PENNYMAC MORTGAGE INVESTMENT TRUST, 10-K filed on 2/20/2025
Annual Report
v3.25.0.1
Document and Entity Information - USD ($)
 12 Months Ended
Dec. 31, 2024
Feb. 17, 2025
Jun. 28, 2024
Document And Entity Information [Line Items]      
Document Type 10-K    
Document Annual Report true    
Amendment Flag false    
Document Period End Date Dec. 31, 2024    
Document Fiscal Year Focus 2024    
Document Fiscal Period Focus FY    
Entity Registrant Name PennyMac Mortgage Investment Trust    
Entity Central Index Key 0001464423    
Current Fiscal Year End Date --12-31    
Entity Filer Category Large Accelerated Filer    
Entity Current Reporting Status Yes    
Entity Small Business false    
Entity Emerging Growth Company false    
Entity Shell Company false    
Entity Common Stock, Shares Outstanding   86,860,960  
Entity File Number 001-34416    
Entity Incorporation, State or Country Code MD    
Entity Tax Identification Number 27-0186273    
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    
Entity Interactive Data Current Yes    
Document Transition Report false    
Entity Well-known Seasoned Issuer Yes    
Entity Voluntary Filers No    
ICFR Auditor Attestation Flag true    
Entity Public Float     $ 1,184,012,486
Documents Incorporated by Reference

Documents Incorporated By Reference

 

Document

Parts Into Which Incorporated

Definitive Proxy Statement for 2025 Annual Meeting of Shareholders

Part III
   
Document Financial Statement Error Correction [Flag] false    
Auditor Name Deloitte & Touche LLP    
Auditor Location Los Angeles, California    
Auditor Firm ID 34    
Auditor Opinion [Text Block]

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheets of PennyMac Mortgage Investment Trust and subsidiaries (the “Company”) as of December 31, 2024 and 2023, the related consolidated statements of operations, changes in shareholders’ equity, and cash flows for each of the three years in the period ended December 31, 2024, and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2024 and 2023, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2024, in conformity with accounting principles generally accepted in the United States of America.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of December 31, 2024, based on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated February 20, 2025, expressed an unqualified opinion on the Company’s internal control over financial reporting.

    
Common Stock [Member]      
Document And Entity Information [Line Items]      
Title of 12(b) Security Common Shares of Beneficial Interest, $0.01 Par Value    
Trading Symbol PMT    
Security Exchange Name NYSE    
8.125% Series A Preferred Stock [Member]      
Document And Entity Information [Line Items]      
Title of 12(b) Security 8.125% Series A Cumulative Redeemable PreferredShares of Beneficial Interest, $0.01 Par Value    
Trading Symbol PMT/PRA    
Security Exchange Name NYSE    
8.00% Series B Preferred Stock [Member]      
Document And Entity Information [Line Items]      
Title of 12(b) Security 8.00% Series B Cumulative Redeemable PreferredShares of Beneficial Interest, $0.01 Par Value    
Trading Symbol PMT/PRB    
Security Exchange Name NYSE    
6.75% Series C Preferred Stock [Member]      
Document And Entity Information [Line Items]      
Title of 12(b) Security 6.75% Series C Cumulative Redeemable PreferredShares of Beneficial Interest, $0.01 Par Value    
Trading Symbol PMT/PRC    
Security Exchange Name NYSE    
8.50% Senior Notes Due 2028 [Member]      
Document And Entity Information [Line Items]      
Title of 12(b) Security 8.50% Senior Notes Due 2028    
Trading Symbol PMTU    
Security Exchange Name NYSE    
9.00% Senior Notes Due 2030 [Member]      
Document And Entity Information [Line Items]      
Title of 12(b) Security 9.00% Senior Notes Due 2030    
Trading Symbol PMTV    
Security Exchange Name NYSE    
v3.25.0.1
Consolidated Balance Sheets - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
ASSETS      
Cash $ 337,694 $ 281,085  
Short-term investments at fair value 103,198 128,338  
Mortgage-backed securities at fair value pledged to creditors 4,063,706 4,836,292  
Loans acquired for sale at fair value ($2,087,615 and $659,751 pledged to creditors, respectively) 2,116,318 669,018  
Loans at fair value ($2,191,869 and $1,431,896 pledged to creditors, respectively) 2,193,575 1,433,820  
Derivative assets 96,251 89,591  
Derivative assets ($29,377 and $16,160 pledged to creditors, respectively) 56,840 177,984  
Deposits securing credit risk transfer arrangements pledged to creditors 1,110,708 1,209,498  
Mortgage servicing rights at fair value ($3,807,065 and $3,871,249 pledged to creditors, respectively) 3,867,394 3,919,107 $ 4,012,737
Servicing advances ($89,396 and $181,201 pledged to creditors, respectively) 105,037 206,151  
Due from PennyMac Financial Services, Inc. 16,706 7,199  
Other ($527 and $1,905 pledged to creditors, respectively) 438,221 252,538  
Total assets 14,408,706 13,113,887 13,921,564
LIABILITIES      
Assets sold under agreements to repurchase 6,500,938 5,624,558  
Mortgage loan participation purchase and sale agreements 11,593 0  
Notes payable secured by credit risk transfer and mortgage servicing assets 2,929,790 2,910,605  
Unsecured senior notes 605,860 600,458  
Asset-backed financing of variable interest entities at fair value 2,040,375 1,336,731  
Interest-only security payable at fair value 34,222 32,667  
Derivative and credit risk transfer strip liabilities at fair value 7,351 51,381  
Accounts payable and accrued liabilities 139,124 354,989  
Income taxes payable 163,861 190,003  
Liability for losses under representations and warranties 6,886 26,143 39,471
Total liabilities 12,470,206 11,156,797  
Commitments and contingencies ─ Note 17  
SHAREHOLDERS’ EQUITY      
Preferred shares of beneficial interest, $0.01 par value per share, authorized 100,000,000 shares, issued and outstanding 22,400,000, liquidation preference $560,000,000 541,482 541,482  
Common shares of beneficial interest-authorized, 500,000,000 common shares of $0.01 par value; issued and outstanding, 86,860,960 and 86,624,044 common shares, respectively 869 866  
Additional paid-in capital 1,925,067 1,923,437  
Accumulated deficit (528,918) (508,695)  
Total shareholders’ equity 1,938,500 1,957,090 $ 1,962,815
Total liabilities and shareholders’ equity 14,408,706 13,113,887  
Variable Interest Entities [Member]      
ASSETS      
Loans at fair value ($2,191,869 and $1,431,896 pledged to creditors, respectively) 2,191,709 1,431,689  
Derivative assets 29,377 16,160  
Deposits securing credit risk transfer arrangements pledged to creditors 1,110,708 1,209,498  
Other interest receivable 6,382 4,106  
Total assets 3,338,176 2,661,453  
LIABILITIES      
Asset-backed financing of variable interest entities at fair value 2,040,375 1,336,731  
Derivative and credit risk transfer strip liabilities at fair value 4,060 46,692  
Interest-only security payable at fair value 34,222 32,667  
Accounts payable and accrued liabilities interest payable 6,382 4,106  
Total liabilities 2,085,039 1,420,196  
PennyMac Financial Services, Inc. [Member]      
ASSETS      
Due from PennyMac Financial Services, Inc. 16,015 56  
LIABILITIES      
Due to PennyMac Financial Services, Inc. $ 30,206 $ 29,262  
v3.25.0.1
Consolidated Balance Sheets (Parenthetical) - USD ($)
Dec. 31, 2024
Dec. 31, 2023
Loans acquired for sale at fair value, pledged to creditors $ 2,087,615,000 $ 659,751,000
Loans at fair value, pledged to creditors 2,191,869,000 1,431,896,000
Derivative assets, pledged to creditors 29,377,000 16,160,000
Mortgage servicing rights pledged to creditors 3,807,065,000 3,871,249,000
Servicing Advances pledged to creditors 89,396,000 181,201,000
Other, pledged to creditors $ 527,000 $ 1,905,000
Preferred stock, par value $ 0.01 $ 0.01
Preferred stock, shares authorized 100,000,000 100,000,000
Preferred stock, shares issued 22,400,000 22,400,000
Preferred stock, shares outstanding 22,400,000 22,400,000
Preferred stock, liquidation preference, value $ 560,000,000 $ 560,000,000
Common shares, authorized 500,000,000 500,000,000
Common shares, par value $ 0.01 $ 0.01
Common shares, issued 86,860,960 86,624,044
Common shares, outstanding 86,860,960 86,624,044
v3.25.0.1
Consolidated Statements of Operations - USD ($)
shares in Thousands, $ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Net investment income      
Contractually specified $ 644,642 $ 659,438 $ 625,210
Other 14,722 17,008 26,041
Net mortgage loan servicing fees 659,364 676,446 651,251
Change in fair value of mortgage servicing rights (170,409) (296,847) 449,435
Mortgage servicing rights hedging results (226,608) (92,775) (204,879)
Net servicing fees from non-affiliates 264,540 288,608 909,551
Net gains on loans acquired for sale: 73,124 39,857 25,692
Loan origination fees 15,085 18,231 52,085
Net gains (losses) on investments and financings 61,050 178,099 (658,787)
Interest income 635,263 639,907 383,794
Interest expense 714,659 735,968 410,420
Net interest expense (79,396) (96,061) (26,626)
Results of real estate acquired in settlement of loans (437) (186) 496
Other 228 472 1,360
Net investment income 334,194 429,020 303,771
Expenses      
Professional services 12,779 7,621 9,569
Loan collection and liquidation 6,834 4,562 5,396
Compensation 5,608 7,106 5,941
Safekeeping 4,403 3,766 8,201
Loan origination 3,328 4,602 12,036
Other 20,428 19,033 18,570
Total expenses 191,546 184,625 240,684
Income before (benefit from) provision for income taxes 142,648 244,395 63,087
(Benefit from) provision for income taxes (18,336) 44,741 136,374
Net income (loss) 160,984 199,654 (73,287)
Dividends on preferred shares of beneficial interest 41,819 41,819 41,819
Net income (loss) attributable to common shareholders $ 119,165 $ 157,835 $ (115,106)
Earnings (loss) per common share      
Basic $ 1.37 $ 1.8 $ (1.26)
Diluted $ 1.37 $ 1.63 $ (1.26)
Weighted average common shares outstanding      
Basic 86,815 87,372 91,434
Diluted 86,815 111,700 91,434
Nonaffiliates [Member]      
Net investment income      
Net servicing fees from non-affiliates $ 262,347 $ 286,824 $ 895,807
Net gains on loans acquired for sale: 65,055 32,695 20,724
PennyMac Financial Services, Inc. [Member]      
Net investment income      
From PennyMac Financial Services, Inc. 2,193 1,784 13,744
Net gains on loans acquired for sale: 8,069 7,162 4,968
Expenses      
Loan servicing fees 83,252 81,347 81,915
Management fees 28,623 28,762 31,065
Loan fulfillment fees $ 26,291 $ 27,826 $ 67,991
v3.25.0.1
Consolidated Statements of Changes in Shareholders' Equity - USD ($)
shares in Thousands, $ in Thousands
Total
Cumulative Effect, Period of Adoption, Adjustment [Member]
Cumulative Effect, Period of Adoption, Adjusted Balance [Member]
Preferred Stock
Preferred Stock
Cumulative Effect, Period of Adoption, Adjustment [Member]
Preferred Stock
Cumulative Effect, Period of Adoption, Adjusted Balance [Member]
Common Shares [Member]
Common Shares [Member]
Cumulative Effect, Period of Adoption, Adjustment [Member]
Common Shares [Member]
Cumulative Effect, Period of Adoption, Adjusted Balance [Member]
Additional Paid-in Capital [Member]
Additional Paid-in Capital [Member]
Cumulative Effect, Period of Adoption, Adjustment [Member]
Additional Paid-in Capital [Member]
Cumulative Effect, Period of Adoption, Adjusted Balance [Member]
Accumulated Deficit [Member]
Accumulated Deficit [Member]
Cumulative Effect, Period of Adoption, Adjustment [Member]
Accumulated Deficit [Member]
Cumulative Effect, Period of Adoption, Adjusted Balance [Member]
Balance, Amount at Dec. 31, 2021 $ 2,367,518 $ (40,953) $ 2,326,565 $ 541,482 $ 0 $ 541,482 $ 949 $ 0 $ 949 $ 2,081,757 $ (50,347) $ 2,031,410 $ (256,670) $ 9,394 $ (247,276)
Balance, Shares at Dec. 31, 2021       22,400 0 22,400 94,897 0 94,897            
Net income (loss) (73,287)     $ 0     $ 0     0     (73,287)    
Share-based compensation, Amount 3,788     $ 0     $ 1     3,787     0    
Share-based compensation, Shares       0     86                
Dividends:                              
Preferred shares dividends (41,819)     $ 0     $ 0     0     (41,819)    
Common share dividends (164,440)     0     0     0     (164,440)    
Repurchase of common shares, Amount $ (87,992)     $ 0     $ (61)     (87,931)     0    
Repurchase of common shares, Shares (6,094)     0     (6,094)                
Balance, Amount at Dec. 31, 2022 $ 1,962,815     $ 541,482     $ 889     1,947,266     (526,822)    
Balance, Shares at Dec. 31, 2022       22,400     88,889                
Net income (loss) 199,654     $ 0     $ 0     0     199,654    
Share-based compensation, Amount 4,638     $ 0     $ 1     4,637     0    
Share-based compensation, Shares       0     146                
Dividends:                              
Preferred shares dividends (41,818)     $ 0     $ 0     0     (41,818)    
Common share dividends (139,709)     0     0     0     (139,709)    
Repurchase of common shares, Amount $ (28,490)     $ 0     $ (24)     (28,466)     0    
Repurchase of common shares, Shares (2,411)     0     (2,411)                
Balance, Amount at Dec. 31, 2023 $ 1,957,090     $ 541,482     $ 866     1,923,437     (508,695)    
Balance, Shares at Dec. 31, 2023       22,400     86,624                
Net income (loss) 160,984     $ 0     $ 0     0     160,984    
Share-based compensation, Amount 1,633     $ 0     $ 3     1,630     0    
Share-based compensation, Shares       0     237                
Dividends:                              
Preferred shares dividends (41,819)     $ 0     $ 0     0     (41,819)    
Common share dividends (139,388)     0     0     0     (139,388)    
Repurchase of common shares, Amount $ 0                            
Repurchase of common shares, Shares 0                            
Balance, Amount at Dec. 31, 2024 $ 1,938,500     $ 541,482     $ 869     $ 1,925,067     $ (528,918)    
Balance, Shares at Dec. 31, 2024       22,400     86,861                
v3.25.0.1
Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) - $ / shares
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Dividends declared per common share $ 1.6 $ 1.6 $ 1.81
v3.25.0.1
Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Cash flows from operating activities      
Net income (loss) $ 160,984 $ 199,654 $ (73,287)
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities:      
Change in fair value of mortgage servicing rights 170,409 296,847 (449,435)
Mortgage servicing rights hedging results 226,608 92,775 204,879
Net gains on loans acquired for sale (73,124) (39,857) (25,692)
Net (gains) losses on investments and financings (61,050) (178,099) 658,787
Accrual of unearned discounts and amortization of purchase premiums on mortgage-backed securities, loans at fair value, and asset-backed financings (23,312) (355) (9,815)
Amortization of debt issuance costs 23,095 15,141 16,563
Results of real estate acquired in settlement of loans 437 186 (496)
Share-based compensation expense 3,479 5,205 4,310
Purchase of loans acquired for sale from nonaffiliates (96,091,114) (87,503,604) (87,844,404)
Sale to nonaffiliates and repayment of loans acquired for sale 12,414,391 15,936,124 39,077,156
Repurchase of loans subject to representations and warranties (35,428) (58,755) (92,294)
Decrease (increase) in servicing advances 100,884 (8,924) 6,979
Repurchase of real estate previously sold as loans acquired for sale 0 (456) 0
Increase in other assets (596,687) (86,086) (189,551)
(Decrease) increase in accounts payable and accrued liabilities (216,119) 194,059 73,162
Increase (decrease) in due to PennyMac Financial Services, Inc. 944 (7,110) (3,719)
(Decrease) increase in income taxes payable (26,142) 38,225 142,180
Net cash (used in) provided by operating activities (2,702,883) 1,340,173 1,784,471
Cash flows from investing activities      
Net decrease (increase) in short-term investments 25,140 123,933 (84,272)
Purchase of mortgage-backed securities (638,155) (3,172,193) (3,718,093)
Sale and repayment of mortgage-backed securities 1,488,971 2,979,019 1,358,199
Repurchase of loans at fair value 0 (119) 0
Repayment of loans at fair value 101,651 94,550 159,647
Net settlement of derivative financial instruments (11,086) 9,700 25,489
Distribution from credit risk transfer arrangements 157,854 180,573 478,388
Purchase of mortgage servicing rights (29,263) (14,632) 0
Transfer of mortgage servicing rights relating to delinquent loans to Agency (561) 472 (104)
Sale of real estate acquired in settlement of loans 1,870 4,668 7,999
Decrease (increase) in margin deposits 263,975 (227,697) (94,727)
Net cash provided by (used in) investing activities 1,360,396 (21,726) (1,867,474)
Cash flows from financing activities      
Sale of assets under agreements to repurchase 121,850,449 120,565,014 121,017,757
Repurchase of assets sold under agreements to repurchase (120,968,841) (121,555,845) (121,073,659)
Issuance of mortgage loan participation purchase and sale agreements 2,246,133 2,146,821 3,742,870
Repayment of mortgage loan participation purchase and sale agreements (2,234,482) (2,146,821) (3,792,858)
Issuance of notes payable secured by credit risk transfer and mortgage servicing assets 1,474,986 780,000 944,999
Repayment of notes payable secured by credit risk transfer and mortgage servicing assets (1,453,833) (675,032) (611,943)
Issuance of unsecured senior notes 216,500 53,500 0
Repayment of unsecured senior notes (210,000)
Issuance of asset-backed financing of variable interest entities 791,582 0 382,423
Repayment of asset-backed financings of variable interest entities (98,986) (91,406) (155,654)
Payment of debt issuance costs (31,447) (13,967) (14,170)
Payment of dividends to preferred shareholders (41,819) (41,818) (41,819)
Payment of dividends to common shareholders (139,300) (140,617) (173,546)
Payment of vested share-based compensation tax withholdings (1,846) (567) (522)
Repurchase of common shares of beneficial interest 0 (28,490) (87,992)
Net cash (used in) provided by financing activities 1,399,096 (1,149,228) 135,886
Net increase in cash 56,609 169,219 52,883
Cash at beginning of year 281,085 111,866 58,983
Cash at end of year 337,694 281,085 111,866
Payments (refunds), net:      
Income taxes 7,806 6,517 (5,806)
Interest 711,694 718,362 368,671
Non cash investing activities:      
Retention of subordinate mortgage-backed securities in loan securitizations 64,253 0 23,485
Recognition of loans at fair value resulting from initial consolidation of variable interest entities 847,698 0 405,908
Transfer of loans and servicing advances to real estate acquired in settlement of loans 0 1,205 0
Receipt of mortgage servicing rights as proceeds from sales of loans 219,001 292,527 670,343
Unsettled purchase of mortgage servicing rights 166 1,626 0
Exchange of mortgage servicing spread for interest-only stripped mortgage-backed securities and interest receivable 130,295 105,096 0
Non-cash financing activities:      
Recognition of asset-backed financings resulting from initial consolidation of VIEs 783,445 0 382,423
Dividends declared, not paid 34,838 34,750 35,658
PennyMac Loan Services, LLC [Member]      
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities:      
Purchase of loans acquired for sale from PennyMac Financial Services, Inc. (662,952) 0 (298,862)
Sale of loans acquired for sale to PennyMac Financial Services, Inc. 81,997,773 72,441,699 50,575,617
(Increase) decrease in due from PennyMac Financial Services, Inc. $ (15,959) $ 3,504 $ 12,393
v3.25.0.1
Pay vs Performance Disclosure - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Pay vs Performance Disclosure      
Net Income (Loss) $ 160,984 $ 199,654 $ (73,287)
v3.25.0.1
Insider Trading Arrangements
 3 Months Ended
Dec. 31, 2024
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
Rule 10b5-1 Arrangement Modified false
Non-Rule 10b5-1 Arrangement Modified false
v3.25.0.1
Insider Trading Policies and Procedures
 12 Months Ended
Dec. 31, 2024
Insider Trading Policies and Procedures [Line Items]  
Insider Trading Policies and Procedures Adopted true
v3.25.0.1
Cybersecurity Risk Management, Strategy and Governance
 12 Months Ended
Dec. 31, 2024
Cybersecurity Risk Management, Strategy, and Governance [Line Items]  
Cybersecurity Risk Management Processes for Assessing, Identifying, and Managing Threats [Text Block]

Item 1C. Cybersecurity

 

Cybersecurity Program

Our and our Manager’s cybersecurity and related controls, policies and procedures (“Cybersecurity Program”) are critical business functions protecting our and our Manager’s enterprise information systems, data and business operations from external and internal threats. The Cybersecurity Program prioritizes detection, analysis, response and prevention to known, anticipated or unexpected cybersecurity threats, with regular internal and third-party assessments and enterprise risk management governance reviews. The Cybersecurity Program is informed by the National Institute of Standards and Technology’s (“NIST”) cybersecurity framework standard, which our Manager uses to assist with our overall enterprise risk management framework, along with our compliance requirements under federal and state cybersecurity and related regulations.

We are not aware of any risks from cybersecurity threats, including as a result of any previous cybersecurity incidents, that have materially affected, or are reasonably likely to materially affect, us, including our business strategy, results of operations or financial condition, as of the fiscal year ended December 31, 2024. Our Risk Factors include further detail about our material cybersecurity risks.

Our Chief Information Officer (“CIO”) and Chief Information Security Officer (“CISO”) each have over 25 years of information system experience and are primarily responsible for implementing the Cybersecurity Program and managing our information security personnel and consultants. The CIO has served in a variety of information technology leadership positions in the finance industry and holds a Bachelor of Science in Electrical Engineering. The CISO served in a variety of cybersecurity operations, cybersecurity architecture, and critical infrastructure cybersecurity enhancement programs in the finance industry, the utility industry and in government and holds a Bachelor of Science in Management Information Systems and Decision Sciences.

The Cybersecurity Program is integrated into our and our Manager’s enterprise risk management framework that assesses, identifies and protects our and our Manager’s enterprise information systems, data and business operations from various security threats and contains the following elements:

•
Information Security Risk Assessment – Conducting internal and external risk and control assessment, quality control and assurance testing.
•
Identity and Access Management – Managing enterprise identity and access control systems.
•
Security Architecture – Managing security architecture, including secure code deployment standards, architecture security reviews, and cybersecurity advisory support.
•
Security Engineering – Designing, implementing and operating security technologies, including but not limited to malware protections, security event and incident management, data loss prevention, and phishing defenses.
•
Security Operations – Ensuring continuous operational coverage of security events and alerts, maintaining and executing processes for triage, containment, investigation and escalation/communication and threat intelligence.
•
Attack Surface Management – Managing vulnerability and patch management, network penetration testing, application security testing and exercises, including cybersecurity training, cyber-attack simulations and tabletop exercises with senior management to detect control gaps.
•
Third-Party Assessments – Coordinating, reviewing and analyzing third-party providers’ assessments of the Cybersecurity Program. Internal Audit may also perform a periodic cybersecurity program audit that may be supported by external consulting firms.
•
Third-Party Service Provider Reviews – Identifying and reviewing material risks from cybersecurity threats associated with certain third-party service providers.

Monitoring and Incident Reporting

We and our Manager continuously monitor our enterprise information systems and user activity to detect anomalous activity and identify potential security related incidents. Our cybersecurity monitoring and incident reporting program is informed by NIST guidelines and is internally and externally monitored. When a potential cybersecurity incident is detected, we and our Manager gather the necessary information to classify the incident by type and severity and activate containment plans and response teams depending on the nature of the incident. Cybersecurity incidents that may impact enterprise business operations, compromise critical systems or result in unauthorized access to critical data will be escalated to the CISO and an internal incident response team comprised of senior IT, business operations and compliance personnel to coordinate any internal and external responses. The CISO and the internal incident team will also elevate any material cybersecurity incidents or unauthorized occurrences that jeopardize the confidentiality, integrity or availability of enterprise information to senior management and our board of trustees.

Enterprise Risk Management Framework and Governance

The Cybersecurity Program is integrated with our and our Manager’s enterprise risk management framework and is primarily managed by the CIO, the CISO, and other information security personnel and consultants, and is overseen by risk management, internal audit, senior management and our board of trustees to ensure the confidentiality, integrity and the availability of the Company’s enterprise information systems, data and business operations. The Cybersecurity Program utilizes specialized third-party cybersecurity service providers to periodically perform penetration testing across certain internet-facing and business critical applications as well as external and internal network penetration tests.

Our and our Manager’s Enterprise Risk Management unit separately provides independent oversight and monitoring of the Cybersecurity Program through periodic quality control testing and regulatory compliance verification of the Cybersecurity Program’s controls. Our Internal Audit unit is an independent corporate function reporting to the board of trustees’ Audit Committee that also reviews the effectiveness of the Cybersecurity Program and whether it is effectively integrated into our and our Manager’s overall enterprise risk management framework. Additionally, our and our Manager’s Enterprise Risk Management and Internal Audit units may from time to time separately engage consulting services to perform independent cybersecurity controls audits and provide expert guidance.

Board of Trustees Oversight

The board of trustees oversees our cybersecurity risks by periodically evaluating cybersecurity reports from senior management, including the CIO and CISO, as well as reports from the board committees and third-party consultants. The Risk Committee oversees our enterprise risk management framework including risks associated with data security, cybersecurity, IT infrastructure, and data privacy. The Audit Committee oversees the internal and external auditors’ review of our cybersecurity risks.

Management Oversight

Our CIO, CISO and other senior executives who oversee the Company’s enterprise IT infrastructure periodically meet in management committees to ensure that our enterprise information systems are protected from internal and external cybersecurity threats by monitoring cybersecurity controls, risk assessments and information system reports. The CIO, CISO and our management committees periodically provide cybersecurity reports about our Cybersecurity Program to senior management, the board of trustees and our board committees.

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Cybersecurity Risk Management Processes Integrated [Flag] true
Cybersecurity Risk Management Processes Integrated [Text Block]

The Cybersecurity Program is integrated into our and our Manager’s enterprise risk management framework that assesses, identifies and protects our and our Manager’s enterprise information systems, data and business operations from various security threats and contains the following elements:

•
Information Security Risk Assessment – Conducting internal and external risk and control assessment, quality control and assurance testing.
•
Identity and Access Management – Managing enterprise identity and access control systems.
•
Security Architecture – Managing security architecture, including secure code deployment standards, architecture security reviews, and cybersecurity advisory support.
•
Security Engineering – Designing, implementing and operating security technologies, including but not limited to malware protections, security event and incident management, data loss prevention, and phishing defenses.
•
Security Operations – Ensuring continuous operational coverage of security events and alerts, maintaining and executing processes for triage, containment, investigation and escalation/communication and threat intelligence.
•
Attack Surface Management – Managing vulnerability and patch management, network penetration testing, application security testing and exercises, including cybersecurity training, cyber-attack simulations and tabletop exercises with senior management to detect control gaps.
•
Third-Party Assessments – Coordinating, reviewing and analyzing third-party providers’ assessments of the Cybersecurity Program. Internal Audit may also perform a periodic cybersecurity program audit that may be supported by external consulting firms.
•
Third-Party Service Provider Reviews – Identifying and reviewing material risks from cybersecurity threats associated with certain third-party service providers.
Cybersecurity Risk Management Third Party Engaged [Flag] true
Cybersecurity Risk Third Party Oversight and Identification Processes [Flag] true
Cybersecurity Risk Materially Affected or Reasonably Likely to Materially Affect Registrant [Flag] false
Cybersecurity Risk Board of Directors Oversight [Text Block]

Enterprise Risk Management Framework and Governance

The Cybersecurity Program is integrated with our and our Manager’s enterprise risk management framework and is primarily managed by the CIO, the CISO, and other information security personnel and consultants, and is overseen by risk management, internal audit, senior management and our board of trustees to ensure the confidentiality, integrity and the availability of the Company’s enterprise information systems, data and business operations. The Cybersecurity Program utilizes specialized third-party cybersecurity service providers to periodically perform penetration testing across certain internet-facing and business critical applications as well as external and internal network penetration tests.

Our and our Manager’s Enterprise Risk Management unit separately provides independent oversight and monitoring of the Cybersecurity Program through periodic quality control testing and regulatory compliance verification of the Cybersecurity Program’s controls. Our Internal Audit unit is an independent corporate function reporting to the board of trustees’ Audit Committee that also reviews the effectiveness of the Cybersecurity Program and whether it is effectively integrated into our and our Manager’s overall enterprise risk management framework. Additionally, our and our Manager’s Enterprise Risk Management and Internal Audit units may from time to time separately engage consulting services to perform independent cybersecurity controls audits and provide expert guidance.

Board of Trustees Oversight

The board of trustees oversees our cybersecurity risks by periodically evaluating cybersecurity reports from senior management, including the CIO and CISO, as well as reports from the board committees and third-party consultants. The Risk Committee oversees our enterprise risk management framework including risks associated with data security, cybersecurity, IT infrastructure, and data privacy. The Audit Committee oversees the internal and external auditors’ review of our cybersecurity risks.

Cybersecurity Risk Board Committee or Subcommittee Responsible for Oversight [Text Block]

The board of trustees oversees our cybersecurity risks by periodically evaluating cybersecurity reports from senior management, including the CIO and CISO, as well as reports from the board committees and third-party consultants. The Risk Committee oversees our enterprise risk management framework including risks associated with data security, cybersecurity, IT infrastructure, and data privacy. The Audit Committee oversees the internal and external auditors’ review of our cybersecurity risks.

Cybersecurity Risk Process for Informing Board Committee or Subcommittee Responsible for Oversight [Text Block] The board of trustees oversees our cybersecurity risks by periodically evaluating cybersecurity reports from senior management, including the CIO and CISO, as well as reports from the board committees and third-party consultants.
Cybersecurity Risk Role of Management [Text Block]

Management Oversight

Our CIO, CISO and other senior executives who oversee the Company’s enterprise IT infrastructure periodically meet in management committees to ensure that our enterprise information systems are protected from internal and external cybersecurity threats by monitoring cybersecurity controls, risk assessments and information system reports. The CIO, CISO and our management committees periodically provide cybersecurity reports about our Cybersecurity Program to senior management, the board of trustees and our board committees.
Cybersecurity Risk Management Positions or Committees Responsible [Flag] true
Cybersecurity Risk Management Positions or Committees Responsible [Text Block] Our CIO, CISO and other senior executives who oversee the Company’s enterprise IT infrastructure periodically meet in management committees to ensure that our enterprise information systems are protected from internal and external cybersecurity threats by monitoring cybersecurity controls, risk assessments and information system reports.
Cybersecurity Risk Management Expertise of Management Responsible [Text Block]

Our Chief Information Officer (“CIO”) and Chief Information Security Officer (“CISO”) each have over 25 years of information system experience and are primarily responsible for implementing the Cybersecurity Program and managing our information security personnel and consultants. The CIO has served in a variety of information technology leadership positions in the finance industry and holds a Bachelor of Science in Electrical Engineering. The CISO served in a variety of cybersecurity operations, cybersecurity architecture, and critical infrastructure cybersecurity enhancement programs in the finance industry, the utility industry and in government and holds a Bachelor of Science in Management Information Systems and Decision Sciences.
Cybersecurity Risk Process for Informing Management or Committees Responsible [Text Block] Cybersecurity incidents that may impact enterprise business operations, compromise critical systems or result in unauthorized access to critical data will be escalated to the CISO and an internal incident response team comprised of senior IT, business operations and compliance personnel to coordinate any internal and external responses. The CISO and the internal incident team will also elevate any material cybersecurity incidents or unauthorized occurrences that jeopardize the confidentiality, integrity or availability of enterprise information to senior management and our board of trustees.
Cybersecurity Risk Management Positions or Committees Responsible Report to Board [Flag] true
v3.25.0.1
Organization
 12 Months Ended
Dec. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Organization

Note 1—Organization

PennyMac Mortgage Investment Trust (“PMT” or the “Company”) is a specialty finance company, which, through its subsidiaries (all of which are wholly-owned), invests in residential mortgage-related assets. The Company operates in three operating and reportable segments: credit sensitive strategies, interest rate sensitive strategies and correspondent production. All other activities are included in corporate:

•
The credit sensitive strategies segment represents the Company’s investments in credit risk transfer (“CRT”) arrangements referencing loans from its own correspondent production (“CRT arrangements”) and subordinate mortgage-backed securities (“MBS”).
•
The interest rate sensitive strategies segment represents the Company’s investments in mortgage servicing rights (“MSRs”), Agency and senior non-Agency MBS and the related interest rate hedging activities.
•
The correspondent production segment represents the Company’s operations aimed at serving as an intermediary between lenders and the capital markets by purchasing, pooling and reselling newly originated prime credit quality loans either directly or in the form of MBS, using the services of PNMAC Capital Management, LLC (“PCM”) and PennyMac Loan Services, LLC (“PLS”), both wholly-owned subsidiaries of PennyMac Financial Services, Inc. (“PFSI”), a publicly-traded mortgage banking and investment management company separately listed on the New York Stock Exchange.
•
The Company primarily sells the loans it acquires through its correspondent production activities to government-sponsored entities ("GSEs") such as the Federal National Mortgage Association (“Fannie Mae”) and the Federal Home Loan Mortgage Corporation (“Freddie Mac”) or to PLS primarily for sale into securitizations guaranteed by the Government National Mortgage Association ("Ginnie Mae"), or the GSEs. Fannie Mae, Freddie Mac and Ginnie Mae are each referred to as an “Agency” and, collectively, as the “Agencies.” The company also securitizes certain of its loans directly and may retain interests, such as subordinate MBS, from such securitizations.
•
Corporate activities include management fees, corporate expense amounts and certain interest income and expense. None of the corporate activities qualify as reportable segments.

The Company conducts substantially all of its operations and makes substantially all of its investments through its subsidiary, PennyMac Operating Partnership, L.P. (the “Operating Partnership”), and the Operating Partnership’s subsidiaries. A wholly-owned subsidiary of the Company is the sole general partner, and the Company is the sole limited partner, of the Operating Partnership.

The Company believes that it qualifies, and has elected to be taxed, as a real estate investment trust (“REIT”) under the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”). To maintain its tax status as a REIT, the Company is required to distribute at least 90% of its taxable income in the form of qualifying distributions to shareholders.
v3.25.0.1
Concentration of Risks
 12 Months Ended
Dec. 31, 2024
Risks and Uncertainties [Abstract]  
Concentration of Risks

Note 2—Concentration of Risks

As discussed in Note 1 – Organization above, PMT’s operating and investing activities are centered in residential mortgage-related assets, including CRT arrangements, subordinate MBS, Agency and senior Non-Agency MBS and MSRs. CRT arrangements and subordinate MBS are more sensitive to borrower credit performance than other mortgage-related investments such as traditional loans. Agency MBS, interest-only (“IO”) and principal-only stripped MBS and senior non-Agency MBS are sensitive to changes in market interest rates. MSRs are sensitive to changes in market interest rates, prepayment rate activity and expectations, and costs to service the underlying loans.

Credit Risk

Note 6 – Variable Interest Entities details the Company’s investments in CRT arrangements whereby the Company sold pools of loans into Fannie Mae guaranteed loan securitizations which became reference pools underlying the CRT arrangements. Fannie Mae transferred IO ownership interests and recourse obligations based upon the securitized reference pools of loans subject to the CRT arrangements into trust entities, and the Company acquired the IO ownership interests and assumed the recourse obligations in the CRT arrangements through the acquisition of beneficial interests in the trust entities.

The Company also invests in subordinate MBS, which are among the first beneficial interests in the issuing trusts to absorb credit losses on the underlying loans.

The Company’s retention of credit risk through its investment in CRT arrangements and subordinate MBS subjects it to risks associated with delinquency and foreclosure similar to the risks of loss associated with owning the underlying loans, which is greater than

the risk of loss associated with selling loans to the Agencies without the retention of credit risk in the case of CRT arrangements and investing in senior mortgage-backed securities in the case of subordinate MBS.

Certain of the Company's investments in CRT arrangements are structured such that loans that reach a specific number of days delinquent trigger losses chargeable to the CRT arrangements based on the sizes of the delinquent loans and a contractual schedule of loss severity. Therefore, the risks associated with delinquency and foreclosure may in some instances be greater than the risks associated with owning the related loans because the structure of those CRT arrangements provides that the Company may be required to absorb losses in the event of delinquency or foreclosure even when there is ultimately no loss realized with respect to such loans (e.g., as a result of a borrower’s re-performance). In contrast, the structure of the Company’s other investments in CRT arrangements requires PMT to absorb losses only when the reference loans realize losses.

The Company maintains cash and short-term investment balances at financial institutions in excess of the Federal Deposit Insurance Corporation ("FDIC") insurance limits. Should one or more of the financial institutions at which the Company's deposits are maintained fail, there is no guarantee as to the extent that the Company would recover the funds deposited, whether through FDIC coverage or otherwise, or the timing of any recovery.

Fair Value Risk

The Company is exposed to fair value risk in addition to the risks specific to credit and, as a result of prevailing market conditions, may be required to recognize losses associated with adverse changes to the fair value of its investments in MSRs, CRT arrangements, and MBS:

•
The fair value of MSRs is sensitive to changes in prepayment speed expectation and experience, the returns demanded by market participants and to estimates of cost to service the underlying loans;
•
The fair values of CRT arrangements and subordinate MBS are sensitive to market perceptions of future credit performance of the underlying loans as well as the actual credit performance of such loans and to the returns required by market participants to hold such investments; and
•
The fair values of Agency and senior non-Agency pass through MBS are sensitive to changes in market interest rates.
v3.25.0.1
Significant Accounting Policies
 12 Months Ended
Dec. 31, 2024
Accounting Policies [Abstract]  
Significant Accounting Policies

Note 3—Significant Accounting Policies

PMT’s significant accounting policies are summarized below.

Basis of Presentation

The Company’s 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.

Use of Estimates

Preparation of financial statements in compliance with GAAP requires the Company to make estimates and judgments 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.

Consolidation

The consolidated financial statements include the accounts of PMT and all wholly-owned subsidiaries. PMT has no significant equity method or cost-basis investments. Intercompany accounts and transactions are eliminated upon consolidation. The Company also consolidates the assets and liabilities included in certain VIEs discussed below.

Variable Interest Entities

The Company enters into various types of on- and off-balance sheet transactions with special purpose entities (“SPEs”), which are trusts that are established for a limited purpose. Generally, SPEs are formed in connection with securitization transactions. In a securitization transaction, the Company transfers assets on its balance sheet to an SPE, which then issues various forms of beneficial interests in those assets to investors. In a securitization transaction, the Company typically receives a combination of cash and beneficial interests in the SPE in exchange for the assets transferred by the Company.

SPEs are generally VIEs. A VIE is an entity having either a total equity investment at risk that is insufficient to finance its activities without additional subordinate financial support or whose equity investors at risk lack the ability to control the entity’s activities. Variable interests are investments or other interests that will absorb portions of a VIE’s expected losses or receive portions of the VIE’s expected residual returns. Expected residual returns represent the expected positive variability in the fair value of a VIE’s net assets.

GAAP requires that a VIE be consolidated by its primary beneficiary. The primary beneficiary is the party that has both the power to direct the activities that most significantly impact the economic performance of the VIE and holds a variable interest that could potentially be significant to the VIE. To determine whether a variable interest the Company holds could potentially be significant to the VIE, the Company considers both qualitative and quantitative factors regarding the nature, size and form of its involvement with the VIE.

PMT evaluates the securitization trust holding the assets to determine whether the entity is a VIE and whether the Company is the primary beneficiary and therefore is required to consolidate the securitization trust. The Company evaluates whether it is the primary beneficiary of a VIE on an ongoing basis.

Credit Risk Transfer Arrangements

The Company holds CRT arrangements with Fannie Mae, pursuant to which its subsidiary PennyMac Corp. (“PMC”), through subsidiary trust entities, sold pools of loans into Fannie Mae-guaranteed loan securitizations while retaining recourse obligations for credit losses and IO ownership interests in such loans. Loans subject to the CRT arrangements were transferred by PMC to subsidiary trust entities which sold the loans into Fannie Mae loan securitizations. Transfers of loans subject to CRT arrangements received sale accounting treatment.

The Company has concluded that its subsidiary trust entities holding its CRT arrangements are VIEs and the Company is the primary beneficiary of the VIEs as it is the holder of the primary beneficial interests which absorb the variability of the trusts’ results of operations. Consolidation of the VIEs results in the inclusion on the Company’s consolidated balance sheet of the fair value of the recourse obligations and retained IO ownership interests, in the form of derivative and IO strip assets and liabilities, the deposits pledged to fulfill the recourse obligations and an IO security payable at fair value. The deposits represent the Company’s maximum contractual exposure to claims under its recourse obligations and are the sole source of settlement of losses under the CRT arrangements. Gains and losses on the derivative and IO strip assets and liabilities related to CRT arrangements are included in Net gains (losses) on investments and financings in the consolidated statements of operations.

Subordinate Mortgage-Backed Securities

The Company retains or purchases subordinate MBS backed by loans secured by investment properties or fixed-rate prime jumbo loans in transactions sponsored by PMC or a nonaffiliate. Subordinate MBS provide the Company with a higher yield than senior securities. However, the Company retains credit risk in the subordinate MBS since they are the first securities to absorb credit losses relating to the underlying loans.

Cash inflows from the loans underlying subordinate MBS are distributed to investors and service providers in accordance with the contractual priority of payments and, as such, most of these inflows must be directed first to service and repay the senior certificates. The rights of holders of the subordinate certificates to receive distributions of principal and/or interest, as applicable, are subordinate to the rights of holders of the senior certificates. After the senior certificates are repaid, substantially all cash inflows will be directed to the subordinate certificates, including those held by the Company, until they are fully repaid.

Whether the Company concludes that it is the primary beneficiary of the VIEs issuing the subordinate MBS and therefore consolidates these entities is based on its exposure to losses that could be significant to the VIEs and its power to direct activities that most significantly impact the VIEs’ economic performance:

•
Certain of the Company’s investments in subordinate MBS either do not expose the Company to losses or residual returns that could be significant to the issuing VIE or the Company has concluded that it does not have the power to direct the activities that most significantly impact the VIE’s economic performance. These investments are classified as subordinate credit-linked securities in the Company’s investment in MBS as shown in Note 8 – Mortgage-Backed Securities.
•
For other investments in subordinate MBS, comprised of transactions backed by loans purchased by the Company that were subsequently included in securitizations sponsored by the Company or a nonaffiliate and serviced by PLS, the Company concluded that it is the primary beneficiary of the VIEs as it (1) has the power, through PLS, in its role as the servicer or sub-servicer of the majority of the loans, to direct the activities of the VIEs that most significantly impact the VIEs’ economic performance and, (2) as a holder of subordinate securities, is exposed to losses or residual returns that could potentially be significant to the VIEs. PMT consolidates the VIEs that issue those subordinate MBS.

For financial reporting purposes, the loans owned by the consolidated VIEs are included in Loans at fair value and the securities issued to nonaffiliates by the consolidated VIEs are included in Asset-backed financings at fair value on the Company’s consolidated balance sheets. Both the Loans at fair value and the Asset-backed financings at fair value included in the consolidated VIEs are also included in a separate statement following the Company’s consolidated balance sheets. The Company previously recognized MSRs

relating to loans owned by one of the consolidated VIEs. Upon purchase of the subordinate securities and consolidation of the VIE, the Company recombined the MSRs with the loans in the VIE to Loans at fair value.

The Company recognizes the interest income earned on the loans owned by the VIEs and the interest expense attributable to the asset-backed securities issued to nonaffiliates by the VIEs on its consolidated statements of operations.

The Company expects that any credit losses in the pools of securitized assets will likely be limited to the Company’s subordinate and residual interests. The Company has no obligation to repurchase or replace securitized assets that subsequently become delinquent or are otherwise in default other than pursuant to breaches of representations and warranties.

Financing of Mortgage Servicing Assets

The Company entered into securitization transactions in which it pledged participation interest in its MSRs to VIEs which issued variable funding notes and term debt backed by the participation certificates. The Company holds and acts as guarantor of the variable funding notes and term debt. The Company determined that it is the primary beneficiary of the VIEs because as the holder of the variable funding notes and issuer of performance guarantees, it holds the variable interests in the VIEs. Therefore, PMT consolidates the VIEs.

For financial reporting purposes, the MSRs financed by the consolidated VIEs are included in Mortgage servicing rights at fair value, the variable funding notes sold under agreements to repurchase are included in Assets sold under agreements to repurchase and the term debt is included in Notes payable secured by credit risk transfer and mortgage servicing assets on the Company’s consolidated balance sheets. The financing is detailed in Note 15 – Long-Term Debt.

Fair Value

The Company’s consolidated financial statements include assets and liabilities that are measured at or based on their fair values. Measurement at or based on fair value may be on a recurring or nonrecurring basis depending on the accounting principles applicable to the specific asset or liability and whether the Company has elected to carry the item at its fair value as discussed in the following paragraphs.

The Company groups its assets and liabilities at fair value in three levels, based on the markets in which the assets and liabilities are traded and the observability of the inputs used to determine fair value. These levels are:

•
Level 1—Quoted prices in active markets for identical assets or liabilities.
•
Level 2—Prices determined or determinable using other significant observable inputs. Observable inputs are inputs that other market participants would use in pricing an asset or liability and are developed based on market data obtained from sources independent of the Company.
•
Level 3—Prices determined using significant unobservable inputs. In situations where significant 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.

The Company reclassifies its assets and liabilities between levels of the fair value hierarchy when the inputs required to establish fair value at a level of the fair value hierarchy are no longer readily available, requiring the use of lower-level inputs, or when the inputs required to establish fair value at a higher level of the hierarchy become available.

Fair Value Accounting Elections

The Company identified all of its non-cash financial assets and MSRs to be accounted for at fair value. The Company has elected to account for these assets at fair value so such changes in fair value will be reflected in results of operations as they occur and more timely reflect the results of the Company’s performance.

The Company has also identified its Asset-backed financings of variable interest entities at fair value and Interest-only security payable at fair value to be accounted for at fair value to reflect the generally offsetting changes in fair value of these borrowings to changes in fair value of the assets carried at fair value collateralizing these financings. For other borrowings, the Company has determined

that historical cost accounting is more appropriate because under this method, debt issuance costs are amortized over the term of the debt facility, thereby matching the debt issuance cost to the periods benefiting from the availability of the debt.

Short-Term Investments

Short-term investments are carried at fair value with changes in fair value recognized in current period results of operations. Short-term investments represent deposit accounts. The Company categorizes its short-term investments as “Level 1” fair value assets.

Mortgage-Backed Securities

The Company’s investments in MBS are carried at fair value with changes in fair value recognized in current period results of operations. Changes in fair value arising from amortization of purchase premiums and accrual of unearned discounts are recognized using the interest method and are included in Interest income. Changes in fair value arising from other factors are included in Net gains (losses) on investments and financings. Purchases and sales of MBS are recorded as of the trade date. The Company categorizes its investments in Agency pass-through, senior non-Agency, subordinate credit linked MBS and principal-only stripped MBS as “Level 2” fair value assets. The Company classifies its investments in interest-only stripped MBS as “Level 3” fair value assets.

Interest Income Recognition

Interest income on MBS is recognized over the life of the security using the interest method. The Company estimates, at the time of purchase, the future expected cash flows and determines the effective interest rate based on the estimated cash flows and the security’s purchase price. The Company updates its cash flow estimates monthly.

Loans

Loans are carried at their fair values with changes in fair value recognized in current period results of operations. Changes in fair value, other than changes in fair value attributable to accrual of unearned discounts and amortization of purchase premiums, are included in Net gains (losses) on investments and financings for loans classified as Loans at fair value and Net gains on loans acquired for sale for loans classified as Loans acquired for sale at fair value. Changes in fair value attributable to accrual of unearned discounts and amortization of purchase premiums are included in Interest income on the consolidated statements of operations. The Company categorizes its Loans acquired for sale at fair value that are readily saleable into active markets with observable inputs that are significant to their fair values and its Loans at fair value held in VIEs as “Level 2” fair value assets. The Company categorizes all other loans as “Level 3” fair value assets.

Sale Recognition

The Company purchases from and sells loans into 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 arising from the representations and warranties it makes to purchasers and insurers of the loans.

The Company recognizes transfers of loans as sales based on whether the transfer is made to a VIE:

•
For loans that are transferred to a VIE, the Company recognizes the transfer as a sale when it determines that the Company is not the primary beneficiary of the VIE.
•
For loans that are not transferred to a VIE, the Company recognizes the transfer as a sale when it surrenders control over the loans. Control over transferred loans is deemed to be surrendered when
(i)
the loans have been isolated from the Company,
(ii)
the transferee has the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred loans, and
(iii)
the Company does not maintain effective control over the transferred loans through either:
a.
an agreement that entitles and obligates the Company to repurchase or redeem the loans before their maturity; or
b.
the ability to unilaterally cause the holder to return specific loans.

 

Interest Income Recognition

The Company has the ability but not the intent to hold loans acquired for sale and loans at fair value other than loans held in VIEs for the foreseeable future. Therefore, interest income on loans acquired for sale and loans at fair value other than loans held in VIEs is recognized over the life of the loans using their contractual interest rates.

The Company has both the ability and intent to hold loans held in VIEs for the foreseeable future. Therefore, interest income on loans held in VIEs is recognized over the estimated remaining life of the loans using the interest method. Unearned discounts and purchase premiums are accrued and amortized to interest income using the effective interest rate inherent in the estimated cash flows from the loans.

Income recognition is suspended and the accrued unpaid interest receivable is reversed against interest income when a loan becomes 90 days delinquent. Income recognition is resumed when the loan becomes contractually current.

Derivative and Credit Risk Transfer Strip Assets and Liabilities

The Company holds and issues derivative financial instruments in connection with its operating, investing and financing activities. Derivative financial instruments are created as a result of certain of the Company’s operations and the Company also enters into derivative transactions as part of its interest rate risk management activities.

Derivative financial instruments created as a result of the Company’s operations include:

•
Interest rate lock commitments (“IRLCs”) that are created when the Company commits to purchase loans for sale; and
•
CRT Agreements whereby the Company retained a recourse obligation relating to certain loans it sold into Fannie Mae guaranteed securitizations as part of the retention of an IO ownership interest in such loans.

The Company engages in interest rate risk management activities in an effort to reduce the variability of its results of operations caused by the effects of changes in interest rates on the fair value of certain of its assets and liabilities. The Company bears price risk related to its mortgage production, servicing, and MBS financing activities due to changes in market interest rates as discussed below:

•
The Company is exposed to loss if market mortgage interest rates increase because market interest rate increases generally cause the fair value of MBS (other than IO stripped MBS), IRLCs and loans acquired for sale to decrease.
•
The Company is exposed to losses if market mortgage interest rates decrease because market interest rate decreases generally cause the fair value of MSRs and IO stripped MBS to decrease.

To manage the price risk resulting from these interest rate risks, the Company uses derivative financial instruments with the intention of moderating the risk that changes in market interest rates will result in unfavorable changes in the fair value of the Company’s inventory of loans acquired for sale, IRLCs, MSRs and MBS financing.

The Company records all derivative and CRT strip assets and liabilities at fair value and records changes in fair value in current period results of operations. The Company does not designate and qualify any of its derivative financial instruments for hedge accounting.

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. IRLC and CRT derivatives are categorized by the Company as “Level 3” fair value assets and liabilities.

Cash flows from derivative financial instruments relating to hedging of IRLCs and loans acquired for sale are included in Cash flows from operating activities in Sale to nonaffiliates and repayment of loans acquired for sale. Cash flows from derivative financial instruments relating to hedging of MSRs are included in Cash flows from investing activities.

Real Estate Acquired in Settlement of Loans

Real estate acquired in settlement of loans (“REO”) is measured at the lower of the acquisition cost of the property (as measured by the fair value of the loan immediately before acquisition of the property in settlement of a loan) or its fair value reduced by estimated costs to sell. Changes in fair value to levels that are less than or equal to acquisition cost and gains or losses on sale of REO are recognized in the consolidated statements of operations under the caption Results of real estate acquired in settlement of loans. The Company categorizes REO as “Level 3” fair value assets.

Mortgage Servicing Rights

MSRs arise from contractual agreements between the Company and investors (or their agents) in mortgage securities and loans. Under these agreements, the Company is obligated to provide loan servicing functions in exchange for fees and other remuneration. The

servicing functions typically performed include, among other responsibilities, collecting and remitting loan payments; responding to borrower inquiries; accounting for principal and interest, holding custodial (impounded) funds for payment of property taxes and insurance premiums; counseling delinquent mortgagors, administering loss mitigation activities, including modification and forbearance programs; and supervising foreclosures and property dispositions. The Company has engaged PFSI to provide these services on its behalf.

The Company recognizes MSRs initially at their fair values, either as proceeds from sales of loans where the Company assumes the obligation to service the loan in the sale transaction, or from the purchase of MSRs. The Company categorizes MSRs as “Level 3” fair value assets.

Servicing Advances

Servicing advances represent advances made on behalf of borrowers and the loans’ investors to fund property tax and insurance premiums for impounded loans with inadequate impound balances and for non-impounded loans with delinquent property taxes or insurance premiums and out of pocket collection costs for delinquent loans (e.g., preservation and restoration of mortgaged property, legal fees, appraisals and insurance premiums). Servicing advances are made in accordance with the Company’s servicing agreements and, when made, are deemed recoverable. The Company periodically reviews servicing advances for collectability. Servicing advances are written off when they are deemed uncollectible.

Borrowings

Borrowings, other than Asset-backed financings of variable interest entities at fair value and Interest-only security payable at fair value, are carried at amortized cost. Costs of creating the facilities underlying the agreements are included in the carrying value of the borrowing facilities and are accrued to Interest expense over the term of revolving borrowing facilities on the straight-line basis and over non-revolving borrowings’ contractual lives using the interest method.

Asset-Backed Financings of Variable Interest Entities at Fair Value and Interest-Only Security Payable at Fair Value

The certificates issued to nonaffiliates by the Company relating to the asset-backed financings and the IO security payable are recorded as borrowings. Certificates issued to nonaffiliates have the right to receive principal and/or interest payments of the loans held by the consolidated VIEs. Asset-backed financings of variable interest entities at fair value and Interest-only security payable at fair value are carried at fair value. Changes in fair value are recognized in current period results of operations as a component of Net gains (losses) on investments and financings. Issuance discounts and cost are accrued to Interest expense over the estimated lives of these borrowings using the interest method. The Company categorizes Asset-backed financings of variable interest entities at fair value as “Level 2” fair value liabilities and the Interest-only security payable at fair value as a “Level 3” fair value liability.

Liability for Losses Under Representations and Warranties

The Company’s sales agreements include representations and warranties related to the loans the Company sells to the Agencies and other investors. The representations and warranties require adherence to Agency and other investor origination and underwriting guidelines, including but not limited to the validity of the lien securing the loan, property eligibility, property value, loan amount, borrower credit, income and asset requirements, and compliance with applicable federal, state and local law. The Company provides for its estimate of the fair value of the losses that it expects to incur as a result of its breach of the representations and warranties that it provides to the purchasers and insurers of the loans it has sold.

In the event of a breach of its representations and warranties, the Company may be required to either repurchase the loans with the identified defects, reimburse the investor for its loss or indemnify the investor or insurer against credit losses arising from such loans. In either case, the Company bears any subsequent credit loss on the loans. The Company’s credit loss may be reduced by any recourse it has to correspondent sellers that had sold such loans to the Company and breached similar or other representations and warranties. In such event, the Company has the right to seek a recovery of related repurchase losses from that correspondent seller.

The Company records a provision for losses relating to representations and warranties as part of its loan sale transactions. The method used to estimate the liability for representations and warranties is a function of the representations and warranties given and considers a combination of factors, including, but not limited to, estimated future defaults and loan defect rates, the estimated severity of loss in the event of default and the probability of reimbursement by the correspondent loan seller. The Company establishes a liability at fair value at the time loans are sold and periodically adjusts the liability for estimated losses in excess of the recorded liability. The level of the liability for representations and warranties is reviewed and approved by the Company’s management credit committee. The establishment of and adjustments to the liability are included in the Net gains on loans acquired for sale at fair value.

The level of the liability for representations and warranties is difficult to estimate and requires considerable judgment. The level of loan repurchase losses is dependent on economic factors, investor demand strategies, and other external conditions that may change over the lives of the underlying loans. The Company’s representations and warranties are generally not subject to stated limits of exposure.

However, the Company believes that the current unpaid principal balance (“UPB”) of loans it has sold to date represents the maximum exposure to repurchases related to representations and warranties.

Loan Servicing Fees

Loan servicing fees and other remuneration are received by the Company for servicing residential loans. Loan servicing activities are described under Mortgage Servicing Rights above. The Company’s obligation under its loan servicing agreements is fulfilled as the Company services the loans.

Loan servicing fee amounts are based upon fee rates established at the time a loan sale or securitization is entered into and upon the unpaid principal balance of the loans. Loan servicing fees are recognized in the period in which they are earned.

Share-Based Compensation

The Company amortizes the fair value of previously granted share-based awards to Compensation expense over the vesting period using the graded vesting method. The initial cost of share-based awards is established at the Company’s closing share price adjusted for the portion of the awards expected to vest on the date of the award. The Company adjusts the cost of its share-based awards for changes in estimates of the portion of the awards it expects to be forfeited by grantees and for changes in expected performance attainment in each subsequent reporting period until the units have vested or have been forfeited, the service being provided is subsequently completed, or, under certain circumstances, is likely to be completed, whichever occurs first.

Income Taxes

The Company has elected to be taxed as a REIT and believes PMT complies with the provisions of the Internal Revenue Code applicable to REITs. Accordingly, the Company believes PMT will not be subject to federal income tax on that portion of its REIT taxable income that is distributed to shareholders as long as certain asset, income and share ownership tests are met. If PMT fails to qualify as a REIT, and does not qualify for certain statutory relief provisions, it will be subject to income taxes and may be precluded from qualifying as a REIT for the four tax years following the year of loss of the Company’s REIT qualification.

PMC, the Company’s taxable REIT subsidiary (“TRS”), is subject to federal and state income taxes. Income taxes are provided for using the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted rates expected to apply to taxable income in the years in which the Company expects those temporary differences to be recovered or settled. The effect on deferred taxes of a change in tax rates is recognized in results of operations in the period in which the change occurs.

A valuation allowance is established if, in the Company’s judgment, realization of deferred tax assets is not more likely than not. The Company recognizes a tax benefit relating to tax positions it takes only if it is more likely than not that the position will be sustained upon examination by the appropriate taxing authority. A tax position that meets this standard is recognized as the largest amount that exceeds 50 percent likelihood of being realized upon settlement. The Company will classify any penalties and interest as a component of income tax expense.

Recently Issued Accounting Pronouncements

During 2023, the FASB issued two Accounting Standards Updates (“ASUs”) aimed at increasing the amount of detail provided to financial statement users in certain existing disclosures. Neither ASU requires changes to the Company’s accounting. The ASUs are discussed below:

Income Tax Disclosures

The FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”), that is intended to enhance the transparency and decision usefulness of income tax disclosures. ASU 2023-09 requires disclosures of:

•
Reconciliation of the expected income tax at the applicable statutory federal income tax rate to the reported income tax in a tabular format, using both percentages and amounts, broken out into specific categories with certain reconciling items of five percent or greater of the expected tax further broken out by nature and/or jurisdiction; and
•
Income taxes paid, net of refunds received, broken out between federal and state and local income taxes. Payments to individual jurisdictions representing five percent or more of the total income tax payments must also be separately disclosed.

The disclosures required by ASU 2023-09 are required in the Company’s annual financial statements beginning with the year ending December 31, 2025, with early adoption permitted.

Accounting Standard Adopted in 2024

Segment Disclosures

The FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (“ASU 2023-07”), that is intended to improve disclosures about a public entity’s reportable segments and addresses requests from investors and other allocators of capital for more detailed information about a reportable segment’s expenses.

The amendments in ASU 2023-07 are intended to improve reportable segment disclosure primarily through enhanced disclosures about significant segment expenses. The key amendments require the Company to supplement its existing disclosures to include disclosure of:

•
significant segment expenses that are regularly provided to the chief operating decision maker included within each reported measure of segment profit or loss; and
•
an amount for other segment items by reportable segment and a description of its composition. The other segment items category is the difference between segment revenue less the significant expenses disclosed and each reported measure of segment profit or loss.

The Company adopted ASU 2023-07 effective December 31, 2024 as shown in Note 25 — Segments.
v3.25.0.1
Transactions with Related Parties
 12 Months Ended
Dec. 31, 2024
Related Party Transactions [Abstract]  
Transactions with Related parties

Note 4—Transactions with Related Parties

The Company enters into transactions with subsidiaries of PFSI in support of its operating, investing and financing activities as summarized below.

Operating Activities

Servicing Agreement

The Company has a loan servicing agreement with PLS (the “Servicing Agreement”) pursuant to which PLS provides subservicing for the Company's portfolio of MSRs, loans held for sale, loans held in VIEs (prime servicing), and its portfolio of residential loans purchased with credit deterioration (special servicing). The Servicing Agreement provides for servicing fees earned by PLS that are established at a per loan monthly amount based on the delinquency, bankruptcy and/or foreclosure status of the serviced loan or real estate acquired in settlement of loans (“REO").

Prime Servicing

•
The per-loan base servicing fees for prime loans subserviced by PLS on the Company’s behalf are $7.50 per month for fixed-rate loans and $8.50 per month for adjustable-rate loans.
•
To the extent that these prime loans become delinquent, PLS 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.
•
PLS 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 and certain fees for pandemic-related forbearance and modification activities.

Special Servicing

•
The per-loan base servicing fee rates for loans purchased with credit deterioration (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. PLS also receives a supplemental servicing fee of $25 per month for each special servicing loan.
•
PLS receives activity-based fees for modifications, foreclosures and liquidations that it facilitates with respect to special servicing, as well as other market-based refinancing and loan disposition fees.

In December 2024, the Servicing Agreement was modified and extended, effective January 1, 2025. Changes to the Servicing Agreement include applying the servicing fee rates under the prime servicing fee schedule to special servicing loans, passing through Agency incentive fees to PLS for loss mitigation activities, adding a fee for processing insurance and guarantee claims on defaulted loans and increasing servicing fee rates for delinquent loans to a range of $18 to $80 per month based on the loans’ delinquency, bankruptcy and foreclosure status. The Servicing Agreement expires on December 31, 2029, subject to automatic renewal for an additional 18-month period unless terminated in accordance with the terms of the agreement.

MSR Recapture Agreement

The Company has an MSR recapture agreement with PLS. Pursuant to the terms of the MSR recapture agreement, if PLS refinances (recaptures) mortgage loans for which the Company previously held the MSRs, PLS is generally required to transfer and convey to the Company cash in an 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 UPB of all recaptured loans, to (ii) the aggregate UPB of all mortgage loans for which the Company held the MSRs and that were refinanced or otherwise paid off in such month. PFSI has further agreed to allocate sufficient resources to target a recapture rate of at least 15%.

In December 2024, the MSR recapture agreement was renewed and amended, effective January 1, 2025, to adjust the recapture fee as follows:

•
70% of the fair market value of the MSRs relating to the recaptured loans subject to the first 30% of the “recapture rate”;
•
50% of the fair market value of the MSRs relating to the recaptured loans subject to the “recapture rate” in excess of 30% and up to 50%;
•
40% of the fair market value of the MSRs relating to the recaptured loans subject to the “recapture rate” in excess of 50%; and
•
a recapture fee of $900 per loan if PLS originates a mortgage loan for the purpose of purchasing a property where the customer has or had a mortgage loan for which PMT holds or held the MSR.

For the purpose of the December 2024 renewal of the MSR recapture agreement, the “recapture rate” means, during each month, the ratio of (i) the aggregate unpaid principal balance of all refinance mortgage loans originated in such month, plus the aggregate unpaid principal balance of all "preserved mortgage loans" relating to closed end second loans originated in such month, to (ii) the aggregate unpaid principal balance of all mortgage loans from the portfolio that PLS has determined in good faith were refinanced in such month, plus the aggregate unpaid principal balance of all "preserved mortgage loans" relating to closed end second lien loans originated in such month. For purposes of such calculation, “preserved mortgage loan” means a mortgage loan in PMT’s portfolio as to which PLS or its affiliates originated a new closed end second lien loan in a subordinate position to such mortgage loan.

The MSR recapture agreement expires on December 31, 2029, subject to automatic renewal for an additional 18-month period unless terminated in accordance with the terms of the agreement.

Following is a summary of loan servicing and recapture fees earned by PLS:

 

Year ended December 31,

 

 

2024

 

 

2023

 

 

2022

 

 

(in thousands)

 

Loan servicing fees:

 

 

 

 

 

 

 

 

Loans acquired for sale

$

525

 

 

$

680

 

 

$

1,018

 

Loans at fair value

 

591

 

 

 

208

 

 

 

529

 

Mortgage servicing rights

 

82,136

 

 

 

80,459

 

 

 

80,368

 

$

83,252

 

 

$

81,347

 

 

$

81,915

 

Average investment in loans:

 

 

 

 

 

 

 

 

Acquired for sale

$

1,249,423

 

 

$

1,439,373

 

 

$

1,938,470

 

At fair value

$

1,468,687

 

 

$

1,451,632

 

 

$

1,615,982

 

Average MSR portfolio unpaid principal balance

$

228,705,758

 

 

$

231,203,032

 

 

$

222,847,593

 

 

 

 

 

 

 

 

 

 

MSR recapture fees

$

2,193

 

 

$

1,784

 

 

$

13,744

 

UPB of loans recaptured

$

353,710

 

 

$

315,412

 

 

$

2,533,115

 

Correspondent Production Activities

Mortgage Banking Servicing Agreement

The Company is provided fulfillment and other services for the operation of its correspondent production business under an amended and restated mortgage banking services agreement with PLS. These services include: provision of models and technology for the pricing of loans and MSRs; reviews of loan data; documentation and appraisals to assess loan quality and risk; hedging the fair value of the Company's mortgage loan inventory and commitments to purchase mortgage loans to reduce the risk of loss arising from fluctuations in fair value due to movements in interest rates; correspondent seller performance and credit monitoring procedures; and the sale of loans through secondary mortgage markets on behalf of the Company.

Fulfillment fees in any quarter shall not exceed the following:

•
the number of loan commitments issued by the Company 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
•
$315 multiplied by the number of purchased loans up to and including 16,500 per quarter and $195 multiplied by the number of purchased loans in excess of 16,500 per quarter, plus
•
$750 multiplied by the number of all purchased loans that are sold 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 and, as of October 1, 2022, designated Fannie Mae or Freddie Mac loans acquired by PLS.

In December 2024, the mortgage banking services agreement was renewed and amended, effective January 1, 2025, to provide for a quarterly fulfillment fee not to exceed the following:

•
the number of non-Ginnie Mae loan commitments issued during the quarter 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, and then multiplied by a ratio of the number of loan commitments issued to PMT during the quarter to the total number of non-Ginnie Mae loan commitments issued during the quarter, plus
•
$315 multiplied by the number of purchased loans up to and including 16,500 per quarter and $195 multiplied by the number of purchased loans in excess of 16,500 per quarter, multiplied by a ratio of the number of loans purchased by the Company during the quarter to the total number of non-Ginnie Mae loans purchased during the quarter, plus
•
$500 multiplied by the number of all purchased loans that are sold or securitized to parties other than Fannie Mae or Freddie Mac; provided however, that no fulfillment fee shall be due or payable to the Company with respect to any Ginnie Mae mortgage loans, any Fannie Mae mortgage loan or Freddie Mac mortgage loan acquired from PMT by the Company on a
discretionary basis, or any mortgage loan acquired by PMT from the Company on or before June 30, 2025, provided that supplemental fees may still be charged in connection with the securitization or sale of any such mortgage loans.

