PENNYMAC MORTGAGE INVESTMENT TRUST, 10-K filed on 2/18/2026
Annual Report
v3.25.4
Document and Entity Information - USD ($)
12 Months Ended
Dec. 31, 2025
Feb. 13, 2026
Jun. 30, 2025
Document And Entity Information [Line Items]      
Document Type 10-K    
Document Annual Report true    
Amendment Flag false    
Document Period End Date Dec. 31, 2025    
Document Fiscal Year Focus 2025    
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   87,016,604  
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     $ 796,813,522
Documents Incorporated by Reference

Documents Incorporated By Reference

 

Document

Parts Into Which Incorporated

Definitive Proxy Statement for 2026 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, 2025 and 2024, the related consolidated statements of income, changes in shareholders’ equity, and cash flows for each of the three years in the period ended December 31, 2025, 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, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025, 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, 2025, 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 18, 2026, 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, $0.01 Par Value    
Trading Symbol PMT/PRC    
Security Exchange Name NYSE    
8.50% Senior Notes Due 2028 [Member]      
Document And Entity Information [Line Items]      
Title of 12(b) Security 8.50% Senior Notes Due September 2028    
Trading Symbol PMTU    
Security Exchange Name NYSE    
9.00% Senior Notes Due 2030 [Member]      
Document And Entity Information [Line Items]      
Title of 12(b) Security 9.00% Senior Notes Due February 2030    
Trading Symbol PMTV    
Security Exchange Name NYSE    
9.00% Senior Notes Due 2030 [Member]      
Document And Entity Information [Line Items]      
Title of 12(b) Security 9.00% Senior Notes Due June 2030    
Trading Symbol PMTW    
Security Exchange Name NYSE    
v3.25.4
Consolidated Balance Sheets - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
ASSETS    
Cash $ 271,970 $ 337,694
Short-term investments at fair value 190,518 103,198
Mortgage-backed securities at fair value pledged to creditors 4,452,859 4,063,706
Loans held for sale at fair value ($2,676,700 and $2,087,615 pledged to creditors, respectively) 2,699,398 2,116,318
Loans held for investment at fair value ($8,530,939 and $2,191,869 pledged to creditors, respectively) 8,532,644 2,193,575
Deposits securing credit risk transfer arrangements pledged to creditors 1,009,334 1,110,708
Mortgage servicing rights at fair value ($3,582,211 and $3,807,065 pledged to creditors, respectively) 3,644,702 3,867,394
Servicing advances ($78,430 and $89,396 pledged to creditors, respectively) 96,830 105,037
Due from PennyMac Financial Services, Inc. 25,458 16,706
Other ($527 pledged to creditors as of December 31, 2024) 373,584 438,221
Total assets 21,346,882 14,408,706
LIABILITIES    
Assets sold under agreements to repurchase 8,018,601 6,500,938
Mortgage loan participation purchase and sale agreements 0 11,593
Notes payable secured by credit risk transfer and mortgage servicing assets 2,258,128 2,929,790
Unsecured senior notes 1,028,300 605,860
Interest-only security payable at fair value 37,650 34,222
Asset-backed financing of variable interest entities at fair value 7,789,303 2,040,375
Derivative and credit risk transfer strip liabilities with nonaffiliates at fair value 6,932 7,351
Accounts payable and accrued liabilities 168,498 139,124
Income taxes payable 127,476 163,861
Liability for losses under representations and warranties 5,284 6,886
Total liabilities 19,459,551 12,470,206
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, $0.01 par value-authorized, 500,000,000 issued and outstanding, 87,016,604 and 86,860,960 shares, respectively 870 869
Additional paid-in capital 1,927,804 1,925,067
Accumulated deficit (582,825) (528,918)
Total shareholders’ equity 1,887,331 1,938,500
Total liabilities and shareholders’ equity 21,346,882 14,408,706
Nonaffiliates [Member]    
ASSETS    
Derivative assets 44,551 96,251
Derivative assets 49,696 56,840
LIABILITIES    
Derivative and credit risk transfer strip liabilities with nonaffiliates at fair value 6,932 7,351
Derivative liabilities 933 3,291
Variable Interest Entities [Member]    
ASSETS    
Loans held for investment at fair value ($8,530,939 and $2,191,869 pledged to creditors, respectively) 8,530,939 2,191,709
Derivative assets 32,659 29,377
Deposits securing credit risk transfer arrangements pledged to creditors 1,009,334 1,110,708
Other interest receivable 35,675 6,382
Total assets 9,608,607 3,338,176
LIABILITIES    
Interest-only security payable at fair value 37,650 34,222
Asset-backed financing of variable interest entities at fair value 7,789,303 2,040,375
Derivative and credit risk transfer strip liabilities at fair value 5,999 4,060
Accounts payable and accrued liabilities interest payable 35,675 6,382
Total liabilities 7,868,627 2,085,039
PennyMac Financial Services, Inc. [Member]    
ASSETS    
Derivative assets 6,389 0
Derivative assets 6,247 0
Due from PennyMac Financial Services, Inc. 19,100 16,015
LIABILITIES    
Derivative liabilities 2,257 0
Due to PennyMac Financial Services, Inc. $ 17,122 $ 30,206
