest rate Maturity date (in thousands) (Annual) September 29, 2020 $ 500,000 5.38% October 15, 2025 October 19, 2020 150,000 5.38% October 15, 2025 February 11, 2021 650,000 4.25% February 15, 2029 $ 1,300,000 Before October 15, 2022 or February 15, 2024 for the Unsecured Notes issued during 2020 and 2021, respectively, the Company may, at its option redeem earlier in accordance with the terms of the Unsecured Notes: ● some or all of the Unsecured Notes at a price equal to 100% of the principal amount of the Unsecured Notes redeemed, plus accrued and unpaid interest to, but excluding, the redemption date, plus a make-whole premium; and ● up to 40% of the aggregate principal amount of the Unsecured Notes with an amount equal to or less than the net proceeds from certain equity offerings at a redemption price of 105.375% and 104.25% for the Unsecured Notes issued during 2020, and 2021, respectively, plus accrued and unpaid interest to, but excluding, the redemption date. ● If a “change of control” (as defined in the indenture under which the Unsecured Notes were issued) occurs, the holders of the Unsecured Notes may require the Company to purchase for cash all or a portion of their Unsecured Notes at a purchase price equal to 101% of the principal amount of the Unsecured Notes, plus accrued and unpaid interest to, but excluding, the repurchase date. Quarter ended Six months ended June 30, 2021 June 30, 2021 (dollars in thousands) Average balance $ 1,300,000 $ 1,152,762 Weighted average interest rate (1) 4.81 % 4.81 % Total interest expense $ 16,169 $ 28,839 (1) Excludes the effect of amortization of debt issuance costs of $571,000 and $918,000 for the quarter and six months ended June 30, 2021, respectively. June 30, December 31, 2021 2020 (dollars in thousands) Carrying value: Unpaid principal balance $ 1,300,000 $ 650,000 Unamortized debt issuance costs, net of issuance premiums (11,231) (4,180) $ 1,288,769 $ 645,820 Weighted average interest rate 4.81 % 5.38 % Maturities of Long-Term Debt Maturities of long-term debt obligations (based on final maturity dates) are as follows: Twelve months ended June 30, 2022 2023 2024 2025 2026 Thereafter Total (in thousands) Obligations under capital lease $ 7,677 $ — $ — $ — $ — $ — $ 7,677 Notes payable secured by mortgage servicing assets — 650,000 650,000 — — — 1,300,000 Unsecured Notes — — — — 650,000 650,000 1,300,000 Total $ 7,677 $ 650,000 $ 650,000 $ — $ 650,000 $ 650,000 $ 2,607,677

Liability for Losses Under Repr

Liability for Losses Under Representations and Warranties	6 Months Ended
Liability for Losses Under Representations and Warranties	Jun. 30, 2021
Liability for Losses Under Representations and Warranties
Liability for Losses Under Representations and Warranties	Note 14—Liability for Losses Under Representations and Warranties Following is a summary of the Company’s liability for losses under representations and warranties: Quarter ended June 30, Six months ended June 30, 2021 2020 2021 2020 (in thousands) Balance at beginning of period $ 38,428 $ 23,202 $ 32,688 $ 21,446 Provision for losses on loans sold: Resulting from sales of loans 10,304 4,189 20,357 7,901 Reduction in liability due to change in estimate (3,640) (1,270) (7,325) (2,946) Losses incurred, net (757) (212) (1,385) (492) Balance at end of period $ 44,335 $ 25,909 $ 44,335 $ 25,909 Unpaid principal balance of loans subject to representations and warranties at end of period $ 234,327,924 $ 192,064,630

Income Taxes

Income Taxes	6 Months Ended
Income Taxes	Jun. 30, 2021
Income Taxes
Income Taxes	Note 15—Income Taxes The Company’s effective income tax rates were 26.9% and 26.6% for the quarters ended June 30, 2021 and 2020, respectively, and 26.0% and 26.4% for the six months ended June 30, 2021 and 2020, respectively. The difference in the effective tax rates for the six months ended June 30, 2021 compared to the six months ended June 30, 2020 was primarily due to an increase in tax deductions in 2021 related to equity compensation. Substantially all of this increase in tax deductions related to equity compensation was realized in the quarter ended March 31, 2021. The CARES Act, passed in March 2020, introduced a number of tax law changes which are generally taxpayer favorable and in December 2020, the Taxpayer Certainty and Disaster Tax Relief Act was signed into law. No material changes in our effective income tax rates resulted from either Act.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
Commitments and Contingencies	Jun. 30, 2021
Commitments and Contingencies.
Commitments and Contingencies	Note 16—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. On November 5, 2019, Black Knight Servicing Technologies, LLC, a wholly-owned indirect subsidiary of Black Knight, Inc. (“BKI”), filed a Complaint and Demand for Jury Trial in the Circuit Court for the Fourth Judicial Circuit in and for Duval County, Florida (the “Florida State Court”), captioned Black Knight Servicing Technologies , LLC v. PennyMac Loan Services, LLC , Case No. 2019-CA-007908 (the “BKI Complaint”). Allegations contained within the BKI Complaint include breach of contract and misappropriation of MSP® System trade secrets in order to develop an imitation mortgage-processing system intended to replace the MSP® System. The BKI Complaint seeks damages for breach of contract and misappropriation of trade secrets, injunctive relief under the Florida Uniform Trade Secrets Act and declaratory judgment of ownership of all intellectual property and software developed by or on behalf of PLS as a result of its wrongful use of and access to the MSP® System and related trade secret and confidential information. On March 30, 2020, the Florida State Court granted a motion to compel arbitration filed by the Company. Consequently, on April 27, 2020, PennyMac dismissed its federal court action without prejudice to pursue those claims in arbitration as well. While no assurance can be provided as to the ultimate outcome of this claim or the account of any losses to the Company, the Company believes the BKI Complaint is without merit and plans to vigorously defend the matter, which remains pending. 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 (“CFPB”), 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. On January 7, 2021, PLS received a letter from the CFPB notifying PLS that, in accordance with the CFPB’s discretionary Notice and Opportunity to Respond and Advise (“NORA”) process, the CFPB’s Office of Enforcement was considering recommending that the CFPB take legal action against PLS for alleged violations of the Real Estate Settlement Procedures Act and Truth in Lending Act. The CFPB's examination covered the period from March 2015 through September 2016. Should the CFPB commence an action, it may seek restitution, civil monetary penalties, injunctive relief, or other corrective action, the extent of which remains uncertain at this time. Notably, certain of the alleged violations were originally self-identified by PLS and remediated prior to the CFPB's examination, and all alleged violations were fully remediated as of August 2017. PLS confirmed these remediation actions as well as full restitution to any affected borrowers in its response to the NORA letter submitted on February 8, 2021. While the NORA process remains open and pending at this time, and there can be no assurance as to the nature or extent of any actions taken by the CFPB with regard to these alleged violations, the Company does not believe that the ultimate resolution of this matter will have a material adverse effect on its financial statements or operations. Commitments to Purchase and Fund Mortgage Loans The Company’s commitments to purchase and fund loans totaled $13.9 billion as of June 30, 2021.

Stockholders' Equity

Stockholders' Equity	6 Months Ended
Stockholders' Equity	Jun. 30, 2021
Stockholders' Equity.
Stockholders' Equity	Note 17—Stockholders’ Equity In February 2021, the Company’s board of directors approved an increase to the Company’s common stock repurchase program from $500 million to $1 billion. Following is a summary of activity under the stock repurchase program: Quarter ended June 30, Six months ended June 30, Cumulative 2021 2020 2021 2020 total (1) (in thousands) Shares of common stock repurchased 2,574 6,975 7,227 7,213 16,933 Cost of shares of common stock repurchased $ 154,920 $ 237,162 $ 443,439 $ 241,283 $ 795,866 (1) Amounts represent the total shares of common stock repurchased under the stock repurchase program from inception through June 30, 2021 .

Net Gains on Loans Held for Sal

Net Gains on Loans Held for Sale	6 Months Ended
Net Gains on Loans Held for Sale	Jun. 30, 2021
Net Gains on Loans Held for Sale
Net Gains on Loans Held for Sale	Note 18—Net Gains on Loans Held for Sale Net gains on loans held for sale at fair value is summarized below: Quarter ended June 30, Six months ended June 30, 2021 2020 2021 2020 (in thousands) From non-affiliates: Cash gains: Loans $ 387,305 $ 502,416 $ 470,017 $ 614,173 Hedging activities (325,651) (227,013) 410,574 (349,679) 61,654 275,403 880,591 264,494 Non-cash gains: Mortgage servicing rights and mortgage servicing liabilities resulting from loan sales 425,941 225,534 889,512 501,273 Provisions for losses relating to representations and warranties: Pursuant to loan sales (10,304) (4,189) (20,357) (7,901) Reductions in liability due to change in estimate 3,640 1,270 7,325 2,946 Changes in fair values of loans and derivatives held at period end: Interest rate lock commitments 5,670 52,871 (333,416) 231,414 Loans (50,322) 10,978 54,900 (61,102) Hedging derivatives 157,917 125,898 (115,770) 23,007 594,196 687,765 1,362,785 954,131 From PennyMac Mortgage Investment Trust (1) (11,548) (5,592) (25,796) 72,324 $ 582,648 $ 682,173 $ 1,336,989 $ 1,026,455

Net Interest (Expense) Income

Net Interest (Expense) Income	6 Months Ended
Net Interest (Expense) Income	Jun. 30, 2021
Net Interest (Expense) Income
Net Interest (Expense) Income	Note 19—Net Interest (Expense) Income Net interest (expense) income is summarized below: Quarter ended June 30, Six months ended June 30, 2021 2020 2021 2020 (in thousands) Interest income: From non-affiliates: Cash and short-term investments $ 747 $ 1,893 $ 1,734 $ 3,604 Loans held for sale at fair value 76,453 32,586 151,277 79,012 Placement fees relating to custodial funds 3,597 12,047 9,480 35,256 80,797 46,526 162,491 117,872 From PennyMac Mortgage Investment Trust—Assets purchased from PennyMac Mortgage Investment Trust under agreements to resell — 792 387 2,010 80,797 47,318 162,878 119,882 Interest expense: To non-affiliates: Assets sold under agreements to repurchase 44,623 17,487 96,802 43,171 Mortgage loan participation purchase and sale agreements 1,039 1,061 2,134 2,871 Obligations under capital lease 48 104 107 271 Notes payable secured by mortgage servicing assets 10,104 11,109 19,992 25,955 Unsecured senior notes 16,169 — 28,839 — Corporate revolving line of credit — 472 — 975 Interest shortfall on repayments of mortgage loans serviced for Agency securitizations 29,144 18,954 58,580 33,825 Interest on mortgage loan impound deposits 1,304 1,648 2,410 3,305 102,431 50,835 208,864 110,373 To PennyMac Mortgage Investment Trust—Excess servicing spread financing at fair value — 2,372 1,280 4,346 102,431 53,207 210,144 114,719 $ (21,634) $ (5,889) $ (47,266) $ 5,163

Stock-based Compensation

Stock-based Compensation	6 Months Ended
Stock-based Compensation	Jun. 30, 2021
Stock-based Compensation
Stock-based Compensation	Note 20—Stock-based Compensation As of June 30, 2021, the Company had one stock-based compensation plan. Following is a summary of the stock-based compensation activity: Quarter ended June 30, Six months ended June 30, 2021 2020 2021 2020 (in thousands) Grants: Units: Performance-based restricted share units ("RSUs") — — 310 422 Stock options — — 249 273 Time-based RSUs — 5 171 310 Grant date fair value: Performance-based RSUs $ — $ — $ 18,237 $ 14,788 Stock options — — 5,116 2,770 Time-based RSUs — 150 10,066 10,823 Total $ — $ 150 $ 33,419 $ 28,381 Vestings and exercises: Performance-based RSUs vested — — 640 603 Stock options exercised 97 144 185 324 Time-based RSUs vested 2 — 307 348 Compensation expense $ 8,894 $ 6,757 $ 19,771 $ 19,125

Earnings Per Share of Common St

Earnings Per Share of Common Stock	6 Months Ended
Earnings Per Share of Common Stock	Jun. 30, 2021
Earnings Per Share of Common Stock
Earnings Per Share of Common Stock	Note 21—Earnings Per Share of Common Stock Basic earnings per share of common stock is determined by dividing net income by the weighted average number of shares of common stock outstanding during the quarter. Diluted earnings per share of common stock is determined by dividing net income by the weighted average number of shares of common stock outstanding, assuming all dilutive securities were issued. Potentially dilutive securities include non-vested stock-based compensation awards. The Company applies the treasury stock method to determine the diluted weighted average number of shares of common stock outstanding based on the outstanding stock-based compensation awards. The following table summarizes the basic and diluted earnings per share calculations: Quarter ended June 30, Six months ended June 30, 2021 2020 2021 2020 (in thousands, except per share amounts) Net income $ 204,229 $ 352,677 $ 581,097 $ 658,920 Weighted average basic shares of common stock outstanding 65,890 77,790 67,493 78,240 Effect of dilutive securities: Common shares issuable under stock-based compensation plan 3,509 2,634 3,755 3,001 Weighted average shares of common stock applicable to diluted earnings per share 69,399 80,424 71,248 81,241 Basic earnings per share of common stock $ 3.10 $ 4.53 $ 8.61 $ 8.42 Diluted earnings per share of common stock $ 2.94 $ 4.39 $ 8.16 $ 8.11 Calculations of diluted earnings per share require certain potentially dilutive shares to be excluded when their inclusion in the diluted earnings per share calculation would be anti-dilutive. The following table summarizes the weighted-average number of anti-dilutive outstanding performance-based RSUs and stock options excluded from the calculation of diluted earnings per share: Quarter ended June 30, Six months ended June 30, 2021 2020 2021 2020 (in thousands except for weighted-average exercise price) Performance-based RSUs (1) 308 422 215 292 Time-based RSUs — 79 — 110 Stock options (2) 249 273 173 189 Total anti-dilutive shares and units 557 774 388 591 Weighted average exercise price of anti-dilutive stock options (2) $ 58.85 $ 35.03 $ 58.85 $ 35.03 (1) Certain performance-based RSUs were outstanding but not included in the computation of earnings per share because the performance thresholds included in such RSUs have not been achieved. (2) Certain stock options were outstanding but not included in the computation of diluted earnings per share because the weighted-average exercise prices were above the average stock prices for the period.

Supplemental Cash Flow Informat

Supplemental Cash Flow Information	6 Months Ended
Supplemental Cash Flow Information	Jun. 30, 2021
Supplemental Cash Flow Information
Supplemental Cash Flow Information	Note 22—Supplemental Cash Flow Information Six months ended June 30, 2021 2020 (in thousands) Cash paid for interest $ 208,015 $ 127,806 Cash paid for income taxes, net $ 257,074 $ 3,871 Non-cash investing activity: Mortgage servicing rights resulting from loan sales $ 953,895 $ 507,849 Unsettled portion of MSR acquisitions $ — $ 1,053 Operating right-of-use assets $ 7,813 $ 6,498 Non-cash financing activity: Mortgage servicing liabilities resulting from loan sales $ 64,383 $ 6,576 Issuance of Excess servicing spread payable to PennyMac Mortgage Investment Trust $ 557 $ 862 Issuance of common stock in settlement of directors' fees $ 101 $ 96

Regulatory Capital and Liquidit

Regulatory Capital and Liquidity Requirements	6 Months Ended
Regulatory Capital and Liquidity Requirements	Jun. 30, 2021
Regulatory Capital and Liquidity Requirements
Regulatory Capital and Liquidity Requirements	Note 23—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, loan origination volume and delinquency rates. The Company is subject to financial eligibility requirements established by the Federal Housing Finance Agency (“FHFA”) 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 UPB of the Company’s total 1-4 unit servicing portfolio, excluding mortgage loans subserviced for others; ● 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 less 70% of such nonperforming Agency servicing UPB in excess of 600 basis points where the underlying loans are in COVID-19 forbearance but were current at the time they entered forbearance. The Company is also subject to financial eligibility requirements for Ginnie Mae single-family issuers. The eligibility requirements include net worth of $2.5 million plus 35 basis points of PLS' outstanding Ginnie Mae single-family obligations and a liquidity requirement equal to the greater of $1.0 million or 10 basis points of PLS' outstanding Ginnie Mae single-family securities. The Agencies’ capital and liquidity requirements, the calculations of which are specified by each Agency, are summarized below: June 30, 2021 December 31, 2020 Agency–company subject to requirement Actual (1) Requirement (1) Actual (1) Requirement (1) (dollars in thousands) Capital Fannie Mae & Freddie Mac – $ 5,243,429 $ 658,510 $ 4,454,680 $ 633,331 Ginnie Mae – $ 4,785,193 $ 977,600 $ 3,794,112 $ 1,058,641 HUD – $ 4,785,193 $ 2,500 $ 3,794,112 $ 2,500 Liquidity Fannie Mae & Freddie Mac – $ 317,877 $ 88,189 $ 506,096 $ 84,444 Ginnie Mae – $ 317,877 $ 217,186 $ 506,096 $ 215,722 Adjusted net worth / Total assets ratio Ginnie Mae – 20 % 6 % 12 % 6 % Tangible net worth / Total assets ratio Fannie Mae & Freddie Mac – 22 % 6 % 14 % 6 % (1) Calculated in compliance with the respective Agency’s requirements. Noncompliance with an Agency’s requirements can result in such Agency taking various remedial actions up to and including terminating PennyMac’s ability to sell loans to and service loans on behalf of the respective Agency.

Segments

Segments	6 Months Ended
Segments	Jun. 30, 2021
Segments
Segments	Note 24—Segments The Company operates in three segments: production, servicing and investment management. Two of the segments are in the mortgage banking business: production and servicing. The production segment performs loan origination, acquisition and sale activities. The servicing segment performs servicing of loans, execution and management of early buyout loan transactions and servicing of loans sourced and managed by the investment management segment for PMT, including executing the loan resolution strategy identified by the investment management segment relating to distressed mortgage loans. The investment management segment represents the activities of the Company’s investment manager, which include sourcing, performing diligence, bidding and closing investment asset acquisitions and managing the acquired assets and correspondent production activities for PMT. Financial performance and results by segment are as follows: Quarter ended June 30, 2021 Mortgage Banking Investment Production Servicing Total Management Total (in thousands) Revenue: (1) Net gains on loans held for sale at fair value $ 419,293 $ 163,355 $ 582,648 $ — $ 582,648 Loan origination fees 97,291 — 97,291 — 97,291 Fulfillment fees from PennyMac Mortgage Investment Trust 54,020 — 54,020 — 54,020 Net loan servicing fees — 14,871 14,871 — 14,871 Net interest income (expense): Interest income 31,830 48,967 80,797 — 80,797 Interest expense 36,913 65,515 102,428 3 102,431 (5,083) (16,548) (21,631) (3) (21,634) Management fees — — — 11,913 11,913 Other 630 925 1,555 1,588 3,143 Total net revenue 566,151 162,603 728,754 13,498 742,252 Expenses 321,709 131,679 453,388 9,349 462,737 Income before provision for income taxes $ 244,442 $ 30,924 $ 275,366 $ 4,149 $ 279,515 Segment assets at quarter end $ 7,670,877 $ 16,185,956 $ 23,856,833 $ 23,305 $ 23,880,138 (1) All revenues are from external customers. Quarter ended June 30, 2020 Mortgage Banking Investment Production Servicing Total Management Total (in thousands) Revenue: (1) Net gains on loans held for sale at fair value $ 619,728 $ 62,445 $ 682,173 $ — $ 682,173 Loan origination fees 58,948 — 58,948 — 58,948 Fulfillment fees from PennyMac Mortgage Investment Trust 52,815 — 52,815 — 52,815 Net loan servicing fees — 22,337 22,337 — 22,337 Net interest income (expense): Interest income 19,205 28,113 47,318 — 47,318 Interest expense 12,642 40,560 53,202 5 53,207 6,563 (12,447) (5,884) (5) (5,889) Management fees — — — 8,288 8,288 Other 361 351 712 2,250 2,962 Total net revenue 738,415 72,686 811,101 10,533 821,634 Expenses 200,352 135,098 335,450 5,822 341,272 Income before provision for income taxes $ 538,063 $ (62,412) $ 475,651 $ 4,711 $ 480,362 Segment assets at quarter end $ 5,419,219 $ 17,789,046 $ 23,208,265 $ 18,210 $ 23,226,475 (1) All revenues are from external customers. Six months ended June 30, 2021 Mortgage Banking Investment Production Servicing Total Management Total (in thousands) Revenue: (1) Net gains on loans held for sale at fair value $ 935,256 $ 401,733 $ 1,336,989 $ — $ 1,336,989 Loan origination fees 201,328 — 201,328 — 201,328 Fulfillment fees from PennyMac Mortgage Investment Trust 114,855 — 114,855 — 114,855 Net loan servicing fees — 54,591 54,591 — 54,591 Net interest income (expense): Interest income 61,361 101,517 162,878 — 162,878 Interest expense 74,985 135,153 210,138 6 210,144 (13,624) (33,636) (47,260) (6) (47,266) Management fees — — — 20,362 20,362 Other 1,227 2,122 3,349 2,730 6,079 Total net revenue 1,239,042 424,810 1,663,852 23,086 1,686,938 Expenses 631,705 252,142 883,847 17,568 901,415 Income before provision for income taxes $ 607,337 $ 172,668 $ 780,005 $ 5,518 $ 785,523 Segment assets at year end $ 7,670,877 $ 16,185,956 $ 23,856,833 $ 23,305 $ 23,880,138 (1) All revenues are from external customers Six months ended June 30, 2020 Mortgage Banking Investment Production Servicing Total Management Total (in thousands) Revenue: (1) Net gains on loans held for sale at fair value $ 936,363 $ 90,092 $ 1,026,455 $ — $ 1,026,455 Loan origination fees 116,519 — 116,519 — 116,519 Fulfillment fees from PennyMac Mortgage Investment Trust 94,755 — 94,755 — 94,755 Net loan servicing fees — 280,145 280,145 — 280,145 Net interest income (expense): Interest income 45,790 74,092 119,882 — 119,882 Interest expense 32,799 81,906 114,705 14 114,719 12,991 (7,814) 5,177 (14) 5,163 Management fees — — — 17,343 17,343 Other 351 (329) 22 3,057 3,079 Total net revenue 1,160,979 362,094 1,523,073 20,386 1,543,459 Expenses 382,785 253,664 636,449 11,918 648,367 Income before provision for income taxes $ 778,194 $ 108,430 $ 886,624 $ 8,468 $ 895,092 Segment assets at year end $ 5,419,219 $ 17,789,046 $ 23,208,265 $ 18,210 $ 23,226,475 (1) All revenues are from external customers.