The Company does not hold the Ginnie Mae approval required to issue Ginnie Mae MBS and act as a servicer. Accordingly, under the mortgage banking services agreement, PLS purchases mortgage loans underwritten in accordance with the Ginnie Mae MBS Guide “as is” and without recourse of any kind from the Company at cost less an administrative fee plus accrued interest and a sourcing fee ranging from one to two basis points of the UPB of the loan, generally based on the average number of calendar days the loans are held by the Company before purchase by PLS. PLS may also acquire conventional loans from the Company on the same terms upon mutual agreement between the Company and PLS.

While PLS purchases these mortgage loans “as is” and without recourse of any kind from the Company, where PLS 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 the Company.

In December 2024, the mortgage banking services agreement was renewed and amended to provide for PLS to assume the role of initial correspondent loan purchaser in place of the Company effective July 1, 2025. Under this agreement, the Company retains the right to purchase up to 100% of the non-government insured or guaranteed loans purchased by PLS at its cost plus accrued interest, less any loan administrative fee paid to PLS by the correspondent seller, and subject to quarterly fulfillment fees as previously described. PLS may hold or otherwise sell correspondent loans to other investors if the Company chooses not to purchase such loans. Accordingly, the sourcing fee arrangement will no longer have any effect beginning July 1, 2025.

The mortgage banking services agreement expires on December 31, 2029, subject to automatic renewal for an additional 18-month period unless terminated in accordance with the terms of the agreement.

The Company may also purchase newly originated conforming balance non-government insured or guaranteed loans from PLS under a mortgage loan purchase and sale agreement.

Following is a summary of correspondent production activity and other loan purchases between the Company and PLS:

 

 

Year ended December 31,

 

 

 

2024

 

 

2023

 

 

2022

 

 

(in thousands)

 

Loan fulfillment fees earned by PLS

 

$

26,291

 

 

$

27,826

 

 

$

67,991

 

UPB of loans fulfilled by PLS

 

$

13,446,484

 

 

$

14,898,301

 

 

$

37,090,031

 

 

 

 

 

 

 

 

 

 

Sourcing fees received from PLS included in
   Net gains on loans acquired for sale

 

$

8,069

 

 

$

7,162

 

 

$

4,968

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

UPB of loans sold to PLS:

 

 

 

 

 

 

 

 

 

Government guaranteed or insured

 

$

40,838,480

 

 

$

40,476,782

 

 

$

45,768,110

 

Conventional conforming

 

 

39,856,056

 

 

 

31,141,915

 

 

 

3,912,157

 

 

$

80,694,536

 

 

$

71,618,697

 

 

$

49,680,267

 

 

 

 

 

 

 

 

 

 

 

Purchases of loans acquired for sale from PLS

 

$

662,952

 

 

$

—

 

 

$

298,862

 

 

 

 

 

 

 

 

 

 

Tax service fees paid to PLS

 

$

2,523

 

 

$

3,216

 

 

$

8,418

 

 

 

 

December 31, 2024

 

 

December 31, 2023

 

 

 

(in thousands)

 

Loans included in Loans acquired for sale at fair value
   pending sale to PLS

 

$

602,108

 

 

$

168,303

 

Management Agreement

The Company has a management agreement with PCM pursuant to which PMT pays PCM management fees as follows:

•
A base management fee that is calculated quarterly and is equal to the sum of (i) 1.5% per year of average shareholders’ equity up to $2 billion, (ii) 1.375% per year of average shareholders’ equity in excess of $2 billion and up to $5 billion, and (iii) 1.25% per year of average shareholders’ equity in excess of $5 billion.
•
A performance incentive fee that is calculated quarterly at a defined annualized percentage of the amount by which “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:

•
10% of the amount by which “net income” for the quarter exceeds (i) an 8% return on “equity” plus the “high watermark”, up to (ii) a 12% return on “equity”; plus
•
15% of the amount by which “net income” for the quarter exceeds (i) a 12% return on “equity” plus the “high watermark”, up to (ii) a 16% return on “equity”; plus
•
20% of the amount by which “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 the Company’s common shares of beneficial interest (“Common Shares”) calculated in accordance with GAAP, and adjusted to exclude one-time events pursuant to changes in GAAP and certain other non-cash charges after discussion between PCM and the Company’s independent trustees and after approval by a majority of the Company’s independent trustees.

“Equity” is the weighted average of the issue price per Common Share of all of the Company’s public offerings, multiplied by the weighted average number of Common Shares outstanding (including restricted share units) in the rolling four-quarter period.

“High watermark” is the quarterly adjustment that reflects the amount by which the “net income” (stated as a percentage of return on "equity") exceeds or falls short of the lesser of 8% and the average Fannie Mae 30-year MBS yield (the "Target Yield") for the rolling four quarters then ended. The “high watermark” starts at zero and is adjusted quarterly. If the “net income” is lower than the Target Yield, the “high watermark” is increased by the difference. If “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 PCM 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.

The base management fee and the performance incentive fee are both payable quarterly in arrears. The performance incentive fee may be paid in cash or a combination of cash and the Company’s Common Shares (subject to a limit of no more than 50% paid in Common Shares), at the Company’s option.

In the event of termination of the management agreement between the Company and PCM, PCM 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 PCM, in each case during the 24-month period before termination of the management agreement.

Following is a summary of management fee expenses:

 

Year ended December 31,

 

 

2024

 

 

2023

 

 

2022

 

 

(in thousands)

 

Base management

$

28,623

 

 

$

28,762

 

 

$

31,065

 

Performance incentive

 

—

 

 

 

—

 

 

 

—

 

$

28,623

 

 

$

28,762

 

 

$

31,065

 

Average shareholders' equity amounts used to calculate
    base management fee expense

$

1,908,287

 

 

$

1,917,642

 

 

$

2,079,851

 

In December 2024, the Management Agreement was renewed and amended effective January 1, 2025, to change the incentive fee from a quarterly fee to an annual fee and limit the calculation of the high watermark to the two-year period preceding the fiscal year for which the incentive fee is calculated. In addition, the highwater mark shall never be less than zero after including all high watermark increases and high watermark decreases over any such rolling two fiscal year period. The Management Agreement expires on December 31, 2029, subject to automatic renewal for an additional 18-month period unless terminated in accordance with the terms of the agreement.

Expense Reimbursement

Under the management agreement, PCM is entitled to reimbursement of its organizational and operating expenses, including third-party expenses, incurred on the Company’s behalf, it being understood that PCM 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 the Company. PCM is reimbursed $165,000 per fiscal quarter for these services, such amount to be reviewed annually and to not preclude reimbursement for any other services performed by PCM or its affiliates.

The Company is required to pay PCM and its affiliates a portion of the rent, telephone, utilities, office furniture, equipment, machinery and other office, internal and overhead expenses of PCM and its affiliates required for the Company’s and its subsidiaries’ operations. These expenses are allocated based on the ratio of the Company’s and its subsidiaries’ proportion of gross assets compared to all remaining gross assets managed or owned by PCM and/or its affiliates as calculated at each fiscal quarter end.

Following is a summary of the Company’s reimbursements to PCM and its affiliates for expenses:

 

Year ended December 31,

 

 

2024

 

 

2023

 

 

2022

 

 

(in thousands)

 

Reimbursement of:

 

 

 

 

 

 

 

 

Expenses incurred on the Company’s behalf, net

$

20,871

 

 

$

21,468

 

 

$

23,829

 

Common overhead incurred by PCM and its affiliates

 

7,909

 

 

 

7,492

 

 

 

8,588

 

Compensation

 

660

 

 

 

660

 

 

 

660

 

$

29,440

 

 

$

29,620

 

 

$

33,077

 

Payments and settlements during the year (1)

$

118,167

 

 

$

94,339

 

 

$

144,012

 

 

(1)
Payments and settlements include payments and netting settlements made pursuant to master netting agreements between the Company and PFSI for the operating, investing and financing activities itemized in this Note.

Under the amended Management Agreement discussed above, effective January 1, 2025, PFSI will be reimbursed based on the resources it dedicates to investment management and will also be reimbursed for its accounting, legal, financial reporting, Sarbanes Oxley Act of 2002 compliance and internal audit services. Such allocations will be reviewed annually.

Financing Activities

PFSI Investment in the Company

PFSI held 75,000 of the Company’s Common Shares at both December 31, 2024 and December 31, 2023.

Amounts Receivable from and Payable to PFSI

Amounts receivable from and payable to PFSI are summarized below:

 

 

December 31, 2024

 

 

December 31, 2023

 

 

(in thousands)

 

Due from PFSI-Miscellaneous receivables

 

$

16,015

 

 

$

56

 

 

 

 

 

 

 

Due to PFSI:

 

 

 

 

 

 

Correspondent production fees

 

$

11,122

 

 

$

8,288

 

Management fees

 

 

7,149

 

 

 

7,252

 

Loan servicing fees

 

 

6,822

 

 

 

6,809

 

Allocated expenses and expenses and costs paid by PFSI on PMT’s behalf

 

 

3,508

 

 

 

5,612

 

Fulfillment fees

 

 

1,605

 

 

 

1,301

 

 

$

30,206

 

 

$

29,262

 

The Company has also transferred cash to PLS to fund loan servicing advances and REO property acquisition and preservation costs on its behalf. Such amounts are included in various balance sheet items as summarized below:

Balance sheet line including advance amount

 

December 31, 2024

 

 

December 31, 2023

 

 

 

(in thousands)

 

Servicing advances

 

$

105,037

 

 

$

206,151

 

Other assets-Real estate acquired in settlement of loans

 

 

1,265

 

 

 

2,003

 

 

$

106,302

 

 

$

208,154

 

 
v3.25.0.1
Loan Sales
 12 Months Ended
Dec. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Loan Sales

Note 5—Loan Sales

The following table summarizes cash flows between the Company and transferees in transfers of loans that are accounted for as sales where the Company maintains continuing involvement with the loans:

 

 

 

Year ended December 31,

 

 

 

2024

 

 

2023

 

 

2022

 

 

 

(in thousands)

 

Cash flows:

 

 

 

 

 

 

 

 

 

Proceeds from sales

 

$

12,414,391

 

 

$

15,936,124

 

 

$

39,077,156

 

Loan servicing fees received

 

$

644,642

 

 

$

659,438

 

 

$

625,210

 

 

The following table summarizes for the dates presented collection status information for loans that are accounted for as sales where the Company maintains continuing involvement:

 

 

 

December 31, 2024

 

 

December 31, 2023

 

 

 

(in thousands)

 

UPB of loans outstanding

 

$

222,761,227

 

 

$

228,838,471

 

Collection status (UPB)

 

 

 

 

 

 

Delinquency:

 

 

 

 

 

 

30-89 days delinquent

 

$

2,618,767

 

 

$

2,184,500

 

90 or more days delinquent:

 

 

 

 

 

 

Not in foreclosure

 

$

1,078,362

 

 

$

1,029,962

 

In foreclosure

 

$

105,810

 

 

$

85,045

 

Bankruptcy

 

$

281,821

 

 

$

185,320

 

 

 

 

 

 

 

 

Custodial funds managed by the Company (1)

 

$

2,385,602

 

 

$

1,759,974

 

 

(1)
Custodial funds include borrower and investor custodial cash accounts relating to loans serviced under mortgage servicing agreements and are not included 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, and these fees are included in Interest income in the Company’s consolidated statements of operations.
v3.25.0.1
Variable Interest Entities
 12 Months Ended
Dec. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Variable Interest Entities

Note 6—Variable Interest Entities

The Company is a variable interest holder in various VIEs that relate to its investing and financing activities as discussed below.

Credit Risk Transfer Arrangements

The Company has previously entered into certain loan sales arrangements pursuant to which it accepted credit risk relating to the loans sold in exchange for a portion of the interest earned on such loans. These arrangements absorb scheduled or realized credit losses on those loans and comprise the Company’s investments in CRT arrangements.

The Company, through PMC, entered into CRT arrangements with Fannie Mae, pursuant to which the Company sold pools of loans into Fannie Mae-guaranteed securitizations while retaining recourse obligations as part of the retention of IO ownership interests in such loans. CRT arrangements include:

•
securities which are structured such that loans that reach a specific number of days delinquent (including loans in forbearance) trigger losses chargeable to the CRT arrangement based on the sizes of the delinquent loans and a contractual schedule of loss severity; and
•
securities which require the Company to absorb losses only when the reference loans realize credit losses.

The Company placed Deposits securing CRT arrangements into subsidiary trust entities to secure its recourse obligations. The Deposits securing CRT arrangements represent the Company’s maximum contractual exposure to claims under its recourse obligations and are the sole source of settlement of losses under the CRT arrangements.

The Company’s exposure to losses under its recourse obligations was initially established at rates ranging from 3.5% to 4.0% of the UPB of the loans sold under the CRT arrangements. As the UPB of the underlying loans subject to each CRT arrangement decreased through repayments, the percentage exposure to losses of each CRT arrangement increased to maximums ranging from 4.5% to 5.0% of outstanding UPB, although the total dollar amount of exposure to losses did not increase.

The Company has concluded that the subsidiary trust entities holding its CRT arrangements are VIEs and the Company is the primary beneficiary of the VIEs as it is the holder of the primary beneficial interests which absorb the variability of the trusts’ results of operations. For CRT arrangements where losses are triggered based on the loans’ delinquency status, the Company recognizes its IO ownership interests and recourse obligations on the consolidated balance sheets as CRT Derivatives in Derivative assets and Derivative and credit risk transfer strip liabilities. For CRT securities where losses are absorbed when the reference loans realize credit losses, the Company recognizes its IO ownership interests and recourse obligations as CRT strips which are included on the consolidated balance sheet in Derivative and credit risk transfer strip liabilities. Gains and losses on the derivatives and strips (including the IO ownership interest sold to a nonaffiliate) included in the CRT arrangements are included in Net gains (losses) on investments and financings in the consolidated statements of operations.

Following is a summary of the CRT arrangements:

 

 

Year ended December 31,

 

 

2024

 

 

2023

 

 

2022

 

 

(in thousands)

 

Net investment income:

 

 

 

 

 

 

 

 

Net gains (losses) on investments and financings

 

 

 

 

 

 

 

 

CRT derivatives and strips:

 

 

 

 

 

 

 

 

CRT derivatives

 

 

 

 

 

 

 

 

Realized

$

13,491

 

 

$

18,524

 

 

$

38,382

 

Valuation changes

 

13,529

 

 

 

38,020

 

 

 

(42,220

)

 

27,020

 

 

 

56,544

 

 

 

(3,838

)

CRT strips

 

 

 

 

 

 

 

 

Realized

 

45,573

 

 

 

46,252

 

 

 

60,389

 

Valuation changes

 

42,632

 

 

 

90,501

 

 

 

(110,356

)

 

88,205

 

 

 

136,753

 

 

 

(49,967

)

Interest-only security payable at fair value - valuation changes

 

(1,555

)

 

 

(10,742

)

 

 

(11,332

)

 

113,670

 

 

 

182,555

 

 

 

(65,137

)

Interest income — Deposits securing CRT arrangements

 

59,304

 

 

 

62,713

 

 

 

21,324

 

$

172,974

 

 

$

245,268

 

 

$

(43,813

)

 

 

 

 

 

 

 

 

 

Net payments made (recoveries received) to settle losses
    (recoveries) on CRT arrangements

$

1,633

 

 

$

3,523

 

 

$

(19,016

)

 

 

December 31, 2024

 

 

December 31, 2023

 

 

(in thousands)

 

Carrying value of CRT arrangements:

 

 

 

 

 

Derivative assets - CRT derivatives

$

29,377

 

 

$

16,160

 

CRT strip liabilities

 

(4,060

)

 

 

(46,692

)

Deposits securing CRT arrangements

 

1,110,708

 

 

 

1,209,498

 

Interest-only security payable at fair value

 

(34,222

)

 

 

(32,667

)

 

$

1,101,803

 

 

$

1,146,299

 

 

 

 

 

 

CRT arrangement assets pledged to secure borrowings:

 

 

 

 

 

Derivative assets

$

29,377

 

 

$

16,160

 

Deposits securing CRT arrangements (1)

$

1,110,708

 

 

$

1,209,498

 

 

 

 

 

 

UPB of loans underlying CRT arrangements

$

21,249,304

 

 

$

23,152,230

 

Collection status (UPB):

 

 

 

Delinquency

 

 

 

 

 

Current

$

20,628,148

 

 

$

22,531,905

 

30-89 days delinquent

$

414,605

 

 

$

411,991

 

90-180 days delinquent

$

131,191

 

 

$

120,011

 

180 or more days delinquent

$

51,343

 

 

$

64,647

 

Foreclosure

$

24,017

 

 

$

23,676

 

Bankruptcy

$

63,697

 

 

$

58,696

 

 

(1)
Deposits securing credit risk transfer strip liabilities also secure $4.1 million and $46.7 million in CRT strip liabilities at December 31, 2024 and December 31, 2023, respectively.

Subordinate Mortgage-Backed Securities

The Company retains or purchases subordinate MBS in transactions sponsored by PMC or a nonaffiliate. Cash inflows from the loans underlying these securities are distributed to investors and service providers in accordance with the respective securities' contractual priorities of payments and, as such, most of these inflows must be directed first to service and repay the senior securities.

The rights of holders of subordinate securities to receive distributions of principal and/or interest, as applicable, are subordinate to the rights of holders of senior securities. After the senior securities are repaid, substantially all cash inflows will be directed to the subordinate securities, including those held by the Company, until they are fully repaid.

The Company’s retention or purchase of subordinate MBS exposes PMT to the credit risk in the underlying loans because the Company’s investments are among the first beneficial interests to absorb credit losses on those assets. The Company’s exposure to losses from its investments in subordinate MBS is limited to its recorded investment in such securities.

The Company has concluded that the trusts holding the assets underlying these transactions are VIEs. The Company also has concluded that it is the primary beneficiary of certain of the VIEs as it has the power, through PLS, in its role as the servicer or sub-servicer of the underlying loans, to direct the activities of the trusts that most significantly impact the trusts’ economic performance and, as a holder of subordinate securities, that PMT is exposed to losses that could potentially be significant to the VIEs. Therefore, PMT consolidates those VIEs.

The Company recognizes the interest income earned on the loans owned by the VIEs and the interest expense attributable to the asset-backed securities issued to nonaffiliates by the VIEs on its consolidated statements of operations.

Following is a summary of the Company’s investment in subordinate MBS backed by assets held in consolidated VIEs:

 

 

Year ended December 31,

 

 

2024

 

 

2023

 

 

2022

 

 

(in thousands)

 

Net investment income:

 

 

 

 

 

 

 

 

Net gains (losses) on investments and financings:

 

 

 

 

 

 

 

 

Loans at fair value

$

15,637

 

 

$

17,876

 

 

$

(301,164

)

Asset-backed financings at fair value

 

(7,396

)

 

 

(13,678

)

 

 

283,586

 

Interest income

 

58,720

 

 

 

56,833

 

 

 

59,263

 

Interest expense

 

55,763

 

 

 

49,988

 

 

 

53,570

 

 

$

11,198

 

 

$

11,043

 

 

$

(11,885

)

 

 

December 31, 2024

 

 

December 31, 2023

 

 

(in thousands)

 

Loans at fair value

$

2,191,709

 

 

$

1,431,689

 

Asset-backed financings at fair value

$

2,040,375

 

 

$

1,336,731

 

Retained subordinate MBS at fair value pledged to
   secure Assets sold under agreements to repurchase

$

130,839

 

 

$

85,344

 

Financing of Mortgage Servicing Assets

The Company entered into financing transactions in which it pledged participation interests in its MSRs to VIEs which issued variable funding notes, term notes and term loans backed by beneficial interests in Fannie Mae MSRs. The Company holds and acts as guarantor of the variable funding notes, term notes and term loans. The Company determined that it is the primary beneficiary of the VIEs because, as the holder of the variable funding notes and issuer of performance guarantees, it holds the variable interests in the VIEs. Therefore, the Company consolidates the VIEs.

For financial reporting purposes, the MSRs financed by the consolidated VIEs are included in Mortgage servicing rights at fair value, the variable funding notes sold under agreements to repurchase are included in Assets sold under agreements to repurchase and the term notes and term loans are included in Notes payable secured by credit risk transfer and mortgage servicing assets on the Company’s consolidated balance sheets. These financings are described in Note 15 – Long Term Debt.

v3.25.0.1
Fair Value
 12 Months Ended
Dec. 31, 2024
Fair Value Disclosures [Abstract]  
Fair Value

Note 7— Fair Value

Fair Value Accounting Elections

The Company identified all of PMT’s non-cash financial assets and MSRs to be accounted for at fair value. The Company has elected to account for these assets at fair value so such changes in fair value will be reflected in income as they occur and more timely reflect the results of the Company’s performance.

The Company has also identified its Asset-backed financings of variable interest entities at fair value and Interest-only security payable at fair value to be accounted for at fair value to reflect the generally offsetting changes in fair value of these borrowings to changes in fair value of the assets at fair value collateralizing these financings. For other borrowings, the Company has determined that historical cost accounting is more appropriate because under historical cost accounting, debt issuance costs are amortized over the term of the debt facility, thereby matching the debt issuance costs to the periods benefiting from the availability of the debt.

Financial Statement Items Measured at Fair Value on a Recurring Basis

Following is a summary of financial statement items that are measured at fair value on a recurring basis:

 

 

 

December 31, 2024

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

 

 

(in thousands)

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Short-term investments

 

$

103,198

 

 

$

—

 

 

$

—

 

 

$

103,198

 

Mortgage-backed securities at fair value

 

 

—

 

 

 

3,977,446

 

 

 

86,260

 

 

 

4,063,706

 

Loans acquired for sale at fair value

 

 

—

 

 

 

2,108,347

 

 

 

7,971

 

 

 

2,116,318

 

Loans at fair value

 

 

—

 

 

 

2,191,709

 

 

 

1,866

 

 

 

2,193,575

 

Derivative assets:

 

 

 

 

 

 

 

 

 

 

 

 

Call options on interest rate futures purchase contracts

 

 

156

 

 

 

—

 

 

 

—

 

 

 

156

 

Put options on interest rate futures purchase contracts

 

 

6,372

 

 

 

—

 

 

 

—

 

 

 

6,372

 

Forward purchase contracts

 

 

—

 

 

 

614

 

 

 

—

 

 

 

614

 

Forward sale contracts

 

 

—

 

 

 

54,056

 

 

 

—

 

 

 

54,056

 

MBS put options

 

 

—

 

 

 

2,114

 

 

 

—

 

 

 

2,114

 

CRT derivatives

 

 

—

 

 

 

—

 

 

 

29,377

 

 

 

29,377

 

Interest rate lock commitments

 

 

—

 

 

 

—

 

 

 

3,562

 

 

 

3,562

 

Total derivative assets before netting

 

 

6,528

 

 

 

56,784

 

 

 

32,939

 

 

 

96,251

 

Netting

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(39,411

)

Total derivative assets after netting

 

 

6,528

 

 

 

56,784

 

 

 

32,939

 

 

 

56,840

 

Mortgage servicing rights at fair value

 

 

—

 

 

 

—

 

 

 

3,867,394

 

 

 

3,867,394

 

 

$

109,726

 

 

$

8,334,286

 

 

$

3,996,430

 

 

$

12,401,031

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Asset-backed financings of the variable interest entities
   at fair value

 

$

—

 

 

$

2,040,375

 

 

$

—

 

 

$

2,040,375

 

Interest-only security payable at fair value

 

 

—

 

 

 

—

 

 

 

34,222

 

 

 

34,222

 

Derivative and credit risk transfer strip liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Forward purchase contracts

 

 

—

 

 

 

6,336

 

 

 

—

 

 

 

6,336

 

Forward sales contracts

 

 

—

 

 

 

1,753

 

 

 

—

 

 

 

1,753

 

Interest rate lock commitments

 

 

—

 

 

 

—

 

 

 

3,118

 

 

 

3,118

 

Total derivative liabilities before netting

 

 

—

 

 

 

8,089

 

 

 

3,118

 

 

 

11,207

 

Netting

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(7,916

)

Total derivative liabilities after netting

 

 

—

 

 

 

8,089

 

 

 

3,118

 

 

 

3,291

 

Credit risk transfer strips

 

 

—

 

 

 

—

 

 

 

4,060

 

 

 

4,060

 

Total derivative and credit risk transfer strip liabilities

 

 

—

 

 

 

8,089

 

 

 

7,178

 

 

 

7,351

 

 

$

—

 

 

$

2,048,464

 

 

$

41,400

 

 

$

2,081,948

 

 

 

 

 

December 31, 2023

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

 

 

(in thousands)

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Short-term investments

 

$

128,338

 

 

$

—

 

 

$

—

 

 

$

128,338

 

Mortgage-backed securities at fair value

 

 

—

 

 

 

4,742,061

 

 

 

94,231

 

 

 

4,836,292

 

Loans acquired for sale at fair value

 

 

—

 

 

 

662,700

 

 

 

6,318

 

 

 

669,018

 

Loans at fair value

 

 

—

 

 

 

1,431,689

 

 

 

2,131

 

 

 

1,433,820

 

Derivative assets:

 

 

 

 

 

 

 

 

 

 

 

 

Call options on interest rate futures purchase contracts

 

 

41,712

 

 

 

—

 

 

 

—

 

 

 

41,712

 

Put options on interest rate futures purchase contracts

 

 

4,324

 

 

 

—

 

 

 

—

 

 

 

4,324

 

Forward purchase contracts

 

 

—

 

 

 

15,905

 

 

 

—

 

 

 

15,905

 

Forward sale contracts

 

 

—

 

 

 

671

 

 

 

—

 

 

 

671

 

MBS call options

 

 

—

 

 

 

3,218

 

 

 

—

 

 

 

3,218

 

MBS put options

 

 

—

 

 

 

5

 

 

 

—

 

 

 

5

 

CRT derivatives

 

 

—

 

 

 

—

 

 

 

16,160

 

 

 

16,160

 

Interest rate lock commitments

 

 

—

 

 

 

—

 

 

 

7,596

 

 

 

7,596

 

Total derivative assets before netting

 

 

46,036

 

 

 

19,799

 

 

 

23,756

 

 

 

89,591

 

Netting

 

 

—

 

 

 

—

 

 

 

—

 

 

 

88,393

 

Total derivative assets after netting

 

 

46,036

 

 

 

19,799

 

 

 

23,756

 

 

 

177,984

 

Mortgage servicing rights at fair value

 

 

—

 

 

 

—

 

 

 

3,919,107

 

 

 

3,919,107

 

 

$

174,374

 

 

$

6,856,249

 

 

$

4,045,543

 

 

$

11,164,559

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Asset-backed financings of the variable interest entities
   at fair value

 

$

—

 

 

$

1,336,731

 

 

$

—

 

 

$

1,336,731

 

Interest-only security payable at fair value

 

 

—

 

 

 

—

 

 

 

32,667

 

 

 

32,667

 

Derivative liabilities and credit risk transfer strips:

 

 

 

 

 

 

 

 

 

 

 

 

Call options on interest rate futures purchase contracts

 

 

2,005

 

 

 

—

 

 

 

—

 

 

 

2,005

 

Call options on interest rate futures sell contracts

 

 

1,328

 

 

 

—

 

 

 

—

 

 

 

1,328

 

Forward purchase contracts

 

 

—

 

 

 

490

 

 

 

—

 

 

 

490

 

Forward sales contracts

 

 

—

 

 

 

50,363

 

 

 

—

 

 

 

50,363

 

Interest rate lock commitments

 

 

—

 

 

 

—

 

 

 

64

 

 

 

64

 

Total derivative liabilities before netting

 

 

3,333

 

 

 

50,853

 

 

 

64

 

 

 

54,250

 

Netting

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(49,561

)

Total derivative liabilities after netting

 

 

3,333

 

 

 

50,853

 

 

 

64

 

 

 

4,689

 

Credit risk transfer strips

 

 

—

 

 

 

—

 

 

 

46,692

 

 

 

46,692

 

Total derivative and credit risk transfer strip liabilities

 

 

3,333

 

 

 

50,853

 

 

 

46,756

 

 

 

51,381

 

 

$

3,333

 

 

$

1,387,584

 

 

$

79,423

 

 

$

1,420,779

 

 

The following is a summary of changes in items measured at fair value on a recurring basis using Level 3 inputs that are significant to the estimation of the fair values of the assets and liabilities at either the beginning or end of the years presented:

 

 

 

Year ended December 31, 2024

 

Assets (1)

 

Interest-only stripped mortgage-backed securities

 

 

Loans
acquired
for sale

 

 

Loans at
fair
value

 

 

CRT
derivatives

 

 

Interest rate
lock
commitments

 

 

CRT
strips

 

 

Mortgage
servicing
rights

 

 

Total

 

 

 

(in thousands)

 

Balance, December 31, 2023

 

$

94,231

 

 

$

6,318

 

 

$

2,131

 

 

$

16,160

 

 

$

7,532

 

 

$

(46,692

)

 

$

3,919,107

 

 

$

3,998,787

 

Purchases and issuances

 

 

—

 

 

 

8,132

 

 

 

—

 

 

 

—

 

 

 

38,086

 

 

 

—

 

 

 

29,429

 

 

 

75,647

 

Repayments and sales

 

 

(149,983

)

 

 

(6,139

)

 

 

(144

)

 

 

(13,803

)

 

 

—

 

 

 

(45,573

)

 

 

—

 

 

 

(215,642

)

Accrual of unearned discounts

 

 

9,093

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

9,093

 

Amounts received pursuant to sales
   of loans

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

219,001

 

 

 

219,001

 

Changes in fair value included in
income arising from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Changes in instrument - specific
   credit risk

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Other factors

 

 

2,624

 

 

 

(340

)

 

 

(121

)

 

 

27,020

 

 

 

(10,882

)

 

 

88,205

 

 

 

(170,409

)

 

 

(63,903

)

 

 

2,624

 

 

 

(340

)

 

 

(121

)

 

 

27,020

 

 

 

(10,882

)

 

 

88,205

 

 

 

(170,409

)

 

 

(63,903

)

Exchange of mortgage servicing spread
    for interest-only stripped mortgage
   -backed securities

 

 

130,295

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(130,295

)

 

 

—

 

Transfers of:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate lock commitments to
   loans acquired for sale (2)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(34,292

)

 

 

—

 

 

 

—

 

 

 

(34,292

)

Mortgage servicing rights relating to
   delinquent loans to Agency

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

561

 

 

 

561

 

Balance, December 31, 2024

 

$

86,260

 

 

$

7,971

 

 

$

1,866

 

 

$

29,377

 

 

$

444

 

 

$

(4,060

)

 

$

3,867,394

 

 

$

3,989,252

 

Changes in fair value recognized during
the year relating to assets still held
at December 31, 2024

 

$

2,624

 

 

$

(261

)

 

$

(140

)

 

$

13,529

 

 

$

444

 

 

$

42,632

 

 

$

(173,271

)

 

$

(114,443

)

 

(1)
For the purpose of this table, CRT derivative, IRLC, and CRT strip asset and liability positions are shown net.
(2)
The Company had transfers among the fair value levels arising from transfers of IRLCs to loans acquired for sale at fair value upon purchase of the respective loans.

 

Liabilities

 

Year ended December 31, 2024

 

 

 

(in thousands)

 

Interest-only security payable:

 

 

 

Balance, December 31, 2023

 

$

32,667

 

Changes in fair value included in results of operations arising from:

 

 

 

Changes in instrument - specific credit risk

 

 

—

 

Other factors

 

 

1,555

 

 

 

1,555

 

Balance, December 31, 2024

 

$

34,222

 

Changes in fair value recognized during the year relating
to liability outstanding at December 31, 2024

 

$

1,555

 

 

 

 

 

Year ended December 31, 2023

 

Assets (1)

 

Interest-only stripped mortgage-backed securities

 

 

Loans
acquired
for sale

 

 

Loans at
fair
value

 

 

CRT
derivatives

 

 

Interest
rate lock
commitments

 

 

CRT strips

 

 

Mortgage
servicing
rights

 

 

Total

 

 

 

(in thousands)

 

Balance, December 31, 2022

 

$

—

 

 

$

10,708

 

 

$

3,457

 

 

$

(22,098

)

 

$

(478

)

 

$

(137,193

)

 

$

4,012,737

 

 

$

3,867,133

 

Purchases and issuances

 

 

—

 

 

 

7,151

 

 

 

119

 

 

 

—

 

 

 

4,591

 

 

 

—

 

 

 

16,258

 

 

 

28,119

 

Repayments and sales

 

 

(3,417

)

 

 

(11,291

)

 

 

(548

)

 

 

(18,286

)

 

 

—

 

 

 

(46,252

)

 

 

—

 

 

 

(79,794

)

Accrual of unearned discount

 

 

2,673

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2,673

 

Amounts received pursuant to sales
  of loans

 

 

—

 

 

 

(496

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

292,527

 

 

 

292,031

 

Changes in fair value included in
income arising from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Changes in instrument -
   specific credit risk

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Other factors

 

 

(8,572

)

 

 

246

 

 

 

(437

)

 

 

56,544

 

 

 

15,205

 

 

 

136,753

 

 

 

(296,847

)

 

 

(97,108

)

 

 

(8,572

)

 

 

246

 

 

 

(437

)

 

 

56,544

 

 

 

15,205

 

 

 

136,753

 

 

 

(296,847

)

 

 

(97,108

)

Exchange of mortgage servicing
   spread for interest-only stripped
   mortgage-backed securities

 

 

103,547

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(105,096

)

 

 

(1,549

)

Transfers of:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

—

 

Loans to REO

 

 

—

 

 

 

—

 

 

 

(460

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(460

)

Interest rate lock commitments
  to loans acquired for sale (2)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(11,786

)

 

 

—

 

 

 

—

 

 

 

(11,786

)

Mortgage servicing rights relating to
   delinquent loans to Agency

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(472

)

 

 

(472

)

Balance, December 31, 2023

 

$

94,231

 

 

$

6,318

 

 

$

2,131

 

 

$

16,160

 

 

$

7,532

 

 

$

(46,692

)

 

$

3,919,107

 

 

$

3,998,787

 

Changes in fair value recognized
during the year relating to assets
still held at December 31, 2023

 

$

(8,572

)

 

$

(21

)

 

$

(964

)

 

$

38,020

 

 

$

7,532

 

 

$

90,501

 

 

$

(296,847

)

 

$

(170,351

)

 

(1)
For the purpose of this table, CRT derivative, IRLC, and CRT strip asset and liability positions are shown net.
(2)
The Company had transfers among the fair value levels arising from transfers of IRLCs to loans acquired for sale at fair value upon purchase of the respective loans.

 

Liabilities

 

Year ended December 31, 2023

 

 

 

(in thousands)

 

Interest-only security payable:

 

 

 

Balance, December 31, 2022

 

$

21,925

 

Changes in fair value included in results of operations arising from:

 

 

 

Changes in instrument - specific credit risk

 

 

—

 

Other factors

 

 

10,742

 

 

 

10,742

 

Balance, December 31, 2023

 

$

32,667

 

Changes in fair value recognized during the year relating
to liability outstanding at December 31, 2023

 

$

10,742

 

 

 

 

Year ended December 31, 2022

 

 

 

Assets (1)

 

Loans
acquired
for sale

 

 

Loans at
fair
value

 

 

CRT
derivatives

 

 

Interest
rate lock
commitments

 

 

CRT
strips

 

 

Mortgage
servicing
rights

 

 

Total

 

 

 

 

 

(in thousands)

 

 

 

Balance, December 31, 2021

 

$

30,129

 

 

$

4,161

 

 

$

18,964

 

 

$

2,451

 

 

$

(26,837

)

 

$

2,892,855

 

 

$

2,921,723

 

 

 

Purchases and issuances

 

 

13,619

 

 

 

—

 

 

 

—

 

 

 

(87,393

)

 

 

—

 

 

 

—

 

 

 

(73,774

)

 

 

Repayments and sales

 

 

(29,674

)

 

 

(1,390

)

 

 

(37,224

)

 

 

—

 

 

 

(60,389

)

 

 

—

 

 

 

(128,677

)

 

 

Amounts received pursuant to sales
  of loans

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

670,343

 

 

 

670,343

 

 

 

Changes in fair value included in
income arising from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Changes in instrument -
   specific credit risk

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

Other factors

 

 

(3,366

)

 

 

686

 

 

 

(3,838

)

 

 

(234,146

)

 

 

(49,967

)

 

 

449,435

 

 

 

158,804

 

 

 

 

 

(3,366

)

 

 

686

 

 

 

(3,838

)

 

 

(234,146

)

 

 

(49,967

)

 

 

449,435

 

 

 

158,804

 

 

 

Transfers of:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate lock commitments
   to loans acquired for sale (2)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

318,610

 

 

 

—

 

 

 

—

 

 

 

318,610

 

 

 

Mortgage servicing rights relating to
   delinquent loans to Agency

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

104

 

 

 

104

 

 

 

Balance, December 31, 2022

 

$

10,708

 

 

$

3,457

 

 

$

(22,098

)

 

$

(478

)

 

$

(137,193

)

 

$

4,012,737

 

 

$

3,867,133

 

 

 

Changes in fair value recognized during
the year relating to assets still held at
December 31, 2022

 

$

(1,098

)

 

$

196

 

 

$

(42,220

)

 

$

(478

)

 

$

(110,356

)

 

$

449,435

 

 

$

295,479

 

 

 

 

(1)
For the purpose of this table, CRT derivative, IRLC, and CRT strip asset and liability positions are shown net.
(2)
The Company had transfers among the fair value levels arising from transfers of IRLCs to loans acquired for sale at fair value upon purchase of the respective loans.

 

 

Liabilities

 

Year ended December 31, 2022

 

 

 

(in thousands)

 

Interest-only security payable:

 

 

 

Balance, December 31, 2021

 

$

10,593

 

Changes in fair value included in results of operations arising from:

 

 

 

Changes in instrument-specific credit risk

 

 

—

 

Other factors

 

 

11,332

 

 

 

11,332

 

Balance, December 31, 2022

 

$

21,925

 

Changes in fair value recognized during the year relating
    to liability outstanding at December 31, 2022

 

$

11,332

 

 

 

Financial Statement Items Measured at Fair Value under the Fair Value Option

Following are the fair values and related principal amounts due upon maturity of loans accounted for under the fair value option (including loans acquired for sale, loans held in consolidated VIEs, and distressed loans):

 

 

 

December 31, 2024

 

 

December 31, 2023

 

 

 

Fair value

 

 

Principal
amount due
upon maturity

 

 

Difference

 

 

Fair value

 

 

Principal
amount due
upon maturity

 

 

Difference

 

 

 

(in thousands)

 

Loans acquired for sale at fair value:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current through 89 days delinquent

 

$

2,114,556

 

 

$

2,092,030

 

 

$

22,526

 

 

$

667,857

 

 

$

648,283

 

 

$

19,574

 

90 or more days delinquent:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Not in foreclosure

 

 

1,687

 

 

 

2,114

 

 

 

(427

)

 

 

433

 

 

 

617

 

 

 

(184

)

In foreclosure

 

 

75

 

 

 

96

 

 

 

(21

)

 

 

728

 

 

 

845

 

 

 

(117

)

 

 

1,762

 

 

 

2,210

 

 

 

(448

)

 

 

1,161

 

 

 

1,462

 

 

 

(301

)

 

$

2,116,318

 

 

$

2,094,240

 

 

$

22,078

 

 

$

669,018

 

 

$

649,745

 

 

$

19,273

 

Loans at fair value:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Held in consolidated VIEs:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current through 89 days delinquent

 

$

2,190,432

 

 

$

2,413,214

 

 

$

(222,782

)

 

$

1,430,427

 

 

$

1,697,305

 

 

$

(266,878

)

90 or more days delinquent:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Not in foreclosure

 

 

1,277

 

 

 

1,658

 

 

 

(381

)

 

 

1,262

 

 

 

1,582

 

 

 

(320

)

In foreclosure

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,277

 

 

 

1,658

 

 

 

(381

)

 

 

1,262

 

 

 

1,582

 

 

 

(320

)

 

 

2,191,709

 

 

 

2,414,872

 

 

 

(223,163

)

 

 

1,431,689

 

 

 

1,698,887

 

 

 

(267,198

)

Distressed:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current through 89 days delinquent

 

 

445

 

 

 

595

 

 

 

(150

)

 

 

569

 

 

 

728

 

 

 

(159

)

90 or more days delinquent:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Not in foreclosure

 

 

1,421

 

 

 

3,796

 

 

 

(2,375

)

 

 

393

 

 

 

2,023

 

 

 

(1,630

)

In foreclosure

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,169

 

 

 

2,546

 

 

 

(1,377

)

 

 

1,421

 

 

 

3,796

 

 

 

(2,375

)

 

 

1,562

 

 

 

4,569

 

 

 

(3,007

)

 

 

1,866

 

 

 

4,391

 

 

 

(2,525

)

 

 

2,131

 

 

 

5,297

 

 

 

(3,166

)

 

$

2,193,575

 

 

$

2,419,263

 

 

$

(225,688

)

 

$

1,433,820

 

 

$

1,704,184

 

 

$

(270,364

)

 

Following are the changes in fair value included in current year results of operations by consolidated statement of operations line item for financial statement items accounted for under the fair value option:

 

 

 

Year ended December 31, 2024

 

 

 

Net loan
servicing fees

 

 

Net gains on loans acquired
for sale

 

 

Net gains (losses) on investments and financings

 

 

Net interest
expense

 

 

Total

 

 

 

(in thousands)

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage-backed securities at fair value

 

$

—

 

 

$

—

 

 

$

(80,838

)

 

$

28,773

 

 

$

(52,065

)

Loans acquired for sale at fair value

 

 

—

 

 

 

24,457

 

 

 

—

 

 

 

—

 

 

 

24,457

 

Loans at fair value

 

 

—

 

 

 

—

 

 

 

15,516

 

 

 

(1,808

)

 

 

13,708

 

Credit risk transfer strips at fair value

 

 

—

 

 

 

—

 

 

 

88,205

 

 

 

—

 

 

 

88,205

 

MSRs at fair value

 

 

(170,409

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(170,409

)

 

$

(170,409

)

 

$

24,457

 

 

$

22,883

 

 

$

26,965

 

 

$

(96,104

)

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-only security payable at fair value

 

$

—

 

 

$

—

 

 

$

(1,555

)

 

$

—

 

 

$

(1,555

)

Asset-backed financings at fair value

 

 

—

 

 

 

—

 

 

 

(7,396

)

 

 

(3,653

)

 

 

(11,049

)

 

$

—

 

 

$

—

 

 

$

(8,951

)

 

$

(3,653

)

 

$

(12,604

)

 

 

 

 

Year ended December 31, 2023

 

 

 

Net loan
servicing fees

 

 

Net gains on loans acquired
for sale

 

 

Net gains (losses) on investments and financings

 

 

Net interest
expense

 

 

Total

 

 

 

(in thousands)

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage-backed securities at fair value

 

$

—

 

 

$

—

 

 

$

74,984

 

 

$

1,986

 

 

$

76,970

 

Loans acquired for sale at fair value

 

 

—

 

 

 

15,025

 

 

 

—

 

 

 

—

 

 

 

15,025

 

Loans at fair value

 

 

—

 

 

 

—

 

 

 

17,439

 

 

 

(2,127

)

 

 

15,312

 

Credit risk transfer strips at fair value

 

 

—

 

 

 

—

 

 

 

136,753

 

 

 

—

 

 

 

136,753

 

MSRs at fair value

 

 

(296,847

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(296,847

)

 

$

(296,847

)

 

$

15,025

 

 

$

229,176

 

 

$

(141

)

 

$

(52,787

)

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-only security payable at fair value

 

$

—

 

 

$

—

 

 

$

(10,742

)

 

$

—

 

 

$

(10,742

)

Asset-backed financings at fair value

 

 

—

 

 

 

—

 

 

 

(13,678

)

 

 

(496

)

 

 

(14,174

)

 

$

—

 

 

$

—

 

 

$

(24,420

)

 

$

(496

)

 

$

(24,916

)

 

 

 

Year ended December 31, 2022

 

 

 

Net loan
servicing fees

 

 

Net gains on loans acquired
 for sale

 

 

Net gains (losses) on investments and financings

 

 

Net interest
expense

 

 

Total

 

 

 

(in thousands)

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage-backed securities at fair value

 

$

—

 

 

$

—

 

 

$

(576,758

)

 

$

12,697

 

 

$

(564,061

)

Loans acquired for sale at fair value

 

 

—

 

 

 

(539,102

)

 

 

—

 

 

 

—

 

 

 

(539,102

)

Loans at fair value

 

 

—

 

 

 

—

 

 

 

(300,478

)

 

 

(1,109

)

 

 

(301,587

)

Credit risk transfer strips at fair value

 

 

—

 

 

 

—

 

 

 

(49,967

)

 

 

—

 

 

 

(49,967

)

MSRs at fair value

 

 

449,435

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

449,435

 

 

$

449,435

 

 

$

(539,102

)

 

$

(927,203

)

 

$

11,588

 

 

$

(1,005,282

)

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-only security payable at fair value

 

$

—

 

 

$

—

 

 

$

(11,332

)

 

$

—

 

 

$

(11,332

)

Asset-backed financings at fair value

 

 

—

 

 

 

—

 

 

 

283,586

 

 

 

1,773

 

 

 

285,359

 

 

$

—

 

 

$

—

 

 

$

272,254

 

 

$

1,773

 

 

$

274,027

 

 

Financial Statement Item Measured at Fair Value on a Nonrecurring Basis

Following is a summary of the carrying value of assets that were remeasured during the year based on fair value on a nonrecurring basis:

 

Real estate acquired in settlement of loans

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

 

 

(in thousands)

 

December 31, 2024

 

$

—

 

 

$

—

 

 

$

532

 

 

$

532

 

December 31, 2023

 

$

—

 

 

$

—

 

 

$

753

 

 

$

753

 

 

The following table summarizes the fair value changes recognized during the years on assets held at year end that were remeasured at fair value on a nonrecurring basis:

 

 

 

Year ended December 31,

 

 

 

2024

 

 

2023

 

 

2022

 

 

 

(in thousands)

 

Real estate acquired in settlement of loans

 

$

(348

)

 

$

(223

)

 

$

(505

)

 

The Company remeasures its REO based on fair value when it evaluates the REO properties for impairment. The Company evaluates its REO for impairment with reference to the respective properties’ fair values less costs to sell. REO may be revalued after acquisition due to the Company receiving greater access to the property, the property being held for an extended period or receiving indications that the property’s fair value may not be supported by developing market conditions. Any subsequent change in fair value to a level that is less than or equal to the property’s cost is recognized in Results of real estate acquired in settlement of loans in the Company’s consolidated statements of operations.

Fair Value of Financial Instruments Carried at Amortized Cost

Most of the Company’s borrowings are carried at amortized cost. The Company’s Assets sold under agreements to repurchase, Mortgage loan participation purchase and sale agreements, Notes payable secured by credit risk transfer and mortgage servicing assets and the Exchangeable Notes, defined in Note 15 – Long-Term Debt, are classified as “Level 3” fair value liabilities due to the Company’s reliance on unobservable inputs to estimate these instruments’ fair values. The Company classifies the 2028 Senior Notes, defined in Note 15 – Long-Term Debt, as “Level 2” fair value liabilities.

The Company has concluded that the fair values of these borrowings other than term notes and term loans included in Notes payable secured by credit risk transfer and mortgage servicing assets and the Unsecured senior notes approximate the agreements’ carrying values due to the borrowing agreements’ variable interest rates and short maturities.

The Company estimates the fair values of the term notes and term loans included in Notes payable secured by credit risk transfer and mortgage servicing assets using indications of fair value provided by nonaffiliate brokers for the term notes, internal estimates of fair value for the term loans, and pricing services for the Unsecured senior notes. The fair values and carrying values of these liabilities are summarized below:

 

 

 

December 31, 2024

 

 

December 31, 2023

 

Instrument

 

Carrying value

 

 

Fair value

 

 

Carrying value

 

 

Fair value

 

 

 

(in thousands)

 

Notes payable secured by credit risk transfer
    and mortgage servicing assets

 

$

2,929,790

 

 

$

2,944,956

 

 

$

2,910,605

 

 

$

2,904,678

 

Unsecured senior notes

 

$

605,860

 

 

$

606,185

 

 

$

600,458

 

 

$

580,090

 

Valuation Governance

Most of the Company’s assets, its Asset-backed financings of variable interest entities at fair value, Interest-only security payable at fair value and Derivative and credit risk transfer strip liabilities at fair value are carried at fair value with changes in fair value recognized in current period results of operations. A substantial portion of these items are “Level 3” fair value assets and liabilities which require the use of unobservable inputs that are significant to the estimation of the fair values of the assets and liabilities. 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 responsibility for estimating the fair values of these assets and liabilities to specialized staff within PFSI's capital markets group and subjects the valuation process to significant senior management oversight.

With respect to “Level 3” valuations other than IRLCs, the capital markets valuation staff reports to PFSI’s senior management valuation subcommittee, which oversees the valuations. The capital markets valuation staff monitors the models used for valuation of the Company’s “Level 3” fair value assets and liabilities other than IRLCs, including the models’ performance versus actual results, and reports those results to PFSI’s senior management valuation subcommittee. PFSI’s senior management valuation subcommittee includes the Company’s chief financial and investment officers as well as other senior members of PFSI’s finance, risk management and capital markets staffs.

The capital markets valuation staff is responsible for reporting to PFSI’s senior management valuation subcommittee 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 capital markets valuation staff presents an analysis of the effect on the valuation of changes to the significant inputs to the models and, for MSRs, comparisons of its estimates of fair value and key inputs to those procured from nonaffiliate brokers and published surveys.

The fair values of the Company’s IRLCs are developed by PFSI's capital markets risk management staff and are reviewed by its capital markets operations staff.

Valuation Techniques and Inputs

The following is a description of the techniques and inputs used in estimating the fair values of “Level 2” and “Level 3” fair value assets and liabilities:

Mortgage-Backed Securities

The Company’s categorization of its current holdings of MBS is based on whether the respective security is an IO stripped MBS:

•
The Company categorizes its current holdings of MBS other than IO stripped MBS as “Level 2” fair value assets. Fair value of these securities is established based on quoted market prices for the Company’s MBS holdings or similar securities.
•
The Company categorizes its current holdings of IO stripped MBS as “Level 3” fair value assets. The Company uses a discounted cash flow approach to estimate the fair values of its IO stripped MBS.

The key inputs used in the estimation of the fair value of IO stripped MBS include pricing spread (discount rate) and prepayment speed. Significant changes to those inputs in isolation may result in significant changes in the IO stripped MBS' fair value measurements. Changes in these key inputs are not directly related.

Following are the key inputs used in determining the fair value of IO stripped MBS:

 

 

 

December 31, 2024

 

 

December 31, 2023

 

Fair value (in thousands)

 

$

86,260

 

 

$

94,231

 

Key inputs (1)

 

 

 

 

 

 

Pricing spread (2)

 

 

 

 

 

 

Range

 

5.9% – 6.5%

 

 

5.1% – 5.1%

 

Weighted average

 

6.5%

 

 

5.1%

 

Annual total prepayment speed (3)

 

 

 

 

 

 

Range

 

9.4% – 10.2%

 

 

10.9% – 11.0%

 

Weighted average

 

9.4%

 

 

10.9%

 

Equivalent life (in years)

 

 

 

 

 

 

Range

 

4.6 – 8.0

 

 

4.7 – 7.2

 

Weighted average

 

7.9

 

 

7.1

 

 

(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 forward rate to develop periodic discount rates. The Company uses the pricing spread over a derived United States Treasury Securities (“Treasury”) yield curve for the purpose of discounting cash flows relating to IO stripped MBS.
(3)
Prepayment speed is measured using life total Conditional Prepayment Rate (“CPR”). Equivalent life is provided as supplementary information

Changes in the fair value of MBS are included in Net gains (losses) on investments and financings in the consolidated statements of operations.

Loans

Fair value of loans is estimated based on whether the loans are saleable into active markets:

•
Loans that are saleable into active markets, comprised of most of the Company’s loans acquired for sale at fair value and all of the loans at fair value held in VIEs, are categorized as “Level 2” fair value assets:
•
For loans acquired for sale, the fair values are established using the loans’ contracted selling prices, quoted market prices or market price equivalents.
•
For the loans at fair value held in VIEs, the quoted indications of fair value of all of the individual securities issued by the securitization trusts are used to derive fair values for the loans. The Company obtains indications of fair value from nonaffiliate brokers based on comparable securities and/or pricing services and validates the brokers’ or pricing services’ indications of fair value using pricing models and inputs the Company believes are similar to the pricing models and inputs used by other market participants. The Company adjusts the fair values received from brokers and/or pricing services to include the fair value of MSRs attributable to the loans included in the VIEs.
•
Loans that are not saleable into active markets, comprised of home equity lines of credit, previously sold loans that the Company repurchased pursuant to the representation and warranties it provided to the purchaser and distressed loans, are categorized as “Level 3” fair value assets:
•
Fair values for loans acquired for sale categorized as “Level 3” assets are estimated using a discounted cash flow approach or the loans' contracted selling prices when applicable. Inputs to the discounted cash flow model include current interest rates, payment statuses, property types, discount rates and forecasts of future interest rates, home prices, prepayment speeds, default speeds and loss severities.
•
Distressed loans’ fair values are estimated based on the fair value of the real estate collateralizing the loans.

Derivative and Credit Risk Transfer Strip Assets and Liabilities

CRT Derivatives

The Company categorizes CRT derivatives as “Level 3” fair value assets and liabilities. The fair values of CRT derivatives are based on indications of fair value provided to the Company by nonaffiliate brokers for the certificates representing the beneficial interests in the trusts holding the Deposits securing credit risk transfer arrangements pledged to creditors, the recourse obligations and the IO ownership interests. Together, the recourse obligation and the IO ownership interest comprise the CRT derivative. Fair values of the CRT derivatives are derived by deducting the balances of the Deposits securing credit risk transfer arrangements pledged to creditors from the fair values of the certificates.

The Company assesses the fair values it receives from nonaffiliate brokers using the discounted cash flow approach. The significant unobservable inputs used by the Company in its review and approval of the valuation of CRT derivatives are the discount rates, voluntary and involuntary prepayment speeds and the remaining loss expectations of the reference loans. Changes in fair value of CRT derivatives are included in Net gains (losses) on investments and financings in the consolidated statements of operations.

Following is a quantitative summary of key unobservable inputs used in the Company’s review and approval of broker-provided fair values for CRT derivatives:

 

 

 

December 31, 2024

 

 

December 31, 2023

 

 

 

(dollars in thousands)

 

Fair value

 

$

29,377

 

 

$

16,160

 

UPB of loans in reference pools

 

$

4,961,644

 

 

$

5,437,551

 

Key inputs (1)

 

 

 

 

 

 

Discount rate

 

 

 

 

 

 

Range

 

9.0% – 11.4%

 

 

9.0% – 9.7%

 

Weighted average

 

9.3%

 

 

9.6%

 

Voluntary prepayment speed (2)

 

 

 

 

 

 

Range

 

7.0% – 7.6%

 

 

6.9% – 7.6%

 

Weighted average

 

7.3%

 

 

7.4%

 

Involuntary prepayment speed (3)

 

 

 

 

 

 

Range

 

0.1% – 0.2%

 

 

0.2% – 0.8%

 

Weighted average

 

0.1%

 

 

0.3%

 

Remaining loss expectation

 

 

 

 

 

 

Range

 

0.0% – 0.2%

 

 

0.2% – 0.3%

 

Weighted average

 

0.1%

 

 

0.3%

 

 

(1)
Weighted average inputs are based on fair value amounts of the CRT arrangements, except for remaining loss expectation which is based on the UPB of the loans in the reference pools.
(2)
Voluntary prepayment speed is measured using life voluntary CPR.
(3)
Involuntary prepayment speed is measured using life involuntary CPR.

Interest Rate Lock Commitments

The Company categorizes IRLCs as “Level 3” fair value assets and liabilities. The Company estimates the fair values of IRLCs based on quoted Agency MBS prices, the probability that the loans will be purchased under the commitments (the “pull-through rate”) and the Company’s estimate of the fair values of the MSRs it expects to receive upon sale of the loans.

The significant unobservable inputs used in the fair value measurement of the Company’s IRLCs are the pull-through rates and the estimated MSRs attributed to the mortgage loans subject to the commitments. Significant changes in the pull-through rates or the MSR components of the IRLCs, in isolation, may result in a significant change in the IRLCs’ fair values. 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 an IRLC’s fair value, but also increase the pull-through rate for the loan principal and interest payment cash flow component that has decreased in fair value. Changes in fair value of IRLCs are included in Net gains on loans acquired for sale in the consolidated statements of operations.

Following is a quantitative summary of key unobservable inputs used in the valuation of IRLCs:

 

 

 

December 31, 2024

 

 

December 31, 2023

 

Fair value (in thousands) (1)

 

$

444

 

 

$

7,532

 

Committed amount (in thousands)

 

$

1,166,566

 

 

$

874,017

 

Key inputs (2)

 

 

 

 

 

 

Pull-through rate

 

 

 

 

 

 

Range

 

51.0% – 98.0%

 

 

50.0% - 98.0%

 

Weighted average

 

86.3%

 

 

82.5%

 

MSR fair value expressed as

 

 

 

 

 

 

Servicing fee multiple

 

 

 

 

 

 

Range

 

2.6 – 7.8

 

 

1.7 - 6.5

 

Weighted average

 

5.7

 

 

4.6

 

Percentage of unpaid principal balance

 

 

 

 

 

 

Range

 

0.6% – 2.7%

 

 

0.4% - 2.4%

 

Weighted average

 

1.9%

 

 

1.7%

 

 

(1)
For purposes 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 values of hedging derivatives are included in Net loan servicing fees – from nonaffiliates – Mortgage servicing rights hedging results, Net gains on loans acquired for sale, or Net gains (losses) on investments and financings, as applicable, in the consolidated statements of operations.

Credit Risk Transfer Strips

The Company categorizes CRT strips as “Level 3” fair value liabilities. The fair values of CRT strips are based on indications of fair value provided to the Company by nonaffiliate brokers for the securities representing the beneficial interests in the trusts holding the Deposits securing credit risk transfer arrangements pledged to creditors, the IO ownership interests and the recourse obligations. Together, the IO ownership interest and the recourse obligation comprise the CRT strip.

Fair values of the CRT strips are derived by deducting the balance of the Deposits securing credit risk transfer arrangements pledged to creditors from the indications of fair value of the securities provided by the nonaffiliate brokers.

The Company assesses the indications of fair value it receives from nonaffiliate brokers using the discounted cash flow approach. The significant unobservable inputs used by the Company in its review and approval of the valuation of the CRT strips are the discount rates, voluntary and involuntary prepayment speeds and the remaining loss expectations of the reference loans. Changes in fair value of CRT strips are included in Net gains (losses) on investments and financings in the consolidated statements of operations.

 

Following is a quantitative summary of key unobservable inputs used in the Company’s review and approval of the broker-provided fair values used to derive the fair value of the CRT strip liabilities:

 

 

 

December 31, 2024

 

 

December 31, 2023

 

 

 

(dollars in thousands)

 

Fair value

 

$

4,060

 

 

$

46,692

 

Unpaid principal balance of loans in the reference pools

 

$

16,287,660

 

 

$

17,714,679

 

Key inputs (1)

 

 

 

 

 

 

Discount rate

 

 

 

 

 

 

Range

 

7.1% – 9.1%

 

 

7.9% – 9.6%

 

Weighted average

 

8.8%

 

 

9.4%

 

Voluntary prepayment speed (2)

 

 

 

 

 

 

Range

 

6.9% – 7.5%

 

 

6.6% – 8.2%

 

Weighted average

 

7.0%

 

 

6.8%

 

Involuntary prepayment speed (3)

 

 

 

 

 

 

Range

 

0.1% – 0.3%

 

 

0.2% – 0.3%

 

Weighted average

 

0.1%

 

 

0.2%

 

Remaining loss expectation

 

 

 

 

 

 

Range

 

0.4% – 1.5%

 

 

0.5% – 1.6%

 

Weighted average

 

0.5%

 

 

0.6%

 

 

(1)
Weighted average inputs are based on fair value amounts of the CRT arrangements, except for remaining loss expectation which is based on the UPB of the loans in the reference pools.
(2)
Voluntary prepayment speed is measured using life voluntary CPR.
(3)
Involuntary prepayment speed is measured using life involuntary CPR.

Mortgage Servicing Rights

The Company categorizes MSRs as “Level 3” fair value assets. The Company uses a discounted cash flow approach to estimate the fair values of MSRs. The fair values of MSRs are derived from the net positive cash flows associated with the servicing agreements. The Company receives a servicing fee based on the remaining UPB of the loans subject to the servicing agreements and generally has the right to receive other remuneration including various mortgagor-contracted fees such as late charges and collateral reconveyance charges, and is generally entitled to retain any placement fees earned on certain custodial funds held pending remittance of mortgagor principal, interest, tax and insurance payments.

The key inputs used in the estimation of the fair value of MSRs include the applicable pricing spreads (a component of the discount rate), the prepayment speeds of the underlying loans, and the annual per-loan costs to service the loans, all of which are unobservable. Significant changes to any of those inputs in isolation could result in significant changes in the MSR fair value measurements. Changes in these key inputs are not directly related. Changes in the fair value of MSRs are included in Net loan servicing fees – From nonaffiliates – Change in fair value of mortgage servicing rights in the consolidated statements of operations.

MSRs are generally subject to loss in fair value when prepayment speed expectations and experience increase, when returns required by market participants (pricing spreads) increase, or when annual per-loan costs of servicing increase. Reductions in the fair value of MSRs affect income primarily through recognition of the change in fair value.

Following are the key inputs used in determining the fair value of MSRs at the time of initial recognition:

 

 

Year ended December 31,

 

 

 

2024

 

 

2023

 

 

2022

 

MSRs recognized (in thousands)

 

$

219,001

 

 

$

292,527

 

 

$

670,343

 

Unpaid principal balance of underlying loans (in thousands)

 

$

12,240,231

 

 

$

15,966,491

 

 

$

39,014,110

 

Weighted average annual servicing fee rate (in basis points)

 

35

 

 

39

 

 

34

 

Key inputs (1)

 

 

 

 

 

 

 

 

 

Pricing spread (2)

 

 

 

 

 

 

 

 

 

Range

 

5.4% – 8.5%

 

 

5.5% – 8.8%

 

 

5.5% – 8.9%

 

Weighted average

 

5.6%

 

 

5.8%

 

 

6.3%

 

Prepayment speed (3)

 

 

 

 

 

 

 

 

 

Range

 

8.7% – 26.7%

 

 

10.1% – 22.7%

 

 

5.5% – 19.7%

 

Weighted average

 

12.2%

 

 

12.4%

 

 

9.3%

 

Equivalent average life (in years)

 

 

 

 

 

 

 

 

 

Range

 

3.4 – 8.1

 

 

2.8 - 7.2

 

 

4.0 – 9.6

 

Weighted average

 

6.9

 

 

6.8

 

 

8.0

 

Annual per-loan cost of servicing

 

 

 

 

 

 

 

 

 

Range

 

$68 – $87

 

 

$68 – $83

 

 

$73 – $81

 

Weighted average

 

$69

 

 

$70

 

 

$79

 

 

(1)
Weighted average inputs are based on UPB of the underlying loans.
(2)
The Company uses the pricing spread over a derived Treasury yield curve for the purpose of discounting cash flows relating to MSRs.
(3)
Prepayment speed is measured using life total CPR, which includes both voluntary and involuntary prepayments. Equivalent average life is provided as supplementary information.

Following is a quantitative summary of key inputs used in the valuation of MSRs as of the dates presented, and the effect on the fair value from adverse changes in those inputs:

 

 

 

December 31, 2024

 

 

December 31, 2023

 

Fair value (in thousands)

 

$

3,867,394

 

 

$

3,919,107

 

Unpaid principal balance of underlying loans (in thousands)

 

$

226,237,613

 

 

$

230,294,583

 

Weighted average annual servicing fee rate (in basis points)

 

27

 

 

28

 

Weighted average note interest rate

 

3.8%

 

 

3.7%

 

Key inputs (1)

 

 

 

 

 

 

Pricing spread (2)

 

 

 

 

 

 

Range

 

5.4% – 8.1%

 

 

5.5% – 8.5%

 

Weighted average

 

5.4%

 

 

5.5%

 

Effect on fair value (in thousands) of (3):

 

 

 

 

 

 

5% adverse change

 

$(47,568)

 

 

$(48,362)

 

10% adverse change

 

$(94,018)

 

 

$(95,575)

 

20% adverse change

 

$(183,710)

 

 

$(186,699)

 

Prepayment speed (4)

 

 

 

 

 

 

Range

 

6.5% – 17.7%

 

 

6.5% – 17.9%

 

Weighted average

 

6.7%

 

 

7.0%

 

Equivalent average life (in years)

 

 

 

 

 

 

Range

 

2.4 – 8.9

 

 

2.7 – 9.4

 

Weighted average

 

8.6

 

 

8.5

 

Effect on fair value (in thousands) of (3):

 

 

 

 

 

 

5% adverse change

 

$(51,798)

 

 

$(53,964)

 

10% adverse change

 

$(102,010)

 

 

$(106,144)

 

20% adverse change

 

$(197,970)

 

 

$(205,509)

 

Annual per-loan cost of servicing

 

 

 

 

 

 

Range

 

$69 – $89

 

 

$70 – $89

 

Weighted average

 

$69

 

 

$70

 

Effect on fair value (in thousands) of (3):

 

 

 

 

 

 

5% adverse change

 

$(16,645)

 

 

$(17,276)

 

10% adverse change

 

$(33,291)

 

 

$(34,551)

 

20% adverse change

 

$(66,582)

 

 

$(69,103)

 

 

(1)
Weighted-average inputs are based on the UPBs of the underlying loans.
(2)
The Company uses a pricing spread over a derived Treasury yield curve for the purpose of discounting cash flows relating to MSRs.
(3)
These sensitivity analyses are limited in that they were performed as of a particular date; only account for the estimated effect of the movements in the indicated inputs; do not incorporate changes in those inputs in relation to other inputs; are subject to the accuracy of the models and inputs used; and do not incorporate other factors that would affect the Company’s overall financial performance in such events, including operational adjustments to account for changing circumstances. For these reasons, these analyses should not be viewed as earnings forecasts.
(4)
Prepayment speed is measured using life total CPR, which includes both voluntary and involuntary prepayments. Equivalent average life is provided as supplementary information.

Real Estate Acquired in Settlement of Loans

REO is measured based on its fair value on a nonrecurring basis and is categorized as a “Level 3” fair value asset. Fair value of REO is established by using a current estimate of fair value from either a broker’s price opinion, a full appraisal, or the price given in a pending contract of sale.