v3.25.4
Consolidated Balance Sheets (Parenthetical) - USD ($)
Dec. 31, 2025
Dec. 31, 2024
Loans held for sale at fair value, pledged to creditors $ 2,676,700,000 $ 2,087,615,000
Loans held for investment at fair value, pledged to creditors 8,530,939,000 2,191,869,000
Mortgage servicing rights pledged to creditors 3,582,211,000 3,807,065,000
Servicing Advances pledged to creditors $ 78,430,000 89,396,000
Other, pledged to creditors   $ 527,000
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 87,016,604 86,860,960
Common shares, outstanding 87,016,604 86,860,960
Nonaffiliates [Member]    
Derivative assets, pledged to creditors $ 32,659,000 $ 29,377,000
v3.25.4
Consolidated Statements of Income - USD ($)
shares in Thousands, $ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Net investment income      
Contractually specified $ 608,025 $ 644,642 $ 659,438
Other 17,430 14,722 17,008
Net mortgage loan servicing fees 625,455 659,364 676,446
Change in fair value of mortgage servicing rights (413,709) (170,409) (296,847)
Mortgage servicing rights hedging results (172,931) (226,608) (92,775)
Net servicing fees from non-affiliates 48,932 264,540 288,608
Net gains on loans held for sale at fair value: 52,194 73,124 39,857
Loan origination fees 12,525 15,085 18,231
Net gains on investments and financings 213,113 61,050 178,099
Interest income 850,912 635,263 639,907
Interest expense 870,394 714,659 735,968
Net interest expense (19,482) (79,396) (96,061)
Results of real estate acquired in settlement of loans (64) (437) (186)
Other 243 228 472
Net investment income 307,461 334,194 429,020
Expenses      
Professional services 37,774 12,779 7,621
Compensation 11,886 5,608 7,106
Loan collection and liquidation 8,285 6,834 4,562
Safekeeping 4,630 4,403 3,766
Loan origination 2,278 3,328 4,602
Other 12,905 20,428 19,033
Total expenses 213,643 191,546 184,625
Income before (benefit from) provision for income taxes 93,818 142,648 244,395
(Benefit from) provision for income taxes (34,054) (18,336) 44,741
Net Income (Loss) 127,872 160,984 199,654
Dividends on preferred shares of beneficial interest 41,819 41,819 41,819
Net income attributable to common shareholders $ 86,053 $ 119,165 $ 157,835
Earnings per common share      
Basic $ 0.99 $ 1.37 $ 1.8
Diluted $ 0.99 $ 1.37 $ 1.63
Weighted average common shares outstanding      
Basic 86,988 86,815 87,372
Diluted 86,988 86,815 111,700
Nonaffiliates [Member]      
Net investment income      
Net servicing fees from non-affiliates $ 38,815 $ 262,347 $ 286,824
Net gains on loans held for sale at fair value: 47,030 65,055 32,695
PennyMac Financial Services, Inc. [Member]      
Net investment income      
From PennyMac Financial Services, Inc. 10,117 2,193 1,784
Net gains on loans held for sale at fair value: 5,164 8,069 7,162
Expenses      
Loan servicing fees 84,432 83,252 81,347
Management fees 27,649 28,623 28,762
Loan fulfillment fees $ 23,804 $ 26,291 $ 27,826
v3.25.4
Consolidated Statements of Changes in Shareholders' Equity - USD ($)
$ in Thousands
Total
Preferred Stock
Common Shares [Member]
Additional Paid-in Capital [Member]
Accumulated Deficit [Member]
Balance, Amount at Dec. 31, 2022 $ 1,962,815 $ 541,482 $ 889 $ 1,947,266 $ (526,822)
Balance, Shares at Dec. 31, 2022   22,400,000 88,889,000    
Net income 199,654 $ 0 $ 0 0 199,654
Share-based compensation, Amount 4,638 $ 0 $ 1 4,637 0
Share-based compensation, Shares   0 146,000    
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   0 (2,411,000)    
Balance, Amount at Dec. 31, 2023 1,957,090 $ 541,482 $ 866 1,923,437 (508,695)
Balance, Shares at Dec. 31, 2023   22,400,000 86,624,000    
Net income 160,984 $ 0 $ 0 0 160,984
Share-based compensation, Amount 1,633 $ 0 $ 3 1,630 0
Share-based compensation, Shares   0 237,000    
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, 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   22,400,000 86,861,000    
Net income 127,872 $ 0 $ 0 0 127,872
Share-based compensation, Amount 2,738 $ 0 $ 1 2,737 0
Share-based compensation, Shares   0 156,000    
Dividends:          
Preferred shares dividends (41,819) $ 0 $ 0 0 (41,819)
Common share dividends $ (139,960) 0 0 0 (139,960)
Repurchase of common shares, Shares 0        
Balance, Amount at Dec. 31, 2025 $ 1,887,331 $ 541,482 $ 870 $ 1,927,804 $ (582,825)
Balance, Shares at Dec. 31, 2025   22,400 87,017    
v3.25.4
Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) - $ / shares
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Dividends declared per common share $ 1.6 $ 1.6 $ 1.6
v3.25.4
Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Cash flows from operating activities      
Net income $ 127,872 $ 160,984 $ 199,654
Adjustments to reconcile net income to net cash (used in) provided by operating activities:      
Net gains on investments and financings (213,113) (61,050) (178,099)
Net gains on loans held for sale (52,194) (73,124) (39,857)
Change in fair value of mortgage servicing rights 413,709 170,409 296,847
Mortgage servicing rights hedging results 172,931 226,608 92,775
Accrual of unearned discounts and amortization of purchase premiums on mortgage-backed securities, loans held for investment, and asset-backed financings (31,583) (23,312) (355)