Subsequent Events

Subsequent Events	6 Months Ended
Subsequent Events	Jun. 30, 2021
Subsequent Events
Subsequent Events	Note 25—Subsequent Events Management has evaluated all events and transactions through the date the Company issued these consolidated financial statements. During this period: ● On August 4, 2021, the Company’s board of directors approved an increase to the Company’s common stock repurchase program from $1 billion to $2 billion. ● On August 4, 2021, the Company’s board of directors declared a cash dividend of $0.20 per common share. The dividend will be paid on August 26, 2021 to common shareholders of record as of August 16, 2021. ● On July 30, 2021, the Company through two of its indirect, wholly owned subsidiaries, Issuer Trust and PLS, and its direct wholly owned subsidiary, PennyMac, entered into agreements to syndicate two existing variable funding note repurchase agreements, as part of the structured finance transaction that PLS uses to finance Ginnie Mae mortgage servicing rights and related excess servicing spread and servicing advance receivables. The Company entered into (i) an Amended and Restated Series 2016-MSRVF1 Master Repurchase Agreement by and among PLS, as seller, CSFB, as administrative agent to the buyers, CSCIB, as a buyer, Citibank, N.A., as a buyer, and PennyMac, as a guarantor (the “Syndicated GMSR Servicing Spread Agreement”), related to the servicing spread; and (ii) an Amended and Restated Series 2020-MSRVF1 Master Repurchase Agreement by and among PLS, as seller, CSFB, as administrative agent to the buyers, CSCIB, as a buyer, Citibank, as a buyer, and PennyMac, as a guarantor (the “Syndicated GMSR SAR Agreement”), related to the servicing advance receivables. The purposes of the Syndicated GMSR Servicing Spread Agreement are to (1) add Citibank as a syndicate buyer, and (2) increase the maximum purchase price from $400 to $500 million, all of which is committed on a 50-50 pro rata basis between CSCIB and Citibank. The purpose of the Syndicated GMSR SAR Agreement is to add Citibank as a syndicate buyer, with the maximum purchase price of $600 million unchanged, all of which is committed on a 50-50 pro rata basis between CSCIB and Citibank. Each syndicated facility is subject to certain terms and limitations as further described in the Company’s Current Report on Form 8-K filed with the SEC on August 5, 2021. ● The FHFA announced the elimination of a 50 basis point adverse market refinance fee on Fannie Mae and Freddie Mac mortgage refinance transactions effective August 1, 2021. ● All agreements to repurchase assets that matured before the date of this Report were extended or renewed.

Related Party Transactions (Tab

Related Party Transactions (Tables) - PMT	6 Months Ended
Related Party Transactions (Tables) - PMT	Jun. 30, 2021
Transactions with Affiliates
Summary of lending activity between the Company and affiliate	Quarter ended June 30, Six months ended June 30, 2021 2020 2021 2020 (in thousands) Net gains on loans held for sale at fair value: Net gains on loans held for sale to PMT (primarily cash) $ — $ 70 $ — $ 81,294 Mortgage servicing rights and excess servicing spread recapture incurred (11,548) (5,662) (25,796) (8,970) $ (11,548) $ (5,592) $ (25,796) $ 72,324 Sale of loans held for sale to PMT $ — $ 2,742 $ — $ 2,248,869 Tax service fees earned from PMT included in Loan origination fees $ 7,128 $ 4,288 $ 15,320 $ 8,268 Fulfillment fee revenue $ 54,020 $ 52,815 $ 114,855 $ 94,755 Sourcing fees included in cost of loans purchased from PMT $ 1,630 $ 3,324 $ 3,368 $ 7,485 Unpaid principal balance of loans purchased from PMT $ 16,297,216 $ 11,080,565 $ 33,856,791 $ 24,950,845
Summary of loan servicing fees earned from PMT	Quarter ended June 30, Six months ended June 30, 2021 2020 2021 2020 (in thousands) Loan type serviced: Loans acquired for sale at fair value $ 630 $ 607 $ 1,173 $ 1,143 Distressed loans 80 188 217 488 Mortgage servicing rights 19,305 14,738 37,718 28,423 $ 20,015 $ 15,533 $ 39,108 $ 30,054
Summary of management fees earned	Quarter ended June 30, Six months ended June 30, 2021 2020 2021 2020 (in thousands) Base management $ 8,648 $ 8,288 $ 17,097 $ 17,343 Performance incentive 3,265 — 3,265 — $ 11,913 $ 8,288 $ 20,362 $ 17,343
Summary of reimbursement of expenses	Quarter ended June 30, Six months ended June 30, 2021 2020 2021 2020 (in thousands) Reimbursement of: Common overhead incurred by the Company $ 1,268 $ 1,585 $ 1,839 $ 3,125 Compensation 165 120 330 240 Expenses incurred on PMT's behalf, net 7,804 1,438 9,140 2,709 $ 9,237 $ 3,143 $ 11,309 $ 6,074 Payments and settlements during the period (1) $ 74,441 $ 136,352 $ 187,182 $ 170,035 (1) Payments and settlements include payments for management fees and correspondent production activities itemized in the preceding tables and netting settlements made pursuant to master netting agreements between the Company and PMT.
Summary of investing activity between the Company and affiliate	Quarter ended June 30, Six months ended June 30, 2021 2020 2021 2020 (in thousands) Interest income relating to Assets purchased from PennyMac Mortgage Investment Trust under agreements to resell $ — $ 792 $ 387 $ 2,010 Change in fair value of investment in and dividends received from PennyMac Mortgage Investment Trust $ 144 $ 543 $ 545 $ (314) June 30, December 31, 2021 2020 (in thousands) Assets purchased from PennyMac Mortgage Investment Trust under agreements to resell $ — $ 80,862 Common shares of beneficial interest of PennyMac Mortgage Investment Trust: Fair value $ 1,580 $ 1,105 Number of shares 75 75
Summary of financing activity between the Company and affiliate	Quarter ended Six months ended June 30, June 30, 2020 2021 2020 (in thousands) Excess servicing spread financing: Balance at beginning of period $ 157,109 $ 131,750 $ 178,586 Issuance pursuant to recapture agreement 483 557 862 Accrual of interest 2,372 1,280 4,346 Repayment (8,122) (134,624) (17,430) Change in fair value (636) 1,037 (15,158) Balance at end of period $ 151,206 $ — $ 151,206 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 $ 535 $ 614 $ 916
Summary of amounts due from and payable to affiliate	June 30, December 31, 2021 2020 (in thousands) Receivable from PMT: Allocated expenses and expenses incurred on PMT's behalf $ 17,002 $ 38,142 Fulfillment fees 16,467 20,873 Management fees 11,913 8,686 Correspondent production fees 9,764 13,065 Servicing fees 6,737 6,213 Interest on assets purchased under agreements to resell — 26 $ 61,883 $ 87,005 Payable to PMT: Amounts advanced by PMT to fund its servicing advances $ 117,444 $ 132,154 Other 19,216 8,152 $ 136,660 $ 140,306

Loan Sales and Servicing Acti_2

Loan Sales and Servicing Activities (Tables)	6 Months Ended
Loan Sales and Servicing Activities (Tables)	Jun. 30, 2021
Loan Sales and Servicing Activities
Summary of cash flows between the Company and transferees upon sale of loans in transactions	Quarter ended June 30, Six months ended June 30, 2021 2020 2021 2020 (in thousands) Cash flows: Sales proceeds $ 41,739,700 $ 21,188,988 $ 79,007,900 $ 40,526,005 Servicing fees received (1) $ 201,866 $ 158,871 $ 397,648 $ 325,427 (1) Net of guarantee fees paid to the Agencies.
Summary of sale of loans between the Company and transferees upon sale of loans in transactions	June 30, December 31, 2021 2020 (in thousands) Unpaid principal balance of loans outstanding $ 227,560,336 $ 199,655,361 Delinquencies (1): 30-89 days $ 4,574,834 $ 6,041,366 90 days or more: Not in foreclosure $ 13,173,282 $ 17,799,621 In foreclosure $ 481,974 $ 581,683 Foreclosed $ 6,444 $ 10,893 Bankruptcy $ 1,201,936 $ 1,230,696 Delinquent loans in COVID-19 pandemic-related forbearance: 30-89 days $ 1,383,601 $ 2,626,617 90 days or more 9,019,414 12,181,174 $ 10,403,015 $ 14,807,791 (1) Includes delinquent loans in COVID-19 pandemic-related forbearance plans that were requested by borrowers seeking payment relief in accordance with the CARES Act.
Summary of servicing portfolio	June 30, 2021 Contract Servicing servicing and Total rights owned subservicing loans serviced (in thousands) Investor: Non-affiliated entities: Originated $ 227,560,336 $ — $ 227,560,336 Purchased 31,050,313 — 31,050,313 258,610,649 — 258,610,649 PennyMac Mortgage Investment Trust — 204,174,462 204,174,462 Loans held for sale 10,438,935 — 10,438,935 $ 269,049,584 $ 204,174,462 $ 473,224,046 Delinquent loans (1): 30 days $ 4,175,393 $ 708,701 $ 4,884,094 60 days 1,432,015 198,221 1,630,236 90 days or more: Not in foreclosure 15,364,421 2,988,774 18,353,195 In foreclosure 624,204 28,514 652,718 Foreclosed 7,191 21,557 28,748 $ 21,603,224 $ 3,945,767 $ 25,548,991 Bankruptcy $ 1,582,002 $ 149,224 $ 1,731,226 Delinquent loans in COVID-19 pandemic-related forbearance: 30 days $ 854,161 $ 140,175 $ 994,336 60 days 791,271 134,304 925,575 90 days or more 10,402,947 2,467,315 12,870,262 $ 12,048,379 $ 2,741,794 $ 14,790,173 Custodial funds managed by the Company $ 10,262,380 $ 4,937,986 $ 15,200,366 (1) Includes delinquent loans in COVID-19 related forbearance plans that were requested by borrowers seeking payment relief in accordance with the CARES Act. (2) Custodial funds include cash accounts holding funds on behalf of borrowers and investors relating to loans serviced under servicing agreements and are not recorded on the Company’s consolidated balance sheets. The Company earns placement fees on certain of the custodial funds it manages on behalf of the loans’ borrowers and investors, which are included in Interest income in the Company’s consolidated statements of income. December 31, 2020 Contract Servicing servicing and Total rights owned subservicing loans serviced (in thousands) Investor: Non-affiliated entities: Originated $ 199,655,361 $ — $ 199,655,361 Purchased 41,612,940 — 41,612,940 241,268,301 — 241,268,301 PennyMac Mortgage Investment Trust — 174,418,591 174,418,591 Loans held for sale 11,063,938 — 11,063,938 $ 252,332,239 $ 174,418,591 $ 426,750,830 Delinquent loans (1): 30 days $ 5,217,949 $ 901,965 $ 6,119,914 60 days 2,393,267 348,416 2,741,683 90 days or more: Not in foreclosure 21,781,226 4,473,217 26,254,443 In foreclosure 751,586 33,312 784,898 Foreclosed 12,938 37,131 50,069 $ 30,156,966 $ 5,794,041 $ 35,951,007 Bankruptcy $ 1,698,418 $ 153,179 $ 1,851,597 Delinquent loans in COVID-19 pandemic-related forbearance: 30 days $ 1,745,257 $ 334,498 $ 2,079,755 60 days 1,479,753 259,019 1,738,772 90 days or more 14,904,052 3,690,505 18,594,557 $ 18,129,062 $ 4,284,022 $ 22,413,084 Custodial funds managed by the Company $ 10,660,517 $ 6,086,725 $ 16,747,242 (1) Includes delinquent loans in COVID-19 related forbearance plans that were requested by borrowers seeking payment relief in accordance with the CARES Act. (2) Custodial funds include cash accounts holding funds on behalf of borrowers and investors relating to loans serviced under servicing agreements and are not recorded on the Company’s consolidated balance sheets. The Company earns placement fees on certain of the custodial funds it manages on behalf of the loans’ borrowers and investors, which are included in Interest income in the Company’s consolidated statements of income.
Summary of the geographical distribution of loans for the top five and all other states as measured by the total unpaid principal balance (UPB)	June 30, December 31, State 2021 2020 (in thousands) California $ 65,386,177 $ 60,591,363 Florida 39,712,103 35,360,190 Texas 38,627,464 34,591,419 Virginia 29,487,339 26,209,701 Maryland 22,372,406 19,974,809 All other states 277,638,557 250,023,348 $ 473,224,046 $ 426,750,830

Fair Value (Tables)

Fair Value (Tables)	6 Months Ended
Fair Value (Tables)	Jun. 30, 2021
Fair Value
Summary of financial statement items measured at estimated fair value on a recurring basis	June 30, 2021 Level 1 Level 2 Level 3 Total (in thousands) Assets: Short-term investments $ 3,720 $ — $ — $ 3,720 Loans held for sale at fair value — 7,066,245 3,818,261 10,884,506 Derivative assets: Interest rate lock commitments — — 344,128 344,128 Forward purchase contracts — 55,765 — 55,765 Forward sales contracts — 39,597 — 39,597 MBS put options — 13,106 — 13,106 MBS call options — 687 — 687 Swaption purchase contracts — 11,041 — 11,041 Put options on interest rate futures purchase contracts 2,664 — — 2,664 Call options on interest rate futures purchase contracts 2,297 — — 2,297 Total derivative assets before netting 4,961 120,196 344,128 469,285 Netting — — — (98,016) Total derivative assets 4,961 120,196 344,128 371,269 Mortgage servicing rights at fair value — — 3,412,648 3,412,648 Investment in PennyMac Mortgage Investment Trust 1,580 — — 1,580 $ 10,261 $ 7,186,441 $ 7,575,037 $ 14,673,723 Liabilities: Derivative liabilities: Interest rate lock commitments $ — $ — $ 518 $ 518 Forward purchase contracts — 23,274 — 23,274 Forward sales contracts — 68,347 — 68,347 Total derivative liabilities before netting — 91,621 518 92,139 Netting — — — (48,229) Total derivative liabilities — 91,621 518 43,910 Mortgage servicing liabilities at fair value — — 100,091 100,091 $ — $ 91,621 $ 100,609 $ 144,001 December 31, 2020 Level 1 Level 2 Level 3 Total (in thousands) Assets: Short-term investments $ 15,217 $ — $ — $ 15,217 Loans held for sale at fair value — 6,941,231 4,675,169 11,616,400 Derivative assets: Interest rate lock commitments — — 679,961 679,961 Forward purchase contracts — 133,267 — 133,267 Forward sales contracts — 1,451 — 1,451 MBS put options — 14,302 — 14,302 Swaption purchase contracts — 11,939 — 11,939 Put options on interest rate futures purchase contracts 5,520 — — 5,520 Call options on interest rate futures purchase contracts 1,391 — — 1,391 Total derivative assets before netting 6,911 160,959 679,961 847,831 Netting — — — (136,593) Total derivative assets 6,911 160,959 679,961 711,238 Mortgage servicing rights at fair value — — 2,581,174 2,581,174 Investment in PennyMac Mortgage Investment Trust 1,105 — — 1,105 $ 23,233 $ 7,102,190 $ 7,936,304 $ 14,925,134 Liabilities: Excess servicing spread financing payable to PennyMac Mortgage Investment Trust at fair value $ — $ — $ 131,750 $ 131,750 Derivative liabilities: Interest rate lock commitments — — 2,935 2,935 Forward purchase contracts — 1,276 — 1,276 Forward sales contracts — 251,149 — 251,149 Total derivative liabilities before netting — 252,425 2,935 255,360 Netting — — — (212,722) Total derivative liabilities — 252,425 2,935 42,638 Mortgage servicing liabilities at fair value — — 45,324 45,324 $ — $ 252,425 $ 180,009 $ 219,712
Summary of roll forward of items measured using Level 3 inputs on a recurring basis	Quarter ended June 30, 2021 Net interest Mortgage Loans held rate lock servicing Assets for sale commitments (1) rights Total (in thousands) Balance, March 31, 2021 $ 5,202,065 $ 337,940 $ 3,268,910 $ 8,808,915 Purchases and issuances, net 6,828,094 351,934 — 7,180,028 Capitalization of interest and advances 60,439 — — 60,439 Sales and repayments (3,866,340) — — (3,866,340) Mortgage servicing rights resulting from loan sales — — 483,362 483,362 Changes in fair value included in income arising from: Changes in instrument-specific credit risk 179,792 — — 179,792 Other factors — 332,435 (339,624) (7,189) 179,792 332,435 (339,624) 172,603 Transfers from Level 3 to Level 2 (4,585,789) — — (4,585,789) Transfers to loans held for sale — (678,699) — (678,699) Balance, June 30, 2021 $ 3,818,261 $ 343,610 $ 3,412,648 $ 7,574,519 Changes in fair value recognized during the quarter relating to assets still held at June 30, 2021 $ 74,184 $ 343,610 $ (339,624) $ 78,170 (1) For the purpose of this table, the IRLC asset and liability positions are shown net. Quarter ended Liabilities June 30, 2021 (in thousands) Mortgage servicing liabilities: Balance, March 31, 2021 $ 46,026 Mortgage servicing liabilities resulting from loan sales 57,421 Changes in fair value included in income (3,356) Balance, June 30, 2021 $ 100,091 Changes in fair value recognized during the quarter relating to liabilities still outstanding at June 30, 2021 $ (3,356) Quarter ended June 30, 2020 Net interest Repurchase Mortgage Loans held rate lock agreement servicing Assets for sale commitments (1) derivatives rights Total (in thousands) Balance, March 31, 2020 $ 806,587 $ 315,194 $ 8,187 $ 2,193,697 $ 3,323,665 Purchases and issuances, net 288,856 496,149 — — 785,005 Capitalization of interest and advances 14,994 — — — 14,994 Sales and repayments (60,364) — — — (60,364) Mortgage servicing rights resulting from loan sales — — — 225,534 225,534 Changes in fair value included in income arising from: Changes in instrument-specific credit risk 1,132 — — — 1,132 Other factors — 297,198 — (205,692) 91,506 1,132 297,198 — (205,692) 92,638 Transfers from Level 3 to Level 2 (389,486) — — — (389,486) Transfers to loans held for sale — (740,477) — — (740,477) Balance, June 30, 2020 $ 661,719 $ 368,064 $ 8,187 $ 2,213,539 $ 3,251,509 Changes in fair value recognized during the quarter relating to assets still held at June 30, 2020 $ (717) $ 368,064 $ — $ (205,692) $ 161,655 (1) For the purpose of this table, the IRLC asset and liability positions are shown net. Quarter ended June 30, 2020 Excess servicing Mortgage spread servicing Liabilities financing liabilities Total (in thousands) Balance, March 31, 2020 $ 157,109 $ 29,761 $ 186,870 Issuance of excess servicing spread financing pursuant to a recapture agreement with PennyMac Mortgage Investment Trust 483 — 483 Accrual of interest 2,372 — 2,372 Repayments (8,122) — (8,122) Changes in fair value included in income (636) 97 (539) Balance, June 30, 2020 $ 151,206 $ 29,858 $ 181,064 Changes in fair value recognized during the quarter relating to liabilities still outstanding at June 30, 2020 $ (636) $ 97 $ (539) Six months ended June 30, 2021 Net interest Mortgage Loans held rate lock servicing Assets for sale commitments (1) rights Total (in thousands) Balance, December 31, 2020 $ 4,675,169 $ 677,026 $ 2,581,174 $ 7,933,369 Purchases and issuances, net 11,056,535 829,867 — 11,886,402 Capitalization of interest and advances 78,844 — — 78,844 Sales and repayments (4,795,241) — — (4,795,241) Mortgage servicing rights resulting from loan sales — — 953,895 953,895 Changes in fair value included in income arising from: Changes in instrument-specific credit risk 227,946 — — 227,946 Other factors — 152,822 (122,421) 30,401 227,946 152,822 (122,421) 258,347 Transfers from Level 3 to Level 2 (7,424,910) — — (7,424,910) Transfers to real estate acquired in settlement of loans (82) — — (82) Transfers to loans held for sale — (1,316,105) — (1,316,105) Balance, June 30, 2021 $ 3,818,261 $ 343,610 $ 3,412,648 $ 7,574,519 Changes in fair value recognized during the period relating to assets still held at June 30, 2021 $ 135,823 $ 343,610 $ (122,421) $ 357,012 (1) For the purpose of this table, the IRLC asset and liability positions are shown net. Six months ended June 30, 2021 Excess servicing Mortgage spread servicing Liabilities financing liabilities Total (in thousands) Balance, December 31, 2020 $ 131,750 $ 45,324 $ 177,074 Issuance of excess servicing spread financing pursuant to a recapture agreement with PennyMac Mortgage Investment Trust 557 — 557 Accrual of interest 1,280 — 1,280 Repayments (134,624) — (134,624) Mortgage servicing liabilities resulting from loan sales — 64,383 64,383 Changes in fair value included in income 1,037 (9,616) (8,579) Balance, June 30, 2021 $ — $ 100,091 $ 100,091 Changes in fair value recognized during the period relating to liabilities still outstanding at June 30, 2021 $ — $ (9,616) $ (9,616) Six months ended June 30, 2020 Net interest Repurchase Mortgage Loans held rate lock agreement servicing Assets for sale commitments (1) derivatives rights Total (in thousands) Balance, December 31, 2019 $ 383,878 $ 136,650 $ 8,187 $ 2,926,790 $ 3,455,505 Purchases and issuances, net 1,930,087 838,129 — 25,760 2,793,976 Capitalization of interest and advances 33,021 — — — 33,021 Sales and repayments (799,292) — — — (799,292) Mortgage servicing rights resulting from loan sales — — — 507,849 507,849 Changes in fair value included in income arising from: Changes in instrument-specific credit risk (6,391) — — — (6,391) Other factors — 497,116 — (1,246,860) (749,744) (6,391) 497,116 — (1,246,860) (756,135) Transfers from Level 3 to Level 2 (878,893) — — — (878,893) Transfers to real estate acquired in settlement of loans (691) — — — (691) Transfers of interest rate lock commitments to loans held for sale — (1,103,831) — — (1,103,831) Balance, June 30, 2020 $ 661,719 $ 368,064 $ 8,187 $ 2,213,539 $ 3,251,509 Changes in fair value recognized during the period relating to assets still held at June 30, 2020 $ (563) $ 368,064 $ — $ (1,246,860) $ (879,359) (1) For the purpose of this table, the IRLC asset and liability positions are shown net. Six months ended June 30, 2020 Excess servicing Mortgage spread servicing Liabilities financing liabilities Total (in thousands) Balance, December 31, 2019 $ 178,586 $ 29,140 $ 207,726 Issuance of excess servicing spread financing pursuant to a recapture agreement with PennyMac Mortgage Investment Trust 862 — 862 Accrual of interest 4,346 — 4,346 Repayments (17,430) — (17,430) Mortgage servicing liabilities resulting from loan sales — 6,576 6,576 Changes in fair value included in income (15,158) (5,858) (21,016) Balance, June 30, 2020 $ 151,206 $ 29,858 $ 181,064 Changes in fair value recognized during the period relating to liabilities still outstanding at June 30, 2020 $ (15,158) $ (5,858) $ (21,016)
Summary of changes in fair value relating to financial statement items	Quarter ended June 30, 2021 2020 Net gains on Net Net gains on Net loans held loan loans held loan for sale at servicing for sale at servicing fair value fees Total fair value fees Total (in thousands) Assets: Loans held for sale $ 761,841 $ — $ 761,841 $ 739,797 $ — $ 739,797 Mortgage servicing rights — (339,624) (339,624) — (205,692) (205,692) $ 761,841 $ (339,624) $ 422,217 $ 739,797 $ (205,692) $ 534,105 Liabilities: Excess servicing spread financing payable to PennyMac Mortgage Investment Trust $ — $ — $ — $ — $ 636 $ 636 Mortgage servicing liabilities — 3,356 3,356 — (97) (97) $ — $ 3,356 $ 3,356 $ — $ 539 $ 539 Six months ended June 30, 2021 2020 Net gains on Net Net gains on Net loans held loan loans held loan for sale at servicing for sale at servicing fair value fees Total fair value fees Total (in thousands) Assets: Loans held for sale $ 1,411,960 $ — $ 1,411,960 $ 1,138,515 $ — $ 1,138,515 Mortgage servicing rights — (122,421) (122,421) — (1,246,860) (1,246,860) $ 1,411,960 $ (122,421) $ 1,289,539 $ 1,138,515 $ (1,246,860) $ (108,345) Liabilities: Excess servicing spread financing payable to PennyMac Mortgage Investment Trust $ — $ (1,037) $ (1,037) $ — $ 15,158 $ 15,158 Mortgage servicing liabilities — 9,616 9,616 — 5,858 5,858 $ — $ 8,579 $ 8,579 $ — $ 21,016 $ 21,016
Schedule of fair value and related principal amounts due upon maturity of assets and liabilities accounted for under the fair value option	June 30, 2021 December 31, 2020 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 $ 10,526,148 $ 10,079,813 $ 446,335 $ 11,304,308 $ 10,743,814 $ 560,494 90 days or more delinquent: Not in foreclosure 330,472 327,869 2,603 275,419 280,595 (5,176) In foreclosure 27,886 31,253 (3,367) 36,673 39,529 (2,856) $ 10,884,506 $ 10,438,935 $ 445,571 $ 11,616,400 $ 11,063,938 $ 552,462
Summary of financial statement items measured at estimated fair value on a nonrecurring basis	Real estate acquired in settlement of loans Level 1 Level 2 Level 3 Total (in thousands) June 30, 2021 $ — $ — $ 2,863 $ 2,863 December 31, 2020 $ — $ — $ 1,450 $ 1,450
Summary of total gains (losses) on assets measured at estimated fair values on a nonrecurring basis	Quarter ended June 30, Six months ended June 30, 2021 2020 2021 2020 (in thousands) Real estate acquired in settlement of loans $ (434) $ (1,001) $ (743) $ (2,283)
Summary of carrying value and fair value of debt	June 30, 2021 December 31, 2020 Fair value Carrying value Fair value Carrying value (in thousands) Notes payable secured by mortgage servicing assets $ 1,298,603 $ 1,296,731 $ 1,268,304 $ 1,295,840 Unsecured senior notes $ 1,309,750 $ 1,288,769 $ 685,750 $ 645,820
Quantitative summary of key inputs or assumptions used in the valuation of financial statement items, excluding MSR purchases	Quarter ended June 30, Six months ended June 30, 2021 2020 2021 2020 (Amount recognized and unpaid principal balance of underlying loans in thousands) MSR and pool characteristics: Amount recognized $ 483,362 $ 225,534 $ 953,895 $ 507,849 Unpaid principal balance of underlying loans $ 36,830,098 $ 20,066,302 $ 71,773,352 $ 38,396,686 Weighted average servicing fee rate (in basis points) 33 36 33 38 Key inputs (1): Pricing spread (2): Range 6.0% – 16.9% 8.1% – 18.1% 6.0% – 16.9% 6.8% – 18.1% Weighted average 8.9% 9.9% 9.2% 9.1% Annual total prepayment speed (3): Range 6.7% – 17.7% 8.8% – 29.1% 6.2% – 16.7% 8.8% – 49.8% Weighted average 8.5% 13.0% 8.1% 13.7% Equivalent average life (in years): Range 4.0 – 8.8 2.9 – 8.1 4.1 – 9.0 1.5 – 8.1 Weighted average 8.1 6.3 8.3 6.1 Per-loan annual cost of servicing: Range $80 – $117 $79 – $110 $81 – $117 $77 – $110 Weighted average $104 $101 $104 $99 (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) Annual total prepayment speed is measured using Life Total CPR, which includes both voluntary and involuntary prepayments. Equivalent average life is provided for informational purposes.
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 of the Company’s MSRs and the effect on the fair value from adverse changes in those inputs: June 30, 2021 December 31, 2020 (Fair value, unpaid principal balance of underlying loans and effect on fair value amounts in thousands) Fair value $ 3,412,648 $ 2,581,174 Pool characteristics: Unpaid principal balance of underlying loans $ 252,475,400 $ 238,410,809 Weighted average note interest rate 3.3% 3.6% Weighted average servicing fee rate (in basis points) 34 35 Key inputs (1): Pricing spread (2): Range 6.3% – 16.1% 8.0% – 17.6% Weighted average 8.4% 10.1% Effect on fair value of: 5% adverse change ($56,330) ($46,356) 10% adverse change ($110,804) ($90,936) 20% adverse change ($214,519) ($175,137) Annual total prepayment speed (3): Range 7.9% – 29.1% 10.1% – 32.9% Weighted average 10.5% 13.7% Equivalent average life (in years): Range 3.0 – 7.8 2.3 – 7.7 Weighted average 6.9 6.0 Effect on fair value of: 5% adverse change ($72,028) ($66,536) 10% adverse change ($141,434) ($130,253) 20% adverse change ($272,904) ($249,843) Annual per-loan cost of servicing: Range $79 – $117 $79 – $117 Weighted average $107 $107 Effect on fair value of: 5% adverse change ($31,198) ($25,482) 10% adverse change ($62,395) ($50,964) 20% adverse change ($124,790) ($101,929) (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) Annual total prepayment speed is measured using Life Total CPR, which includes both voluntary and involuntary prepayments. Equivalent average life is provided for informational purposes.
Mortgage servicing liabilities
Fair Value
Quantitative summary of key inputs or assumptions used in the valuation of financial statement items	June 30, December 31, 2021 2020 Fair value (in thousands) $ 100,091 $ 45,324 Pool characteristics: Unpaid principal balance of underlying loans (in thousands) $ 6,135,249 $ 2,857,492 Servicing fee rate (in basis points) 25 25 Key inputs: Pricing spread (1) 7.7% 7.6% Annual total prepayment speed (2) 31.8% 33.3% Equivalent average life (in years) 3.5 3.2 Annual per-loan cost of servicing $ 278 $ 305 (1) The Company applies a pricing spread to the United States Dollar LIBOR/swap curve for purposes of discounting cash flows relating to MSLs. (2) Annual total prepayment speed is measured using Life Total CPR, which includes both voluntary and involuntary prepayments. Equivalent average life is provided for informational purposes.
Excess servicing spread financing
Fair Value
Quantitative summary of key inputs or assumptions used in the valuation of financial statement items	December 31, 2020 Fair value (in thousands) $ 131,750 Pool characteristics: Unpaid principal balance of underlying loans (in thousands) $ 15,833,050 Average servicing fee rate (in basis points) 34 Average excess servicing spread (in basis points) 19 Key inputs (1): Pricing spread (2): Range 4.9% – 5.3% Weighted average 5.1% Annual total prepayment speed (3): Range 9.6% – 18.3% Weighted average 11.7% Equivalent average life (in years): Range 2.3 – 6.6 Weighted average 5.8 (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) Annual total prepayment speed is measured using Life Total CPR, which includes both voluntary and involuntary prepayments. Equivalent average life is provided for informational purposes.
Interest rate lock commitments
Fair Value
Quantitative summary of key inputs or assumptions used in the valuation of financial statement items	June 30, 2021 December 31, 2020 Fair value (in thousands) $ 343,610 $ 677,026 Key inputs Pull-through rate: Range 8.0% – 100% 10.1% – 100% Weighted average 82.7% 82.7% Mortgage servicing rights value expressed as: Servicing fee multiple: Range (14.7) – 6.5 0.7 – 5.3 Weighted average 3.6 3.6 Percentage of loan commitment amount Range (2.1)% – 3.1% 0.1% – 2.6% Weighted average 1.2% 1.2% (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	June 30, 2021 December 31, 2020 Fair value (in thousands) $ 3,818,261 $ 4,675,169 Key inputs (1): Discount rate: Range 2.0% – 9.2% 2.8% – 9.2% Weighted average 2.0% 2.8% Twelve-month projected housing price index change: Range 4.8% – 5.3% 2.7% – 3.5% Weighted average 5.1% 3.0% Voluntary prepayment/resale speed (2): Range 0.4% – 26.8% 0.4% – 31.3% Weighted average 22.0% 21.9% Total prepayment speed (3): Range 0.4% – 37.6% 0.5% – 42.9% Weighted average 28.8% 29.2% (1) Weighted average inputs are based on the fair value of the “Level 3” 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, which includes both voluntary and involuntary prepayment and resale rates.