REO fair values are reviewed by PLS staff appraisers when the Company obtains multiple indications of fair value and there is a significant difference between the indications of fair value. PLS staff appraisers will attempt to resolve the difference between the indications of fair value. In circumstances where the staff appraisers are not able to generate adequate data to support a fair value conclusion, the staff appraisers obtain an additional appraisal to determine fair value. Recognized changes in the fair value of REO are included in Results of real estate acquired in settlement of loans in the consolidated statements of operations.
v3.25.0.1
Mortgage-Backed Securities
 12 Months Ended
Dec. 31, 2024
Mortgage Backed Securities [Abstract]  
Mortgage-Backed Securities

Note 8— Mortgage-Backed Securities

Following is a summary of activity in the Company’s holdings of MBS:

 

 

 

Year ended December 31,

 

 

 

2024

 

 

2023

 

 

2022

 

 

(in thousands)

 

Balance at beginning of year

 

$

4,836,292

 

 

$

4,462,601

 

 

$

2,666,768

 

Purchases

 

 

638,155

 

 

 

3,172,193

 

 

 

3,718,093

 

Sales

 

 

(1,071,692

)

 

 

(2,629,540

)

 

 

(1,079,826

)

Repayments

 

 

(417,279

)

 

 

(349,479

)

 

 

(278,373

)

Exchange of mortgage servicing spread for interest-only
   stripped mortgage-backed securities

 

 

130,295

 

 

 

103,547

 

 

 

—

 

Changes in fair value included in income arising from:

 

 

 

 

 

 

 

 

 

Amortization and accrual of net purchase premiums and discounts

 

 

28,773

 

 

 

1,986

 

 

 

12,697

 

Valuation adjustments, net

 

 

(80,838

)

 

 

74,984

 

 

 

(576,758

)

 

 

(52,065

)

 

 

76,970

 

 

 

(564,061

)

Balance at end of year

 

$

4,063,706

 

 

$

4,836,292

 

 

$

4,462,601

 

 

 

 

December 31, 2024

 

 

December 31, 2023

 

 

 

(in thousands)

 

Fair value of mortgage-backed securities pledged to secure
    Assets sold under agreements to repurchase

 

$

4,063,706

 

 

$

4,836,292

 

 

Following is a summary of the Company’s investments in MBS:

 

 

 

December 31, 2024

 

Security type (1)

 

Principal
balance or notional amount

 

 

Unamortized
net purchase
premiums (discounts)

 

 

Cumulative
valuation
changes

 

 

Fair value

 

 

 

(in thousands)

 

Agency fixed-rate pass-through securities

 

$

3,132,005

 

 

$

(901

)

 

$

(51,612

)

 

$

3,079,492

 

Principal-only stripped securities

 

 

776,455

 

 

 

(160,960

)

 

 

(19,195

)

 

 

596,300

 

Subordinate credit-linked securities

 

 

174,813

 

 

 

(4,292

)

 

 

25,951

 

 

 

196,472

 

Senior non-Agency securities

 

 

111,479

 

 

 

(3,269

)

 

 

(3,028

)

 

 

105,182

 

 

$

4,194,752

 

 

$

(169,422

)

 

$

(47,884

)

 

 

3,977,446

 

Interest-only stripped securities

 

$

386,040

 

 

 

 

 

 

 

 

 

86,260

 

 

 

 

 

 

 

 

 

 

 

 

$

4,063,706

 

 

(1)
All MBS have maturities of more than ten years and are pledged to secure Assets sold under agreements to repurchase.

 

 

 

December 31, 2023

 

Security type (1)

 

Principal
balance or notional amount

 

 

Unamortized
net purchase
premiums (discounts)

 

 

Cumulative
valuation
changes

 

 

Fair value

 

 

 

(in thousands)

 

Agency fixed-rate pass-through securities

 

$

4,311,342

 

 

$

34

 

 

$

(41,320

)

 

$

4,270,056

 

Principal-only stripped securities

 

 

65,573

 

 

 

(18,567

)

 

 

6,330

 

 

 

53,336

 

Subordinate credit-linked securities

 

 

275,963

 

 

 

(3,633

)

 

 

28,850

 

 

 

301,180

 

Senior non-Agency securities

 

 

124,771

 

 

 

(3,567

)

 

 

(3,715

)

 

 

117,489

 

 

$

4,777,649

 

 

$

(25,733

)

 

$

(9,855

)

 

 

4,742,061

 

Interest-only stripped securities

 

$

419,791

 

 

 

 

 

 

 

 

 

94,231

 

 

 

 

 

 

 

 

 

 

 

$

4,836,292

 

 

(2)
All MBS have maturities of more than ten years and are pledged to secure Assets sold under agreements to repurchase.
v3.25.0.1
Loans Acquired for Sale at Fair Value
 12 Months Ended
Dec. 31, 2024
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Abstract]  
Loans Acquired for Sale at Fair Value

Note 9—Loans Acquired for Sale at Fair Value

Following is a summary of the distribution of the Company’s loans acquired for sale at fair value:

 

Loan type

 

December 31, 2024

 

 

December 31, 2023

 

 

 

(in thousands)

 

Held for sale to nonaffiliates—GSE eligible (1)

 

$

1,311,754

 

 

$

491,108

 

Held for sale to PLS

 

 

 

 

 

 

GSE eligible

 

 

175,145

 

 

 

62,234

 

Government insured or guaranteed

 

 

426,963

 

 

 

106,069

 

 

 

 

602,108

 

 

 

168,303

 

Jumbo

 

 

194,485

 

 

 

3,289

 

Home equity lines of credit

 

 

1,368

 

 

 

1,803

 

Repurchased pursuant to representations and warranties

 

 

6,603

 

 

 

4,515

 

 

$

2,116,318

 

 

$

669,018

 

Loans pledged to secure:

 

 

 

 

 

 

Assets sold under agreements to repurchase

 

$

2,075,473

 

 

$

659,751

 

Mortgage loan participation purchase and sale agreements

 

 

12,142

 

 

 

—

 

 

$

2,087,615

 

 

$

659,751

 

 

(1)
GSE eligibility refers to the eligibility of loans for sale to Fannie Mae or Freddie Mac. The Company sells or finances a portion of
its GSE eligible loan production to other investors, including PLS.
v3.25.0.1
Loans at Fair Value
 12 Months Ended
Dec. 31, 2024
Mortgage Loans At Fair Value [Abstract]  
Loans at Fair Value

Note 10—Loans at Fair Value

Loans at fair value are comprised primarily of loans held in VIEs securing asset-backed financings as described in Note 6 –Variable Interest Entities – Subordinate Mortgage-Backed Securities.

Following is a summary of the distribution of the Company’s loans at fair value:

 

Loan type

 

December 31, 2024

 

 

December 31, 2023

 

 

 

(in thousands)

 

Loans in VIEs:

 

 

 

 

 

 

Agency-conforming loans secured by non-owner occupied properties

 

$

2,146,328

 

 

$

1,383,392

 

Fixed interest rate jumbo loans

 

 

45,381

 

 

 

48,297

 

 

 

2,191,709

 

 

 

1,431,689

 

Distressed loans

 

 

1,866

 

 

 

2,131

 

 

$

2,193,575

 

 

$

1,433,820

 

Loans at fair value pledged to secure:

 

 

 

 

 

 

Asset-backed financings at fair value (1)

 

$

2,191,709

 

 

$

1,431,689

 

Assets sold under agreements to repurchase

 

 

160

 

 

 

207

 

 

$

2,191,869

 

 

$

1,431,896

 

 

(1)
As discussed in Note 6 ‒ Variable Interest Entities ‒ Subordinate Mortgage-Backed Securities, the Company holds a portion of the securities issued by the VIEs. At December 31, 2024 and December 31, 2023, $130.8 million and $85.3 million, respectively, of such retained securities were pledged to secure Assets sold under agreements to repurchase.
v3.25.0.1
Derivative and Credit Risk Transfer Strip Assets and Liabilities
 12 Months Ended
Dec. 31, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative and Credit Risk Transfer Strip Assets and Liabilities

Note 11—Derivative and Credit Risk Transfer Strip Assets and Liabilities

Derivative and credit risk transfer strip assets and liabilities are summarized below:

 

 

 

December 31, 2024

 

 

December 31, 2023

 

 

 

(in thousands)

 

Derivative assets

 

$

56,840

 

 

$

177,984

 

 

$

56,840

 

 

$

177,984

 

 

 

 

 

 

 

Derivative liabilities

 

$

3,291

 

 

$

4,689

 

Credit risk transfer strip liabilities

 

 

4,060

 

 

 

46,692

 

 

$

7,351

 

 

$

51,381

 

Derivative Notional Amounts and Fair Value of Derivatives

The Company had the following derivative assets and liabilities recorded within Derivative assets and Derivative and credit risk transfer liabilities at fair value and related margin deposits on the consolidated balance sheets:

 

 

 

December 31, 2024

 

 

December 31, 2023

 

 

 

 

 

 

Fair value

 

 

 

 

 

Fair value

 

 

 

Notional

 

 

Derivative

 

 

Derivative

 

 

Notional

 

 

Derivative

 

 

Derivative

 

Instrument

 

amount (1)

 

 

assets

 

 

liabilities

 

 

amount (1)

 

 

assets

 

 

liabilities

 

 

(in thousands)

 

Hedging derivatives subject to master netting arrangements (2):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Call options on interest rate futures purchase contracts

 

 

500,000

 

 

$

156

 

 

$

—

 

 

 

2,315,000

 

 

$

41,712

 

 

$

2,005

 

Put options on interest rate futures purchase contracts

 

 

1,690,000

 

 

 

6,372

 

 

 

—

 

 

 

2,900,000

 

 

 

4,324

 

 

 

—

 

Call options on interest rate futures sell contracts

 

 

—

 

 

 

—

 

 

 

—

 

 

 

500,000

 

 

 

—

 

 

 

1,328

 

Forward purchase contracts

 

 

1,154,515

 

 

 

614

 

 

 

6,336

 

 

 

2,789,324

 

 

 

15,905

 

 

 

490

 

Forward sale contracts

 

 

7,080,982

 

 

 

54,056

 

 

 

1,753

 

 

 

7,219,512

 

 

 

671

 

 

 

50,363

 

MBS call options

 

 

—

 

 

 

—

 

 

 

—

 

 

 

500,000

 

 

 

3,218

 

 

 

—

 

MBS put options

 

 

450,000

 

 

 

2,114

 

 

 

—

 

 

 

450,000

 

 

 

5

 

 

 

—

 

Bond futures

 

 

1,713,000

 

 

 

—

 

 

 

—

 

 

 

2,860,500

 

 

 

—

 

 

 

—

 

Swap futures

 

 

951,200

 

 

 

—

 

 

 

—

 

 

 

1,048,800

 

 

 

—

 

 

 

—

 

Other derivatives not subject to master netting arrangements:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CRT derivatives

 

 

4,961,644

 

 

 

29,377

 

 

 

—

 

 

 

5,437,551

 

 

 

16,160

 

 

 

—

 

Interest rate lock commitments

 

 

1,166,566

 

 

 

3,562

 

 

 

3,118

 

 

 

874,017

 

 

 

7,596

 

 

 

64

 

Total derivative instruments before netting

 

 

 

 

 

96,251

 

 

 

11,207

 

 

 

 

 

 

89,591

 

 

 

54,250

 

Netting

 

 

 

 

 

(39,411

)

 

 

(7,916

)

 

 

 

 

 

88,393

 

 

 

(49,561

)

 

 

 

 

$

56,840

 

 

$

3,291

 

 

 

 

 

$

177,984

 

 

$

4,689

 

Margin deposits (received from) placed
   with derivative counterparties included
   in derivative balances above, net

 

 

 

 

$

(31,497

)

 

 

 

 

 

 

 

$

137,955

 

 

 

 

Derivative assets pledged to secure:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Notes payable secured by credit risk transfer
   and mortgage servicing assets

 

 

 

 

$

29,377

 

 

 

 

 

 

 

 

$

16,160

 

 

 

 

 

(1)
Notional amounts provide an indication of the volume of the Company’s derivative activities.
(2)
All hedging derivatives are interest rate derivatives that are used as economic hedges.

Netting of Financial Instruments

The Company has elected to net derivative asset and liability positions, and cash collateral placed with or received from its counterparties when such positions are subject to legally enforceable master netting arrangements and the Company intends to set off. The derivative financial instruments that are not subject to master netting arrangements are CRT derivatives and IRLCs. As of December 31, 2024 and December 31, 2023, the Company was not a party to any reverse repurchase agreements or securities lending transactions that are required to be disclosed in the following tables.

Derivative Assets, Financial Instruments and Collateral Held by Counterparty

The following table summarizes by significant counterparty the amounts of derivative asset positions after considering master netting arrangements and financial instruments or cash pledged that do not meet the accounting guidance qualifying for setoff accounting.

 

 

 

December 31, 2024

 

 

December 31, 2023

 

 

 

Net amount

 

 

Gross amounts

 

 

 

 

 

Net amount

 

 

Gross amounts

 

 

 

 

 

 

of assets

 

 

not offset in the

 

 

 

 

 

of assets

 

 

not offset in the

 

 

 

 

 

 

presented

 

 

consolidated

 

 

 

 

 

presented

 

 

consolidated

 

 

 

 

 

 

in the

 

 

balance sheet

 

 

 

 

 

in the

 

 

balance sheet

 

 

 

 

 

 

consolidated

 

 

 

 

 

Cash

 

 

 

 

 

consolidated

 

 

 

 

 

Cash

 

 

 

 

 

 

balance

 

 

Financial

 

 

collateral

 

 

Net

 

 

balance

 

 

Financial

 

 

collateral

 

 

Net

 

Counterparty

 

sheet

 

 

instruments

 

 

received

 

 

amount

 

 

sheet

 

 

instruments

 

 

received

 

 

amount

 

 

 

(in thousands)

 

CRT derivatives

 

$

29,377

 

 

$

—

 

 

$

—

 

 

$

29,377

 

 

$

16,160

 

 

$

—

 

 

$

—

 

 

$

16,160

 

Interest rate lock commitments

 

 

3,562

 

 

 

—

 

 

 

—

 

 

 

3,562

 

 

 

7,596

 

 

 

—

 

 

 

—

 

 

 

7,596

 

Morgan Stanley & Co. LLC

 

 

9,303

 

 

 

—

 

 

 

—

 

 

 

9,303

 

 

 

79,825

 

 

 

—

 

 

 

—

 

 

 

79,825

 

RJ O’Brien & Associates, LLC

 

 

6,528

 

 

 

—

 

 

 

—

 

 

 

6,528

 

 

 

42,703

 

 

 

—

 

 

 

—

 

 

 

42,703

 

Bank of America, N.A.

 

 

3,150

 

 

 

—

 

 

 

—

 

 

 

3,150

 

 

 

3,418

 

 

 

—

 

 

 

—

 

 

 

3,418

 

J.P. Morgan Securities LLC

 

 

1,237

 

 

 

—

 

 

 

—

 

 

 

1,237

 

 

 

997

 

 

 

—

 

 

 

—

 

 

 

997

 

Wells Fargo Securities, LLC

 

 

895

 

 

 

—

 

 

 

—

 

 

 

895

 

 

 

7,759

 

 

 

—

 

 

 

—

 

 

 

7,759

 

Citigroup Global Markets Inc.

 

 

712

 

 

 

—

 

 

 

—

 

 

 

712

 

 

 

503

 

 

 

—

 

 

 

—

 

 

 

503

 

Goldman Sachs & Co. LLC

 

 

251

 

 

 

—

 

 

 

—

 

 

 

251

 

 

 

18,701

 

 

 

—

 

 

 

—

 

 

 

18,701

 

Other

 

 

1,825

 

 

 

—

 

 

 

—

 

 

 

1,825

 

 

 

322

 

 

 

—

 

 

 

—

 

 

 

322

 

 

$

56,840

 

 

$

—

 

 

$

—

 

 

$

56,840

 

 

$

177,984

 

 

$

—

 

 

$

—

 

 

$

177,984

 

 

Derivative Liabilities, Financial Liabilities and Collateral Pledged by Counterparty

The following table summarizes by significant counterparty the amounts of derivative liabilities and assets sold under agreements to repurchase after considering master netting arrangements and financial instruments or cash pledged that do not meet the accounting guidance to qualify for setoff accounting. All assets sold under agreements to repurchase are backed by sufficient collateral with fair values that exceed the liability amounts recorded on the consolidated balance sheet.

 

 

 

December 31, 2024

 

 

December 31, 2023

 

 

 

Net amount

 

 

Gross amounts

 

 

 

 

 

Net amount

 

 

Gross amounts

 

 

 

 

 

 

of liabilities

 

 

not offset in the

 

 

 

 

 

of liabilities

 

 

not offset in the

 

 

 

 

 

 

presented

 

 

consolidated

 

 

 

 

 

presented

 

 

consolidated

 

 

 

 

 

 

in the

 

 

balance sheet

 

 

 

 

 

in the

 

 

balance sheet

 

 

 

 

 

 

consolidated

 

 

Financial

 

 

Cash

 

 

 

 

 

consolidated

 

 

Financial

 

 

Cash

 

 

 

 

 

 

balance

 

 

instruments

 

 

collateral

 

 

Net

 

 

balance

 

 

instruments

 

 

collateral

 

 

Net

 

Counterparty

 

sheet

 

 

(1)

 

 

pledged

 

 

amount

 

 

sheet

 

 

(1)

 

 

pledged

 

 

amount

 

 

 

(in thousands)

 

Interest rate lock commitments

 

$

3,118

 

 

$

—

 

 

$

—

 

 

$

3,118

 

 

$

64

 

 

$

—

 

 

$

—

 

 

$

64

 

J.P. Morgan Securities LLC

 

 

1,695,007

 

 

 

(1,695,007

)

 

 

—

 

 

 

—

 

 

 

1,521,072

 

 

 

(1,521,072

)

 

 

—

 

 

 

—

 

Bank of America, N.A.

 

 

787,883

 

 

 

(787,883

)

 

 

—

 

 

 

—

 

 

 

785,756

 

 

 

(785,756

)

 

 

—

 

 

 

—

 

Wells Fargo Securities, LLC

 

 

670,605

 

 

 

(670,605

)

 

 

—

 

 

 

—

 

 

 

569,129

 

 

 

(569,129

)

 

 

—

 

 

 

—

 

Atlas Securitized Products, L.P.

 

 

609,780

 

 

 

(609,780

)

 

 

—

 

 

 

—

 

 

 

783,456

 

 

 

(783,456

)

 

 

—

 

 

 

—

 

Barclays Capital Inc.

 

 

545,678

 

 

 

(545,678

)

 

 

—

 

 

 

—

 

 

 

807,404

 

 

 

(803,641

)

 

 

—

 

 

 

3,763

 

Citigroup Global Markets Inc.

 

 

431,201

 

 

 

(431,201

)

 

 

—

 

 

 

—

 

 

 

147,093

 

 

 

(147,093

)

 

 

—

 

 

 

—

 

Santander US Capital

 

 

362,196

 

 

 

(362,196

)

 

 

—

 

 

 

—

 

 

 

292,091

 

 

 

(292,091

)

 

 

—

 

 

 

—

 

RBC Capital Markets, L.P.

 

 

353,765

 

 

 

(353,765

)

 

 

—

 

 

 

—

 

 

 

128,602

 

 

 

(128,602

)

 

 

—

 

 

 

—

 

Goldman Sachs & Co. LLC

 

 

311,997

 

 

 

(311,997

)

 

 

—

 

 

 

—

 

 

 

145,007

 

 

 

(145,007

)

 

 

—

 

 

 

—

 

Morgan Stanley & Co. LLC

 

 

280,561

 

 

 

(280,561

)

 

 

—

 

 

 

—

 

 

 

25,814

 

 

 

(25,814

)

 

 

—

 

 

 

—

 

Daiwa Capital Markets

 

 

230,033

 

 

 

(230,033

)

 

 

—

 

 

 

—

 

 

 

340,975

 

 

 

(340,975

)

 

 

—

 

 

 

—

 

Mizuho Financial Group

 

 

98,196

 

 

 

(98,121

)

 

 

—

 

 

 

75

 

 

 

67,637

 

 

 

(67,110

)

 

 

—

 

 

 

527

 

Bank of Montreal

 

 

72,859

 

 

 

(72,859

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

BNP Paribas

 

 

59,729

 

 

 

(59,729

)

 

 

—

 

 

 

—

 

 

 

10,121

 

 

 

(10,121

)

 

 

—

 

 

 

—

 

Nomura Holdings America, Inc

 

 

36

 

 

 

—

 

 

 

—

 

 

 

36

 

 

 

8,135

 

 

 

(7,940

)

 

 

—

 

 

 

195

 

Other

 

 

62

 

 

 

—

 

 

 

—

 

 

 

62

 

 

 

140

 

 

 

—

 

 

 

—

 

 

 

140

 

 

$

6,512,706

 

 

$

(6,509,415

)

 

$

—

 

 

$

3,291

 

 

$

5,632,496

 

 

$

(5,627,807

)

 

$

—

 

 

$

4,689

 

 

(1)
Amounts represent the UPB of Assets sold under agreements to repurchase.

Following are the net gains (losses) recognized by the Company on derivative financial instruments and the consolidated statements of operations lines where such gains and losses are included:

 

 

 

 

Year ended December 31,

 

Derivative activity

 

Consolidated statements of operations line

2024

 

 

2023

 

 

2022

 

 

 

 

(in thousands)

 

Interest rate lock commitments

 

Net gains on loans acquired for sale (1)

$

(7,089

)

 

$

8,010

 

 

$

(2,928

)

CRT derivatives

 

Net gains (losses) on investments
   and financings

$

27,020

 

 

$

56,544

 

 

$

(3,838

)

Hedged item:

 

 

 

 

 

 

 

 

 

 

Assets sold under agreements
   to repurchase

 

Net gains (losses) on investments
   and financings

$

20,098

 

 

$

(83,201

)

 

$

—

 

Interest rate lock commitments
   and loans acquired for sale

 

Net gains on loans acquired for sale

$

19,896

 

 

$

4,636

 

 

$

553,965

 

Mortgage servicing rights

 

Net loan servicing fees

$

(226,608

)

 

$

(92,775

)

 

$

(204,879

)

 

(1)
Represents net change in fair value of IRLCs from the beginning to the end of the year. Amounts recognized at the date of commitment and fair value changes recognized during the year until purchase of the underlying loan or cancellation of the commitment are shown in the rollforwards of IRLCs for the years in Note 7 – Fair Value – Financial Statement Items Measured at Fair Value on a Recurring Basis.
v3.25.0.1
Mortgage Servicing Rights
 12 Months Ended
Dec. 31, 2024
Text Block [Abstract]  
Mortgage Servicing Rights

Note 12—Mortgage Servicing Rights

Following is a summary of MSRs:

 

 

Year ended December 31,

 

 

 

2024

 

 

2023

 

 

2022

 

 

 

(in thousands)

 

 

Balance at beginning of year

$

3,919,107

 

 

$

4,012,737

 

 

$

2,892,855

 

 

Purchases

 

29,429

 

 

 

16,258

 

 

 

—

 

 

MSRs resulting from loan sales

 

219,001

 

 

 

292,527

 

 

 

670,343

 

 

Transfers to Agency of mortgage servicing
    rights relating to delinquent loans

 

561

 

 

 

(472

)

 

 

104

 

 

Exchange of mortgage servicing spread for
    interest-only stripped mortgage-backed
    securities and interest receivable

 

(130,295

)

 

 

(105,096

)

 

 

—

 

 

Changes in fair value:

 

 

 

 

 

 

 

 

 

Due to changes in inputs used in valuation
    model (1)

 

217,182

 

 

 

87,811

 

 

 

819,727

 

 

Other changes in fair value (2)

 

(387,591

)

 

 

(384,658

)

 

 

(370,292

)

 

 

(170,409

)

 

 

(296,847

)

 

 

449,435

 

 

Balance at end of year

$

3,867,394

 

 

$

3,919,107

 

 

$

4,012,737

 

 

 

 

December 31, 2024

 

 

December 31, 2023

 

 

(in thousands)

 

Fair value of mortgage servicing rights pledged to secure Assets
    sold under agreements to repurchase and Notes payable
    secured by credit risk transfer and mortgage servicing assets

$

3,807,065

 

 

$

3,871,249

 

 

(1)
Primarily reflects changes in pricing spread, prepayment speed, servicing cost, and UPB of underlying loan inputs.
(2)
Represents changes due to realization of expected cash flows.

Servicing fees relating to MSRs are recorded in Net loan servicing fees – from nonaffiliates on the Company’s consolidated statements of operations and are summarized below:

 

 

 

Year ended December 31,

 

 

 

 

2024

 

 

2023

 

 

2022

 

 

 

(in thousands)

Contractually specified servicing fees

 

$

644,642

 

 

$

659,438

 

 

$

625,210

 

 

Ancillary and other fees:

 

 

 

 

 

 

 

 

 

 

Late charges

 

 

4,056

 

 

 

3,352

 

 

 

2,526

 

 

Other

 

 

10,666

 

 

 

13,656

 

 

 

23,515

 

 

 

 

14,722

 

 

 

17,008

 

 

 

26,041

 

 

 

$

659,364

 

 

$

676,446

 

 

$

651,251

 

 

Average UPB of underlying loans

 

$

228,705,758

 

 

$

231,203,032

 

 

$

222,847,593

 

 

 

 

 

 

 

 

 

 

 

 

 
v3.25.0.1
Other Assets
 12 Months Ended
Dec. 31, 2024
Other Assets [Abstract]  
Other Assets

Note 13— Other Assets

Other assets are summarized below:

 

 

 

December 31, 2024

 

 

December 31, 2023

 

 

 

(dollars in thousands)

 

Margin deposits

 

$

346,241

 

 

$

124,293

 

Interest receivable

 

 

38,661

 

 

 

37,305

 

Servicing fees receivable

 

 

10,820

 

 

 

14,603

 

Correspondent lending receivables

 

 

3,930

 

 

 

6,313

 

Other receivables

 

 

16,706

 

 

 

7,199

 

Real estate acquired in settlement of loans

 

 

2,464

 

 

 

4,541

 

Other

 

 

19,399

 

 

 

58,284

 

 

 

$

438,221

 

 

$

252,538

 

Real estate acquired in settlement of loans pledged to secure
   Assets sold under agreements to repurchase

 

$

527

 

 

$

1,905

 
v3.25.0.1
Short-Term Debt
 12 Months Ended
Dec. 31, 2024
Short-Term Debt [Abstract]  
Short-Term Debt

Note 14— Short-Term Debt

The borrowing facilities described throughout these Notes 14 and 15 contain various covenants, including financial covenants relating to the Company and its subsidiaries’ net worth, debt-to-equity ratio, and liquidity. The Company believes that it was in compliance with these covenants as of December 31, 2024.

Assets Sold Under Agreements to Repurchase

Following is a summary of financial information relating to assets sold under agreements to repurchase:

 

 

 

Year ended December 31,

 

 

 

2024

 

 

2023

 

 

2022

 

 

 

(dollars in thousands)

 

Weighted average interest rate (1)

 

 

5.94

%

 

 

5.91

%

 

 

2.81

%

Average balance

 

$

5,478,037

 

 

$

6,306,627

 

 

$

5,625,345

 

Total interest expense

 

$

331,800

 

 

$

378,367

 

 

$

165,436

 

Maximum daily amount outstanding

 

$

7,865,435

 

 

$

9,460,676

 

 

$

8,834,936

 

 

(1)
Excludes the effect of amortization of debt issuance costs and non-utilization fees of $6.4 million, $5.5 million and $7.6 million for the years ended December 31, 2024, 2023 and 2022, respectively.

 

 

 

December 31, 2024

 

 

December 31, 2023

 

 

 

(dollars in thousands)

 

Carrying value:

 

 

 

 

 

 

Unpaid principal balance

 

$

6,509,415

 

 

$

5,627,807

 

Unamortized debt issuance costs

 

 

(8,477

)

 

 

(3,249

)

 

 

$

6,500,938

 

 

$

5,624,558

 

Weighted average interest rate

 

 

5.37

%

 

 

6.14

%

Available borrowing capacity (1):

 

 

 

 

 

 

Committed

 

$

565,488

 

 

$

634,147

 

Uncommitted

 

 

4,559,239

 

 

 

5,221,706

 

 

$

5,124,727

 

 

$

5,855,853

 

Margin deposits placed with (received from) counterparties included in
   Other assets (Accounts payable and accrued liabilities), net

 

$

296,922

 

 

$

(116,358

)

Assets securing agreements to repurchase:

 

 

 

 

 

 

Mortgage-backed securities

 

$

4,063,706

 

 

$

4,836,292

 

Loans acquired for sale at fair value

 

$

2,075,473

 

 

$

659,751

 

Loans at fair value:

 

 

 

 

 

 

Securities retained in asset-backed financings

 

$

130,839

 

 

$

85,344

 

Distressed

 

$

160

 

 

$

207

 

Deposits securing credit risk transfer arrangements

 

$

199,965

 

 

$

77,417

 

Mortgage servicing rights (2)

 

$

1,906,043

 

 

$

2,000,574

 

Servicing advances

 

$

50,333

 

 

$

101,927

 

Real estate acquired in settlement of loans

 

$

527

 

 

$

1,905

 

 

(1)
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.
(2)
Beneficial interests in Fannie Mae MSRs are pledged to secure both Assets sold under agreements to repurchase and Notes payable secured by credit risk transfer and mortgage servicing assets.

Following is a summary of maturities of outstanding advances under repurchase agreements by maturity date:

 

Remaining maturity at December 31, 2024 (1)

 

Unpaid
principal
balance

 

 

 

(in thousands)

 

Within 30 days

 

$

4,568,493

 

Over 30 to 90 days

 

 

1,326,293

 

Over 90 days to 180 days

 

 

353,765

 

Over 180 days to 1 year

 

 

—

 

Over 1 year to 2 years

 

 

260,864

 

 

$

6,509,415

 

Weighted average maturity (in months)

 

 

1.6

 

 

(1)
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 repurchase agreements mature if the fair values (as determined by the applicable lender) of the assets securing those repurchase agreements decreases.

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) and maturity information relating to the Company’s assets sold under agreements to repurchase is summarized by pledged asset and counterparty below as of December 31, 2024:

Loans, REO and MSRs

 

 

 

 

 

 

Weighted-average maturity

Counterparty

 

Amount at risk

 

 

Advances

 

Facility

 

 

(in thousands)

 

 

 

 

 

Goldman Sachs & Co. LLC

 

$

146,796

 

 

March 27, 2025

 

February 21, 2026

Atlas Securitized Products, L.P.

 

$

110,744

 

 

February 28, 2025

 

June 26, 2026

Citibank, N.A.

 

$

55,845

 

 

January 11, 2025

 

June 11, 2026

Bank of America, N.A.

 

$

37,636

 

 

January 24, 2025

 

June 10, 2026

JPMorgan Chase & Co.

 

$

14,712

 

 

February 19, 2025

 

June 28, 2026

Wells Fargo Securities, LLC

 

$

844

 

 

March 16, 2025

 

October 15, 2025

Barclays Capital Inc.

 

$

6,491

 

 

March 9, 2025

 

March 6, 2026

RBC Capital Markets, L.P.

 

$

18,420

 

 

April 12, 2025

 

November 10, 2025

Morgan Stanley & Co. LLC

 

$

13,879

 

 

March 16, 2025

 

May 22, 2026

BNP Paribas

 

$

319

 

 

March 27, 2025

 

September 30, 2026

 

Securities

 

Counterparty

 

Amount at risk

 

 

Weighted-average maturity

 

 

(in thousands)

 

 

 

Goldman Sachs & Co. LLC

 

$

3,817

 

 

February 28, 2025

Citibank, N.A.

 

$

43,489

 

 

January 13, 2025

Bank of America, N.A.

 

$

29,234

 

 

January 10, 2025

JPMorgan Chase & Co.

 

$

46,159

 

 

January 11, 2025

Wells Fargo Securities, LLC

 

$

28,622

 

 

January 23, 2025

Barclays Capital Inc.

 

$

17,969

 

 

January 12, 2025

Santander US Capital

 

$

14,310

 

 

January 13, 2025

Bank of Montreal

 

$

7,215

 

 

February 12, 2025

Daiwa Capital Markets America Inc.

 

$

5,149

 

 

January 2, 2025

Mizuho Financial Group

 

$

3,968

 

 

January 6, 2025

CRT arrangements

 

Counterparty

 

Amount at risk

 

 

Weighted-average maturity

 

 

(in thousands)

 

 

 

Goldman Sachs & Co. LLC

 

$

111,176

 

 

January 18, 2025

Mortgage Loan Participation Purchase and Sale Agreement

One of the borrowing facilities secured by loans acquired for sale is in the form of a mortgage loan participation purchase and sale agreement. Participation certificates, each of which represents an undivided beneficial ownership interest in a pool of loans that have been pooled with Fannie Mae or Freddie Mac, are sold to the lender pending the securitization of such loans and the sale of the resulting securities. The commitment between the Company and a nonaffiliate to sell such securities 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. The holdback amount is based on a percentage of the purchase price and 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 agreement is summarized below:

 

 

 

Year ended December 31,

 

 

 

2024

 

 

2023

 

 

2022

 

 

 

(dollars in thousands)

 

Average balance

 

$

17,852

 

 

$

19,079

 

 

$

30,024

 

Weighted average interest rate (1)

 

 

6.54

%

 

 

6.50

%

 

 

2.99

%

Total interest expense

 

$

1,292

 

 

$

1,365

 

 

$

1,023

 

Maximum daily amount outstanding

 

$

78,068

 

 

$

90,565

 

 

$

91,857

 

 

(1)
Excludes the effect of amortization of debt issuance costs of $125,000 for each of the years ended December 31, 2024, 2023 and 2022.

 

 

 

December 31, 2024

 

 

 

(dollars in thousands)

 

Carrying value:

 

 

 

Amount outstanding

 

$

11,650

 

Unamortized debt issuance costs

 

 

(57

)

 

$

11,593

 

Weighted average interest rate

 

 

5.58

%

Loans acquired for sale pledged to secure mortgage loan participation
   purchase and sale agreement

 

$

12,142

 
v3.25.0.1
Long-Term Debt
 12 Months Ended
Dec. 31, 2024
Debt Disclosure [Abstract]  
Long-Term Debt

Note 15— Long-Term Debt

Notes Payable Secured By Credit Risk Transfer and Mortgage Servicing Assets

CRT Arrangement Financing

The Company, through various wholly-owned subsidiaries, issued secured term notes (the “CRT Term Notes”) to qualified institutional buyers under Rule 144A of the Securities Act of 1933, as amended (the “Securities Act”). All of the CRT Term Notes rank pari passu with each other.

Following is a summary of the CRT Term Notes outstanding:

 

CRT
Term
Notes

 

Issuance date

 

Issuance amount

 

 

Unpaid principal
balance

 

 

Annual interest rate spread (1)

 

Maturity date

 

 

 

 

(in thousands)

 

 

 

 

 

2024 3R

 

August 28, 2024

 

$

158,500

 

 

$

151,631

 

 

3.10%

 

September 27, 2028

2024 2R

 

April 4, 2024

 

$

247,000

 

 

 

230,374

 

 

3.35%

 

March 29, 2027

2024 1R

 

March 6, 2024

 

$

306,000

 

 

 

283,749

 

 

3.50%

 

March 1, 2027

2020 1R

 

February 14, 2020

 

$

350,000

 

 

 

44,575

 

 

3.35%

 

February 27, 2025

 

 

 

 

 

 

$

710,329

 

 

 

 

 

 

(1)
Interest rates are charged at a spread to the Secured Overnight Financing Rate ("SOFR").

Fannie Mae MSR Financing

The Company, through two subsidiaries, PMT ISSUER TRUST-FMSR and PMT CO-ISSUER TRUST-FMSR (together, the "Issuer Trusts"), finances MSRs owned by PMC and the related excess servicing spread ("ESS") owned by PennyMac Holdings, LLC (“PMH”), another subsidiary of PMT, through a combination of repurchase agreements and term financing.

The repurchase agreement financings for Fannie Mae MSRs and ESS are effected through the issuance of variable funding notes (a Series 2017-VF1 Note, a Series 2024-VF1 Note, and a Series 2024-VF2 Note, together the "FMSR VFNs") by the Issuer Trusts to PMC and PMH, which are then sold to qualified institutional buyers under agreements to repurchase. The amounts outstanding under the FMSR

VFNs are included in Assets sold under agreements to repurchase in the Company’s consolidated balance sheets. The FMSR VFNs have a combined committed borrowing capacity of $1.1 billion under two-year repurchase agreement facilities.

The term financing for Fannie Mae MSRs through the Issuer Trusts is effected through the issuance of term notes (the “FT-1 Term Notes”) to qualified institutional buyers under Rule 144A of the Securities Act and a series of syndicated term loans with various lenders (the “FTL-1 Term Loans").

The FT-1 Term Notes and FTL-1 Term Loans and the FMSR VFNs are secured by certain participation certificates relating to Fannie Mae MSRs and ESS and rank pari passu with each other.

Following is a summary of the term financing of the Company’s Fannie Mae MSRs:

 

 

 

 

 

 

 

 

 

 

Maturity date

Issuance

 

Issuance date

 

Unpaid principal
balance

 

 

Annual interest rate spread(1)

 

Stated

 

Optional extension (2)

 

 

 

 

(in thousands)

 

 

 

 

 

 

 

Term Loans

 

 

 

 

 

 

 

 

 

2023

 

May 25, 2023

 

$

370,000

 

 

3.00%

 

May 25, 2028

 

May 25, 2029

Term Notes

 

 

 

 

 

 

 

 

 

2024

 

June 27, 2024

 

 

355,000

 

 

2.75%

 

December 27, 2027

 

June 26, 2028

2021

 

March 30, 2021

 

 

350,000

 

 

3.00%

 

March 25, 2026

 

March 27, 2028

 

 

 

 

$

1,075,000

 

 

 

 

 

 

 

 

(1)
Interest rates are charged at a spread to SOFR.
(2)
The indentures relating to these issuances provide the Company with the option of extending the maturity dates of the FTL-1Term Loans and FT-1 Term Notes under conditions specified in the respective agreements.

Freddie Mac MSR and Servicing Advance Receivables Financing

The Company, through PMC and PMH, finances certain MSRs (including any related ESS) relating to loans pooled into Freddie Mac securities through various credit agreements. The total loan amount available under the agreements is approximately $2.0 billion, bearing interest at an annual rate equal to SOFR plus a spread as defined in each agreement. The agreements have maturities on various dates through August 2026. The total loan amount available under the agreements may be reduced by other debt outstanding with the counterparties. Advances under the credit agreements are secured by MSRs relating to loans serviced for Freddie Mac guaranteed securities.

On August 10, 2023, the Company, through its indirect, wholly owned subsidiaries, PMT ISSUER TRUST - FHLMC SAF, PMT SAF Funding, LLC, and PMC, entered into a structured finance transaction that PMC will use to finance Freddie Mac servicing advance receivables (the “Series 2023-VF1”). The maturity date of the related Series 2023-VF1, Class A-VF1 Variable Funding Note is March 6, 2026 and has a maximum principal amount of $175 million.

Following is a summary of financial information relating to notes payable secured by credit risk transfer and mortgage servicing assets:

 

Year ended December 31,

 

 

2024

 

 

2023

 

 

2022

 

 

(dollars in thousands)

 

Average balance

$

2,883,379

 

 

$

2,969,174

 

 

$

2,646,597

 

Weighted average interest rate (1)

 

8.67

%

 

 

8.42

%

 

 

4.92

%

Total interest expense

$

261,008

 

 

$

257,601

 

 

$

137,021

 

 

(1)
Excludes the effect of amortization of debt issuance costs of $11.0 million, $7.5 million and $6.7 million for the years ended December 31, 2024, 2023 and 2022, respectively

 

 

 

December 31, 2024

 

 

December 31, 2023

 

 

(dollars in thousands)

 

Carrying value:

 

 

 

 

 

Unpaid principal balance:

 

 

 

 

 

CRT arrangement financing

$

710,329

 

 

$

747,662

 

Fannie Mae MSR financing

 

1,075,000

 

 

 

1,025,000

 

Freddie Mac MSR and servicing advance receivable financing

 

1,153,486

 

 

 

1,145,000

 

 

 

2,938,815

 

 

 

2,917,662

 

Unamortized debt issuance costs

 

(9,025

)

 

 

(7,057

)

$

2,929,790

 

 

$

2,910,605

 

Weighted average interest rate

 

7.60

%

 

 

8.73

%

Assets securing notes payable:

 

 

 

 

 

MSRs (1)

$

3,807,065

 

 

$

3,871,249

 

Servicing advances

$

39,063

 

 

$

79,274

 

CRT arrangements:

 

 

 

 

 

Deposits securing CRT arrangements

$

910,743

 

 

$

1,132,081

 

Derivative assets

$

29,377

 

 

$

16,160

 

 

(1)
Beneficial interests in Freddie Mac MSRs are pledged as collateral for the Notes payable secured by credit risk transfer and mortgage servicing assets. Beneficial interests in Fannie Mae MSRs are pledged for both Assets sold under agreements to repurchase and Notes payable secured by credit risk transfer and mortgage servicing assets.

Unsecured Senior Notes

Exchangeable Senior Notes

PMC has issued $216.5 million aggregate principal amount of exchangeable senior notes due 2029 (the “2029 Exchangeable Notes”) and $345 million aggregate principal amount of exchangeable senior notes due 2026 (the “2026 Exchangeable Notes”). The 2029 Exchangeable Notes and the 2026 Exchangeable Notes are referred to collectively as the “Exchangeable Notes”. The Exchangeable Notes are summarized below:

Initial issuance date

 

Unpaid principal balance

 

 

Annual interest rate

 

Conversion rates (1)

 

Maturity date (2)

 

(in thousands)

 

 

 

 

 

 

 

May 24, 2024 (3)

 

$

216,500

 

 

8.50%

 

63.3332

 

June 1, 2029

March 5, 2021

 

 

345,000

 

 

5.50%

 

46.1063

 

March 15, 2026

 

 

$

561,500

 

 

 

 

 

 

 

 

(1)
Common Shares per $1,000 principal amount.
(2)
Unless repurchased or exchanged in accordance with their terms before such date.
(3)
Balance includes $16.5 million issued on June 4, 2024.

Effective June 21, 2024, the Company and PMC entered into a supplemental indenture pursuant to which PMC made an irrevocable election to eliminate its option to elect physical share settlement on any exchange of the 2026 Exchangeable Notes. As a result of entering into the supplemental indenture, the 2026 Exchangeable Notes are exchangeable for: (1) cash for the principal amount of the notes to be exchanged; and (2) cash, Common Shares or a combination of cash and Common Shares, at the Company’s election, for the remainder, if any, of the exchange obligation in excess of the principal amount of the notes being exchanged, at any time until the close of business on the second scheduled trading day immediately preceding the maturity date.

The Exchangeable Notes are fully and unconditionally guaranteed by the Company.

2028 Senior Notes

In September 2023, the Company issued $53.5 million principal amount of unsecured 8.50% senior notes due

September 30, 2028 (the "2028 Senior Notes”). Interest on the 2028 Senior Notes is payable quarterly.

On or after September 30, 2025, PMT may redeem for cash all or any portion of the 2028 Senior Notes, at its option, at a redemption price equal to 100% of the principal amount of the notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date.

The 2028 Senior Notes are fully and unconditionally guaranteed on a senior unsecured basis by PMC, including the due and punctual payment of principal and interest, whether at stated maturity, upon acceleration, call for redemption or otherwise.

Following is financial information relating to the unsecured senior notes:

 

 

Year ended December 31,

 

 

2024

 

 

2023

 

 

2022

 

 

(in thousands)

 

Average balance

$

704,279

 

 

$

561,877

 

 

$

541,233

 

Weighted average interest rate (1)

 

6.24

%

 

 

5.65

%

 

 

5.64

%

Interest expense

$

48,000

 

 

$

34,969

 

 

$

33,368

 

 

(1)
Excludes the effect of amortization of debt issuance costs of $4.1 million, $3.2 million and $2.8 million for the years ended December 31, 2024, 2023 and 2022, respectively.

 

 

December 31, 2024

 

 

December 31, 2023

 

 

(in thousands)

 

Carrying value:

 

 

 

 

 

Unpaid principal balance

$

615,000

 

 

$

608,500

 

Unamortized debt issuance costs

 

(9,140

)

 

 

(8,042

)

$

605,860

 

 

$

600,458

 

 

Asset-Backed Financing of Variable Interest Entities at Fair Value

Following is a summary of financial information relating to the asset-backed financings of VIEs at fair value described in Note 6 ‒ Variable Interest Entities ‒ Subordinate Mortgage-Backed Securities:

 

 

Year ended December 31,

 

 

2024

 

 

2023

 

 

2022

 

 

(dollars in thousands)

 

Average balance

$

1,612,065

 

 

$

1,354,803

 

 

$

1,512,590

 

Total interest expense

$

55,763

 

 

$

49,988

 

 

$

53,570

 

Weighted average interest rate (1)

 

3.23

%

 

 

3.73

%

 

 

3.42

%

 

(1)
Excludes the effect of amortization (accrual) of debt issuance costs (premiums) of $3.7 million, $(496,000) and $1.8 million for the years ended December 31, 2024, 2023 and 2022, respectively.

 

 

December 31, 2024

 

 

December 31, 2023

 

 

(dollars in thousands)

 

Fair value

$

2,040,375

 

 

$

1,336,731

 

Unpaid principal balance

$

2,269,742

 

 

$

1,590,003

 

Weighted average interest rate

 

3.22

%

 

 

3.22

%

 

The asset-backed financings are non-recourse liabilities and are secured solely by the assets of consolidated VIEs and not by any other assets of the Company. The assets of the VIEs are the only source of funds for repayment of the securities.

 

Maturities of Long-Term Debt

Contractual maturities of long-term debt obligations (based on final maturity dates) are as follows:

 

 

 

 

 

Year ended December 31,

 

 

 

 

 

Total

 

 

2025

 

 

2026

 

 

2027

 

 

2028

 

 

2029

 

 

Thereafter

 

 

(in thousands)

 

Notes payable secured by credit risk transfer
    and mortgage servicing assets (1)

$

2,938,815

 

 

$

44,575

 

 

$

1,503,486

 

 

$

869,123

 

 

$

521,631

 

 

$

—

 

 

$

—

 

Unsecured senior notes

 

615,000

 

 

 

—

 

 

 

345,000

 

 

 

—

 

 

 

53,500

 

 

 

216,500

 

 

 

—

 

Asset-backed financings at fair value (2)

 

2,269,742

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2,269,742

 

Interest-only security payable at fair value (2)

 

34,222

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

34,222

 

Total

$

5,857,779

 

 

$

44,575

 

 

$

1,848,486

 

 

$

869,123

 

 

$

575,131

 

 

$

216,500

 

 

$

2,303,964

 

 

(1)
Based on stated maturities. As discussed above, certain of the Notes payable secured by credit risk and mortgage servicing assets allow the Company to exercise optional extensions.
(2)
Contractual maturity does not reflect expected repayment as borrowers of the underlying loans generally have the right to repay their loans at any time.
v3.25.0.1
Liability for Losses Under Representations and Warranties
 12 Months Ended
Dec. 31, 2024
Liability For Representations And Warranties [Abstract]  
Liability for Losses Under Representations and Warranties

Note 16—Liability for Losses Under Representations and Warranties

Following is a summary of the Company’s liability for losses under representations and warranties:

 

 

Year ended December 31,

 

 

2024

 

 

2023

 

 

2022

 

 

(in thousands)

 

Balance, beginning of year

$

26,143

 

 

$

39,471

 

 

$

40,249

 

Provision for losses:

 

 

 

 

 

 

 

 

Pursuant to loan sales

 

1,246

 

 

 

2,449

 

 

 

4,442

 

Reduction in liability due to change in estimate

 

(20,269

)

 

 

(15,228

)

 

 

(4,227

)

Losses incurred

 

(234

)

 

 

(549

)

 

 

(993

)

Balance, end of year

$

6,886

 

 

$

26,143

 

 

$

39,471

 

UPB of loans subject to representations and warranties at end of year

$

222,063,618

 

 

$

227,456,712

 

 

$

228,339,312

 
v3.25.0.1
Commitments and Contingencies
 12 Months Ended
Dec. 31, 2024
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies

Note 17—Commitments and Contingencies

Commitments

The following table summarizes the Company’s outstanding contractual commitments:

 

 

 

December 31, 2024

 

 

 

(in thousands)

 

Commitments to purchase loans acquired for sale

 

$

1,166,566

 

 

Legal Proceedings

From time to time, the Company may be involved in various legal and regulatory proceedings, claims and legal actions arising in the ordinary course of 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, income, or cash flows of the Company.

 

Litigation

On June 14, 2024, a purported shareholder of the Company’s Series A Preferred Shares and Series B Preferred Shares (each, as defined hereafter) filed a complaint in a putative class action in the United States District Court for the Central District of California, captioned Roberto Verthelyi v. PennyMac Mortgage Investment Trust and PNMAC Capital Management, LLC, Case No. 2:24-cv-05028 (the “Verthelyi Action”). The Verthelyi Action alleges, among other things, that the Company (and its external investment advisor, PCM), committed unlawful and unfair acts in violation of California’s Unfair Competition Law by replacing its floating three-month London Inter-bank Offered Rate ("LIBOR") dividend rate for the Series A and Series B Preferred Shares with a fixed rate, in violation of the LIBOR Act, 12 U.S.C. § 5801 et seq., and the LIBOR Rule, 12 C.F.R. § 253 et seq.

The Verthelyi Action seeks injunctive relief requiring the Company to implement SOFR as a replacement to the three-month LIBOR rate and damages for the putative class in the form of restitution, interest, disgorgement and other relief. The Company believes it has interpreted the Articles Supplementary to its Series A and Series B Preferred Shares consistent with their terms and, more specifically, the interest rate fallback provisions contained therein, as applied under the LIBOR Act and the LIBOR rules, and that the Verthelyi Action is without merit. Accordingly, while no assurance can be provided as to the ultimate outcome of this claim, the Company and PCM plan to vigorously defend the matter. The Company and PCM each filed a motion to dismiss the complaint on August 20, 2024, and that motion remains pending.

Pursuant to the terms of the Third Amended and Restated Management Agreement, dated as of June 30, 2020, as amended, by and between the Company and PCM, the Company has assumed the defense of PCM in the Verthelyi Action.

v3.25.0.1
Shareholders' Equity
 12 Months Ended
Dec. 31, 2024
Equity [Abstract]  
Shareholders' Equity

Note 18—Shareholders’ Equity

Preferred Shares of Beneficial Interest

Preferred shares of beneficial interest are summarized below:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends per share, year ended December 31,

 

Series

 

Description (1)

 

Number of shares

 

 

Liquidation preference

 

 

Issuance discount

 

 

Carrying value

 

 

2024

 

 

2023

 

 

2022

 

 

 

(in thousands, except dividends per share)

 

A

 

8.125% Issued March 2017

 

 

4,600

 

 

$

115,000

 

 

$

3,828

 

 

$

111,172

 

 

$

2.03

 

 

$

2.03

 

 

$

2.03

 

B

 

8.00% Issued July 2017

 

 

7,800

 

 

 

195,000

 

 

 

6,465

 

 

 

188,535

 

 

$

2.00

 

 

$

2.00

 

 

$

2.00

 

C

 

6.75% Issued August 2021

 

 

10,000

 

 

 

250,000

 

 

 

8,225

 

 

 

241,775

 

 

$

1.68

 

 

$

1.68

 

 

$

1.68

 

 

 

 

 

22,400

 

 

$

560,000

 

 

$

18,518

 

 

$

541,482

 

 

 

 

 

 

 

 

 

 

 

(1)
Par value is $0.01 per share.

 

In accordance with the Articles Supplementary for each of the Series A Fixed-to-Floating Rate Cumulative Redeemable Preferred Shares of Beneficial Interest (the “Series A Preferred Shares”) and the Series B Fixed-to-Floating Rate Cumulative Redeemable Preferred Shares of Beneficial Interest (the “Series B Preferred Shares”), and disregarding the polling provisions contained in the Articles Supplementary for the Series A Preferred Shares and the Series B Preferred Shares that are deemed null and void in accordance with Federal Reserve rules, the applicable dividend rate for dividend periods from and after March 15, 2024, in the case of the Series A Preferred Shares, or June 15, 2024, in the case of the Series B Preferred Shares, are and will continue being calculated at the dividend rate in effect for the immediately preceding dividend period and will not transition to floating reference rates.

 

The Series A Preferred Shares became redeemable on March 15, 2024 and the Series B Preferred Shares became redeemable on June 15, 2024. The Series C Cumulative Redeemable Preferred Shares will not be redeemable before August 24, 2026, except in connection with the Company’s qualification as a REIT for U.S. federal income tax purposes or upon the occurrence of a change of control. On or after the date the preferred shares become redeemable, or 120 days after the first date on which such change of control occurs, the Company may, at its option, redeem any or all of the preferred shares at $25.00 per share plus any accumulated and unpaid dividends to, but not including, the redemption date. No preferred shares were redeemed during the year ended December 31, 2024.

The preferred shares have no stated maturity, are not subject to any sinking fund or mandatory redemption and will remain outstanding indefinitely unless redeemed or repurchased by the Company or converted into Common Shares in connection with a change of control by the holders of the preferred shares.

Common Shares of Beneficial Interest

“At-The-Market” (“ATM”) Equity Offering Program

On June 14, 2024, the Company filed a shelf registration statement and a prospectus supplement, and entered into separate equity distribution agreements to sell from time to time, through an ATM equity offering program under which the counterparties will act as sales agents and/or principals, the Company’s Common Shares having an aggregate offering price of up to $200 million. As of December 31, 2024, the Company had not sold any Common Shares under the ATM equity offering program.

Common Share Repurchase Program

The Company has a Common Share repurchase program with a repurchase authorization of $500 million before transaction fees.

The following table summarizes the Company’s Common Share repurchase activity:

 

 

 

Year ended December 31,

 

 

Cumulative

 

 

 

2024

 

 

2023

 

 

2022

 

 

total (1)

 

 

(in thousands)

 

Common Shares repurchased

 

 

—

 

 

 

2,411

 

 

 

6,094

 

 

 

29,102

 

Cost of Common Shares repurchased (2)

 

$

—

 

 

$

28,490

 

 

$

87,992

 

 

$

427,229

 

 

(1)
Amounts represent the Common Share repurchase program total from its inception in August 2015 through December 31, 2024.
(2)
Cumulative total cost of Common Shares repurchased includes $582,000 of transaction fees.
v3.25.0.1
Net Gains on Loans Acquired for Sale
 12 Months Ended
Dec. 31, 2024
Text Block [Abstract]  
Net Gains on Loans Acquired for Sale

Note 19— Net Gains on Loans Acquired for Sale

Net gains on loans acquired for sale are summarized below:

 

 

 

Year ended December 31,

 

 

 

2024

 

 

2023

 

 

2022

 

 

(in thousands)

 

From nonaffiliates:

 

 

 

 

 

 

 

 

 

Cash losses:

 

 

 

 

 

 

 

 

 

Sales of loans

 

$

(198,613

)

 

$

(278,128

)

 

$

(1,196,384

)

Hedging activities

 

 

(45,445

)

 

 

62,081

 

 

 

596,295

 

 

 

(244,058

)

 

 

(216,047

)

 

 

(600,089

)

Non-cash gains:

 

 

 

 

 

 

 

 

 

Receipt of MSRs in mortgage loan sale transactions

 

 

219,001

 

 

 

292,527

 

 

 

670,343

 

Provision for losses relating to representations
   and warranties provided in loan sales:

 

 

 

 

 

 

 

 

 

Pursuant to loans sales

 

 

(1,246

)

 

 

(2,449

)

 

 

(4,442

)

Reduction of liability due to change in estimate

 

 

20,269

 

 

 

15,228

 

 

 

4,227

 

 

 

19,023

 

 

 

12,779

 

 

 

(215

)

Changes in fair value of loans and derivatives

 

 

 

 

 

 

 

 

 

Interest rate lock commitments

 

 

(7,089

)

 

 

8,010

 

 

 

(2,928

)

Loans

 

 

12,837

 

 

 

(7,129

)

 

 

(4,057

)

Hedging derivatives

 

 

65,341

 

 

 

(57,445

)

 

 

(42,330

)

 

 

71,089

 

 

 

(56,564

)

 

 

(49,315

)

 

 

309,113

 

 

 

248,742

 

 

 

620,813

 

Total from nonaffiliates

 

 

65,055

 

 

 

32,695

 

 

 

20,724

 

From PFSI ‒ cash gains

 

 

8,069

 

 

 

7,162

 

 

 

4,968

 

 

$

73,124

 

 

$

39,857

 

 

$

25,692

 
v3.25.0.1
Net Gains (Losses) on Investments and Financings
 12 Months Ended
Dec. 31, 2024
Investments, Debt and Equity Securities [Abstract]  
Net Gains (Losses) on Investments and Financings

Note 20— Net Gains (Losses) on Investments and Financings

Net gains (losses) on investments and financings are summarized below:

 

 

 

Year ended December 31,

 

 

 

2024

 

 

2023

 

 

2022

 

 

 

(in thousands)

 

Mortgage-backed securities

 

$

(80,838

)

 

$

74,984

 

 

$

(576,758

)

Loans at fair value

 

 

15,516

 

 

 

17,439

 

 

 

(300,478

)

CRT arrangements

 

 

113,670

 

 

 

182,555

 

 

 

(65,137

)

Asset-backed financings

 

 

(7,396

)

 

 

(13,678

)

 

 

283,586

 

Hedging derivatives

 

 

20,098

 

 

 

(83,201

)

 

 

—

 

 

$

61,050

 

 

$

178,099

 

 

$

(658,787

)
v3.25.0.1
Net Interest Expense
 12 Months Ended
Dec. 31, 2024
Banking and Thrift, Interest [Abstract]  
Net Interest Expense

Note 21—Net Interest Expense

Net interest expense is summarized below:

 

 

 

Year ended December 31,

 

 

 

2024

 

 

2023

 

 

2022

 

 

(in thousands)

 

Interest income:

 

 

 

 

 

 

 

 

 

Cash and short-term investments

 

$

29,323

 

 

$

25,046

 

 

$

6,912

 

Mortgage-backed securities

 

 

237,758

 

 

 

248,713

 

 

 

133,640

 

Loans acquired for sale at fair value

 

 

83,326

 

 

 

93,988

 

 

 

103,300

 

Loans at fair value

 

 

58,715

 

 

 

56,874

 

 

 

59,482

 

Deposits securing CRT arrangements

 

 

59,304

 

 

 

62,713

 

 

 

21,324

 

Placement fees relating to custodial funds

 

 

163,891

 

 

 

149,484

 

 

 

57,961

 

Other

 

 

2,946

 

 

 

3,089

 

 

 

1,175

 

 

 

635,263

 

 

 

639,907

 

 

 

383,794

 

Interest expense:

 

 

 

 

 

 

 

 

 

Assets sold under agreements to repurchase

 

 

331,800

 

 

 

378,367

 

 

 

165,436

 

Mortgage loan participation purchase and sale agreements

 

 

1,292

 

 

 

1,365

 

 

 

1,023

 

Notes payable secured by credit risk transfer and
   mortgage servicing assets

 

 

261,008

 

 

 

257,601

 

 

 

137,021

 

Unsecured senior notes

 

 

48,000

 

 

 

34,969

 

 

 

33,368

 

Asset-backed financings at fair value

 

 

55,763

 

 

 

49,988

 

 

 

53,570

 

Interest shortfall on repayments of loans serviced
   for Agency securitizations

 

 

7,144

 

 

 

5,477

 

 

 

15,806

 

Interest on loan impound deposits

 

 

7,099

 

 

 

6,353

 

 

 

4,196

 

Other

 

 

2,553

 

 

 

1,848

 

 

 

—

 

 

 

 

714,659

 

 

 

735,968

 

 

 

410,420

 

 

 

$

(79,396

)

 

$

(96,061

)

 

$

(26,626

)
v3.25.0.1
Share-Based Compensation
 12 Months Ended
Dec. 31, 2024
Share-Based Payment Arrangement [Abstract]  
Share-Based Compensation

Note 22—Share-Based Compensation

The Company has an equity incentive plan that provides for the issuance of equity based awards based on Common Shares that may be made by the Company to its officers and trustees, and the members, officers, trustees, directors and employees of PCM, PFSI, or their affiliates and to PCM, PFSI and other entities that provide services to PMT and the employees of such other entities.

The equity incentive plan is administered by the Company’s compensation committee, pursuant to authority delegated by PMT’s board of trustees, which has the authority to make awards to the eligible participants referenced above, and to determine what form the awards will take, and the terms and conditions of the awards.

The equity incentive plan allows for the grant of restricted and performance-based share and unit awards.

The shares underlying award grants will again be available for award under the equity incentive plan if:

•
any shares subject to an award granted under the equity incentive plan are forfeited, canceled, exchanged or surrendered;
•
an award terminates or expires without a distribution of shares to the participant; or
•
shares are surrendered or withheld by PMT as payment of either the exercise price of an award and/or withholding taxes for an award.

Restricted share units have been awarded to trustees and officers of the Company and to other employees of PFSI and its subsidiaries at no cost to the grantees. Such awards generally vest over a one- to three-year period.

The following table summarizes the Company’s share-based compensation activity:

 

Year ended December 31,

 

 

2024

 

 

2023

 

 

2022

 

 

(in thousands)

 

Grants:

 

 

 

 

 

 

 

 

Restricted share units

 

182

 

 

 

172

 

 

 

134

 

Performance share units

 

140

 

 

 

166

 

 

 

151

 

 

322

 

 

 

338

 

 

 

285

 

Grant date fair value:

 

 

 

 

 

 

 

 

Restricted share units

$

2,605

 

 

$

2,212

 

 

$

2,101

 

Performance share units

 

2,007

 

 

 

2,088

 

 

 

2,350

 

$

4,612

 

 

$

4,300

 

 

$

4,451

 

Vestings:

 

 

 

 

 

 

 

 

Restricted share units

 

164

 

 

 

140

 

 

 

79

 

Performance share units (1)

 

203

 

 

 

48

 

 

 

41

 

 

367

 

 

 

188

 

 

 

120

 

Forfeitures:

 

 

 

 

 

 

 

 

Restricted share units

 

33

 

 

 

6

 

 

 

—

 

Performance share units

 

41

 

 

 

—

 

 

 

13

 

 

74

 

 

 

6

 

 

 

13

 

Compensation expense relating to share-based grants

$

3,479

 

 

$

5,205

 

 

$

4,310

 

 

(1)
The actual number of performance-based restricted share units (“RSUs”) that vested during the year ended December 31, 2024 was 203,110 Common Shares, which is approximately 140% of the originally granted performance-based RSUs.

 

 

 

December 31, 2024

 

 

 

Restricted share units

 

 

Performance share units

 

Shares expected to vest:

 

 

Number of restricted shares units (in thousands)

 

 

235

 

 

 

214

 

Grant date average fair value per unit

 

$

14.17

 

 

$

14.13

 

Average remaining vesting (in months)

 

 

9

 

 

 

8

 
v3.25.0.1
Income Taxes
 12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
Income Taxes

Note 23—Income Taxes

The Company’s effective tax rate was -12.9% for the year ended December 31, 2024 and 18.3% for the year ended December 31, 2023. The Company’s TRS recognized a tax benefit of $18.6 million on a pretax loss of $57.9 million while the Company’s consolidated pretax income was $142.6 million for the year ended December 31, 2024. For 2023, the TRS recognized a tax expense of $41.9 million on pretax income of $155.0 million while the Company’s reported consolidated pretax income was $244.4 million. The primary difference between the Company’s effective tax rate and the statutory tax rate is generally attributable to nontaxable REIT income resulting from the dividends paid deduction.

The Company assesses the available positive and negative evidence to estimate whether sufficient future taxable income will be generated to permit use of the existing deferred tax assets. On the basis of this evaluation, as of December 31, 2024, the valuation allowance remains zero. The conclusion was primarily based on the fact that the TRS has reported cumulative GAAP income over the last three-year period ending December 31, 2024. The amount of deferred tax assets considered realizable could be adjusted in future periods based on future income.

In general, cash dividends declared by the Company will be considered ordinary income to the shareholders for income tax purposes. Some portion of the dividends may be characterized as capital gain distributions or a return of capital. For tax years beginning before January 1, 2026, the Tax Cuts and Jobs Act (subject to certain limitations) provides a 20% deduction from taxable income for ordinary REIT dividends.

The following table summarizes the approximate tax characterization of distributions to shareholders for 2024, 2023 and 2022. Distributions included in the table below are based on the tax year to which the distribution is attributed to shareholders in accordance with rules promulgated under the Internal Revenue Code:

 

Year ended December 31,

 

Ordinary
income

 

 

Qualified dividend income

 

 

Long term
capital gain

 

 

Return of
capital

 

 

Sec. 199A dividend

 

Common Shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2024

 

 

100

%

 

 

27

%

 

 

—

%

 

 

—

%

 

 

73

%

2023

 

 

19

%

 

 

19

%

 

 

—

%

 

 

81

%

 

 

0

%

2022

 

 

86

%

 

 

—

%

 

 

—

%

 

 

14

%

 

 

86

%

Preferred Shares (Classes A, B and C)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2024

 

 

100

%

 

 

27

%

 

 

—

%

 

 

—

%

 

 

73

%

2023

 

 

100

%

 

 

100

%

 

 

—

%

 

 

—

%

 

 

—

%

2022

 

 

100

%

 

 

—

%

 

 

—

%

 

 

—

%

 

 

100

%

The Company has elected to treat its subsidiary, PMC, as a TRS. Income from a TRS is only included as a component of REIT taxable income to the extent that the TRS makes dividend distributions of income to the Company. The TRS made a $50 million distribution in 2024 which resulted in $50 million of dividend income to the Company. A TRS is subject to corporate federal and state income tax. Accordingly, a provision for income taxes for PMC is included in the consolidated statements of operations.