Amortization of debt issuance costs 20,167 23,095 15,141
Results of real estate acquired in settlement of loans 64 437 186
Share-based compensation expense 3,865 3,479 5,205
Purchase of loans held for sale from nonaffiliates (59,554,007) (96,091,114) (87,503,604)
Sale to nonaffiliates and repayment of loans held for sale 10,292,463 12,414,391 15,936,124
Repurchase of loans subject to representations and warranties (25,891) (35,428) (58,755)
Decrease (increase) in servicing advances 8,031 100,884 (8,924)
Repurchase of real estate previously sold as loans acquired for sale 0 0 (456)
Increase in other assets (30,980) (596,687) (86,086)
Increase (decrease) in accounts payable and accrued liabilities 28,781 (216,119) 194,059
(Decrease) increase in due to PennyMac Financial Services, Inc. (13,084) 944 (7,110)
(Decrease) increase in income taxes payable (36,385) (26,142) 38,225
Net cash (used in) provided by operating activities (7,213,231) (2,702,883) 1,340,173
Cash flows from investing activities      
Net (increase) decrease in short-term investments (87,320) 25,140 123,933
Purchase of mortgage-backed securities (942,462) (638,155) (3,172,193)
Sale and repayment of mortgage-backed securities 752,978 1,488,971 2,979,019
Repurchase of loans at fair value 0 0 (119)
Repayment of loans held for investment 652,650 101,651 94,550
Net settlement of derivative financial instruments 3,675 (11,086) 9,700
Distribution from credit risk transfer arrangements 151,540 157,854 180,573
Purchase of mortgage servicing rights 0 (29,263) (14,632)
Transfer of mortgage servicing rights relating to delinquent loans to Agency (876) (561) 472
Sale of real estate acquired in settlement of loans 1,233 1,870 4,668
(Increase) decrease in margin deposits (101,752) 263,975 (227,697)
Net cash provided by (used in) investing activities 429,666 1,360,396 (21,726)
Cash flows from financing activities      
Sale of assets under agreements to repurchase 101,440,467 121,850,449 120,565,014
Repurchase of assets sold under agreements to repurchase (99,926,727) (120,968,841) (121,555,845)
Issuance of mortgage loan participation purchase and sale agreements 665,124 2,246,133 2,146,821
Repayment of mortgage loan participation purchase and sale agreements (676,775) (2,234,482) (2,146,821)
Issuance of notes payable secured by credit risk transfer and mortgage servicing assets 375,000 1,474,986 780,000
Repayment of notes payable secured by credit risk transfer and mortgage servicing assets (1,051,968) (1,453,833) (675,032)
Issuance of unsecured senior notes 427,500 216,500 53,500
Repayment of unsecured senior notes 0 (210,000) 0
Issuance of asset-backed financings of variable interest entities 6,297,154 791,582 0
Repayment of asset-backed financings of variable interest entities (633,681) (98,986) (91,406)
Payment of debt issuance costs (15,940) (31,447) (13,967)
Payment of dividends to preferred shareholders (41,819) (41,819) (41,818)
Payment of dividends to common shareholders (139,367) (139,300) (140,617)
Payment of vested share-based compensation tax withholdings (1,127) (1,846) (567)
Repurchase of common shares of beneficial interest 0 0 (28,490)
Net cash used in financing activities 6,717,841 1,399,096 (1,149,228)
Net (decrease) increase in cash (65,724) 56,609 169,219
Cash at beginning of year 337,694 281,085 111,866
Cash at end of year 271,970 337,694 281,085
Payments, net:      
Income taxes 2,331 7,806 6,517
Interest 850,624 711,694 718,362
Non cash investing activities:      
Recognition of loans held for investment resulting from initial consolidation of variable interest entities 6,909,607 847,698 0
Transfer of loans and servicing advances to real estate acquired in settlement of loans 0 0 1,205
Receipt of mortgage servicing rights as proceeds from sales of loans 190,141 219,001 292,527
Unsettled purchase of mortgage servicing rights 0 166 1,626
Exchange of mortgage servicing spread for interest-only stripped mortgage-backed securities and interest receivable 0 130,295 105,096
Non-cash financing activities:      
Dividends declared, not paid 35,431 34,838 34,750
PennyMac Loan Services, LLC [Member]      
Adjustments to reconcile net income to net cash (used in) provided by operating activities:      
Purchase of loans held for sale from PennyMac Financial Services, Inc. (11,216,713) (662,952) 0
Sale of loans held for sale to PennyMac Financial Services, Inc. 52,895,921 81,997,773 72,441,699
(Increase) decrease in due from PennyMac Financial Services, Inc. $ (3,085) $ (15,959) $ 3,504
v3.25.4
Pay vs Performance Disclosure - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Pay vs Performance Disclosure      
Net Income (Loss) $ 127,872 $ 160,984 $ 199,654
v3.25.4
Insider Trading Arrangements
3 Months Ended
Dec. 31, 2025
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
v3.25.4
Insider Trading Policies and Procedures
12 Months Ended
Dec. 31, 2025
Insider Trading Policies and Procedures [Line Items]  
Insider Trading Policies and Procedures Adopted true
v3.25.4
Cybersecurity Risk Management, Strategy and Governance
12 Months Ended
Dec. 31, 2025
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, 2025. 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.