Loans Held for Sale at Fair V_2

Loans Held for Sale at Fair Value (Tables)	6 Months Ended
Loans Held for Sale at Fair Value (Tables)	Jun. 30, 2021
Loans Held for Sale at Fair Value
Summary of loans held for sale at fair value	June 30, December 31, Loan type 2021 2020 (in thousands) Government-insured or guaranteed $ 5,115,678 $ 5,683,786 Conventional conforming 1,950,567 1,257,445 Purchased from Ginnie Mae pools serviced by the Company 3,789,022 4,661,378 Repurchased pursuant to representations and warranties 29,239 13,791 $ 10,884,506 $ 11,616,400 Fair value of loans pledged to secure: Assets sold under agreements to repurchase $ 9,917,262 $ 10,912,178 Mortgage loan participation purchase and sale agreements 533,864 545,500 $ 10,451,126 $ 11,457,678

Derivative Financial Instrume_2

Derivative Financial Instruments (Tables)	6 Months Ended
Derivative Financial Instruments (Tables)	Jun. 30, 2021
Derivative Financial Instruments
Summary of derivative financial instruments	June 30, 2021 December 31, 2020 Fair value Fair value Notional Derivative Derivative Notional Derivative Derivative Instrument amount (1) assets liabilities amount (1) assets liabilities (in thousands) Not subject to master netting arrangements: Interest rate lock commitments 13,879,343 $ 344,128 $ 518 20,624,535 $ 679,961 $ 2,935 Used for hedging purposes (2): Forward purchase contracts 24,712,770 55,765 23,274 31,689,543 133,267 1,276 Forward sales contracts 37,785,066 39,597 68,347 50,438,967 1,451 251,149 MBS put options 11,450,000 13,106 — 12,025,000 14,302 — MBS call options 750,000 687 — — — — Swaption purchase contracts 5,455,000 11,041 — 3,375,000 11,939 — Put options on interest rate futures purchase contracts 3,450,000 2,664 — 4,750,000 5,520 — Call options on interest rate futures purchase contracts 350,000 2,297 — 850,000 1,391 — Treasury futures purchase contracts 705,000 — — 1,065,000 — — Treasury futures sale contracts 1,480,000 — — 1,555,000 — — Interest rate swap futures purchase contracts 4,040,000 — — 4,801,700 — — Interest rate swap futures sale contracts 250,000 — — 711,700 — — Total derivatives before netting 469,285 92,139 847,831 255,360 Netting (98,016) (48,229) (136,593) (212,722) $ 371,269 $ 43,910 $ 711,238 $ 42,638 Deposits (received from) placed with derivative counterparties, net $ (49,787) $ 76,129 (1) Notional amounts provide an indication of the volume of the Company’s derivative activity. (2) All of the derivatives used for hedging purposes are interest rate derivatives and are used as economic hedges.
Summaries of derivative assets and related netting amounts	June 30, 2021 December 31, 2020 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 - IRLCs $ 344,128 $ — $ 344,128 $ 679,961 $ — $ 679,961 Derivatives subject to master netting arrangements: Forward purchase contracts 55,765 — 55,765 133,267 — 133,267 Forward sale contracts 39,597 — 39,597 1,451 — 1,451 MBS put options 13,106 — 13,106 14,302 — 14,302 MBS call options 687 — 687 — — — Swaption purchase contracts 11,041 — 11,041 11,939 — 11,939 Put options on interest rate futures purchase contracts 2,664 — 2,664 5,520 — 5,520 Call options on interest rate futures purchase contracts 2,297 — 2,297 1,391 — 1,391 Netting — (98,016) (98,016) — (136,593) (136,593) 125,157 (98,016) 27,141 167,870 (136,593) 31,277 $ 469,285 $ (98,016) $ 371,269 $ 847,831 $ (136,593) $ 711,238
Summary of the amount of derivative asset positions by significant counterparty after considering master netting arrangements and financial instruments or cash pledged	June 30, 2021 December 31, 2020 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 $ 344,128 $ — $ — $ 344,128 $ 679,961 $ — $ — $ 679,961 JPMorgan Chase Bank, N.A. 11,325 — — 11,325 17,149 — — 17,149 Bank of America, N.A. 5,972 — — 5,972 — — — — RJ O'Brien 4,961 — — 4,961 6,910 — — 6,910 Barclays Capital 3,166 — — 3,166 — — — — Morgan Stanley Bank, N.A. — — — — 2,443 — — 2,443 Citibank, N.A. — — — — 2,026 — — 2,026 Others 1,717 — — 1,717 2,749 — — 2,749 $ 371,269 $ — $ — $ 371,269 $ 711,238 $ — $ — $ 711,238
Summary of net derivative liabilities and assets sold under agreements to repurchase and related netting amounts	June 30, 2021 December 31, 2020 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 – $ 518 $ — $ 518 $ 2,935 $ — $ 2,935 Derivatives subject to a master netting arrangement: Forward purchase contracts 23,274 — 23,274 1,276 — 1,276 Forward sale contracts 68,347 — 68,347 251,149 — 251,149 Netting — (48,229) (48,229) — (212,722) (212,722) 91,621 (48,229) 43,392 252,425 (212,722) 39,703 Total derivatives 92,139 (48,229) 43,910 255,360 (212,722) 42,638 Assets sold under agreements to repurchase: Amount outstanding 8,262,251 — 8,262,251 9,663,995 — 9,663,995 Unamortized debt issuance cost (7,708) — (7,708) (9,198) — (9,198) 8,254,543 — 8,254,543 9,654,797 — 9,654,797 $ 8,346,682 $ (48,229) $ 8,298,453 $ 9,910,157 $ (212,722) $ 9,697,435
Summary of amount of derivative liabilities and assets sold under agreements to repurchase by significant counterparty after considering master netting arrangements and financial instruments or cash pledged	June 30, 2021 December 31, 2020 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 $ 518 $ — $ — $ 518 $ 2,935 $ — $ — $ 2,935 JPMorgan Chase Bank, N.A. 2,214,762 (2,214,762) — — 2,752,279 (2,752,279) — — Credit Suisse First Boston Mortgage Capital LLC 1,873,730 (1,866,023) — 7,707 3,947,752 (3,943,149) — 4,603 Bank of America, N.A. 1,053,871 (1,053,871) — — 634,523 (626,550) — 7,973 Goldman Sachs 788,182 (788,182) — — — — — — Royal Bank of Canada 728,898 (728,898) — — 406,348 (406,348) — — BNP Paribas 372,377 (372,377) — — 337,823 (336,545) — 1,278 Morgan Stanley Bank, N.A. 353,729 (353,729) — — 331,546 (331,546) — — Barclays Capital 348,272 (348,272) — — 596,729 (596,729) — — Wells Fargo Bank, N.A. 349,852 (342,509) — 7,343 169,085 (165,224) — 3,861 Citibank, N.A. 204,515 (193,628) — 10,887 505,625 (505,625) — — Mizuho Securities 14,225 — — 14,225 6,491 — — 6,491 Federal Home Loan Mortgage Corporation — — — — 12,928 — — 12,928 Others 3,230 — — 3,230 2,569 — — 2,569 $ 8,306,161 $ (8,262,251) $ — $ 43,910 $ 9,706,633 $ (9,663,995) $ — $ 42,638
Summary of gains (losses) recognized on derivative financial instruments and the respective income statement line items	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 June 30, Six months ended June 30, Derivative activity Income statement line 2021 2020 2021 2020 (in thousands) Interest rate lock commitments Net gains on loans held for sale at fair value (1) $ 5,670 $ 52,871 $ (333,416) $ 231,414 Hedged item: Interest rate lock commitments and loans held for sale Net gains on loans held for sale at fair value $ (167,734) $ (101,115) $ 294,804 $ (326,672) Mortgage servicing rights Net loan servicing fees – $ 91,118 $ (15,764) $ (351,033) $ 1,020,806 (1) Represents net increase (decrease) in fair value of IRLCs from the beginning to the end of the period. Amounts recognized at the date of commitment and fair value changes recognized during the period until purchase of the underlying loans are shown in the rollforward of IRLCs for the period in Note 6 – Fair Value – Assets and Liabilities Measured at Fair Value on a Recurring Basis.

Mortgage Servicing Rights and_2

Mortgage Servicing Rights and Mortgage Servicing Liabilities (Tables)	6 Months Ended
	Jun. 30, 2021
Mortgage Servicing Rights and Mortgage Servicing Liabilities
Schedule of activity in MSRs carried at fair value	Quarter ended June 30, Six months ended June 30, 2021 2020 2021 2020 (in thousands) Balance at beginning of period $ 3,268,910 $ 2,193,697 $ 2,581,174 $ 2,926,790 Additions: Resulting from loan sales 483,362 225,534 953,895 507,849 Purchases — — — 25,760 483,362 225,534 953,895 533,609 Change in fair value due to: Changes in valuation inputs used in valuation model (1) (239,514) (98,681) 73,376 (1,014,543) Other changes in fair value (2) (100,110) (107,011) (195,797) (232,317) Total change in fair value (339,624) (205,692) (122,421) (1,246,860) Balance at end of period $ 3,412,648 $ 2,213,539 $ 3,412,648 $ 2,213,539 June 30, December 31, 2021 2020 (in thousands) Fair value of mortgage servicing rights pledged to secure Assets sold under agreements to repurchase Notes payable secured by mortgage servicing assets $ 3,408,088 $ 2,577,964 (1) Principally reflects changes in discount rate, prepayment speed and servicing cost inputs. (2) Represents changes due to realization of cash flows.
Schedule of activity in mortgage servicing liability carried at fair value	Quarter ended June 30, Six months ended June 30, 2021 2020 2021 2020 (in thousands) Balance at beginning of period $ 46,026 $ 29,761 $ 45,324 $ 29,140 Mortgage servicing liabilities resulting from loan sales 57,421 — 64,383 6,576 Changes in fair value due to: Changes in valuation inputs used in valuation model (1) 11,083 9,673 17,847 14,105 Other changes in fair value (2) (14,439) (9,576) (27,463) (19,963) Total change in fair value (3,356) 97 (9,616) (5,858) Balance at end of period $ 100,091 $ 29,858 $ 100,091 $ 29,858 (1) Principally reflects changes in expected borrower performance and servicer losses given default. (2) Represents changes due to realization of cash flows.
Summary of servicing fees, late fees and ancillary and other fees relating to MSRs recorded on the consolidated statements of income	Quarter ended June 30, Six months ended June 30, 2021 2020 2021 2020 (in thousands) Contractual servicing fees $ 208,275 $ 199,178 $ 419,028 $ 397,831 Other fees: Late charges 6,665 8,490 14,596 21,103 Other 7,768 5,971 15,622 10,821 $ 222,708 $ 213,639 $ 449,246 $ 429,755

Leases (Tables)

Leases (Tables)	6 Months Ended
Leases (Tables)	Jun. 30, 2021
Leases
Summary of Company's leases	Quarter ended June 30, Six months ended June 30, 2021 2020 2021 2020 (dollars in thousands) Lease expense: Operating leases $ 4,508 $ 4,034 $ 8,874 $ 7,966 Short-term leases 420 224 470 480 Net lease expense included in Occupancy and equipment $ 4,928 $ 4,258 $ 9,344 $ 8,446 Other information: Payments for operating leases $ 5,149 $ 4,354 $ 10,185 $ 8,794 Operating lease right-of-use assets $ 4,570 $ 4,964 $ 7,813 $ 6,498 Period end weighted averages: Remaining lease term (in years) 5.9 6.6 Discount rate 4.1% 4.2%
Schedule of maturities of operating lease liabilities	Twelve months ended June 30, Operating leases (in thousands) 2022 $ 19,401 2023 18,968 2024 17,503 2025 15,929 2026 14,324 Thereafter 20,945 Total lease payments 107,070 Less imputed interest (10,607) Operating lease liability $ 96,463

Other Assets (Tables)

Other Assets (Tables)	6 Months Ended
Other Assets (Tables)	Jun. 30, 2021
Other Asset
Summary of other assets	June 30, December 31, 2021 2020 (in thousands) Margin deposits $ 103,863 $ 116,881 Capitalized software, net 91,712 81,434 Prepaid expenses 57,800 53,975 Deposits securing Assets sold under agreements to repurchase Notes payable secured by mortgage servicing assets 49,934 153,054 Net servicing fee receivables 31,012 42,282 Furniture, fixture, equipment and building improvements, net 32,887 32,217 Real estate acquired in settlement of loans 8,548 12,158 Other 236,517 200,168 $ 612,273 $ 692,169 Deposits pledged to secure Assets sold under agreements to repurchase Notes payable secured by mortgage servicing assets $ 49,934 $ 153,054 Assets pledged to secure Obligations under capital lease Capitalized software, net 6,024 7,675 Furniture, fixture, equipment and building improvements, net 4,899 5,689 $ 60,857 $ 166,418

Short-Term Borrowings (Tables)