The following table details the Company’s (benefit from) provision for income taxes which relates primarily to the TRS for the years presented:

 

 

 

Year ended December 31,

 

 

 

2024

 

 

2023

 

 

2022

 

 

 

(in thousands)

 

Current expense (benefit):

 

 

 

 

 

 

 

 

 

Federal

 

$

1,051

 

 

$

6

 

 

$

(5

)

State

 

 

—

 

 

 

—

 

 

 

—

 

   Total current expense (benefit)

 

 

1,051

 

 

 

6

 

 

 

(5

)

Deferred (benefit) expense:

 

 

 

 

 

 

 

 

 

Federal

 

 

(16,898

)

 

 

32,391

 

 

 

113,894

 

State

 

 

(2,489

)

 

 

12,344

 

 

 

22,485

 

Total deferred (benefit) expense

 

 

(19,387

)

 

 

44,735

 

 

 

136,379

 

Total (benefit from) provision for income taxes

 

$

(18,336

)

 

$

44,741

 

 

$

136,374

 

The following table is a reconciliation of the Company’s (benefit from) provision for income taxes at statutory rates to the (benefit from) provision for income taxes at the Company’s effective rate for the years presented:

 

 

Year ended December 31,

 

 

2024

 

 

2023

 

 

2022

 

 

Amount

 

 

Rate

 

 

Amount

 

 

Rate

 

 

Amount

 

 

Rate

 

 

(dollars in thousands)

 

Federal income tax expense at statutory tax rate

$

29,956

 

 

 

21.0

%

 

$

51,323

 

 

 

21.0

%

 

$

13,248

 

 

 

21.0

%

Effect of non-taxable REIT (income) loss

 

(42,110

)

 

 

(29.5

)%

 

 

(18,778

)

 

 

(7.7

)%

 

 

136,465

 

 

 

216.3

%

State income taxes, net of federal benefit

 

(6,399

)

 

 

(4.6

)%

 

 

9,327

 

 

 

3.8

%

 

 

27,573

 

 

 

43.7

%

Convertible debt permanent adjustment

 

217

 

 

 

0.2

%

 

 

2,863

 

 

 

1.2

%

 

 

(6,786

)

 

 

(10.8

)%

Valuation allowance

 

—

 

 

 

—

%

 

 

—

 

 

 

(—

)%

 

 

(34,121

)

 

 

(54.0

)%

Other

 

—

 

 

 

—

%

 

 

6

 

 

 

(—

)%

 

 

(5

)

 

 

—

%

(Benefit from) provision for income taxes

$

(18,336

)

 

 

(12.9

)%

 

$

44,741

 

 

 

18.3

%

 

$

136,374

 

 

 

216.2

%

 

 

The Company’s components of the (benefit from) provision for deferred income taxes are as follows:

 

 

Year ended December 31,

 

 

2024

 

 

2023

 

 

2022

 

 

(in thousands)

 

Mortgage servicing rights

$

(42,893

)

 

$

22,924

 

 

$

157,559

 

Net operating loss carryforward

 

16,801

 

 

 

3,199

 

 

 

4,075

 

Liability for losses under representations and warranties

 

4,760

 

 

 

3,108

 

 

 

269

 

Excess interest expense disallowance

 

2,675

 

 

 

15,114

 

 

 

9,134

 

Real estate valuation loss

 

(31

)

 

 

107

 

 

 

66

 

Other

 

(699

)

 

 

283

 

 

 

(603

)

Valuation allowance

 

—

 

 

 

—

 

 

 

(34,121

)

Total provision for (benefit from) deferred income taxes

$

(19,387

)

 

$

44,735

 

 

$

136,379

 

 

The components of income taxes payable are as follows:

 

 

December 31, 2024

 

 

December 31, 2023

 

(in thousands)

 

Taxes currently (receivable)

$

(15,085

)

 

$

(8,330

)

Deferred income taxes payable

 

178,946

 

 

 

198,333

 

Income taxes payable

$

163,861

 

 

$

190,003

 

 

The tax effects of temporary differences that gave rise to deferred income tax assets and liabilities are presented below:

 

 

December 31, 2024

 

 

December 31, 2023

 

(in thousands)

 

Deferred income tax assets:

 

 

 

 

 

Net operating loss carryforward

$

101,853

 

 

$

118,655

 

Excess interest expense disallowance

 

39,829

 

 

 

42,504

 

Liability for losses under representations and warranties

 

1,684

 

 

 

6,444

 

REO valuation loss

 

102

 

 

 

71

 

Other

 

598

 

 

 

657

 

Gross deferred tax assets

 

144,066

 

 

 

168,331

 

Valuation allowance

 

—

 

 

 

—

 

Deferred tax assets after valuation allowance

 

144,066

 

 

 

168,331

 

Deferred income tax liabilities:

 

 

 

 

 

Mortgage servicing rights

 

322,023

 

 

 

364,917

 

Other

 

989

 

 

 

1,747

 

Gross deferred tax liabilities

 

323,012

 

 

 

366,664

 

Net deferred income tax liability

$

178,946

 

 

$

198,333

 

The net deferred income tax liability is recorded in Income taxes payable in the consolidated balance sheets.

The Company has net operating loss carryforwards of $384.3 million and $454.0 million at December 31, 2024 and December 31, 2023, respectively. Losses that occurred prior to 2018 expire between 2033 and 2036. Net operating losses arising in tax years beginning after December 31, 2017 can be carried forward indefinitely but their use is limited to 80% of taxable income for tax years beginning after December 31, 2020.

We evaluated the deferred tax assets of our TRS and determined a deferred tax valuation allowance is not required based on sufficient TRS GAAP income. In our evaluation, we consider, among other things, taxable loss carryback availability, expectations of sufficient future taxable income, trends in earnings, existence of taxable income in recent years, the future reversal of temporary differences, and available tax planning strategies that could be implemented, if required. We establish valuation allowances based on the consideration of all available evidence using a more-likely-than-not standard.

At December 31, 2024 and December 31, 2023, the Company had no unrecognized tax benefits and does not anticipate any increase in unrecognized tax benefits. Should the accrual of any interest or penalties relative to unrecognized tax benefits be necessary, it is the Company’s policy to record such accruals in the Company’s income tax accounts. No such accruals existed at December 31, 2024 and December 31, 2023.

The Company files U.S. federal and state income tax returns for both the REIT and the TRS. These federal income tax returns for 2021 and forward are subject to examination. The Company’s state income tax returns are generally subject to examination for 2020 and forward. California has opened an audit for tax year 2020. The audit remains open but no adjustments have been proposed. The Company does not expect any material changes from this examination as of December 31, 2024.

v3.25.0.1
Earnings Per Common Share
 12 Months Ended
Dec. 31, 2024
Earnings Per Share [Abstract]  
Earnings Per Common Share

Note 24—Earnings Per Common Share

The Company determines earnings per share using the two-class method. Under the two-class method, all earnings (distributed and undistributed) are allocated to Common Shares and participating securities based on their respective rights to receive dividends. The Company’s participating securities are grants of restricted share units that entitle the recipients to receive dividend equivalents during the vesting period on a basis equivalent to the dividends paid to holders of Common Shares.

Basic earnings per share is determined by dividing net income available to common shareholders (net income reduced by preferred dividends and income attributable to the participating securities) by the weighted average Common Shares outstanding during the period.

Diluted earnings per share is determined by dividing net income by the weighted average number of Common Shares and dilutive securities. The Company’s potentially dilutive securities are share-based compensation awards and the Exchangeable Notes. The number of dilutive securities included in diluted earnings per share is calculated using the treasury stock method for share-based compensation awards and the if-converted method for the Exchangeable Notes.

As discussed in Note 15— Long-Term Debt, effective June 21, 2024, the Company entered into a supplemental indenture affecting the terms of conversion of the 2026 Exchangeable Notes. As a result of entering into the supplemental indenture, beginning in the year ended December 31, 2024, the number of shares included in the diluted weighted average shares outstanding will represent the number of shares required to settle the obligation in excess of the unpaid balance of the notes being exchanged.

The following table summarizes the basic and diluted earnings per share calculations:

 

 

Year ended December 31,

 

 

2024

 

 

2023

 

 

2022

 

 

(in thousands except per share amounts)

 

Net income (loss)

$

160,984

 

 

$

199,654

 

 

$

(73,287

)

Dividends on preferred shares

 

(41,819

)

 

 

(41,819

)

 

 

(41,818

)

Effect of participating securities—share-based compensation awards

 

(417

)

 

 

(454

)

 

 

(408

)

Net income (loss) attributable to common shareholders

 

118,748

 

 

 

157,381

 

 

 

(115,513

)

Interest on Exchangeable Notes, net of income taxes

 

—

 

 

 

25,055

 

 

 

—

 

Loss attributable to participating securities

 

—

 

 

 

(44

)

 

 

—

 

Diluted net income (loss) attributable to common shareholders

$

118,748

 

 

$

182,392

 

 

$

(115,513

)

Weighted average basic shares outstanding

 

86,815

 

 

 

87,372

 

 

 

91,434

 

Dilutive securities:

 

 

 

 

 

 

 

 

Shares issuable pursuant to exchange of the Exchangeable Notes

 

—

 

 

 

24,328

 

 

 

—

 

Diluted weighted average shares outstanding

 

86,815

 

 

 

111,700

 

 

 

91,434

 

Basic earnings (loss) per share

$

1.37

 

 

$

1.80

 

 

$

(1.26

)

Diluted earnings (loss) per share

$

1.37

 

 

$

1.63

 

 

$

(1.26

)

 

Calculation of diluted earnings per share requires certain potentially dilutive shares to be excluded when the inclusion of such shares would be anti-dilutive. The following table summarizes the potentially dilutive shares excluded from the diluted earnings per share calculation:

 

 

Year ended December 31,

 

 

2024

 

 

2023

 

 

2022

 

 

(in thousands)

 

Shares issuable under share-based compensation plan

 

204

 

 

 

180

 

 

 

136

 

Shares issuable pursuant to exchange of the Exchangeable Notes

 

—

 

 

 

—

 

 

 

24,328

 
v3.25.0.1
Segments
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Segments

Note 25—Segments

The Company operates in three segments as described in Note 1 ‒ Organization.

The Company’s reportable segments are identified based on PMT’s investment strategies. The following disclosures about the Company’s business segments are presented consistent with the way the Company’s chief operating decision-maker organizes and evaluates financial information for making operating decisions and assessing performance. The reportable segments are evaluated based on income or loss before provision for (benefit from) income taxes. The chief operating decision-maker uses pre-tax segments results to assess segment performance and allocate operating and capital resources among the segments. The Company’s chief operating decision-maker is its chief executive officer.

During the year ended December 31, 2024, the Company adopted ASU 2023-07. Prior year amounts have been recast to conform those years’ presentations to current year presentation.

 

Financial highlights by segment are summarized below:

 

 

 

Credit

 

 

Interest rate

 

 

 

 

 

Reportable

 

 

 

 

 

 

 

 

 

sensitive

 

 

sensitive

 

 

Correspondent

 

 

segment

 

 

 

 

 

Consolidated

 

Year ended December 31, 2024

 

strategies

 

 

strategies

 

 

production

 

 

total

 

 

Corporate

 

 

total

 

 

 

(in thousands)

 

Net investment income (1):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loan servicing fees

 

$

—

 

 

$

264,540

 

 

$

—

 

 

$

264,540

 

 

$

—

 

 

$

264,540

 

Net gains on loans acquired for sale

 

 

—

 

 

 

—

 

 

 

73,124

 

 

 

73,124

 

 

 

—

 

 

 

73,124

 

Net gains (losses) on investments and
   financings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage-backed securities

 

 

6,964

 

 

 

(67,704

)

 

 

—

 

 

 

(60,740

)

 

 

—

 

 

 

(60,740

)

Loans at fair value

 

 

3,726

 

 

 

4,394

 

 

 

—

 

 

 

8,120

 

 

 

—

 

 

 

8,120

 

CRT arrangements

 

 

113,670

 

 

 

—

 

 

 

—

 

 

 

113,670

 

 

 

—

 

 

 

113,670

 

 

 

 

124,360

 

 

 

(63,310

)

 

 

—

 

 

 

61,050

 

 

 

—

 

 

 

61,050

 

Net interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

89,635

 

 

 

450,070

 

 

 

83,129

 

 

 

622,834

 

 

 

12,429

 

 

 

635,263

 

Interest expense

 

 

89,883

 

 

 

538,995

 

 

 

81,072

 

 

 

709,950

 

 

 

4,709

 

 

 

714,659

 

 

 

(248

)

 

 

(88,925

)

 

 

2,057

 

 

 

(87,116

)

 

 

7,720

 

 

 

(79,396

)

Other

 

 

(437

)

 

 

—

 

 

 

15,313

 

 

 

14,876

 

 

 

—

 

 

 

14,876

 

 

 

123,675

 

 

 

112,305

 

 

 

90,494

 

 

 

326,474

 

 

 

7,720

 

 

 

334,194

 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earned by PennyMac Financial Services, Inc.:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loan servicing fees

 

 

79

 

 

 

83,173

 

 

 

—

 

 

 

83,252

 

 

 

—

 

 

 

83,252

 

Management fees

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

28,623

 

 

 

28,623

 

Loan fulfillment fees

 

 

 

 

 

—

 

 

 

26,291

 

 

 

26,291

 

 

 

—

 

 

 

26,291

 

Professional services

 

 

—

 

 

 

—

 

 

 

3,508

 

 

 

3,508

 

 

 

9,271

 

 

 

12,779

 

Loan collection and liquidation

 

 

376

 

 

 

6,458

 

 

 

—

 

 

 

6,834

 

 

 

—

 

 

 

6,834

 

Compensation

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

5,608

 

 

 

5,608

 

Safekeeping

 

 

—

 

 

 

4,017

 

 

 

386

 

 

 

4,403

 

 

 

—

 

 

 

4,403

 

Loan origination

 

 

—

 

 

 

—

 

 

 

3,328

 

 

 

3,328

 

 

 

—

 

 

 

3,328

 

Other (2)

 

 

108

 

 

 

3,069

 

 

 

—

 

 

 

3,177

 

 

 

17,251

 

 

 

20,428

 

 

 

563

 

 

 

96,717

 

 

 

33,513

 

 

 

130,793

 

 

 

60,753

 

 

 

191,546

 

Pretax income

 

$

123,112

 

 

$

15,588

 

 

$

56,981

 

 

$

195,681

 

 

$

(53,033

)

 

$

142,648

 

Total assets at end of year

 

$

1,474,751

 

 

$

10,322,044

 

 

$

2,170,638

 

 

$

13,967,433

 

 

$

441,273

 

 

$

14,408,706

 

 

(1)
All income from external customers. The segments do not recognize intersegment income.
(2)
Other expense includes smaller balance expense categories not separately provided to the chief operating decision maker such as insurance and technology.

 

 

Credit

 

 

Interest rate

 

 

 

 

 

Reportable

 

 

 

 

 

 

 

 

 

sensitive

 

 

sensitive

 

 

Correspondent

 

 

segment

 

 

 

 

 

Consolidated

 

Year ended December 31, 2023

 

strategies

 

 

strategies

 

 

production

 

 

total

 

 

Corporate

 

 

total

 

 

 

(in thousands)

 

Net investment income (1):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loan servicing fees

 

$

—

 

 

$

288,608

 

 

$

—

 

 

$

288,608

 

 

$

—

 

 

$

288,608

 

Net gains on loans acquired for sale

 

 

—

 

 

 

—

 

 

 

39,857

 

 

 

39,857

 

 

 

—

 

 

 

39,857

 

Net gains (losses) on investments and
   financings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage-backed securities

 

 

35,625

 

 

 

(43,842

)

 

 

—

 

 

 

(8,217

)

 

 

—

 

 

 

(8,217

)

Loans at fair value

 

 

2,597

 

 

 

1,164

 

 

 

—

 

 

 

3,761

 

 

 

—

 

 

 

3,761

 

CRT arrangements

 

 

182,555

 

 

 

—

 

 

 

—

 

 

 

182,555

 

 

 

—

 

 

 

182,555

 

 

 

 

220,777

 

 

 

(42,678

)

 

 

—

 

 

 

178,099

 

 

 

—

 

 

 

178,099

 

Net interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

98,996

 

 

 

436,021

 

 

 

93,733

 

 

 

628,750

 

 

 

11,157

 

 

 

639,907

 

Interest expense

 

 

86,963

 

 

 

549,010

 

 

 

96,054

 

 

 

732,027

 

 

 

3,941

 

 

 

735,968

 

 

 

12,033

 

 

 

(112,989

)

 

 

(2,321

)

 

 

(103,277

)

 

 

7,216

 

 

 

(96,061

)

Other

 

 

(186

)

 

 

—

 

 

 

18,703

 

 

 

18,517

 

 

 

—

 

 

 

18,517

 

 

 

232,624

 

 

 

132,941

 

 

 

56,239

 

 

 

421,804

 

 

 

7,216

 

 

 

429,020

 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earned by PennyMac Financial Services, Inc.:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loan servicing fees

 

 

166

 

 

 

81,180

 

 

 

—

 

 

 

81,346

 

 

 

—

 

 

 

81,346

 

Management fees

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

28,762

 

 

 

28,762

 

Loan fulfillment fees

 

 

—

 

 

 

—

 

 

 

27,827

 

 

 

27,827

 

 

 

—

 

 

 

27,827

 

Professional services

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

7,621

 

 

 

7,621

 

Loan collection and liquidation

 

 

1,743

 

 

 

2,819

 

 

 

—

 

 

 

4,562

 

 

 

—

 

 

 

4,562

 

Compensation

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

7,106

 

 

 

7,106

 

Safekeeping

 

 

—

 

 

 

3,240

 

 

 

526

 

 

 

3,766

 

 

 

—

 

 

 

3,766

 

Loan origination

 

 

—

 

 

 

—

 

 

 

4,601

 

 

 

4,601

 

 

 

1

 

 

 

4,602

 

Other (2)

 

 

411

 

 

 

1,109

 

 

 

—

 

 

 

1,520

 

 

 

17,513

 

 

 

19,033

 

 

 

2,320

 

 

 

88,348

 

 

 

32,954

 

 

 

123,622

 

 

 

61,003

 

 

 

184,625

 

Pretax income

 

$

230,304

 

 

$

44,593

 

 

$

23,285

 

 

$

298,182

 

 

$

(53,787

)

 

$

244,395

 

Total assets at end of year

 

$

1,632,431

 

 

$

10,281,904

 

 

$

788,771

 

 

$

12,703,106

 

 

$

410,781

 

 

$

13,113,887

 

 

(1)
All income from external customers. The segments do not recognize intersegment income.
(2)
Other expense includes smaller balance expense categories not separately provided to the chief operating decision maker such as insurance and technology.

 

 

Credit

 

 

Interest rate

 

 

 

 

 

Reportable

 

 

 

 

 

 

 

 

 

sensitive

 

 

sensitive

 

 

Correspondent

 

 

segment

 

 

 

 

 

Consolidated

 

Year ended December 31, 2022

 

strategies

 

 

strategies

 

 

production

 

 

total

 

 

Corporate

 

 

total

 

 

 

(in thousands)

 

Net investment income (1):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loan servicing fees

 

$

—

 

 

$

909,551

 

 

$

—

 

 

$

909,551

 

 

$

—

 

 

$

909,551

 

Net gains on loans acquired for sale

 

 

5

 

 

 

—

 

 

 

25,687

 

 

 

25,692

 

 

 

—

 

 

 

25,692

 

Net gains (losses) on investments and
   financings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage-backed securities

 

 

(6,774

)

 

 

(569,984

)

 

 

—

 

 

 

(576,758

)

 

 

—

 

 

 

(576,758

)

Loans at fair value

 

 

(21,828

)

 

 

4,936

 

 

 

—

 

 

 

(16,892

)

 

 

—

 

 

 

(16,892

)

CRT arrangements

 

 

(65,137

)

 

 

—

 

 

 

—

 

 

 

(65,137

)

 

 

—

 

 

 

(65,137

)

 

 

 

(93,739

)

 

 

(565,048

)

 

 

—

 

 

 

(658,787

)

 

 

—

 

 

 

(658,787

)

Net interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

38,810

 

 

 

238,527

 

 

 

103,065

 

 

 

380,402

 

 

 

3,392

 

 

 

383,794

 

Interest expense

 

 

52,385

 

 

 

285,304

 

 

 

70,531

 

 

 

408,220

 

 

 

2,200

 

 

 

410,420

 

 

 

(13,575

)

 

 

(46,777

)

 

 

32,534

 

 

 

(27,818

)

 

 

1,192

 

 

 

(26,626

)

Other

 

 

537

 

 

 

—

 

 

 

52,857

 

 

 

53,394

 

 

 

547

 

 

 

53,941

 

 

 

(106,772

)

 

 

297,726

 

 

 

111,078

 

 

 

302,032

 

 

 

1,739

 

 

 

303,771

 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earned by PennyMac Financial Services, Inc.:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loan servicing fees

 

 

219

 

 

 

81,696

 

 

 

—

 

 

 

81,915

 

 

 

—

 

 

 

81,915

 

Management fees

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

31,065

 

 

 

31,065

 

Loan fulfillment fees

 

 

—

 

 

 

—

 

 

 

67,991

 

 

 

67,991

 

 

 

—

 

 

 

67,991

 

Professional services

 

 

—

 

 

 

—

 

 

 

1,987

 

 

 

1,987

 

 

 

7,582

 

 

 

9,569

 

Loan collection and liquidation

 

 

3,863

 

 

 

1,533

 

 

 

—

 

 

 

5,396

 

 

 

—

 

 

 

5,396

 

Compensation

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

5,941

 

 

 

5,941

 

Safekeeping

 

 

—

 

 

 

6,695

 

 

 

1,506

 

 

 

8,201

 

 

 

—

 

 

 

8,201

 

Loan origination

 

 

—

 

 

 

—

 

 

 

12,036

 

 

 

12,036

 

 

 

—

 

 

 

12,036

 

Other (2)

 

 

1,712

 

 

 

—

 

 

 

1

 

 

 

1,713

 

 

 

16,857

 

 

 

18,570

 

 

 

5,794

 

 

 

89,924

 

 

 

83,521

 

 

 

179,239

 

 

 

61,445

 

 

 

240,684

 

Pretax income

 

$

(112,566

)

 

$

207,802

 

 

$

27,557

 

 

$

122,793

 

 

$

(59,706

)

 

$

63,087

 

Total assets at end of year

 

$

1,614,977

 

 

$

9,991,621

 

 

$

1,936,797

 

 

$

13,543,395

 

 

$

378,169

 

 

$

13,921,564

 

 

(1)
All income from external customers. The segments do not recognize intersegment income.
(2)
Other expense includes smaller balance expense categories not separately provided to the chief operating decision maker such as insurance and technology.
v3.25.0.1
Regulatory Capital and Liquidity Requirements
 12 Months Ended
Dec. 31, 2024
Mortgage Banking [Abstract]  
Regulatory Capital and Liquidity Requirements

Note 26—Regulatory Capital and Liquidity Requirements

The Company, through PMC, is subject to financial eligibility requirements established by the Federal Housing Finance Agency for sellers/servicers eligible to sell or service mortgage loans with Fannie Mae and Freddie Mac.

The Agencies’ capital and liquidity amounts and requirements are summarized below:

 

 

Net worth (1)

 

 

Tangible net worth /
total assets ratio (1)

 

 

Liquidity (1)

 

December 31,

 

Actual

 

 

Required

 

 

Actual

 

 

Required

 

 

Actual

 

 

Required

 

 

 

(dollars in thousands)

 

2024

 

$

876,324

 

 

$

579,383

 

 

 

12

%

 

 

6

%

 

$

564,311

 

 

$

215,801

 

2023

 

$

874,628

 

 

$

584,131

 

 

 

15

%

 

 

6

%

 

$

450,210

 

 

$

210,691

 

 

(1)
Calculated in accordance with the Agencies’ requirements.

Noncompliance with the Agencies’ capital and liquidity requirements can result in the Agencies taking various remedial actions up to and including removing the Company’s ability to sell loans to and service loans on behalf of the Agencies.
v3.25.0.1
Parent Company Information
 12 Months Ended
Dec. 31, 2024
Condensed Financial Information Disclosure [Abstract]  
Parent Company Information

Note 27—Parent Company Information

The Company’s debt financing agreements require PMT and certain of its subsidiaries to comply with financial covenants that include a minimum tangible net worth as summarized below:

 

 

 

December 31, 2024

 

Company consolidated

 

Debt covenant
requirement

 

 

Actual
balance (1)

 

 

 

(in thousands)

 

PennyMac Mortgage Investment Trust

 

$

1,250,000

 

 

$

1,937,098

 

PennyMac Operating Partnership, L.P.

 

$

1,250,000

 

 

$

2,033,289

 

PennyMac Holdings, LLC

 

$

250,000

 

 

$

923,023

 

PennyMac Corp.

 

$

300,000

 

 

$

970,410

 

 

(1)
Calculated in accordance with the lenders’ requirements.

The Company’s subsidiaries are limited from transferring funds to the Parent by these minimum tangible net worth requirements.

 

PENNYMAC MORTGAGE INVESTMENT TRUST

CONDENSED BALANCE SHEETS

 

Following are condensed parent-only financial statements for the Company:

 

 

 

December 31,

 

 

 

2024

 

 

2023

 

 

 

(in thousands)

 

Assets

 

 

 

 

 

 

Cash

 

$

845

 

 

$

—

 

Short-term investment

 

 

—

 

 

 

603

 

Investments in subsidiaries

 

 

2,265,779

 

 

 

2,257,831

 

Due from subsidiaries

 

 

608

 

 

 

169

 

Due from affiliates

 

 

—

 

 

 

55

 

Other assets

 

 

844

 

 

 

846

 

Total assets

 

$

2,268,076

 

 

$

2,259,504

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

Dividends payable

 

$

34,838

 

 

$

34,750

 

Capital notes due to subsidiaries

 

 

228,280

 

 

 

203,130

 

Unsecured senior notes

 

 

51,538

 

 

 

51,115

 

Accounts payable and accrued liabilities

 

 

—

 

 

 

19

 

Due to affiliates

 

 

503

 

 

 

—

 

Due to subsidiaries

 

 

3,582

 

 

 

1,777

 

Total liabilities

 

 

318,741

 

 

 

290,791

 

Shareholders' Equity

 

 

1,949,335

 

 

 

1,968,713

 

Total liabilities and shareholders' equity

 

$

2,268,076

 

 

$

2,259,504

 

 

PENNYMAC MORTGAGE INVESTMENT TRUST

CONDENSED STATEMENTS OF OPERATIONS

 

 

 

Year ended December 31,

 

 

 

2024

 

 

2023

 

 

2022

 

 

 

(in thousands)

 

Income

 

 

 

 

 

 

 

 

 

Dividends from subsidiaries

 

$

180,695

 

 

$

182,043

 

 

$

214,885

 

Interest income

 

 

 

 

 

 

 

 

 

from nonaffiliates

 

 

64

 

 

 

—

 

 

 

—

 

from affiliates

 

 

99

 

 

 

54

 

 

 

8

 

Total income

 

 

180,858

 

 

 

182,097

 

 

 

214,893

 

Expenses

 

 

 

 

 

 

 

 

 

Interest expense:

 

 

 

 

 

 

 

 

 

To nonaffiliates

 

 

5,018

 

 

 

1,355

 

 

 

—

 

To affiliates

 

 

20,908

 

 

 

22,829

 

 

 

14,244

 

Other

 

 

2

 

 

 

13

 

 

 

71

 

Total expenses

 

 

25,928

 

 

 

24,197

 

 

 

14,315

 

Income before provision for (benefit from) income taxes and
   distribution in excess of earnings

 

 

154,930

 

 

 

157,900

 

 

 

200,578

 

Provision for (benefit from) income taxes

 

 

—

 

 

 

6

 

 

 

(5

)

Income before equity in undistributed earnings of subsidiaries

 

 

154,930

 

 

 

157,894

 

 

 

200,583

 

Increase in undistributed earnings of subsidiaries
   (distributions in excess of earnings of subsidiaries)

 

 

5,266

 

 

 

32,591

 

 

 

(251,409

)

Net income (loss)

 

$

160,196

 

 

$

190,485

 

 

$

(50,826

)

 

PENNYMAC MORTGAGE INVESTMENT TRUST

CONDENSED STATEMENTS OF CASH FLOWS

 

 

 

Year ended December 31,

 

 

 

2024

 

 

2023

 

 

2022

 

 

 

(in thousands)

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

160,196

 

 

$

190,485

 

 

$

(50,826

)

Adjustments to reconcile net income (loss) to net cash provided by
   operating activities:

 

 

 

 

 

 

 

 

 

(Equity in undistributed earnings of subsidiaries) distributions in
   excess of earnings of subsidiaries

 

 

(5,265

)

 

 

(32,591

)

 

 

251,409

 

Amortization of debt issuance costs

 

 

471

 

 

 

110

 

 

 

—

 

Decrease in due from subsidiaries

 

 

357

 

 

 

638

 

 

 

753

 

Decrease (increase) in due from affiliates

 

 

558

 

 

 

(335

)

 

 

(141

)

Decrease (increase) in other assets

 

 

2

 

 

 

58

 

 

 

(903

)

Increase in accounts payable and accrued liabilities

 

 

(19

)

 

 

(323

)

 

 

(891

)

Increase in due to affiliates

 

 

1,805

 

 

 

191

 

 

 

1,342

 

Net cash provided by operating activities

 

 

158,105

 

 

 

158,233

 

 

 

200,743

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

 

Net decrease (increase) in short-term investments

 

 

603

 

 

 

(96

)

 

 

3,035

 

Net cash provided by (used in) investing activities

 

 

603

 

 

 

(96

)

 

 

3,035

 

Cash flows from financing activities:

 

 

 

 

 

 

 

 

 

Issuance of unsecured senior notes

 

 

—

 

 

 

53,500

 

 

 

—

 

Payment of debt issuance costs

 

 

(48

)

 

 

(2,495

)

 

 

—

 

Net increase in intercompany unsecured note payable

 

 

25,150

 

 

 

2,350

 

 

 

100,101

 

Payment of withholding taxes related to share-based compensation

 

 

(1,846

)

 

 

(567

)

 

 

(522

)

Payment of dividends to preferred shareholders

 

 

(41,819

)

 

 

(41,818

)

 

 

(41,819

)

Payment of dividends to common shareholders

 

 

(139,300

)

 

 

(140,617

)

 

 

(173,546

)

Repurchase of Common Shares

 

 

—

 

 

 

(28,490

)

 

 

(87,992

)

Net cash (used in) financing activities

 

 

(157,863

)

 

 

(158,137

)

 

 

(203,778

)

Net change in cash

 

 

845

 

 

 

—

 

 

 

—

 

Cash at beginning of year

 

 

—

 

 

 

—

 

 

 

—

 

Cash at end of year

 

$

845

 

 

$

—

 

 

$

—

 

 

 

 

 

 

 

 

 

 

Non-cash investing activities:

 

 

 

 

 

 

 

 

 

Investment in subsidiary pursuant to share based compensation plan

 

$

3,476

 

 

$

5,204

 

 

$

4,309

 

Non-cash financing activities:

 

 

 

 

 

 

 

 

 

Contribution of equity to subsidiary pursuant to share based compensation plan

 

$

3,476

 

 

$

5,204

 

 

$

4,309

 

Dividends payable

 

$

34,838

 

 

$

34,750

 

 

$

35,658

 
v3.25.0.1
Subsequent Events
 12 Months Ended
Dec. 31, 2024
Subsequent Events [Abstract]  
Subsequent Events

Note 28—Subsequent Events

Management has evaluated all events and transactions through the date the Company issued these consolidated financial statements. During this period:

•
On February 11, 2025, the Company issued $172.5 million in principal amount of 9.00% unsecured senior notes due February, 15, 2030 that will be fully and unconditionally guaranteed on a senior unsecured basis by PMC, including the due and punctual payment of principal and interest, whether at stated maturity, upon acceleration, call for redemption or otherwise.
•
All agreements to repurchase assets that matured before the date of this Report were extended or renewed.
v3.25.0.1
Significant Accounting Policies (Policies)
 12 Months Ended
Dec. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Segment Reporting

PennyMac Mortgage Investment Trust (“PMT” or the “Company”) is a specialty finance company, which, through its subsidiaries (all of which are wholly-owned), invests in residential mortgage-related assets. The Company operates in three operating and reportable segments: credit sensitive strategies, interest rate sensitive strategies and correspondent production. All other activities are included in corporate:

•
The credit sensitive strategies segment represents the Company’s investments in credit risk transfer (“CRT”) arrangements referencing loans from its own correspondent production (“CRT arrangements”) and subordinate mortgage-backed securities (“MBS”).
•
The interest rate sensitive strategies segment represents the Company’s investments in mortgage servicing rights (“MSRs”), Agency and senior non-Agency MBS and the related interest rate hedging activities.
•
The correspondent production segment represents the Company’s operations aimed at serving as an intermediary between lenders and the capital markets by purchasing, pooling and reselling newly originated prime credit quality loans either directly or in the form of MBS, using the services of PNMAC Capital Management, LLC (“PCM”) and PennyMac Loan Services, LLC (“PLS”), both wholly-owned subsidiaries of PennyMac Financial Services, Inc. (“PFSI”), a publicly-traded mortgage banking and investment management company separately listed on the New York Stock Exchange.
•
The Company primarily sells the loans it acquires through its correspondent production activities to government-sponsored entities ("GSEs") such as the Federal National Mortgage Association (“Fannie Mae”) and the Federal Home Loan Mortgage Corporation (“Freddie Mac”) or to PLS primarily for sale into securitizations guaranteed by the Government National Mortgage Association ("Ginnie Mae"), or the GSEs. Fannie Mae, Freddie Mac and Ginnie Mae are each referred to as an “Agency” and, collectively, as the “Agencies.” The company also securitizes certain of its loans directly and may retain interests, such as subordinate MBS, from such securitizations.
•
Corporate activities include management fees, corporate expense amounts and certain interest income and expense. None of the corporate activities qualify as reportable segments.

The Company conducts substantially all of its operations and makes substantially all of its investments through its subsidiary, PennyMac Operating Partnership, L.P. (the “Operating Partnership”), and the Operating Partnership’s subsidiaries. A wholly-owned subsidiary of the Company is the sole general partner, and the Company is the sole limited partner, of the Operating Partnership.

The Company believes that it qualifies, and has elected to be taxed, as a real estate investment trust (“REIT”) under the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”). To maintain its tax status as a REIT, the Company is required to distribute at least 90% of its taxable income in the form of qualifying distributions to shareholders.
Basis of Presentation

Basis of Presentation

The Company’s 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.

Use of Estimates

Use of Estimates

Preparation of financial statements in compliance with GAAP requires the Company to make estimates and judgments 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.

Consolidation

Consolidation

The consolidated financial statements include the accounts of PMT and all wholly-owned subsidiaries. PMT has no significant equity method or cost-basis investments. Intercompany accounts and transactions are eliminated upon consolidation. The Company also consolidates the assets and liabilities included in certain VIEs discussed below.

Variable Interest Entities

The Company enters into various types of on- and off-balance sheet transactions with special purpose entities (“SPEs”), which are trusts that are established for a limited purpose. Generally, SPEs are formed in connection with securitization transactions. In a securitization transaction, the Company transfers assets on its balance sheet to an SPE, which then issues various forms of beneficial interests in those assets to investors. In a securitization transaction, the Company typically receives a combination of cash and beneficial interests in the SPE in exchange for the assets transferred by the Company.

SPEs are generally VIEs. A VIE is an entity having either a total equity investment at risk that is insufficient to finance its activities without additional subordinate financial support or whose equity investors at risk lack the ability to control the entity’s activities. Variable interests are investments or other interests that will absorb portions of a VIE’s expected losses or receive portions of the VIE’s expected residual returns. Expected residual returns represent the expected positive variability in the fair value of a VIE’s net assets.

GAAP requires that a VIE be consolidated by its primary beneficiary. The primary beneficiary is the party that has both the power to direct the activities that most significantly impact the economic performance of the VIE and holds a variable interest that could potentially be significant to the VIE. To determine whether a variable interest the Company holds could potentially be significant to the VIE, the Company considers both qualitative and quantitative factors regarding the nature, size and form of its involvement with the VIE.

PMT evaluates the securitization trust holding the assets to determine whether the entity is a VIE and whether the Company is the primary beneficiary and therefore is required to consolidate the securitization trust. The Company evaluates whether it is the primary beneficiary of a VIE on an ongoing basis.

Credit Risk Transfer Arrangements

The Company holds CRT arrangements with Fannie Mae, pursuant to which its subsidiary PennyMac Corp. (“PMC”), through subsidiary trust entities, sold pools of loans into Fannie Mae-guaranteed loan securitizations while retaining recourse obligations for credit losses and IO ownership interests in such loans. Loans subject to the CRT arrangements were transferred by PMC to subsidiary trust entities which sold the loans into Fannie Mae loan securitizations. Transfers of loans subject to CRT arrangements received sale accounting treatment.

The Company has concluded that its subsidiary trust entities holding its CRT arrangements are VIEs and the Company is the primary beneficiary of the VIEs as it is the holder of the primary beneficial interests which absorb the variability of the trusts’ results of operations. Consolidation of the VIEs results in the inclusion on the Company’s consolidated balance sheet of the fair value of the recourse obligations and retained IO ownership interests, in the form of derivative and IO strip assets and liabilities, the deposits pledged to fulfill the recourse obligations and an IO security payable at fair value. The deposits represent the Company’s maximum contractual exposure to claims under its recourse obligations and are the sole source of settlement of losses under the CRT arrangements. Gains and losses on the derivative and IO strip assets and liabilities related to CRT arrangements are included in Net gains (losses) on investments and financings in the consolidated statements of operations.

Subordinate Mortgage-Backed Securities

The Company retains or purchases subordinate MBS backed by loans secured by investment properties or fixed-rate prime jumbo loans in transactions sponsored by PMC or a nonaffiliate. Subordinate MBS provide the Company with a higher yield than senior securities. However, the Company retains credit risk in the subordinate MBS since they are the first securities to absorb credit losses relating to the underlying loans.

Cash inflows from the loans underlying subordinate MBS are distributed to investors and service providers in accordance with the contractual priority of payments and, as such, most of these inflows must be directed first to service and repay the senior certificates. The rights of holders of the subordinate certificates to receive distributions of principal and/or interest, as applicable, are subordinate to the rights of holders of the senior certificates. After the senior certificates are repaid, substantially all cash inflows will be directed to the subordinate certificates, including those held by the Company, until they are fully repaid.

Whether the Company concludes that it is the primary beneficiary of the VIEs issuing the subordinate MBS and therefore consolidates these entities is based on its exposure to losses that could be significant to the VIEs and its power to direct activities that most significantly impact the VIEs’ economic performance:

•
Certain of the Company’s investments in subordinate MBS either do not expose the Company to losses or residual returns that could be significant to the issuing VIE or the Company has concluded that it does not have the power to direct the activities that most significantly impact the VIE’s economic performance. These investments are classified as subordinate credit-linked securities in the Company’s investment in MBS as shown in Note 8 – Mortgage-Backed Securities.
•
For other investments in subordinate MBS, comprised of transactions backed by loans purchased by the Company that were subsequently included in securitizations sponsored by the Company or a nonaffiliate and serviced by PLS, the Company concluded that it is the primary beneficiary of the VIEs as it (1) has the power, through PLS, in its role as the servicer or sub-servicer of the majority of the loans, to direct the activities of the VIEs that most significantly impact the VIEs’ economic performance and, (2) as a holder of subordinate securities, is exposed to losses or residual returns that could potentially be significant to the VIEs. PMT consolidates the VIEs that issue those subordinate MBS.

For financial reporting purposes, the loans owned by the consolidated VIEs are included in Loans at fair value and the securities issued to nonaffiliates by the consolidated VIEs are included in Asset-backed financings at fair value on the Company’s consolidated balance sheets. Both the Loans at fair value and the Asset-backed financings at fair value included in the consolidated VIEs are also included in a separate statement following the Company’s consolidated balance sheets. The Company previously recognized MSRs

relating to loans owned by one of the consolidated VIEs. Upon purchase of the subordinate securities and consolidation of the VIE, the Company recombined the MSRs with the loans in the VIE to Loans at fair value.

The Company recognizes the interest income earned on the loans owned by the VIEs and the interest expense attributable to the asset-backed securities issued to nonaffiliates by the VIEs on its consolidated statements of operations.

The Company expects that any credit losses in the pools of securitized assets will likely be limited to the Company’s subordinate and residual interests. The Company has no obligation to repurchase or replace securitized assets that subsequently become delinquent or are otherwise in default other than pursuant to breaches of representations and warranties.

Financing of Mortgage Servicing Assets

The Company entered into securitization transactions in which it pledged participation interest in its MSRs to VIEs which issued variable funding notes and term debt backed by the participation certificates. The Company holds and acts as guarantor of the variable funding notes and term debt. The Company determined that it is the primary beneficiary of the VIEs because as the holder of the variable funding notes and issuer of performance guarantees, it holds the variable interests in the VIEs. Therefore, PMT consolidates the VIEs.

For financial reporting purposes, the MSRs financed by the consolidated VIEs are included in Mortgage servicing rights at fair value, the variable funding notes sold under agreements to repurchase are included in Assets sold under agreements to repurchase and the term debt is included in Notes payable secured by credit risk transfer and mortgage servicing assets on the Company’s consolidated balance sheets. The financing is detailed in Note 15 – Long-Term Debt.

Fair Value

Fair Value

The Company’s consolidated financial statements include assets and liabilities that are measured at or based on their fair values. Measurement at or based on fair value may be on a recurring or nonrecurring basis depending on the accounting principles applicable to the specific asset or liability and whether the Company has elected to carry the item at its fair value as discussed in the following paragraphs.

The Company groups its assets and liabilities at fair value in three levels, based on the markets in which the assets and liabilities are traded and the observability of the inputs used to determine fair value. These levels are:

•
Level 1—Quoted prices in active markets for identical assets or liabilities.
•
Level 2—Prices determined or determinable using other significant observable inputs. Observable inputs are inputs that other market participants would use in pricing an asset or liability and are developed based on market data obtained from sources independent of the Company.
•
Level 3—Prices determined using significant unobservable inputs. In situations where significant 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.

The Company reclassifies its assets and liabilities between levels of the fair value hierarchy when the inputs required to establish fair value at a level of the fair value hierarchy are no longer readily available, requiring the use of lower-level inputs, or when the inputs required to establish fair value at a higher level of the hierarchy become available.

Fair Value Accounting Elections

The Company identified all of its non-cash financial assets and MSRs to be accounted for at fair value. The Company has elected to account for these assets at fair value so such changes in fair value will be reflected in results of operations as they occur and more timely reflect the results of the Company’s performance.

The Company has also identified its Asset-backed financings of variable interest entities at fair value and Interest-only security payable at fair value to be accounted for at fair value to reflect the generally offsetting changes in fair value of these borrowings to changes in fair value of the assets carried at fair value collateralizing these financings. For other borrowings, the Company has determined

that historical cost accounting is more appropriate because under this method, debt issuance costs are amortized over the term of the debt facility, thereby matching the debt issuance cost to the periods benefiting from the availability of the debt.

Short-Term Investments

Short-Term Investments

Short-term investments are carried at fair value with changes in fair value recognized in current period results of operations. Short-term investments represent deposit accounts. The Company categorizes its short-term investments as “Level 1” fair value assets.

Mortgage-Backed Securities

Mortgage-Backed Securities

The Company’s investments in MBS are carried at fair value with changes in fair value recognized in current period results of operations. Changes in fair value arising from amortization of purchase premiums and accrual of unearned discounts are recognized using the interest method and are included in Interest income. Changes in fair value arising from other factors are included in Net gains (losses) on investments and financings. Purchases and sales of MBS are recorded as of the trade date. The Company categorizes its investments in Agency pass-through, senior non-Agency, subordinate credit linked MBS and principal-only stripped MBS as “Level 2” fair value assets. The Company classifies its investments in interest-only stripped MBS as “Level 3” fair value assets.

Interest Income Recognition

Interest income on MBS is recognized over the life of the security using the interest method. The Company estimates, at the time of purchase, the future expected cash flows and determines the effective interest rate based on the estimated cash flows and the security’s purchase price. The Company updates its cash flow estimates monthly.
Loans

Loans

Loans are carried at their fair values with changes in fair value recognized in current period results of operations. Changes in fair value, other than changes in fair value attributable to accrual of unearned discounts and amortization of purchase premiums, are included in Net gains (losses) on investments and financings for loans classified as Loans at fair value and Net gains on loans acquired for sale for loans classified as Loans acquired for sale at fair value. Changes in fair value attributable to accrual of unearned discounts and amortization of purchase premiums are included in Interest income on the consolidated statements of operations. The Company categorizes its Loans acquired for sale at fair value that are readily saleable into active markets with observable inputs that are significant to their fair values and its Loans at fair value held in VIEs as “Level 2” fair value assets. The Company categorizes all other loans as “Level 3” fair value assets.

Sale Recognition

The Company purchases from and sells loans into 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 arising from the representations and warranties it makes to purchasers and insurers of the loans.

The Company recognizes transfers of loans as sales based on whether the transfer is made to a VIE:

•
For loans that are transferred to a VIE, the Company recognizes the transfer as a sale when it determines that the Company is not the primary beneficiary of the VIE.
•
For loans that are not transferred to a VIE, the Company recognizes the transfer as a sale when it surrenders control over the loans. Control over transferred loans is deemed to be surrendered when
(i)
the loans have been isolated from the Company,
(ii)
the transferee has the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred loans, and
(iii)
the Company does not maintain effective control over the transferred loans through either:
a.
an agreement that entitles and obligates the Company to repurchase or redeem the loans before their maturity; or
b.
the ability to unilaterally cause the holder to return specific loans.

 

Interest Income Recognition

The Company has the ability but not the intent to hold loans acquired for sale and loans at fair value other than loans held in VIEs for the foreseeable future. Therefore, interest income on loans acquired for sale and loans at fair value other than loans held in VIEs is recognized over the life of the loans using their contractual interest rates.

The Company has both the ability and intent to hold loans held in VIEs for the foreseeable future. Therefore, interest income on loans held in VIEs is recognized over the estimated remaining life of the loans using the interest method. Unearned discounts and purchase premiums are accrued and amortized to interest income using the effective interest rate inherent in the estimated cash flows from the loans.

Income recognition is suspended and the accrued unpaid interest receivable is reversed against interest income when a loan becomes 90 days delinquent. Income recognition is resumed when the loan becomes contractually current.

Derivative and Credit Risk Transfer Strip Assets and Liabilities

Derivative and Credit Risk Transfer Strip Assets and Liabilities

The Company holds and issues derivative financial instruments in connection with its operating, investing and financing activities. Derivative financial instruments are created as a result of certain of the Company’s operations and the Company also enters into derivative transactions as part of its interest rate risk management activities.

Derivative financial instruments created as a result of the Company’s operations include:

•
Interest rate lock commitments (“IRLCs”) that are created when the Company commits to purchase loans for sale; and
•
CRT Agreements whereby the Company retained a recourse obligation relating to certain loans it sold into Fannie Mae guaranteed securitizations as part of the retention of an IO ownership interest in such loans.

The Company engages in interest rate risk management activities in an effort to reduce the variability of its results of operations caused by the effects of changes in interest rates on the fair value of certain of its assets and liabilities. The Company bears price risk related to its mortgage production, servicing, and MBS financing activities due to changes in market interest rates as discussed below:

•
The Company is exposed to loss if market mortgage interest rates increase because market interest rate increases generally cause the fair value of MBS (other than IO stripped MBS), IRLCs and loans acquired for sale to decrease.
•
The Company is exposed to losses if market mortgage interest rates decrease because market interest rate decreases generally cause the fair value of MSRs and IO stripped MBS to decrease.

To manage the price risk resulting from these interest rate risks, the Company uses derivative financial instruments with the intention of moderating the risk that changes in market interest rates will result in unfavorable changes in the fair value of the Company’s inventory of loans acquired for sale, IRLCs, MSRs and MBS financing.

The Company records all derivative and CRT strip assets and liabilities at fair value and records changes in fair value in current period results of operations. The Company does not designate and qualify any of its derivative financial instruments for hedge accounting.

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. IRLC and CRT derivatives are categorized by the Company as “Level 3” fair value assets and liabilities.

Cash flows from derivative financial instruments relating to hedging of IRLCs and loans acquired for sale are included in Cash flows from operating activities in Sale to nonaffiliates and repayment of loans acquired for sale. Cash flows from derivative financial instruments relating to hedging of MSRs are included in Cash flows from investing activities.

Real Estate Acquired in Settlement of Loans

Real Estate Acquired in Settlement of Loans

Real estate acquired in settlement of loans (“REO”) is measured at the lower of the acquisition cost of the property (as measured by the fair value of the loan immediately before acquisition of the property in settlement of a loan) or its fair value reduced by estimated costs to sell. Changes in fair value to levels that are less than or equal to acquisition cost and gains or losses on sale of REO are recognized in the consolidated statements of operations under the caption Results of real estate acquired in settlement of loans. The Company categorizes REO as “Level 3” fair value assets.
Mortgage Servicing Rights

Mortgage Servicing Rights

MSRs arise from contractual agreements between the Company and investors (or their agents) in mortgage securities and loans. Under these agreements, the Company is obligated to provide loan servicing functions in exchange for fees and other remuneration. The

servicing functions typically performed include, among other responsibilities, collecting and remitting loan payments; responding to borrower inquiries; accounting for principal and interest, holding custodial (impounded) funds for payment of property taxes and insurance premiums; counseling delinquent mortgagors, administering loss mitigation activities, including modification and forbearance programs; and supervising foreclosures and property dispositions. The Company has engaged PFSI to provide these services on its behalf.

The Company recognizes MSRs initially at their fair values, either as proceeds from sales of loans where the Company assumes the obligation to service the loan in the sale transaction, or from the purchase of MSRs. The Company categorizes MSRs as “Level 3” fair value assets.

Servicing Advances

Servicing Advances

Servicing advances represent advances made on behalf of borrowers and the loans’ investors to fund property tax and insurance premiums for impounded loans with inadequate impound balances and for non-impounded loans with delinquent property taxes or insurance premiums and out of pocket collection costs for delinquent loans (e.g., preservation and restoration of mortgaged property, legal fees, appraisals and insurance premiums). Servicing advances are made in accordance with the Company’s servicing agreements and, when made, are deemed recoverable. The Company periodically reviews servicing advances for collectability. Servicing advances are written off when they are deemed uncollectible.

Borrowings

Borrowings

Borrowings, other than Asset-backed financings of variable interest entities at fair value and Interest-only security payable at fair value, are carried at amortized cost. Costs of creating the facilities underlying the agreements are included in the carrying value of the borrowing facilities and are accrued to Interest expense over the term of revolving borrowing facilities on the straight-line basis and over non-revolving borrowings’ contractual lives using the interest method.

Asset-Backed Financings of Variable Interest Entities at Fair Value and Interest-Only Security Payable at Fair Value

The certificates issued to nonaffiliates by the Company relating to the asset-backed financings and the IO security payable are recorded as borrowings. Certificates issued to nonaffiliates have the right to receive principal and/or interest payments of the loans held by the consolidated VIEs. Asset-backed financings of variable interest entities at fair value and Interest-only security payable at fair value are carried at fair value. Changes in fair value are recognized in current period results of operations as a component of Net gains (losses) on investments and financings. Issuance discounts and cost are accrued to Interest expense over the estimated lives of these borrowings using the interest method. The Company categorizes Asset-backed financings of variable interest entities at fair value as “Level 2” fair value liabilities and the Interest-only security payable at fair value as a “Level 3” fair value liability.
Liability for Losses Under Representation and Warranties

Liability for Losses Under Representations and Warranties

The Company’s sales agreements include representations and warranties related to the loans the Company sells to the Agencies and other investors. The representations and warranties require adherence to Agency and other investor origination and underwriting guidelines, including but not limited to the validity of the lien securing the loan, property eligibility, property value, loan amount, borrower credit, income and asset requirements, and compliance with applicable federal, state and local law. The Company provides for its estimate of the fair value of the losses that it expects to incur as a result of its breach of the representations and warranties that it provides to the purchasers and insurers of the loans it has sold.

In the event of a breach of its representations and warranties, the Company may be required to either repurchase the loans with the identified defects, reimburse the investor for its loss or indemnify the investor or insurer against credit losses arising from such loans. In either case, the Company bears any subsequent credit loss on the loans. The Company’s credit loss may be reduced by any recourse it has to correspondent sellers that had sold such loans to the Company and breached similar or other representations and warranties. In such event, the Company has the right to seek a recovery of related repurchase losses from that correspondent seller.

The Company records a provision for losses relating to representations and warranties as part of its loan sale transactions. The method used to estimate the liability for representations and warranties is a function of the representations and warranties given and considers a combination of factors, including, but not limited to, estimated future defaults and loan defect rates, the estimated severity of loss in the event of default and the probability of reimbursement by the correspondent loan seller. The Company establishes a liability at fair value at the time loans are sold and periodically adjusts the liability for estimated losses in excess of the recorded liability. The level of the liability for representations and warranties is reviewed and approved by the Company’s management credit committee. The establishment of and adjustments to the liability are included in the Net gains on loans acquired for sale at fair value.

The level of the liability for representations and warranties is difficult to estimate and requires considerable judgment. The level of loan repurchase losses is dependent on economic factors, investor demand strategies, and other external conditions that may change over the lives of the underlying loans. The Company’s representations and warranties are generally not subject to stated limits of exposure.

However, the Company believes that the current unpaid principal balance (“UPB”) of loans it has sold to date represents the maximum exposure to repurchases related to representations and warranties.

Loan Servicing Fees

Loan Servicing Fees

Loan servicing fees and other remuneration are received by the Company for servicing residential loans. Loan servicing activities are described under Mortgage Servicing Rights above. The Company’s obligation under its loan servicing agreements is fulfilled as the Company services the loans.

Loan servicing fee amounts are based upon fee rates established at the time a loan sale or securitization is entered into and upon the unpaid principal balance of the loans. Loan servicing fees are recognized in the period in which they are earned.
Share-Based Compensation

Share-Based Compensation

The Company amortizes the fair value of previously granted share-based awards to Compensation expense over the vesting period using the graded vesting method. The initial cost of share-based awards is established at the Company’s closing share price adjusted for the portion of the awards expected to vest on the date of the award. The Company adjusts the cost of its share-based awards for changes in estimates of the portion of the awards it expects to be forfeited by grantees and for changes in expected performance attainment in each subsequent reporting period until the units have vested or have been forfeited, the service being provided is subsequently completed, or, under certain circumstances, is likely to be completed, whichever occurs first.
Income Taxes

Income Taxes

The Company has elected to be taxed as a REIT and believes PMT complies with the provisions of the Internal Revenue Code applicable to REITs. Accordingly, the Company believes PMT will not be subject to federal income tax on that portion of its REIT taxable income that is distributed to shareholders as long as certain asset, income and share ownership tests are met. If PMT fails to qualify as a REIT, and does not qualify for certain statutory relief provisions, it will be subject to income taxes and may be precluded from qualifying as a REIT for the four tax years following the year of loss of the Company’s REIT qualification.

PMC, the Company’s taxable REIT subsidiary (“TRS”), is subject to federal and state income taxes. Income taxes are provided for using the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted rates expected to apply to taxable income in the years in which the Company expects those temporary differences to be recovered or settled. The effect on deferred taxes of a change in tax rates is recognized in results of operations in the period in which the change occurs.

A valuation allowance is established if, in the Company’s judgment, realization of deferred tax assets is not more likely than not. The Company recognizes a tax benefit relating to tax positions it takes only if it is more likely than not that the position will be sustained upon examination by the appropriate taxing authority. A tax position that meets this standard is recognized as the largest amount that exceeds 50 percent likelihood of being realized upon settlement. The Company will classify any penalties and interest as a component of income tax expense.

Recently Issued Accounting Pronouncements

Recently Issued Accounting Pronouncements

During 2023, the FASB issued two Accounting Standards Updates (“ASUs”) aimed at increasing the amount of detail provided to financial statement users in certain existing disclosures. Neither ASU requires changes to the Company’s accounting. The ASUs are discussed below:

Income Tax Disclosures

The FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”), that is intended to enhance the transparency and decision usefulness of income tax disclosures. ASU 2023-09 requires disclosures of:

•
Reconciliation of the expected income tax at the applicable statutory federal income tax rate to the reported income tax in a tabular format, using both percentages and amounts, broken out into specific categories with certain reconciling items of five percent or greater of the expected tax further broken out by nature and/or jurisdiction; and
•
Income taxes paid, net of refunds received, broken out between federal and state and local income taxes. Payments to individual jurisdictions representing five percent or more of the total income tax payments must also be separately disclosed.

The disclosures required by ASU 2023-09 are required in the Company’s annual financial statements beginning with the year ending December 31, 2025, with early adoption permitted.

Accounting Standard Adopted in 2024

Segment Disclosures

The FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (“ASU 2023-07”), that is intended to improve disclosures about a public entity’s reportable segments and addresses requests from investors and other allocators of capital for more detailed information about a reportable segment’s expenses.

The amendments in ASU 2023-07 are intended to improve reportable segment disclosure primarily through enhanced disclosures about significant segment expenses. The key amendments require the Company to supplement its existing disclosures to include disclosure of:

•
significant segment expenses that are regularly provided to the chief operating decision maker included within each reported measure of segment profit or loss; and
•
an amount for other segment items by reportable segment and a description of its composition. The other segment items category is the difference between segment revenue less the significant expenses disclosed and each reported measure of segment profit or loss.

The Company adopted ASU 2023-07 effective December 31, 2024 as shown in Note 25 — Segments.
v3.25.0.1
Organization and Basis of Presentation and Recently Issued Accounting Pronouncements (Policies)
 12 Months Ended
Dec. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Fair Value

Fair Value Accounting Elections

The Company identified all of PMT’s non-cash financial assets and MSRs to be accounted for at fair value. The Company has elected to account for these assets at fair value so such changes in fair value will be reflected in income as they occur and more timely reflect the results of the Company’s performance.

The Company has also identified its Asset-backed financings of variable interest entities at fair value and Interest-only security payable at fair value to be accounted for at fair value to reflect the generally offsetting changes in fair value of these borrowings to changes in fair value of the assets at fair value collateralizing these financings. For other borrowings, the Company has determined that historical cost accounting is more appropriate because under historical cost accounting, debt issuance costs are amortized over the term of the debt facility, thereby matching the debt issuance costs to the periods benefiting from the availability of the debt.
v3.25.0.1
Transactions with Related Parties (Tables)
 12 Months Ended
Dec. 31, 2024
Related Party Transactions [Abstract]  
Summary of Loan Servicing Fees Earned and Mortgage Servicing Rights Recaptured Income Earned

Following is a summary of loan servicing and recapture fees earned by PLS:

 

Year ended December 31,

 

 

2024

 

 

2023

 

 

2022

 

 

(in thousands)

 

Loan servicing fees:

 

 

 

 

 

 

 

 

Loans acquired for sale

$

525

 

 

$

680

 

 

$

1,018

 

Loans at fair value

 

591

 

 

 

208

 

 

 

529

 

Mortgage servicing rights

 

82,136

 

 

 

80,459

 

 

 

80,368

 

$

83,252

 

 

$

81,347

 

 

$

81,915

 

Average investment in loans:

 

 

 

 

 

 

 

 

Acquired for sale

$

1,249,423

 

 

$

1,439,373

 

 

$

1,938,470

 

At fair value

$

1,468,687

 

 

$

1,451,632

 

 

$

1,615,982

 

Average MSR portfolio unpaid principal balance

$

228,705,758

 

 

$

231,203,032

 

 

$

222,847,593

 

 

 

 

 

 

 

 

 

 

MSR recapture fees

$

2,193

 

 

$

1,784

 

 

$

13,744

 

UPB of loans recaptured

$

353,710

 

 

$

315,412

 

 

$

2,533,115

 
Summary of Correspondent Production Activity and Other Loan Purchases

Following is a summary of correspondent production activity and other loan purchases between the Company and PLS:

 

 

Year ended December 31,

 

 

 

2024

 

 

2023

 

 

2022

 

 

(in thousands)

 

Loan fulfillment fees earned by PLS

 

$

26,291

 

 

$

27,826

 

 

$

67,991

 

UPB of loans fulfilled by PLS

 

$

13,446,484

 

 

$

14,898,301

 

 

$

37,090,031

 

 

 

 

 

 

 

 

 

 

Sourcing fees received from PLS included in
   Net gains on loans acquired for sale

 

$

8,069

 

 

$

7,162

 

 

$

4,968

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

UPB of loans sold to PLS:

 

 

 

 

 

 

 

 

 

Government guaranteed or insured

 

$

40,838,480

 

 

$

40,476,782

 

 

$

45,768,110

 

Conventional conforming

 

 

39,856,056

 

 

 

31,141,915

 

 

 

3,912,157

 

 

$

80,694,536

 

 

$

71,618,697

 

 

$

49,680,267

 

 

 

 

 

 

 

 

 

 

 

Purchases of loans acquired for sale from PLS

 

$

662,952

 

 

$

—

 

 

$

298,862

 

 

 

 

 

 

 

 

 

 

Tax service fees paid to PLS

 

$

2,523

 

 

$

3,216

 

 

$

8,418

 

 

 

 

December 31, 2024

 

 

December 31, 2023

 

 

 

(in thousands)

 

Loans included in Loans acquired for sale at fair value
   pending sale to PLS

 

$

602,108

 

 

$

168,303

 
Summary of Management Fee Expense

Following is a summary of management fee expenses:

 

Year ended December 31,

 

 

2024

 

 

2023

 

 

2022

 

 

(in thousands)

 

Base management

$

28,623

 

 

$

28,762

 

 

$

31,065

 

Performance incentive

 

—

 

 

 

—

 

 

 

—

 

$

28,623

 

 

$

28,762

 

 

$

31,065

 

Average shareholders' equity amounts used to calculate
    base management fee expense

$

1,908,287

 

 

$

1,917,642

 

 

$

2,079,851

 
Summary of Expenses

Following is a summary of the Company’s reimbursements to PCM and its affiliates for expenses:

 

Year ended December 31,

 

 

2024

 

 

2023

 

 

2022

 

 

(in thousands)

 

Reimbursement of:

 

 

 

 

 

 

 

 

Expenses incurred on the Company’s behalf, net

$

20,871

 

 

$

21,468

 

 

$

23,829

 

Common overhead incurred by PCM and its affiliates

 

7,909

 

 

 

7,492

 

 

 

8,588

 

Compensation

 

660

 

 

 

660

 

 

 

660

 

$

29,440

 

 

$

29,620

 

 

$

33,077

 

Payments and settlements during the year (1)

$

118,167

 

 

$

94,339

 

 

$

144,012

 

 

(1)
Payments and settlements include payments and netting settlements made pursuant to master netting agreements between the Company and PFSI for the operating, investing and financing activities itemized in this Note.
Summary of Amounts Receivable From and Payable to PFSI

Amounts receivable from and payable to PFSI are summarized below:

 

 

December 31, 2024

 

 

December 31, 2023

 

 

(in thousands)

 

Due from PFSI-Miscellaneous receivables

 

$

16,015

 

 

$

56

 

 

 

 

 

 

 

Due to PFSI:

 

 

 

 

 

 

Correspondent production fees

 

$

11,122

 

 

$

8,288

 

Management fees

 

 

7,149

 

 

 

7,252

 

Loan servicing fees

 

 

6,822

 

 

 

6,809

 

Allocated expenses and expenses and costs paid by PFSI on PMT’s behalf

 

 

3,508

 

 

 

5,612

 

Fulfillment fees

 

 

1,605

 

 

 

1,301

 

 

$

30,206

 

 

$

29,262

 
Summary of Transfer Cash to Fund Loan Servicing Advances

The Company has also transferred cash to PLS to fund loan servicing advances and REO property acquisition and preservation costs on its behalf. Such amounts are included in various balance sheet items as summarized below:

Balance sheet line including advance amount

 

December 31, 2024

 

 

December 31, 2023

 

 

 

(in thousands)

 

Servicing advances

 

$

105,037

 

 

$

206,151

 

Other assets-Real estate acquired in settlement of loans

 

 

1,265

 

 

 

2,003

 

 

$

106,302

 

 

$

208,154

 

 
v3.25.0.1
Loan Sales (Tables)
 12 Months Ended
Dec. 31, 2024
Loan Sales [Abstract]  
Summary of Cash Flows between Company and Transferees in Transfers Accounted for Sales

The following table summarizes cash flows between the Company and transferees in transfers of loans that are accounted for as sales where the Company maintains continuing involvement with the loans:

 

 

 

Year ended December 31,

 

 

 

2024

 

 

2023

 

 

2022

 

 

 

(in thousands)

 

Cash flows:

 

 

 

 

 

 

 

 

 

Proceeds from sales

 

$

12,414,391

 

 

$

15,936,124

 

 

$

39,077,156

 

Loan servicing fees received

 

$

644,642

 

 

$

659,438

 

 

$

625,210

 

 
Summary of Collection Status Information for Loans Accounted for Sales

The following table summarizes for the dates presented collection status information for loans that are accounted for as sales where the Company maintains continuing involvement:

 

 

 

December 31, 2024

 

 

December 31, 2023

 

 

 

(in thousands)

 

UPB of loans outstanding

 

$

222,761,227

 

 

$

228,838,471

 

Collection status (UPB)

 

 

 

 

 

 

Delinquency:

 

 

 

 

 

 

30-89 days delinquent

 

$

2,618,767

 

 

$

2,184,500

 

90 or more days delinquent:

 

 

 

 

 

 

Not in foreclosure

 

$

1,078,362

 

 

$

1,029,962

 

In foreclosure

 

$

105,810

 

 

$

85,045

 

Bankruptcy

 

$

281,821

 

 

$

185,320

 

 

 

 

 

 

 

 

Custodial funds managed by the Company (1)

 

$

2,385,602

 

 

$

1,759,974

 

 

(1)
Custodial funds include borrower and investor custodial cash accounts relating to loans serviced under mortgage servicing agreements and are not included 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, and these fees are included in Interest income in the Company’s consolidated statements of operations.
v3.25.0.1
Variable Interest Entities (Tables) - Variable Interest Entities [Member]
 12 Months Ended
Dec. 31, 2024
Summary of Investment in Subordinate MBS Backed by Assets Held in Consolidated VIEs

Following is a summary of the Company’s investment in subordinate MBS backed by assets held in consolidated VIEs:

 

 

Year ended December 31,

 

 

2024

 

 

2023

 

 

2022

 

 

(in thousands)

 

Net investment income:

 

 

 

 

 

 

 

 

Net gains (losses) on investments and financings:

 

 

 

 

 

 

 

 

Loans at fair value

$

15,637

 

 

$

17,876

 

 

$

(301,164

)

Asset-backed financings at fair value

 

(7,396

)

 

 

(13,678

)

 

 

283,586

 

Interest income

 

58,720

 

 

 

56,833

 

 

 

59,263

 

Interest expense

 

55,763

 

 

 

49,988

 

 

 

53,570

 

 

$

11,198

 

 

$

11,043

 

 

$

(11,885

)

 

 

December 31, 2024

 

 

December 31, 2023

 

 

(in thousands)

 

Loans at fair value

$

2,191,709

 

 

$

1,431,689

 

Asset-backed financings at fair value

$

2,040,375

 

 

$

1,336,731

 

Retained subordinate MBS at fair value pledged to
   secure Assets sold under agreements to repurchase

$

130,839

 

 

$

85,344

 
Credit Risk Transfer Agreements [Member]  
Summary of Credit Risk Transfer Agreements

Following is a summary of the CRT arrangements:

 

 

Year ended December 31,

 

 

2024

 

 

2023

 

 

2022

 

 

(in thousands)

 

Net investment income:

 

 

 

 

 

 

 

 

Net gains (losses) on investments and financings

 

 

 

 

 

 

 

 

CRT derivatives and strips:

 

 

 

 

 

 

 

 

CRT derivatives

 

 

 

 

 

 

 

 

Realized

$

13,491

 

 

$

18,524

 

 

$

38,382

 

Valuation changes

 

13,529

 

 

 

38,020

 

 

 

(42,220

)

 

27,020

 

 

 

56,544

 

 

 

(3,838

)

CRT strips

 

 

 

 

 

 

 

 

Realized

 

45,573

 

 

 

46,252

 

 

 

60,389

 

Valuation changes

 

42,632

 

 

 

90,501

 

 

 

(110,356

)

 

88,205

 

 

 

136,753

 

 

 

(49,967

)

Interest-only security payable at fair value - valuation changes

 

(1,555

)

 

 

(10,742

)

 

 

(11,332

)

 

113,670

 

 

 

182,555

 

 

 

(65,137

)

Interest income — Deposits securing CRT arrangements

 

59,304

 

 

 

62,713

 

 

 

21,324

 

$

172,974

 

 

$

245,268

 

 

$

(43,813

)

 

 

 

 

 

 

 

 

 

Net payments made (recoveries received) to settle losses
    (recoveries) on CRT arrangements

$

1,633

 

 

$

3,523

 

 

$

(19,016

)

 

 

December 31, 2024

 

 

December 31, 2023

 

 

(in thousands)

 

Carrying value of CRT arrangements:

 

 

 

 

 

Derivative assets - CRT derivatives

$

29,377

 

 

$

16,160

 

CRT strip liabilities

 

(4,060

)

 

 

(46,692

)

Deposits securing CRT arrangements

 

1,110,708

 

 

 

1,209,498

 

Interest-only security payable at fair value

 

(34,222

)

 

 

(32,667

)

 

$

1,101,803

 

 

$

1,146,299

 

 

 

 

 

 

CRT arrangement assets pledged to secure borrowings:

 

 

 

 

 

Derivative assets

$

29,377

 

 

$

16,160

 

Deposits securing CRT arrangements (1)

$

1,110,708

 

 

$

1,209,498

 

 

 

 

 

 

UPB of loans underlying CRT arrangements

$

21,249,304

 

 

$

23,152,230

 

Collection status (UPB):

 

 

 

Delinquency

 

 

 

 

 

Current

$

20,628,148

 

 

$

22,531,905

 

30-89 days delinquent

$

414,605

 

 

$

411,991

 

90-180 days delinquent

$

131,191

 

 

$

120,011

 

180 or more days delinquent

$

51,343

 

 

$

64,647

 

Foreclosure

$

24,017

 

 

$

23,676

 

Bankruptcy

$

63,697

 

 

$

58,696

 

 

(1)
Deposits securing credit risk transfer strip liabilities also secure $4.1 million and $46.7 million in CRT strip liabilities at December 31, 2024 and December 31, 2023, respectively.
v3.25.0.1
Fair Value (Tables)
 12 Months Ended
Dec. 31, 2024
Fair Value Disclosures [Abstract]  
Summary of Financial Statement Items Measured at Fair Value on Recurring Basis

Following is a summary of financial statement items that are measured at fair value on a recurring basis:

 

 

 

December 31, 2024

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

 

 

(in thousands)

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Short-term investments

 

$

103,198

 

 

$

—

 

 

$

—

 

 

$

103,198

 

Mortgage-backed securities at fair value

 

 

—

 

 

 

3,977,446

 

 

 

86,260

 

 

 

4,063,706

 

Loans acquired for sale at fair value

 

 

—

 

 

 

2,108,347

 

 

 

7,971

 

 

 

2,116,318

 

Loans at fair value

 

 

—

 

 

 

2,191,709

 

 

 

1,866

 

 

 

2,193,575

 

Derivative assets:

 

 

 

 

 

 

 

 

 

 

 

 

Call options on interest rate futures purchase contracts

 

 

156

 

 

 

—

 

 

 

—

 

 

 

156

 

Put options on interest rate futures purchase contracts

 

 

6,372

 

 

 

—

 

 

 

—

 

 

 

6,372

 

Forward purchase contracts

 

 

—

 

 

 

614

 

 

 

—

 

 

 

614

 

Forward sale contracts

 

 

—

 

 

 

54,056

 

 

 

—

 

 

 

54,056

 

MBS put options

 

 

—

 

 

 

2,114

 

 

 

—

 

 

 

2,114

 

CRT derivatives

 

 

—

 

 

 

—

 

 

 

29,377

 

 

 

29,377

 

Interest rate lock commitments

 

 

—

 

 

 

—

 

 

 

3,562

 

 

 

3,562

 

Total derivative assets before netting

 

 

6,528

 

 

 

56,784

 

 

 

32,939

 

 

 

96,251

 

Netting

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(39,411

)

Total derivative assets after netting

 

 

6,528

 

 

 

56,784

 

 

 

32,939

 

 

 

56,840

 

Mortgage servicing rights at fair value

 

 

—

 

 

 

—

 

 

 

3,867,394

 

 

 

3,867,394

 

 

$

109,726

 

 

$

8,334,286

 

 

$

3,996,430

 

 

$

12,401,031

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Asset-backed financings of the variable interest entities
   at fair value

 

$

—

 

 

$

2,040,375

 

 

$

—

 

 

$

2,040,375

 

Interest-only security payable at fair value

 

 

—

 

 

 

—

 

 

 

34,222

 

 

 

34,222

 

Derivative and credit risk transfer strip liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Forward purchase contracts

 

 

—

 

 

 

6,336

 

 

 

—

 

 

 

6,336

 

Forward sales contracts

 

 

—

 

 

 

1,753

 

 

 

—

 

 

 

1,753

 

Interest rate lock commitments

 

 

—

 

 

 

—

 

 

 

3,118

 

 

 

3,118

 

Total derivative liabilities before netting

 

 

—

 

 

 

8,089

 

 

 

3,118

 

 

 

11,207

 

Netting

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(7,916

)

Total derivative liabilities after netting

 

 

—

 

 

 

8,089

 

 

 

3,118

 

 

 

3,291

 

Credit risk transfer strips

 

 

—

 

 

 

—

 

 

 

4,060

 

 

 

4,060

 

Total derivative and credit risk transfer strip liabilities

 

 

—

 

 

 

8,089

 

 

 

7,178

 

 

 

7,351

 

 

$

—

 

 

$

2,048,464

 

 

$

41,400

 

 

$

2,081,948

 

 
Summary of Changes in Items Measured Using Level 3 Inputs on Recurring Basis

The following is a summary of changes in items measured at fair value on a recurring basis using Level 3 inputs that are significant to the estimation of the fair values of the assets and liabilities at either the beginning or end of the years presented:

 

 

 

Year ended December 31, 2024

 

Assets (1)

 

Interest-only stripped mortgage-backed securities

 

 

Loans
acquired
for sale

 

 

Loans at
fair
value

 

 

CRT
derivatives

 

 

Interest rate
lock
commitments

 

 

CRT
strips

 

 

Mortgage
servicing
rights

 

 

Total

 

 

 

(in thousands)

 

Balance, December 31, 2023

 

$

94,231

 

 

$

6,318

 

 

$

2,131

 

 

$

16,160

 

 

$

7,532

 

 

$

(46,692

)

 

$

3,919,107

 

 

$

3,998,787

 

Purchases and issuances

 

 

—

 

 

 

8,132

 

 

 

—

 

 

 

—

 

 

 

38,086

 

 

 

—

 

 

 

29,429

 

 

 

75,647

 

Repayments and sales

 

 

(149,983

)

 

 

(6,139

)

 

 

(144

)

 

 

(13,803

)

 

 

—

 

 

 

(45,573

)

 

 

—

 

 

 

(215,642

)

Accrual of unearned discounts

 

 

9,093

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

9,093

 

Amounts received pursuant to sales
   of loans

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

219,001

 

 

 

219,001

 

Changes in fair value included in
income arising from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Changes in instrument - specific
   credit risk

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Other factors

 

 

2,624

 

 

 

(340

)

 

 

(121

)

 

 

27,020

 

 

 

(10,882

)

 

 

88,205

 

 

 

(170,409

)

 

 

(63,903

)

 

 

2,624

 

 

 

(340

)

 

 

(121

)

 

 

27,020

 

 

 

(10,882

)

 

 

88,205

 

 

 

(170,409

)

 

 

(63,903

)

Exchange of mortgage servicing spread
    for interest-only stripped mortgage
   -backed securities

 

 

130,295

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(130,295

)

 

 

—

 

Transfers of:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate lock commitments to
   loans acquired for sale (2)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(34,292

)

 

 

—

 

 

 

—

 

 

 

(34,292

)

Mortgage servicing rights relating to
   delinquent loans to Agency

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

561

 

 

 

561

 

Balance, December 31, 2024

 

$

86,260

 

 

$

7,971

 

 

$

1,866

 

 

$

29,377

 

 

$

444

 

 

$

(4,060

)

 

$

3,867,394

 

 

$

3,989,252

 

Changes in fair value recognized during
the year relating to assets still held
at December 31, 2024

 

$

2,624

 

 

$

(261

)

 

$

(140

)

 

$

13,529

 

 

$

444

 

 

$

42,632

 

 

$

(173,271

)

 

$

(114,443

)

 

(1)
For the purpose of this table, CRT derivative, IRLC, and CRT strip asset and liability positions are shown net.
(2)
The Company had transfers among the fair value levels arising from transfers of IRLCs to loans acquired for sale at fair value upon purchase of the respective loans.