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
v3.25.4
Organization
12 Months Ended
Dec. 31, 2025
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 invests in residential mortgage-related assets. The Company operates in three 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 and credit-linked 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 collateralized mortgage obligations ("CMOs") 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 Pennymac 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 enterprises ("GSEs") such as the Federal Home Loan Mortgage Corporation (“Freddie Mac”) and the Federal National Mortgage Association (“Fannie Mae”). Freddie Mac and Fannie Mae are each referred to as an “Agency” and, collectively, as the “Agencies.” The Company also securitizes loans directly and retains certain senior and subordinate MBS created in the 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.

v3.25.4
Concentration of Risks
12 Months Ended
Dec. 31, 2025
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, CMOs and MSRs.

The Company is exposed to fair value risk and credit risk. As a result of prevailing market conditions, including changes in market interest rates, the Company may be required to recognize losses associated with adverse changes to the fair value of its investments in MSRs, CRT arrangements, and MBS. Additionally, the Company is exposed to credit losses arising from its investments in CRT arrangements and subordinate MBS.

Fair Value Risk

The Company carries its non-cash financial assets and MSRs at fair value with changes in fair value included in its income:

The fair value of MSRs is sensitive to changes in prepayment speed expectation and experience, the returns demanded by market participants and estimates of cost to service the underlying loans;
The fair values of Agency and senior non-Agency MBS are sensitive to changes in market interest rates; and
The fair values of CRT arrangements and subordinate and credit-linked 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 the returns required by market participants to hold such investments.

 

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 interest-only (“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 and credit-linked 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 credit-linked 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 and credit-linked 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.

v3.25.4
Significant Accounting Policies
12 Months Ended
Dec. 31, 2025
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’ income. 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 on investments and financings in the consolidated statements of income.

Subordinate and Senior Non-Agency Mortgage-Backed Securities

The Company retains or purchases subordinate and senior non-Agency 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 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 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 held for investment at fair value and the securities issued to nonaffiliates by the consolidated VIEs are included in Asset-backed financings of variable interest entities at fair value on the Company’s consolidated balance sheets. Both the Loans held for investment at fair value and the Asset-backed financings of variable interest entities 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 certain 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 earned on the loans owned by the VIEs as Interest income and the interest attributable to the asset-backed securities issued to nonaffiliates by the VIEs as Interest expense on its consolidated statements of income.

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 sale of the variable funding notes under agreements to repurchase is 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 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 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 income. 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 income. 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 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 and subordinate and credit linked MBS as “Level 2” fair value assets. The Company classifies its investments in IO 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 and yield estimates monthly.

Loans

Loans are carried at their fair values with changes in fair value recognized in current period income. 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 on investments and financings for loans classified as Loans held for investment at fair value and Net gains on loans held for sale at fair value for loans classified as Loans held 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 income. The Company categorizes its Loans held 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 held for investment at fair value 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 loans from PLS and nonaffiliates 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 held for sale and loans held for investment other than loans held in VIEs for the foreseeable future. Therefore, interest income on loans held for sale and loans held for investment 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 unamortized 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 the Company’s correspondent production 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 correspondent production operations are interest rate lock commitments (“IRLCs”) that are created when the Company commits to purchase loans for sale.

The Company engages in interest rate risk management activities in an effort to reduce the variability of its income 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 held 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 income. 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 held 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 income 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 mortgage loans. Under these contracts, the Company performs 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 is contractually entitled to receive other remuneration including various mortgagor‑contracted fees such as late charges and collateral reconveyance charges, and the Company is generally entitled to retain the placement fees earned on impounded funds and funds held pending remittance related to its collection of mortgagor payments. The Company also generally has the right to

solicit the mortgagors for other products and services as well as for new mortgages for those considering refinancing their existing loan or purchasing a new home.

The Company recognizes MSRs initially at fair value, either as proceeds from sales of mortgage loans where the Company retains the obligation to service the mortgage loan in the sale transaction, or from the purchase of MSRs.