Short-Term Borrowings (Tables)	6 Months Ended
Short-Term Borrowings (Tables)	Jun. 30, 2021
Short-Term Borrowings
Summary of financial data pertaining to assets sold under agreements to repurchase	Quarter ended June 30, Six months ended June 30, 2021 2020 2021 2020 (dollars in thousands) Average balance of assets sold under agreements to repurchase $ 7,571,340 $ 2,529,217 $ 7,999,580 $ 2,833,444 Weighted average interest rate (1) 2.07 % 2.32 % 2.13 % 2.74 % Total interest expense $ 44,623 $ 17,487 $ 96,802 $ 43,171 Maximum daily amount outstanding $ 10,856,677 $ 3,769,495 $ 10,856,677 $ 3,769,495 June 30, December 31, 2021 2020 (dollars in thousands) Carrying value: Unpaid principal balance $ 8,262,251 $ 9,663,995 Unamortized debt issuance costs (7,708) (9,198) $ 8,254,543 $ 9,654,797 Weighted average interest rate 1.86 % 1.90 % Available borrowing capacity (2): Committed $ 666,772 $ 372,803 Uncommitted 6,695,976 2,163,202 $ 7,362,748 $ 2,536,005 Fair value of assets securing repurchase agreements: Loans held for sale $ 9,917,262 $ 10,912,178 Assets purchased from PennyMac Mortgage Investment Trust under agreements to resell $ — $ 80,862 Servicing advances (3) $ 311,896 $ 413,484 Mortgage servicing rights (3) $ 3,209,383 $ 2,490,267 Deposits (3) $ 49,934 $ 153,054 Margin deposits placed with counterparties (4) $ 10,875 $ 5,625 (1) Excludes the effect of amortization of net issuance costs and utilization fees of $5.3 million and $2.8 million for the quarters ended June 30, 2021 and 2020, respectively, and $11.8 million and $4.4 million for the six months ended June 30, 2021 and 2020, respectively. (2) 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. (3) Beneficial interests in the Ginnie Mae MSRs, servicing advances and deposits are pledged to the Issuer Trust and together serve as the collateral backing the VFN, GMSR Servicing Advance Notes, and the Term Notes described in Note 13 – Long-Term Debt - Notes payable secured by mortgage servicing assets . The VFN financing and the GMSR Servicing Advance Notes are included in Assets sold under agreements to repurchase and the Term Notes are included in Notes payable secured by mortgage servicing assets on the Company's consolidated balance sheets. (4) Margin deposits are included in Other assets on the Company’s consolidated balance sheets.
Summary of maturities of outstanding advances under repurchase agreements by maturity date	Remaining maturity at June 30, 2021 Unpaid principal balance (dollars in thousands) Within 30 days $ 3,532,563 Over 30 to 90 days 3,396,557 Over 90 to 180 days 987,861 Over 180 days to one year 295,270 Over one year to two year 50,000 Total assets sold under agreements to repurchase $ 8,262,251 Weighted average maturity (in months) 2.2
Summary of amount at risk relating to the assets sold under agreements to repurchase by counterparty	Weighted average Counterparty Amount at risk maturity of advances Facility maturity (in thousands) Credit Suisse First Boston Mortgage Capital LLC (1) $ 2,126,158 March 31, 2023 March 31, 2023 Credit Suisse First Boston Mortgage Capital LLC $ 724,309 August 18, 2021 March 31, 2023 Bank of America, N.A. $ 397,300 July 31, 2021 June 7, 2023 JP Morgan Chase Bank, N.A. $ 207,772 August 3, 2021 September 30, 2022 JP Morgan Chase Bank, N.A. $ 1,891 August 6, 2021 June 6, 2023 BNP Paribas $ 124,512 July 18, 2021 July 30, 2021 Goldman Sachs $ 77,468 October 8, 2021 December 23, 2022 Royal Bank of Canada $ 55,641 September 26, 2021 June 14, 2022 Morgan Stanley Bank, N.A. $ 44,701 August 28, 2021 November 2, 2022 Barclays Bank PLC $ 41,978 August 26, 2021 November 3, 2022 Wells Fargo Bank, N.A. $ 20,750 September 16, 2021 October 6, 2022 Citibank, N.A. $ 11,835 August 3, 2021 August 3, 2021 (1) The calculation of the amount at risk includes the VFN and the Term Notes because 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, and the Term Notes described in Notes payable secured by mortgage servicing assets below. The VFN financing is included in Assets sold under agreements to repurchase and the Term Notes are included in Notes payable secured by mortgage servicing assets on the Company's consolidated balance sheets.
Summary of participating mortgage loans	Quarter ended June 30, Six months ended June 30, 2021 2020 2021 2020 (dollars in thousands) Average balance $ 254,343 $ 240,119 $ 265,390 $ 243,965 Weighted average interest rate (1) 1.36 % 1.53 % 1.35 % 2.09 % Total interest expense $ 1,039 $ 1,061 $ 2,134 $ 2,871 Maximum daily amount outstanding $ 528,844 $ 540,977 $ 528,844 $ 540,977 (1) Excludes the effect of amortization of debt issuance costs totaling $172,000 and $145,000 for the quarters ended June 30, 2021 and 2020, respectively, and $344,000 and $318,000 for the six months ended June 30, 2021 and 2020, respectively. June 30, December 31, 2021 2020 (dollars in thousands) Carrying value: Unpaid principal balance $ 512,253 $ 521,477 Unamortized debt issuance costs — — $ 512,253 $ 521,477 Weighted average interest rate 1.48 % 1.39 % Fair value of loans pledged to secure mortgage loan participation purchase and sale agreements $ 533,864 $ 545,500

Long-Term Debt (Tables)

Long-Term Debt (Tables)	6 Months Ended
Long-Term Debt (Tables)	Jun. 30, 2021
Long-Term Debt.
Summary of obligations under capital lease	Quarter ended June 30, Six months ended June 30, 2021 2020 2021 2020 (dollars in thousands) Average balance $ 9,072 $ 17,272 $ 10,169 $ 18,367 Weighted average interest rate 2.10 % 2.70 % 2.12 % 3.05 % Total interest expense $ 48 $ 104 $ 107 $ 271 Maximum daily amount outstanding $ 10,468 $ 18,145 $ 11,864 $ 20,810 June 30, December 31, 2021 2020 (dollars in thousands) Unpaid principal balance $ 7,677 $ 11,864 Weighted average interest rate 2.07 % 2.15 % Assets pledged to secure obligations under capital lease: Capitalized software $ 6,024 $ 7,675 Furniture, fixtures and equipment $ 4,899 $ 5,689
Summary of term notes issued	Issuance date Principal balance Stated interest rate (1) Stated maturity date (2) (in thousands) (Annual) February 28, 2018 (the "GT1 Notes") $ 650,000 2.85% 2/25/2023 August 10, 2018 (the "GT2 Notes") 650,000 2.65% 8/25/2023 $ 1,300,000 (1) Spread over one-month LIBOR. (2) The Term Notes’ indentures provide the Company with the option to extend the maturity of the Term Notes by two years after the stated maturity .
Summary of note payable	Quarter ended June 30, Six months ended June 30, 2021 2020 2021 2020 (dollars in thousands) Average balance $ 1,300,000 $ 1,300,000 $ 1,300,000 $ 1,300,000 Weighted average interest rate (1) 2.91 % 3.28 % 2.90 % 3.86 % Total interest expense $ 10,104 $ 11,109 $ 19,992 $ 25,955 (1) Excludes the effect of amortization of debt issuance costs totaling $634,000 and $451,000 for the quarters ended June 30, 2021 and 2020, respectively, and $1.2 million and $896,000 for the six months ended June 30, 2021 and 2020, respectively. June 30, December 31, 2021 2020 (dollars in thousands) Carrying value: Unpaid principal balance $ 1,300,000 $ 1,300,000 Unamortized debt issuance costs (3,269) (4,160) $ 1,296,731 $ 1,295,840 Weighted average interest rate 2.84 % 2.93 % Assets pledged to secure notes payable (1): Servicing advances $ 311,896 $ 413,484 Mortgage servicing rights $ 3,164,980 $ 2,421,326 Deposits $ 49,934 $ 153,054 (1) Beneficial interests in the Ginnie Mae MSRs, servicing advances and deposits are pledged to the Issuer Trust and together serve as the collateral backing the VFN, GMSR Servicing Advance Notes and the Term Notes. The VFN financing and the GMSR Servicing Advance Notes are included in Assets sold under agreements to repurchase and the Term Notes are included in Notes payable secured by mortgage servicing assets on the Company's consolidated balance sheets.
Summary of Unsecured Notes issued	Issuance date Principal balance Coupon interest rate Maturity date (in thousands) (Annual) September 29, 2020 $ 500,000 5.38% October 15, 2025 October 19, 2020 150,000 5.38% October 15, 2025 February 11, 2021 650,000 4.25% February 15, 2029 $ 1,300,000 Before October 15, 2022 or February 15, 2024 for the Unsecured Notes issued during 2020 and 2021, respectively, the Company may, at its option redeem earlier in accordance with the terms of the Unsecured Notes:
Summary of unsecured notes payable	Quarter ended Six months ended June 30, 2021 June 30, 2021 (dollars in thousands) Average balance $ 1,300,000 $ 1,152,762 Weighted average interest rate (1) 4.81 % 4.81 % Total interest expense $ 16,169 $ 28,839 (1) Excludes the effect of amortization of debt issuance costs of $571,000 and $918,000 for the quarter and six months ended June 30, 2021, respectively. June 30, December 31, 2021 2020 (dollars in thousands) Carrying value: Unpaid principal balance $ 1,300,000 $ 650,000 Unamortized debt issuance costs, net of issuance premiums (11,231) (4,180) $ 1,288,769 $ 645,820 Weighted average interest rate 4.81 % 5.38 %
Summary of maturities of Long-Term Debt	Twelve months ended June 30, 2022 2023 2024 2025 2026 Thereafter Total (in thousands) Obligations under capital lease $ 7,677 $ — $ — $ — $ — $ — $ 7,677 Notes payable secured by mortgage servicing assets — 650,000 650,000 — — — 1,300,000 Unsecured Notes — — — — 650,000 650,000 1,300,000 Total $ 7,677 $ 650,000 $ 650,000 $ — $ 650,000 $ 650,000 $ 2,607,677

Liability for Losses Under Re_2

Liability for Losses Under Representations and Warranties (Tables)	6 Months Ended
	Jun. 30, 2021
Liability for Losses Under Representations and Warranties
Summary of repurchase activity	Quarter ended June 30, Six months ended June 30, 2021 2020 2021 2020 (in thousands) Balance at beginning of period $ 38,428 $ 23,202 $ 32,688 $ 21,446 Provision for losses on loans sold: Resulting from sales of loans 10,304 4,189 20,357 7,901 Reduction in liability due to change in estimate (3,640) (1,270) (7,325) (2,946) Losses incurred, net (757) (212) (1,385) (492) Balance at end of period $ 44,335 $ 25,909 $ 44,335 $ 25,909 Unpaid principal balance of loans subject to representations and warranties at end of period $ 234,327,924 $ 192,064,630

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	6 Months Ended
Stockholders' Equity (Tables)	Jun. 30, 2021
Stockholders' Equity.
Summary of share repurchase activity	Quarter ended June 30, Six months ended June 30, Cumulative 2021 2020 2021 2020 total (1) (in thousands) Shares of common stock repurchased 2,574 6,975 7,227 7,213 16,933 Cost of shares of common stock repurchased $ 154,920 $ 237,162 $ 443,439 $ 241,283 $ 795,866 (1) Amounts represent the total shares of common stock repurchased under the stock repurchase program from inception through June 30, 2021 .

Net Gains on Loans Held for S_2

Net Gains on Loans Held for Sale (Tables)	6 Months Ended
Net Gains on Loans Held for Sale (Tables)	Jun. 30, 2021
Net Gains on Loans Held for Sale
Net Gains on Loans Held for Sale	Quarter ended June 30, Six months ended June 30, 2021 2020 2021 2020 (in thousands) From non-affiliates: Cash gains: Loans $ 387,305 $ 502,416 $ 470,017 $ 614,173 Hedging activities (325,651) (227,013) 410,574 (349,679) 61,654 275,403 880,591 264,494 Non-cash gains: Mortgage servicing rights and mortgage servicing liabilities resulting from loan sales 425,941 225,534 889,512 501,273 Provisions for losses relating to representations and warranties: Pursuant to loan sales (10,304) (4,189) (20,357) (7,901) Reductions in liability due to change in estimate 3,640 1,270 7,325 2,946 Changes in fair values of loans and derivatives held at period end: Interest rate lock commitments 5,670 52,871 (333,416) 231,414 Loans (50,322) 10,978 54,900 (61,102) Hedging derivatives 157,917 125,898 (115,770) 23,007 594,196 687,765 1,362,785 954,131 From PennyMac Mortgage Investment Trust (1) (11,548) (5,592) (25,796) 72,324 $ 582,648 $ 682,173 $ 1,336,989 $ 1,026,455

Net Interest (Expense) Income (

Net Interest (Expense) Income (Tables)	6 Months Ended
Net Interest (Expense) Income (Tables)	Jun. 30, 2021
Net Interest (Expense) Income
Summary of net interest (expense) income	Quarter ended June 30, Six months ended June 30, 2021 2020 2021 2020 (in thousands) Interest income: From non-affiliates: Cash and short-term investments $ 747 $ 1,893 $ 1,734 $ 3,604 Loans held for sale at fair value 76,453 32,586 151,277 79,012 Placement fees relating to custodial funds 3,597 12,047 9,480 35,256 80,797 46,526 162,491 117,872 From PennyMac Mortgage Investment Trust—Assets purchased from PennyMac Mortgage Investment Trust under agreements to resell — 792 387 2,010 80,797 47,318 162,878 119,882 Interest expense: To non-affiliates: Assets sold under agreements to repurchase 44,623 17,487 96,802 43,171 Mortgage loan participation purchase and sale agreements 1,039 1,061 2,134 2,871 Obligations under capital lease 48 104 107 271 Notes payable secured by mortgage servicing assets 10,104 11,109 19,992 25,955 Unsecured senior notes 16,169 — 28,839 — Corporate revolving line of credit — 472 — 975 Interest shortfall on repayments of mortgage loans serviced for Agency securitizations 29,144 18,954 58,580 33,825 Interest on mortgage loan impound deposits 1,304 1,648 2,410 3,305 102,431 50,835 208,864 110,373 To PennyMac Mortgage Investment Trust—Excess servicing spread financing at fair value — 2,372 1,280 4,346 102,431 53,207 210,144 114,719 $ (21,634) $ (5,889) $ (47,266) $ 5,163

Stock-based Compensation (Table

Stock-based Compensation (Tables)	6 Months Ended
Stock-based Compensation (Tables)	Jun. 30, 2021
Stock-based Compensation
Summary of the stock-based compensation activity	Quarter ended June 30, Six months ended June 30, 2021 2020 2021 2020 (in thousands) Grants: Units: Performance-based restricted share units ("RSUs") — — 310 422 Stock options — — 249 273 Time-based RSUs — 5 171 310 Grant date fair value: Performance-based RSUs $ — $ — $ 18,237 $ 14,788 Stock options — — 5,116 2,770 Time-based RSUs — 150 10,066 10,823 Total $ — $ 150 $ 33,419 $ 28,381 Vestings and exercises: Performance-based RSUs vested — — 640 603 Stock options exercised 97 144 185 324 Time-based RSUs vested 2 — 307 348 Compensation expense $ 8,894 $ 6,757 $ 19,771 $ 19,125

Earnings Per Share of Common _2

Earnings Per Share of Common Stock (Tables)	6 Months Ended
Earnings Per Share of Common Stock (Tables)	Jun. 30, 2021
Earnings Per Share of Common Stock
Summary of basic and diluted earnings per share calculations	Quarter ended June 30, Six months ended June 30, 2021 2020 2021 2020 (in thousands, except per share amounts) Net income $ 204,229 $ 352,677 $ 581,097 $ 658,920 Weighted average basic shares of common stock outstanding 65,890 77,790 67,493 78,240 Effect of dilutive securities: Common shares issuable under stock-based compensation plan 3,509 2,634 3,755 3,001 Weighted average shares of common stock applicable to diluted earnings per share 69,399 80,424 71,248 81,241 Basic earnings per share of common stock $ 3.10 $ 4.53 $ 8.61 $ 8.42 Diluted earnings per share of common stock $ 2.94 $ 4.39 $ 8.16 $ 8.11
Schedule of anti-dilutive shares outstanding	Quarter ended June 30, Six months ended June 30, 2021 2020 2021 2020 (in thousands except for weighted-average exercise price) Performance-based RSUs (1) 308 422 215 292 Time-based RSUs — 79 — 110 Stock options (2) 249 273 173 189 Total anti-dilutive shares and units 557 774 388 591 Weighted average exercise price of anti-dilutive stock options (2) $ 58.85 $ 35.03 $ 58.85 $ 35.03 (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 Inform_2

Supplemental Cash Flow Information (Tables)	6 Months Ended
Supplemental Cash Flow Information (Tables)	Jun. 30, 2021
Supplemental Cash Flow Information
Schedule of supplemental cash flow information	Six months ended June 30, 2021 2020 (in thousands) Cash paid for interest $ 208,015 $ 127,806 Cash paid for income taxes, net $ 257,074 $ 3,871 Non-cash investing activity: Mortgage servicing rights resulting from loan sales $ 953,895 $ 507,849 Unsettled portion of MSR acquisitions $ — $ 1,053 Operating right-of-use assets $ 7,813 $ 6,498 Non-cash financing activity: Mortgage servicing liabilities resulting from loan sales $ 64,383 $ 6,576 Issuance of Excess servicing spread payable to PennyMac Mortgage Investment Trust $ 557 $ 862 Issuance of common stock in settlement of directors' fees $ 101 $ 96

Regulatory Capital and Liquid_2

Regulatory Capital and Liquidity Requirements (Tables)	6 Months Ended
Regulatory Capital and Liquidity Requirements (Tables)	Jun. 30, 2021
Regulatory Capital and Liquidity Requirements
Summary of agencies' capital and liquidity requirements by each agency	June 30, 2021 December 31, 2020 Agency–company subject to requirement Actual (1) Requirement (1) Actual (1) Requirement (1) (dollars in thousands) Capital Fannie Mae & Freddie Mac – $ 5,243,429 $ 658,510 $ 4,454,680 $ 633,331 Ginnie Mae – $ 4,785,193 $ 977,600 $ 3,794,112 $ 1,058,641 HUD – $ 4,785,193 $ 2,500 $ 3,794,112 $ 2,500 Liquidity Fannie Mae & Freddie Mac – $ 317,877 $ 88,189 $ 506,096 $ 84,444 Ginnie Mae – $ 317,877 $ 217,186 $ 506,096 $ 215,722 Adjusted net worth / Total assets ratio Ginnie Mae – 20 % 6 % 12 % 6 % Tangible net worth / Total assets ratio Fannie Mae & Freddie Mac – 22 % 6 % 14 % 6 % (1) Calculated in compliance with the respective Agency’s requirements.

Segments (Tables)

Segments (Tables)	6 Months Ended
Segments (Tables)	Jun. 30, 2021
Segments
Summary of financial highlights by segment	Financial performance and results by segment are as follows: Quarter ended June 30, 2021 Mortgage Banking Investment Production Servicing Total Management Total (in thousands) Revenue: (1) Net gains on loans held for sale at fair value $ 419,293 $ 163,355 $ 582,648 $ — $ 582,648 Loan origination fees 97,291 — 97,291 — 97,291 Fulfillment fees from PennyMac Mortgage Investment Trust 54,020 — 54,020 — 54,020 Net loan servicing fees — 14,871 14,871 — 14,871 Net interest income (expense): Interest income 31,830 48,967 80,797 — 80,797 Interest expense 36,913 65,515 102,428 3 102,431 (5,083) (16,548) (21,631) (3) (21,634) Management fees — — — 11,913 11,913 Other 630 925 1,555 1,588 3,143 Total net revenue 566,151 162,603 728,754 13,498 742,252 Expenses 321,709 131,679 453,388 9,349 462,737 Income before provision for income taxes $ 244,442 $ 30,924 $ 275,366 $ 4,149 $ 279,515 Segment assets at quarter end $ 7,670,877 $ 16,185,956 $ 23,856,833 $ 23,305 $ 23,880,138 (1) All revenues are from external customers. Quarter ended June 30, 2020 Mortgage Banking Investment Production Servicing Total Management Total (in thousands) Revenue: (1) Net gains on loans held for sale at fair value $ 619,728 $ 62,445 $ 682,173 $ — $ 682,173 Loan origination fees 58,948 — 58,948 — 58,948 Fulfillment fees from PennyMac Mortgage Investment Trust 52,815 — 52,815 — 52,815 Net loan servicing fees — 22,337 22,337 — 22,337 Net interest income (expense): Interest income 19,205 28,113 47,318 — 47,318 Interest expense 12,642 40,560 53,202 5 53,207 6,563 (12,447) (5,884) (5) (5,889) Management fees — — — 8,288 8,288 Other 361 351 712 2,250 2,962 Total net revenue 738,415 72,686 811,101 10,533 821,634 Expenses 200,352 135,098 335,450 5,822 341,272 Income before provision for income taxes $ 538,063 $ (62,412) $ 475,651 $ 4,711 $ 480,362 Segment assets at quarter end $ 5,419,219 $ 17,789,046 $ 23,208,265 $ 18,210 $ 23,226,475 (1) All revenues are from external customers. Six months ended June 30, 2021 Mortgage Banking Investment Production Servicing Total Management Total (in thousands) Revenue: (1) Net gains on loans held for sale at fair value $ 935,256 $ 401,733 $ 1,336,989 $ — $ 1,336,989 Loan origination fees 201,328 — 201,328 — 201,328 Fulfillment fees from PennyMac Mortgage Investment Trust 114,855 — 114,855 — 114,855 Net loan servicing fees — 54,591 54,591 — 54,591 Net interest income (expense): Interest income 61,361 101,517 162,878 — 162,878 Interest expense 74,985 135,153 210,138 6 210,144 (13,624) (33,636) (47,260) (6) (47,266) Management fees — — — 20,362 20,362 Other 1,227 2,122 3,349 2,730 6,079 Total net revenue 1,239,042 424,810 1,663,852 23,086 1,686,938 Expenses 631,705 252,142 883,847 17,568 901,415 Income before provision for income taxes $ 607,337 $ 172,668 $ 780,005 $ 5,518 $ 785,523 Segment assets at year end $ 7,670,877 $ 16,185,956 $ 23,856,833 $ 23,305 $ 23,880,138 (1) All revenues are from external customers Six months ended June 30, 2020 Mortgage Banking Investment Production Servicing Total Management Total (in thousands) Revenue: (1) Net gains on loans held for sale at fair value $ 936,363 $ 90,092 $ 1,026,455 $ — $ 1,026,455 Loan origination fees 116,519 — 116,519 — 116,519 Fulfillment fees from PennyMac Mortgage Investment Trust 94,755 — 94,755 — 94,755 Net loan servicing fees — 280,145 280,145 — 280,145 Net interest income (expense): Interest income 45,790 74,092 119,882 — 119,882 Interest expense 32,799 81,906 114,705 14 114,719 12,991 (7,814) 5,177 (14) 5,163 Management fees — — — 17,343 17,343 Other 351 (329) 22 3,057 3,079 Total net revenue 1,160,979 362,094 1,523,073 20,386 1,543,459 Expenses 382,785 253,664 636,449 11,918 648,367 Income before provision for income taxes $ 778,194 $ 108,430 $ 886,624 $ 8,468 $ 895,092 Segment assets at year end $ 5,419,219 $ 17,789,046 $ 23,208,265 $ 18,210 $ 23,226,475 (1) All revenues are from external customers.