 

Liabilities

 

Year ended December 31, 2024

 

 

 

(in thousands)

 

Interest-only security payable:

 

 

 

Balance, December 31, 2023

 

$

32,667

 

Changes in fair value included in results of operations arising from:

 

 

 

Changes in instrument - specific credit risk

 

 

—

 

Other factors

 

 

1,555

 

 

 

1,555

 

Balance, December 31, 2024

 

$

34,222

 

Changes in fair value recognized during the year relating
to liability outstanding at December 31, 2024

 

$

1,555

 

 

 

 

 

Year ended December 31, 2023

 

Assets (1)

 

Interest-only stripped mortgage-backed securities

 

 

Loans
acquired
for sale

 

 

Loans at
fair
value

 

 

CRT
derivatives

 

 

Interest
rate lock
commitments

 

 

CRT strips

 

 

Mortgage
servicing
rights

 

 

Total

 

 

 

(in thousands)

 

Balance, December 31, 2022

 

$

—

 

 

$

10,708

 

 

$

3,457

 

 

$

(22,098

)

 

$

(478

)

 

$

(137,193

)

 

$

4,012,737

 

 

$

3,867,133

 

Purchases and issuances

 

 

—

 

 

 

7,151

 

 

 

119

 

 

 

—

 

 

 

4,591

 

 

 

—

 

 

 

16,258

 

 

 

28,119

 

Repayments and sales

 

 

(3,417

)

 

 

(11,291

)

 

 

(548

)

 

 

(18,286

)

 

 

—

 

 

 

(46,252

)

 

 

—

 

 

 

(79,794

)

Accrual of unearned discount

 

 

2,673

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2,673

 

Amounts received pursuant to sales
  of loans

 

 

—

 

 

 

(496

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

292,527

 

 

 

292,031

 

Changes in fair value included in
income arising from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Changes in instrument -
   specific credit risk

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Other factors

 

 

(8,572

)

 

 

246

 

 

 

(437

)

 

 

56,544

 

 

 

15,205

 

 

 

136,753

 

 

 

(296,847

)

 

 

(97,108

)

 

 

(8,572

)

 

 

246

 

 

 

(437

)

 

 

56,544

 

 

 

15,205

 

 

 

136,753

 

 

 

(296,847

)

 

 

(97,108

)

Exchange of mortgage servicing
   spread for interest-only stripped
   mortgage-backed securities

 

 

103,547

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(105,096

)

 

 

(1,549

)

Transfers of:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

—

 

Loans to REO

 

 

—

 

 

 

—

 

 

 

(460

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(460

)

Interest rate lock commitments
  to loans acquired for sale (2)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(11,786

)

 

 

—

 

 

 

—

 

 

 

(11,786

)

Mortgage servicing rights relating to
   delinquent loans to Agency

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(472

)

 

 

(472

)

Balance, December 31, 2023

 

$

94,231

 

 

$

6,318

 

 

$

2,131

 

 

$

16,160

 

 

$

7,532

 

 

$

(46,692

)

 

$

3,919,107

 

 

$

3,998,787

 

Changes in fair value recognized
during the year relating to assets
still held at December 31, 2023

 

$

(8,572

)

 

$

(21

)

 

$

(964

)

 

$

38,020

 

 

$

7,532

 

 

$

90,501

 

 

$

(296,847

)

 

$

(170,351

)

 

(1)
For the purpose of this table, CRT derivative, IRLC, and CRT strip asset and liability positions are shown net.
(2)
The Company had transfers among the fair value levels arising from transfers of IRLCs to loans acquired for sale at fair value upon purchase of the respective loans.

 

Liabilities

 

Year ended December 31, 2023

 

 

 

(in thousands)

 

Interest-only security payable:

 

 

 

Balance, December 31, 2022

 

$

21,925

 

Changes in fair value included in results of operations arising from:

 

 

 

Changes in instrument - specific credit risk

 

 

—

 

Other factors

 

 

10,742

 

 

 

10,742

 

Balance, December 31, 2023

 

$

32,667

 

Changes in fair value recognized during the year relating
to liability outstanding at December 31, 2023

 

$

10,742

 

 

 

 

Year ended December 31, 2022

 

 

 

Assets (1)

 

Loans
acquired
for sale

 

 

Loans at
fair
value

 

 

CRT
derivatives

 

 

Interest
rate lock
commitments

 

 

CRT
strips

 

 

Mortgage
servicing
rights

 

 

Total

 

 

 

 

 

(in thousands)

 

 

 

Balance, December 31, 2021

 

$

30,129

 

 

$

4,161

 

 

$

18,964

 

 

$

2,451

 

 

$

(26,837

)

 

$

2,892,855

 

 

$

2,921,723

 

 

 

Purchases and issuances

 

 

13,619

 

 

 

—

 

 

 

—

 

 

 

(87,393

)

 

 

—

 

 

 

—

 

 

 

(73,774

)

 

 

Repayments and sales

 

 

(29,674

)

 

 

(1,390

)

 

 

(37,224

)

 

 

—

 

 

 

(60,389

)

 

 

—

 

 

 

(128,677

)

 

 

Amounts received pursuant to sales
  of loans

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

670,343

 

 

 

670,343

 

 

 

Changes in fair value included in
income arising from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Changes in instrument -
   specific credit risk

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

Other factors

 

 

(3,366

)

 

 

686

 

 

 

(3,838

)

 

 

(234,146

)

 

 

(49,967

)

 

 

449,435

 

 

 

158,804

 

 

 

 

 

(3,366

)

 

 

686

 

 

 

(3,838

)

 

 

(234,146

)

 

 

(49,967

)

 

 

449,435

 

 

 

158,804

 

 

 

Transfers of:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate lock commitments
   to loans acquired for sale (2)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

318,610

 

 

 

—

 

 

 

—

 

 

 

318,610

 

 

 

Mortgage servicing rights relating to
   delinquent loans to Agency

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

104

 

 

 

104

 

 

 

Balance, December 31, 2022

 

$

10,708

 

 

$

3,457

 

 

$

(22,098

)

 

$

(478

)

 

$

(137,193

)

 

$

4,012,737

 

 

$

3,867,133

 

 

 

Changes in fair value recognized during
the year relating to assets still held at
December 31, 2022

 

$

(1,098

)

 

$

196

 

 

$

(42,220

)

 

$

(478

)

 

$

(110,356

)

 

$

449,435

 

 

$

295,479

 

 

 

 

(1)
For the purpose of this table, CRT derivative, IRLC, and CRT strip asset and liability positions are shown net.
(2)
The Company had transfers among the fair value levels arising from transfers of IRLCs to loans acquired for sale at fair value upon purchase of the respective loans.

 

 

Liabilities

 

Year ended December 31, 2022

 

 

 

(in thousands)

 

Interest-only security payable:

 

 

 

Balance, December 31, 2021

 

$

10,593

 

Changes in fair value included in results of operations arising from:

 

 

 

Changes in instrument-specific credit risk

 

 

—

 

Other factors

 

 

11,332

 

 

 

11,332

 

Balance, December 31, 2022

 

$

21,925

 

Changes in fair value recognized during the year relating
    to liability outstanding at December 31, 2022

 

$

11,332

 

 

 
Fair Values and Related Principal Amounts Due upon Maturity of Mortgage Loans Accounted for Under Fair Value Option

Following are the fair values and related principal amounts due upon maturity of loans accounted for under the fair value option (including loans acquired for sale, loans held in consolidated VIEs, and distressed loans):

 

 

 

December 31, 2024

 

 

December 31, 2023

 

 

 

Fair value

 

 

Principal
amount due
upon maturity

 

 

Difference

 

 

Fair value

 

 

Principal
amount due
upon maturity

 

 

Difference

 

 

 

(in thousands)

 

Loans acquired for sale at fair value:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current through 89 days delinquent

 

$

2,114,556

 

 

$

2,092,030

 

 

$

22,526

 

 

$

667,857

 

 

$

648,283

 

 

$

19,574

 

90 or more days delinquent:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Not in foreclosure

 

 

1,687

 

 

 

2,114

 

 

 

(427

)

 

 

433

 

 

 

617

 

 

 

(184

)

In foreclosure

 

 

75

 

 

 

96

 

 

 

(21

)

 

 

728

 

 

 

845

 

 

 

(117

)

 

 

1,762

 

 

 

2,210

 

 

 

(448

)

 

 

1,161

 

 

 

1,462

 

 

 

(301

)

 

$

2,116,318

 

 

$

2,094,240

 

 

$

22,078

 

 

$

669,018

 

 

$

649,745

 

 

$

19,273

 

Loans at fair value:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Held in consolidated VIEs:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current through 89 days delinquent

 

$

2,190,432

 

 

$

2,413,214

 

 

$

(222,782

)

 

$

1,430,427

 

 

$

1,697,305

 

 

$

(266,878

)

90 or more days delinquent:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Not in foreclosure

 

 

1,277

 

 

 

1,658

 

 

 

(381

)

 

 

1,262

 

 

 

1,582

 

 

 

(320

)

In foreclosure

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,277

 

 

 

1,658

 

 

 

(381

)

 

 

1,262

 

 

 

1,582

 

 

 

(320

)

 

 

2,191,709

 

 

 

2,414,872

 

 

 

(223,163

)

 

 

1,431,689

 

 

 

1,698,887

 

 

 

(267,198

)

Distressed:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current through 89 days delinquent

 

 

445

 

 

 

595

 

 

 

(150

)

 

 

569

 

 

 

728

 

 

 

(159

)

90 or more days delinquent:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Not in foreclosure

 

 

1,421

 

 

 

3,796

 

 

 

(2,375

)

 

 

393

 

 

 

2,023

 

 

 

(1,630

)

In foreclosure

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,169

 

 

 

2,546

 

 

 

(1,377

)

 

 

1,421

 

 

 

3,796

 

 

 

(2,375

)

 

 

1,562

 

 

 

4,569

 

 

 

(3,007

)

 

 

1,866

 

 

 

4,391

 

 

 

(2,525

)

 

 

2,131

 

 

 

5,297

 

 

 

(3,166

)

 

$

2,193,575

 

 

$

2,419,263

 

 

$

(225,688

)

 

$

1,433,820

 

 

$

1,704,184

 

 

$

(270,364

)

 
Summary of Changes in Fair Value Included in Current Period Results of Operations

Following are the changes in fair value included in current year results of operations by consolidated statement of operations line item for financial statement items accounted for under the fair value option:

 

 

 

Year ended December 31, 2024

 

 

 

Net loan
servicing fees

 

 

Net gains on loans acquired
for sale

 

 

Net gains (losses) on investments and financings

 

 

Net interest
expense

 

 

Total

 

 

 

(in thousands)

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage-backed securities at fair value

 

$

—

 

 

$

—

 

 

$

(80,838

)

 

$

28,773

 

 

$

(52,065

)

Loans acquired for sale at fair value

 

 

—

 

 

 

24,457

 

 

 

—

 

 

 

—

 

 

 

24,457

 

Loans at fair value

 

 

—

 

 

 

—

 

 

 

15,516

 

 

 

(1,808

)

 

 

13,708

 

Credit risk transfer strips at fair value

 

 

—

 

 

 

—

 

 

 

88,205

 

 

 

—

 

 

 

88,205

 

MSRs at fair value

 

 

(170,409

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(170,409

)

 

$

(170,409

)

 

$

24,457

 

 

$

22,883

 

 

$

26,965

 

 

$

(96,104

)

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-only security payable at fair value

 

$

—

 

 

$

—

 

 

$

(1,555

)

 

$

—

 

 

$

(1,555

)

Asset-backed financings at fair value

 

 

—

 

 

 

—

 

 

 

(7,396

)

 

 

(3,653

)

 

 

(11,049

)

 

$

—

 

 

$

—

 

 

$

(8,951

)

 

$

(3,653

)

 

$

(12,604

)

 

 

 

 

Year ended December 31, 2023

 

 

 

Net loan
servicing fees

 

 

Net gains on loans acquired
for sale

 

 

Net gains (losses) on investments and financings

 

 

Net interest
expense

 

 

Total

 

 

 

(in thousands)

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage-backed securities at fair value

 

$

—

 

 

$

—

 

 

$

74,984

 

 

$

1,986

 

 

$

76,970

 

Loans acquired for sale at fair value

 

 

—

 

 

 

15,025

 

 

 

—

 

 

 

—

 

 

 

15,025

 

Loans at fair value

 

 

—

 

 

 

—

 

 

 

17,439

 

 

 

(2,127

)

 

 

15,312

 

Credit risk transfer strips at fair value

 

 

—

 

 

 

—

 

 

 

136,753

 

 

 

—

 

 

 

136,753

 

MSRs at fair value

 

 

(296,847

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(296,847

)

 

$

(296,847

)

 

$

15,025

 

 

$

229,176

 

 

$

(141

)

 

$

(52,787

)

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-only security payable at fair value

 

$

—

 

 

$

—

 

 

$

(10,742

)

 

$

—

 

 

$

(10,742

)

Asset-backed financings at fair value

 

 

—

 

 

 

—

 

 

 

(13,678

)

 

 

(496

)

 

 

(14,174

)

 

$

—

 

 

$

—

 

 

$

(24,420

)

 

$

(496

)

 

$

(24,916

)

 

 

 

Year ended December 31, 2022

 

 

 

Net loan
servicing fees

 

 

Net gains on loans acquired
 for sale

 

 

Net gains (losses) on investments and financings

 

 

Net interest
expense

 

 

Total

 

 

 

(in thousands)

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage-backed securities at fair value

 

$

—

 

 

$

—

 

 

$

(576,758

)

 

$

12,697

 

 

$

(564,061

)

Loans acquired for sale at fair value

 

 

—

 

 

 

(539,102

)

 

 

—

 

 

 

—

 

 

 

(539,102

)

Loans at fair value

 

 

—

 

 

 

—

 

 

 

(300,478

)

 

 

(1,109

)

 

 

(301,587

)

Credit risk transfer strips at fair value

 

 

—

 

 

 

—

 

 

 

(49,967

)

 

 

—

 

 

 

(49,967

)

MSRs at fair value

 

 

449,435

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

449,435

 

 

$

449,435

 

 

$

(539,102

)

 

$

(927,203

)

 

$

11,588

 

 

$

(1,005,282

)

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-only security payable at fair value

 

$

—

 

 

$

—

 

 

$

(11,332

)

 

$

—

 

 

$

(11,332

)

Asset-backed financings at fair value

 

 

—

 

 

 

—

 

 

 

283,586

 

 

 

1,773

 

 

 

285,359

 

 

$

—

 

 

$

—

 

 

$

272,254

 

 

$

1,773

 

 

$

274,027

 

 
Summary of Carrying Value of Financial Statement Items Remeasured Based on Fair Value on Nonrecurring Basis

Following is a summary of the carrying value of assets that were remeasured during the year based on fair value on a nonrecurring basis:

 

Real estate acquired in settlement of loans

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

 

 

(in thousands)

 

December 31, 2024

 

$

—

 

 

$

—

 

 

$

532

 

 

$

532

 

December 31, 2023

 

$

—

 

 

$

—

 

 

$

753

 

 

$

753

 
Summary of Changes in Fair Value Recognized in Assets that Remeasured at Fair Value on a Nonrecurring Basis

The following table summarizes the fair value changes recognized during the years on assets held at year end that were remeasured at fair value on a nonrecurring basis:

 

 

 

Year ended December 31,

 

 

 

2024

 

 

2023

 

 

2022

 

 

 

(in thousands)

 

Real estate acquired in settlement of loans

 

$

(348

)

 

$

(223

)

 

$

(505

)

 
Carrying and Fair Values of Notes Payable Secured by Credit Risk Transfer and Mortgage Servicing Rights and Exchangeable Senior Notes The fair values and carrying values of these liabilities are summarized below:

 

 

 

December 31, 2024

 

 

December 31, 2023

 

Instrument

 

Carrying value

 

 

Fair value

 

 

Carrying value

 

 

Fair value

 

 

 

(in thousands)

 

Notes payable secured by credit risk transfer
    and mortgage servicing assets

 

$

2,929,790

 

 

$

2,944,956

 

 

$

2,910,605

 

 

$

2,904,678

 

Unsecured senior notes

 

$

605,860

 

 

$

606,185

 

 

$

600,458

 

 

$

580,090

 
Key Inputs Used in Determining Fair Value of IO Securities

 

 

 

December 31, 2024

 

 

December 31, 2023

 

Fair value (in thousands)

 

$

86,260

 

 

$

94,231

 

Key inputs (1)

 

 

 

 

 

 

Pricing spread (2)

 

 

 

 

 

 

Range

 

5.9% – 6.5%

 

 

5.1% – 5.1%

 

Weighted average

 

6.5%

 

 

5.1%

 

Annual total prepayment speed (3)

 

 

 

 

 

 

Range

 

9.4% – 10.2%

 

 

10.9% – 11.0%

 

Weighted average

 

9.4%

 

 

10.9%

 

Equivalent life (in years)

 

 

 

 

 

 

Range

 

4.6 – 8.0

 

 

4.7 – 7.2

 

Weighted average

 

7.9

 

 

7.1

 

 

(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 forward rate to develop periodic discount rates. The Company uses the pricing spread over a derived United States Treasury Securities (“Treasury”) yield curve for the purpose of discounting cash flows relating to IO stripped MBS.
(3)
Prepayment speed is measured using life total Conditional Prepayment Rate (“CPR”). Equivalent life is provided as supplementary information
Quantitative Summary of Key Unobservable Inputs Used in Valuation of CRT Derivatives

Following is a quantitative summary of key unobservable inputs used in the Company’s review and approval of broker-provided fair values for CRT derivatives:

 

 

 

December 31, 2024

 

 

December 31, 2023

 

 

 

(dollars in thousands)

 

Fair value

 

$

29,377

 

 

$

16,160

 

UPB of loans in reference pools

 

$

4,961,644

 

 

$

5,437,551

 

Key inputs (1)

 

 

 

 

 

 

Discount rate

 

 

 

 

 

 

Range

 

9.0% – 11.4%

 

 

9.0% – 9.7%

 

Weighted average

 

9.3%

 

 

9.6%

 

Voluntary prepayment speed (2)

 

 

 

 

 

 

Range

 

7.0% – 7.6%

 

 

6.9% – 7.6%

 

Weighted average

 

7.3%

 

 

7.4%

 

Involuntary prepayment speed (3)

 

 

 

 

 

 

Range

 

0.1% – 0.2%

 

 

0.2% – 0.8%

 

Weighted average

 

0.1%

 

 

0.3%

 

Remaining loss expectation

 

 

 

 

 

 

Range

 

0.0% – 0.2%

 

 

0.2% – 0.3%

 

Weighted average

 

0.1%

 

 

0.3%

 

 

(1)
Weighted average inputs are based on fair value amounts of the CRT arrangements, except for remaining loss expectation which is based on the UPB of the loans in the reference pools.
(2)
Voluntary prepayment speed is measured using life voluntary CPR.
(3)
Involuntary prepayment speed is measured using life involuntary CPR.
Quantitative Summary of Key Unobservable Inputs Used in Valuation of Interest Rate Lock Commitments

Following is a quantitative summary of key unobservable inputs used in the valuation of IRLCs:

 

 

 

December 31, 2024

 

 

December 31, 2023

 

Fair value (in thousands) (1)

 

$

444

 

 

$

7,532

 

Committed amount (in thousands)

 

$

1,166,566

 

 

$

874,017

 

Key inputs (2)

 

 

 

 

 

 

Pull-through rate

 

 

 

 

 

 

Range

 

51.0% – 98.0%

 

 

50.0% - 98.0%

 

Weighted average

 

86.3%

 

 

82.5%

 

MSR fair value expressed as

 

 

 

 

 

 

Servicing fee multiple

 

 

 

 

 

 

Range

 

2.6 – 7.8

 

 

1.7 - 6.5

 

Weighted average

 

5.7

 

 

4.6

 

Percentage of unpaid principal balance

 

 

 

 

 

 

Range

 

0.6% – 2.7%

 

 

0.4% - 2.4%

 

Weighted average

 

1.9%

 

 

1.7%

 

 

(1)
For purposes of this table, IRLC asset and liability positions are shown net.
(2)
Weighted-average inputs are based on the committed amounts.
Summary of Key Unobservable Inputs Used in Valuation of Credit Risk Transfer Strip Liabilities

Following is a quantitative summary of key unobservable inputs used in the Company’s review and approval of the broker-provided fair values used to derive the fair value of the CRT strip liabilities:

 

 

 

December 31, 2024

 

 

December 31, 2023

 

 

 

(dollars in thousands)

 

Fair value

 

$

4,060

 

 

$

46,692

 

Unpaid principal balance of loans in the reference pools

 

$

16,287,660

 

 

$

17,714,679

 

Key inputs (1)

 

 

 

 

 

 

Discount rate

 

 

 

 

 

 

Range

 

7.1% – 9.1%

 

 

7.9% – 9.6%

 

Weighted average

 

8.8%

 

 

9.4%

 

Voluntary prepayment speed (2)

 

 

 

 

 

 

Range

 

6.9% – 7.5%

 

 

6.6% – 8.2%

 

Weighted average

 

7.0%

 

 

6.8%

 

Involuntary prepayment speed (3)

 

 

 

 

 

 

Range

 

0.1% – 0.3%

 

 

0.2% – 0.3%

 

Weighted average

 

0.1%

 

 

0.2%

 

Remaining loss expectation

 

 

 

 

 

 

Range

 

0.4% – 1.5%

 

 

0.5% – 1.6%

 

Weighted average

 

0.5%

 

 

0.6%

 

 

(1)
Weighted average inputs are based on fair value amounts of the CRT arrangements, except for remaining loss expectation which is based on the UPB of the loans in the reference pools.
(2)
Voluntary prepayment speed is measured using life voluntary CPR.
(3)
Involuntary prepayment speed is measured using life involuntary CPR.
Key Assumptions Used in Determining Fair Value of MSRs at Time of Initial Recognition

Following are the key inputs used in determining the fair value of MSRs at the time of initial recognition:

 

 

Year ended December 31,

 

 

 

2024

 

 

2023

 

 

2022

 

MSRs recognized (in thousands)

 

$

219,001

 

 

$

292,527

 

 

$

670,343

 

Unpaid principal balance of underlying loans (in thousands)

 

$

12,240,231

 

 

$

15,966,491

 

 

$

39,014,110

 

Weighted average annual servicing fee rate (in basis points)

 

35

 

 

39

 

 

34

 

Key inputs (1)

 

 

 

 

 

 

 

 

 

Pricing spread (2)

 

 

 

 

 

 

 

 

 

Range

 

5.4% – 8.5%

 

 

5.5% – 8.8%

 

 

5.5% – 8.9%

 

Weighted average

 

5.6%

 

 

5.8%

 

 

6.3%

 

Prepayment speed (3)

 

 

 

 

 

 

 

 

 

Range

 

8.7% – 26.7%

 

 

10.1% – 22.7%

 

 

5.5% – 19.7%

 

Weighted average

 

12.2%

 

 

12.4%

 

 

9.3%

 

Equivalent average life (in years)

 

 

 

 

 

 

 

 

 

Range

 

3.4 – 8.1

 

 

2.8 - 7.2

 

 

4.0 – 9.6

 

Weighted average

 

6.9

 

 

6.8

 

 

8.0

 

Annual per-loan cost of servicing

 

 

 

 

 

 

 

 

 

Range

 

$68 – $87

 

 

$68 – $83

 

 

$73 – $81

 

Weighted average

 

$69

 

 

$70

 

 

$79

 

 

(1)
Weighted average inputs are based on UPB of the underlying loans.
(2)
The Company uses the pricing spread over a derived Treasury yield curve for the purpose of discounting cash flows relating to MSRs.
(3)
Prepayment speed is measured using life total CPR, which includes both voluntary and involuntary prepayments. Equivalent average life is provided as supplementary information.
Quantitative Summary of Key Assumptions Used in Valuation of MSRs as of Dates Presented, and Effect on Estimated Fair Value from Adverse Changes in Those Inputs

Following is a quantitative summary of key inputs used in the valuation of MSRs as of the dates presented, and the effect on the fair value from adverse changes in those inputs:

 

 

 

December 31, 2024

 

 

December 31, 2023

 

Fair value (in thousands)

 

$

3,867,394

 

 

$

3,919,107

 

Unpaid principal balance of underlying loans (in thousands)

 

$

226,237,613

 

 

$

230,294,583

 

Weighted average annual servicing fee rate (in basis points)

 

27

 

 

28

 

Weighted average note interest rate

 

3.8%

 

 

3.7%

 

Key inputs (1)

 

 

 

 

 

 

Pricing spread (2)

 

 

 

 

 

 

Range

 

5.4% – 8.1%

 

 

5.5% – 8.5%

 

Weighted average

 

5.4%

 

 

5.5%

 

Effect on fair value (in thousands) of (3):

 

 

 

 

 

 

5% adverse change

 

$(47,568)

 

 

$(48,362)

 

10% adverse change

 

$(94,018)

 

 

$(95,575)

 

20% adverse change

 

$(183,710)

 

 

$(186,699)

 

Prepayment speed (4)

 

 

 

 

 

 

Range

 

6.5% – 17.7%

 

 

6.5% – 17.9%

 

Weighted average

 

6.7%

 

 

7.0%

 

Equivalent average life (in years)

 

 

 

 

 

 

Range

 

2.4 – 8.9

 

 

2.7 – 9.4

 

Weighted average

 

8.6

 

 

8.5

 

Effect on fair value (in thousands) of (3):

 

 

 

 

 

 

5% adverse change

 

$(51,798)

 

 

$(53,964)

 

10% adverse change

 

$(102,010)

 

 

$(106,144)

 

20% adverse change

 

$(197,970)

 

 

$(205,509)

 

Annual per-loan cost of servicing

 

 

 

 

 

 

Range

 

$69 – $89

 

 

$70 – $89

 

Weighted average

 

$69

 

 

$70

 

Effect on fair value (in thousands) of (3):

 

 

 

 

 

 

5% adverse change

 

$(16,645)

 

 

$(17,276)

 

10% adverse change

 

$(33,291)

 

 

$(34,551)

 

20% adverse change

 

$(66,582)

 

 

$(69,103)

 

 

(1)
Weighted-average inputs are based on the UPBs of the underlying loans.
(2)
The Company uses a pricing spread over a derived Treasury yield curve for the purpose of discounting cash flows relating to MSRs.
(3)
These sensitivity analyses are limited in that they were performed as of a particular date; only account for the estimated effect of the movements in the indicated inputs; do not incorporate changes in those inputs in relation to other inputs; are subject to the accuracy of the models and inputs used; and do not incorporate other factors that would affect the Company’s overall financial performance in such events, including operational adjustments to account for changing circumstances. For these reasons, these analyses should not be viewed as earnings forecasts.
(4)
Prepayment speed is measured using life total CPR, which includes both voluntary and involuntary prepayments. Equivalent average life is provided as supplementary information.
v3.25.0.1
Mortgage-Backed Securities (Tables)
 12 Months Ended
Dec. 31, 2024
Mortgage Backed Securities [Abstract]  
Schedule of Investment in Mortgage Backed Securities Activity

Following is a summary of activity in the Company’s holdings of MBS:

 

 

 

Year ended December 31,

 

 

 

2024

 

 

2023

 

 

2022

 

 

(in thousands)

 

Balance at beginning of year

 

$

4,836,292

 

 

$

4,462,601

 

 

$

2,666,768

 

Purchases

 

 

638,155

 

 

 

3,172,193

 

 

 

3,718,093

 

Sales

 

 

(1,071,692

)

 

 

(2,629,540

)

 

 

(1,079,826

)

Repayments

 

 

(417,279

)

 

 

(349,479

)

 

 

(278,373

)

Exchange of mortgage servicing spread for interest-only
   stripped mortgage-backed securities

 

 

130,295

 

 

 

103,547

 

 

 

—

 

Changes in fair value included in income arising from:

 

 

 

 

 

 

 

 

 

Amortization and accrual of net purchase premiums and discounts

 

 

28,773

 

 

 

1,986

 

 

 

12,697

 

Valuation adjustments, net

 

 

(80,838

)

 

 

74,984

 

 

 

(576,758

)

 

 

(52,065

)

 

 

76,970

 

 

 

(564,061

)

Balance at end of year

 

$

4,063,706

 

 

$

4,836,292

 

 

$

4,462,601

 
Schedule of Mortgage Backed Securities Pledged to Secure Assets Sold

 

 

December 31, 2024

 

 

December 31, 2023

 

 

 

(in thousands)

 

Fair value of mortgage-backed securities pledged to secure
    Assets sold under agreements to repurchase

 

$

4,063,706

 

 

$

4,836,292

 
Schedule of Investments in Mortgage Backed Securities

Following is a summary of the Company’s investments in MBS:

 

 

 

December 31, 2024

 

Security type (1)

 

Principal
balance or notional amount

 

 

Unamortized
net purchase
premiums (discounts)

 

 

Cumulative
valuation
changes

 

 

Fair value

 

 

 

(in thousands)

 

Agency fixed-rate pass-through securities

 

$

3,132,005

 

 

$

(901

)

 

$

(51,612

)

 

$

3,079,492

 

Principal-only stripped securities

 

 

776,455

 

 

 

(160,960

)

 

 

(19,195

)

 

 

596,300

 

Subordinate credit-linked securities

 

 

174,813

 

 

 

(4,292

)

 

 

25,951

 

 

 

196,472

 

Senior non-Agency securities

 

 

111,479

 

 

 

(3,269

)

 

 

(3,028

)

 

 

105,182

 

 

$

4,194,752

 

 

$

(169,422

)

 

$

(47,884

)

 

 

3,977,446

 

Interest-only stripped securities

 

$

386,040

 

 

 

 

 

 

 

 

 

86,260

 

 

 

 

 

 

 

 

 

 

 

 

$

4,063,706

 

 

(1)
All MBS have maturities of more than ten years and are pledged to secure Assets sold under agreements to repurchase.

 

 

 

December 31, 2023

 

Security type (1)

 

Principal
balance or notional amount

 

 

Unamortized
net purchase
premiums (discounts)

 

 

Cumulative
valuation
changes

 

 

Fair value

 

 

 

(in thousands)

 

Agency fixed-rate pass-through securities

 

$

4,311,342

 

 

$

34

 

 

$

(41,320

)

 

$

4,270,056

 

Principal-only stripped securities

 

 

65,573

 

 

 

(18,567

)

 

 

6,330

 

 

 

53,336

 

Subordinate credit-linked securities

 

 

275,963

 

 

 

(3,633

)

 

 

28,850

 

 

 

301,180

 

Senior non-Agency securities

 

 

124,771

 

 

 

(3,567

)

 

 

(3,715

)

 

 

117,489

 

 

$

4,777,649

 

 

$

(25,733

)

 

$

(9,855

)

 

 

4,742,061

 

Interest-only stripped securities

 

$

419,791

 

 

 

 

 

 

 

 

 

94,231

 

 

 

 

 

 

 

 

 

 

 

$

4,836,292

 

 

(2)
All MBS have maturities of more than ten years and are pledged to secure Assets sold under agreements to repurchase.
v3.25.0.1
Loans Acquired for Sale at Fair Value (Tables)
 12 Months Ended
Dec. 31, 2024
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Abstract]  
Summary of Distribution of Company's Loans Acquired for Sale at Fair Value

Following is a summary of the distribution of the Company’s loans acquired for sale at fair value:

 

Loan type

 

December 31, 2024

 

 

December 31, 2023

 

 

 

(in thousands)

 

Held for sale to nonaffiliates—GSE eligible (1)

 

$

1,311,754

 

 

$

491,108

 

Held for sale to PLS

 

 

 

 

 

 

GSE eligible

 

 

175,145

 

 

 

62,234

 

Government insured or guaranteed

 

 

426,963

 

 

 

106,069

 

 

 

 

602,108

 

 

 

168,303

 

Jumbo

 

 

194,485

 

 

 

3,289

 

Home equity lines of credit

 

 

1,368

 

 

 

1,803

 

Repurchased pursuant to representations and warranties

 

 

6,603

 

 

 

4,515

 

 

$

2,116,318

 

 

$

669,018

 

Loans pledged to secure:

 

 

 

 

 

 

Assets sold under agreements to repurchase

 

$

2,075,473

 

 

$

659,751

 

Mortgage loan participation purchase and sale agreements

 

 

12,142

 

 

 

—

 

 

$

2,087,615

 

 

$

659,751

 

 

(1)
GSE eligibility refers to the eligibility of loans for sale to Fannie Mae or Freddie Mac. The Company sells or finances a portion of
its GSE eligible loan production to other investors, including PLS.
v3.25.0.1
Loans at Fair Value (Tables)
 12 Months Ended
Dec. 31, 2024
Mortgage Loans At Fair Value [Abstract]  
Summary of Distribution of Company's Loans at Fair Value

Following is a summary of the distribution of the Company’s loans at fair value:

 

Loan type

 

December 31, 2024

 

 

December 31, 2023

 

 

 

(in thousands)

 

Loans in VIEs:

 

 

 

 

 

 

Agency-conforming loans secured by non-owner occupied properties

 

$

2,146,328

 

 

$

1,383,392

 

Fixed interest rate jumbo loans

 

 

45,381

 

 

 

48,297

 

 

 

2,191,709

 

 

 

1,431,689

 

Distressed loans

 

 

1,866

 

 

 

2,131

 

 

$

2,193,575

 

 

$

1,433,820

 

Loans at fair value pledged to secure:

 

 

 

 

 

 

Asset-backed financings at fair value (1)

 

$

2,191,709

 

 

$

1,431,689

 

Assets sold under agreements to repurchase

 

 

160

 

 

 

207

 

 

$

2,191,869

 

 

$

1,431,896

 

 

(1)
As discussed in Note 6 ‒ Variable Interest Entities ‒ Subordinate Mortgage-Backed Securities, the Company holds a portion of the securities issued by the VIEs. At December 31, 2024 and December 31, 2023, $130.8 million and $85.3 million, respectively, of such retained securities were pledged to secure Assets sold under agreements to repurchase.
v3.25.0.1
Derivative and Credit Risk Transfer Strip Assets and Liabilities (Tables)
 12 Months Ended
Dec. 31, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Summary of Derivative and Credit Risk Transfer Strip Assets and Liabilities

Derivative and credit risk transfer strip assets and liabilities are summarized below:

 

 

 

December 31, 2024

 

 

December 31, 2023

 

 

 

(in thousands)

 

Derivative assets

 

$

56,840

 

 

$

177,984

 

 

$

56,840

 

 

$

177,984

 

 

 

 

 

 

 

Derivative liabilities

 

$

3,291

 

 

$

4,689

 

Credit risk transfer strip liabilities

 

 

4,060

 

 

 

46,692

 

 

$

7,351

 

 

$

51,381

 
Derivative Assets and Derivative and Credit Risk Transfer Liabilities at Fair Value and Related Margin Deposits

The Company had the following derivative assets and liabilities recorded within Derivative assets and Derivative and credit risk transfer liabilities at fair value and related margin deposits on the consolidated balance sheets:

 

 

 

December 31, 2024

 

 

December 31, 2023

 

 

 

 

 

 

Fair value

 

 

 

 

 

Fair value

 

 

 

Notional

 

 

Derivative

 

 

Derivative

 

 

Notional

 

 

Derivative

 

 

Derivative

 

Instrument

 

amount (1)

 

 

assets

 

 

liabilities

 

 

amount (1)

 

 

assets

 

 

liabilities

 

 

(in thousands)

 

Hedging derivatives subject to master netting arrangements (2):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Call options on interest rate futures purchase contracts

 

 

500,000

 

 

$

156

 

 

$

—

 

 

 

2,315,000

 

 

$

41,712

 

 

$

2,005

 

Put options on interest rate futures purchase contracts

 

 

1,690,000

 

 

 

6,372

 

 

 

—

 

 

 

2,900,000

 

 

 

4,324

 

 

 

—

 

Call options on interest rate futures sell contracts

 

 

—

 

 

 

—

 

 

 

—

 

 

 

500,000

 

 

 

—

 

 

 

1,328

 

Forward purchase contracts

 

 

1,154,515

 

 

 

614

 

 

 

6,336

 

 

 

2,789,324

 

 

 

15,905

 

 

 

490

 

Forward sale contracts

 

 

7,080,982

 

 

 

54,056

 

 

 

1,753

 

 

 

7,219,512

 

 

 

671

 

 

 

50,363

 

MBS call options

 

 

—

 

 

 

—

 

 

 

—

 

 

 

500,000

 

 

 

3,218

 

 

 

—

 

MBS put options

 

 

450,000

 

 

 

2,114

 

 

 

—

 

 

 

450,000

 

 

 

5

 

 

 

—

 

Bond futures

 

 

1,713,000

 

 

 

—

 

 

 

—

 

 

 

2,860,500

 

 

 

—

 

 

 

—

 

Swap futures

 

 

951,200

 

 

 

—

 

 

 

—

 

 

 

1,048,800

 

 

 

—

 

 

 

—

 

Other derivatives not subject to master netting arrangements:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CRT derivatives

 

 

4,961,644

 

 

 

29,377

 

 

 

—

 

 

 

5,437,551

 

 

 

16,160

 

 

 

—

 

Interest rate lock commitments

 

 

1,166,566

 

 

 

3,562

 

 

 

3,118

 

 

 

874,017

 

 

 

7,596

 

 

 

64

 

Total derivative instruments before netting

 

 

 

 

 

96,251

 

 

 

11,207

 

 

 

 

 

 

89,591

 

 

 

54,250

 

Netting

 

 

 

 

 

(39,411

)

 

 

(7,916

)

 

 

 

 

 

88,393

 

 

 

(49,561

)

 

 

 

 

$

56,840

 

 

$

3,291

 

 

 

 

 

$

177,984

 

 

$

4,689

 

Margin deposits (received from) placed
   with derivative counterparties included
   in derivative balances above, net

 

 

 

 

$

(31,497

)

 

 

 

 

 

 

 

$

137,955

 

 

 

 

Derivative assets pledged to secure:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Notes payable secured by credit risk transfer
   and mortgage servicing assets

 

 

 

 

$

29,377

 

 

 

 

 

 

 

 

$

16,160

 

 

 

 

 

(1)
Notional amounts provide an indication of the volume of the Company’s derivative activities.
(2)
All hedging derivatives are interest rate derivatives that are used as economic hedges.
Summary of Derivative Assets, Financial Instruments and Collateral Held by Counterparty

The following table summarizes by significant counterparty the amounts of derivative asset positions after considering master netting arrangements and financial instruments or cash pledged that do not meet the accounting guidance qualifying for setoff accounting.

 

 

 

December 31, 2024

 

 

December 31, 2023

 

 

 

Net amount

 

 

Gross amounts

 

 

 

 

 

Net amount

 

 

Gross amounts

 

 

 

 

 

 

of assets

 

 

not offset in the

 

 

 

 

 

of assets

 

 

not offset in the

 

 

 

 

 

 

presented

 

 

consolidated

 

 

 

 

 

presented

 

 

consolidated

 

 

 

 

 

 

in the

 

 

balance sheet

 

 

 

 

 

in the

 

 

balance sheet

 

 

 

 

 

 

consolidated

 

 

 

 

 

Cash

 

 

 

 

 

consolidated

 

 

 

 

 

Cash

 

 

 

 

 

 

balance

 

 

Financial

 

 

collateral

 

 

Net

 

 

balance

 

 

Financial

 

 

collateral

 

 

Net

 

Counterparty

 

sheet

 

 

instruments

 

 

received

 

 

amount

 

 

sheet

 

 

instruments

 

 

received

 

 

amount

 

 

 

(in thousands)

 

CRT derivatives

 

$

29,377

 

 

$

—

 

 

$

—

 

 

$

29,377

 

 

$

16,160

 

 

$

—

 

 

$

—

 

 

$

16,160

 

Interest rate lock commitments

 

 

3,562

 

 

 

—

 

 

 

—

 

 

 

3,562

 

 

 

7,596

 

 

 

—

 

 

 

—

 

 

 

7,596

 

Morgan Stanley & Co. LLC

 

 

9,303

 

 

 

—

 

 

 

—

 

 

 

9,303

 

 

 

79,825

 

 

 

—

 

 

 

—

 

 

 

79,825

 

RJ O’Brien & Associates, LLC

 

 

6,528

 

 

 

—

 

 

 

—

 

 

 

6,528

 

 

 

42,703

 

 

 

—

 

 

 

—

 

 

 

42,703

 

Bank of America, N.A.

 

 

3,150

 

 

 

—

 

 

 

—

 

 

 

3,150

 

 

 

3,418

 

 

 

—

 

 

 

—

 

 

 

3,418

 

J.P. Morgan Securities LLC

 

 

1,237

 

 

 

—

 

 

 

—

 

 

 

1,237

 

 

 

997

 

 

 

—

 

 

 

—

 

 

 

997

 

Wells Fargo Securities, LLC

 

 

895

 

 

 

—

 

 

 

—

 

 

 

895

 

 

 

7,759

 

 

 

—

 

 

 

—

 

 

 

7,759

 

Citigroup Global Markets Inc.

 

 

712

 

 

 

—

 

 

 

—

 

 

 

712

 

 

 

503

 

 

 

—

 

 

 

—

 

 

 

503

 

Goldman Sachs & Co. LLC

 

 

251

 

 

 

—

 

 

 

—

 

 

 

251

 

 

 

18,701

 

 

 

—

 

 

 

—

 

 

 

18,701

 

Other

 

 

1,825

 

 

 

—

 

 

 

—

 

 

 

1,825

 

 

 

322

 

 

 

—

 

 

 

—

 

 

 

322

 

 

$

56,840

 

 

$

—

 

 

$

—

 

 

$

56,840

 

 

$

177,984

 

 

$

—

 

 

$

—

 

 

$

177,984

 

 
Summary of Derivative Liabilities, Financial Liabilities and Collateral Pledged by Counterparty

 

 

 

December 31, 2024

 

 

December 31, 2023

 

 

 

Net amount

 

 

Gross amounts

 

 

 

 

 

Net amount

 

 

Gross amounts

 

 

 

 

 

 

of liabilities

 

 

not offset in the

 

 

 

 

 

of liabilities

 

 

not offset in the

 

 

 

 

 

 

presented

 

 

consolidated

 

 

 

 

 

presented

 

 

consolidated

 

 

 

 

 

 

in the

 

 

balance sheet

 

 

 

 

 

in the

 

 

balance sheet

 

 

 

 

 

 

consolidated

 

 

Financial

 

 

Cash

 

 

 

 

 

consolidated

 

 

Financial

 

 

Cash

 

 

 

 

 

 

balance

 

 

instruments

 

 

collateral

 

 

Net

 

 

balance

 

 

instruments

 

 

collateral

 

 

Net

 

Counterparty

 

sheet

 

 

(1)

 

 

pledged

 

 

amount

 

 

sheet

 

 

(1)

 

 

pledged

 

 

amount

 

 

 

(in thousands)

 

Interest rate lock commitments

 

$

3,118

 

 

$

—

 

 

$

—

 

 

$

3,118

 

 

$

64

 

 

$

—

 

 

$

—

 

 

$

64

 

J.P. Morgan Securities LLC

 

 

1,695,007

 

 

 

(1,695,007

)

 

 

—

 

 

 

—

 

 

 

1,521,072

 

 

 

(1,521,072

)

 

 

—

 

 

 

—

 

Bank of America, N.A.

 

 

787,883

 

 

 

(787,883

)

 

 

—

 

 

 

—

 

 

 

785,756

 

 

 

(785,756

)

 

 

—

 

 

 

—

 

Wells Fargo Securities, LLC

 

 

670,605

 

 

 

(670,605

)

 

 

—

 

 

 

—

 

 

 

569,129

 

 

 

(569,129

)

 

 

—

 

 

 

—

 

Atlas Securitized Products, L.P.

 

 

609,780

 

 

 

(609,780

)

 

 

—

 

 

 

—

 

 

 

783,456

 

 

 

(783,456

)

 

 

—

 

 

 

—

 

Barclays Capital Inc.

 

 

545,678

 

 

 

(545,678

)

 

 

—

 

 

 

—

 

 

 

807,404

 

 

 

(803,641

)

 

 

—

 

 

 

3,763

 

Citigroup Global Markets Inc.

 

 

431,201

 

 

 

(431,201

)

 

 

—

 

 

 

—

 

 

 

147,093

 

 

 

(147,093

)

 

 

—

 

 

 

—

 

Santander US Capital

 

 

362,196

 

 

 

(362,196

)

 

 

—

 

 

 

—

 

 

 

292,091

 

 

 

(292,091

)

 

 

—

 

 

 

—

 

RBC Capital Markets, L.P.

 

 

353,765

 

 

 

(353,765

)

 

 

—

 

 

 

—

 

 

 

128,602

 

 

 

(128,602

)

 

 

—

 

 

 

—

 

Goldman Sachs & Co. LLC

 

 

311,997

 

 

 

(311,997

)

 

 

—

 

 

 

—

 

 

 

145,007

 

 

 

(145,007

)

 

 

—

 

 

 

—

 

Morgan Stanley & Co. LLC

 

 

280,561

 

 

 

(280,561

)

 

 

—

 

 

 

—

 

 

 

25,814

 

 

 

(25,814

)

 

 

—

 

 

 

—

 

Daiwa Capital Markets

 

 

230,033

 

 

 

(230,033

)

 

 

—

 

 

 

—

 

 

 

340,975

 

 

 

(340,975

)

 

 

—

 

 

 

—

 

Mizuho Financial Group

 

 

98,196

 

 

 

(98,121

)

 

 

—

 

 

 

75

 

 

 

67,637

 

 

 

(67,110

)

 

 

—

 

 

 

527

 

Bank of Montreal

 

 

72,859

 

 

 

(72,859

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

BNP Paribas

 

 

59,729

 

 

 

(59,729

)

 

 

—

 

 

 

—

 

 

 

10,121

 

 

 

(10,121

)

 

 

—

 

 

 

—

 

Nomura Holdings America, Inc

 

 

36

 

 

 

—

 

 

 

—

 

 

 

36

 

 

 

8,135

 

 

 

(7,940

)

 

 

—

 

 

 

195

 

Other

 

 

62

 

 

 

—

 

 

 

—

 

 

 

62

 

 

 

140

 

 

 

—

 

 

 

—

 

 

 

140

 

 

$

6,512,706

 

 

$

(6,509,415

)

 

$

—

 

 

$

3,291

 

 

$

5,632,496

 

 

$

(5,627,807

)

 

$

—

 

 

$

4,689

 

 

(1)
Amounts represent the UPB of Assets sold under agreements to repurchase.
Net Gains (Losses) Recognized on Derivative Financial Instruments

Following are the net gains (losses) recognized by the Company on derivative financial instruments and the consolidated statements of operations lines where such gains and losses are included:

 

 

 

 

Year ended December 31,

 

Derivative activity

 

Consolidated statements of operations line

2024

 

 

2023

 

 

2022

 

 

 

 

(in thousands)

 

Interest rate lock commitments

 

Net gains on loans acquired for sale (1)

$

(7,089

)

 

$

8,010

 

 

$

(2,928

)

CRT derivatives

 

Net gains (losses) on investments
   and financings

$

27,020

 

 

$

56,544

 

 

$

(3,838

)

Hedged item:

 

 

 

 

 

 

 

 

 

 

Assets sold under agreements
   to repurchase

 

Net gains (losses) on investments
   and financings

$

20,098

 

 

$

(83,201

)

 

$

—

 

Interest rate lock commitments
   and loans acquired for sale

 

Net gains on loans acquired for sale

$

19,896

 

 

$

4,636

 

 

$

553,965

 

Mortgage servicing rights

 

Net loan servicing fees

$

(226,608

)

 

$

(92,775

)

 

$

(204,879

)

 

(1)
Represents net change in fair value of IRLCs from the beginning to the end of the year. Amounts recognized at the date of commitment and fair value changes recognized during the year until purchase of the underlying loan or cancellation of the commitment are shown in the rollforwards of IRLCs for the years in Note 7 – Fair Value – Financial Statement Items Measured at Fair Value on a Recurring Basis.
v3.25.0.1
Mortgage Servicing Rights (Tables)
 12 Months Ended
Dec. 31, 2024
Text Block [Abstract]  
Summary of MSRs Carried at Fair Value

Following is a summary of MSRs:

 

 

Year ended December 31,

 

 

 

2024

 

 

2023

 

 

2022

 

 

 

(in thousands)

 

 

Balance at beginning of year

$

3,919,107

 

 

$

4,012,737

 

 

$

2,892,855

 

 

Purchases

 

29,429

 

 

 

16,258

 

 

 

—

 

 

MSRs resulting from loan sales

 

219,001

 

 

 

292,527

 

 

 

670,343

 

 

Transfers to Agency of mortgage servicing
    rights relating to delinquent loans

 

561

 

 

 

(472

)

 

 

104

 

 

Exchange of mortgage servicing spread for
    interest-only stripped mortgage-backed
    securities and interest receivable

 

(130,295

)

 

 

(105,096

)

 

 

—

 

 

Changes in fair value:

 

 

 

 

 

 

 

 

 

Due to changes in inputs used in valuation
    model (1)

 

217,182

 

 

 

87,811

 

 

 

819,727

 

 

Other changes in fair value (2)

 

(387,591

)

 

 

(384,658

)

 

 

(370,292

)

 

 

(170,409

)

 

 

(296,847

)

 

 

449,435

 

 

Balance at end of year

$

3,867,394

 

 

$

3,919,107

 

 

$

4,012,737

 

 

 

 

December 31, 2024

 

 

December 31, 2023

 

 

(in thousands)

 

Fair value of mortgage servicing rights pledged to secure Assets
    sold under agreements to repurchase and Notes payable
    secured by credit risk transfer and mortgage servicing assets

$

3,807,065

 

 

$

3,871,249

 

 

(1)
Primarily reflects changes in pricing spread, prepayment speed, servicing cost, and UPB of underlying loan inputs.
(2)
Represents changes due to realization of expected cash flows.
Summary of Net Loan Servicing Fees Relating to MSRs

Servicing fees relating to MSRs are recorded in Net loan servicing fees – from nonaffiliates on the Company’s consolidated statements of operations and are summarized below:

 

 

 

Year ended December 31,

 

 

 

 

2024

 

 

2023

 

 

2022

 

 

 

(in thousands)

Contractually specified servicing fees

 

$

644,642

 

 

$

659,438

 

 

$

625,210

 

 

Ancillary and other fees:

 

 

 

 

 

 

 

 

 

 

Late charges

 

 

4,056

 

 

 

3,352

 

 

 

2,526

 

 

Other

 

 

10,666

 

 

 

13,656

 

 

 

23,515

 

 

 

 

14,722

 

 

 

17,008

 

 

 

26,041

 

 

 

$

659,364

 

 

$

676,446

 

 

$

651,251

 

 

Average UPB of underlying loans

 

$

228,705,758

 

 

$

231,203,032

 

 

$

222,847,593

 

 

 

 

 

 

 

 

 

 

 

 

 
v3.25.0.1
Other Assets (Tables)
 12 Months Ended
Dec. 31, 2024
Other Assets [Abstract]  
Summary of Other Assets

Other assets are summarized below:

 

 

 

December 31, 2024

 

 

December 31, 2023

 

 

 

(dollars in thousands)

 

Margin deposits

 

$

346,241

 

 

$

124,293

 

Interest receivable

 

 

38,661

 

 

 

37,305

 

Servicing fees receivable

 

 

10,820

 

 

 

14,603

 

Correspondent lending receivables

 

 

3,930

 

 

 

6,313

 

Other receivables

 

 

16,706

 

 

 

7,199

 

Real estate acquired in settlement of loans

 

 

2,464

 

 

 

4,541

 

Other

 

 

19,399

 

 

 

58,284

 

 

 

$

438,221

 

 

$

252,538

 

Real estate acquired in settlement of loans pledged to secure
   Assets sold under agreements to repurchase

 

$

527

 

 

$

1,905

 
v3.25.0.1
Short-Term Debt (Tables)
 12 Months Ended
Dec. 31, 2024
Summary of Financial Information Relating to Assets Sold under Agreements to Repurchase

Following is a summary of financial information relating to assets sold under agreements to repurchase:

 

 

 

Year ended December 31,

 

 

 

2024

 

 

2023

 

 

2022

 

 

 

(dollars in thousands)

 

Weighted average interest rate (1)

 

 

5.94

%

 

 

5.91

%

 

 

2.81

%

Average balance

 

$

5,478,037

 

 

$

6,306,627

 

 

$

5,625,345

 

Total interest expense

 

$

331,800

 

 

$

378,367

 

 

$

165,436

 

Maximum daily amount outstanding

 

$

7,865,435

 

 

$

9,460,676

 

 

$

8,834,936

 

 

(1)
Excludes the effect of amortization of debt issuance costs and non-utilization fees of $6.4 million, $5.5 million and $7.6 million for the years ended December 31, 2024, 2023 and 2022, respectively.

 

 

 

December 31, 2024

 

 

December 31, 2023

 

 

 

(dollars in thousands)

 

Carrying value:

 

 

 

 

 

 

Unpaid principal balance

 

$

6,509,415

 

 

$

5,627,807

 

Unamortized debt issuance costs

 

 

(8,477

)

 

 

(3,249

)

 

 

$

6,500,938

 

 

$

5,624,558

 

Weighted average interest rate

 

 

5.37

%

 

 

6.14

%

Available borrowing capacity (1):

 

 

 

 

 

 

Committed

 

$

565,488

 

 

$

634,147

 

Uncommitted

 

 

4,559,239

 

 

 

5,221,706

 

 

$

5,124,727

 

 

$

5,855,853

 

Margin deposits placed with (received from) counterparties included in
   Other assets (Accounts payable and accrued liabilities), net

 

$

296,922

 

 

$

(116,358

)

Assets securing agreements to repurchase:

 

 

 

 

 

 

Mortgage-backed securities

 

$

4,063,706

 

 

$

4,836,292

 

Loans acquired for sale at fair value

 

$

2,075,473

 

 

$

659,751

 

Loans at fair value:

 

 

 

 

 

 

Securities retained in asset-backed financings

 

$

130,839

 

 

$

85,344

 

Distressed

 

$

160

 

 

$

207

 

Deposits securing credit risk transfer arrangements

 

$

199,965

 

 

$

77,417

 

Mortgage servicing rights (2)

 

$

1,906,043

 

 

$

2,000,574

 

Servicing advances

 

$

50,333

 

 

$

101,927

 

Real estate acquired in settlement of loans

 

$

527

 

 

$

1,905

 

 

(1)
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.
(2)
Beneficial interests in Fannie Mae MSRs are pledged to secure both Assets sold under agreements to repurchase and Notes payable secured by credit risk transfer and mortgage servicing assets.
Summary of Maturities of Outstanding Advances Under Repurchase Agreements by Maturity Date

Following is a summary of maturities of outstanding advances under repurchase agreements by maturity date:

 

Remaining maturity at December 31, 2024 (1)

 

Unpaid
principal
balance

 

 

 

(in thousands)

 

Within 30 days

 

$

4,568,493

 

Over 30 to 90 days

 

 

1,326,293

 

Over 90 days to 180 days

 

 

353,765

 

Over 180 days to 1 year

 

 

—

 

Over 1 year to 2 years

 

 

260,864

 

 

$

6,509,415

 

Weighted average maturity (in months)

 

 

1.6

 

 

(1)
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 repurchase agreements mature if the fair values (as determined by the applicable lender) of the assets securing those repurchase agreements decreases.
Summary of Assets Sold under Agreements to Repurchase by Counterparty

Securities

 

Counterparty

 

Amount at risk

 

 

Weighted-average maturity

 

 

(in thousands)

 

 

 

Goldman Sachs & Co. LLC

 

$

3,817

 

 

February 28, 2025

Citibank, N.A.

 

$

43,489

 

 

January 13, 2025

Bank of America, N.A.

 

$

29,234

 

 

January 10, 2025

JPMorgan Chase & Co.

 

$

46,159

 

 

January 11, 2025

Wells Fargo Securities, LLC

 

$

28,622

 

 

January 23, 2025

Barclays Capital Inc.

 

$

17,969

 

 

January 12, 2025

Santander US Capital

 

$

14,310

 

 

January 13, 2025

Bank of Montreal

 

$

7,215

 

 

February 12, 2025

Daiwa Capital Markets America Inc.

 

$

5,149

 

 

January 2, 2025

Mizuho Financial Group

 

$

3,968

 

 

January 6, 2025

CRT arrangements

 

Counterparty

 

Amount at risk

 

 

Weighted-average maturity

 

 

(in thousands)

 

 

 

Goldman Sachs & Co. LLC

 

$

111,176

 

 

January 18, 2025
Summary of Mortgage Loan Participation Purchase and Sale Agreement

The mortgage loan participation purchase and sale agreement is summarized below:

 

 

 

Year ended December 31,

 

 

 

2024

 

 

2023

 

 

2022

 

 

 

(dollars in thousands)

 

Average balance

 

$

17,852

 

 

$

19,079

 

 

$

30,024

 

Weighted average interest rate (1)

 

 

6.54

%

 

 

6.50

%

 

 

2.99

%

Total interest expense

 

$

1,292

 

 

$

1,365

 

 

$

1,023

 

Maximum daily amount outstanding

 

$

78,068

 

 

$

90,565

 

 

$

91,857

 

 

(1)
Excludes the effect of amortization of debt issuance costs of $125,000 for each of the years ended December 31, 2024, 2023 and 2022.

 

 

 

December 31, 2024

 

 

 

(dollars in thousands)

 

Carrying value:

 

 

 

Amount outstanding

 

$

11,650

 

Unamortized debt issuance costs

 

 

(57

)

 

$

11,593

 

Weighted average interest rate

 

 

5.58

%

Loans acquired for sale pledged to secure mortgage loan participation
   purchase and sale agreement

 

$

12,142

 
Loans RE and MSRs Sold Under Agreements to Repurchase [Member]  
Summary of Assets Sold under Agreements to Repurchase by Counterparty

Loans, REO and MSRs

 

 

 

 

 

 

Weighted-average maturity

Counterparty

 

Amount at risk

 

 

Advances

 

Facility

 

 

(in thousands)

 

 

 

 

 

Goldman Sachs & Co. LLC

 

$

146,796

 

 

March 27, 2025

 

February 21, 2026

Atlas Securitized Products, L.P.

 

$

110,744

 

 

February 28, 2025

 

June 26, 2026

Citibank, N.A.

 

$

55,845

 

 

January 11, 2025

 

June 11, 2026

Bank of America, N.A.

 

$

37,636

 

 

January 24, 2025

 

June 10, 2026

JPMorgan Chase & Co.

 

$

14,712

 

 

February 19, 2025

 

June 28, 2026

Wells Fargo Securities, LLC

 

$

844

 

 

March 16, 2025

 

October 15, 2025

Barclays Capital Inc.

 

$

6,491

 

 

March 9, 2025

 

March 6, 2026

RBC Capital Markets, L.P.

 

$

18,420

 

 

April 12, 2025

 

November 10, 2025

Morgan Stanley & Co. LLC

 

$

13,879

 

 

March 16, 2025

 

May 22, 2026

BNP Paribas

 

$

319

 

 

March 27, 2025

 

September 30, 2026

 
v3.25.0.1
Long-Term Debt (Tables)
 12 Months Ended
Dec. 31, 2024
Summary of Financial Information Relating to Note Payable Secured by Credit Risk Transfer and Mortgage Servicing Assets

Following is a summary of financial information relating to notes payable secured by credit risk transfer and mortgage servicing assets:

 

Year ended December 31,

 

 

2024

 

 

2023

 

 

2022

 

 

(dollars in thousands)

 

Average balance

$

2,883,379

 

 

$

2,969,174

 

 

$

2,646,597

 

Weighted average interest rate (1)

 

8.67

%

 

 

8.42

%

 

 

4.92

%

Total interest expense

$

261,008

 

 

$

257,601

 

 

$

137,021

 

 

(1)
Excludes the effect of amortization of debt issuance costs of $11.0 million, $7.5 million and $6.7 million for the years ended December 31, 2024, 2023 and 2022, respectively

 

 

 

December 31, 2024

 

 

December 31, 2023

 

 

(dollars in thousands)

 

Carrying value:

 

 

 

 

 

Unpaid principal balance:

 

 

 

 

 

CRT arrangement financing

$

710,329

 

 

$

747,662

 

Fannie Mae MSR financing

 

1,075,000

 

 

 

1,025,000

 

Freddie Mac MSR and servicing advance receivable financing

 

1,153,486

 

 

 

1,145,000

 

 

 

2,938,815

 

 

 

2,917,662

 

Unamortized debt issuance costs

 

(9,025

)

 

 

(7,057

)

$

2,929,790

 

 

$

2,910,605

 

Weighted average interest rate

 

7.60

%

 

 

8.73

%

Assets securing notes payable:

 

 

 

 

 

MSRs (1)

$

3,807,065

 

 

$

3,871,249

 

Servicing advances

$

39,063

 

 

$

79,274

 

CRT arrangements:

 

 

 

 

 

Deposits securing CRT arrangements

$

910,743

 

 

$

1,132,081

 

Derivative assets

$

29,377

 

 

$

16,160

 

 

(1)
Beneficial interests in Freddie Mac MSRs are pledged as collateral for the Notes payable secured by credit risk transfer and mortgage servicing assets. Beneficial interests in Fannie Mae MSRs are pledged for both Assets sold under agreements to repurchase and Notes payable secured by credit risk transfer and mortgage servicing assets.
Summary of Financial Information Relating to Unsecured Senior Notes

Following is financial information relating to the unsecured senior notes:

 

 

Year ended December 31,

 

 

2024

 

 

2023

 

 

2022

 

 

(in thousands)

 

Average balance

$

704,279

 

 

$

561,877

 

 

$

541,233

 

Weighted average interest rate (1)

 

6.24

%

 

 

5.65

%

 

 

5.64

%

Interest expense

$

48,000

 

 

$

34,969

 

 

$

33,368

 
(1)
Excludes the effect of amortization of debt issuance costs of $4.1 million, $3.2 million and $2.8 million for the years ended December 31, 2024, 2023 and 2022, respectively.