The fair value of MSRs is derived from the net positive cash flows associated with the servicing contracts. For loans subject to MSR contracts, the Company receives a servicing fee, based on the remaining outstanding principal balances of the mortgage loans subject to the servicing contracts. The servicing fees are collected from the monthly payments made by the mortgagors.

The fair value of MSRs is difficult to determine because MSRs are not actively traded in observable stand‑alone markets. Considerable judgment is required to estimate the fair values of MSRs and the exercise of such judgment can significantly affect the Company’s income. Therefore, the Company classifies its MSRs as “Level 3” fair value assets and liabilities.

Changes in fair value of MSRs are recognized in current period income in Change in fair value of mortgage servicing rights in the consolidated statements of income.

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 income as a component of Net gains 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 PLS or 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 Net gains on loans held 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 related 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 income 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 Adopted Accounting Pronouncement

During 2023, the FASB issued Accounting Standards Update 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 does not require any changes to the Company’s accounting for income taxes. 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 Company adopted the disclosures required by ASU 2023-09 retrospectively for the year ended December 31, 2025 and the disclosures are included in Note 23—Income Taxes.

v3.25.4
Transactions with Related Parties
12 Months Ended
Dec. 31, 2025
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 or distressed loans).

Under the Servicing Agreement, as amended, servicing fees for all subserviced MSRs and loans are established at a per-loan monthly amount based on the delinquency, bankruptcy and/or foreclosure status of the serviced loan or REO as shown below:

Through September 30, 2025, the per-loan base servicing fees for loans subserviced by PLS on the Company’s behalf were $7.50 per month for fixed-rate loans and $8.50 per month for adjustable-rate loans. Effective October 1, 2025, the per loan base servicing fees for mortgage loans are $7.00 per month for fixed-rate loans and $8.00 per month for adjustable-rate loans.
To the extent that loans become delinquent, PLS is entitled to an additional servicing fee per loan ranging from $18 to $80 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, pass through of Agency incentive fees to PLS for loss mitigation activities and a fee for processing insurance and guarantee claims on defaulted loans.

Through 2024, the loan servicing fees were established based on whether the serviced loans were “prime” loans (loans included in PMT’s MSRs, its inventory of loans held for sale or loans held for VIEs) or special servicing loans as follows:

Prime Servicing

The per-loan base servicing fees for prime loans subserviced by PLS on the Company’s behalf were $7.50 per month for fixed-rate loans and $8.50 per month for adjustable-rate loans.
To the extent that prime loans became delinquent, PLS was 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 became REO.
PLS was also entitled to customary ancillary income and certain market-based fees and charges, including boarding and deboarding fees, liquidation and disposition fees, assumption and modification and origination fees and certain fees for forbearance and modification activities.

Special Servicing

The per-loan base servicing fee rates for distressed loans ranged from $30 per month for current loans up to $95 per month for loans in foreclosure proceedings. The base servicing fee rate for REO was $75 per month. PLS also received a supplemental servicing fee of $25 per month for each special servicing loan.
PLS received activity-based fees for modifications, foreclosures and liquidations that it facilitated with respect to special servicing, as well as other market-based refinancing and loan disposition fees.

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:

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.

The “recapture rate” means, during each month, the ratio of (i) the aggregate UPB of all refinance mortgage loans originated in such month, plus the aggregate UPB of all "preserved mortgage loans" relating to closed end second loans originated in such month, to (ii) the aggregate UPB of all mortgage loans from the portfolio that PLS has determined in good faith were refinanced in such month, plus the aggregate UPB 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. PFSI has further agreed to allocate sufficient resources to target a recapture rate of at least 30%.

Through December 2024, the MSR recapture agreement provided for the fee to be determined as follows:

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%.

Through December 31, 2024, the “recapture rate” meant, 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.

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,

 

 

 

2025

 

 

2024

 

 

2023

 

 

 

(in thousands)

 

Loan servicing fees:

 

 

 

 

 

 

 

 

 

Loans held for sale

 

$

313

 

 

$

525

 

 

$

680

 

Loans held for investment

 

 

1,311

 

 

 

591

 

 

 

208

 

Mortgage servicing rights

 

 

82,808

 

 

 

82,136

 

 

 

80,459

 

 

$

84,432

 

 

$

83,252

 

 

$

81,347

 

Average investment in loans:

 

 

 

 

 

 

 

 

 

Held for sale

 

$

2,206,958

 

 

$

1,249,423

 

 

$

1,439,373

 

Held for investment

 

$

4,724,217

 

 

$

1,468,687

 

 

$

1,451,632

 

Average MSR portfolio unpaid principal balance

 

$

221,436,947

 

 

$

228,705,758

 

 

$

231,203,032

 

 

 

 

 

 

 

 

 

 

 

Mortgage servicing rights recapture fees

 

$

10,117

 

 

$

2,193

 

 

$

1,784

 

Unpaid principal balance of loans recaptured

 

$

932,444

 

 

$

353,710

 

 

$

315,412

 

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; correspondent seller performance and credit monitoring; and the sale of loans through secondary mortgage markets on behalf of the Company.