Concentration of Risk (Details)

Concentration of Risk (Details)	3 Months Ended		6 Months Ended
Concentration of Risk (Details)	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
PMT \| Sales Revenue \| Customer Concentration Risk
Concentration of Risk
Percentage of total net revenue	11.00%	9.00%	10.00%	15.00%

Related Party Transactions - Co

Related Party Transactions - Correspondent Production (Details) - USD ($)	Jul. 01, 2020	Jun. 30, 2020	Sep. 12, 2016	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Lending activity between the entity and affiliate
Fulfillment fee revenue						$ 114,855,000	$ 94,755,000
Ginnie Mae Mortgage Backed Securities Guide Loan
Transactions with Affiliates
Threshold limit of loan commitment	$ 16,500
Maximum Multiplier factor for each pull through adjusted loan commitment	585
Multiplying factor for each pull through adjusted loan commitment in excess of threshold limit per quarter	355
Multiplying factor for number of purchased loans	315
Multiplying factor for number of purchased loans in excess of threshold limit per quarter	$ 195
Ginnie Mae Mortgage Backed Securities Guide Loan \| Minimum
Transactions with Affiliates
Pull through factor as a percentage	80.00%
Ginnie Mae Mortgage Backed Securities Guide Loan \| Maximum
Transactions with Affiliates
Pull through factor as a percentage	99.00%
Other mortgage loans
Transactions with Affiliates
Multiplying factor for number of purchased loans	$ 750
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
Target recapture rate	15.00%
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%
Related party transaction, renewal period		5 years
MSR Recapture Agreement \| First 15%
Transactions with Affiliates
Percentage of fair market value.	40.00%
Percentage of recapture rate.	15.00%
MSR Recapture Agreement \| In excess of 15% and upto 30%
Transactions with Affiliates
Percentage of fair market value.	35.00%
MSR Recapture Agreement \| In excess of 30%
Transactions with Affiliates
Percentage of fair market value.	30.00%
Percentage of recapture rate.	30.00%
MSR Recapture Agreement \| Minimum \| In excess of 15% and upto 30%
Transactions with Affiliates
Percentage of recapture rate.	15.00%
MSR Recapture Agreement \| Maximum \| In excess of 15% and upto 30%
Transactions with Affiliates
Percentage of recapture rate.	30.00%
PMT
Lending activity between the entity and affiliate
Total of gain on sale of loans and MSR recapture				$ (11,548,000)	$ (5,592,000)	(25,796,000)	72,324,000
Sale of loans held for sale to PMT							2,248,869,000
Fulfillment fee revenue				54,020,000	52,815,000	114,855,000	94,755,000
Proceeds from sale of mortgage loans held for sale to PennyMac Mortgage Investment Trust							2,248,869,000
PMT \| MBS Agreement \| Minimum
Transactions with Affiliates
The administrative fee plus accrued interest and sourcing fee percent			0.02%
PMT \| MBS Agreement \| Maximum
Transactions with Affiliates
The administrative fee plus accrued interest and sourcing fee percent			0.035%
PMT \| Loan Lending
Lending activity between the entity and affiliate
Net gain on loans held for sale to PMT					70,000		81,294,000
Mortgage servicing rights and excess servicing spread recapture incurred				(11,548,000)	(5,662,000)	(25,796,000)	(8,970,000)
Total of gain on sale of loans and MSR recapture				(11,548,000)	(5,592,000)	(25,796,000)	72,324,000
Sale of loans held for sale to PMT					2,742,000		2,248,869,000
Tax service fee				7,128,000	4,288,000	15,320,000	8,268,000
Fulfillment fee revenue				54,020,000	52,815,000	114,855,000	94,755,000
Sourcing fees paid				1,630,000	3,324,000	3,368,000	7,485,000
Unpaid principal balance of loans purchased from PMT				$ 16,297,216,000	11,080,565,000	$ 33,856,791,000	24,950,845,000
Proceeds from sale of mortgage loans held for sale to PennyMac Mortgage Investment Trust					$ 2,742,000		$ 2,248,869,000
PLS \| Minimum
Transactions with Affiliates
Sourcing fees (as a percent)	0.01%
PLS \| Maximum
Transactions with Affiliates
Sourcing fees (as a percent)	0.02%
PLS \| Ginnie Mae Mortgage Backed Securities Guide Loan
Transactions with Affiliates
Fulfilment fee payable	$ 0

Related Party Transactions - Mo

Related Party Transactions - Mortgage Loan Servicing (Details) - USD ($)	Jun. 30, 2020	Sep. 12, 2016	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Loan Servicing Agreement
Transactions with Affiliates
Base servicing fees per month for REO		$ 75
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
Minimum \| Loan Servicing Agreement
Transactions with Affiliates
Servicing fees amount per month for current loans		30
Additional servicing fee amount per month for delinquent loans		10
Maximum \| Loan Servicing Agreement
Transactions with Affiliates
Servicing fees amount per month for current loans		95
Additional servicing fee amount per month for delinquent loans		$ 55
PMT
Summary of mortgage loan servicing fees earned
Loan servicing fees			$ 20,015,000	$ 15,533,000	$ 39,108,000	$ 30,054,000
PMT \| Loan Servicing Agreement
Summary of mortgage loan servicing fees earned
Related party transaction, renewal period	5 years
PMT \| Loans acquired for sale at fair value
Summary of mortgage loan servicing fees earned
Loan servicing fees			630,000	607,000	1,173,000	1,143,000
PMT \| Loans at fair value
Summary of mortgage loan servicing fees earned
Loan servicing fees			80,000	188,000	217,000	488,000
PMT \| Mortgage servicing rights
Summary of mortgage loan servicing fees earned
Loan servicing fees			$ 19,305,000	$ 14,738,000	$ 37,718,000	$ 28,423,000

Related Party Transactions - Ma

Related Party Transactions - Management Fees (Details) - USD ($)	Sep. 12, 2016	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Management Fee Revenue Abstract
Management fees		$ 11,913,000	$ 8,288,000	$ 20,362,000	$ 17,343,000
PMT
Management Fee Revenue Abstract
Management fees		11,913,000	8,288,000	20,362,000	17,343,000
PMT \| Management Agreement
Transactions with Affiliates
Percentage of change in net income due to quarterly adjustments	8.00%
Management Fee Revenue Abstract
Base management fee		8,648,000	8,288,000	17,097,000	17,343,000
Performance incentive		3,265,000		3,265,000
Management fees		$ 11,913,000	$ 8,288,000	$ 20,362,000	$ 17,343,000
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%

Related Party Transactions - Ot

Related Party Transactions - Other Transactions, Reimbursement of Common Overhead Expenses (Details) - USD ($)	Jul. 01, 2020	Sep. 12, 2016	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
PMT
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			$ 9,237,000	$ 3,143,000	$ 11,309,000	$ 6,074,000
Payments and settlements during the year			74,441,000	136,352,000	187,182,000	170,035,000
PMT \| Common overhead incurred
Reimbursement of common overhead and expenses incurred on behalf of affiliates
Reimbursement of common overhead and expenses incurred by the Company			1,268,000	1,585,000	1,839,000	3,125,000
PMT \| Compensation
Reimbursement of common overhead and expenses incurred on behalf of affiliates
Reimbursement of common overhead and expenses incurred by the Company			165,000	120,000	330,000	240,000
PMT \| 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			$ 7,804,000	$ 1,438,000	$ 9,140,000	$ 2,709,000
PCM
Transactions with Affiliates
Expense reimbursement amount, per quarter, relating to personnel	$ 165,000	$ 120,000
Related party transaction, renewal period	5 years

Related Party Transactions - In

Related Party Transactions - Investing Activities (Details) - PMT - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Transactions with Affiliates
Common shares of beneficial interest owned	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					$ 80,862
Activity during the period:
Interest income on receivable from PennyMac Mortgage Investment Trust		$ 792	$ 387	$ 2,010
Activity during the period:
Balance at end of period	$ 144	543	545	(314)
Loans and Leases Receivable, Related Parties					80,862
Fair value of PennyMac Mortgage Investment Trust shares	$ 1,580		$ 1,580		$ 1,105
Number of shares	75,000		75,000		75,000
PennyMac Holdings, L L C Repurchase Agreement
Activity during the period:
Interest income on receivable from PennyMac Mortgage Investment Trust		792	$ 387	2,010
Activity during the period:
Change in fair value of investment in Common shares of PennyMac Mortgage Investment Trust	$ 144	$ 543	$ 545	$ (314)

Related Party Transactions - Fi

Related Party Transactions - Financing Activities (Details) - USD ($)	3 Months Ended	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020	Feb. 01, 2013
Financing activities:
Issuance pursuant to recapture agreement		$ 557,000	$ 862,000
Repayments		134,624,000	17,430,000
PMT
Financing activities:
Interest expense	$ 2,372,000	1,280,000	4,346,000
Change in fair value	636,000	(1,037,000)	15,158,000
Excess servicing spread financing at fair value payable to affiliate				$ 131,750,000
PMT \| 2/1/13 Spread Acquisition Agreement
Financing activities:
Maximum ESS recapture obligation					$ 200,000
Excess servicing spread financing \| PMT
Financing activities:
Balance at the beginning of the period	157,109,000	131,750,000	178,586,000
Issuance pursuant to recapture agreement	483,000	557,000	862,000
Interest expense	2,372,000	1,280,000	4,346,000
Repayments	(8,122,000)	(134,624,000)	(17,430,000)
Change in fair value	(636,000)	1,037,000	(15,158,000)
Balance at the end of the period	151,206,000		151,206,000
Excess servicing spread recapture recognized	$ 535,000	$ 614,000	$ 916,000

Related Party Transactions - Am

Related Party Transactions - Amounts due from Affiliate (Details) - PMT - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Amounts due from affiliate
Allocated expenses	$ 17,002	$ 38,142
Fulfillment fees	16,467	20,873
Management fees	11,913	8,686
Correspondent production fees	9,764	13,065
Servicing fees	6,737	6,213
Interest on assets purchased under agreements to resell		26
Total due from affiliate	61,883	87,005
Payable to affiliate
Amounts advanced by PMT	117,444	132,154
Other expenses	19,216	8,152
Payable to affiliates	$ 136,660	$ 140,306

Related Party Transactions - Ex

Related Party Transactions - Exchanged Private National Mortgage Acceptance Company, LLC Unitholders (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
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	$ 31.8	$ 31.8		$ 35.2
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	$ 3.4	$ 3.4	$ 0

Loan Sales and Servicing Acti_3

Loan Sales and Servicing Activities - Summary of Cash Flows with Transferees (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Cash flows:
Sales proceeds	$ 41,739,700	$ 21,188,988	$ 79,007,900	$ 40,526,005
Servicing fees received	201,866	$ 158,871	397,648	$ 325,427
Period end information:
Unpaid principal balance of loans outstanding	227,560,336		227,560,336		$ 199,655,361
30-89 days	4,574,834		4,574,834		6,041,366
90 days or more - Not in foreclosure	13,173,282		13,173,282		17,799,621
90 days or more - In foreclosure	481,974		481,974		581,683
90 days or more - Foreclosed	6,444		6,444		10,893
Bankruptcy	1,201,936		1,201,936		1,230,696
30-89 days delinquent under CARES Act	1,383,601		1,383,601		2,626,617
90 days or more delinquent not in foreclosure under CARES Act	9,019,414		9,019,414		12,181,174
Total delinquent loans in COVID-19 pandemic related forbearance	$ 10,403,015		$ 10,403,015		$ 14,807,791

Loan Sales and Servicing Acti_4

Loan Sales and Servicing Activities - Summary of Mortgage Servicing Portfolio (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Mortgage servicing portfolio
Loans held for sale	$ 10,438,935	$ 11,063,938
Total loans serviced	473,224,046	426,750,830
Delinquent loans:
30 days	4,884,094	6,119,914
60 days	1,630,236	2,741,683
90 days or more - Not in foreclosure	18,353,195	26,254,443
90 days or more - In foreclosure	652,718	784,898
90 days or more - Foreclosed	28,748	50,069
Total delinquent mortgage loans	25,548,991	35,951,007
Bankruptcy	1,731,226	1,851,597
Delinquent loans in COVID-19 related forbearance
30 days	994,336	2,079,755
60 days	925,575	1,738,772
90 days or more	12,870,262	18,594,557
Total delinquent loans in COVID-19 related forbearance	14,790,173	22,413,084
Custodial funds managed by the Company	15,200,366	16,747,242
Servicing rights owned
Mortgage servicing portfolio
Loans held for sale	10,438,935	11,063,938
Total loans serviced	269,049,584	252,332,239
Delinquent loans:
30 days	4,175,393	5,217,949
60 days	1,432,015	2,393,267
90 days or more - Not in foreclosure	15,364,421	21,781,226
90 days or more - In foreclosure	624,204	751,586
90 days or more - Foreclosed	7,191	12,938
Total delinquent mortgage loans	21,603,224	30,156,966
Bankruptcy	1,582,002	1,698,418
Delinquent loans in COVID-19 related forbearance
30 days	854,161	1,745,257
60 days	791,271	1,479,753
90 days or more	10,402,947	14,904,052
Total delinquent loans in COVID-19 related forbearance	12,048,379	18,129,062
Custodial funds managed by the Company	10,262,380	10,660,517
Contract servicing and subservicing
Mortgage servicing portfolio
Total loans serviced	204,174,462	174,418,591
Delinquent loans:
30 days	708,701	901,965
60 days	198,221	348,416
90 days or more - Not in foreclosure	2,988,774	4,473,217
90 days or more - In foreclosure	28,514	33,312
90 days or more - Foreclosed	21,557	37,131
Total delinquent mortgage loans	3,945,767	5,794,041
Bankruptcy	149,224	153,179
Delinquent loans in COVID-19 related forbearance
30 days	140,175	334,498
60 days	134,304	259,019
90 days or more	2,467,315	3,690,505
Total delinquent loans in COVID-19 related forbearance	2,741,794	4,284,022
Custodial funds managed by the Company	4,937,986	6,086,725
Non affiliated entities
Mortgage servicing portfolio
Originated	227,560,336	199,655,361
Purchased	31,050,313	41,612,940
Total loans serviced, excluding loans held for sale	258,610,649	241,268,301
Non affiliated entities \| Servicing rights owned
Mortgage servicing portfolio
Originated	227,560,336	199,655,361
Purchased	31,050,313	41,612,940
Total loans serviced, excluding loans held for sale	258,610,649	241,268,301
Affiliated entities
Mortgage servicing portfolio
Advised entities	204,174,462	174,418,591
Affiliated entities \| Contract servicing and subservicing
Mortgage servicing portfolio
Advised entities	$ 204,174,462	$ 174,418,591

Loan Sales and Servicing Acti_5

Loan Sales and Servicing Activities - Geographical Distribution of Loans (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Loan Sales and Servicing Activities
Total loans serviced	$ 473,224,046	$ 426,750,830
California
Loan Sales and Servicing Activities
Total loans serviced	65,386,177	60,591,363
Florida
Loan Sales and Servicing Activities
Total loans serviced	39,712,103	35,360,190
Texas
Loan Sales and Servicing Activities
Total loans serviced	38,627,464	34,591,419
Virginia
Loan Sales and Servicing Activities
Total loans serviced	29,487,339	26,209,701
Maryland
Loan Sales and Servicing Activities
Total loans serviced	22,372,406	19,974,809
All other states
Loan Sales and Servicing Activities
Total loans serviced	$ 277,638,557	$ 250,023,348

Fair Value - Financial Statemen

Fair Value - Financial Statement Items Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Assets:
Short-term investments at fair value	$ 3,720	$ 15,217
Loans held for sale	10,884,506	11,616,400
Derivative assets:
Derivative asset, before netting	469,285	847,831
Netting	(98,016)	(136,593)
Total derivative assets	371,269	711,238
Derivative liabilities:
Derivative liability, before netting	92,139	255,360
Netting	(48,229)	(212,722)
Net amounts of liabilities presented in the consolidated balance sheet	43,910	42,638
Mortgage servicing liabilities	100,091	45,324
PMT
Derivative assets:
Investment in PennyMac Mortgage Investment Trust	1,580	1,105
Interest rate lock commitments
Derivative assets:
Total derivative assets	344,128	679,961
Forward contracts \| Purchases
Derivative assets:
Derivative asset, before netting	55,765	133,267
Derivative liabilities:
Derivative liability, before netting	23,274	1,276
Forward contracts \| Sales
Derivative assets:
Derivative asset, before netting	39,597	1,451
Derivative liabilities:
Derivative liability, before netting	68,347	251,149
MBS put options
Derivative assets:
Derivative asset, before netting	13,106	14,302
MBS call options
Derivative assets:
Derivative asset, before netting	687
Call options on interest rate futures \| Purchases
Derivative assets:
Derivative asset, before netting	2,297	1,391
Put options on interest rate futures \| Purchases
Derivative assets:
Derivative asset, before netting	2,664	5,520
Level 3
Assets:
Loans held for sale	3,818,261	4,675,169
Level 3 \| Interest rate lock commitments
Assets:
Loans held for sale	343,610	677,026
Recurring basis
Assets:
Short-term investments at fair value	3,720	15,217
Loans held for sale	10,884,506	11,616,400
Derivative assets:
Derivative asset, before netting	469,285	847,831
Netting	(98,016)	(136,593)
Total derivative assets	371,269	711,238
Mortgage servicing rights at fair value	3,412,648	2,581,174
Total assets	14,673,723	14,925,134
Derivative liabilities:
Derivative liability, before netting	92,139	255,360
Netting	(48,229)	(212,722)
Net amounts of liabilities presented in the consolidated balance sheet	43,910	42,638
Mortgage servicing liabilities	100,091	45,324
Total liabilities	144,001	219,712
Recurring basis \| PMT
Derivative assets:
Investment in PennyMac Mortgage Investment Trust	1,580	1,105
Derivative liabilities:
Excess servicing spread financing at fair value to affiliate		131,750
Recurring basis \| Interest rate lock commitments
Derivative assets:
Derivative asset, before netting	344,128	679,961
Derivative liabilities:
Derivative liability, before netting	518	2,935
Recurring basis \| Forward contracts \| Purchases
Derivative assets:
Derivative asset, before netting	55,765	133,267
Derivative liabilities:
Derivative liability, before netting	23,274	1,276
Recurring basis \| Forward contracts \| Sales
Derivative assets:
Derivative asset, before netting	39,597	1,451
Derivative liabilities:
Derivative liability, before netting	68,347	251,149
Recurring basis \| MBS put options
Derivative assets:
Derivative asset, before netting	13,106	14,302
Recurring basis \| MBS call options
Derivative assets:
Derivative asset, before netting	687
Recurring basis \| Swaptions \| Purchases
Derivative assets:
Derivative asset, before netting	11,041	11,939
Recurring basis \| Call options on interest rate futures \| Purchases
Derivative assets:
Derivative asset, before netting	2,297	1,391
Recurring basis \| Put options on interest rate futures \| Purchases
Derivative assets:
Derivative asset, before netting	2,664	5,520
Recurring basis \| Level 1
Assets:
Short-term investments at fair value	3,720	15,217
Derivative assets:
Derivative asset, before netting	4,961	6,911
Total derivative assets	4,961	6,911
Total assets	10,261	23,233
Recurring basis \| Level 1 \| PMT
Derivative assets:
Investment in PennyMac Mortgage Investment Trust	1,580	1,105
Recurring basis \| Level 1 \| Call options on interest rate futures \| Purchases
Derivative assets:
Derivative asset, before netting	2,297	1,391
Recurring basis \| Level 1 \| Put options on interest rate futures \| Purchases
Derivative assets:
Derivative asset, before netting	2,664	5,520
Recurring basis \| Level 2
Assets:
Loans held for sale	7,066,245	6,941,231
Derivative assets:
Derivative asset, before netting	120,196	160,959
Total derivative assets	120,196	160,959
Total assets	7,186,441	7,102,190
Derivative liabilities:
Derivative liability, before netting	91,621	252,425
Net amounts of liabilities presented in the consolidated balance sheet	91,621	252,425
Total liabilities	91,621	252,425
Recurring basis \| Level 2 \| Forward contracts \| Purchases
Derivative assets:
Derivative asset, before netting	55,765	133,267
Derivative liabilities:
Derivative liability, before netting	23,274	1,276
Recurring basis \| Level 2 \| Forward contracts \| Sales
Derivative assets:
Derivative asset, before netting	39,597	1,451
Derivative liabilities:
Derivative liability, before netting	68,347	251,149
Recurring basis \| Level 2 \| MBS put options
Derivative assets:
Derivative asset, before netting	13,106	14,302
Recurring basis \| Level 2 \| MBS call options
Derivative assets:
Derivative asset, before netting	687
Recurring basis \| Level 2 \| Swaptions \| Purchases
Derivative assets:
Derivative asset, before netting	11,041	11,939
Recurring basis \| Level 3
Assets:
Loans held for sale	3,818,261	4,675,169
Derivative assets:
Derivative asset, before netting	344,128	679,961
Total derivative assets	344,128	679,961
Mortgage servicing rights at fair value	3,412,648	2,581,174
Total assets	7,575,037	7,936,304
Derivative liabilities:
Derivative liability, before netting	518	2,935
Net amounts of liabilities presented in the consolidated balance sheet	518	2,935
Mortgage servicing liabilities	100,091	45,324
Total liabilities	100,609	180,009
Recurring basis \| Level 3 \| PMT
Derivative liabilities:
Excess servicing spread financing at fair value to affiliate		131,750
Recurring basis \| Level 3 \| Interest rate lock commitments
Derivative assets:
Derivative asset, before netting	344,128	679,961
Derivative liabilities:
Derivative liability, before netting	$ 518	$ 2,935