 

 

December 31, 2024

 

 

December 31, 2023

 

 

(in thousands)

 

Carrying value:

 

 

 

 

 

Unpaid principal balance

$

615,000

 

 

$

608,500

 

Unamortized debt issuance costs

 

(9,140

)

 

 

(8,042

)

$

605,860

 

 

$

600,458

 

 
Summary of Financial Information Relating to Asset-Backed Financing of a VIE at Fair Value

Following is a summary of financial information relating to the asset-backed financings of VIEs at fair value described in Note 6 ‒ Variable Interest Entities ‒ Subordinate Mortgage-Backed Securities:

 

 

Year ended December 31,

 

 

2024

 

 

2023

 

 

2022

 

 

(dollars in thousands)

 

Average balance

$

1,612,065

 

 

$

1,354,803

 

 

$

1,512,590

 

Total interest expense

$

55,763

 

 

$

49,988

 

 

$

53,570

 

Weighted average interest rate (1)

 

3.23

%

 

 

3.73

%

 

 

3.42

%

 

(1)
Excludes the effect of amortization (accrual) of debt issuance costs (premiums) of $3.7 million, $(496,000) and $1.8 million for the years ended December 31, 2024, 2023 and 2022, respectively.

 

 

December 31, 2024

 

 

December 31, 2023

 

 

(dollars in thousands)

 

Fair value

$

2,040,375

 

 

$

1,336,731

 

Unpaid principal balance

$

2,269,742

 

 

$

1,590,003

 

Weighted average interest rate

 

3.22

%

 

 

3.22

%

 
Schedule of Contractual Maturities on Long Term Debt Obligations

Maturities of Long-Term Debt

Contractual maturities of long-term debt obligations (based on final maturity dates) are as follows:

 

 

 

 

 

Year ended December 31,

 

 

 

 

 

Total

 

 

2025

 

 

2026

 

 

2027

 

 

2028

 

 

2029

 

 

Thereafter

 

 

(in thousands)

 

Notes payable secured by credit risk transfer
    and mortgage servicing assets (1)

$

2,938,815

 

 

$

44,575

 

 

$

1,503,486

 

 

$

869,123

 

 

$

521,631

 

 

$

—

 

 

$

—

 

Unsecured senior notes

 

615,000

 

 

 

—

 

 

 

345,000

 

 

 

—

 

 

 

53,500

 

 

 

216,500

 

 

 

—

 

Asset-backed financings at fair value (2)

 

2,269,742

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2,269,742

 

Interest-only security payable at fair value (2)

 

34,222

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

34,222

 

Total

$

5,857,779

 

 

$

44,575

 

 

$

1,848,486

 

 

$

869,123

 

 

$

575,131

 

 

$

216,500

 

 

$

2,303,964

 

 

(1)
Based on stated maturities. As discussed above, certain of the Notes payable secured by credit risk and mortgage servicing assets allow the Company to exercise optional extensions.
(2)
Contractual maturity does not reflect expected repayment as borrowers of the underlying loans generally have the right to repay their loans at any time.
CRT Arrangement Financing [Member]  
Summary of Term Note Issued to Qualified Institutional Buyers

Following is a summary of the CRT Term Notes outstanding:

 

CRT
Term
Notes

 

Issuance date

 

Issuance amount

 

 

Unpaid principal
balance

 

 

Annual interest rate spread (1)

 

Maturity date

 

 

 

 

(in thousands)

 

 

 

 

 

2024 3R

 

August 28, 2024

 

$

158,500

 

 

$

151,631

 

 

3.10%

 

September 27, 2028

2024 2R

 

April 4, 2024

 

$

247,000

 

 

 

230,374

 

 

3.35%

 

March 29, 2027

2024 1R

 

March 6, 2024

 

$

306,000

 

 

 

283,749

 

 

3.50%

 

March 1, 2027

2020 1R

 

February 14, 2020

 

$

350,000

 

 

 

44,575

 

 

3.35%

 

February 27, 2025

 

 

 

 

 

 

$

710,329

 

 

 

 

 

 

(1)
Interest rates are charged at a spread to the Secured Overnight Financing Rate ("SOFR").
Fannie Mae MSR Financing  
Summary of Term Note Issued to Qualified Institutional Buyers

Following is a summary of the term financing of the Company’s Fannie Mae MSRs:

 

 

 

 

 

 

 

 

 

 

Maturity date

Issuance

 

Issuance date

 

Unpaid principal
balance

 

 

Annual interest rate spread(1)

 

Stated

 

Optional extension (2)

 

 

 

 

(in thousands)

 

 

 

 

 

 

 

Term Loans

 

 

 

 

 

 

 

 

 

2023

 

May 25, 2023

 

$

370,000

 

 

3.00%

 

May 25, 2028

 

May 25, 2029

Term Notes

 

 

 

 

 

 

 

 

 

2024

 

June 27, 2024

 

 

355,000

 

 

2.75%

 

December 27, 2027

 

June 26, 2028

2021

 

March 30, 2021

 

 

350,000

 

 

3.00%

 

March 25, 2026

 

March 27, 2028

 

 

 

 

$

1,075,000

 

 

 

 

 

 

 

 

(1)
Interest rates are charged at a spread to SOFR.
(2)
The indentures relating to these issuances provide the Company with the option of extending the maturity dates of the FTL-1Term Loans and FT-1 Term Notes under conditions specified in the respective agreements.
Exchangeable Senior Notes [Member]  
Summary of Term Note Issued to Qualified Institutional Buyers The Exchangeable Notes are summarized below:

Initial issuance date

 

Unpaid principal balance

 

 

Annual interest rate

 

Conversion rates (1)

 

Maturity date (2)

 

(in thousands)

 

 

 

 

 

 

 

May 24, 2024 (3)

 

$

216,500

 

 

8.50%

 

63.3332

 

June 1, 2029

March 5, 2021

 

 

345,000

 

 

5.50%

 

46.1063

 

March 15, 2026

 

 

$

561,500

 

 

 

 

 

 

 

 

(1)
Common Shares per $1,000 principal amount.
(2)
Unless repurchased or exchanged in accordance with their terms before such date.
(3)
Balance includes $16.5 million issued on June 4, 2024.
v3.25.0.1
Liability for Losses Under Representations and Warranties (Tables)
 12 Months Ended
Dec. 31, 2024
Liability For Representations And Warranties [Abstract]  
Summary of Company's Liability for Losses under Representations and Warranties

Following is a summary of the Company’s liability for losses under representations and warranties:

 

 

Year ended December 31,

 

 

2024

 

 

2023

 

 

2022

 

 

(in thousands)

 

Balance, beginning of year

$

26,143

 

 

$

39,471

 

 

$

40,249

 

Provision for losses:

 

 

 

 

 

 

 

 

Pursuant to loan sales

 

1,246

 

 

 

2,449

 

 

 

4,442

 

Reduction in liability due to change in estimate

 

(20,269

)

 

 

(15,228

)

 

 

(4,227

)

Losses incurred

 

(234

)

 

 

(549

)

 

 

(993

)

Balance, end of year

$

6,886

 

 

$

26,143

 

 

$

39,471

 

UPB of loans subject to representations and warranties at end of year

$

222,063,618

 

 

$

227,456,712

 

 

$

228,339,312

 
v3.25.0.1
Commitments and Contingencies (Tables)
 12 Months Ended
Dec. 31, 2024
Commitments and Contingencies Disclosure [Abstract]  
Company's Outstanding Contractual Commitments

The following table summarizes the Company’s outstanding contractual commitments:

 

 

 

December 31, 2024

 

 

 

(in thousands)

 

Commitments to purchase loans acquired for sale

 

$

1,166,566

 
v3.25.0.1
Shareholders' Equity (Tables)
 12 Months Ended
Dec. 31, 2024
Equity [Abstract]  
Schedule of Preferred Shares of Beneficial Interest

Preferred shares of beneficial interest are summarized below:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends per share, year ended December 31,

 

Series

 

Description (1)

 

Number of shares

 

 

Liquidation preference

 

 

Issuance discount

 

 

Carrying value

 

 

2024

 

 

2023

 

 

2022

 

 

 

(in thousands, except dividends per share)

 

A

 

8.125% Issued March 2017

 

 

4,600

 

 

$

115,000

 

 

$

3,828

 

 

$

111,172

 

 

$

2.03

 

 

$

2.03

 

 

$

2.03

 

B

 

8.00% Issued July 2017

 

 

7,800

 

 

 

195,000

 

 

 

6,465

 

 

 

188,535

 

 

$

2.00

 

 

$

2.00

 

 

$

2.00

 

C

 

6.75% Issued August 2021

 

 

10,000

 

 

 

250,000

 

 

 

8,225

 

 

 

241,775

 

 

$

1.68

 

 

$

1.68

 

 

$

1.68

 

 

 

 

 

22,400

 

 

$

560,000

 

 

$

18,518

 

 

$

541,482

 

 

 

 

 

 

 

 

 

 

 

(1)
Par value is $0.01 per share.
Summary of Common Share Repurchase Activity

The following table summarizes the Company’s Common Share repurchase activity:

 

 

 

Year ended December 31,

 

 

Cumulative

 

 

 

2024

 

 

2023

 

 

2022

 

 

total (1)

 

 

(in thousands)

 

Common Shares repurchased

 

 

—

 

 

 

2,411

 

 

 

6,094

 

 

 

29,102

 

Cost of Common Shares repurchased (2)

 

$

—

 

 

$

28,490

 

 

$

87,992

 

 

$

427,229

 

 

(1)
Amounts represent the Common Share repurchase program total from its inception in August 2015 through December 31, 2024.
(2)
Cumulative total cost of Common Shares repurchased includes $582,000 of transaction fees.
v3.25.0.1
Net Gains on Loans Acquired for Sale (Tables)
 12 Months Ended
Dec. 31, 2024
Text Block [Abstract]  
Schedule of Net Gains on Loans Acquired for Sale

Net gains on loans acquired for sale are summarized below:

 

 

 

Year ended December 31,

 

 

 

2024

 

 

2023

 

 

2022

 

 

(in thousands)

 

From nonaffiliates:

 

 

 

 

 

 

 

 

 

Cash losses:

 

 

 

 

 

 

 

 

 

Sales of loans

 

$

(198,613

)

 

$

(278,128

)

 

$

(1,196,384

)

Hedging activities

 

 

(45,445

)

 

 

62,081

 

 

 

596,295

 

 

 

(244,058

)

 

 

(216,047

)

 

 

(600,089

)

Non-cash gains:

 

 

 

 

 

 

 

 

 

Receipt of MSRs in mortgage loan sale transactions

 

 

219,001

 

 

 

292,527

 

 

 

670,343

 

Provision for losses relating to representations
   and warranties provided in loan sales:

 

 

 

 

 

 

 

 

 

Pursuant to loans sales

 

 

(1,246

)

 

 

(2,449

)

 

 

(4,442

)

Reduction of liability due to change in estimate

 

 

20,269

 

 

 

15,228

 

 

 

4,227

 

 

 

19,023

 

 

 

12,779

 

 

 

(215

)

Changes in fair value of loans and derivatives

 

 

 

 

 

 

 

 

 

Interest rate lock commitments

 

 

(7,089

)

 

 

8,010

 

 

 

(2,928

)

Loans

 

 

12,837

 

 

 

(7,129

)

 

 

(4,057

)

Hedging derivatives

 

 

65,341

 

 

 

(57,445

)

 

 

(42,330

)

 

 

71,089

 

 

 

(56,564

)

 

 

(49,315

)

 

 

309,113

 

 

 

248,742

 

 

 

620,813

 

Total from nonaffiliates

 

 

65,055

 

 

 

32,695

 

 

 

20,724

 

From PFSI ‒ cash gains

 

 

8,069

 

 

 

7,162

 

 

 

4,968

 

 

$

73,124

 

 

$

39,857

 

 

$

25,692

 
v3.25.0.1
Net Gains (Losses) on Investments and Financings (Tables)
 12 Months Ended
Dec. 31, 2024
Investments, Debt and Equity Securities [Abstract]  
Summary of Net Gains (Losses) on Investments and Financings

Net gains (losses) on investments and financings are summarized below:

 

 

 

Year ended December 31,

 

 

 

2024

 

 

2023

 

 

2022

 

 

 

(in thousands)

 

Mortgage-backed securities

 

$

(80,838

)

 

$

74,984

 

 

$

(576,758

)

Loans at fair value

 

 

15,516

 

 

 

17,439

 

 

 

(300,478

)

CRT arrangements

 

 

113,670

 

 

 

182,555

 

 

 

(65,137

)

Asset-backed financings

 

 

(7,396

)

 

 

(13,678

)

 

 

283,586

 

Hedging derivatives

 

 

20,098

 

 

 

(83,201

)

 

 

—

 

 

$

61,050

 

 

$

178,099

 

 

$

(658,787

)
v3.25.0.1
Net Interest Expense (Tables)
 12 Months Ended
Dec. 31, 2024
Banking and Thrift, Interest [Abstract]  
Summary of Net Interest Expense

Net interest expense is summarized below:

 

 

 

Year ended December 31,

 

 

 

2024

 

 

2023

 

 

2022

 

 

(in thousands)

 

Interest income:

 

 

 

 

 

 

 

 

 

Cash and short-term investments

 

$

29,323

 

 

$

25,046

 

 

$

6,912

 

Mortgage-backed securities

 

 

237,758

 

 

 

248,713

 

 

 

133,640

 

Loans acquired for sale at fair value

 

 

83,326

 

 

 

93,988

 

 

 

103,300

 

Loans at fair value

 

 

58,715

 

 

 

56,874

 

 

 

59,482

 

Deposits securing CRT arrangements

 

 

59,304

 

 

 

62,713

 

 

 

21,324

 

Placement fees relating to custodial funds

 

 

163,891

 

 

 

149,484

 

 

 

57,961

 

Other

 

 

2,946

 

 

 

3,089

 

 

 

1,175

 

 

 

635,263

 

 

 

639,907

 

 

 

383,794

 

Interest expense:

 

 

 

 

 

 

 

 

 

Assets sold under agreements to repurchase

 

 

331,800

 

 

 

378,367

 

 

 

165,436

 

Mortgage loan participation purchase and sale agreements

 

 

1,292

 

 

 

1,365

 

 

 

1,023

 

Notes payable secured by credit risk transfer and
   mortgage servicing assets

 

 

261,008

 

 

 

257,601

 

 

 

137,021

 

Unsecured senior notes

 

 

48,000

 

 

 

34,969

 

 

 

33,368

 

Asset-backed financings at fair value

 

 

55,763

 

 

 

49,988

 

 

 

53,570

 

Interest shortfall on repayments of loans serviced
   for Agency securitizations

 

 

7,144

 

 

 

5,477

 

 

 

15,806

 

Interest on loan impound deposits

 

 

7,099

 

 

 

6,353

 

 

 

4,196

 

Other

 

 

2,553

 

 

 

1,848

 

 

 

—

 

 

 

 

714,659

 

 

 

735,968

 

 

 

410,420

 

 

 

$

(79,396

)

 

$

(96,061

)

 

$

(26,626

)
v3.25.0.1
Share-Based Compensation (Tables)
 12 Months Ended
Dec. 31, 2024
Share-Based Payment Arrangement [Abstract]  
Summary of Share-Based Compensation Activity

The following table summarizes the Company’s share-based compensation activity:

 

Year ended December 31,

 

 

2024

 

 

2023

 

 

2022

 

 

(in thousands)

 

Grants:

 

 

 

 

 

 

 

 

Restricted share units

 

182

 

 

 

172

 

 

 

134

 

Performance share units

 

140

 

 

 

166

 

 

 

151

 

 

322

 

 

 

338

 

 

 

285

 

Grant date fair value:

 

 

 

 

 

 

 

 

Restricted share units

$

2,605

 

 

$

2,212

 

 

$

2,101

 

Performance share units

 

2,007

 

 

 

2,088

 

 

 

2,350

 

$

4,612

 

 

$

4,300

 

 

$

4,451

 

Vestings:

 

 

 

 

 

 

 

 

Restricted share units

 

164

 

 

 

140

 

 

 

79

 

Performance share units (1)

 

203

 

 

 

48

 

 

 

41

 

 

367

 

 

 

188

 

 

 

120

 

Forfeitures:

 

 

 

 

 

 

 

 

Restricted share units

 

33

 

 

 

6

 

 

 

—

 

Performance share units

 

41

 

 

 

—

 

 

 

13

 

 

74

 

 

 

6

 

 

 

13

 

Compensation expense relating to share-based grants

$

3,479

 

 

$

5,205

 

 

$

4,310

 

 

(1)
The actual number of performance-based restricted share units (“RSUs”) that vested during the year ended December 31, 2024 was 203,110 Common Shares, which is approximately 140% of the originally granted performance-based RSUs.
Summary of Restricted Share Units and Performance Share Units Expected to Vest

 

 

December 31, 2024

 

 

 

Restricted share units

 

 

Performance share units

 

Shares expected to vest:

 

 

Number of restricted shares units (in thousands)

 

 

235

 

 

 

214

 

Grant date average fair value per unit

 

$

14.17

 

 

$

14.13

 

Average remaining vesting (in months)

 

 

9

 

 

 

8

 
v3.25.0.1
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
Schedule of Tax Characterization of Distributions to Shareholders

Year ended December 31,

 

Ordinary
income

 

 

Qualified dividend income

 

 

Long term
capital gain

 

 

Return of
capital

 

 

Sec. 199A dividend

 

Common Shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2024

 

 

100

%

 

 

27

%

 

 

—

%

 

 

—

%

 

 

73

%

2023

 

 

19

%

 

 

19

%

 

 

—

%

 

 

81

%

 

 

0

%

2022

 

 

86

%

 

 

—

%

 

 

—

%

 

 

14

%

 

 

86

%

Preferred Shares (Classes A, B and C)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2024

 

 

100

%

 

 

27

%

 

 

—

%

 

 

—

%

 

 

73

%

2023

 

 

100

%

 

 

100

%

 

 

—

%

 

 

—

%

 

 

—

%

2022

 

 

100

%

 

 

—

%

 

 

—

%

 

 

—

%

 

 

100

%
Summary of Company's (Benefit from) Provision for Income Taxes

The following table details the Company’s (benefit from) provision for income taxes which relates primarily to the TRS for the years presented:

 

 

 

Year ended December 31,

 

 

 

2024

 

 

2023

 

 

2022

 

 

 

(in thousands)

 

Current expense (benefit):

 

 

 

 

 

 

 

 

 

Federal

 

$

1,051

 

 

$

6

 

 

$

(5

)

State

 

 

—

 

 

 

—

 

 

 

—

 

   Total current expense (benefit)

 

 

1,051

 

 

 

6

 

 

 

(5

)

Deferred (benefit) expense:

 

 

 

 

 

 

 

 

 

Federal

 

 

(16,898

)

 

 

32,391

 

 

 

113,894

 

State

 

 

(2,489

)

 

 

12,344

 

 

 

22,485

 

Total deferred (benefit) expense

 

 

(19,387

)

 

 

44,735

 

 

 

136,379

 

Total (benefit from) provision for income taxes

 

$

(18,336

)

 

$

44,741

 

 

$

136,374

 
Reconciliation of Company's (Benefit from) Provision for Income Taxes

The following table is a reconciliation of the Company’s (benefit from) provision for income taxes at statutory rates to the (benefit from) provision for income taxes at the Company’s effective rate for the years presented:

 

 

Year ended December 31,

 

 

2024

 

 

2023

 

 

2022

 

 

Amount

 

 

Rate

 

 

Amount

 

 

Rate

 

 

Amount

 

 

Rate

 

 

(dollars in thousands)

 

Federal income tax expense at statutory tax rate

$

29,956

 

 

 

21.0

%

 

$

51,323

 

 

 

21.0

%

 

$

13,248

 

 

 

21.0

%

Effect of non-taxable REIT (income) loss

 

(42,110

)

 

 

(29.5

)%

 

 

(18,778

)

 

 

(7.7

)%

 

 

136,465

 

 

 

216.3

%

State income taxes, net of federal benefit

 

(6,399

)

 

 

(4.6

)%

 

 

9,327

 

 

 

3.8

%

 

 

27,573

 

 

 

43.7

%

Convertible debt permanent adjustment

 

217

 

 

 

0.2

%

 

 

2,863

 

 

 

1.2

%

 

 

(6,786

)

 

 

(10.8

)%

Valuation allowance

 

—

 

 

 

—

%

 

 

—

 

 

 

(—

)%

 

 

(34,121

)

 

 

(54.0

)%

Other

 

—

 

 

 

—

%

 

 

6

 

 

 

(—

)%

 

 

(5

)

 

 

—

%

(Benefit from) provision for income taxes

$

(18,336

)

 

 

(12.9

)%

 

$

44,741

 

 

 

18.3

%

 

$

136,374

 

 

 

216.2

%

 

 
Components of (Benefit from) Provision for Deferred Income Taxes

The Company’s components of the (benefit from) provision for deferred income taxes are as follows:

 

 

Year ended December 31,

 

 

2024

 

 

2023

 

 

2022

 

 

(in thousands)

 

Mortgage servicing rights

$

(42,893

)

 

$

22,924

 

 

$

157,559

 

Net operating loss carryforward

 

16,801

 

 

 

3,199

 

 

 

4,075

 

Liability for losses under representations and warranties

 

4,760

 

 

 

3,108

 

 

 

269

 

Excess interest expense disallowance

 

2,675

 

 

 

15,114

 

 

 

9,134

 

Real estate valuation loss

 

(31

)

 

 

107

 

 

 

66

 

Other

 

(699

)

 

 

283

 

 

 

(603

)

Valuation allowance

 

—

 

 

 

—

 

 

 

(34,121

)

Total provision for (benefit from) deferred income taxes

$

(19,387

)

 

$

44,735

 

 

$

136,379

 

 
Components of Income Taxes Payable

The components of income taxes payable are as follows:

 

 

December 31, 2024

 

 

December 31, 2023

 

(in thousands)

 

Taxes currently (receivable)

$

(15,085

)

 

$

(8,330

)

Deferred income taxes payable

 

178,946

 

 

 

198,333

 

Income taxes payable

$

163,861

 

 

$

190,003

 

 
Summary of Deferred Income Tax Assets and Liabilities

The tax effects of temporary differences that gave rise to deferred income tax assets and liabilities are presented below:

 

 

December 31, 2024

 

 

December 31, 2023

 

(in thousands)

 

Deferred income tax assets:

 

 

 

 

 

Net operating loss carryforward

$

101,853

 

 

$

118,655

 

Excess interest expense disallowance

 

39,829

 

 

 

42,504

 

Liability for losses under representations and warranties

 

1,684

 

 

 

6,444

 

REO valuation loss

 

102

 

 

 

71

 

Other

 

598

 

 

 

657

 

Gross deferred tax assets

 

144,066

 

 

 

168,331

 

Valuation allowance

 

—

 

 

 

—

 

Deferred tax assets after valuation allowance

 

144,066

 

 

 

168,331

 

Deferred income tax liabilities:

 

 

 

 

 

Mortgage servicing rights

 

322,023

 

 

 

364,917

 

Other

 

989

 

 

 

1,747

 

Gross deferred tax liabilities

 

323,012

 

 

 

366,664

 

Net deferred income tax liability

$

178,946

 

 

$

198,333

 
v3.25.0.1
Earnings Per Common Share (Tables)
 12 Months Ended
Dec. 31, 2024
Earnings Per Share [Abstract]  
Summary of Basic and Diluted Earnings per Share

The following table summarizes the basic and diluted earnings per share calculations:

 

 

Year ended December 31,

 

 

2024

 

 

2023

 

 

2022

 

 

(in thousands except per share amounts)

 

Net income (loss)

$

160,984

 

 

$

199,654

 

 

$

(73,287

)

Dividends on preferred shares

 

(41,819

)

 

 

(41,819

)

 

 

(41,818

)

Effect of participating securities—share-based compensation awards

 

(417

)

 

 

(454

)

 

 

(408

)

Net income (loss) attributable to common shareholders

 

118,748

 

 

 

157,381

 

 

 

(115,513

)

Interest on Exchangeable Notes, net of income taxes

 

—

 

 

 

25,055

 

 

 

—

 

Loss attributable to participating securities

 

—

 

 

 

(44

)

 

 

—

 

Diluted net income (loss) attributable to common shareholders

$

118,748

 

 

$

182,392

 

 

$

(115,513

)

Weighted average basic shares outstanding

 

86,815

 

 

 

87,372

 

 

 

91,434

 

Dilutive securities:

 

 

 

 

 

 

 

 

Shares issuable pursuant to exchange of the Exchangeable Notes

 

—

 

 

 

24,328

 

 

 

—

 

Diluted weighted average shares outstanding

 

86,815

 

 

 

111,700

 

 

 

91,434

 

Basic earnings (loss) per share

$

1.37

 

 

$

1.80

 

 

$

(1.26

)

Diluted earnings (loss) per share

$

1.37

 

 

$

1.63

 

 

$

(1.26

)
Summary of Potentially Dilutive Shares Excluded from Computation of Diluted Earnings Per Share The following table summarizes the potentially dilutive shares excluded from the diluted earnings per share calculation:

 

 

Year ended December 31,

 

 

2024

 

 

2023

 

 

2022

 

 

(in thousands)

 

Shares issuable under share-based compensation plan

 

204

 

 

 

180

 

 

 

136

 

Shares issuable pursuant to exchange of the Exchangeable Notes

 

—

 

 

 

—

 

 

 

24,328

 
v3.25.0.1
Segments (Tables)
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Financial Highlights by Segment

Financial highlights by segment are summarized below:

 

 

 

Credit

 

 

Interest rate

 

 

 

 

 

Reportable

 

 

 

 

 

 

 

 

 

sensitive

 

 

sensitive

 

 

Correspondent

 

 

segment

 

 

 

 

 

Consolidated

 

Year ended December 31, 2024

 

strategies

 

 

strategies

 

 

production

 

 

total

 

 

Corporate

 

 

total

 

 

 

(in thousands)

 

Net investment income (1):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loan servicing fees

 

$

—

 

 

$

264,540

 

 

$

—

 

 

$

264,540

 

 

$

—

 

 

$

264,540

 

Net gains on loans acquired for sale

 

 

—

 

 

 

—

 

 

 

73,124

 

 

 

73,124

 

 

 

—

 

 

 

73,124

 

Net gains (losses) on investments and
   financings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage-backed securities

 

 

6,964

 

 

 

(67,704

)

 

 

—

 

 

 

(60,740

)

 

 

—

 

 

 

(60,740

)

Loans at fair value

 

 

3,726

 

 

 

4,394

 

 

 

—

 

 

 

8,120

 

 

 

—

 

 

 

8,120

 

CRT arrangements

 

 

113,670

 

 

 

—

 

 

 

—

 

 

 

113,670

 

 

 

—

 

 

 

113,670

 

 

 

 

124,360

 

 

 

(63,310

)

 

 

—

 

 

 

61,050

 

 

 

—

 

 

 

61,050

 

Net interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

89,635

 

 

 

450,070

 

 

 

83,129

 

 

 

622,834

 

 

 

12,429

 

 

 

635,263

 

Interest expense

 

 

89,883

 

 

 

538,995

 

 

 

81,072

 

 

 

709,950

 

 

 

4,709

 

 

 

714,659

 

 

 

(248

)

 

 

(88,925

)

 

 

2,057

 

 

 

(87,116

)

 

 

7,720

 

 

 

(79,396

)

Other

 

 

(437

)

 

 

—

 

 

 

15,313

 

 

 

14,876

 

 

 

—

 

 

 

14,876

 

 

 

123,675

 

 

 

112,305

 

 

 

90,494

 

 

 

326,474

 

 

 

7,720

 

 

 

334,194

 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earned by PennyMac Financial Services, Inc.:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loan servicing fees

 

 

79

 

 

 

83,173

 

 

 

—

 

 

 

83,252

 

 

 

—

 

 

 

83,252

 

Management fees

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

28,623

 

 

 

28,623

 

Loan fulfillment fees

 

 

 

 

 

—

 

 

 

26,291

 

 

 

26,291

 

 

 

—

 

 

 

26,291

 

Professional services

 

 

—

 

 

 

—

 

 

 

3,508

 

 

 

3,508

 

 

 

9,271

 

 

 

12,779

 

Loan collection and liquidation

 

 

376

 

 

 

6,458

 

 

 

—

 

 

 

6,834

 

 

 

—

 

 

 

6,834

 

Compensation

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

5,608

 

 

 

5,608

 

Safekeeping

 

 

—

 

 

 

4,017

 

 

 

386

 

 

 

4,403

 

 

 

—

 

 

 

4,403

 

Loan origination

 

 

—

 

 

 

—

 

 

 

3,328

 

 

 

3,328

 

 

 

—

 

 

 

3,328

 

Other (2)

 

 

108

 

 

 

3,069

 

 

 

—

 

 

 

3,177

 

 

 

17,251

 

 

 

20,428

 

 

 

563

 

 

 

96,717

 

 

 

33,513

 

 

 

130,793

 

 

 

60,753

 

 

 

191,546

 

Pretax income

 

$

123,112

 

 

$

15,588

 

 

$

56,981

 

 

$

195,681

 

 

$

(53,033

)

 

$

142,648

 

Total assets at end of year

 

$

1,474,751

 

 

$

10,322,044

 

 

$

2,170,638

 

 

$

13,967,433

 

 

$

441,273

 

 

$

14,408,706

 

 

(1)
All income from external customers. The segments do not recognize intersegment income.
(2)
Other expense includes smaller balance expense categories not separately provided to the chief operating decision maker such as insurance and technology.

 

 

Credit

 

 

Interest rate

 

 

 

 

 

Reportable

 

 

 

 

 

 

 

 

 

sensitive

 

 

sensitive

 

 

Correspondent

 

 

segment

 

 

 

 

 

Consolidated

 

Year ended December 31, 2023

 

strategies

 

 

strategies

 

 

production

 

 

total

 

 

Corporate

 

 

total

 

 

 

(in thousands)

 

Net investment income (1):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loan servicing fees

 

$

—

 

 

$

288,608

 

 

$

—

 

 

$

288,608

 

 

$

—

 

 

$

288,608

 

Net gains on loans acquired for sale

 

 

—

 

 

 

—

 

 

 

39,857

 

 

 

39,857

 

 

 

—

 

 

 

39,857

 

Net gains (losses) on investments and
   financings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage-backed securities

 

 

35,625

 

 

 

(43,842

)

 

 

—

 

 

 

(8,217

)

 

 

—

 

 

 

(8,217

)

Loans at fair value

 

 

2,597

 

 

 

1,164

 

 

 

—

 

 

 

3,761

 

 

 

—

 

 

 

3,761

 

CRT arrangements

 

 

182,555

 

 

 

—

 

 

 

—

 

 

 

182,555

 

 

 

—

 

 

 

182,555

 

 

 

 

220,777

 

 

 

(42,678

)

 

 

—

 

 

 

178,099

 

 

 

—

 

 

 

178,099

 

Net interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

98,996

 

 

 

436,021

 

 

 

93,733

 

 

 

628,750

 

 

 

11,157

 

 

 

639,907

 

Interest expense

 

 

86,963

 

 

 

549,010

 

 

 

96,054

 

 

 

732,027

 

 

 

3,941

 

 

 

735,968

 

 

 

12,033

 

 

 

(112,989

)

 

 

(2,321

)

 

 

(103,277

)

 

 

7,216

 

 

 

(96,061

)

Other

 

 

(186

)

 

 

—

 

 

 

18,703

 

 

 

18,517

 

 

 

—

 

 

 

18,517

 

 

 

232,624

 

 

 

132,941

 

 

 

56,239

 

 

 

421,804

 

 

 

7,216

 

 

 

429,020

 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earned by PennyMac Financial Services, Inc.:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loan servicing fees

 

 

166

 

 

 

81,180

 

 

 

—

 

 

 

81,346

 

 

 

—

 

 

 

81,346

 

Management fees

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

28,762

 

 

 

28,762

 

Loan fulfillment fees

 

 

—

 

 

 

—

 

 

 

27,827

 

 

 

27,827

 

 

 

—

 

 

 

27,827

 

Professional services

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

7,621

 

 

 

7,621

 

Loan collection and liquidation

 

 

1,743

 

 

 

2,819

 

 

 

—

 

 

 

4,562

 

 

 

—

 

 

 

4,562

 

Compensation

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

7,106

 

 

 

7,106

 

Safekeeping

 

 

—

 

 

 

3,240

 

 

 

526

 

 

 

3,766

 

 

 

—

 

 

 

3,766

 

Loan origination

 

 

—

 

 

 

—

 

 

 

4,601

 

 

 

4,601

 

 

 

1

 

 

 

4,602

 

Other (2)

 

 

411

 

 

 

1,109

 

 

 

—

 

 

 

1,520

 

 

 

17,513

 

 

 

19,033

 

 

 

2,320

 

 

 

88,348

 

 

 

32,954

 

 

 

123,622

 

 

 

61,003

 

 

 

184,625

 

Pretax income

 

$

230,304

 

 

$

44,593

 

 

$

23,285

 

 

$

298,182

 

 

$

(53,787

)

 

$

244,395

 

Total assets at end of year

 

$

1,632,431

 

 

$

10,281,904

 

 

$

788,771

 

 

$

12,703,106

 

 

$

410,781

 

 

$

13,113,887

 

 

(1)
All income from external customers. The segments do not recognize intersegment income.
(2)
Other expense includes smaller balance expense categories not separately provided to the chief operating decision maker such as insurance and technology.

 

 

Credit

 

 

Interest rate

 

 

 

 

 

Reportable

 

 

 

 

 

 

 

 

 

sensitive

 

 

sensitive

 

 

Correspondent

 

 

segment

 

 

 

 

 

Consolidated

 

Year ended December 31, 2022

 

strategies

 

 

strategies

 

 

production

 

 

total

 

 

Corporate

 

 

total

 

 

 

(in thousands)

 

Net investment income (1):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loan servicing fees

 

$

—

 

 

$

909,551

 

 

$

—

 

 

$

909,551

 

 

$

—

 

 

$

909,551

 

Net gains on loans acquired for sale

 

 

5

 

 

 

—

 

 

 

25,687

 

 

 

25,692

 

 

 

—

 

 

 

25,692

 

Net gains (losses) on investments and
   financings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage-backed securities

 

 

(6,774

)

 

 

(569,984

)

 

 

—

 

 

 

(576,758

)

 

 

—

 

 

 

(576,758

)

Loans at fair value

 

 

(21,828

)

 

 

4,936

 

 

 

—

 

 

 

(16,892

)

 

 

—

 

 

 

(16,892

)

CRT arrangements

 

 

(65,137

)

 

 

—

 

 

 

—

 

 

 

(65,137

)

 

 

—

 

 

 

(65,137

)

 

 

 

(93,739

)

 

 

(565,048

)

 

 

—

 

 

 

(658,787

)

 

 

—

 

 

 

(658,787

)

Net interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

38,810

 

 

 

238,527

 

 

 

103,065

 

 

 

380,402

 

 

 

3,392

 

 

 

383,794

 

Interest expense

 

 

52,385

 

 

 

285,304

 

 

 

70,531

 

 

 

408,220

 

 

 

2,200

 

 

 

410,420

 

 

 

(13,575

)

 

 

(46,777

)

 

 

32,534

 

 

 

(27,818

)

 

 

1,192

 

 

 

(26,626

)

Other

 

 

537

 

 

 

—

 

 

 

52,857

 

 

 

53,394

 

 

 

547

 

 

 

53,941

 

 

 

(106,772

)

 

 

297,726

 

 

 

111,078

 

 

 

302,032

 

 

 

1,739

 

 

 

303,771

 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earned by PennyMac Financial Services, Inc.:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loan servicing fees

 

 

219

 

 

 

81,696

 

 

 

—

 

 

 

81,915

 

 

 

—

 

 

 

81,915

 

Management fees

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

31,065

 

 

 

31,065

 

Loan fulfillment fees

 

 

—

 

 

 

—

 

 

 

67,991

 

 

 

67,991

 

 

 

—

 

 

 

67,991

 

Professional services

 

 

—

 

 

 

—

 

 

 

1,987

 

 

 

1,987

 

 

 

7,582

 

 

 

9,569

 

Loan collection and liquidation

 

 

3,863

 

 

 

1,533

 

 

 

—

 

 

 

5,396

 

 

 

—

 

 

 

5,396

 

Compensation

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

5,941

 

 

 

5,941

 

Safekeeping

 

 

—

 

 

 

6,695

 

 

 

1,506

 

 

 

8,201

 

 

 

—

 

 

 

8,201

 

Loan origination

 

 

—

 

 

 

—

 

 

 

12,036

 

 

 

12,036

 

 

 

—

 

 

 

12,036

 

Other (2)

 

 

1,712

 

 

 

—

 

 

 

1

 

 

 

1,713

 

 

 

16,857

 

 

 

18,570

 

 

 

5,794

 

 

 

89,924

 

 

 

83,521

 

 

 

179,239

 

 

 

61,445

 

 

 

240,684

 

Pretax income

 

$

(112,566

)

 

$

207,802

 

 

$

27,557

 

 

$

122,793

 

 

$

(59,706

)

 

$

63,087

 

Total assets at end of year

 

$

1,614,977

 

 

$

9,991,621

 

 

$

1,936,797

 

 

$

13,543,395

 

 

$

378,169

 

 

$

13,921,564

 

 

(1)
All income from external customers. The segments do not recognize intersegment income.
(2)
Other expense includes smaller balance expense categories not separately provided to the chief operating decision maker such as insurance and technology.
v3.25.0.1
Regulatory Capital and Liquidity Requirements (Tables)
 12 Months Ended
Dec. 31, 2024
Mortgage Banking [Abstract]  
Summary of Capital and Liquidity Amounts and Requirements by Agencies

The Agencies’ capital and liquidity amounts and requirements are summarized below:

 

 

Net worth (1)

 

 

Tangible net worth /
total assets ratio (1)

 

 

Liquidity (1)

 

December 31,

 

Actual

 

 

Required

 

 

Actual

 

 

Required

 

 

Actual

 

 

Required

 

 

 

(dollars in thousands)

 

2024

 

$

876,324

 

 

$

579,383

 

 

 

12

%

 

 

6

%

 

$

564,311

 

 

$

215,801

 

2023

 

$

874,628

 

 

$

584,131

 

 

 

15

%

 

 

6

%

 

$

450,210

 

 

$

210,691

 

 

(1)
Calculated in accordance with the Agencies’ requirements.
v3.25.0.1
Parent Company Information (Tables)
 12 Months Ended
Dec. 31, 2024
Condensed Financial Information Disclosure [Abstract]  
Schedule of Financial Covenants that Include Minimum Tangible Net Worth

The Company’s debt financing agreements require PMT and certain of its subsidiaries to comply with financial covenants that include a minimum tangible net worth as summarized below:

 

 

 

December 31, 2024

 

Company consolidated

 

Debt covenant
requirement

 

 

Actual
balance (1)

 

 

 

(in thousands)

 

PennyMac Mortgage Investment Trust

 

$

1,250,000

 

 

$

1,937,098

 

PennyMac Operating Partnership, L.P.

 

$

1,250,000

 

 

$

2,033,289

 

PennyMac Holdings, LLC

 

$

250,000

 

 

$

923,023

 

PennyMac Corp.

 

$

300,000

 

 

$

970,410

 

 

(1)
Calculated in accordance with the lenders’ requirements.
Schedule of Parent Company Information

PENNYMAC MORTGAGE INVESTMENT TRUST

CONDENSED BALANCE SHEETS

 

Following are condensed parent-only financial statements for the Company:

 

 

 

December 31,

 

 

 

2024

 

 

2023

 

 

 

(in thousands)

 

Assets

 

 

 

 

 

 

Cash

 

$

845

 

 

$

—

 

Short-term investment

 

 

—

 

 

 

603

 

Investments in subsidiaries

 

 

2,265,779

 

 

 

2,257,831

 

Due from subsidiaries

 

 

608

 

 

 

169

 

Due from affiliates

 

 

—

 

 

 

55

 

Other assets

 

 

844

 

 

 

846

 

Total assets

 

$

2,268,076

 

 

$

2,259,504

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

Dividends payable

 

$

34,838

 

 

$

34,750

 

Capital notes due to subsidiaries

 

 

228,280

 

 

 

203,130

 

Unsecured senior notes

 

 

51,538

 

 

 

51,115

 

Accounts payable and accrued liabilities

 

 

—

 

 

 

19

 

Due to affiliates

 

 

503

 

 

 

—

 

Due to subsidiaries

 

 

3,582

 

 

 

1,777

 

Total liabilities

 

 

318,741

 

 

 

290,791

 

Shareholders' Equity

 

 

1,949,335

 

 

 

1,968,713

 

Total liabilities and shareholders' equity

 

$

2,268,076

 

 

$

2,259,504

 

 

PENNYMAC MORTGAGE INVESTMENT TRUST

CONDENSED STATEMENTS OF OPERATIONS

 

 

 

Year ended December 31,

 

 

 

2024

 

 

2023

 

 

2022

 

 

 

(in thousands)

 

Income

 

 

 

 

 

 

 

 

 

Dividends from subsidiaries

 

$

180,695

 

 

$

182,043

 

 

$

214,885

 

Interest income

 

 

 

 

 

 

 

 

 

from nonaffiliates

 

 

64

 

 

 

—

 

 

 

—

 

from affiliates

 

 

99

 

 

 

54

 

 

 

8

 

Total income

 

 

180,858

 

 

 

182,097

 

 

 

214,893

 

Expenses

 

 

 

 

 

 

 

 

 

Interest expense:

 

 

 

 

 

 

 

 

 

To nonaffiliates

 

 

5,018

 

 

 

1,355

 

 

 

—

 

To affiliates

 

 

20,908

 

 

 

22,829

 

 

 

14,244

 

Other

 

 

2

 

 

 

13

 

 

 

71

 

Total expenses

 

 

25,928

 

 

 

24,197

 

 

 

14,315

 

Income before provision for (benefit from) income taxes and
   distribution in excess of earnings

 

 

154,930

 

 

 

157,900

 

 

 

200,578

 

Provision for (benefit from) income taxes

 

 

—

 

 

 

6

 

 

 

(5

)

Income before equity in undistributed earnings of subsidiaries

 

 

154,930

 

 

 

157,894

 

 

 

200,583

 

Increase in undistributed earnings of subsidiaries
   (distributions in excess of earnings of subsidiaries)

 

 

5,266

 

 

 

32,591

 

 

 

(251,409

)

Net income (loss)

 

$

160,196

 

 

$

190,485

 

 

$

(50,826

)

 

PENNYMAC MORTGAGE INVESTMENT TRUST

CONDENSED STATEMENTS OF CASH FLOWS

 

 

 

Year ended December 31,

 

 

 

2024

 

 

2023

 

 

2022

 

 

 

(in thousands)

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

160,196

 

 

$

190,485

 

 

$

(50,826

)

Adjustments to reconcile net income (loss) to net cash provided by
   operating activities:

 

 

 

 

 

 

 

 

 

(Equity in undistributed earnings of subsidiaries) distributions in
   excess of earnings of subsidiaries

 

 

(5,265

)

 

 

(32,591

)

 

 

251,409

 

Amortization of debt issuance costs

 

 

471

 

 

 

110

 

 

 

—

 

Decrease in due from subsidiaries

 

 

357

 

 

 

638

 

 

 

753

 

Decrease (increase) in due from affiliates

 

 

558

 

 

 

(335

)

 

 

(141

)

Decrease (increase) in other assets

 

 

2

 

 

 

58

 

 

 

(903

)

Increase in accounts payable and accrued liabilities

 

 

(19

)

 

 

(323

)

 

 

(891

)

Increase in due to affiliates

 

 

1,805

 

 

 

191

 

 

 

1,342

 

Net cash provided by operating activities

 

 

158,105

 

 

 

158,233

 

 

 

200,743

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

 

Net decrease (increase) in short-term investments

 

 

603

 

 

 

(96

)

 

 

3,035

 

Net cash provided by (used in) investing activities

 

 

603

 

 

 

(96

)

 

 

3,035

 

Cash flows from financing activities:

 

 

 

 

 

 

 

 

 

Issuance of unsecured senior notes

 

 

—

 

 

 

53,500

 

 

 

—

 

Payment of debt issuance costs

 

 

(48

)

 

 

(2,495

)

 

 

—

 

Net increase in intercompany unsecured note payable

 

 

25,150

 

 

 

2,350

 

 

 

100,101

 

Payment of withholding taxes related to share-based compensation

 

 

(1,846

)

 

 

(567

)

 

 

(522

)

Payment of dividends to preferred shareholders

 

 

(41,819

)

 

 

(41,818

)

 

 

(41,819

)

Payment of dividends to common shareholders

 

 

(139,300

)

 

 

(140,617

)

 

 

(173,546

)

Repurchase of Common Shares

 

 

—

 

 

 

(28,490

)

 

 

(87,992

)

Net cash (used in) financing activities

 

 

(157,863

)

 

 

(158,137

)

 

 

(203,778

)

Net change in cash

 

 

845

 

 

 

—

 

 

 

—

 

Cash at beginning of year

 

 

—

 

 

 

—

 

 

 

—

 

Cash at end of year

 

$

845

 

 

$

—

 

 

$

—

 

 

 

 

 

 

 

 

 

 

Non-cash investing activities:

 

 

 

 

 

 

 

 

 

Investment in subsidiary pursuant to share based compensation plan

 

$

3,476

 

 

$

5,204

 

 

$

4,309

 

Non-cash financing activities:

 

 

 

 

 

 

 

 

 

Contribution of equity to subsidiary pursuant to share based compensation plan

 

$

3,476

 

 

$

5,204

 

 

$

4,309

 

Dividends payable

 

$

34,838

 

 

$

34,750

 

 