Under the mortgage banking services agreement executed in December 2024, as amended, PLS assumed the role of initial correspondent loan purchaser instead of the Company effective July 1, 2025 and 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 described below. PLS may hold or otherwise sell correspondent loans to other investors if the Company chooses not to purchase such loans. As a result of the revised agreement, the sourcing fee arrangement described below no longer has any effect for correspondent loan commitments entered into beginning on July 1, 2025.

Effective January 1, 2025, fulfillment fees in any quarter shall not exceed the following:

the product of (i) the sum of $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 (ii) the number of loan commitments relating to loans intended to be purchased by PMT during the quarter and thereafter retained by PMT prior to sale or securitization, divided by the total number of non-Ginnie Mae loan commitments issued during the quarter (in each case as determined after applying the applicable pull-through factor) plus
the product of (i) the sum of $315 for each purchased loan up to and including 16,500 per quarter and $195 for each purchased loan in excess of 16,500 per quarter, and (ii) the number of loans purchased by PMT during the quarter and thereafter retained by PMT prior to sale or securitization, divided by the total number of non-Ginnie Mae loans purchased during the quarter, plus
$500 multiplied by the number of all purchased loans that are securitized or sold to parties other than Fannie Mae or Freddie Mac.

Through December 2024, the mortgage banking services agreement provided for a quarterly fulfillment fee not to 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.

The Company does not hold the Ginnie Mae approval required to issue Ginnie Mae MBS and/or to act as a servicer for loans in Ginnie Mae MBS. Accordingly, under the mortgage banking services agreement, through June 30, 2025, PLS purchased mortgage loans underwritten in accordance with the Ginnie Mae MBS Guide “as is” and without recourse of any kind from the Company at its 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 were held by the Company before purchase by PLS. PLS could also acquire conventional loans from the Company on the same terms upon mutual agreement between the Company and PLS.

While PLS purchased 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.

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,

 

 

 

2025

 

 

2024

 

 

2023

 

 

 

(in thousands)

 

Loan fulfillment fees earned by PLS

 

$

23,804

 

 

$

26,291

 

 

$

27,826

 

Unpaid principal balance of loans fulfilled by PLS (1)

 

$

12,893,224

 

 

$

13,446,484

 

 

$

14,898,301

 

 

 

 

 

 

 

 

 

 

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

 

$

5,164

 

 

$

8,069

 

 

$

7,162

 

Unpaid principal balance of loans sold to PLS:

 

 

 

 

 

 

 

 

 

Government guaranteed or insured

 

$

27,094,014

 

 

$

40,838,480

 

 

$

40,476,782

 

Conventional conforming

 

 

24,990,216

 

 

 

39,856,056

 

 

 

31,141,915

 

 

$

52,084,230

 

 

$

80,694,536

 

 

$

71,618,697

 

 

 

 

 

 

 

 

 

 

 

Purchases of loans held for sale from PLS (1)

 

$

11,216,713

 

 

$

662,952

 

 

$

 

 

 

 

 

 

 

 

 

 

 

Tax service fees paid to PLS

 

$

1,537

 

 

$

2,523

 

 

$

3,216

 

(1)
Amounts include loans purchased directly by the Company and loans purchased from PLS subject to fulfillment fees.

 

 

 

 

 

December 31, 2024

 

 

 

 

 

(in thousands)

 

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

 

 

 

$

602,108

 

Management Agreement

PMT has a management agreement with PCM, pursuant to which the 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. “Shareholders’ equity” is defined as the sum of net proceeds from issuance and repurchases of equity securities since inception, plus retained earnings or reduced by accumulated deficit.
A performance incentive fee that is calculated annually at a defined annualized percentage of the amount by which “net income,” for a fiscal year and before deducting the incentive fee, exceeds certain levels of return on “common shareholders’ equity.”

The performance incentive fee is equal to the sum of:

10% of the amount by which “net income” for the year exceeds (i) an 8% return on the average “common shareholders’ equity” plus the “high watermark”, up to (ii) a 12% return on “common shareholders’ equity” during the fiscal year; plus
15% of the amount by which “net income” for the year exceeds (i) a 12% return on the average “common shareholders’ equity” plus the “high watermark”, up to (ii) a 16% return on “common shareholders’ equity” during the fiscal year; plus
20% of the amount by which “net income” for the year exceeds a 16% return on the average “common shareholders’ equity” during the fiscal year 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.

“Common shareholders’ equity” is defined as the average “shareholder’s equity less the average GAAP carrying value of the Company’s preferred equity.

“High watermark” is the annual adjustment that reflects the amount by which the “net income” (stated as a percentage of return on “equity”) in that year exceeds or falls short of the lesser of 8% and the average Fannie Mae 30year MBS Yield (the “Target Yield”) for the year then ended. If the “net income” is lower than the Target Yield, the high watermark is increased by the difference. If the “net income” is higher than the Target Yield, the high watermark is reduced by the difference. Each time a performance incentive fee is earned, the high watermark is reset to zero. As a result, the threshold amount required for the Company to earn a performance incentive fee is adjusted cumulatively based on the performance of the Company’s net income over (or under) the Target Yield, until the net income in excess of the Target Yield exceeds the then-current cumulative high watermark amount, and a performance incentive fee is earned. The high watermark is calculated based on the two years preceding the fiscal year for which the incentive fee is calculated, and will never be less than zero after including all high watermark increases and high watermark decreases over any such rolling two fiscal year period.