Fair Value - Level 3 Input Roll

Fair Value - Level 3 Input Roll Forward, Recurring Basis (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Roll forward of liabilities measured using Level 3 inputs on a recurring basis
Mortgage servicing liabilities resulting from loan sales			$ 64,383	$ 6,576
Recurring basis
Roll forward of assets measured using Level 3 inputs on a recurring basis
Balance at the beginning of the period	$ 8,808,915	$ 3,323,665	7,933,369	3,455,505
Purchases and issuances, net	7,180,028	785,005	11,886,402	2,793,976
Capitalization of interest and advances	60,439	14,994	78,844	33,021
Sales and repayments	(3,866,340)	(60,364)	(4,795,241)	(799,292)
Mortgage servicing rights resulting from loan sales	483,362	225,534	953,895	507,849
Changes in fair value included in income arising from:
Changes in instrument specific credit risk	179,792	1,132	227,946	(6,391)
Other factors	(7,189)	91,506	30,401	(749,744)
Total changes in fair value included in income	172,603	92,638	258,347	(756,135)
Transfers from mortgage loans held for sale from Level 3 to Level 2	(4,585,789)	(389,486)	(7,424,910)	(878,893)
Transfers to real estate acquired in settlement of loans			(82)	(691)
Transfers from interest rate lock commitments to loans held for sale	(678,699)	(740,477)	(1,316,105)	(1,103,831)
Balance at the end of the period	7,574,519	3,251,509	7,574,519	3,251,509
Changes in fair value recognized during the period relating to assets still held at the end of the period	78,170	161,655	357,012	(879,359)
Roll forward of liabilities measured using Level 3 inputs on a recurring basis
Balance at the beginning of the period		186,870	177,074	207,726
Issuances		483	557	862
Accrual of interest on excess servicing spread financing		2,372	1,280	4,346
Repayment		(8,122)	(134,624)	(17,430)
Mortgage servicing liabilities resulting from loan sales			64,383	6,576
Changes in fair value included in income		(539)	(8,579)	(21,016)
Balance at the end of the period	100,091	181,064	100,091	181,064
Changes in fair value recognized during the period relating to liability still outstanding at the end of the period		(539)	(9,616)	(21,016)
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	46,026	157,109	131,750	178,586
Issuances		483	557	862
Accrual of interest on excess servicing spread financing		2,372	1,280	4,346
Repayment		(8,122)	(134,624)	(17,430)
Mortgage servicing liabilities resulting from loan sales	57,421
Changes in fair value included in income	(3,356)	(636)	1,037	(15,158)
Balance at the end of the period	100,091	151,206	100,091	151,206
Changes in fair value recognized during the period relating to liability still outstanding at the end of the period	(3,356)	(636)		(15,158)
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		29,761	45,324	29,140
Mortgage servicing liabilities resulting from loan sales			64,383	6,576
Changes in fair value included in income		97	(9,616)	(5,858)
Balance at the end of the period	100,091	29,858	100,091	29,858
Changes in fair value recognized during the period relating to liability still outstanding at the end of the period		97	(9,616)	(5,858)
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	5,202,065	806,587	4,675,169	383,878
Purchases and issuances, net	6,828,094	288,856	11,056,535	1,930,087
Capitalization of interest and advances	60,439	14,994	78,844	33,021
Sales and repayments	(3,866,340)	(60,364)	(4,795,241)	(799,292)
Changes in fair value included in income arising from:
Changes in instrument specific credit risk	179,792	1,132	227,946	(6,391)
Total changes in fair value included in income	179,792	1,132	227,946	(6,391)
Transfers from mortgage loans held for sale from Level 3 to Level 2	(4,585,789)	(389,486)	(7,424,910)	(878,893)
Transfers to real estate acquired in settlement of loans			(82)	(691)
Balance at the end of the period	3,818,261	661,719	3,818,261	661,719
Changes in fair value recognized during the period relating to assets still held at the end of the period	74,184	(717)	135,823	(563)
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	337,940	315,194	677,026	136,650
Purchases and issuances, net	351,934	496,149	829,867	838,129
Changes in fair value included in income arising from:
Other factors	332,435	297,198	152,822	497,116
Total changes in fair value included in income	332,435	297,198	152,822	497,116
Transfers from interest rate lock commitments to loans held for sale	(678,699)	(740,477)	(1,316,105)	(1,103,831)
Balance at the end of the period	343,610	368,064	343,610	368,064
Changes in fair value recognized during the period relating to assets still held at the end of the period	343,610	368,064	343,610	368,064
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		8,187		8,187
Changes in fair value included in income arising from:
Balance at the end of the period		8,187		8,187
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	3,268,910	2,193,697	2,581,174	2,926,790
Purchases and issuances, net				25,760
Mortgage servicing rights resulting from loan sales	483,362	225,534	953,895	507,849
Changes in fair value included in income arising from:
Other factors	(339,624)	(205,692)	(122,421)	(1,246,860)
Total changes in fair value included in income	(339,624)	(205,692)	(122,421)	(1,246,860)
Balance at the end of the period	3,412,648	2,213,539	3,412,648	2,213,539
Changes in fair value recognized during the period relating to assets still held at the end of the period	$ (339,624)	$ (205,692)	$ (122,421)	$ (1,246,860)

Fair Value - Changes in Fair Va

Fair Value - Changes in Fair Value, Fair Value Option, Recurring Basis (Details) - Recurring basis - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
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	$ 3,356	$ 539	$ 8,579	$ 21,016
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	3,356	539	8,579	21,016
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		636	(1,037)	15,158
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		636	(1,037)	15,158
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	3,356	(97)	9,616	5,858
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	3,356	(97)	9,616	5,858
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	422,217	534,105	1,289,539	(108,345)
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	761,841	739,797	1,411,960	1,138,515
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	(339,624)	(205,692)	(122,421)	(1,246,860)
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	761,841	739,797	1,411,960	1,138,515
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	761,841	739,797	1,411,960	1,138,515
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	(339,624)	(205,692)	(122,421)	(1,246,860)
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	$ (339,624)	$ (205,692)	$ (122,421)	$ (1,246,860)

Fair Value - Fair Value Option

Fair Value - Fair Value Option Maturities, Recurring Basis (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Fair value
Total fair value	$ 10,884,506	$ 11,616,400
Recurring basis
Fair value
Total fair value	10,884,506	11,616,400
Loans held for sale \| Recurring basis
Fair value
Current through 89 days delinquent	10,526,148	11,304,308
Not in foreclosure	330,472	275,419
In foreclosure	27,886	36,673
Total fair value	10,884,506	11,616,400
Principal amount due upon maturity
Current through 89 days delinquent	10,079,813	10,743,814
Not in foreclosure	327,869	280,595
In foreclosure	31,253	39,529
Total principal amount due upon maturity	10,438,935	11,063,938
Difference
Current through 89 days delinquent	446,335	560,494
Not in foreclosure	2,603	(5,176)
In foreclosure	(3,367)	(2,856)
Total difference	$ 445,571	$ 552,462

Fair Value - Measurement Basis,

Fair Value - Measurement Basis, Nonrecurring (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Total gains (losses) on assets measured at estimated fair values on a nonrecurring basis
Notes Payable	$ 1,296,731		$ 1,296,731		$ 1,295,840
Term Notes
Total gains (losses) on assets measured at estimated fair values on a nonrecurring basis
Notes Payable	1,296,731		1,296,731		1,295,840
Unsecured senior note
Total gains (losses) on assets measured at estimated fair values on a nonrecurring basis
Notes Payable	1,288,769		1,288,769		645,820
Nonrecurring basis
Financial statement items measured at fair value on a nonrecurring basis
Real estate acquired in settlement of loans	2,863		2,863		1,450
Total gains (losses) on assets measured at estimated fair values on a nonrecurring basis
Real estate acquired in settlement of loans	(434)	$ (1,001)	(743)	$ (2,283)
Nonrecurring basis \| Level 3
Financial statement items measured at fair value on a nonrecurring basis
Real estate acquired in settlement of loans	2,863		2,863		1,450
Fair Values \| Term Notes
Total gains (losses) on assets measured at estimated fair values on a nonrecurring basis
Notes Payable	1,298,603		1,298,603		1,268,304
Fair Values \| Unsecured senior note
Total gains (losses) on assets measured at estimated fair values on a nonrecurring basis
Notes Payable	$ 1,309,750		$ 1,309,750		$ 685,750

Fair Value - Level 3 Unobservab

Fair Value - Level 3 Unobservable Inputs, Mortgage Loans and IRLC (Details) $ in Thousands	Jun. 30, 2021USD ($)item	Dec. 31, 2020USD ($)item
Excess servicing spread financing
Loans held for sale \| $	$ 10,884,506	$ 11,616,400
Level 3
Excess servicing spread financing
Loans held for sale \| $	$ 3,818,261	$ 4,675,169
Loans held for sale \| Discount rate \| Level 3 \| Minimum
Excess servicing spread financing
Input	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	2	2.8
Loans held for sale \| Twelve-month projected housing price index Change \| Level 3 \| Minimum
Excess servicing spread financing
Input	4.8	2.7
Loans held for sale \| Twelve-month projected housing price index Change \| Level 3 \| Maximum
Excess servicing spread financing
Input	5.3	3.5
Loans held for sale \| Twelve-month projected housing price index Change \| Level 3 \| Weighted average
Excess servicing spread financing
Input	5.1	3
Loans held for sale \| Prepayment/resale speed \| Level 3 \| Minimum
Excess servicing spread financing
Input	0.4	0.4
Loans held for sale \| Prepayment/resale speed \| Level 3 \| Maximum
Excess servicing spread financing
Input	26.8	31.3
Loans held for sale \| Prepayment/resale speed \| Level 3 \| Weighted average
Excess servicing spread financing
Input	22	21.9
Loans held for sale \| Total prepayment speed \| Level 3 \| Minimum
Excess servicing spread financing
Input	0.4	0.5
Loans held for sale \| Total prepayment speed \| Level 3 \| Maximum
Excess servicing spread financing
Input	37.6	42.9
Loans held for sale \| Total prepayment speed \| Level 3 \| Weighted average
Excess servicing spread financing
Input	28.8	29.2
Interest rate lock commitments \| Level 3
Excess servicing spread financing
Loans held for sale \| $	$ 343,610	$ 677,026
Interest rate lock commitments \| Pull-through rate \| Level 3 \| Minimum
Excess servicing spread financing
Input	8	10.1
Interest rate lock commitments \| Pull-through rate \| Level 3 \| Maximum
Excess servicing spread financing
Input	100	100
Interest rate lock commitments \| Pull-through rate \| Level 3 \| Weighted average
Excess servicing spread financing
Input	82.7	82.7
Interest rate lock commitments \| Mortgage servicing rights value expressed as servicing fee multiple \| Level 3 \| Minimum
Excess servicing spread financing
Input	(14.7)	0.7
Interest rate lock commitments \| Mortgage servicing rights value expressed as servicing fee multiple \| Level 3 \| Maximum
Excess servicing spread financing
Input	6.5	5.3
Interest rate lock commitments \| Mortgage servicing rights value expressed as servicing fee multiple \| Level 3 \| Weighted average
Excess servicing spread financing
Input	3.6	3.6
Interest rate lock commitments \| Percentage of unpaid principal balance \| Level 3 \| Minimum
Excess servicing spread financing
Input	(2.1)	0.1
Interest rate lock commitments \| Percentage of unpaid principal balance \| Level 3 \| Maximum
Excess servicing spread financing
Input	3.1	2.6
Interest rate lock commitments \| Percentage of unpaid principal balance \| Level 3 \| Weighted average
Excess servicing spread financing
Input	1.2	1.2

Fair Value - Level 3 Unobserv_2

Fair Value - Level 3 Unobservable Inputs, Mortgage Servicing Rights - Initial Recognition (Details)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2021USD ($)item	Jun. 30, 2020USD ($)item	Jun. 30, 2021USD ($)item	Jun. 30, 2020USD ($)item	Dec. 31, 2020USD ($)item
Mortgage servicing rights
Inputs
Amount recognized \| $	$ 483,362,000	$ 225,534,000	$ 953,895,000	$ 507,849,000
Fair Values \| Mortgage servicing rights \| Level 3 \| Minimum
Inputs:
Annual per-loan cost of servicing \| $			79		$ 79
Fair Values \| Mortgage servicing rights \| Level 3 \| Maximum
Inputs:
Annual per-loan cost of servicing \| $			117		117
Fair Values \| Mortgage servicing rights \| Level 3 \| Weighted average
Inputs:
Annual per-loan cost of servicing \| $			$ 107		$ 107
Fair Values \| Mortgage servicing rights \| Pricing spread \| Level 3 \| Minimum
Inputs:
Input	6.3		6.3		8
Fair Values \| Mortgage servicing rights \| Pricing spread \| Level 3 \| Maximum
Inputs:
Input					17.6
Fair Values \| Mortgage servicing rights \| Pricing spread \| Level 3 \| Weighted average
Inputs:
Input	8.4		8.4		10.1
Fair Values \| Mortgage servicing rights \| Annual total prepayment speed \| Level 3 \| Minimum
Inputs:
Input	7.9		7.9		10.1
Fair Values \| Mortgage servicing rights \| Annual total prepayment speed \| Level 3 \| Maximum
Inputs:
Input	29.1		29.1		32.9
Fair Values \| Mortgage servicing rights \| Annual total prepayment speed \| Level 3 \| Weighted average
Inputs:
Input	10.5		10.5		13.7
Fair Values \| Mortgage servicing rights \| Life \| Level 3 \| Minimum
Inputs:
Input	3		3		2.3
Fair Values \| Mortgage servicing rights \| Life \| Level 3 \| Maximum
Inputs:
Input	7.8		7.8		7.7
Fair Values \| Mortgage servicing rights \| Life \| Level 3 \| Weighted average
Inputs:
Input	6.9		6.9		6
Fair Values \| MSRs at the time of initial recognition, excluding MSR purchases \| Level 3
Inputs
Amount recognized \| $	$ 483,362,000	225,534,000	$ 953,895,000	507,849,000
Unpaid principal balance of underlying loans \| $	$ 36,830,098,000	$ 20,066,302,000	$ 71,773,352,000	$ 38,396,686,000
Weighted-average servicing fee rate (as a percent)	0.33%	0.36%	0.33%	0.38%
Fair Values \| MSRs at the time of initial recognition, excluding MSR purchases \| Level 3 \| Minimum
Inputs:
Annual per-loan cost of servicing \| $	$ 80	$ 79		$ 77
Fair Values \| MSRs at the time of initial recognition, excluding MSR purchases \| Level 3 \| Maximum
Inputs:
Annual per-loan cost of servicing \| $	117	110	$ 117	110
Fair Values \| MSRs at the time of initial recognition, excluding MSR purchases \| Level 3 \| Weighted average
Inputs:
Annual per-loan cost of servicing \| $	$ 104	$ 101	$ 104	$ 99
Fair Values \| MSRs at the time of initial recognition, excluding MSR purchases \| Pricing spread \| Level 3 \| Minimum
Inputs:
Input	6	8.1	6	6.8
Fair Values \| MSRs at the time of initial recognition, excluding MSR purchases \| Pricing spread \| Level 3 \| Maximum
Inputs:
Input	16.9	18.1	16.9	18.1
Fair Values \| MSRs at the time of initial recognition, excluding MSR purchases \| Pricing spread \| Level 3 \| Weighted average
Inputs:
Input	8.9	9.9	9.2	9.1
Fair Values \| MSRs at the time of initial recognition, excluding MSR purchases \| Annual total prepayment speed \| Level 3 \| Minimum
Inputs:
Input	6.7	8.8	6.2	8.8
Fair Values \| MSRs at the time of initial recognition, excluding MSR purchases \| Annual total prepayment speed \| Level 3 \| Maximum
Inputs:
Input	17.7	29.1	16.7	49.8
Fair Values \| MSRs at the time of initial recognition, excluding MSR purchases \| Annual total prepayment speed \| Level 3 \| Weighted average
Inputs:
Input	8.5	13	8.1	13.7
Fair Values \| MSRs at the time of initial recognition, excluding MSR purchases \| Life \| Level 3 \| Minimum
Inputs:
Input	4	2.9	4.1	1.5
Fair Values \| MSRs at the time of initial recognition, excluding MSR purchases \| Life \| Level 3 \| Maximum
Inputs:
Input	8.8	8.1	9	8.1
Fair Values \| MSRs at the time of initial recognition, excluding MSR purchases \| Life \| Level 3 \| Weighted average
Inputs:
Input	8.1	6.3	8.3	6.1

Fair Value - Level 3 Unobserv_3

Fair Value - Level 3 Unobservable Inputs, Mortgage Servicing Rights, Effect of Change In Inputs on Fair Value (Details)	6 Months Ended	12 Months Ended
	Jun. 30, 2021USD ($)item	Dec. 31, 2020USD ($)item
MSR and pool characteristics
Carrying value	$ 3,412,648,000	$ 2,581,174,000
Mortgage servicing liabilities \| Level 3
Prepayment speed
Annual per-loan cost of servicing	278	305
Fair Values \| Mortgage servicing liabilities \| Level 3 \| Minimum
Prepayment speed
Annual per-loan cost of servicing	$ 81
Fair Values \| Mortgage servicing liabilities \| Pricing spread \| Level 3 \| Maximum
Inputs
Input \| item	16.1
Fair Values \| Mortgage servicing rights \| Level 3
MSR and pool characteristics
Carrying value	$ 3,412,648,000	2,581,174,000
Unpaid principal balance of underlying loans	$ 252,475,400,000	$ 238,410,809,000
Weighted-average note interest rate (as a percent)	3.30%	3.60%
Weighted-average servicing fee rate (as a percent)	0.34%	0.35%
Pricing spread
Effect on fair value of 5% adverse change	$ (56,330,000)	$ (46,356,000)
Effect on fair value of 10% adverse change	(110,804,000)	(90,936,000)
Effect on fair value of 20% adverse change	(214,519,000)	(175,137,000)
Prepayment speed
Effect on fair value of 5% adverse change	(72,028,000)	(66,536,000)
Effect on fair value of 10% adverse change	(141,434,000)	(130,253,000)
Effect on fair value of 20% adverse change	(272,904,000)	(249,843,000)
Annual per-loan cost of servicing
Effect on fair value of 5% adverse change	(31,198,000)	(25,482,000)
Effect on fair value of 10% adverse change	(62,395,000)	(50,964,000)
Effect on fair value of 20% adverse change	(124,790,000)	(101,929,000)
Fair Values \| Mortgage servicing rights \| Level 3 \| Minimum
Prepayment speed
Annual per-loan cost of servicing	79	79
Fair Values \| Mortgage servicing rights \| Level 3 \| Maximum
Prepayment speed
Annual per-loan cost of servicing	117	117
Fair Values \| Mortgage servicing rights \| Level 3 \| Weighted average
Prepayment speed
Annual per-loan cost of servicing	$ 107	$ 107
Fair Values \| Mortgage servicing rights \| Pricing spread \| Level 3 \| Minimum
Inputs
Input \| item	6.3	8
Fair Values \| Mortgage servicing rights \| Pricing spread \| Level 3 \| Maximum
Inputs
Input \| item		17.6
Fair Values \| Mortgage servicing rights \| Pricing spread \| Level 3 \| Weighted average
Inputs
Input \| item	8.4	10.1
Fair Values \| Mortgage servicing rights \| Annual total prepayment speed \| Level 3 \| Minimum
Inputs
Input \| item	7.9	10.1
Fair Values \| Mortgage servicing rights \| Annual total prepayment speed \| Level 3 \| Maximum
Inputs
Input \| item	29.1	32.9
Fair Values \| Mortgage servicing rights \| Annual total prepayment speed \| Level 3 \| Weighted average
Inputs
Input \| item	10.5	13.7
Fair Values \| Mortgage servicing rights \| Life \| Level 3 \| Minimum
Inputs
Input \| item	3	2.3
Fair Values \| Mortgage servicing rights \| Life \| Level 3 \| Maximum
Inputs
Input \| item	7.8	7.7
Fair Values \| Mortgage servicing rights \| Life \| Level 3 \| Weighted average
Inputs
Input \| item	6.9	6

Fair Value - Level 3 Unobserv_4

Fair Value - Level 3 Unobservable Inputs, ESS (Details) - Excess servicing spread financing - Level 3 $ in Thousands	12 Months Ended
	Dec. 31, 2020USD ($)item
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption
Carrying value \| $	$ 131,750
Unpaid principal balance of underlying mortgage loans \| $	$ 15,833,050
Average servicing fee rate (as a percent)	0.34%
Average excess servicing spread (as a percent)	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
Input	4.9
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
Input	5.3
Pricing spread \| Weighted average
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption
Input	5.1
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
Input	9.6
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
Input	18.3
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
Input	11.7
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
Input	2.3
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
Input	6.6
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
Input	5.8

Fair Value - Level 3 Unobserv_5

Fair Value - Level 3 Unobservable Inputs, Mortgage Servicing Liabilities (Details)	6 Months Ended	12 Months Ended
	Jun. 30, 2021USD ($)item	Dec. 31, 2020USD ($)item
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption
Carrying value	$ 100,091,000	$ 45,324,000
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
Carrying value	100,091,000	45,324,000
Unpaid principal balance of underlying loans	$ 6,135,249,000	$ 2,857,492,000
Servicing fee rate (as a percent)	0.25%	0.25%
Annual per-loan cost of servicing	$ 278	$ 305
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
Input \| item	7.7	7.6
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
Input \| item	31.8	33.3
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
Input \| item	3.5	3.2

Loans Held for Sale at Fair V_3

Loans Held for Sale at Fair Value (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Mortgage Loans Held for Sale at Fair Value
Loans held for sale	$ 10,884,506	$ 11,616,400
Fair value of loans pledged to secure assets sold under agreements to repurchase	9,917,262	10,912,178
Fair value of loans pledged to secure mortgage loan participation purchase and sale agreement	533,864	545,500
Pledged Assets Separately Reported, Loans Pledged as Collateral, at Fair Value, Total	10,451,126	11,457,678
Government-insured or guaranteed
Mortgage Loans Held for Sale at Fair Value
Loans held for sale	5,115,678	5,683,786
Conventional conforming
Mortgage Loans Held for Sale at Fair Value
Loans held for sale	1,950,567	1,257,445
Purchased from Ginnie Mae pools serviced by the Company
Mortgage Loans Held for Sale at Fair Value
Loans held for sale	3,789,022	4,661,378
Repurchased pursuant to representations and warranties
Mortgage Loans Held for Sale at Fair Value
Loans held for sale	$ 29,239	$ 13,791