$

35,658

 
v3.25.0.1
Organization - Additional Information (Detail)
 12 Months Ended
Dec. 31, 2024
Segment
Accounting Policies [Abstract]  
Number of operating segments 3
Number of reportable segments 3
Percentage of taxable income for distributions 90.00%
v3.25.0.1
Significant Accounting Policies - Additional Information (Detail)
 12 Months Ended
Dec. 31, 2024
New Accounting Pronouncements or Change in Accounting Principle [Line Items]  
Loan delinquent period 90 days
Income tax positions likely to be recognized 50.00%
Accounting Standards Update 2023-09 [Member]  
New Accounting Pronouncements or Change in Accounting Principle [Line Items]  
Threshold percentage of reconciling items 5.00%
Threshold percentage of payments to individual jurisdictions of total income tax payments 5.00%
v3.25.0.1
Transactions with Related Parties - Prime Servicing - Additional Information (Detail) - PennyMac Loan Services, LLC [Member]
 12 Months Ended
Dec. 31, 2024
USD ($)
Subserviced loan [Member] | Fixed-Rate Mortgage Loans [Member]  
Mortgage Loans On Real Estate [Line Items]  
Base servicing fees per month $ 7.5
Subserviced loan [Member] | Adjustable rate mortgage loans [Member]  
Mortgage Loans On Real Estate [Line Items]  
Base servicing fees per month 8.5
Prime Mortgage Loans [Member]  
Mortgage Loans On Real Estate [Line Items]  
Base servicing fees for REO per month 75
Prime Mortgage Loans [Member] | Minimum [Member]  
Mortgage Loans On Real Estate [Line Items]  
Additional servicing fees per loan per month 10
Prime Mortgage Loans [Member] | Maximum [Member]  
Mortgage Loans On Real Estate [Line Items]  
Additional servicing fees per loan per month $ 55
v3.25.0.1
Transactions with Related Parties - Special Servicing - Additional Information (Detail) - PennyMac Loan Services, LLC [Member] - USD ($)
 1 Months Ended 12 Months Ended
Dec. 31, 2024
Dec. 31, 2024
Mortgage Loans On Real Estate [Line Items]    
Service agreement maturity renewal term   18 months
Services agreement modified and extended date Dec. 31, 2029  
Minimum [Member]    
Mortgage Loans On Real Estate [Line Items]    
Increasing servicing fee rates per month $ 18  
Maximum [Member]    
Mortgage Loans On Real Estate [Line Items]    
Increasing servicing fee rates per month $ 80  
Distressed loans [Member]    
Mortgage Loans On Real Estate [Line Items]    
Base servicing fees for REO per month   $ 75
Supplemental servicing fee   25
Distressed loans [Member] | Minimum [Member]    
Mortgage Loans On Real Estate [Line Items]    
Base servicing fees per month   30
Distressed loans [Member] | Maximum [Member]    
Mortgage Loans On Real Estate [Line Items]    
Base servicing fees per month   $ 95
v3.25.0.1
Transactions with Related Parties - MSR Recapture Agreement - Additional Information (Detail) - 2020 MSR Recapture Agreement [Member]
 12 Months Ended
Dec. 31, 2024
USD ($)
Mortgage Loans On Real Estate [Line Items]  
Service agreement maturity renewal term 18 months
Mortgage loans on real estate, renewed and Extended, description 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%.
Recapture rate 15.00%
Recapture agreement renewed and amended adjusted recapture fee description 70% of the fair market value of the MSRs relating to the recaptured loans subject to the first 30% of the “recapture rate”;•50% of the fair market value of the MSRs relating to the recaptured loans subject to the “recapture rate” in excess of 30% and up to 50%;•40% of the fair market value of the MSRs relating to the recaptured loans subject to the “recapture rate” in excess of 50%; and•a recapture fee of $900 per loan if PLS originates a mortgage loan for the purpose of purchasing a property where the customer has or had a mortgage loan for which PMT holds or held the MSR.
MSR recapture fees $ 900
Services agreement renewed and amended adjusted expiration date Dec. 31, 2029
v3.25.0.1
Transactions with Related Parties - Summary of Loan Servicing Fees Earned and Mortgage Servicing Rights Recaptured Income Earned (Detail) - PennyMac Loan Services, LLC [Member] - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Related Party Transaction [Line Items]      
Loan servicing fees $ 83,252 $ 81,347 $ 81,915
Average MSR portfolio unpaid principal balance 228,705,758 231,203,032 222,847,593
MSR recapture fees 2,193 1,784 13,744
UPB of loans recaptured 353,710 315,412 2,533,115
Loans acquired for sale [Member]      
Related Party Transaction [Line Items]      
Loan servicing fees 525 680 1,018
Average investment in loans acquired for sale at fair value 1,249,423 1,439,373 1,938,470
Loans at fair value [Member]      
Related Party Transaction [Line Items]      
Loan servicing fees 591 208 529
Loans at fair value 1,468,687 1,451,632 1,615,982
Mortgage servicing rights [Member]      
Related Party Transaction [Line Items]      
Loan servicing fees $ 82,136 $ 80,459 $ 80,368
v3.25.0.1
Transactions with Related Parties - Mortgage Banking Servicing Agreement - Additional Information (Detail)
 12 Months Ended
Dec. 31, 2024
USD ($)
2020 MBS Agreement [Member] | Fannie Mae Or Freddie Mac Mortgage Loans [Member]  
Mortgage Loans On Real Estate [Line Items]  
Number of mortgage loans purchased multiplier $ 750
2020 MBS Agreement [Member] | Maximum [Member]  
Mortgage Loans On Real Estate [Line Items]  
Mortgage loans commitments multiplier 585
Mortgage adjusted loan commitments 16,500
Number of mortgage loans purchased multiplier 315
Number of mortgage loans purchased 16,500
2020 MBS Agreement [Member] | Minimum [Member]  
Mortgage Loans On Real Estate [Line Items]  
Mortgage loans commitments multiplier 355
Mortgage adjusted loan commitments 16,500
Number of mortgage loans purchased multiplier 195
Number of mortgage loans purchased $ 16,500
2020 MBS Agreement Renewed and Amended [Member]  
Mortgage Loans On Real Estate [Line Items]  
Percentage of right to purchase non-government insured or guaranteed loans 100.00%
Servicing agreement expiration date Dec. 31, 2029
Service agreement maturity renewal term 18 months
2020 MBS Agreement Renewed and Amended [Member] | Fannie Mae Or Freddie Mac Mortgage Loans [Member]  
Mortgage Loans On Real Estate [Line Items]  
Number of mortgage loans purchased multiplier $ 500
2020 MBS Agreement Renewed and Amended [Member] | Ginnie Mae Mortgage Loans [Member]  
Mortgage Loans On Real Estate [Line Items]  
Mortgage loan servicing fees payable 0
2020 MBS Agreement Renewed and Amended [Member] | Maximum [Member]  
Mortgage Loans On Real Estate [Line Items]  
Mortgage loans commitments multiplier 585
Mortgage adjusted loan commitments 16,500
Number of mortgage loans purchased multiplier 315
Number of mortgage loans purchased $ 16,500
Interest income and sourcing fee 2.00%
2020 MBS Agreement Renewed and Amended [Member] | Minimum [Member]  
Mortgage Loans On Real Estate [Line Items]  
Mortgage loans commitments multiplier $ 355
Mortgage adjusted loan commitments 16,500
Number of mortgage loans purchased multiplier 195
Number of mortgage loans purchased $ 16,500
Interest income and sourcing fee 1.00%
v3.25.0.1
Transactions with Related Parties - Summary of Correspondent Production Activity and Other Loan Purchases (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Related Party Transaction [Line Items]      
Loan, Mortgage, Held-for-Sale, Fair Value Disclosure $ 2,116,318 $ 669,018  
PennyMac Loan Services, LLC [Member]      
Related Party Transaction [Line Items]      
Loan fulfillment fees earned by PLS 26,291 27,826 $ 67,991
UPB of loans fulfilled by PLS 13,446,484 14,898,301 37,090,031
Sourcing fees received from PLS included in Net gains on loans acquired for sale 8,069 7,162 4,968
UPB of loans sold to PLS 80,694,536 71,618,697 49,680,267
Purchases of loans acquired for sale from PLS 662,952 0 298,862
Tax service fees paid to PLS 2,523 3,216 8,418
Loan, Mortgage, Held-for-Sale, Fair Value Disclosure 602,108 168,303  
PennyMac Loan Services, LLC [Member] | Government Guaranteed Or Insured [Member]      
Related Party Transaction [Line Items]      
UPB of loans sold to PLS 40,838,480 40,476,782 45,768,110
PennyMac Loan Services, LLC [Member] | Conventional Conforming [Member]      
Related Party Transaction [Line Items]      
UPB of loans sold to PLS $ 39,856,056 $ 31,141,915 $ 3,912,157
v3.25.0.1
Transactions with Related Parties - Management Agreement - Additional Information (Detail) - USD ($)
 1 Months Ended 12 Months Ended
Dec. 31, 2024
Dec. 31, 2024
Dec. 31, 2023
Mortgage Loans On Real Estate [Line Items]      
MBS yield, average number of year   30 years  
Investment, Type [Extensible Enumeration] Federal National Mortgage Association Certificates and Obligations (FNMA) [Member] Federal National Mortgage Association Certificates and Obligations (FNMA) [Member]  
Termination fees, description   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 PCM, in each case during the 24-month period before termination of the management agreement.  
Management agreement renewed and amended description In December 2024, the Management Agreement was renewed and amended effective January 1, 2025, to change the incentive fee from a quarterly fee to an annual fee and limit the calculation of the high watermark to the two-year period preceding the fiscal year for which the incentive fee is calculated. In addition, the highwater mark shall never be less than zero after including all high watermark increases and high watermark decreases over any such rolling two fiscal year period. The Management Agreement expires on December 31, 2029, subject to automatic renewal for an additional 18-month period unless terminated in accordance with the terms of the agreement.    
Management agreement renewed measurement period 2 years    
Management agreement expiration date Dec. 31, 2029    
PNMAC Capital Management LLC [Member]      
Mortgage Loans On Real Estate [Line Items]      
Percentage of change in net income due to quarterly adjustments   8.00%  
PMT agreed to reimburse PCM for a payment $ 165,000 $ 165,000  
PNMAC Capital Management LLC [Member] | 1.5% per annum of stockholders equity [Member]      
Mortgage Loans On Real Estate [Line Items]      
Base management fee annual rate   1.50%  
PNMAC Capital Management LLC [Member] | 1.375% per annum of stockholders equity [Member]      
Mortgage Loans On Real Estate [Line Items]      
Base management fee annual rate   1.375%  
PNMAC Capital Management LLC [Member] | 1.25% per annum of stockholders equity [Member]      
Mortgage Loans On Real Estate [Line Items]      
Base management fee annual rate   1.25%  
PNMAC Capital Management LLC [Member] | Net income exceeds 10% [Member]      
Mortgage Loans On Real Estate [Line Items]      
Percentage of net income for calculation of performance incentive fees   10.00%  
Percentage of return on equity 12.00% 12.00%  
PNMAC Capital Management LLC [Member] | Net income exceeds 15% [Member]      
Mortgage Loans On Real Estate [Line Items]      
Percentage of net income for calculation of performance incentive fees   15.00%  
Percentage of return on equity 16.00% 16.00%  
PNMAC Capital Management LLC [Member] | Net income exceeds 20% [Member]      
Mortgage Loans On Real Estate [Line Items]      
Percentage of net income for calculation of performance incentive fees   20.00%  
PNMAC Capital Management LLC [Member] | Maximum [Member]      
Mortgage Loans On Real Estate [Line Items]      
Percentage of performance incentive fee paid in Company's common shares   50.00%  
PNMAC Capital Management LLC [Member] | Maximum [Member] | 1.5% per annum of stockholders equity [Member]      
Mortgage Loans On Real Estate [Line Items]      
Base management fee shareholders' equity limit $ 2,000,000,000 $ 2,000,000,000  
PNMAC Capital Management LLC [Member] | Maximum [Member] | 1.375% per annum of stockholders equity [Member]      
Mortgage Loans On Real Estate [Line Items]      
Base management fee shareholders' equity limit $ 5,000,000,000 $ 5,000,000,000  
PNMAC Capital Management LLC [Member] | Maximum [Member] | Net income exceeds 10% [Member]      
Mortgage Loans On Real Estate [Line Items]      
Percentage of return on equity 8.00% 8.00%  
PNMAC Capital Management LLC [Member] | Maximum [Member] | Net income exceeds 15% [Member]      
Mortgage Loans On Real Estate [Line Items]      
Percentage of return on equity 12.00% 12.00%  
PNMAC Capital Management LLC [Member] | Maximum [Member] | Net income exceeds 20% [Member]      
Mortgage Loans On Real Estate [Line Items]      
Percentage of return on equity 16.00% 16.00%  
PNMAC Capital Management LLC [Member] | Minimum [Member] | 1.375% per annum of stockholders equity [Member]      
Mortgage Loans On Real Estate [Line Items]      
Base management fee shareholders' equity limit $ 2,000,000,000 $ 2,000,000,000  
PNMAC Capital Management LLC [Member] | Minimum [Member] | 1.25% per annum of stockholders equity [Member]      
Mortgage Loans On Real Estate [Line Items]      
Base management fee shareholders' equity limit 5,000,000,000 $ 5,000,000,000  
PennyMac Financial Services, Inc. [Member]      
Mortgage Loans On Real Estate [Line Items]      
Performance incentive fee description   The performance incentive fee is equal to the sum of: •10% of the amount by which “net income” for the quarter exceeds (i) an 8% return on “equity” plus the “high watermark”, up to (ii) a 12% return on “equity”; plus •15% of the amount by which “net income” for the quarter exceeds (i) a 12% return on “equity” plus the “high watermark”, up to (ii) a 16% return on “equity”; plus •20% of the amount by which “net income” for the quarter exceeds a 16% return on “equity” plus the “high watermark.”  
PMT agreed to reimburse PCM for a payment $ 30,206,000 $ 30,206,000 $ 29,262,000
v3.25.0.1
Transactions with Related Parties - Summary of Management Fee Expense (Detail) - PNMAC Capital Management LLC [Member] - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Related Party Transaction [Line Items]      
Total management fee incurred during the period $ 28,623 $ 28,762 $ 31,065
Average shareholders' equity amounts used to calculate base management fee expense 1,908,287 1,917,642 2,079,851
Base [Member]      
Related Party Transaction [Line Items]      
Total management fee incurred during the period 28,623 28,762 31,065
Performance incentive [Member]      
Related Party Transaction [Line Items]      
Total management fee incurred during the period $ 0 $ 0 $ 0
v3.25.0.1
Transactions with Related Parties - Summary of Expenses (Detail) - PNMAC Capital Management LLC [Member] - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Related Party Transaction [Line Items]      
Expenses incurred on the Company’s behalf, net $ 20,871 $ 21,468 $ 23,829
Common overhead incurred by PCM and its affiliates 7,909 7,492 8,588
Compensation 660 660 660
Total expenses incurred in transaction with affiliates 29,440 29,620 33,077
Payments and settlements during the year [1] $ 118,167 $ 94,339 $ 144,012
[1] Payments and settlements include payments and netting settlements made pursuant to master netting agreements between the Company and PFSI for the operating, investing and financing activities itemized in this Note.
v3.25.0.1
Transactions with Related Parties - Note Payable to PLS - Additional Information (Detail) - shares
Dec. 31, 2024
Dec. 31, 2023
PennyMac Financial Services, Inc. [Member]    
Related Party Transaction [Line Items]    
Number of common shares held by affiliate 75,000 75,000
v3.25.0.1
Transactions with Related Parties - Summary of Amounts Receivable From and Payable to PFSI (Detail) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Related Party Transaction [Line Items]    
Allocated expenses and expenses and costs paid by PFSI on PMT’s behalf $ 3,508 $ 5,612
PennyMac Financial Services, Inc. [Member]    
Related Party Transaction [Line Items]    
Due from PFSI-Miscellaneous receivables 16,015 56
Correspondent production fees 11,122 8,288
Management fees 7,149 7,252
Loan servicing fees 6,822 6,809
Fulfillment fees 1,605 1,301
Total expense due to affiliate $ 30,206 $ 29,262
v3.25.0.1
Transactions with Related Parties - Summary of Transfer Cash to Fund Loan Servicing Advances (Detail) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Related Party Transaction [Line Items]    
Servicing advances $ 105,037 $ 206,151
Other assets-Real estate acquired in settlement of loans 2,464 4,541
PennyMac Loan Services, LLC [Member]    
Related Party Transaction [Line Items]    
Servicing advances 105,037 206,151
Other assets-Real estate acquired in settlement of loans 1,265 2,003
Servicing advances and real estate acquired $ 106,302 $ 208,154
v3.25.0.1
Loan Sales - Summary of Cash Flows between Company and Transferees in Transfers Accounted for Sales (Detail) - Variable Interest Entity, Not Primary Beneficiary [Member] - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Cash flows:      
Proceeds from sales $ 12,414,391 $ 15,936,124 $ 39,077,156
Loan servicing fees received $ 644,642 $ 659,438 $ 625,210
v3.25.0.1
Loan Sales - Summary of Collection Status Information for Loans Accounted for Sales (Detail) - Variable Interest Entity, Not Primary Beneficiary [Member] - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Mortgage Loans On Real Estate [Line Items]    
UPB of loans outstanding $ 222,761,227 $ 228,838,471
Collection Status (UPB)    
30-89 days delinquent 2,618,767 2,184,500
90 or more days delinquent:    
Not in foreclosure 1,078,362 1,029,962
In foreclosure 105,810 85,045
Bankruptcy 281,821 185,320
Custodial funds managed by the Company [1] $ 2,385,602 $ 1,759,974
[1] Custodial funds include borrower and investor custodial cash accounts relating to loans serviced under mortgage servicing agreements and are not included 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, and these fees are included in Interest income in the Company’s consolidated statements of operations.
v3.25.0.1
Variable Interest Entities - Additional Information (Detail) - Credit Risk Transfer Agreements [Member]
 12 Months Ended
Dec. 31, 2024
Minimum [Member]  
Mortgage Loans on Real Estate [Line Items]  
Initially established percentage of unpaid principal balance of loans sold under recourse obligation losses 3.50%
Increase to maximum percentage of outstanding unpaid principal balance 4.50%
Maximum [Member]  
Mortgage Loans on Real Estate [Line Items]  
Initially established percentage of unpaid principal balance of loans sold under recourse obligation losses 4.00%
Increase to maximum percentage of outstanding unpaid principal balance 5.00%
v3.25.0.1
Variable Interest Entities - Summary of Credit Risk Transfer Agreements (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2030
Dec. 31, 2029
Dec. 31, 2028
Dec. 31, 2027
Dec. 31, 2026
Dec. 31, 2025
CRT strips:                  
Net investment income $ 334,194 $ 429,020 $ 303,771            
Carrying value of CRT arrangements:                  
Interest-only security payable at fair value 34,222 32,667   $ 34,222 $ 0 $ 0 $ 0 $ 0 $ 0
Derivative and credit risk transfer strip assets 56,840 177,984              
Variable Interest Entities [Member]                  
Carrying value of CRT arrangements:                  
Interest-only security payable at fair value 34,222 32,667              
Variable Interest Entities [Member] | Credit Risk Transfer Agreements [Member]                  
CRT derivatives:                  
Realized 13,491 18,524 38,382            
Valuation changes 13,529 38,020 (42,220)            
Gains (losses) recognized on gross derivative related to credit risk transactions 27,020 56,544 (3,838)            
CRT strips:                  
Realized 45,573 46,252 60,389            
Valuation changes 42,632 90,501 (110,356)            
Credit risk transfer strips 88,205 136,753 (49,967)            
Interest-only security payable at fair value - valuation changes (1,555) (10,742) (11,332)            
Gains (losses) recognized on gross derivative related to credit risk transactions 113,670 182,555 (65,137)            
Interest income — Deposits securing CRT arrangements 59,304 62,713 21,324            
Net investment income 172,974 245,268 (43,813)            
Net payments made (recoveries received) to settle losses (recoveries) on CRT arrangements 1,633 3,523 $ (19,016)            
Carrying value of CRT arrangements:                  
Derivative assets - CRT derivatives 29,377 16,160              
CRT strip liabilities (4,060) (46,692)              
Deposits securing CRT arrangements 1,110,708 1,209,498              
Interest-only security payable at fair value (34,222) (32,667)              
Derivative and credit risk transfer strip assets 1,101,803 1,146,299              
Derivative assets 29,377 16,160              
Derivative and credit risk transfer strip assets pledged to secure [1] 1,110,708 1,209,498              
UPB of loans underlying CRT arrangements 21,249,304 23,152,230              
Variable Interest Entities [Member] | Credit Risk Transfer Agreements [Member] | Purchase Commitment [Member]                  
Collection status (UPB):                  
Current 20,628,148 22,531,905              
30-89 days delinquent 414,605 411,991              
90-180 days delinquent 131,191 120,011              
180 or more days delinquent 51,343 64,647              
Foreclosure 24,017 23,676              
Bankruptcy $ 63,697 $ 58,696              
[1] Deposits securing credit risk transfer strip liabilities also secure $4.1 million and $46.7 million in CRT strip liabilities at December 31, 2024 and December 31, 2023, respectively.
v3.25.0.1
Variable Interest Entities - Summary of Credit Risk Transfer Agreements (Parenthetical) (Detail) - USD ($)
$ in Millions
Dec. 31, 2024
Dec. 31, 2023
Transfer Of Financial Assets Accounted For As Sales [Line Items]    
Deposits securing CRT strips and derivatives liabilities $ 4.1 $ 46.7
v3.25.0.1
Variable Interest Entities - Summary of Investment in Subordinate MBS (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Loans at fair value $ 15,516 $ 17,439 $ (300,478)
Asset-backed financings at fair value (7,396) (13,678) 283,586
Interest income 635,263 639,907 383,794
Net investment income 334,194 429,020 303,771
Loans at fair value 2,193,575 1,433,820  
Asset-backed financings at fair value 2,040,375 1,336,731  
Variable Interest Entities [Member]      
Loans at fair value 2,191,709 1,431,689  
Asset-backed financings at fair value 2,040,375 1,336,731  
Variable Interest Entities [Member] | Subordinate Mortgage Backed Securities [Member]      
Loans at fair value 15,637 17,876 (301,164)
Asset-backed financings at fair value (7,396) (13,678) 283,586
Interest income 58,720 56,833 59,263
Interest expense 55,763 49,988 53,570
Net investment income 11,198 11,043 $ (11,885)
Loans at fair value 2,191,709 1,431,689  
Asset-backed financings at fair value 2,040,375 1,336,731  
Retained subordinate MBS at fair value pledged to secure Assets sold under agreements to repurchase $ 130,839 $ 85,344  
v3.25.0.1
Fair Value - Summary of Financial Statement Items Measured at Fair Value on Recurring Basis (Detail) - USD ($)
$ in Thousands
Dec. 31, 2030
Dec. 31, 2029
Dec. 31, 2028
Dec. 31, 2027
Dec. 31, 2026
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Assets:                    
Short-term investments             $ 103,198 $ 128,338    
Mortgage-backed securities at fair value             4,063,706 4,836,292    
Loans acquired for sale at fair value             2,116,318 669,018    
Derivative assets             96,251 89,591    
Derivative assets, Netting             (39,411) 88,393    
Total derivative assets after netting             56,840 177,984    
Mortgage servicing rights at fair value             3,867,394 3,919,107 $ 4,012,737 $ 2,892,855
Liabilities:                    
Interest-only security payable at fair value $ 34,222 $ 0 $ 0 $ 0 $ 0 $ 0 34,222 32,667    
Derivative and credit risk transfer strip liabilities:                    
Derivative liabilities             11,207 54,250    
Derivative liabilities, Netting             (7,916) (49,561)    
Total derivative liabilities after netting             3,291 4,689    
Total derivative and credit risk transfer strip liabilities             7,351 51,381    
CRT Derivatives [Member]                    
Assets:                    
Derivative assets [1]             29,377 16,160    
Total derivative assets after netting             29,377 16,160    
Derivative and credit risk transfer strip liabilities:                    
Derivative liabilities [1]             0 0    
Interest Rate Lock Commitments [Member]                    
Assets:                    
Derivative assets [1]             3,562 7,596    
Total derivative assets after netting             3,562 7,596    
Derivative and credit risk transfer strip liabilities:                    
Derivative liabilities [1]             3,118 64    
Forward Purchase Contracts [Member]                    
Assets:                    
Derivative assets [1]             614 15,905    
Derivative and credit risk transfer strip liabilities:                    
Derivative liabilities [1]             6,336 490    
Forward Sales Contracts [Member]                    
Assets:                    
Derivative assets [1]             54,056 671    
Derivative and credit risk transfer strip liabilities:                    
Derivative liabilities [1]             1,753 50,363    
Call Options on Interest Rate Futures Purchase Contracts [Member]                    
Assets:                    
Derivative assets [1]             156 41,712    
Derivative and credit risk transfer strip liabilities:                    
Derivative liabilities [1]             0 2,005    
Call Options On Interest Rate Futures Sell Contracts [Member]                    
Assets:                    
Derivative assets [1]             0 0    
Derivative and credit risk transfer strip liabilities:                    
Derivative liabilities [1]             0 1,328    
Put Options On Interest Rate Futures Purchase Contracts                    
Assets:                    
Derivative assets [1]             6,372 4,324    
Derivative and credit risk transfer strip liabilities:                    
Derivative liabilities [1]             0 0    
MBS Call Options [Member]                    
Assets:                    
Derivative assets [1]             0 3,218    
Derivative and credit risk transfer strip liabilities:                    
Derivative liabilities [1]             0 0    
MBS Put Options [Member]                    
Assets:                    
Derivative assets [1]             2,114 5    
Derivative and credit risk transfer strip liabilities:                    
Derivative liabilities [1]             0 0    
Recurring [Member]                    
Assets:                    
Short-term investments             103,198 128,338    
Mortgage-backed securities at fair value             4,063,706 4,836,292    
Loans acquired for sale at fair value             2,116,318 669,018    
Loans at fair value             2,193,575 1,433,820    
Total Assets             12,401,031 11,164,559    
Derivative assets             96,251 89,591    
Derivative assets, Netting             (39,411) 88,393    
Total derivative assets after netting             56,840 177,984    
Mortgage servicing rights at fair value             3,867,394 3,919,107    
Liabilities:                    
Asset-backed financings of the variable interest entities at fair value             2,040,375 1,336,731    
Interest-only security payable at fair value             34,222 32,667    
Derivative and credit risk transfer strip liabilities:                    
Derivative liabilities             11,207 54,250    
Derivative liabilities, Netting             (7,916) (49,561)    
Total derivative liabilities after netting             3,291 4,689    
Total derivative and credit risk transfer strip liabilities             7,351 51,381    
Total liabilities             2,081,948 1,420,779    
Recurring [Member] | Credit Risk Transfer Strips [Member]                    
Derivative and credit risk transfer strip liabilities:                    
Derivative liabilities             4,060 46,692    
Recurring [Member] | CRT Derivatives [Member]                    
Assets:                    
Derivative assets             29,377 16,160    
Recurring [Member] | Level 1 [Member]                    
Assets:                    
Short-term investments             103,198 128,338    
Mortgage-backed securities at fair value             0 0    
Loans acquired for sale at fair value             0 0    
Loans at fair value             0 0    
Total Assets             109,726 174,374    
Derivative assets             6,528 46,036    
Derivative assets, Netting             0 0    
Total derivative assets after netting             6,528 46,036    
Mortgage servicing rights at fair value             0 0    
Liabilities:                    
Asset-backed financings of the variable interest entities at fair value             0 0    
Interest-only security payable at fair value             0 0    
Derivative and credit risk transfer strip liabilities:                    
Derivative liabilities             0 3,333    
Derivative liabilities, Netting             0 0    
Total derivative liabilities after netting             0 3,333    
Total derivative and credit risk transfer strip liabilities             0 3,333    
Total liabilities             0 3,333    
Recurring [Member] | Level 1 [Member] | Credit Risk Transfer Strips [Member]                    
Derivative and credit risk transfer strip liabilities:                    
Derivative liabilities             0 0    
Recurring [Member] | Level 1 [Member] | CRT Derivatives [Member]                    
Assets:                    
Derivative assets             0 0    
Recurring [Member] | Level 2 [Member]                    
Assets:                    
Short-term investments             0 0    
Mortgage-backed securities at fair value             3,977,446 4,742,061    
Loans acquired for sale at fair value             2,108,347 662,700    
Loans at fair value             2,191,709 1,431,689    
Total Assets             8,334,286 6,856,249    
Derivative assets             56,784 19,799    
Derivative assets, Netting             0 0    
Total derivative assets after netting             56,784 19,799    
Mortgage servicing rights at fair value             0 0    
Liabilities:                    
Asset-backed financings of the variable interest entities at fair value             2,040,375 1,336,731    
Interest-only security payable at fair value             0 0    
Derivative and credit risk transfer strip liabilities:                    
Derivative liabilities             8,089 50,853    
Derivative liabilities, Netting             0 0    
Total derivative liabilities after netting             8,089 50,853    
Total derivative and credit risk transfer strip liabilities             8,089 50,853    
Total liabilities             2,048,464 1,387,584    
Recurring [Member] | Level 2 [Member] | Credit Risk Transfer Strips [Member]                    
Derivative and credit risk transfer strip liabilities:                    
Derivative liabilities             0 0    
Recurring [Member] | Level 2 [Member] | CRT Derivatives [Member]                    
Assets:                    
Derivative assets             0 0    
Recurring [Member] | Level 3 [Member]                    
Assets:                    
Short-term investments             0 0    
Mortgage-backed securities at fair value             86,260 94,231    
Loans acquired for sale at fair value             7,971 6,318    
Loans at fair value             1,866 2,131    
Total Assets             3,996,430 4,045,543    
Derivative assets             32,939 23,756    
Derivative assets, Netting             0 0    
Total derivative assets after netting             32,939 23,756    
Mortgage servicing rights at fair value             3,867,394 3,919,107    
Liabilities:                    
Asset-backed financings of the variable interest entities at fair value             0 0    
Interest-only security payable at fair value             34,222 32,667    
Derivative and credit risk transfer strip liabilities:                    
Derivative liabilities             3,118 64    
Derivative liabilities, Netting             0 0    
Total derivative liabilities after netting             3,118 64    
Total derivative and credit risk transfer strip liabilities             7,178 46,756    
Total liabilities             41,400 79,423    
Recurring [Member] | Level 3 [Member] | Credit Risk Transfer Strips [Member]                    
Derivative and credit risk transfer strip liabilities:                    
Derivative liabilities             4,060 46,692    
Recurring [Member] | Level 3 [Member] | CRT Derivatives [Member]                    
Assets:                    
Derivative assets             29,377 16,160    
Recurring [Member] | Interest Rate Lock Commitments [Member]                    
Assets:                    
Derivative assets             3,562 64    
Derivative and credit risk transfer strip liabilities:                    
Derivative liabilities             3,118 7,596    
Recurring [Member] | Interest Rate Lock Commitments [Member] | Level 1 [Member]                    
Assets:                    
Derivative assets             0 0    
Derivative and credit risk transfer strip liabilities:                    
Derivative liabilities             0 0    
Recurring [Member] | Interest Rate Lock Commitments [Member] | Level 2 [Member]                    
Assets:                    
Derivative assets             0 0    
Derivative and credit risk transfer strip liabilities:                    
Derivative liabilities             0 0    
Recurring [Member] | Interest Rate Lock Commitments [Member] | Level 3 [Member]                    
Assets:                    
Derivative assets             3,562 64    
Derivative and credit risk transfer strip liabilities:                    
Derivative liabilities             3,118 7,596    
Recurring [Member] | Forward Purchase Contracts [Member]                    
Assets:                    
Derivative assets             614 490    
Derivative and credit risk transfer strip liabilities:                    
Derivative liabilities             6,336 15,905    
Recurring [Member] | Forward Purchase Contracts [Member] | Level 1 [Member]                    
Assets:                    
Derivative assets             0 0    
Derivative and credit risk transfer strip liabilities:                    
Derivative liabilities             0 0    
Recurring [Member] | Forward Purchase Contracts [Member] | Level 2 [Member]                    
Assets:                    
Derivative assets             614 490    
Derivative and credit risk transfer strip liabilities:                    
Derivative liabilities             6,336 15,905    
Recurring [Member] | Forward Purchase Contracts [Member] | Level 3 [Member]                    
Assets:                    
Derivative assets             0 0    
Derivative and credit risk transfer strip liabilities:                    
Derivative liabilities             0 0    
Recurring [Member] | Forward Sales Contracts [Member]                    
Assets:                    
Derivative assets             54,056 671    
Derivative and credit risk transfer strip liabilities:                    
Derivative liabilities             1,753 50,363    
Recurring [Member] | Forward Sales Contracts [Member] | Level 1 [Member]                    
Assets:                    
Derivative assets             0 0    
Derivative and credit risk transfer strip liabilities:                    
Derivative liabilities             0 0    
Recurring [Member] | Forward Sales Contracts [Member] | Level 2 [Member]                    
Assets:                    
Derivative assets             54,056 671    
Derivative and credit risk transfer strip liabilities:                    
Derivative liabilities             1,753 50,363    
Recurring [Member] | Forward Sales Contracts [Member] | Level 3 [Member]                    
Assets:                    
Derivative assets             0 0    
Derivative and credit risk transfer strip liabilities:                    
Derivative liabilities             0 0    
Recurring [Member] | Call Options on Interest Rate Futures Purchase Contracts [Member]                    
Assets:                    
Derivative assets             156 41,712    
Derivative and credit risk transfer strip liabilities:                    
Derivative liabilities               2,005    
Recurring [Member] | Call Options on Interest Rate Futures Purchase Contracts [Member] | Level 1 [Member]                    
Assets:                    
Derivative assets             156 41,712    
Derivative and credit risk transfer strip liabilities:                    
Derivative liabilities               2,005    
Recurring [Member] | Call Options on Interest Rate Futures Purchase Contracts [Member] | Level 2 [Member]                    
Assets:                    
Derivative assets             0 0    
Derivative and credit risk transfer strip liabilities:                    
Derivative liabilities               0    
Recurring [Member] | Call Options on Interest Rate Futures Purchase Contracts [Member] | Level 3 [Member]                    
Assets:                    
Derivative assets             0 0    
Derivative and credit risk transfer strip liabilities:                    
Derivative liabilities               0    
Recurring [Member] | Call Options On Interest Rate Futures Sell Contracts [Member]                    
Derivative and credit risk transfer strip liabilities:                    
Derivative liabilities               1,328    
Recurring [Member] | Call Options On Interest Rate Futures Sell Contracts [Member] | Level 1 [Member]                    
Derivative and credit risk transfer strip liabilities:                    
Derivative liabilities               1,328    
Recurring [Member] | Call Options On Interest Rate Futures Sell Contracts [Member] | Level 2 [Member]                    
Derivative and credit risk transfer strip liabilities:                    
Derivative liabilities               0    
Recurring [Member] | Call Options On Interest Rate Futures Sell Contracts [Member] | Level 3 [Member]                    
Derivative and credit risk transfer strip liabilities:                    
Derivative liabilities               0    
Recurring [Member] | Put Options On Interest Rate Futures Purchase Contracts                    
Assets:                    
Derivative assets             6,372 4,324    
Recurring [Member] | Put Options On Interest Rate Futures Purchase Contracts | Level 1 [Member]                    
Assets:                    
Derivative assets             6,372 4,324    
Recurring [Member] | Put Options On Interest Rate Futures Purchase Contracts | Level 2 [Member]                    
Assets:                    
Derivative assets             0 0    
Recurring [Member] | Put Options On Interest Rate Futures Purchase Contracts | Level 3 [Member]                    
Assets:                    
Derivative assets             0 0    
Recurring [Member] | MBS Call Options [Member]                    
Derivative and credit risk transfer strip liabilities:                    
Derivative liabilities               3,218    
Recurring [Member] | MBS Call Options [Member] | Level 1 [Member]                    
Derivative and credit risk transfer strip liabilities:                    
Derivative liabilities               0    
Recurring [Member] | MBS Call Options [Member] | Level 2 [Member]                    
Derivative and credit risk transfer strip liabilities:                    
Derivative liabilities               3,218    
Recurring [Member] | MBS Call Options [Member] | Level 3 [Member]                    
Derivative and credit risk transfer strip liabilities:                    
Derivative liabilities               0    
Recurring [Member] | MBS Put Options [Member]                    
Assets:                    
Derivative assets             2,114 5    
Recurring [Member] | MBS Put Options [Member] | Level 1 [Member]                    
Assets:                    
Derivative assets             0 0    
Recurring [Member] | MBS Put Options [Member] | Level 2 [Member]                    
Assets:                    
Derivative assets             2,114 5    
Recurring [Member] | MBS Put Options [Member] | Level 3 [Member]                    
Assets:                    
Derivative assets             $ 0 $ 0    
[1] All hedging derivatives are interest rate derivatives that are used as economic hedges.
v3.25.0.1
Fair Value - Summary of Changes in Items Measured Using Level 3 Inputs on Recurring Basis (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Assets:      
Amounts received pursuant to sales of loans $ 219,001 $ 292,527 $ 670,343
Changes in fair value included in income arising from:      
Loans to REO 0 (1,205) 0
Mortgage servicing rights relating to delinquent loans to Agency $ 561 $ (472) $ 104
Liabilities:      
Fair Value, Asset, Recurring Basis, Still Held, Unrealized Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] Net Gains Losses On Investments And Financings Net Gains Losses On Investments And Financings Net Gains Losses On Investments And Financings
Interest Rate Lock Commitments [Member]      
Assets:      
Beginning balance $ 7,532    
Changes in fair value included in income arising from:      
Ending balance 444 $ 7,532  
Recurring [Member]      
Assets:      
Beginning balance 3,998,787 3,867,133 $ 2,921,723
Purchases and issuances 75,647 28,119 (73,774)
Repayments and sales (215,642) (79,794) (128,677)
Accrual of unearned discounts 9,093 2,673  
Amounts received pursuant to sales of loans 219,001 292,031 670,343
Changes in fair value included in income arising from:      
Changes in instrument-specific credit risk 0 0 0
Other factors (63,903) (97,108) 158,804
Total $ (63,903) $ (97,108) $ 158,804
Fair Value, Asset, Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] Servicing Asset at Fair Value, Period Increase (Decrease) Servicing Asset at Fair Value, Period Increase (Decrease) Servicing Asset at Fair Value, Period Increase (Decrease)
Exchange of mortgage servicing spread for interest-only stripped mortgage-backed securities $ 0 $ (1,549)  
Loans to REO   (460)  
Interest rate lock commitments to loans acquired for sale (34,292) (11,786) $ 318,610
Mortgage servicing rights relating to delinquent loans to Agency 561 (472) 104
Ending balance 3,989,252 3,998,787 3,867,133
Changes in fair value recognized during the year relating to assets (114,443) (170,351) 295,479
Recurring [Member] | CRT Derivatives [Member]      
Assets:      
Beginning balance 16,160 (22,098) 18,964
Purchases and issuances 0 0 0
Repayments and sales (13,803) (18,286) (37,224)
Accrual of unearned discounts 0 0  
Amounts received pursuant to sales of loans 0 0 0
Changes in fair value included in income arising from:      
Changes in instrument-specific credit risk 0 0 0
Other factors 27,020 56,544 (3,838)
Total 27,020 56,544 (3,838)
Exchange of mortgage servicing spread for interest-only stripped mortgage-backed securities 0 0  
Loans to REO   0  
Interest rate lock commitments to loans acquired for sale 0 0 0
Mortgage servicing rights relating to delinquent loans to Agency 0 0 0
Ending balance 29,377 16,160 (22,098)
Changes in fair value recognized during the year relating to assets 13,529 38,020 (42,220)
Recurring [Member] | Credit Risk Transfer Strips [Member]      
Assets:      
Beginning balance (46,692) (137,193) (26,837)
Purchases and issuances 0 0 0
Repayments and sales (45,573) (46,252) (60,389)
Accrual of unearned discounts 0 0  
Amounts received pursuant to sales of loans 0 0 0
Changes in fair value included in income arising from:      
Changes in instrument-specific credit risk 0 0 0
Other factors 88,205 136,753 (49,967)
Total 88,205 136,753 (49,967)
Exchange of mortgage servicing spread for interest-only stripped mortgage-backed securities 0 0  
Loans to REO   0  
Interest rate lock commitments to loans acquired for sale 0 0 0
Mortgage servicing rights relating to delinquent loans to Agency 0 0 0
Ending balance (4,060) (46,692) (137,193)
Changes in fair value recognized during the year relating to assets 42,632 90,501 (110,356)
Recurring [Member] | Loans At Fair Value [Member]      
Assets:      
Beginning balance 2,131 3,457 4,161
Purchases and issuances 0 119 0
Repayments and sales (144) (548) (1,390)
Accrual of unearned discounts 0 0  
Amounts received pursuant to sales of loans 0 0 0
Changes in fair value included in income arising from:      
Changes in instrument-specific credit risk 0 0 0
Other factors (121) (437) 686
Total (121) (437) 686
Exchange of mortgage servicing spread for interest-only stripped mortgage-backed securities 0 0  
Loans to REO   (460)  
Interest rate lock commitments to loans acquired for sale 0 0 0
Mortgage servicing rights relating to delinquent loans to Agency 0 0 0
Ending balance 1,866 2,131 3,457
Changes in fair value recognized during the year relating to assets (140) (964) 196
Recurring [Member] | Mortgage servicing rights [Member]      
Assets:      
Beginning balance 3,919,107 4,012,737 2,892,855
Purchases and issuances 29,429 16,258 0
Repayments and sales 0 0 0
Accrual of unearned discounts 0 0  
Amounts received pursuant to sales of loans 219,001 292,527 670,343
Changes in fair value included in income arising from:      
Changes in instrument-specific credit risk 0 0 0
Other factors (170,409) (296,847) 449,435
Total (170,409) (296,847) 449,435
Exchange of mortgage servicing spread for interest-only stripped mortgage-backed securities (130,295) (105,096)  
Loans to REO   0  
Interest rate lock commitments to loans acquired for sale 0 0 0
Mortgage servicing rights relating to delinquent loans to Agency 561 (472) 104
Ending balance 3,867,394 3,919,107 4,012,737
Changes in fair value recognized during the year relating to assets (173,271) (296,847) 449,435
Recurring [Member] | Interest-Only Stripped Mortgage-Backed Securities [Member]      
Assets:      
Beginning balance 94,231 0  
Purchases and issuances 0 0  
Repayments and sales (149,983) (3,417)  
Accrual of unearned discounts 9,093 2,673  
Amounts received pursuant to sales of loans 0 0  
Changes in fair value included in income arising from:      
Changes in instrument-specific credit risk 0 0  
Other factors 2,624 (8,572)  
Total 2,624 (8,572)  
Exchange of mortgage servicing spread for interest-only stripped mortgage-backed securities 130,295 103,547  
Loans to REO   0  
Interest rate lock commitments to loans acquired for sale 0 0  
Mortgage servicing rights relating to delinquent loans to Agency 0 0  
Ending balance 86,260 94,231 0
Changes in fair value recognized during the year relating to assets 2,624 (8,572)  
Recurring [Member] | Loans acquired for sale [Member]      
Assets:      
Beginning balance 6,318 10,708 30,129
Purchases and issuances 8,132 7,151 13,619
Repayments and sales (6,139) (11,291) (29,674)
Accrual of unearned discounts 0 0  
Amounts received pursuant to sales of loans 0 (496) 0
Changes in fair value included in income arising from:      
Changes in instrument-specific credit risk 0 0 0
Other factors (340) 246 (3,366)
Total (340) 246 (3,366)
Exchange of mortgage servicing spread for interest-only stripped mortgage-backed securities 0 0  
Loans to REO   0  
Interest rate lock commitments to loans acquired for sale 0 0 0
Mortgage servicing rights relating to delinquent loans to Agency 0 0 0
Ending balance 7,971 6,318 10,708
Changes in fair value recognized during the year relating to assets (261) (21) (1,098)
Recurring [Member] | Interest Rate Lock Commitments [Member]      
Assets:      
Beginning balance 7,532 (478) 2,451
Purchases and issuances 38,086 4,591 (87,393)
Repayments and sales 0 0 0
Accrual of unearned discounts 0 0  
Amounts received pursuant to sales of loans 0 0 0
Changes in fair value included in income arising from:      
Changes in instrument-specific credit risk 0 0 0
Other factors (10,882) 15,205 (234,146)
Total (10,882) 15,205 (234,146)
Exchange of mortgage servicing spread for interest-only stripped mortgage-backed securities 0 0  
Loans to REO   0  
Interest rate lock commitments to loans acquired for sale (34,292) (11,786) 318,610
Mortgage servicing rights relating to delinquent loans to Agency 0 0 0
Ending balance 444 7,532 (478)
Changes in fair value recognized during the year relating to assets 444 7,532 (478)
Recurring [Member] | Interest-only security payable [Member]      
Liabilities:      
Beginning balance 32,667 21,925 10,593
Changes in instrument-specific credit risk\Other factors 1,555 10,742 11,332
Ending balance 34,222 32,667 21,925
Changes in fair value recognized during the quarter relating to liability 1,555 10,742 11,332
Recurring [Member] | Interest-only security payable [Member] | Credit Risk [Member]      
Liabilities:      
Changes in instrument-specific credit risk\Other factors 0 0 0
Recurring [Member] | Interest-only security payable [Member] | Other Factors [Member]      
Liabilities:      
Changes in instrument-specific credit risk\Other factors $ 1,555 $ 10,742 $ 11,332
v3.25.0.1
Fair Value - Fair Values and Related Principal Amounts Due upon Maturity of Loans Accounted for Under Fair Value Option (Detail) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Loans, fair value [Abstract]    
Fair value $ 2,193,575 $ 1,433,820
Fair value, Total 2,193,575 1,433,820
Loans, principal amount due upon maturity [Abstract]    
Principal amount due upon maturity 2,419,263 1,704,184
Loans, difference, [Abstract]    
Difference (225,688) (270,364)
Loans acquired for sale at fair value [Member]    
Loans, fair value [Abstract]    
Current through 89 days delinquent 2,114,556 667,857
90 or more days delinquent, not in foreclosure 1,687 433
90 or more days delinquent, in foreclosure 75 728
Fair value, Total 2,116,318 669,018
Loans, principal amount due upon maturity [Abstract]    
Current through 89 days delinquent 2,092,030 648,283
90 or more days delinquent, not in foreclosure 2,114 617
90 or more days delinquent, in foreclosure 96 845
Principal amount due upon maturity 2,094,240 649,745
Loans, difference, [Abstract]    
Current through 89 days delinquent 22,526 19,574
90 or more days delinquent, not in foreclosure (427) (184)
90 or more days delinquent, in foreclosure (21) (117)
Difference 22,078 19,273
Loans acquired for sale at fair value [Member] | Nonperforming mortgage loans [Member]    
Loans, fair value [Abstract]    
Fair value 1,762 1,161
Loans, principal amount due upon maturity [Abstract]    
Principal amount due upon maturity 2,210 1,462
Loans, difference, [Abstract]    
Difference (448) (301)
Loans at Fair Value Held in Consolidated VIE [Member]    
Loans, fair value [Abstract]    
Current through 89 days delinquent 2,190,432 1,430,427
90 or more days delinquent, not in foreclosure 1,277 1,262
90 or more days delinquent, in foreclosure 0 0
Fair value 2,191,709 1,431,689
Loans, principal amount due upon maturity [Abstract]    
Current through 89 days delinquent 2,413,214 1,697,305
90 or more days delinquent, not in foreclosure 1,658 1,582
90 or more days delinquent, in foreclosure 0 0
Principal amount due upon maturity 2,414,872 1,698,887
Loans, difference, [Abstract]    
Current through 89 days delinquent (222,782) (266,878)
90 or more days delinquent, not in foreclosure (381) (320)
90 or more days delinquent, in foreclosure 0 0
Difference (223,163) (267,198)
Loans at Fair Value Held in Consolidated VIE [Member] | Nonperforming mortgage loans [Member]    
Loans, fair value [Abstract]    
Fair value 1,277 1,262
Loans, principal amount due upon maturity [Abstract]    
Principal amount due upon maturity 1,658 1,582
Loans, difference, [Abstract]    
Difference (381) (320)
Distressed at Fair Value [Member]    
Loans, fair value [Abstract]    
Current through 89 days delinquent 445 569
90 or more days delinquent, not in foreclosure 1,421 393
90 or more days delinquent, in foreclosure 0 1,169
Fair value 1,866 2,131
Loans, principal amount due upon maturity [Abstract]    
Current through 89 days delinquent 595 728
90 or more days delinquent, not in foreclosure 3,796 2,023
90 or more days delinquent, in foreclosure 0 2,546
Principal amount due upon maturity 4,391 5,297
Loans, difference, [Abstract]    
Current through 89 days delinquent (150) (159)
90 or more days delinquent, not in foreclosure (2,375) (1,630)
90 or more days delinquent, in foreclosure 0 (1,377)
Difference (2,525) (3,166)
Distressed at Fair Value [Member] | Nonperforming mortgage loans [Member]    
Loans, fair value [Abstract]    
Fair value 1,421 1,562
Loans, principal amount due upon maturity [Abstract]    
Principal amount due upon maturity 3,796 4,569
Loans, difference, [Abstract]    
Difference $ (2,375) $ (3,007)
v3.25.0.1
Fair Value - Summary of Changes in Fair Value Included in Current Period Results of Operations (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Credit Risk Transfer Strips at Fair Value [Member]      
Fair Value, Option, Quantitative Disclosures [Line Items]      
Changes in fair value included in current period income (expense) $ 88,205 $ 136,753 $ (49,967)
Credit Risk Transfer Strips at Fair Value [Member] | Net Loan Servicing Fees [Member]      
Fair Value, Option, Quantitative Disclosures [Line Items]      
Changes in fair value included in current period income (expense) 0 0 0
Credit Risk Transfer Strips at Fair Value [Member] | Net Gains on Loans Acquired for Sale [Member]      
Fair Value, Option, Quantitative Disclosures [Line Items]      
Changes in fair value included in current period income (expense) 0 0 0
Credit Risk Transfer Strips at Fair Value [Member] | Net Gains (Losses) on Investments and Financings [Member]      
Fair Value, Option, Quantitative Disclosures [Line Items]      
Changes in fair value included in current period income (expense) 88,205 136,753 (49,967)
Credit Risk Transfer Strips at Fair Value [Member] | Net Interest Income (Expense) [Member]      
Fair Value, Option, Quantitative Disclosures [Line Items]      
Changes in fair value included in current period income (expense) 0 0 0
Interest-only security payable [Member]      
Fair Value, Option, Quantitative Disclosures [Line Items]      
Changes in fair value included in current period income (expense) (1,555) (10,742) (11,332)
Interest-only security payable [Member] | Net Loan Servicing Fees [Member]      
Fair Value, Option, Quantitative Disclosures [Line Items]      
Changes in fair value included in current period income (expense) 0 0 0
Interest-only security payable [Member] | Net Gains on Loans Acquired for Sale [Member]      
Fair Value, Option, Quantitative Disclosures [Line Items]      
Changes in fair value included in current period income (expense) 0 0 0
Interest-only security payable [Member] | Net Gains (Losses) on Investments and Financings [Member]      
Fair Value, Option, Quantitative Disclosures [Line Items]      
Changes in fair value included in current period income (expense) (1,555) (10,742) (11,332)
Interest-only security payable [Member] | Net Interest Income (Expense) [Member]      
Fair Value, Option, Quantitative Disclosures [Line Items]      
Changes in fair value included in current period income (expense) 0 0 0
Asset-Backed Financings at Fair Value [Member]      
Fair Value, Option, Quantitative Disclosures [Line Items]      
Changes in fair value included in current period income (expense) (11,049) (14,174) 285,359
Asset-Backed Financings at Fair Value [Member] | Net Loan Servicing Fees [Member]      
Fair Value, Option, Quantitative Disclosures [Line Items]      
Changes in fair value included in current period income (expense) 0 0 0
Asset-Backed Financings at Fair Value [Member] | Net Gains on Loans Acquired for Sale [Member]      
Fair Value, Option, Quantitative Disclosures [Line Items]      
Changes in fair value included in current period income (expense) 0 0 0
Asset-Backed Financings at Fair Value [Member] | Net Gains (Losses) on Investments and Financings [Member]      
Fair Value, Option, Quantitative Disclosures [Line Items]      
Changes in fair value included in current period income (expense) (7,396) (13,678) 283,586
Asset-Backed Financings at Fair Value [Member] | Net Interest Income (Expense) [Member]      
Fair Value, Option, Quantitative Disclosures [Line Items]      
Changes in fair value included in current period income (expense) (3,653) (496) 1,773
Liabilities, Total [Member]      
Fair Value, Option, Quantitative Disclosures [Line Items]      
Changes in fair value included in current period income (expense) (12,604) (24,916) 274,027
Liabilities, Total [Member] | Net Loan Servicing Fees [Member]      
Fair Value, Option, Quantitative Disclosures [Line Items]      
Changes in fair value included in current period income (expense) 0 0 0
Liabilities, Total [Member] | Net Gains on Loans Acquired for Sale [Member]      
Fair Value, Option, Quantitative Disclosures [Line Items]      
Changes in fair value included in current period income (expense) 0 0 0
Liabilities, Total [Member] | Net Gains (Losses) on Investments and Financings [Member]      
Fair Value, Option, Quantitative Disclosures [Line Items]      
Changes in fair value included in current period income (expense) (8,951) (24,420) 272,254
Liabilities, Total [Member] | Net Interest Income (Expense) [Member]      
Fair Value, Option, Quantitative Disclosures [Line Items]      
Changes in fair value included in current period income (expense) (3,653) (496) 1,773
Mortgage-backed securities at fair value [Member]      
Fair Value, Option, Quantitative Disclosures [Line Items]      
Changes in fair value included in current period income (expense) (52,065) 76,970 (564,061)
Mortgage-backed securities at fair value [Member] | Net Loan Servicing Fees [Member]      
Fair Value, Option, Quantitative Disclosures [Line Items]      
Changes in fair value included in current period income (expense) 0 0 0
Mortgage-backed securities at fair value [Member] | Net Gains on Loans Acquired for Sale [Member]      
Fair Value, Option, Quantitative Disclosures [Line Items]      
Changes in fair value included in current period income (expense) 0 0 0
Mortgage-backed securities at fair value [Member] | Net Gains (Losses) on Investments and Financings [Member]      
Fair Value, Option, Quantitative Disclosures [Line Items]      
Changes in fair value included in current period income (expense) (80,838) 74,984 (576,758)
Mortgage-backed securities at fair value [Member] | Net Interest Income (Expense) [Member]      
Fair Value, Option, Quantitative Disclosures [Line Items]      
Changes in fair value included in current period income (expense) 28,773 1,986 12,697
Loans acquired for sale at fair value [Member]      
Fair Value, Option, Quantitative Disclosures [Line Items]      
Changes in fair value included in current period income (expense) 24,457 15,025 (539,102)
Loans acquired for sale at fair value [Member] | Net Loan Servicing Fees [Member]      
Fair Value, Option, Quantitative Disclosures [Line Items]      
Changes in fair value included in current period income (expense) 0 0 0
Loans acquired for sale at fair value [Member] | Net Gains on Loans Acquired for Sale [Member]      
Fair Value, Option, Quantitative Disclosures [Line Items]      
Changes in fair value included in current period income (expense) 24,457 15,025 (539,102)
Loans acquired for sale at fair value [Member] | Net Gains (Losses) on Investments and Financings [Member]      
Fair Value, Option, Quantitative Disclosures [Line Items]      
Changes in fair value included in current period income (expense) 0 0 0
Loans acquired for sale at fair value [Member] | Net Interest Income (Expense) [Member]      
Fair Value, Option, Quantitative Disclosures [Line Items]      
Changes in fair value included in current period income (expense) 0 0 0
At fair value [Member]      
Fair Value, Option, Quantitative Disclosures [Line Items]      
Changes in fair value included in current period income (expense) 13,708 15,312 (301,587)
At fair value [Member] | Net Loan Servicing Fees [Member]      
Fair Value, Option, Quantitative Disclosures [Line Items]      
Changes in fair value included in current period income (expense) 0 0 0
At fair value [Member] | Net Gains on Loans Acquired for Sale [Member]      
Fair Value, Option, Quantitative Disclosures [Line Items]      
Changes in fair value included in current period income (expense) 0 0 0
At fair value [Member] | Net Gains (Losses) on Investments and Financings [Member]      
Fair Value, Option, Quantitative Disclosures [Line Items]      
Changes in fair value included in current period income (expense) 15,516 17,439 (300,478)
At fair value [Member] | Net Interest Income (Expense) [Member]      
Fair Value, Option, Quantitative Disclosures [Line Items]      
Changes in fair value included in current period income (expense) (1,808) (2,127) (1,109)
MSRs at fair value [Member]      
Fair Value, Option, Quantitative Disclosures [Line Items]      
Changes in fair value included in current period income (expense) (170,409) (296,847) 449,435
MSRs at fair value [Member] | Net Loan Servicing Fees [Member]      
Fair Value, Option, Quantitative Disclosures [Line Items]      
Changes in fair value included in current period income (expense) (170,409) (296,847) 449,435
MSRs at fair value [Member] | Net Gains on Loans Acquired for Sale [Member]      
Fair Value, Option, Quantitative Disclosures [Line Items]      
Changes in fair value included in current period income (expense) 0 0 0
MSRs at fair value [Member] | Net Gains (Losses) on Investments and Financings [Member]      
Fair Value, Option, Quantitative Disclosures [Line Items]      
Changes in fair value included in current period income (expense) 0 0 0
MSRs at fair value [Member] | Net Interest Income (Expense) [Member]      
Fair Value, Option, Quantitative Disclosures [Line Items]      
Changes in fair value included in current period income (expense) 0 0 0
Assets, Total [Member]      
Fair Value, Option, Quantitative Disclosures [Line Items]      
Changes in fair value included in current period income (expense) (96,104) (52,787) (1,005,282)
Assets, Total [Member] | Net Loan Servicing Fees [Member]      
Fair Value, Option, Quantitative Disclosures [Line Items]      
Changes in fair value included in current period income (expense) (170,409) (296,847) 449,435
Assets, Total [Member] | Net Gains on Loans Acquired for Sale [Member]      
Fair Value, Option, Quantitative Disclosures [Line Items]      
Changes in fair value included in current period income (expense) 24,457 15,025 (539,102)
Assets, Total [Member] | Net Gains (Losses) on Investments and Financings [Member]      
Fair Value, Option, Quantitative Disclosures [Line Items]      
Changes in fair value included in current period income (expense) 22,883 229,176 (927,203)
Assets, Total [Member] | Net Interest Income (Expense) [Member]      
Fair Value, Option, Quantitative Disclosures [Line Items]      
Changes in fair value included in current period income (expense) $ 26,965 $ (141) $ 11,588
v3.25.0.1
Fair Value - Summary of Carrying Value of Assets Remeasured Based on Fair Value on Nonrecurring Basis (Detail) - Nonrecurring [Member] - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Real estate acquired in settlement of loans $ 753 $ 532
Level 1 [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Real estate acquired in settlement of loans 0 0
Level 2 [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Real estate acquired in settlement of loans 0 0
Level 3 [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Real estate acquired in settlement of loans $ 753 $ 532
v3.25.0.1
Fair Value - Summary of Changes in Fair Value Recognized in Assets that Remeasured at Fair Value on a Nonrecurring Basis (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Nonrecurring [Member]      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Real estate acquired in settlement of loans $ (348) $ (223) $ (505)
v3.25.0.1
Fair Value - Carrying and Fair Values of Notes Payable Secured by Credit Risk Transfer and Mortgage Servicing Rights and Exchangeable Senior Notes (Detail) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Notes Payable Secured by Credit Risk Transfer and Mortgage Servicing Assets [Member] | Carrying Value [Member]    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]    
Notes payable $ 2,929,790 $ 2,910,605
Notes Payable Secured by Credit Risk Transfer and Mortgage Servicing Assets [Member] | Fair Value [Member]    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]    
Notes payable 2,944,956 2,904,678
Unsecured Senior Notes [Member] | Carrying Value [Member]    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]    
Notes payable 605,860 600,458
Unsecured Senior Notes [Member] | Fair Value [Member]    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]    
Notes payable $ 606,185 $ 580,090
v3.25.0.1
Fair Value - Key Inputs Used in Determining Fair Value of IO (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair value $ 4,063,706 $ 4,836,292
Minimum [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair value inputs, Pricing spread 5.40% 5.50%
Fair value inputs, Prepayment speed 6.50% 6.50%
Maximum [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair value inputs, Pricing spread 8.10% 8.50%
Fair value inputs, Prepayment speed 17.70% 17.90%
Weighted Average [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair value inputs, Pricing spread 5.40% 5.50%
Fair value inputs, Prepayment speed 7.00% 6.70%
IO [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair value $ 86,260 $ 94,231
IO [Member] | Minimum [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair value inputs, Pricing spread 5.90% 5.10%
Fair value inputs, Prepayment speed 9.40% 10.90%
Fair value inputs, Equivalent life (in years) 4 years 7 months 6 days 4 years 8 months 12 days
IO [Member] | Maximum [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair value inputs, Pricing spread 6.50% 5.10%
Fair value inputs, Prepayment speed 10.20% 11.00%
Fair value inputs, Equivalent life (in years) 8 years 7 years 2 months 12 days
IO [Member] | Weighted Average [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair value inputs, Pricing spread 6.50% 5.10%
Fair value inputs, Prepayment speed 9.40% 10.90%
Fair value inputs, Equivalent life (in years) 7 years 10 months 24 days 7 years 1 month 6 days
v3.25.0.1
Fair Value - Quantitative Summary of Key Unobservable Inputs Used in Review and Approval of Broker-provided Fair Values for CRT Derivatives (Detail) - CRT Derivatives [Member] - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair value $ 29,377 $ 16,160
UPB of loans in reference pools $ 4,961,644 $ 5,437,551
Discount Rate [Member] | Minimum [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Key inputs used in fair value for CRT agreements 9.00% 9.00%
Discount Rate [Member] | Maximum [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Key inputs used in fair value for CRT agreements 11.40% 9.70%
Discount Rate [Member] | Weighted Average [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Key inputs used in fair value for CRT agreements 9.30% 9.60%
Voluntary Prepayment Speed [Member] | Minimum [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Key inputs used in fair value for CRT agreements 7.00% 6.90%
Voluntary Prepayment Speed [Member] | Maximum [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Key inputs used in fair value for CRT agreements 7.60% 7.60%
Voluntary Prepayment Speed [Member] | Weighted Average [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Key inputs used in fair value for CRT agreements 7.30% 7.40%
Involuntary Prepayment Speed [Member] | Minimum [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Key inputs used in fair value for CRT agreements 0.10% 0.20%
Involuntary Prepayment Speed [Member] | Maximum [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Key inputs used in fair value for CRT agreements 0.20% 0.80%
Involuntary Prepayment Speed [Member] | Weighted Average [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Key inputs used in fair value for CRT agreements 0.10% 0.30%
Measurement Input, Loss Severity | Minimum [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Key inputs used in fair value for CRT agreements 0.00% 0.20%
Measurement Input, Loss Severity | Maximum [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Key inputs used in fair value for CRT agreements 0.20% 0.30%
Measurement Input, Loss Severity | Weighted Average [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Key inputs used in fair value for CRT agreements 0.10% 0.30%
v3.25.0.1
Fair Value - Quantitative Summary of Key Unobservable Inputs Used in Valuation of Interest Rate Lock Commitments (Detail) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Pull-Through Rate [Member] | Minimum [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Key inputs used in valuation of IRLCs 51.00% 50.00%
Pull-Through Rate [Member] | Maximum [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Key inputs used in valuation of IRLCs 98.00% 98.00%
Pull-Through Rate [Member] | Weighted Average [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Key inputs used in valuation of IRLCs 86.30% 82.50%
Servicing Fee Multiple [Member] | Minimum [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Key inputs used in valuation of IRLCs 2.60% 1.70%
Servicing Fee Multiple [Member] | Maximum [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Key inputs used in valuation of IRLCs 7.80% 6.50%
Servicing Fee Multiple [Member] | Weighted Average [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Key inputs used in valuation of IRLCs 5.70% 4.60%
Percentage of Unpaid Principal Balance [Member] | Minimum [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Key inputs used in valuation of IRLCs 0.60% 0.40%
Percentage of Unpaid Principal Balance [Member] | Maximum [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Key inputs used in valuation of IRLCs 2.70% 2.40%
Percentage of Unpaid Principal Balance [Member] | Weighted Average [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Key inputs used in valuation of IRLCs 1.90% 1.70%
Interest Rate Lock Commitments [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair value $ 444 $ 7,532
Committed amount $ 1,166,566 $ 874,017
v3.25.0.1
Fair Value - Summary of Key Unobservable Inputs Used in Valuation Credit Risk Transfer Strip Liabilities (Detail) - Credit Risk Transfer Strips [Member] - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair value of CRT derivatives liabilities $ 4,060 $ 46,692
Unpaid principal balance of loans in the reference pools $ 16,287,660 $ 17,714,679
Maximum [Member] | Discount Rate [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Key inputs used in valuation 9.10% 9.60%
Maximum [Member] | Voluntary Prepayment Speed [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Key inputs used in valuation 7.50% 8.20%
Maximum [Member] | Involuntary Prepayment Speed [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Key inputs used in valuation 0.30% 0.30%
Maximum [Member] | Remaining Loss Expectation [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Key inputs used in valuation 1.50% 1.60%
Minimum [Member] | Discount Rate [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Key inputs used in valuation 7.10% 7.90%
Minimum [Member] | Voluntary Prepayment Speed [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Key inputs used in valuation 6.90% 6.60%
Minimum [Member] | Involuntary Prepayment Speed [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Key inputs used in valuation 0.10% 0.20%
Minimum [Member] | Remaining Loss Expectation [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Key inputs used in valuation 0.40% 0.50%
Weighted Average [Member] | Discount Rate [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Key inputs used in valuation 8.80% 9.40%
Weighted Average [Member] | Voluntary Prepayment Speed [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Key inputs used in valuation 7.00% 6.80%
Weighted Average [Member] | Involuntary Prepayment Speed [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Key inputs used in valuation 0.10% 0.20%
Weighted Average [Member] | Remaining Loss Expectation [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Key inputs used in valuation 0.50% 0.60%
v3.25.0.1
Fair Value - Key Assumptions Used in Determining Fair Value of MSRs at Time of Initial Recognition (Detail)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
USD ($)
UsdPerLoan
Dec. 31, 2023
USD ($)
UsdPerLoan
Dec. 31, 2022
USD ($)
UsdPerLoan
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Fair value, MSR recognized | $ $ 219,001 $ 292,527 $ 670,343
Fair value, Unpaid principal balance of underlying loans | $ $ 12,240,231 $ 15,966,491 $ 39,014,110
Fair value, Weighted-average annual servicing fee rate (in basis points) 0.35% 0.39% 0.34%
Minimum [Member]      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Fair Value inputs, Pricing spread during period 5.40% 5.50% 5.50%
Fair Value inputs, Prepayment speed during period 8.70% 10.10% 5.50%
Fair Value inputs, Weighted average equivalent average life during period 3 years 4 months 24 days 2 years 9 months 18 days 4 years
Fair Value inputs, Annual per loan cost of servicing during period 68 68 73
Maximum [Member]      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Fair Value inputs, Pricing spread during period 8.50% 8.80% 8.90%
Fair Value inputs, Prepayment speed during period 26.70% 22.70% 19.70%
Fair Value inputs, Weighted average equivalent average life during period 8 years 1 month 6 days 7 years 2 months 12 days 9 years 7 months 6 days
Fair Value inputs, Annual per loan cost of servicing during period 87 83 81
Weighted Average [Member]      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Fair Value inputs, Pricing spread during period 5.60% 5.80% 6.30%
Fair Value inputs, Prepayment speed during period 12.20% 12.40% 9.30%
Fair Value inputs, Weighted average equivalent average life during period 6 years 10 months 24 days 6 years 9 months 18 days 8 years
Fair Value inputs, Annual per loan cost of servicing during period 69 70 79
v3.25.0.1
Fair Value - Quantitative Summary of Key Assumptions Used in Valuation of MSRs as of Dates Presented, and Effect on Estimated Fair Value from Adverse Changes in Those Inputs (Detail)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
USD ($)
UsdPerLoan
Dec. 31, 2023
USD ($)
UsdPerLoan
Dec. 31, 2022
USD ($)
Dec. 31, 2021
USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Balance at end of period $ 3,867,394 $ 3,919,107 $ 4,012,737 $ 2,892,855
Unpaid principal balance of underlying loans, Fair Value $ 226,237,613 $ 230,294,583    
Weighted-average annual servicing fee rate (in basis points), Fair value input 27.00% 28.00%    
Weighted-average note interest rate, Fair value 3.80% 3.70%    
Pricing Spread [Member] | Effect On Value Of Five Percentage Adverse Change        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Effect on value of percentage adverse change, Fair value input $ (47,568) $ (48,362)    
Pricing Spread [Member] | Effect On Value Of Ten Percentage Adverse Change        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Effect on value of percentage adverse change, Fair value input (94,018) (95,575)    
Pricing Spread [Member] | Effect On Value Of Twenty Percentage Adverse Change        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Effect on value of percentage adverse change, Fair value input (183,710) (186,699)    
Prepayment Speed [Member] | Effect On Value Of Five Percentage Adverse Change        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Effect on value of percentage adverse change, Fair value input (51,798) (53,964)    
Prepayment Speed [Member] | Effect On Value Of Ten Percentage Adverse Change        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Effect on value of percentage adverse change, Fair value input (102,010) (106,144)    
Prepayment Speed [Member] | Effect On Value Of Twenty Percentage Adverse Change        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Effect on value of percentage adverse change, Fair value input (197,970) (205,509)    
Cost of Servicing [Member] | Effect On Value Of Five Percentage Adverse Change        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Effect on value of percentage adverse change, Fair value input (16,645) (17,276)    
Cost of Servicing [Member] | Effect On Value Of Ten Percentage Adverse Change        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Effect on value of percentage adverse change, Fair value input (33,291) (34,551)    
Cost of Servicing [Member] | Effect On Value Of Twenty Percentage Adverse Change        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Effect on value of percentage adverse change, Fair value input $ (66,582) $ (69,103)    
Minimum [Member]        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Estimated fair value inputs, Pricing spread 5.40% 5.50%    
Estimated fair value inputs, Prepayment speed 6.50% 6.50%    
Estimated fair value inputs, Annual per-loan cost of servicing | UsdPerLoan 69 70    
Minimum [Member] | Mortgage service rights [Member]        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Estimated fair value inputs, Life (in years) 2 years 4 months 24 days 2 years 8 months 12 days    
Maximum [Member]        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Estimated fair value inputs, Pricing spread 8.10% 8.50%    
Estimated fair value inputs, Prepayment speed 17.70% 17.90%    
Estimated fair value inputs, Annual per-loan cost of servicing | UsdPerLoan 89 89    
Maximum [Member] | Mortgage service rights [Member]        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Estimated fair value inputs, Life (in years) 8 years 10 months 24 days 9 years 4 months 24 days    
Weighted Average [Member]        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Estimated fair value inputs, Pricing spread 5.40% 5.50%    
Estimated fair value inputs, Prepayment speed 7.00% 6.70%    
Estimated fair value inputs, Annual per-loan cost of servicing | UsdPerLoan 69 70    
Weighted Average [Member] | Mortgage service rights [Member]        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Estimated fair value inputs, Life (in years) 8 years 7 months 6 days 8 years 6 months    
v3.25.0.1
Mortgage-Backed Securities - Summary of Investment in Mortgage Backed Securities Activity (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Mortgage Backed Securities [Line Items]      
Balance at beginning of year $ 4,836,292    
Changes in fair value included in income arising from:      
Balance at end of year 4,063,706 $ 4,836,292  
Mortgage Backed Securities [Member]      
Mortgage Backed Securities [Line Items]      
Balance at beginning of year 4,836,292 4,462,601 $ 2,666,768
Purchases 638,155 3,172,193 3,718,093
Sales (1,071,692) (2,629,540) (1,079,826)
Repayments (417,279) (349,479) (278,373)
Exchange of mortgage servicing spread for interest-only stripped mortgage-backed securities 130,295 103,547 0
Changes in fair value included in income arising from:      
Amortization and accrual of net purchase premiums and discounts 28,773 1,986 12,697
Valuation adjustments, net (80,838) 74,984 (576,758)
Total changes in fair value included in income (52,065) 76,970 (564,061)
Balance at end of year $ 4,063,706 $ 4,836,292 $ 4,462,601
v3.25.0.1
Mortgage-Backed Securities - Schedule of Mortgage Backed Securities Pledged to Secure Assets Sold (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Mortgage Backed Securities [Member]    
Mortgage Backed Securities [Line Items]    
Assets sold under agreements to repurchase $ 4,063,706 $ 4,836,292
v3.25.0.1
Mortgage-Backed Securities - Summary of Investments in Mortgage Backed Securities (Detail) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Mortgage Backed Securities [Line Items]    
Fair value $ 4,063,706 $ 4,836,292
Mortgage Backed Securities [Member]    
Mortgage Backed Securities [Line Items]    
Principal balance or notional amount 4,194,752 4,777,649
Unamortized net purchase premiums (discounts) (169,422) (25,733)
Cumulative valuation changes (47,884) (9,855)