The base management fee is paid quarterly in arrears and the performance incentive fee is paid annually 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.

Through 2024, under the management agreement, both base management and performance incentive fees were paid quarterly and the high watermark was assessed and calculated on a cumulative basis since inception.

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,

 

 

 

2025

 

 

2024

 

 

2023

 

 

 

(in thousands)

 

Base management fee

 

$

27,649

 

 

$

28,623

 

 

$

28,762

 

Performance incentive fee

 

 

 

 

 

 

 

 

 

 

$

27,649

 

 

$

28,623

 

 

$

28,762

 

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

 

$

1,843,549

 

 

$

1,908,287

 

 

$

1,917,642

 

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, the Company reimburses PCM for 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, accounting, internal audit and investor relations services for the direct benefit of the Company. The Company is also required to pay a pro rata portion of the rent, telephone, utilities, office furniture, equipment, machinery and other office, internal and overhead expenses (common overhead) of PCM and its affiliates required for the Company’s and its subsidiaries’ operations. These expenses are based on the resources PCM and its affiliates dedicate to investment management activities for the Company, as determined by PCM in its reasonable and good faith discretion.

Through 2024, the Company reimbursed PCM for its organizational and operating expenses, including third-party expenses, incurred on the Company’s behalf, it being understood that PCM and its affiliates would allocate a portion of their personnel’s time to provide certain legal, tax and investor relations services for the direct benefit of the Company. With respect to the allocation of PCM’s and its affiliates’ personnel compensation, PCM was reimbursed $165,000 per fiscal quarter. Overhead expenses were previously allocated based on the ratio of the Company’s proportion of gross assets compared to all remaining gross assets owned or managed by PCM and 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,

 

 

 

2025

 

 

2024

 

 

2023

 

 

 

(in thousands)

 

Reimbursement of:

 

 

 

 

 

 

 

 

 

Expenses incurred on the Company’s behalf, net

 

$

21,177

 

 

$

20,871

 

 

$

21,468

 

Compensation

 

 

6,515

 

 

 

660

 

 

 

660

 

Common overhead

 

 

3,926

 

 

 

7,909

 

 

 

7,492

 

 

$

31,618

 

 

$

29,440

 

 

$

29,620

 

Payments and settlements during the period (1)

 

$

109,610

 

 

$

118,167

 

 

$

94,339

 

 

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

Financing Activities

PFSI Investment in the Company

PFSI held 75,000 of the Company’s Common Shares at both December 31, 2025 and December 31, 2024.

Amounts Receivable from and Payable to PFSI

Amounts receivable from and payable to PFSI are summarized below:

 

 

December 31, 2025

 

 

December 31, 2024

 

 

(in thousands)

 

Due from PFSI-Miscellaneous receivables

 

$

19,100

 

 

$

16,015

 

 

 

 

 

 

 

Due to PFSI:

 

 

 

 

 

 

Management fees

 

$

6,856

 

 

$

7,149

 

Loan servicing fees

 

 

6,669

 

 

 

6,822

 

Allocated expenses and expenses and costs

 

 

3,161

 

 

 

3,508

 

Correspondent production activities

 

 

436

 

 

 

11,122

 

Fulfillment fees

 

 

 

 

 

1,605

 

 

$

17,122

 

 

$

30,206

 

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 of the Company's balance sheet items as summarized below:

Balance sheet line including advance amount

 

December 31, 2025

 

 

December 31, 2024

 

 

 

(in thousands)

 

Servicing advances

 

$

96,830

 

 

$

105,037

 

Other assets-Real estate acquired in settlement of loans

 

 

655

 

 

 

1,265

 

 

$

97,485

 

 

$

106,302

 

v3.25.4
Loan Sales
12 Months Ended
Dec. 31, 2025
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,

 

 

 

2025

 

 

2024

 

 

2023

 

 

(in thousands)

 

Cash flows:

 

 

 

 

 

 

 

 

 

Proceeds from sales

 

$

10,292,463

 

 

$

12,414,391

 

 

$

15,936,124

 

Loan servicing fees received

 

$

608,025

 

 

$

644,642

 

 

$

659,438

 

 

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

 

 

December 31, 2025

 

 

December 31, 2024

 

 

 

(in thousands)

 

Unpaid principal balance of loans outstanding

 

$

212,581,934

 

 

$

222,761,227

 

Collection status (Unpaid principal balance)

 

 

 

 

 

 

Delinquency:

 

 

 

 

 

 

30-89 days delinquent

 

$

2,583,158

 

 

$

2,618,767

 

90 or more days delinquent:

 

 

 

 

 

 

Not in foreclosure

 

$

1,025,111

 

 

$

1,078,362

 

In foreclosure

 

$

118,503

 

 

$

105,810

 

Bankruptcy

 

$

351,890

 

 

$

281,821

 

 

 

 

 

 

 

 

Custodial funds managed by the Company (1)

 

$

2,758,142

 

 

$

2,385,602

 

 

(1)
Custodial funds represent 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 income.
v3.25.4
Variable Interest Entities
12 Months Ended
Dec. 31, 2025
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 that 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 that require the Company to absorb losses only when the reference loans realize credit losses.