Derivative Financial Instrume_3

Derivative Financial Instruments - Other Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Derivative assets:
Derivative asset, before netting	$ 469,285		$ 469,285		$ 847,831
Netting	(98,016)		(98,016)		(136,593)
Total derivative assets	371,269		371,269		711,238
Derivative liabilities:
Derivative liability, before netting	92,139		92,139		255,360
Netting	(48,229)		(48,229)		(212,722)
Net amounts of liabilities presented in the consolidated balance sheet	43,910		43,910		42,638
Activity for derivative contracts used to hedge the IRLCs and inventory of mortgage loans at notional value
Gains (losses) recognized on derivative financial instruments	91,118	$ (15,764)	(351,033)	$ 1,020,806
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	(167,734)	(101,115)	294,804	(326,672)
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	91,118	(15,764)	(351,033)	1,020,806
Margin Deposits
Derivative assets:
Collateral placed with (received from) derivative counterparties	(49,787)		(49,787)		76,129
Interest rate lock commitments
Derivative assets:
Total derivative assets	344,128		344,128		679,961
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	5,670	$ 52,871	(333,416)	$ 231,414
Forward contracts \| Purchases
Derivative Instruments
Notional amount	24,712,770		24,712,770		31,689,543
Derivative assets:
Derivative asset, before netting	55,765		55,765		133,267
Derivative liabilities:
Derivative liability, before netting	23,274		23,274		1,276
Activity for derivative contracts used to hedge the IRLCs and inventory of mortgage loans at notional value
Balance at beginning of period			31,689,543
Balance at end of period	24,712,770		24,712,770
Forward contracts \| Sales
Derivative Instruments
Notional amount	37,785,066		37,785,066		50,438,967
Derivative assets:
Derivative asset, before netting	39,597		39,597		1,451
Derivative liabilities:
Derivative liability, before netting	68,347		68,347		251,149
Activity for derivative contracts used to hedge the IRLCs and inventory of mortgage loans at notional value
Balance at beginning of period			50,438,967
Balance at end of period	37,785,066		37,785,066
MBS put options
Derivative Instruments
Notional amount	11,450,000		11,450,000		12,025,000
Derivative assets:
Derivative asset, before netting	13,106		13,106		14,302
Activity for derivative contracts used to hedge the IRLCs and inventory of mortgage loans at notional value
Balance at beginning of period			12,025,000
Balance at end of period	11,450,000		11,450,000
MBS call options
Derivative Instruments
Notional amount	750,000		750,000
Derivative assets:
Derivative asset, before netting	687		687
Activity for derivative contracts used to hedge the IRLCs and inventory of mortgage loans at notional value
Balance at end of period	750,000		750,000
Swaptions \| Purchases
Derivative Instruments
Notional amount	5,455,000		5,455,000		3,375,000
Derivative assets:
Derivative asset, before netting	11,041		11,041		11,939
Activity for derivative contracts used to hedge the IRLCs and inventory of mortgage loans at notional value
Balance at beginning of period			3,375,000
Balance at end of period	5,455,000		5,455,000
Put options on interest rate futures \| Purchases
Derivative Instruments
Notional amount	3,450,000		3,450,000		4,750,000
Derivative assets:
Derivative asset, before netting	2,664		2,664		5,520
Activity for derivative contracts used to hedge the IRLCs and inventory of mortgage loans at notional value
Balance at beginning of period			4,750,000
Balance at end of period	3,450,000		3,450,000
Call options on interest rate futures \| Purchases
Derivative Instruments
Notional amount	350,000		350,000		850,000
Derivative assets:
Derivative asset, before netting	2,297		2,297		1,391
Activity for derivative contracts used to hedge the IRLCs and inventory of mortgage loans at notional value
Balance at beginning of period			850,000
Balance at end of period	350,000		350,000
Treasury future \| Purchases
Derivative Instruments
Notional amount	705,000		705,000		1,065,000
Activity for derivative contracts used to hedge the IRLCs and inventory of mortgage loans at notional value
Balance at beginning of period			1,065,000
Balance at end of period	705,000		705,000
Treasury future \| Sales
Derivative Instruments
Notional amount	1,480,000		1,480,000		1,555,000
Activity for derivative contracts used to hedge the IRLCs and inventory of mortgage loans at notional value
Balance at beginning of period			1,555,000
Balance at end of period	1,480,000		1,480,000
Interest rate swap futures \| Purchases
Derivative Instruments
Notional amount	4,040,000		4,040,000		4,801,700
Activity for derivative contracts used to hedge the IRLCs and inventory of mortgage loans at notional value
Balance at beginning of period			4,801,700
Balance at end of period	4,040,000		4,040,000
Interest rate swap futures \| Sales
Derivative Instruments
Notional amount	250,000		250,000		711,700
Activity for derivative contracts used to hedge the IRLCs and inventory of mortgage loans at notional value
Balance at beginning of period			711,700
Balance at end of period	250,000		250,000
Not designated as hedging instrument \| Interest rate lock commitments
Derivative Instruments
Notional amount	13,879,343		13,879,343		20,624,535
Derivative assets:
Derivative asset, before netting	344,128		344,128		679,961
Derivative liabilities:
Derivative liability, before netting	518		518		$ 2,935
Activity for derivative contracts used to hedge the IRLCs and inventory of mortgage loans at notional value
Balance at beginning of period			20,624,535
Balance at end of period	$ 13,879,343		$ 13,879,343

Derivative Financial Instrume_4

Derivative Financial Instruments - Offsetting of Derivative Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Derivatives subject to master netting arrangements:
Gross amounts of recognized assets	$ 125,157	$ 167,870
Gross amounts offset in the consolidated balance sheet	(98,016)	(136,593)
Net amounts of assets presented in the consolidated balance sheet	27,141	31,277
Total
Gross amounts of recognized assets	469,285	847,831
Net amounts of assets presented in the balance sheet	371,269	711,238
Interest rate lock commitments
Derivatives not subject to master netting arrangements
Gross amounts of recognized assets	344,128	679,961
Total
Net amounts of assets presented in the balance sheet	344,128	679,961
MBS put options
Derivatives subject to master netting arrangements:
Gross amounts of recognized assets	13,106	14,302
Net amounts of assets presented in the consolidated balance sheet	13,106	14,302
Total
Gross amounts of recognized assets	13,106	14,302
MBS call options
Derivatives subject to master netting arrangements:
Gross amounts of recognized assets	687
Net amounts of assets presented in the consolidated balance sheet	687
Total
Gross amounts of recognized assets	687
Swaptions \| Purchases
Derivatives subject to master netting arrangements:
Gross amounts of recognized assets	11,041	11,939
Net amounts of assets presented in the consolidated balance sheet	11,041	11,939
Total
Gross amounts of recognized assets	11,041	11,939
Forward contracts \| Purchases
Derivatives subject to master netting arrangements:
Gross amounts of recognized assets	55,765	133,267
Net amounts of assets presented in the consolidated balance sheet	55,765	133,267
Total
Gross amounts of recognized assets	55,765	133,267
Forward contracts \| Sales
Derivatives subject to master netting arrangements:
Gross amounts of recognized assets	39,597	1,451
Net amounts of assets presented in the consolidated balance sheet	39,597	1,451
Total
Gross amounts of recognized assets	39,597	1,451
Put options on interest rate futures \| Purchases
Derivatives subject to master netting arrangements:
Gross amounts of recognized assets	2,664	5,520
Net amounts of assets presented in the consolidated balance sheet	2,664	5,520
Total
Gross amounts of recognized assets	2,664	5,520
Call options on interest rate futures \| Purchases
Derivatives subject to master netting arrangements:
Gross amounts of recognized assets	2,297	1,391
Net amounts of assets presented in the consolidated balance sheet	2,297	1,391
Total
Gross amounts of recognized assets	$ 2,297	$ 1,391

Derivative Financial Instrume_5

Derivative Financial Instruments - Offsetting of Derivative Assets - Derivative Assets, Financial Assets, and Collateral Held by Counterparty (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Total
Net amounts of assets presented in the balance sheet	$ 371,269	$ 711,238
Net amount	371,269	711,238
JP Morgan
Total
Net amounts of assets presented in the balance sheet	11,325	17,149
Net amount	11,325	17,149
RJ O'Brien
Total
Net amounts of assets presented in the balance sheet	4,961	6,910
Net amount	4,961	6,910
Morgan Stanley Bank
Total
Net amounts of assets presented in the balance sheet		2,443
Net amount		2,443
Citibank, N.A.
Total
Net amounts of assets presented in the balance sheet		2,026
Net amount		2,026
Barclays
Total
Net amounts of assets presented in the balance sheet	3,166
Net amount	3,166
Bank of America, N.A.
Total
Net amounts of assets presented in the balance sheet	5,972
Net amount	5,972
Other
Total
Net amounts of assets presented in the balance sheet	1,717	2,749
Net amount	1,717	2,749
Interest rate lock commitments
Total
Net amounts of assets presented in the balance sheet	344,128	679,961
Net amount	$ 344,128	$ 679,961

Derivative Financial Instrume_6

Derivative Financial Instruments - Offsetting of Derivative Assets - Offsetting of Derivative and Financial Liabilities (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2021	Dec. 31, 2020
Derivatives: Subject to master netting arrangements:
Gross amounts of recognized liabilities	$ 91,621	$ 252,425
Netting	(48,229)	(212,722)
Net amounts of liabilities presented in the balance sheet	43,392	39,703
Total
Gross amounts of recognized liabilities	92,139	255,360
Net amounts of liabilities presented in the consolidated balance sheet	43,910	42,638
Mortgage loans sold under agreements to repurchase
Net amounts of liabilities presented in the consolidated balance sheet	8,262,251
Debt Issuance Costs
Debt issuance costs, gross	(7,708)	(9,198)
Debt issuance costs	(7,708)	(9,198)
Gross amounts of recognized liabilities	8,254,543	9,654,797
Net amount of liabilities in the consolidated balance sheet	8,254,543	9,654,797
Total
Gross amounts of recognized liabilities	8,346,682	9,910,157
Gross amounts offset in the consolidated balance sheet	(48,229)	(212,722)
Net amounts of liabilities presented in the consolidated balance sheet	8,306,161	9,706,633
Net amount of liabilities in the consolidated balance sheet	43,910	42,638
Receivable from Counterparties
Total
Net amounts of liabilities presented in the consolidated balance sheet	8,298,453	9,697,435
Assets sold under agreements to repurchase
Mortgage loans sold under agreements to repurchase
Gross amounts of recognized liabilities	8,262,251	9,663,995
Net amounts of liabilities presented in the consolidated balance sheet	8,262,251	9,663,995
Net amounts of liabilities presented in the consolidated balance sheet	8,262,251	9,663,995
Debt Issuance Costs
Debt issuance costs	(7,708)	(9,198)
Net amount of liabilities in the consolidated balance sheet	8,254,543	9,654,797
Forward contracts \| Purchases
Derivatives: Subject to master netting arrangements:
Gross amounts of recognized liabilities	23,274	1,276
Net amounts of liabilities presented in the balance sheet	23,274	1,276
Total
Gross amounts of recognized liabilities	23,274	1,276
Forward contracts \| Sales
Derivatives: Subject to master netting arrangements:
Gross amounts of recognized liabilities	68,347	251,149
Net amounts of liabilities presented in the balance sheet	68,347	251,149
Total
Gross amounts of recognized liabilities	68,347	251,149
Interest rate lock commitments
Derivatives not subject to master netting arrangements
Gross amounts of recognized liabilities	518	2,935
Total
Net amounts of liabilities presented in the consolidated balance sheet	518	2,935
Net amount of liabilities in the consolidated balance sheet	$ 518	$ 2,935

Derivative Financial Instrume_7

Derivative Financial Instruments - Offsetting of Derivative Assets - Derivative Liabilities, Financial Liabilities, and Collateral Held by Counterparty (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Derivative liabilities:
Net amounts of liabilities presented in the consolidated balance sheet	$ 8,306,161	$ 9,706,633
Financial instruments	(8,262,251)	(9,663,995)
Net amount of liabilities in the consolidated balance sheet	43,910	42,638
Credit Suisse First Boston Mortgage Capital LLC
Derivative liabilities:
Net amounts of liabilities presented in the consolidated balance sheet	2,214,762	2,752,279
Financial instruments	(2,214,762)	(2,752,279)
JP Morgan
Derivative liabilities:
Net amounts of liabilities presented in the consolidated balance sheet	1,873,730	3,947,752
Financial instruments	(1,866,023)	(3,943,149)
Net amount of liabilities in the consolidated balance sheet	7,707	4,603
Bank of America, N.A.
Derivative liabilities:
Net amounts of liabilities presented in the consolidated balance sheet	1,053,871	634,523
Financial instruments	(1,053,871)	(626,550)
Net amount of liabilities in the consolidated balance sheet		7,973
Barclays
Derivative liabilities:
Net amounts of liabilities presented in the consolidated balance sheet	348,272	596,729
Financial instruments	(348,272)	(596,729)
Citibank, N.A.
Derivative liabilities:
Net amounts of liabilities presented in the consolidated balance sheet	204,515	505,625
Financial instruments	(193,628)	(505,625)
Net amount of liabilities in the consolidated balance sheet	10,887
Royal Bank of Canada
Derivative liabilities:
Net amounts of liabilities presented in the consolidated balance sheet	728,898	406,348
Financial instruments	(728,898)	(406,348)
BNP Paribas
Derivative liabilities:
Net amounts of liabilities presented in the consolidated balance sheet	372,377	337,823
Financial instruments	(372,377)	(336,545)
Net amount of liabilities in the consolidated balance sheet		1,278
Morgan Stanley Bank
Derivative liabilities:
Net amounts of liabilities presented in the consolidated balance sheet	353,729	331,546
Financial instruments	(353,729)	(331,546)
Wells Fargo Bank, N.A.
Derivative liabilities:
Net amounts of liabilities presented in the consolidated balance sheet	349,852	169,085
Financial instruments	(342,509)	(165,224)
Net amount of liabilities in the consolidated balance sheet	7,343	3,861
Federal National Mortgage Association
Derivative liabilities:
Net amounts of liabilities presented in the consolidated balance sheet		12,928
Net amount of liabilities in the consolidated balance sheet		12,928
Mizuho Securities
Derivative liabilities:
Net amounts of liabilities presented in the consolidated balance sheet	14,225	6,491
Net amount of liabilities in the consolidated balance sheet	14,225	6,491
Goldman Sachs
Derivative liabilities:
Net amounts of liabilities presented in the consolidated balance sheet	788,182
Financial instruments	(788,182)
Other
Derivative liabilities:
Net amounts of liabilities presented in the consolidated balance sheet	3,230	2,569
Net amount of liabilities in the consolidated balance sheet	3,230	2,569
Interest rate lock commitments
Derivative liabilities:
Net amounts of liabilities presented in the consolidated balance sheet	518	2,935
Net amount of liabilities in the consolidated balance sheet	$ 518	$ 2,935

Mortgage Servicing Rights and_3

Mortgage Servicing Rights and Mortgage Servicing Liabilities - Activity in MSRs at Fair Value (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Change in fair value due to:
Total change in fair value	$ 336,268	$ 205,789	$ 112,805	$ 1,241,002
Mortgage servicing rights
Activity in MSRs carried at fair value
Balance at beginning of period	3,268,910	2,193,697	2,581,174	2,926,790
Additions - Resulting from loan sales	483,362	225,534	953,895	507,849
Additions - Purchases (purchase adjustments)				25,760
Additions	483,362	225,534	953,895	533,609
Change in fair value due to:
Changes in valuation inputs used in valuation model	(239,514)	(98,681)	73,376	(1,014,543)
Other changes in fair value	(100,110)	(107,011)	(195,797)	(232,317)
Total change in fair value	(339,624)	(205,692)	(122,421)	(1,246,860)
Balance at end of period	3,412,648	$ 2,213,539	3,412,648	$ 2,213,539
Fair value of mortgage servicing rights pledged to secure Assets sold under agreements to repurchase and Notes payable secured by mortgage servicing assets	$ 3,408,088		$ 3,408,088		$ 2,577,964

Mortgage Servicing Rights and_4

Mortgage Servicing Rights and Mortgage Servicing Liabilities - Mortgage Servicing Liabilities Carried at FV (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Amortized cost:
Mortgage servicing liabilities resulting from loan sales			$ 64,383	$ 6,576
Mortgage servicing liabilities
Amortized cost:
Balance at beginning of period	$ 46,026	$ 29,761	45,324	29,140
Mortgage servicing liabilities resulting from loan sales	57,421		64,383	6,576
Changes in valuation inputs used in valuation model	11,083	9,673	17,847	14,105
Other changes in fair value	(14,439)	(9,576)	(27,463)	(19,963)
Total change in fair value	(3,356)	97	(9,616)	(5,858)
Balance at end of period	$ 100,091	$ 29,858	$ 100,091	$ 29,858

Mortgage Servicing Rights and_5

Mortgage Servicing Rights and Mortgage Servicing Liabilities - Servicing, Late, Ancillary and Other Fees Relating to MSRs (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Contractual servicing fees	$ 208,275	$ 199,178	$ 419,028	$ 397,831
Other fees:
Other	31,731	28,543	61,330	57,298
Mortgage servicing rights
Contractual servicing fees	208,275	199,178	419,028	397,831
Other fees:
Late charges	6,665	8,490	14,596	21,103
Other	7,768	5,971	15,622	10,821
Bank Servicing Fees	$ 222,708	$ 213,639	$ 449,246	$ 429,755

Leases (Details)

Leases (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
Leases (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Leases
Operating lease option to extend			true
Lease expenses:
Operating leases	$ 4,508	$ 4,034	$ 8,874	$ 7,966
Short-term leases	420	224	470	480
Total lease cost	4,928	4,258	9,344	8,446
Payments for operating leases	5,149	4,354	10,185	8,794
Right-of-use assets obtained in exchange for lease obligations	$ 4,570	$ 4,964	$ 7,813	$ 6,498
Remaining lease term (in year)	5 years 10 months 24 days	6 years 7 months 6 days	5 years 10 months 24 days	6 years 7 months 6 days
Discount rate (as a percent)	4.10%	4.20%	4.10%	4.20%
Operating lease liabilities
2022	$ 19,401		$ 19,401
2023	18,968		18,968
2024	17,503		17,503
2025	15,929		15,929
2026	14,324		14,324
Thereafter	20,945		20,945
Total lease payments	107,070		107,070
Less imputed interest	(10,607)		(10,607)
Total	$ 96,463		$ 96,463		$ 94,193
Minimum
Leases
Remaining operating lease term	1 year		1 year
Maximum
Leases
Remaining operating lease term	10 years		10 years
Operating lease renewal term	5 years		5 years

Other Assets - Other (Details)

Other Assets - Other (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Carrying value:
Margin deposits	$ 103,863	$ 116,881
Capitalized software, net	91,712	81,434
Prepaid Expense	57,800	53,975
Deposits	49,934	153,054
Net servicing fee receivables	31,012	42,282
Furniture, fixtures, equipment and building improvements, net	32,887	32,217
Real estate acquired in settlement of loans	8,548	12,158
Other	236,517	200,168
Other assets	612,273	692,169
Assets pledged to secure Obligation under capital lease:
Capitalized software, net	6,024	7,675
Furniture, fixture, equipment and building improvements, net	4,899	5,689
Assets securing capital lease	$ 60,857	$ 166,418

Short-Term Borrowings - Assets

Short-Term Borrowings - Assets Sold Under Agreement to Repurchase (Details) - USD ($)	Apr. 28, 2021	Dec. 19, 2016	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020	Apr. 01, 2020
During the period:
Total interest expense			$ 44,623,000	$ 17,487,000	$ 96,802,000	$ 43,171,000
Carrying value:
Unpaid principal balance			8,262,251,000		8,262,251,000
Unamortized debt issuance costs and premiums			(7,708,000)		(7,708,000)		$ (9,198,000)
Total loans sold under agreements to repurchase			8,254,543,000		8,254,543,000		9,654,797,000
PennyMac Holdings, L L C Repurchase Agreement
Carrying value:
Related Party Transaction, Maximum Principal Balance of Variable Funding Note		$ 1,000,000,000
Fannie Mae Repurchase Agreement
Carrying value:
Related Party Transaction, Maximum Principal Balance of Variable Funding Note	$ 1,000,000,000
FMSR VFN Repurchase Agreement
Carrying value:
Related Party Transaction, Maximum Principal Balance of Variable Funding Note	$ 250,000,000
Note Payable
During the period:
Average balance of assets sold under agreements to repurchase			1,300,000,000	1,300,000,000	1,300,000,000	1,300,000,000
Carrying value:
Amortization of debt issuance costs			634,000	451,000	1,200,000	896,000
Assets sold under agreements to repurchase
During the period:
Average balance of assets sold under agreements to repurchase			$ 7,571,340,000	$ 2,529,217,000	$ 7,999,580,000	$ 2,833,444,000
Weighted-average interest rate (as a percent)			2.07%	2.32%	2.13%	2.74%
Total interest expense			$ 44,623,000	$ 17,487,000	$ 96,802,000	$ 43,171,000
Maximum daily amount outstanding			10,856,677,000	3,769,495,000	10,856,677,000	3,769,495,000
Carrying value:
Unpaid principal balance			8,262,251,000		8,262,251,000		9,663,995,000
Unamortized debt issuance costs			(7,708,000)		(7,708,000)		(9,198,000)
Total loans sold under agreements to repurchase			$ 8,254,543,000		$ 8,254,543,000		$ 9,654,797,000
Weighted average interest rate (as a percent)			1.86%		1.86%		1.90%
Available borrowing capacity committed			$ 666,772,000		$ 666,772,000		$ 372,803,000
Available borrowing capacity uncommitted			6,695,976,000		6,695,976,000		2,163,202,000
Available borrowing capacity			7,362,748,000		7,362,748,000		2,536,005,000
Margin deposits placed with counterparties			10,875,000		10,875,000		5,625,000
Amortization of debt issuance costs			5,300,000	$ 2,800,000	11,800,000	$ 4,400,000
Assets sold under agreements to repurchase \| Loans held for sale
Carrying value:
Fair value of assets pledged to secure			9,917,262,000		9,917,262,000		10,912,178,000
Assets sold under agreements to repurchase \| Mortgage servicing rights
Carrying value:
Fair value of assets pledged to secure			3,209,383,000		3,209,383,000		2,490,267,000
Assets sold under agreements to repurchase \| Servicing advances
Carrying value:
Fair value of assets pledged to secure			311,896,000		311,896,000		413,484,000
Assets sold under agreements to repurchase \| Financing receivable
Carrying value:
Fair value of assets pledged to secure							80,862,000
Assets sold under agreements to repurchase \| Deposits
Carrying value:
Fair value of assets pledged to secure			$ 49,934,000		$ 49,934,000		$ 153,054,000
PLS \| Credit Suisse First Boston Mortgage Capital LLC \| Note Payable
Mortgage loans sold under agreement to repurchase
Maximum loan amount								$ 600,000,000

Short-Term Borrowings - Maturit

Short-Term Borrowings - Maturities of Outstanding Advances Under Repurchase Agreements (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2021USD ($)
Mortgage loans sold under agreement to repurchase
Unpaid principal balance	$ 8,262,251
Weighted-average maturity (in months)	2 months 6 days
Within 30 days
Mortgage loans sold under agreement to repurchase
Unpaid principal balance	$ 3,532,563
Over 30 to 90 days
Mortgage loans sold under agreement to repurchase
Unpaid principal balance	3,396,557
Over 90 to 180 days
Mortgage loans sold under agreement to repurchase
Unpaid principal balance	987,861
Over 180 days to one year
Mortgage loans sold under agreement to repurchase
Unpaid principal balance	295,270
Over one year to two year
Mortgage loans sold under agreement to repurchase
Unpaid principal balance	$ 50,000

Short-Term Borrowings - Mortgag

Short-Term Borrowings - Mortgage Loans Sold Under Agreement to Repurchase by Counterparty (Details) - Assets sold under agreements to repurchase $ in Thousands	Jun. 30, 2021USD ($)
Credit Suisse First Boston Mortgage Capital LLC Tranche Two
Mortgage loans sold under agreement to repurchase
Amount at risk	$ 2,126,158
Credit Suisse First Boston Mortgage Capital LLC Tranche One
Mortgage loans sold under agreement to repurchase
Amount at risk	724,309
Bank of America, N.A.
Mortgage loans sold under agreement to repurchase
Amount at risk	397,300
JP Morgan Chase Bank
Mortgage loans sold under agreement to repurchase
Amount at risk	207,772
JP Morgan
Mortgage loans sold under agreement to repurchase
Amount at risk	1,891
BNP Paribas
Mortgage loans sold under agreement to repurchase
Amount at risk	124,512
Barclays
Mortgage loans sold under agreement to repurchase
Amount at risk	41,978
Goldman Sachs
Mortgage loans sold under agreement to repurchase
Amount at risk	77,468
Citibank, N.A.
Mortgage loans sold under agreement to repurchase
Amount at risk	11,835
Morgan Stanley Bank
Mortgage loans sold under agreement to repurchase
Amount at risk	44,701
Royal Bank of Canada
Mortgage loans sold under agreement to repurchase
Amount at risk	55,641
Wells Fargo Bank, N.A.
Mortgage loans sold under agreement to repurchase
Amount at risk	$ 20,750