Fair value 3,977,446 4,742,061
Interest-Only Stripped Mortgage-Backed Securities [Member]    
Mortgage Backed Securities [Line Items]    
Principal balance or notional amount 386,040 419,791
Fair value 86,260 94,231
Mortgage-Backed Securities Including Interest-Only Stripped Mortgage-Backed Securities [Member]    
Mortgage Backed Securities [Line Items]    
Fair value 4,063,706 4,836,292
Agency Fixed Rate Pass Through Securities [Member] | Mortgage Backed Securities [Member]    
Mortgage Backed Securities [Line Items]    
Principal balance or notional amount 3,132,005 4,311,342
Unamortized net purchase premiums (discounts) (901) 34
Cumulative valuation changes (51,612) (41,320)
Fair value 3,079,492 4,270,056
Principal - Only Stripped Mortgage - Backed Securities [Member] | Mortgage Backed Securities [Member]    
Mortgage Backed Securities [Line Items]    
Principal balance or notional amount 776,455 65,573
Unamortized net purchase premiums (discounts) (160,960) (18,567)
Cumulative valuation changes (19,195) 6,330
Fair value 596,300 53,336
Subordinate Credit-Linked Securities | Mortgage Backed Securities [Member]    
Mortgage Backed Securities [Line Items]    
Principal balance or notional amount 174,813 275,963
Unamortized net purchase premiums (discounts) (4,292) (3,633)
Cumulative valuation changes 25,951 28,850
Fair value 196,472 301,180
Senior Non-Agency Securities [Member] | Mortgage Backed Securities [Member]    
Mortgage Backed Securities [Line Items]    
Principal balance or notional amount 111,479 124,771
Unamortized net purchase premiums (discounts) (3,269) (3,567)
Cumulative valuation changes (3,028) (3,715)
Fair value $ 105,182 $ 117,489
v3.25.0.1
Mortgage-Backed Securities - Summary of Investment in Mortgage Backed Securities (Parenthetical) (Detail)
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Minimum [Member]    
Mortgage Backed Securities [Line Items]    
Mortgage backed securities, maturity period 10 years 10 years
v3.25.0.1
Loans Acquired for Sale at Fair Value - Summary of Distribution of Company's Loans Acquired for Sale at Fair Value (Detail) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Loans acquired for sale at fair value $ 2,116,318 $ 669,018
Loans pledged to secure total 2,087,615 659,751
Loans acquired for sale at fair value [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Loans pledged to secure Assets sold under agreements to repurchase 2,075,473 659,751
PennyMac Loan Services, LLC [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Loans acquired for sale at fair value 602,108 168,303
Mortgage Loans Acquired for Sale [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Loans pledged to secure mortgage loan participation purchase and sale agreements 12,142 0
Held for Sale to Nonaffiliates-GSE Eligible [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Loans acquired for sale at fair value 1,311,754 491,108
Held for sale to PLS - GSE Eligible [Member] | PennyMac Loan Services, LLC [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Loans acquired for sale at fair value [1] 175,145 62,234
Held for Sale to PLS - Government-Insured or Guaranteed [Member] | PennyMac Loan Services, LLC [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Loans acquired for sale at fair value 426,963 106,069
Jumbo [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Loans acquired for sale at fair value 194,485 3,289
Home Equity Lines of Credit [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Loans acquired for sale at fair value 1,368 1,803
Repurchased Pursuant to Representations and Warranties [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Loans acquired for sale at fair value $ 6,603 $ 4,515
[1] GSE eligibility refers to the eligibility of loans for sale to Fannie Mae or Freddie Mac. The Company sells or finances a portion of
its GSE eligible loan production to other investors, including PLS.
v3.25.0.1
Loans at Fair Value - Summary of Distribution of Company's Loans at Fair Value (Detail) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Financing Receivable Recorded Investment [Line Items]    
Fair value $ 2,193,575 $ 1,433,820
Asset-backed financings at fair value (1) [1] 2,191,709 1,431,689
Loans at fair value, pledged to creditors 2,191,869 1,431,896
Loans in VIEs [Member]    
Financing Receivable Recorded Investment [Line Items]    
Fair value 2,191,709 1,431,689
Distressed [Member]    
Financing Receivable Recorded Investment [Line Items]    
Fair value 1,866 2,131
Agency-conforming loans secured by non-owner occupied properties [Member]    
Financing Receivable Recorded Investment [Line Items]    
Fair value 2,146,328 1,383,392
Fixed interest rate jumbo loans held in a VIE [Member]    
Financing Receivable Recorded Investment [Line Items]    
Fair value 45,381 48,297
Loans acquired for sale at fair value [Member]    
Financing Receivable Recorded Investment [Line Items]    
Fair value 2,116,318 669,018
Assets sold under agreements to repurchase $ 160 $ 207
[1] As discussed in Note 6 ‒ Variable Interest Entities ‒ Subordinate Mortgage-Backed Securities, the Company holds a portion of the securities issued by the VIEs. At December 31, 2024 and December 31, 2023, $130.8 million and $85.3 million, respectively, of such retained securities were pledged to secure Assets sold under agreements to repurchase.
v3.25.0.1
Loans at Fair Value - Summary of Distribution of Company's Loans at Fair Value (Parenthetical) (Detail) - USD ($)
$ in Millions
Dec. 31, 2024
Dec. 31, 2023
Mortgage Loans At Fair Value [Abstract]    
Securities retained at fair value pledged to secure Assets sold under agreements to repurchase $ 130.8 $ 85.3
v3.25.0.1
Derivative and Credit Risk Transfer Strip Assets and Liabilities - Summary of Derivative and Credit Risk Transfer Strip Assets and Liabilities (Detail) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]    
Derivative assets $ 56,840 $ 177,984
Derivative and credit risk transfer strip assets 56,840 177,984
Derivative liabilities 3,291 4,689
Credit risk transfer strip liabilities 4,060 46,692
Total derivative and credit risk transfer strip liabilities $ 7,351 $ 51,381
v3.25.0.1
Derivative and Credit Risk Transfer Strip Assets and Liabilities - Derivative Assets and Derivative Liabilities at Fair Value and Related Margin Deposits (Detail) - USD ($)
Dec. 31, 2024
Dec. 31, 2023
Derivatives Fair Value [Line Items]    
Total derivatives assets before netting $ 96,251,000 $ 89,591,000
Derivative assets, Netting (39,411,000) 88,393,000
Total derivative assets after netting 56,840,000 177,984,000
Margin deposits (received from) placed with derivative counterparties included in derivative balances above, net (31,497,000) 137,955,000
Derivative assets pledged to secure:    
Notes payable secured by credit risk transfer and mortgage servicing assets 2,929,790,000 2,910,605,000
Total derivative liabilities 11,207,000 54,250,000
Derivative liabilities, Netting (7,916,000) (49,561,000)
Total derivative liabilities after netting 3,291,000 4,689,000
Derivative assets related to CRT Derivatives [Member]    
Derivative assets pledged to secure:    
Notes payable secured by credit risk transfer and mortgage servicing assets 29,377,000 16,160,000
CRT Derivatives [Member]    
Derivatives Fair Value [Line Items]    
Notional amount [1],[2] 4,961,644,000 5,437,551,000
Total derivatives assets before netting [1] 29,377,000 16,160,000
Total derivative assets after netting 29,377,000 16,160,000
Derivative assets pledged to secure:    
Total derivative liabilities [1] 0 0
Forward Purchase Contracts [Member]    
Derivatives Fair Value [Line Items]    
Notional amount [1],[2] 1,154,515,000 2,789,324,000
Total derivatives assets before netting [1] 614,000 15,905,000
Derivative assets pledged to secure:    
Total derivative liabilities [1] 6,336,000 490,000
Forward Sale Contracts [Member]    
Derivatives Fair Value [Line Items]    
Notional amount [1],[2] 7,080,982,000 7,219,512,000
Total derivatives assets before netting [1] 54,056,000 671,000
Derivative assets pledged to secure:    
Total derivative liabilities [1] 1,753,000 50,363,000
Interest Rate Lock Commitments [Member]    
Derivatives Fair Value [Line Items]    
Notional amount [1],[2] 1,166,566,000 874,017,000
Total derivatives assets before netting [1] 3,562,000 7,596,000
Total derivative assets after netting 3,562,000 7,596,000
Derivative assets pledged to secure:    
Total derivative liabilities [1] 3,118,000 64,000
Call Options on Interest Rate Futures Purchase Contracts [Member]    
Derivatives Fair Value [Line Items]    
Notional amount [1],[2] 500,000,000 2,315,000,000
Total derivatives assets before netting [1] 156,000 41,712,000
Derivative assets pledged to secure:    
Total derivative liabilities [1] 0 2,005,000
Put Options On Interest Rate Futures Purchase Contracts    
Derivatives Fair Value [Line Items]    
Notional amount [1],[2] 1,690,000,000 2,900,000,000
Total derivatives assets before netting [1] 6,372,000 4,324,000
Derivative assets pledged to secure:    
Total derivative liabilities [1] 0 0
Call Options On Interest Rate Futures Sell Contracts [Member]    
Derivatives Fair Value [Line Items]    
Notional amount [1],[2] 0 500,000,000
Total derivatives assets before netting [1] 0 0
Derivative assets pledged to secure:    
Total derivative liabilities [1] 0 1,328,000
MBS Call Options [Member]    
Derivatives Fair Value [Line Items]    
Notional amount [1],[2] 0 500,000,000
Total derivatives assets before netting [1] 0 3,218,000
Derivative assets pledged to secure:    
Total derivative liabilities [1] 0 0
MBS Put Options [Member]    
Derivatives Fair Value [Line Items]    
Notional amount [1],[2] 450,000,000 450,000,000
Total derivatives assets before netting [1] 2,114,000 5,000
Derivative assets pledged to secure:    
Total derivative liabilities [1] 0 0
Swap Futures [Member]    
Derivatives Fair Value [Line Items]    
Notional amount [1],[2] 951,200,000 1,048,800,000
Total derivatives assets before netting [1] 0 0
Derivative assets pledged to secure:    
Total derivative liabilities [1] 0 0
Bond Futures [Member]    
Derivatives Fair Value [Line Items]    
Notional amount [1],[2] 1,713,000,000 2,860,500,000
Total derivatives assets before netting [1] 0 0
Derivative assets pledged to secure:    
Total derivative liabilities [1] $ 0 $ 0
[1] All hedging derivatives are interest rate derivatives that are used as economic hedges.
[2] Notional amounts provide an indication of the volume of the Company’s derivative activities.
v3.25.0.1
Derivative and Credit Risk Transfer Strip Assets and Liabilities - Summary of Derivative Assets, Financial Instruments and Collateral Held by Counterparty (Detail) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Offsetting Assets [Line Items]    
Total derivative assets after netting $ 56,840 $ 177,984
Financial instruments 0 0
Cash collateral received 0 0
Net amount 56,840 177,984
CRT Derivatives [Member]    
Offsetting Assets [Line Items]    
Total derivative assets after netting 29,377 16,160
Financial instruments 0 0
Cash collateral received 0 0
Net amount 29,377 16,160
Interest Rate Lock Commitments [Member]    
Offsetting Assets [Line Items]    
Total derivative assets after netting 3,562 7,596
Financial instruments 0 0
Cash collateral received 0 0
Net amount 3,562 7,596
Morgan Stanley & Co. LLC [Member]    
Offsetting Assets [Line Items]    
Total derivative assets after netting 9,303 79,825
Financial instruments 0 0
Cash collateral received 0 0
Net amount 9,303 79,825
RJ O'Brien & Associates, LLC [Member]    
Offsetting Assets [Line Items]    
Total derivative assets after netting 6,528 42,703
Financial instruments 0 0
Cash collateral received 0 0
Net amount 6,528 42,703
Bank of America, N.A. [Member]    
Offsetting Assets [Line Items]    
Total derivative assets after netting 3,150 3,418
Financial instruments 0 0
Cash collateral received 0 0
Net amount 3,150 3,418
J.P. Morgan Securities LLC [Member]    
Offsetting Assets [Line Items]    
Total derivative assets after netting 1,237 997
Financial instruments 0 0
Cash collateral received 0 0
Net amount 1,237 997
Wells Fargo Securities L L C    
Offsetting Assets [Line Items]    
Total derivative assets after netting 895 7,759
Financial instruments 0 0
Cash collateral received 0 0
Net amount 895 7,759
Citigroup Global Markets Inc. [Member]    
Offsetting Assets [Line Items]    
Total derivative assets after netting 712 503
Financial instruments 0 0
Cash collateral received 0 0
Net amount 712 503
Goldman Sachs & Co. LLC [Member]    
Offsetting Assets [Line Items]    
Total derivative assets after netting 251 18,701
Financial instruments 0 0
Cash collateral received 0 0
Net amount 251 18,701
Other [Member]    
Offsetting Assets [Line Items]    
Total derivative assets after netting 1,825 322
Financial instruments 0 0
Cash collateral received 0 0
Net amount $ 1,825 $ 322
v3.25.0.1
Derivative and Credit Risk Transfer Strip Assets and Liabilities - Summary of Derivative Liabilities, Financial Liabilities and Collateral Pledged by Counterparty (Detail) - Unpaid Principal Balance Before Unamortized Debt Issuance Costs Adjustment [Member] - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Offsetting Liabilities [Line Items]    
Net amount of liabilities presented in the consolidated balance sheet $ 6,512,706 $ 5,632,496
Gross amounts not offset in the consolidated balance sheet, Financial instruments (6,509,415) (5,627,807)
Gross amounts not offset in the consolidated balance sheet, Cash collateral pledged 0 0
Net amount 3,291 4,689
Interest Rate Lock Commitments [Member] | Security Sold Under Agreements to Repurchase [Member]    
Offsetting Liabilities [Line Items]    
Net amount of liabilities presented in the consolidated balance sheet 3,118 64
Gross amounts not offset in the consolidated balance sheet, Financial instruments 0 0
Gross amounts not offset in the consolidated balance sheet, Cash collateral pledged 0 0
Net amount 3,118 64
J.P. Morgan Securities LLC [Member] | Security Sold Under Agreements to Repurchase [Member]    
Offsetting Liabilities [Line Items]    
Net amount of liabilities presented in the consolidated balance sheet 1,695,007 1,521,072
Gross amounts not offset in the consolidated balance sheet, Financial instruments (1,695,007) (1,521,072)
Gross amounts not offset in the consolidated balance sheet, Cash collateral pledged 0 0
Net amount 0 0
Bank of America, N.A. [Member] | Security Sold Under Agreements to Repurchase [Member]    
Offsetting Liabilities [Line Items]    
Net amount of liabilities presented in the consolidated balance sheet 787,883 785,756
Gross amounts not offset in the consolidated balance sheet, Financial instruments (787,883) (785,756)
Gross amounts not offset in the consolidated balance sheet, Cash collateral pledged 0 0
Net amount 0 0
Wells Fargo Securities L L C | Security Sold Under Agreements to Repurchase [Member]    
Offsetting Liabilities [Line Items]    
Net amount of liabilities presented in the consolidated balance sheet 670,605 569,129
Gross amounts not offset in the consolidated balance sheet, Financial instruments (670,605) (569,129)
Gross amounts not offset in the consolidated balance sheet, Cash collateral pledged 0 0
Net amount 0 0
Atlas Securitized Products, L.P. [Member] | Security Sold Under Agreements to Repurchase [Member]    
Offsetting Liabilities [Line Items]    
Net amount of liabilities presented in the consolidated balance sheet 609,780 783,456
Gross amounts not offset in the consolidated balance sheet, Financial instruments (609,780) (783,456)
Gross amounts not offset in the consolidated balance sheet, Cash collateral pledged 0 0
Net amount 0 0
Barclays Capital Inc. [Member] | Security Sold Under Agreements to Repurchase [Member]    
Offsetting Liabilities [Line Items]    
Net amount of liabilities presented in the consolidated balance sheet 545,678 807,404
Gross amounts not offset in the consolidated balance sheet, Financial instruments (545,678) (803,641)
Gross amounts not offset in the consolidated balance sheet, Cash collateral pledged 0 0
Net amount 0 3,763
Citigroup Global Markets Inc. [Member] | Security Sold Under Agreements to Repurchase [Member]    
Offsetting Liabilities [Line Items]    
Net amount of liabilities presented in the consolidated balance sheet 431,201 147,093
Gross amounts not offset in the consolidated balance sheet, Financial instruments (431,201) (147,093)
Gross amounts not offset in the consolidated balance sheet, Cash collateral pledged 0 0
Net amount 0 0
Santander US Capital [Member] | Security Sold Under Agreements to Repurchase [Member]    
Offsetting Liabilities [Line Items]    
Net amount of liabilities presented in the consolidated balance sheet 362,196 292,091
Gross amounts not offset in the consolidated balance sheet, Financial instruments (362,196) (292,091)
Gross amounts not offset in the consolidated balance sheet, Cash collateral pledged 0 0
Net amount 0 0
RBC Capital Markets, L.P. [Member] | Security Sold Under Agreements to Repurchase [Member]    
Offsetting Liabilities [Line Items]    
Net amount of liabilities presented in the consolidated balance sheet 353,765 128,602
Gross amounts not offset in the consolidated balance sheet, Financial instruments (353,765) (128,602)
Gross amounts not offset in the consolidated balance sheet, Cash collateral pledged 0 0
Net amount 0 0
Goldman Sachs & Co. LLC [Member] | Security Sold Under Agreements to Repurchase [Member]    
Offsetting Liabilities [Line Items]    
Net amount of liabilities presented in the consolidated balance sheet 311,997 145,007
Gross amounts not offset in the consolidated balance sheet, Financial instruments (311,997) (145,007)
Gross amounts not offset in the consolidated balance sheet, Cash collateral pledged 0 0
Net amount 0 0
Morgan Stanley & Co. LLC [Member] | Security Sold Under Agreements to Repurchase [Member]    
Offsetting Liabilities [Line Items]    
Net amount of liabilities presented in the consolidated balance sheet 280,561 25,814
Gross amounts not offset in the consolidated balance sheet, Financial instruments (280,561) (25,814)
Gross amounts not offset in the consolidated balance sheet, Cash collateral pledged 0 0
Net amount 0 0
Daiwa Capital Markets [Member] | Security Sold Under Agreements to Repurchase [Member]    
Offsetting Liabilities [Line Items]    
Net amount of liabilities presented in the consolidated balance sheet 230,033 340,975
Gross amounts not offset in the consolidated balance sheet, Financial instruments (230,033) (340,975)
Gross amounts not offset in the consolidated balance sheet, Cash collateral pledged 0 0
Net amount 0 0
Mizuho Financial Group [Member] | Security Sold Under Agreements to Repurchase [Member]    
Offsetting Liabilities [Line Items]    
Net amount of liabilities presented in the consolidated balance sheet 98,196 67,637
Gross amounts not offset in the consolidated balance sheet, Financial instruments (98,121) (67,110)
Gross amounts not offset in the consolidated balance sheet, Cash collateral pledged 0 0
Net amount 75 527
Bank of Montreal [Member] | Security Sold Under Agreements to Repurchase [Member]    
Offsetting Liabilities [Line Items]    
Net amount of liabilities presented in the consolidated balance sheet 72,859 0
Gross amounts not offset in the consolidated balance sheet, Financial instruments (72,859) 0
Gross amounts not offset in the consolidated balance sheet, Cash collateral pledged 0 0
Net amount 0 0
BNP Paribas [Member] | Security Sold Under Agreements to Repurchase [Member]    
Offsetting Liabilities [Line Items]    
Net amount of liabilities presented in the consolidated balance sheet 59,729 10,121
Gross amounts not offset in the consolidated balance sheet, Financial instruments (59,729) (10,121)
Gross amounts not offset in the consolidated balance sheet, Cash collateral pledged 0 0
Net amount 0 0
Nomura Holdings America, Inc [Member] | Security Sold Under Agreements to Repurchase [Member]    
Offsetting Liabilities [Line Items]    
Net amount of liabilities presented in the consolidated balance sheet 36 8,135
Gross amounts not offset in the consolidated balance sheet, Financial instruments 0 (7,940)
Gross amounts not offset in the consolidated balance sheet, Cash collateral pledged 0 0
Net amount 36 195
Other [Member] | Security Sold Under Agreements to Repurchase [Member]    
Offsetting Liabilities [Line Items]    
Net amount of liabilities presented in the consolidated balance sheet 62 140
Gross amounts not offset in the consolidated balance sheet, Financial instruments 0 0
Gross amounts not offset in the consolidated balance sheet, Cash collateral pledged 0 0
Net amount $ 62 $ 140
v3.25.0.1
Derivative and Credit Risk Transfer Strip Assets and Liabilities - Net Gains (Losses) Recognized on Derivative Financial Instruments (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Interest Rate Lock Commitments [Member]      
Derivative Instruments Gain Loss [Line Items]      
Net gains (losses) on derivative financial instruments used as economic hedges $ (7,089) $ 8,010 $ (2,928)
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] Gain (Loss) on Sales of Loans, Net Gain (Loss) on Sales of Loans, Net Gain (Loss) on Sales of Loans, Net
Interest rate lock commitments and loans acquired for sale [Member]      
Derivative Instruments Gain Loss [Line Items]      
Net gains (losses) on derivative financial instruments used as economic hedges $ 19,896 $ 4,636 $ 553,965
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] Gain (Loss) on Sales of Loans, Net Gain (Loss) on Sales of Loans, Net Gain (Loss) on Sales of Loans, Net
Mortgage service rights [Member]      
Derivative Instruments Gain Loss [Line Items]      
Net gains (losses) on derivative financial instruments used as economic hedges $ (226,608) $ (92,775) $ (204,879)
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] Contractually Specified Servicing Fee, Late Fee, and Ancillary Fee Earned in Exchange for Servicing Financial Asset Contractually Specified Servicing Fee, Late Fee, and Ancillary Fee Earned in Exchange for Servicing Financial Asset Contractually Specified Servicing Fee, Late Fee, and Ancillary Fee Earned in Exchange for Servicing Financial Asset
Assets Sold Under Agreements to Repurchase [Member]      
Derivative Instruments Gain Loss [Line Items]      
Net gains (losses) on derivative financial instruments used as economic hedges $ 20,098 $ (83,201) $ 0
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] Gain Loss On Investments And Financings Gain Loss On Investments And Financings Gain Loss On Investments And Financings
CRT Derivatives [Member]      
Derivative Instruments Gain Loss [Line Items]      
Net gains (losses) on derivative financial instruments used as economic hedges $ 27,020 $ 56,544 $ (3,838)
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] Gain Loss On Investments And Financings Gain Loss On Investments And Financings Gain Loss On Investments And Financings
v3.25.0.1
Mortgage Servicing Rights - Summary of MSRs Carried at Fair Value (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Summary Of Mortgage Servicing Rights [Line Items]      
Balance at beginning of year $ 3,919,107 $ 4,012,737 $ 2,892,855
Purchases 29,429 16,258 0
Servicing Asset At Fair Value Additions From Loan Sales 219,001 292,527 670,343
Transfers to Agency of mortgage servicing rights relating to delinquent loans 561 (472) 104
Exchange of mortgage servicing spread for interest-only stripped mortgage-backed securities and interest receivable (130,295) (105,096) 0
Due to changes in inputs used in valuation model [1] 217,182 87,811 819,727
Other changes in fair value [2] (387,591) (384,658) (370,292)
Change in fair value, Total (170,409) (296,847) 449,435
Balance at end of year 3,867,394 3,919,107 $ 4,012,737
Pledged Assets [Member]      
Summary Of Mortgage Servicing Rights [Line Items]      
Fair value of mortgage servicing rights pledged to secure Assets sold under agreements to repurchase and Notes payable secured by credit risk transfer and mortgage servicing assets $ 3,807,065 $ 3,871,249  
[1] Primarily reflects changes in pricing spread, prepayment speed, servicing cost, and UPB of underlying loan inputs.
[2] Represents changes due to realization of expected cash flows.
v3.25.0.1
Mortgage Servicing Rights - Summary of Net Loan Servicing Fees Relating to MSRs (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Transfers and Servicing [Abstract]      
Contractually-specified servicing fees $ 644,642 $ 659,438 $ 625,210
Late charges 4,056 3,352 2,526
Other 10,666 13,656 23,515
Mortgage loan other servicing fees 14,722 17,008 26,041
Net mortgage loan servicing fees 659,364 676,446 651,251
Average UPB of underlying loans $ 228,705,758 $ 231,203,032 $ 222,847,593
v3.25.0.1
Other Assets - Summary of Other Assets (Detail) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Other Assets [Line Items]    
Margin deposits $ 346,241 $ 124,293
Interest receivable 38,661 37,305
Servicing fees receivable 10,820 14,603
Correspondent lending receivables 3,930 6,313
Other receivables 16,706 7,199
Real estate acquired in settlement of loans 2,464 4,541
Other 19,399 58,284
Other Assets 438,221 252,538
Real Estate Acquired in Settlement of Loans Pledge to Secure [Member]    
Other Assets [Line Items]    
Assets sold under agreements to repurchase $ 527 $ 1,905
v3.25.0.1
Assets Sold Under Agreements to Repurchase - Summary of Financial Information Relating to Assets Sold under Agreements to Repurchase (Detail) - USD ($)
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Assets Sold under Agreements to Repurchase [Line Items]      
Weighted average interest rate 5.94% 5.91% 2.81%
Average balance $ 5,478,037,000 $ 6,306,627,000 $ 5,625,345,000
Total interest expense 331,800,000 378,367,000 165,436,000
Maximum daily amount outstanding 7,865,435,000 9,460,676,000 $ 8,834,936,000
Assets Sold Under Agreements To Repurchase 6,509,415,000 5,627,807,000  
Assets sold under agreements to repurchase, At year end $ 6,500,938,000 $ 5,624,558,000  
Weighted average interest rate 5.37% 6.14%  
Available borrowing capacity, Committed $ 565,488,000 $ 634,147,000  
Available borrowing capacity, Uncommitted 4,559,239,000 5,221,706,000  
Available borrowing capacity 5,124,727,000 5,855,853,000  
Margin deposits placed with (received from) counterparties included in Other assets (Accounts payable and accrued liabilities), net 296,922,000 (116,358,000)  
Assets Sold Under Agreements to Repurchase [Member]      
Assets Sold under Agreements to Repurchase [Line Items]      
Unamortized debt issuance costs (8,477,000) (3,249,000)  
Mortgage Backed Securities [Member]      
Assets Sold under Agreements to Repurchase [Line Items]      
Assets Sold under Agreements to Repurchase, Market Value 4,063,706,000 4,836,292,000  
Loans Acquired For Sale At Fair Value [Member]      
Assets Sold under Agreements to Repurchase [Line Items]      
Assets Sold under Agreements to Repurchase, Market Value 2,075,473,000 659,751,000  
Loans At Fair Value | Securities Retained In Asset Backed Financings [Member]      
Assets Sold under Agreements to Repurchase [Line Items]      
Assets Sold under Agreements to Repurchase, Market Value 130,839,000 85,344,000  
Loans At Fair Value | Distressed loans [Member]      
Assets Sold under Agreements to Repurchase [Line Items]      
Assets Sold under Agreements to Repurchase, Market Value 160,000 207,000  
Servicing advances [Member]      
Assets Sold under Agreements to Repurchase [Line Items]      
Assets Sold under Agreements to Repurchase, Market Value 50,333,000 101,927,000  
Real estate acquired in settlement of loans [Member]      
Assets Sold under Agreements to Repurchase [Line Items]      
Assets Sold under Agreements to Repurchase, Market Value 527,000 1,905,000  
Mortgage service rights [Member]      
Assets Sold under Agreements to Repurchase [Line Items]      
Assets Sold under Agreements to Repurchase, Market Value 1,906,043,000 2,000,574,000  
Deposits Securing Credit Risk Transfer Arrangements [Member]      
Assets Sold under Agreements to Repurchase [Line Items]      
Assets Sold under Agreements to Repurchase, Market Value $ 199,965,000 $ 77,417,000  
v3.25.0.1
Assets Sold Under Agreements to Repurchase - Summary of Financial Information Relating to Assets Sold under Agreements to Repurchase (Parenthetical) (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Assets Sold Under Agreements to Repurchase [Member]      
Assets Sold under Agreements to Repurchase [Line Items]      
Amortization of debt issuance costs and non utilization fees $ 6.4 $ 5.5 $ 7.6
v3.25.0.1
Assets Sold Under Agreements to Repurchase - Summary of Maturities of Outstanding Advances Under Repurchase Agreements by Maturity Date (Detail)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
USD ($)
Assets Sold under Agreements to Repurchase [Line Items]  
Maturity of repurchase agreements $ 6,509,415
Weighted average maturity (in months) 1 month 18 days
Within 30 days [Member]  
Assets Sold under Agreements to Repurchase [Line Items]  
Maturity of repurchase agreements $ 4,568,493
Over 30 to 90 days [Member]  
Assets Sold under Agreements to Repurchase [Line Items]  
Maturity of repurchase agreements 1,326,293
Over 90 days to 180 days [Member]  
Assets Sold under Agreements to Repurchase [Line Items]  
Maturity of repurchase agreements 353,765
Over 180 Days to 1 Year [Member]  
Assets Sold under Agreements to Repurchase [Line Items]  
Maturity of repurchase agreements 0
Over 1 year to 2 years [Member]  
Assets Sold under Agreements to Repurchase [Line Items]  
Maturity of repurchase agreements $ 260,864
v3.25.0.1
Assets Sold Under Agreements to Repurchase - Summary of Assets Sold under Agreements to Repurchase by Counterparty (Detail)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
USD ($)
Goldman Sachs & Co. LLC [Member]  
Assets Sold under Agreements to Repurchase [Line Items]  
Amount at risk $ 3,817
Weighted average maturity Feb. 28, 2025
Goldman Sachs & Co. LLC [Member] | Mortgage loans acquired for sale, mortgage loans, REO and MSRs sold under agreements to repurchase [Member]  
Assets Sold under Agreements to Repurchase [Line Items]  
Amount at risk $ 146,796
Weighted-average maturity, Advances Mar. 27, 2025
Weighted-average maturity, Facility Feb. 21, 2026
Goldman Sachs & Co. LLC [Member] | Credit Risk Transfer Agreements [Member]  
Assets Sold under Agreements to Repurchase [Line Items]  
Amount at risk $ 111,176
Weighted average maturity Jan. 18, 2025
Atlas Securitized Products, L.P. [Member] | Mortgage loans acquired for sale, mortgage loans, REO and MSRs sold under agreements to repurchase [Member]  
Assets Sold under Agreements to Repurchase [Line Items]  
Amount at risk $ 110,744
Weighted-average maturity, Advances Feb. 28, 2025
Weighted-average maturity, Facility Jun. 26, 2026
Citibank, N.A. [Member]  
Assets Sold under Agreements to Repurchase [Line Items]  
Amount at risk $ 43,489
Weighted average maturity Jan. 13, 2025
Citibank, N.A. [Member] | Mortgage loans acquired for sale, mortgage loans, REO and MSRs sold under agreements to repurchase [Member]  
Assets Sold under Agreements to Repurchase [Line Items]  
Amount at risk $ 55,845
Weighted-average maturity, Advances Jan. 11, 2025
Weighted-average maturity, Facility Jun. 11, 2026
Bank of America, N.A. [Member]  
Assets Sold under Agreements to Repurchase [Line Items]  
Amount at risk $ 29,234
Weighted average maturity Jan. 10, 2025
Bank of America, N.A. [Member] | Mortgage loans acquired for sale, mortgage loans, REO and MSRs sold under agreements to repurchase [Member]  
Assets Sold under Agreements to Repurchase [Line Items]  
Amount at risk $ 37,636
Weighted-average maturity, Advances Jan. 24, 2025
Weighted-average maturity, Facility Jun. 10, 2026
JPMorgan Chase & Co. [Member]  
Assets Sold under Agreements to Repurchase [Line Items]  
Amount at risk $ 46,159
Weighted average maturity Jan. 11, 2025
JPMorgan Chase & Co. [Member] | Mortgage loans acquired for sale, mortgage loans, REO and MSRs sold under agreements to repurchase [Member]  
Assets Sold under Agreements to Repurchase [Line Items]  
Amount at risk $ 14,712
Weighted-average maturity, Advances Feb. 19, 2025
Weighted-average maturity, Facility Jun. 28, 2026
Wells Fargo Securities L L C [Member]  
Assets Sold under Agreements to Repurchase [Line Items]  
Amount at risk $ 28,622
Weighted average maturity Jan. 23, 2025
Wells Fargo Securities L L C [Member] | Mortgage loans acquired for sale, mortgage loans, REO and MSRs sold under agreements to repurchase [Member]  
Assets Sold under Agreements to Repurchase [Line Items]  
Amount at risk $ 844
Weighted-average maturity, Advances Mar. 16, 2025
Weighted-average maturity, Facility Oct. 15, 2025
Barclays Capital Inc. [Member]  
Assets Sold under Agreements to Repurchase [Line Items]  
Amount at risk $ 17,969
Weighted average maturity Jan. 12, 2025
Barclays Capital Inc. [Member] | Mortgage loans acquired for sale, mortgage loans, REO and MSRs sold under agreements to repurchase [Member]  
Assets Sold under Agreements to Repurchase [Line Items]  
Amount at risk $ 6,491
Weighted-average maturity, Advances Mar. 09, 2025
Weighted-average maturity, Facility Mar. 06, 2026
RBC Capital Markets L.P. [Member] | Mortgage loans acquired for sale, mortgage loans, REO and MSRs sold under agreements to repurchase [Member]  
Assets Sold under Agreements to Repurchase [Line Items]  
Amount at risk $ 18,420
Weighted-average maturity, Advances Apr. 12, 2025
Weighted-average maturity, Facility Nov. 10, 2025
Morgan Stanley & Co. LLC [Member] | Mortgage loans acquired for sale, mortgage loans, REO and MSRs sold under agreements to repurchase [Member]  
Assets Sold under Agreements to Repurchase [Line Items]  
Amount at risk $ 13,879
Weighted-average maturity, Advances Mar. 16, 2025
Weighted-average maturity, Facility May 22, 2026
BNP Paribas [Member] | Mortgage loans acquired for sale, mortgage loans, REO and MSRs sold under agreements to repurchase [Member]  
Assets Sold under Agreements to Repurchase [Line Items]  
Amount at risk $ 319
Weighted-average maturity, Advances Mar. 27, 2025
Weighted-average maturity, Facility Sep. 30, 2026
Santander US Capital [Member]  
Assets Sold under Agreements to Repurchase [Line Items]  
Amount at risk $ 14,310
Weighted average maturity Jan. 13, 2025
Bank of Montreal [Member]  
Assets Sold under Agreements to Repurchase [Line Items]  
Amount at risk $ 7,215
Weighted average maturity Feb. 12, 2025
Daiwa Capital Markets America Inc. [Member]  
Assets Sold under Agreements to Repurchase [Line Items]  
Amount at risk $ 5,149
Weighted average maturity Jan. 02, 2025
Mizuho Financial Group [Member]  
Assets Sold under Agreements to Repurchase [Line Items]  
Amount at risk $ 3,968
Weighted average maturity Jan. 06, 2025
v3.25.0.1
Mortgage Loan Participation Purchase and Sale Agreement - Summary of Mortgage Loan Participation Purchase and Sale Agreement (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
At period end:      
Mortgage loan participation purchase and sale agreements $ 11,593 $ 0  
Mortgage Loan Participation Purchase and Sale Agreement [Member]      
Mortgage Loan Participation Purchase And Sale Agreement [Line Items]      
Weighted average interest rate 6.54% 6.50% 2.99%
Average balance $ 17,852 $ 19,079 $ 30,024
Total interest expense 1,292 1,365 1,023
Maximum daily amount outstanding 78,068 $ 90,565 $ 91,857
At period end:      
Amount outstanding 11,650    
Unamortized debt issuance costs (57)    
Mortgage loan participation purchase and sale agreements $ 11,593    
Weighted average interest rate 5.58%    
Loans acquired for sale pledged to secure $ 12,142    
v3.25.0.1
Mortgage Loan Participation Purchase and Sale Agreement - Summary of Mortgage Loan Participation Purchase and Sale Agreement (Parenthetical) (Detail) - USD ($)
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Mortgage Loan Participation Purchase And Sale Agreement [Line Items]      
Amortization of premiums and debt issuance costs $ 23,095,000 $ 15,141,000 $ 16,563,000
Mortgage Loan Participation Purchase and Sale Agreement [Member]      
Mortgage Loan Participation Purchase And Sale Agreement [Line Items]      
Amortization of premiums and debt issuance costs $ 125,000 $ 125,000 $ 125,000
v3.25.0.1
Long-Term Debt - Summary of Term Note Issued to Qualified Institutional Buyers (Detail)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
USD ($)
Secured Debt | CRT Arrangement Financing [Member]  
Debt Instrument [Line Items]  
Unpaid principal balance $ 710,329
Secured Term Notes | Fannie Mae MSR Financing  
Debt Instrument [Line Items]  
Unpaid principal balance 1,075,000
August 28, 2024 [Member] | Secured Debt | CRT Arrangement Financing [Member]  
Debt Instrument [Line Items]  
Notes Issued 158,500
Unpaid principal balance $ 151,631
Interest rate spread (Annual) 3.10%
Maturity date, Stated Sep. 27, 2028
April 4, 2024 [Member] | Secured Debt | CRT Arrangement Financing [Member]  
Debt Instrument [Line Items]  
Notes Issued $ 247,000
Unpaid principal balance $ 230,374
Interest rate spread (Annual) 3.35%
Maturity date, Stated Mar. 29, 2027
March 6, 2024 [Member] | Secured Debt | CRT Arrangement Financing [Member]  
Debt Instrument [Line Items]  
Notes Issued $ 306,000
Unpaid principal balance $ 283,749
Interest rate spread (Annual) 3.50%
Maturity date, Stated Mar. 01, 2027
February 14, 2020 [Member] | Secured Debt | CRT Arrangement Financing [Member]  
Debt Instrument [Line Items]  
Notes Issued $ 350,000
Unpaid principal balance $ 44,575
Interest rate spread (Annual) 3.35%
Maturity date, Stated Feb. 27, 2025
May 25, 2023 [Member] | Secured Term Notes | Fannie Mae MSR Financing  
Debt Instrument [Line Items]  
Unpaid principal balance $ 370,000
Interest rate spread (Annual) 3.00%
Maturity date, Stated May 25, 2028
Maturity date, Optional extension May 25, 2029
June 27, 2024 [Member] | Secured Term Notes | Fannie Mae MSR Financing  
Debt Instrument [Line Items]  
Unpaid principal balance $ 355,000
Interest rate spread (Annual) 2.75%
Maturity date, Stated Dec. 27, 2027
Maturity date, Optional extension Jun. 26, 2028
March 30, 2021 [Member] | Secured Term Notes | Fannie Mae MSR Financing  
Debt Instrument [Line Items]  
Unpaid principal balance $ 350,000
Interest rate spread (Annual) 3.00%
Maturity date, Stated Mar. 25, 2026
Maturity date, Optional extension Mar. 27, 2028
v3.25.0.1
Long-Term Debt - Additional Information (Detail) - USD ($)
 12 Months Ended
Aug. 10, 2023
Dec. 31, 2024
Sep. 30, 2025
Sep. 30, 2023
Credit Agreements [Member] | Freddie Mac MSR and Servicing Advance Receivables Financing        
Debt Instrument [Line Items]        
Aggregate loan amount   $ 2,000,000,000    
Maturity date of debt instrument   Aug. 31, 2026    
Series 2023-VF1 and Class A-VF1 Variable Funding Note | Freddie Mac MSR and Servicing Advance Receivables Financing        
Debt Instrument [Line Items]        
Maturity date of debt instrument Mar. 06, 2026      
Series 2023-VF1 and Class A-VF1 Variable Funding Note | Freddie Mac MSR and Servicing Advance Receivables Financing | Maximum [Member]        
Debt Instrument [Line Items]        
Aggregate principal amount $ 175,000,000      
2029 Exchangeable Notes [Member]        
Debt Instrument [Line Items]        
Aggregate loan amount   $ 216,500,000    
2026 Exchangeable Notes [Member]        
Debt Instrument [Line Items]        
Aggregate loan amount   345,000,000    
2028 Senior Notes [Member]        
Debt Instrument [Line Items]        
Percentage of interest on debt       8.50%
Aggregate principal amount       $ 53,500,000
2028 Senior Notes [Member] | Forecast [Member]        
Debt Instrument [Line Items]        
Percentage of interest on debt     100.00%  
PennyMac Loan Services, LLC [Member] | Fannie Mae MSR Financing        
Debt Instrument [Line Items]        
Line of credit, maximum borrowing capacity   $ 1,100,000,000    
Repurchase agreement facilities   2 years    
v3.25.0.1
Long-Term Debt - Summary of Financial Information Relating to Note Payable Secured by Credit Risk Transfer and Mortgage Servicing Assets (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Carrying value:      
Balance $ 2,929,790 $ 2,910,605  
Assets securing notes payable:      
Derivative assets 29,377 16,160  
Freddie Mac MSR Financing      
Carrying value:      
Balance 2,929,790 2,910,605  
Carrying value of notes 2,938,815 2,917,662  
Assets securing notes payable:      
MSRs 3,807,065 3,871,249  
Servicing advances 39,063 79,274  
Deposits securing CRT arrangements 910,743 1,132,081  
Notes Payable [Member] | Freddie Mac MSR Financing      
Short Term Debt [Line Items]      
Average balance $ 2,883,379 $ 2,969,174 $ 2,646,597
Weighted-average interest rate 8.67% 8.42% 4.92%
Total interest expense $ 261,008 $ 257,601 $ 137,021
Carrying value:      
Unamortized debt issuance costs $ (9,025) $ (7,057)  
Weighted average interest rate 7.60% 8.73%  
Assets securing notes payable:      
Derivative assets $ 29,377 $ 16,160  
CRT Arrangement Financing [Member] | Freddie Mac MSR Financing      
Carrying value:      
Carrying value of notes 710,329 747,662  
Freddie Mac Credit Agreements [Member] | Fannie Mae MSR Financing      
Carrying value:      
Carrying value of notes 1,075,000 1,025,000  
Freddie Mac Credit Agreements [Member] | Freddie Mac MSR and Servicing Advance Receivables Financing      
Carrying value:      
Carrying value of notes $ 1,153,486 $ 1,145,000  
v3.25.0.1
Long-Term Debt - Summary of Financial Information Relating to Note Payable Secured by Credit Risk Transfer and Mortgage Servicing Assets (Parenthetical) (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Short Term Debt [Line Items]      
Amortization of premiums and debt issuance costs $ 23,095 $ 15,141 $ 16,563
Notes Payable [Member] | Freddie Mac MSR Financing      
Short Term Debt [Line Items]      
Amortization of premiums and debt issuance costs $ 11,000 $ 7,500 $ 6,700
v3.25.0.1
Long-Term Debt - Summary of Financial Information Relating to Exchangeable Senior Notes (Detail) - Unsecured Senior Notes [Member] - Exchangeable Senior Notes [Member]
$ in Thousands
 12 Months Ended
Dec. 31, 2024
USD ($)
Conversion Rate
Debt Instrument [Line Items]  
Unpaid principal balance $ 561,500
May 24, 2024 [Member]  
Debt Instrument [Line Items]  
Unpaid principal balance $ 216,500
Interest rate spread (Annual) 8.50%
Conversion rates | Conversion Rate 63.3332
Maturity date, Stated Jun. 01, 2029
March 5, 2021 [Member]  
Debt Instrument [Line Items]  
Unpaid principal balance $ 345,000
Interest rate spread (Annual) 5.50%
Conversion rates | Conversion Rate 46.1063
Maturity date, Stated Mar. 15, 2026
v3.25.0.1
Long-Term Debt - Summary of Financial Information Relating to Exchangeable Senior Notes (Parenthetical) (Detail)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
USD ($)
June 4, 2024 [Member]  
Debt Instrument [Line Items]  
Unpaid principal balance $ 16,500
Exchangeable Senior Notes [Member]  
Debt Instrument [Line Items]  
Principal amount $ 1,000
v3.25.0.1
Long-Term Debt - Summary of Financial Information Relating to Unsecured Senior Notes (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2030
Dec. 31, 2029
Dec. 31, 2028
Dec. 31, 2027
Dec. 31, 2026
Dec. 31, 2025
Carrying value:                  
Exchangeable senior notes $ 605,860 $ 600,458              
Convertible Debt [Member]                  
Carrying value:                  
Unamortized debt issuance costs (9,140) (8,042)              
Convertible Debt [Member] | Nonaffiliates [Member]                  
Short Term Debt [Line Items]                  
Average balance $ 704,279 $ 561,877 $ 541,233            
Weighted average interest rate 6.24% 5.65% 5.64%            
Interest expense $ 48,000 $ 34,969 $ 33,368            
Exchangeable Senior Notes and 2028 Senior Notes [Member]                  
Carrying value:                  
Unpaid principal balance $ 615,000 $ 608,500   $ 0 $ 216,500 $ 53,500 $ 0 $ 345,000 $ 0
v3.25.0.1
Long-Term Debt - Summary of Financial Information Relating to Unsecured Senior Notes (Parenthetical) (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Short Term Debt [Line Items]      
Amortization (accrual) of debt issuance costs (premiums) $ 23,095 $ 15,141 $ 16,563
Exchangeable Notes [Member]      
Short Term Debt [Line Items]      
Conversion options $ 4,100 $ 3,200 $ 2,800
v3.25.0.1
Long-Term Debt - Summary of Financial Information Relating to Asset-Backed Financing of a VIE at Fair Value (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2030
Dec. 31, 2029
Dec. 31, 2028
Dec. 31, 2027
Dec. 31, 2026
Dec. 31, 2025
Short Term Debt [Line Items]                  
Asset-backed financing of variable interest entities at fair value $ 2,040,375 $ 1,336,731              
Unpaid principal balance 2,269,742     $ 2,269,742 $ 0 $ 0 $ 0 $ 0 $ 0
Variable Interest Entities [Member]                  
Short Term Debt [Line Items]                  
Asset-backed financing of variable interest entities at fair value 2,040,375 1,336,731              
Asset-backed Securities | Variable Interest Entities [Member]                  
Short Term Debt [Line Items]                  
Asset-backed financing of variable interest entities at fair value 2,040,375 1,336,731              
Unpaid principal balance 2,269,742 1,590,003              
Asset-backed Securities | Variable Interest Entities [Member] | Asset Backed Secured Financing Liability Fair Value                  
Short Term Debt [Line Items]                  
Average balance 1,612,065 1,354,803 $ 1,512,590            
Total interest expense $ 55,763 $ 49,988 $ 53,570            
Weighted average interest rate 3.23% 3.73% 3.42%            
Weighted average interest rate 3.22% 3.22%              
v3.25.0.1
Long-Term Debt - Summary of Financial Information Relating to Asset-Backed Financing of a VIE at Fair Value(Parenthetical) (Detail) - USD ($)
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Debt Instrument [Line Items]      
Amortization (accrual) of debt issuance costs (premiums) $ 23,095,000 $ 15,141,000 $ 16,563,000
Variable Interest Entities [Member] | Asset-backed Securities | Asset Backed Secured Financing Liability Fair Value      
Debt Instrument [Line Items]      
Amortization (accrual) of debt issuance costs (premiums) $ 3,700,000 $ (496,000) $ 1,800,000
v3.25.0.1
Long-Term Debt - Schedule of Contractual Maturities on Long Term Debt Obligations (Detail) - USD ($)
$ in Thousands
Dec. 31, 2030
Dec. 31, 2029
Dec. 31, 2028
Dec. 31, 2027
Dec. 31, 2026
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Debt Instrument [Line Items]                
Notes payable secured by credit risk transfer and mortgage servicing assets $ 0 $ 0 $ 521,631 $ 869,123 $ 1,503,486 $ 44,575 $ 2,938,815  
Asset-backed financings at fair value 2,269,742 0 0 0 0 0 2,269,742  
Interest-only security payable at fair value 34,222 0 0 0 0 0 34,222 $ 32,667
Exchangeable Senior Notes and 2028 Senior Notes [Member]                
Debt Instrument [Line Items]                
Unsecured senior notes 0 216,500 53,500 0 345,000 0 615,000 $ 608,500
Total $ 2,303,964 $ 216,500 $ 575,131 $ 869,123 $ 1,848,486 $ 44,575 $ 5,857,779  
v3.25.0.1
Liability for Losses under Representations and Warranties - Summary of Company's Liability for Losses under Representations and Warranties (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Mortgage Banking [Abstract]      
Balance, beginning of year $ 26,143 $ 39,471 $ 40,249
Provision for losses:      
Pursuant to loan sales 1,246 2,449 4,442
Reduction in liability due to change in estimate (20,269) (15,228) (4,227)
Losses incurred (234) (549) (993)
Balance, end of year 6,886 26,143 39,471
UPB of loans subject to representations and warranties at end of year $ 222,063,618 $ 227,456,712 $ 228,339,312
v3.25.0.1
Commitments and Contingencies - Company's Outstanding Contractual Commitments (Detail)
$ in Thousands
Dec. 31, 2024
USD ($)
Commitments to purchase mortgage loans:  
Commitments to purchase loans acquired for sale $ 1,166,566
v3.25.0.1
Shareholders' Equity - Summary of Preferred Shares of Beneficial Interest (Detail) - USD ($)
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Class Of Stock [Line Items]      
Number of shares 22,400,000 22,400,000  
Liquidation preference $ 560,000,000 $ 560,000,000  
Issuance discount 18,518,000    
Carrying value $ 541,482,000 $ 541,482,000  
8.125% Series A Preferred Stock [Member]      
Class Of Stock [Line Items]      
Number of shares 4,600,000    
Liquidation preference $ 115,000,000    
Issuance discount 3,828,000    
Carrying value $ 111,172,000    
Dividends per share $ 2.03 $ 2.03 $ 2.03
8.00% Series B Preferred Stock [Member]      
Class Of Stock [Line Items]      
Number of shares 7,800,000    
Liquidation preference $ 195,000,000    
Issuance discount 6,465,000    
Carrying value $ 188,535,000    
Dividends per share $ 2 2 2
6.75% Series C Preferred Stock [Member]      
Class Of Stock [Line Items]      
Number of shares 10,000,000    
Liquidation preference $ 250,000,000    
Issuance discount 8,225,000    
Carrying value $ 241,775,000    
Dividends per share $ 1.68 $ 1.68 $ 1.68
v3.25.0.1
Shareholders' Equity - Summary of Preferred Shares of Beneficial Interest (Parenthetical) (Detail) - $ / shares
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Class Of Stock [Line Items]    
Preferred stock, par value $ 0.01 $ 0.01
8.125% Series A Preferred Stock [Member]    
Class Of Stock [Line Items]    
Cumulative dividend, beneficial interest rate 8.125%  
Sale of Stock, Transaction Date Mar. 31, 2017  
Preferred stock, par value $ 0.01  
8.00% Series B Preferred Stock [Member]    
Class Of Stock [Line Items]    
Cumulative dividend, beneficial interest rate 8.00%  
Sale of Stock, Transaction Date Jul. 31, 2017  
Preferred stock, par value $ 0.01  
6.75% Series C Preferred Stock [Member]    
Class Of Stock [Line Items]    
Cumulative dividend, beneficial interest rate 6.75%  
Sale of Stock, Transaction Date Aug. 31, 2021  
Preferred stock, par value $ 0.01  
v3.25.0.1
Shareholders' Equity - Additional Information (Detail) - USD ($)
 12 Months Ended
Dec. 31, 2024
Jun. 14, 2024
Schedule Of Capitalization Equity [Line Items]    
Common stock shares repurchase authorized amount before transaction fees $ 500,000,000  
Equity Distribution Agreement [Member]    
Schedule Of Capitalization Equity [Line Items]    
Maximum aggregate offering price   $ 200,000,000
8.125% Series A Preferred Stock [Member]    
Schedule Of Capitalization Equity [Line Items]    
Cumulative dividend, beneficial interest rate 8.125%  
8.00% Series B Preferred Stock [Member]    
Schedule Of Capitalization Equity [Line Items]    
Cumulative dividend, beneficial interest rate 8.00%  
6.75% Series C Preferred Stock [Member]    
Schedule Of Capitalization Equity [Line Items]    
Cumulative dividend, beneficial interest rate 6.75%  
8.125% Series A, 8.00% Series B, 6.75% Series C Preferred Stock [Member]    
Schedule Of Capitalization Equity [Line Items]    
Preferred stock redemption price per share $ 25  
Preferred stock redemption share 0  
v3.25.0.1
Shareholders' Equity - Summary of Common Share Repurchase Activity (Detail) - USD ($)
shares in Thousands, $ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Equity [Abstract]      
Common shares repurchased 0 2,411 6,094
Cumulative shares repurchased 29,102    
Cost of common shares repurchased $ 0 $ 28,490 $ 87,992
Cumulative cost of shares repurchased $ 427,229    
v3.25.0.1
Shareholders' Equity - Summary of Common Share Repurchase Activity (Parenthetical) (Details)
 12 Months Ended
Dec. 31, 2024
USD ($)
Common Stock [Member] | Commission Amount  
Schedule Of Capitalization Equity [Line Items]  
Transaction fees $ 582,000
v3.25.0.1
Net Gains on Loans Acquired for Sale - Summary of Net Gains on Mortgage Loans Acquired for Sale (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Non-cash gains:      
Receipt of MSRs in mortgage loan sale transactions $ (219,001) $ (292,527) $ (670,343)
Provision for losses relating to representations and warranties provided in loan sales:      
Pursuant to loans sales (1,246) (2,449) (4,442)
Changes in fair value of loans and derivatives      
Net cash of gain on mortgage loans acquired for sale 15,516 17,439 (300,478)
Net gains on loans acquired for sale 73,124 39,857 25,692
PennyMac Financial Services, Inc. [Member]      
Changes in fair value of loans and derivatives      
Net gains on loans acquired for sale 8,069 7,162 4,968
Nonaffiliates [Member]      
Cash losses:      
Sales of loans (198,613) (278,128) (1,196,384)
Hedging activities (45,445) 62,081 596,295
Cash gain, net of effects of cash hedging, on sale of mortgage loans acquired for sale 71,089 (56,564) (49,315)
Non-cash gains:      
Receipt of MSRs in mortgage loan sale transactions 219,001 292,527 670,343
Provision for losses relating to representations and warranties provided in loan sales:      
Pursuant to loans sales (1,246) (2,449) (4,442)
Reduction of liability due to change in estimate 20,269 15,228 4,227
Provision for losses relating to representations and warranties 19,023 12,779 (215)
Changes in fair value of loans and derivatives      
Interest rate lock commitments (7,089) 8,010 (2,928)
Loans 12,837 (7,129) (4,057)
Hedging derivatives 65,341 (57,445) (42,330)
Total non cash portion of gain on mortgage loans acquired for sale (244,058) (216,047) (600,089)
Net cash of gain on mortgage loans acquired for sale 309,113 248,742 620,813
Net gains on loans acquired for sale $ 65,055 $ 32,695 $ 20,724
v3.25.0.1
Net Gains (Losses) on Investments and Financings - Summary of Net Gains (Losses) on Investments and Financings (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Schedule Of Gain Loss On Investments Including Marketable Securities And Investments Held At Cost Income Statement Reported Amounts Summary [Line Items]      
Mortgage-backed securities $ (80,838) $ 74,984 $ (576,758)
Loans at fair value 15,516 17,439 (300,478)
CRT arrangements 113,670 182,555 (65,137)
Asset-backed financings (7,396) (13,678) 283,586
Hedging derivatives 20,098 (83,201) 0
Net gains (losses) on investments and financings $ 61,050 $ 178,099 $ (658,787)
v3.25.0.1
Net Interest Expense - Summary of Net Interest Expense (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Interest income:      
Cash and short-term investments $ 29,323 $ 25,046 $ 6,912
Mortgage-backed securities 237,758 248,713 133,640
Loans acquired for sale at fair value 83,326 93,988 103,300
Loans at fair value 58,715 56,874 59,482
Deposits securing CRT arrangements 59,304 62,713 21,324
Placement fees relating to custodial funds 163,891 149,484 57,961
Other 2,946 3,089 1,175
Interest income 635,263 639,907 383,794
Interest expense:      
Assets sold under agreements to repurchase 331,800 378,367 165,436
Mortgage loan participation purchase and sale agreements 1,292 1,365 1,023
Notes payable secured by credit risk transfer and mortgage servicing assets 261,008 257,601 137,021
Asset-backed financings at fair value 55,763 49,988 53,570
Interest shortfall on repayments of loans serviced for Agency securitizations 7,144 5,477 15,806
Interest on loan impound deposits 7,099 6,353 4,196
Other 2,553 1,848 0
Interest expense, total 714,659 735,968 410,420
Net interest expense (79,396) (96,061) (26,626)
Unsecured Senior Notes [Member]      
Interest expense:      
Total interest expense $ 48,000 $ 34,969 $ 33,368
v3.25.0.1
Share-Based Compensation - Additional Information (Detail) - Restricted Share Units [Member]
 12 Months Ended
Dec. 31, 2024
Minimum [Member]  
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]  
Vesting period 1 year
Maximum [Member]  
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]  
Vesting period 3 years
v3.25.0.1
Share-Based Compensation - Summary of Share-Based Compensation Activity (Detail) - USD ($)
shares in Thousands, $ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]      
Total share units granted 322 338 285
Total grant date value of share units $ 4,612 $ 4,300 $ 4,451
Total share units vested 367 188 120
Total share units forfeiture 74 6 13
Compensation expense relating to share-based grants $ 3,479 $ 5,205 $ 4,310
Restricted Shares Units [Member]      
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]      
Total share units granted 182 172 134
Total grant date value of share units $ 2,605 $ 2,212 $ 2,101
Total share units vested 164 140 79
Total share units forfeiture 33 6 0
Performance Shares Units [Member]      
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]      
Total share units granted 140 166 151
Total grant date value of share units $ 2,007 $ 2,088 $ 2,350
Total share units vested 203 48 41
Total share units forfeiture 41 0 13
v3.25.0.1
Share-Based Compensation - Summary of Share-Based Compensation Activity (Parenthetical) (Detail) - Performance Shares Units [Member]
 12 Months Ended
Dec. 31, 2024
shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]  
Share vested due to exceeding performance goal 203,110
Vesting percentage 140.00%
v3.25.0.1
Share-Based Compensation - Summary of Restricted Share Units and Performance Share Units Expected to Vest (Detail)
shares in Thousands
 12 Months Ended
Dec. 31, 2024
$ / shares
shares
Restricted Share Units [Member]  
Shares expected to vest:  
Number of units (in thousands) | shares 235
Grant date average fair value per unit | $ / shares $ 14.17
Average remaining vesting (in months) 9 months
Performance Share Units [Member]  
Shares expected to vest:  
Number of units (in thousands) | shares 214
Grant date average fair value per unit | $ / shares $ 14.13
Average remaining vesting (in months) 8 months
v3.25.0.1
Income Taxes - Additional Information (Detail) - USD ($)
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Income Tax [Line Items]      
Provision for (benefit from) income taxes (12.90%) 18.30% 216.20%
(Benefit from) provision for income taxes $ 142,648,000 $ 244,395,000 $ 63,087,000
(Benefit from) provision for income taxes $ (18,336,000) 44,741,000 $ 136,374,000
Percentage of deduction from taxable income 20.00%    
Deferred tax assets, valuation allowance $ 0 0  
Federal net operating loss carryforwards $ 384,300,000 $ 454,000,000  
Net operating loss carryforwards, maximum percentage of taxable income 80.00%    
Net operating loss carryforwards, expiration year 2033 2036  
Unrecognized tax benefits $ 0 $ 0  
Subsidiaries [Member]      
Income Tax [Line Items]      
Distribution 50,000,000    
Dividend income 50,000,000    
TRS [Member]      
Income Tax [Line Items]      
(Benefit from) provision for income taxes (57,900,000) 155,000,000  
(Benefit from) provision for income taxes (18,600,000) $ 41,900,000  
Deferred tax assets, valuation allowance $ 0    
v3.25.0.1
Income Taxes - Schedule of Tax Characterization of Distributions (Detail)
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Common Shares [Member]      
Income Tax [Line Items]      
Ordinary income 100.00% 19.00% 86.00%
Qualified dividend income 27.00% 19.00% 0.00%
Long term capital gain 0.00% 0.00% 0.00%
Return of capital 0.00% 81.00% 14.00%
Sec. 199A dividend 73.00% 0.00% 86.00%
Preferred Shares (Classes A, B and C) [Member]      
Income Tax [Line Items]      
Ordinary income 100.00% 100.00% 100.00%
Qualified dividend income 27.00% 100.00% 0.00%
Long term capital gain 0.00% 0.00% 0.00%
Return of capital 0.00% 0.00% 0.00%
Sec. 199A dividend 73.00% 0.00% 100.00%
v3.25.0.1
Income Taxes - Summary of Company's (Benefit from) Provision for Income Taxes (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Current expense (benefit):      
Federal $ 1,051 $ 6 $ (5)
State 0 0 0
Total current expense (benefit) 1,051 6 (5)
Deferred (benefit) expense:      
Federal (16,898) 32,391 113,894
State (2,489) 12,344 22,485
Total deferred (benefit) expense (19,387) 44,735 136,379
Total (benefit from) provision for income taxes $ (18,336) $ 44,741 $ 136,374
v3.25.0.1
Income Taxes - Reconciliation of Company's (Benefit from) Provision for Income Taxes (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Income Tax Disclosure [Abstract]      
Federal income tax expense at statutory tax rate, Amount $ 29,956 $ 51,323 $ 13,248
Effect of non-taxable REIT (income) loss, Amount (42,110) (18,778) 136,465
State income taxes, net of federal benefit, Amount (6,399) 9,327 27,573
Convertible debt permanent adjustment 217 2,863 (6,786)
Valuation allowance, Amount 0 0 (34,121)
Other, Amount 0 6 (5)
Total (benefit from) provision for income taxes $ (18,336) $ 44,741 $ 136,374
Federal income tax expense at statutory tax rate, Rate 21.00% 21.00% 21.00%
Effect of non-taxable REIT (income) loss, Rate (29.50%) (7.70%) 216.30%
State income taxes, net of federal benefit, Rate (4.60%) 3.80% 43.70%
Convertible debt permanent adjustment 0.20% 1.20% (10.80%)
Valuation allowance, Rate 0.00% 0.00% (54.00%)
Other, Rate 0.00% 0.00% 0.00%
(Benefit from) provision for income taxes (12.90%) 18.30% 216.20%
v3.25.0.1
Income Taxes - Components of (Benefit from) Provision for Deferred Income Taxes (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Income Tax Disclosure [Abstract]      
Mortgage servicing rights $ (42,893) $ 22,924 $ 157,559
Net operating loss carryforward 16,801 3,199 4,075
Liability for losses under representations and warranties 4,760 3,108 269
Excess interest expense disallowance 2,675 15,114 9,134
Real estate valuation loss (31) 107 66
Other (699) 283 (603)
Valuation allowance, Amount 0 0 (34,121)
Total deferred (benefit) expense $ (19,387) $ 44,735 $ 136,379
v3.25.0.1
Income Taxes - Components of Income Taxes Payable (Detail) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Income Tax Disclosure [Abstract]    
Taxes currently (receivable) $ (15,085) $ (8,330)
Deferred income taxes payable 178,946 198,333
Income taxes payable $ 163,861 $ 190,003
v3.25.0.1
Income Taxes - Summary of Deferred Income Tax Assets and Liabilities (Detail) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Deferred income tax assets:    
Net operating loss carryforward $ 101,853 $ 118,655
Excess interest expense disallowance 39,829 42,504
Liability for losses under representations and warranties 1,684 6,444
REO valuation loss 102 71
Other 598 657
Gross deferred tax assets 144,066 168,331
Valuation allowance 0 0
Deferred tax assets after valuation allowance 144,066 168,331
Deferred income tax liabilities:    
Mortgage servicing rights 322,023 364,917
Other 989 1,747
Gross deferred tax liabilities 323,012 366,664
Net deferred income tax liability $ 178,946 $ 198,333
v3.25.0.1
Earnings Per Common Share - Summary of Basic and Diluted Earnings per Share (Detail) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Earnings Per Share [Abstract]      
Net Income (Loss) $ 160,984 $ 199,654 $ (73,287)
Dividends on preferred shares (41,819) (41,819) (41,818)
Effect of participating securities‒share-based compensation awards (417) (454) (408)
Net income (loss) attributable to common shareholders 118,748 157,381 (115,513)
Interest on Exchangeable Notes, net of income taxes 0 25,055 0
Loss attributable to participating securities 0 (44)  
Diluted net income (loss) attributable to common shareholders $ 118,748 $ 182,392 $ (115,513)
Weighted average basic shares outstanding 86,815 87,372 91,434
Shares issuable pursuant to exchange of the Exchangeable Notes 0 24,328 0
Diluted weighted average shares outstanding 86,815 111,700 91,434
Basic earnings (loss) per share $ 1.37 $ 1.8 $ (1.26)
Diluted earnings (loss) per share $ 1.37 $ 1.63 $ (1.26)
v3.25.0.1
Earnings Per Common Share - Summary of Potentially Dilutive Shares Excluded from Computation of Diluted Earnings Per Share (Detail) - shares
shares in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Share-based Compensation Plan [Member]      
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]      
Potentially dilutive stock excluded from the diluted earnings per share 204 180 136
Shares Issuable Pursuant to Exchange of Exchangeable Notes [Member]      
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]      
Potentially dilutive stock excluded from the diluted earnings per share 0 0 24,328
v3.25.0.1
Segments - Additional Information (Detail)
 12 Months Ended
Dec. 31, 2024
Segment
Segment Reporting [Abstract]  
Number of business segments 3
v3.25.0.1
Segments - Financial Highlights by Segment (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Net investment income:      
Net loan servicing fees $ 264,540 $ 288,608 $ 909,551
Net gains on loans acquired for sale 73,124 39,857 25,692
Net gains (losses) on investments and financings      
Mortgage-backed securities (60,740) (8,217) (576,758)
Loans at fair value 8,120 3,761 (16,892)
CRT arrangements 113,670 182,555 (65,137)
Net gains (losses) on investments and financings 61,050 178,099 (658,787)
Net interest expense:      
Interest income 635,263 639,907 383,794
Interest expense 714,659 735,968 410,420
Net interest expense (79,396) (96,061) (26,626)
Other 14,876 18,517 53,941
Net investment income 334,194 429,020 303,771
Expenses:      
Professional services 12,779 7,621 9,569
Loan collection and liquidation 6,834 4,562 5,396
Compensation 5,608 7,106 5,941
Safekeeping 4,403 3,766 8,201
Loan origination 3,328 4,602 12,036
Other 20,428 19,033 18,570
Total expenses 191,546 184,625 240,684
Income before (benefit from) provision for income taxes 142,648 244,395 63,087
Total assets at end of year 14,408,706 13,113,887 13,921,564
PennyMac Financial Services, Inc. [Member]      
Net investment income:      
Net gains on loans acquired for sale 8,069 7,162 4,968
Expenses:      
Loan servicing fees 83,252 81,346 81,915
Management fees 28,623 28,762 31,065
Loan fulfillment fees 26,291 27,827 67,991
Reportable Segment [Member]      
Net investment income:      
Net loan servicing fees 264,540 288,608 909,551
Net gains on loans acquired for sale 73,124 39,857 25,692
Net gains (losses) on investments and financings      
Mortgage-backed securities (60,740) (8,217) (576,758)
Loans at fair value 8,120 3,761 (16,892)
CRT arrangements 113,670 182,555 (65,137)
Net gains (losses) on investments and financings 61,050 178,099 (658,787)
Net interest expense:      
Interest income 622,834 628,750 380,402
Interest expense 709,950 732,027 408,220
Net interest expense (87,116) (103,277) (27,818)
Other 14,876 18,517 53,394
Net investment income 326,474 421,804 302,032
Expenses:      
Professional services 3,508 0 1,987
Loan collection and liquidation 6,834 4,562 5,396
Compensation 0 0 0
Safekeeping 4,403 3,766 8,201
Loan origination 3,328 4,601 12,036
Other 3,177 1,520 1,713
Total expenses 130,793 123,622 179,239
Income before (benefit from) provision for income taxes 195,681 298,182 122,793
Total assets at end of year 13,967,433 12,703,106 13,543,395
Reportable Segment [Member] | PennyMac Financial Services, Inc. [Member]      
Expenses:      
Loan servicing fees 83,252 81,346 81,915
Management fees 0 0 0
Loan fulfillment fees 26,291 27,827 67,991
Corporate [Member]      
Net investment income:      
Net loan servicing fees 0 0 0
Net gains on loans acquired for sale 0 0 0
Net gains (losses) on investments and financings      
Mortgage-backed securities 0 0 0
Loans at fair value 0 0 0
CRT arrangements 0 0 0
Net gains (losses) on investments and financings 0 0 0
Net interest expense:      
Interest income 12,429 11,157 3,392
Interest expense 4,709 3,941 2,200
Net interest expense 7,720 7,216 1,192
Other 0 0 547
Net investment income 7,720 7,216 1,739
Expenses:      
Professional services 9,271 7,621 7,582
Loan collection and liquidation 0 0 0
Compensation 5,608 7,106 5,941
Safekeeping 0 0 0
Loan origination 0 1 0
Other 17,251 17,513 16,857
Total expenses 60,753 61,003 61,445
Income before (benefit from) provision for income taxes (53,033) (53,787) (59,706)
Total assets at end of year 441,273 410,781 378,169
Corporate [Member] | PennyMac Financial Services, Inc. [Member]      
Expenses:      
Loan servicing fees 0 0 0
Management fees 28,623 28,762 31,065
Loan fulfillment fees 0 0 0
Credit Sensitive Strategies [Member] | Reportable Segment [Member]      
Net investment income:      
Net loan servicing fees 0 0 0
Net gains on loans acquired for sale 0 0 5
Net gains (losses) on investments and financings      
Mortgage-backed securities 6,964 35,625 (6,774)
Loans at fair value 3,726 2,597 (21,828)
CRT arrangements 113,670 182,555 (65,137)
Net gains (losses) on investments and financings 124,360 220,777 (93,739)
Net interest expense:      
Interest income 89,635 98,996 38,810
Interest expense 89,883 86,963 52,385
Net interest expense (248) 12,033 (13,575)
Other (437) (186) 537
Net investment income 123,675 232,624 (106,772)
Expenses:      
Professional services 0 0 0
Loan collection and liquidation 376 1,743 3,863
Compensation 0 0 0
Safekeeping 0 0 0
Loan origination 0 0 0
Other 108 411 1,712
Total expenses 563 2,320 5,794
Income before (benefit from) provision for income taxes 123,112 230,304 (112,566)
Total assets at end of year 1,474,751 1,632,431 1,614,977
Credit Sensitive Strategies [Member] | Reportable Segment [Member] | PennyMac Financial Services, Inc. [Member]      
Expenses:      
Loan servicing fees 79 166 219
Management fees 0 0 0
Loan fulfillment fees   0 0
Interest Rate Sensitive Strategies [Member] | Reportable Segment [Member]      
Net investment income:      
Net loan servicing fees 264,540 288,608 909,551
Net gains on loans acquired for sale 0 0 0
Net gains (losses) on investments and financings      
Mortgage-backed securities (67,704) (43,842) (569,984)
Loans at fair value 4,394 1,164 4,936
CRT arrangements 0 0 0
Net gains (losses) on investments and financings (63,310) (42,678) (565,048)
Net interest expense:      
Interest income 450,070 436,021 238,527
Interest expense 538,995 549,010 285,304
Net interest expense (88,925) (112,989) (46,777)
Other 0 0 0
Net investment income 112,305 132,941 297,726
Expenses:      
Professional services 0 0 0
Loan collection and liquidation 6,458 2,819 1,533
Compensation 0 0 0
Safekeeping 4,017 3,240 6,695
Loan origination 0 0 0
Other 3,069 1,109 0
Total expenses 96,717 88,348 89,924
Income before (benefit from) provision for income taxes 15,588 44,593 207,802
Total assets at end of year 10,322,044 10,281,904 9,991,621
Interest Rate Sensitive Strategies [Member] | Reportable Segment [Member] | PennyMac Financial Services, Inc. [Member]      
Expenses:      
Loan servicing fees 83,173 81,180 81,696
Management fees 0 0 0
Loan fulfillment fees 0 0 0
Correspondent Production [Member] | Reportable Segment [Member]      
Net investment income:      
Net loan servicing fees 0 0 0
Net gains on loans acquired for sale 73,124 39,857 25,687
Net gains (losses) on investments and financings      
Mortgage-backed securities 0 0 0
Loans at fair value 0 0 0
CRT arrangements 0 0 0
Net gains (losses) on investments and financings 0 0 0
Net interest expense:      
Interest income 83,129 93,733 103,065
Interest expense 81,072 96,054 70,531
Net interest expense 2,057 (2,321) 32,534
Other 15,313 18,703 52,857
Net investment income 90,494 56,239 111,078
Expenses:      
Professional services 3,508 0 1,987
Loan collection and liquidation 0 0 0
Compensation 0 0 0
Safekeeping 386 526 1,506
Loan origination 3,328 4,601 12,036
Other 0 0 1
Total expenses 33,513 32,954 83,521
Income before (benefit from) provision for income taxes 56,981 23,285 27,557
Total assets at end of year 2,170,638 788,771 1,936,797
Correspondent Production [Member] | Reportable Segment [Member] | PennyMac Financial Services, Inc. [Member]      
Expenses:      
Loan servicing fees 0 0 0
Management fees 0 0 0
Loan fulfillment fees $ 26,291 $ 27,827 $ 67,991
v3.25.0.1
Regulatory Capital and Liquidity Requirements - Summary of Capital and Liquidity Amounts and Requirements by Agencies (Detail)
$ in Thousands
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Capital Requirements By Agencies [Line Items]    
Net worth, Actual [1] $ 876,324 $ 874,628
Net worth, Required [1] $ 579,383 $ 584,131
Tangible net worth / total assets ratio, Actual [1] 0.12 0.15
Tangible net worth / total assets ratio, Required [1] 0.06 0.06
Liquidity, Actual [1] $ 564,311 $ 450,210
Liquidity, Required [1] $ 215,801 $ 210,691
[1] Calculated in accordance with the Agencies’ requirements.
v3.25.0.1
Parent Company Information - Summary of Financial Covenants that Include a Minimum Tangible Net Worth (Detail)
$ in Thousands
Dec. 31, 2024
USD ($)
PennyMac Operating Partnership, L.P. [Member]  
Compliance with Regulatory Capital Requirements for Mortgage Companies [Line Items]  
Debt covenant requirement $ 1,250,000
Actual balance 2,033,289 [1]
PennyMac Holdings, LLC [Member]  
Compliance with Regulatory Capital Requirements for Mortgage Companies [Line Items]  
Debt covenant requirement 250,000
Actual balance 923,023 [1]
PennyMac Corp. [Member]  
Compliance with Regulatory Capital Requirements for Mortgage Companies [Line Items]  
Debt covenant requirement 300,000
Actual balance 970,410 [1]
PennyMac Mortgage Investment Trust [Member]  
Compliance with Regulatory Capital Requirements for Mortgage Companies [Line Items]  
Debt covenant requirement 1,250,000
Actual balance $ 1,937,098 [1]
[1] Calculated in accordance with the lenders’ requirements.
v3.25.0.1
Parent Company Information - Condensed Balance Sheets (Detail) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Assets        
Cash $ 337,694 $ 281,085    
Short-term investment 103,198 128,338    
Due from affiliates 16,706 7,199    
Other assets 438,221 252,538    
Total assets 14,408,706 13,113,887 $ 13,921,564  
Liabilities        
Unsecured senior notes 605,860 600,458    
Accounts payable and accrued liabilities 139,124 354,989    
Total liabilities 12,470,206 11,156,797    
Total shareholders’ equity 1,938,500 1,957,090 $ 1,962,815 $ 2,367,518
Total liabilities and shareholders’ equity 14,408,706 13,113,887    
PennyMac Financial Services, Inc. [Member]        
Assets        
Due from affiliates 16,015 56    
Liabilities        
Due to affiliates 30,206 29,262    
PennyMac Mortgage Investment Trust [Member]        
Assets        
Cash 845 0    
Short-term investment 0 603    
Investments in subsidiaries 2,265,779 2,257,831    
Due from subsidiaries 608 169    
Other assets 844 846    
Total assets 2,268,076 2,259,504    
Liabilities        
Dividends payable 34,838 34,750    
Capital notes due to subsidiaries 228,280 203,130    
Unsecured senior notes 51,538 51,115    
Accounts payable and accrued liabilities 0 19    
Due to subsidiaries 3,582 1,777    
Total liabilities 318,741 290,791    
Total shareholders’ equity 1,949,335 1,968,713    
Total liabilities and shareholders’ equity 2,268,076 2,259,504    
PennyMac Mortgage Investment Trust [Member] | PennyMac Financial Services, Inc. [Member]        
Assets        
Due from affiliates 0 55    
Liabilities        
Due to affiliates $ 503 $ 0    
v3.25.0.1
Parent Company Information - Condensed Statements of Operations (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Income      
Interest income $ 635,263 $ 639,907 $ 383,794
Other 228 472 1,360
Expenses      
Interest expense 714,659 735,968 410,420
Other 20,428 19,033 18,570
Total expenses 191,546 184,625 240,684
Income before provision for (benefit from) income taxes and distribution in excess of earnings 142,648 244,395 63,087
Provision for (benefit from) income taxes (18,336) 44,741 136,374
Increase in undistributed earnings of subsidiaries (distributions in excess of earnings of subsidiaries) 5,265 32,591 (251,409)
Net Income (Loss) 160,984 199,654 (73,287)
PennyMac Mortgage Investment Trust [Member]      
Income      
Dividends from subsidiaries 180,695 182,043 214,885
Total income 180,858 182,097 214,893
Expenses      
Other 2 13 71
Total expenses 25,928 24,197 14,315
Income before provision for (benefit from) income taxes and distribution in excess of earnings 154,930 157,900 200,578
Provision for (benefit from) income taxes 0 6 (5)
Income before equity in undistributed earnings of subsidiaries 154,930 157,894 200,583
Increase in undistributed earnings of subsidiaries (distributions in excess of earnings of subsidiaries) 5,266 32,591 (251,409)
Net Income (Loss) 160,196 190,485 (50,826)
PennyMac Mortgage Investment Trust [Member] | Nonaffiliates [Member]      
Income      
Interest income 64 0 0
Expenses      
Interest expense 5,018 1,355 0
PennyMac Mortgage Investment Trust [Member] | Affiliates [Member]      
Income      
Interest income 99 54 8
Expenses      
Interest expense $ 20,908 $ 22,829 $ 14,244
v3.25.0.1
Parent Company Information - Condensed Statements of Cash Flows (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Cash flows from operating activities:      
Net Income (Loss) $ 160,984 $ 199,654 $ (73,287)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:      
(Equity in undistributed earnings of subsidiaries) distributions in excess of earnings of subsidiaries (5,265) (32,591) 251,409
Amortization of debt issuance costs 23,095 15,141 16,563
Decrease (increase) in other assets (596,687) (86,086) (189,551)
Increase in accounts payable and accrued liabilities (216,119) 194,059 73,162
Increase in due to affiliates 944 (7,110) (3,719)
Net cash (used in) provided by operating activities (2,702,883) 1,340,173 1,784,471
Cash flows from investing activities:      
Net decrease (increase) in short-term investments 25,140 123,933 (84,272)
Net cash provided by (used in) investing activities 1,360,396 (21,726) (1,867,474)
Cash flows from financing activities:      
Issuance of unsecured senior notes 216,500 53,500 0
Payment of debt issuance costs (31,447) (13,967) (14,170)
Payment of withholding taxes related to share-based compensation (1,846) (567) (522)
Payment of dividends to preferred shareholders (41,819) (41,818) (41,819)
Payment of dividends to common shareholders (139,300) (140,617) (173,546)
Repurchase of Common Shares 0 (28,490) (87,992)
Net cash (used in) provided by financing activities 1,399,096 (1,149,228) 135,886
Net change in cash 56,609 169,219 52,883
Cash at beginning of year 281,085 111,866 58,983
Cash at end of year 337,694 281,085 111,866
Non-cash financing activities:      
Dividends payable 34,838 34,750 35,658
Preferred Shares [Member]      
Cash flows from operating activities:      
Net Income (Loss) 0 0 0
PennyMac Mortgage Investment Trust [Member]      
Cash flows from operating activities:      
Net Income (Loss) 160,196 190,485 (50,826)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:      
(Equity in undistributed earnings of subsidiaries) distributions in excess of earnings of subsidiaries (5,266) (32,591) 251,409
Amortization of debt issuance costs 471 110 0
Decrease in due from subsidiaries 357 638 753
Decrease (increase) in due from affiliates 558 (335) (141)
Decrease (increase) in other assets 2 58 (903)
Increase in accounts payable and accrued liabilities (19) (323) (891)
Increase in due to affiliates 1,805 191 1,342
Net cash (used in) provided by operating activities 158,105 158,233 200,743
Cash flows from investing activities:      
Net decrease (increase) in short-term investments 603 (96) 3,035
Net cash provided by (used in) investing activities 603 (96) 3,035
Cash flows from financing activities:      
Issuance of unsecured senior notes 0 53,500 0
Payment of debt issuance costs (48) (2,495) 0
Net increase in intercompany unsecured note payable 25,150 2,350 100,101
Payment of withholding taxes related to share-based compensation (1,846) (567) (522)
Payment of dividends to preferred shareholders (41,819) (41,818) (41,819)
Payment of dividends to common shareholders (139,300) (140,617) (173,546)
Repurchase of Common Shares 0 (28,490) (87,992)
Net cash (used in) provided by financing activities (157,863) (158,137) (203,778)
Net change in cash 845 0 0
Cash at beginning of year 0 0 0
Cash at end of year 845 0 0
Non-cash investing activities:      
Investment in subsidiary pursuant to share based compensation plan 3,476 5,204 4,309
Non-cash financing activities:      
Contribution of equity to subsidiary pursuant to share based compensation plan 3,476 5,204 4,309
Dividends payable $ 34,838 $ 34,750 $ 35,658
v3.25.0.1
Subsequent Events - Additional Information (Details) - Subsequent Event [Member] - 9.00% Senior Notes Due 2030 [Member]
$ in Millions
Feb. 11, 2025
USD ($)
Subsequent Event [Line Items]  
Aggregate principal amount $ 172.5
Percentage of interest on debt 9.00%
Maturity date of debt instrument Feb. 15, 2030