Short-Term Borrowings - Mortg_2

Short-Term Borrowings - Mortgage Loan Participation and Sale Agreement (Details) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020	Nov. 01, 2018
During the period:
Total interest expense	$ 1,039,000	$ 1,061,000	$ 2,134,000	$ 2,871,000
Carrying value:
Mortgage loan participation and sale agreement secured by mortgage loan participation certificates	512,253,000		512,253,000		$ 521,477,000
Fair value of loans pledged to secure	533,864,000		533,864,000		545,500,000
Mortgage Loan Participation and Sale Agreement member
During the period:
Average balance	$ 254,343,000	$ 240,119,000	$ 265,390,000	$ 243,965,000
Weighted-average interest rate (as a percent)	1.36%	1.53%	1.35%	2.09%
Total interest expense	$ 1,039,000	$ 1,061,000	$ 2,134,000	$ 2,871,000
Carrying value:
Unpaid principal balance of mortgage loan participation and sale agreement secured by mortgage loan participation certificates	512,253,000		512,253,000		521,477,000
Mortgage loan participation and sale agreement secured by mortgage loan participation certificates	$ 512,253,000		$ 512,253,000		$ 521,477,000
Weighted average interest rate (as a percent)	1.48%		1.48%		1.39%
Fair value of loans pledged to secure	$ 533,864,000		$ 533,864,000		$ 545,500,000
Amortization of debt issuance costs	172,000	145,000	344,000	318,000
Mortgage Loan Participation and Sale Agreement member \| Maximum
Carrying value:
Mortgage loan participation and sale agreement secured by mortgage loan participation certificates	528,844,000	540,977,000	528,844,000	540,977,000
Note Payable
Carrying value:
Unamortized debt issuance costs	(3,269,000)		(3,269,000)		(4,160,000)
Amortization of debt issuance costs	$ 634,000	$ 451,000	1,200,000	$ 896,000
Revolving credit agreement \| Note Payable
Carrying value:
Maximum loan amount						$ 150,000,000
Increase in loan amount			$ 0		$ 0

Long-Term Debt - Obligations Un

Long-Term Debt - Obligations Under Capital Lease (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Leases
Average balance	$ 9,072	$ 17,272	$ 10,169	$ 18,367
Weighted average interest rate	2.10%	2.70%	2.12%	3.05%
Total interest expense	$ 48	$ 104	$ 107	$ 271
Unpaid principal balance	$ 7,677		$ 7,677		$ 11,864
Weighted average interest rate	2.07%		2.07%		2.15%
Capitalized software pledged to creditors	$ 6,024		$ 6,024		$ 7,675
Furniture, fixtures, equipment and building improvements pledged to creditors	4,899		4,899		$ 5,689
Maximum
Leases
Maximum daily amount outstanding	$ 10,468	$ 18,145	$ 11,864	$ 20,810

Long-Term Debt - Note Payable (

Long-Term Debt - Note Payable (Details) - USD ($)	Sep. 29, 2020	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020	Feb. 01, 2018
During the period:
Total interest expense		$ 10,104,000	$ 11,109,000	$ 19,992,000	$ 25,955,000
Unpaid principal balance		8,262,251,000		8,262,251,000
Unamortized debt issuance costs and premiums		(7,708,000)		(7,708,000)		$ (9,198,000)
Carrying value:
Notes payable		1,296,731,000		1,296,731,000		1,295,840,000
Notes payable
Maximum loan amount		1,300,000,000		1,300,000,000
Note Payable
During the period:
Average balance		$ 1,300,000,000	$ 1,300,000,000	$ 1,300,000,000	$ 1,300,000,000
Weighted-average interest rate (as a percent)		2.91%	3.28%	2.90%	3.86%
Total interest expense		$ 10,104,000	$ 11,109,000	$ 19,992,000	$ 25,955,000
Carrying value:
Unpaid principal balance		1,300,000,000		1,300,000,000		1,300,000,000
Unamortized debt issuance costs		(3,269,000)		(3,269,000)		(4,160,000)
Notes payable		$ 1,296,731,000		$ 1,296,731,000		$ 1,295,840,000
Weighted-average interest rate (as a percent)		2.84%		2.84%		2.93%
Amortization of Financing Costs		$ 634,000	451,000	$ 1,200,000	896,000
Note Payable \| Credit Suisse AG
Long-Term debt
Maximum loan amount							$ 600,000,000
Note Payable \| Mortgage servicing rights
Carrying value:
Assets pledged to secure		3,164,980,000		3,164,980,000		$ 2,421,326,000
Notes payable
Increase in loan amount		0	$ 0	0	$ 0
Note Payable \| Servicing advances
Carrying value:
Assets pledged to secure		311,896,000		311,896,000		413,484,000
Note Payable \| Deposits
Carrying value:
Assets pledged to secure		49,934,000		$ 49,934,000		153,054,000
Notes Payable Term Loan 2018-GT1
Notes payable
Debt instrument option to extend period				2 years
Notes Payable Term Loan 2018-GT1 \| LIBOR
Notes payable
Maximum loan amount		650,000,000		$ 650,000,000
Interest rate spread				2.85%
Notes Payable Term Loan 2018-GT2
Notes payable
Debt instrument option to extend period				2 years
Notes Payable Term Loan 2018-GT2 \| LIBOR
Notes payable
Maximum loan amount		650,000,000		$ 650,000,000
Interest rate spread				2.65%
Unsecured Senior Note
During the period:
Average balance		$ 1,300,000,000		$ 1,152,762,000
Weighted-average interest rate (as a percent)		4.81%		4.81%
Total interest expense		$ 16,169,000		$ 28,839,000
Unpaid principal balance		1,300,000,000		1,300,000,000		650,000,000
Unamortized debt issuance costs and premiums		(11,231,000)		(11,231,000)		(4,180,000)
Debt Instrument Unamortized Premium And Debt Issuance Costs Net		$ 1,288,769,000		$ 1,288,769,000		$ 645,820,000
Weighted average interest rate (as a percent)		4.81%		4.81%		5.38%
Carrying value:
Amortization of Financing Costs		$ 571,000		$ 918,000
Notes payable
Maximum loan amount		1,300,000,000		$ 1,300,000,000
Unsecured Senior Note \| Before October 15, 2022
Notes payable
Redemption rate (as a percent)	100.00%
Unsecured Senior Note \| Before October 15, 2022 with up to 40% principal redeemed
Notes payable
Redemption rate (as a percent)				105.375%	104.25%
Unsecured Senior Note \| Change of Control
Notes payable
Redemption rate (as a percent)	101.00%
Unsecured Senior Note \| Maximum \| Before October 15, 2022 with up to 40% principal redeemed
Notes payable
Aggregate principal amount of notes that can be redeemed	40.00%
Unsecured Senior Notes One Due October 2025
Notes payable
Maximum loan amount		500,000,000		$ 500,000,000
Interest rate spread				5.38%
Unsecured Senior Notes Two Due October 2025
Notes payable
Maximum loan amount		150,000,000		$ 150,000,000
Interest rate spread				5.38%
Unsecured Senior Notes Due February 2029
Notes payable
Maximum loan amount		$ 650,000,000		$ 650,000,000
Interest rate spread				4.25%

Long-Term Debt - Maturities (De

Long-Term Debt - Maturities (Details) $ in Thousands	Jun. 30, 2021USD ($)
Long-Term debt
2022	$ 7,677
2023	650,000
2024	650,000
2026	650,000
Thereafter	650,000
Total	2,607,677
Obligations under capital lease
Long-Term debt
2022	7,677
Total	7,677
Note Payable
Long-Term debt
2023	650,000
2024	650,000
Total	1,300,000
Unsecured Senior Note
Long-Term debt
2026	650,000
Thereafter	650,000
Total	$ 1,300,000

Liability for Losses Under Re_3

Liability for Losses Under Representations and Warranties (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
During the year:
Balance at beginning of period	$ 38,428	$ 23,202	$ 32,688	$ 21,446
Provision for losses on loans sold resulting from sales of loans	10,304	4,189	20,357	7,901
Provision for losses on loans sold reduction in liability due to change in estimate	(3,640)	(1,270)	(7,325)	(2,946)
Losses incurred, net	(757)	(212)	(1,385)	(492)
Balance at end of period	44,335	25,909	44,335	25,909
Unpaid principal balance of loans subject to representations and warranties at end of period	$ 234,327,924	$ 192,064,630	$ 234,327,924	$ 192,064,630

Income Taxes (Details)

Income Taxes (Details)	3 Months Ended		6 Months Ended
Income Taxes (Details)	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
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%	26.60%	26.00%	26.40%

Commitments and Contingencies -

Commitments and Contingencies - Other (Details) $ in Billions	Jun. 30, 2021USD ($)
Commitments and Contingencies.
Total commitments to purchase and fund mortgage loans	$ 13.9

Stockholders' Equity (Details)

Stockholders' Equity (Details) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended		49 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Feb. 28, 2021	Jun. 30, 2017
Stockholders' Equity
Authorized stock repurchase amount						$ 1,000,000
Cost of shares of common stock repurchased	$ 154,920	$ 237,162	$ 443,439	$ 241,283
Common Stock
Stockholders' Equity
Authorized stock repurchase amount						$ 1,000,000	$ 500,000
Shares of common stock repurchased	2,574	6,975	7,227	7,213	16,933
Cost of shares of common stock repurchased	$ 154,920	$ 237,162	$ 443,439	$ 241,283	$ 795,866

Net Gains on Loans Held for S_3

Net Gains on Loans Held for Sale (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Cash gains:
Loans	$ 387,305	$ 502,416	$ 470,017	$ 614,173
Hedging activities	(325,651)	(227,013)	410,574	(349,679)
Cash gain (loss), net of effects of cash hedging, on sale of loans held for sale	61,654	275,403	880,591	264,494
Non-cash gain:
Mortgage servicing rights and mortgage servicing liabilities resulting from loan sales	425,941	225,534	889,512	501,273
Provision for losses relating to representations and warranties on loans sold pursuant to loan sales	(10,304)	(4,189)	(20,357)	(7,901)
Provision for losses relating to representations and warranties on loans sold reduction in liability due to change in estimate	3,640	1,270	7,325	2,946
Change in fair value of loans and derivatives held at year end:
Interest rate lock commitments	5,670	52,871	(333,416)	231,414
Loans	(50,322)	10,978	54,900	(61,102)
Hedging derivatives	157,917	125,898	(115,770)	23,007
From non-affiliates	594,196	687,765	1,362,785	954,131
Recapture payable to PennyMac Mortgage Investment Trust	(11,548)	(5,592)	(25,796)	72,324
Net gains on loans held for sale at fair value	$ 582,648	$ 682,173	$ 1,336,989	$ 1,026,455

Net Interest (Expense) Income_2

Net Interest (Expense) Income (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Interest income:
Cash and short-term investments	$ 747	$ 1,893	$ 1,734	$ 3,604
Loans held for sale at fair value	76,453	32,586	151,277	79,012
Placement fees relating to custodial funds	3,597	12,047	9,480	35,256
Interest income, excluding related parties	80,797	46,526	162,491	117,872
Interest income	80,797	47,318	162,878	119,882
Interest expense:
Assets sold under agreements to repurchase	44,623	17,487	96,802	43,171
Mortgage loan participation purchase and sale agreements	1,039	1,061	2,134	2,871
Obligations under capital lease	48	104	107	271
Notes payable	10,104	11,109	19,992	25,955
Unsecured senior notes	16,169		28,839
Corporate revolving line of credit		472		975
Interest shortfall on repayments of mortgage loans serviced for Agency securitizations	29,144	18,954	58,580	33,825
Interest on mortgage loan impound deposits	1,304	1,648	2,410	3,305
Interest expense, non-affiliates	102,431	50,835	208,864	110,373
Interest expense	102,431	53,207	210,144	114,719
Net interest (expense) income	(21,634)	(5,889)	(47,266)	5,163
PMT
Interest income:
From PennyMac Mortgage Investment Trust		792	387	2,010
Interest expense:
To PennyMac Mortgage Investment Trust Excess servicing spread financing at fair value		2,372	1,280	4,346
Assets sold under agreements to repurchase
Interest expense:
Assets sold under agreements to repurchase	$ 44,623	$ 17,487	$ 96,802	$ 43,171

Stock-based Compensation - Othe

Stock-based Compensation - Other (Details) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021USD ($)itemshares	Jun. 30, 2020USD ($)shares	Jun. 30, 2021USD ($)itemshares	Jun. 30, 2020USD ($)shares
Stock-Based Compensation
Number of stock based compensation plans \| item	1		1
Grant date fair value \| $		$ 150	$ 33,419	$ 28,381
Stock-based compensation expense \| $	$ 8,894	$ 6,757	$ 19,771	$ 19,125
Stock Options
Stock-Based Compensation
Granted (in units)			249	273
Grant date fair value \| $			$ 5,116	$ 2,770
Exercised (in units)	97	144	185	324
Performance-based RSUs
Stock-Based Compensation
Granted (in units)			310	422
Grant date fair value \| $			$ 18,237	$ 14,788
Vested (in units)			640	603
Time-based RSUs
Stock-Based Compensation
Granted (in units)		5	171	310
Grant date fair value \| $		$ 150	$ 10,066	$ 10,823
Vested (in units)	2		307	348

Earnings Per Share of Common _3

Earnings Per Share of Common Stock (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Diluted earnings per share of common stock:
Net income attributable to common stockholders	$ 204,229	$ 352,677	$ 581,097	$ 658,920
Weighted-average common stock outstanding applicable to basic earnings per share (in shares)	65,890	77,790	67,493	78,240
Effect of dilutive shares:
Common shares issuable under stock-based compensation plans (in shares)	3,509	2,634	3,755	3,001
Weighted-average shares of common stock applicable to diluted earnings per share (in shares)	69,399	80,424	71,248	81,241
Basic earnings per share of common stock (in dollars per share)	$ 3.10	$ 4.53	$ 8.61	$ 8.42
Diluted earnings per share of common stock (in dollars per share)	$ 2.94	$ 4.39	$ 8.16	$ 8.11
Total anti-dilutive shares and units (in shares)	557	774	388	591
Performance-based RSUs
Effect of dilutive shares:
Total anti-dilutive shares and units (in shares)	308	422	215	292
Time-based RSUs
Effect of dilutive shares:
Total anti-dilutive shares and units (in shares)		79		110
Stock Options
Effect of dilutive shares:
Total anti-dilutive shares and units (in shares)	249	273	173	189
Weighted-average exercise price of anti-dilutive stock options (in dollars per share)	$ 58.85	$ 35.03	$ 58.85	$ 35.03

Supplemental Cash Flow Inform_3

Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Cash paid for interest			$ 208,015	$ 127,806
Cash paid for income taxes, net			257,074	3,871
Non-cash investing activity:
Mortgage servicing rights resulting from loan sales			953,895	507,849
Unsettled portion of MSR acquisitions				1,053
Operating right-of-use assets recognized	$ 4,570	$ 4,964	7,813	6,498
Mortgage servicing liabilities resulting from loan sales			64,383	6,576
Non-cash financing activity:
Issuance of Excess servicing spread payable to PennyMac Mortgage Investment Trust pursuant to a recapture agreement			557	862
Issuance of common stock in settlement of director fees	$ 50		$ 101	$ 96

Regulatory Capital and Liquid_3

Regulatory Capital and Liquidity Requirements (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Jun. 30, 2021	Dec. 31, 2015	Dec. 31, 2020
Fannie Mae / Freddie Mac - PLS
Regulatory Net Worth and Agency Capital Requirements
Net worth		$ 5,243,429		$ 4,454,680
Capital Requirement		658,510		633,331
Liquidity		317,877		506,096
Liquidity requirement		$ 88,189		$ 84,444
Tangible net worth / Total assets ratio actual		22.00%		14.00%
Tangible net worth / Total assets ratio requirement		6.00%		6.00%
Ginnie Mae - PLS
Regulatory Net Worth and Agency Capital Requirements
Net worth		$ 4,785,193		$ 3,794,112
Capital Requirement		977,600		1,058,641
Liquidity		317,877		506,096
Liquidity requirement		$ 217,186		$ 215,722
Adjusted net worth / Total assets ratio actual		20.00%		12.00%
Adjusted net worth / Total assets ratio requirement		6.00%		6.00%
Ginnie Mae - PennyMac \| 1-4 unit servicing portfolio
Regulatory Net Worth and Agency Capital Requirements
Net worth		$ 2,500
FHFA net worth requirement spread		0.35%
FHFA liquidity spread of UPB serviced		0.10%
Liquidity requirement		$ 1,000
HUD - PLS
Regulatory Net Worth and Agency Capital Requirements
Net worth		4,785,193		$ 3,794,112
Capital Requirement		$ 2,500		$ 2,500
Federal Housing Finance Agency
Regulatory Net Worth and Agency Capital Requirements
Net worth			$ 2,500
FHFA liquidity spread of UPB serviced	0.035%
FHFA additional liquidity spread of UPB in excess of set percent	2.00%
FHFA additional liquidity spread of UPB excluded	70.00%
Federal Housing Finance Agency \| 1-4 unit servicing portfolio
Regulatory Net Worth and Agency Capital Requirements
FHFA net worth requirement spread			0.25%

Segments (Details)

Segments (Details) $ in Thousands	3 Months Ended		6 Months Ended
Segments (Details) $ in Thousands	Jun. 30, 2021USD ($)	Jun. 30, 2020USD ($)	Jun. 30, 2021USD ($)segment	Jun. 30, 2020USD ($)	Dec. 31, 2020USD ($)
Segments and Related Information
Number of segments \| segment			3
Revenues:
Net gains on loans held for sale at fair value	$ 582,648	$ 682,173	$ 1,336,989	$ 1,026,455
Loan origination fees	97,291	58,948	201,328	116,519
Fulfillment fees from PennyMac Mortgage Investment Trust			114,855	94,755
Net loan servicing fees	14,871	22,337	54,591	280,145
Net interest income (expense):
Interest income	80,797	47,318	162,878	119,882
Interest expense, before non-segment activities	102,431	53,207	210,144	114,719
Net interest expense, before non-segment activities	(21,634)	(5,889)	(47,266)	5,163
Management fees	11,913	8,288	20,362	17,343
Other	3,143	2,962	6,079	3,079
Total net revenues, before non-segment activities	742,252	821,634	1,686,938	1,543,459
Expenses	462,737	341,272	901,415	648,367
Income before provision for income taxes	279,515	480,362	785,523	895,092
Assets:
Segment assets at year end	23,880,138	23,226,475	23,880,138	23,226,475	$ 31,597,795
PMT
Revenues:
Fulfillment fees from PennyMac Mortgage Investment Trust	54,020	52,815	114,855	94,755
Net interest income (expense):
Management fees	11,913	8,288	$ 20,362	17,343
Mortgage banking
Segments and Related Information
Number of segments \| segment			2
Operating segment
Assets:
Segment assets at year end	23,880,138	23,226,475	$ 23,880,138	23,226,475
Operating segment \| Investment management
Net interest income (expense):
Interest expense, before non-segment activities	3	5	6	14
Net interest expense, before non-segment activities	(3)	(5)	(6)	(14)
Management fees	11,913	8,288	20,362	17,343
Other	1,588	2,250	2,730	3,057
Total net revenues, before non-segment activities	13,498	10,533	23,086	20,386
Expenses	9,349	5,822	17,568	11,918
Income before provision for income taxes	4,149	4,711	5,518	8,468
Assets:
Segment assets at year end	23,305	18,210	23,305	18,210
Operating segment \| Mortgage banking
Revenues:
Net gains on loans held for sale at fair value	582,648	682,173	1,336,989	1,026,455
Loan origination fees	97,291	58,948	201,328	116,519
Fulfillment fees from PennyMac Mortgage Investment Trust			114,855	94,755
Net loan servicing fees	14,871	22,337	54,591	280,145
Net interest income (expense):
Interest income	80,797	47,318	162,878	119,882
Interest expense, before non-segment activities	102,428	53,202	210,138	114,705
Net interest expense, before non-segment activities	(21,631)	(5,884)	(47,260)	5,177
Other	1,555	712	3,349	22
Total net revenues, before non-segment activities	728,754	811,101	1,663,852	1,523,073
Expenses	453,388	335,450	883,847	636,449
Income before provision for income taxes	275,366	475,651	780,005	886,624
Assets:
Segment assets at year end	23,856,833	23,208,265	23,856,833	23,208,265
Operating segment \| Mortgage banking \| PMT
Revenues:
Fulfillment fees from PennyMac Mortgage Investment Trust	54,020	52,815
Operating segment \| Mortgage banking Production
Revenues:
Net gains on loans held for sale at fair value	419,293	619,728	935,256	936,363
Loan origination fees	97,291	58,948	201,328	116,519
Fulfillment fees from PennyMac Mortgage Investment Trust			114,855	94,755
Net interest income (expense):
Interest income	31,830	19,205	61,361	45,790
Interest expense, before non-segment activities	36,913	12,642	74,985	32,799
Net interest expense, before non-segment activities	(5,083)	6,563	(13,624)	12,991
Other	630	361	1,227	351
Total net revenues, before non-segment activities	566,151	738,415	1,239,042	1,160,979
Expenses	321,709	200,352	631,705	382,785
Income before provision for income taxes	244,442	538,063	607,337	778,194
Assets:
Segment assets at year end	7,670,877	5,419,219	7,670,877	5,419,219
Operating segment \| Mortgage banking Production \| PMT
Revenues:
Fulfillment fees from PennyMac Mortgage Investment Trust	54,020	52,815
Operating segment \| Mortgage banking Servicing
Revenues:
Net gains on loans held for sale at fair value	163,355	62,445	401,733	90,092
Net loan servicing fees	14,871	22,337	54,591	280,145
Net interest income (expense):
Interest income	48,967	28,113	101,517	74,092
Interest expense, before non-segment activities	65,515	40,560	135,153	81,906
Net interest expense, before non-segment activities	(16,548)	(12,447)	(33,636)	(7,814)
Other	925	351	2,122	(329)
Total net revenues, before non-segment activities	162,603	72,686	424,810	362,094
Expenses	131,679	135,098	252,142	253,664
Income before provision for income taxes	30,924	(62,412)	172,668	108,430
Assets:
Segment assets at year end	$ 16,185,956	$ 17,789,046	$ 16,185,956	$ 17,789,046

Subsequent Events (Details)

Subsequent Events (Details) $ / shares in Units, $ in Millions	Aug. 04, 2021USD ($)$ / shares	Aug. 01, 2021	Jul. 30, 2021USD ($)item	Feb. 28, 2021USD ($)	Jun. 30, 2017USD ($)
Securities Repurchase Agreements
Authorized stock repurchase amount				$ 1,000
Common Stock
Securities Repurchase Agreements
Authorized stock repurchase amount				$ 1,000	$ 500
Subsequent Event
Subsequent Event
Dividends declared (in dollars per share) \| $ / shares	$ 0.20
Adverse market refinance fee percent eliminated		0.50%
Securities Repurchase Agreements
Authorized stock repurchase amount	$ 2,000
Subsequent Event \| Syndicated Repurchase Agreement
Subsequent Event
Number of indirect wholly owned subsidiaries entered into agreements \| item			2
The number of existing variable funding note repurchase agreements \| item			2
Securities Repurchase Agreements
Previous maximum aggregate purchase price			$ 400
Maximum aggregate purchase price			500
Subsequent Event \| Syndicated Repurchase Agreement SAR
Securities Repurchase Agreements
Maximum aggregate purchase price			$ 600