The Company placed Deposits securing credit risk transfer arrangements into subsidiary trust entities to secure its recourse obligations. The Deposits securing credit risk transfer 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’ income. 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, strips and the IO ownership interest sold to a nonaffiliate included in the CRT arrangements are included in Net gains on investments and financings in the consolidated statements of income.

Following is a summary of the CRT arrangements:

 

 

 

Year ended December 31,

 

 

 

2025

 

 

2024

 

 

2023

 

 

 

(in thousands)

 

Net investment income:

 

 

 

 

 

 

 

 

 

Net gains on investments and financings

 

 

 

 

 

 

 

 

 

Credit risk transfer derivatives and strips:

 

 

 

 

 

 

 

 

 

Credit risk transfer derivatives

 

 

 

 

 

 

 

 

 

Realized

 

$

10,764

 

 

$

13,491

 

 

$

18,524

 

Valuation changes

 

 

3,572

 

 

 

13,529

 

 

 

38,020

 

 

 

14,336

 

 

 

27,020

 

 

 

56,544

 

Credit risk transfer strips

 

 

 

 

 

 

 

 

 

Realized

 

 

39,189

 

 

 

45,573

 

 

 

46,252

 

Valuation changes

 

 

(1,727

)

 

 

42,632

 

 

 

90,501

 

 

 

37,462

 

 

 

88,205

 

 

 

136,753

 

Interest-only security payable at fair value — valuation changes

 

 

(3,428

)

 

 

(1,555

)

 

 

(10,742

)

 

 

48,370

 

 

 

113,670

 

 

 

182,555

 

Interest income — Deposits securing credit risk transfer
    arrangements

 

 

44,269

 

 

 

59,304

 

 

 

62,713

 

 

$

92,639

 

 

$

172,974

 

 

$

245,268

 

 

 

 

 

 

 

 

 

 

 

Net payments made to settle losses on credit risk transfer arrangements

 

$

4,466

 

 

$

1,633

 

 

$

3,523

 

 

 

 

December 31, 2025

 

 

December 31, 2024

 

 

 

(in thousands)

 

Carrying value of credit risk transfer arrangements:

 

 

 

 

 

 

Derivative assets - credit risk transfer derivatives

 

$

32,659

 

 

$

29,377

 

Derivative and credit risk transfer liabilities - credit risk transfer strips

 

(5,999

)

 

 

(4,060

)

Deposits securing credit risk transfer arrangements

 

 

1,009,334

 

 

 

1,110,708

 

Interest-only security payable at fair value

 

 

(37,650

)

 

 

(34,222

)

 

 

$

998,344

 

 

$

1,101,803

 

 

 

 

 

 

 

Credit risk transfer arrangement assets pledged to secure borrowings:

 

 

 

 

 

Derivative assets

 

$

32,659

 

 

$

29,377

 

Deposits securing credit risk transfer arrangements (1)

$

1,009,334

 

 

$

1,110,708

 

 

 

 

 

 

 

Unpaid principal balance of loans underlying credit risk transfer arrangements

$

19,517,530

 

 

$

21,249,304

 

Collection status (unpaid principal balance):

 

 

 

 

Delinquency

 

 

 

 

 

 

Current

 

$

18,908,261

 

 

$

20,628,148

 

30-89 days delinquent

 

$

413,295

 

 

$

414,605

 

90-179 days delinquent

 

$

110,486

 

 

$

131,191

 

180 or more days delinquent

 

$

57,798

 

 

$

51,343

 

Foreclosure

 

$

27,690

 

 

$

24,017

 

Bankruptcy

 

$

68,426

 

 

$

63,697

 

 

(1)
Deposits securing credit risk transfer strip liabilities also secure $6.0 million and $4.1 million in CRT strip liabilities at December 31, 2025 and December 31, 2024, respectively.

Subordinate and Senior Non-Agency Mortgage-Backed Securities

The Company retains or purchases subordinate and senior non-agency 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 subordinate MBS 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 earned on the loans owned by the VIEs as Interest income and the interest attributable to the asset-backed securities issued to nonaffiliates by the VIEs as Interest expense on its consolidated statements of income.

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

 

 

 

Year ended December 31,

 

 

 

2025

 

 

2024

 

 

2023

 

 

 

(in thousands)

 

Net investment income:

 

 

 

 

 

 

 

 

 

Net gains on investments and financings:

 

 

 

 

 

 

 

 

 

Loans held for investment at fair value

 

$

112,840

 

 

$

15,637

 

 

$

17,876

 

Asset-backed financings of variable interest entities at fair value

 

 

(96,439

)

 

 

(7,396

)

 

 

(13,678

)

Interest income

 

 

242,696

 

 

 

58,720

 

 

 

56,833

 

Interest expense

 

 

226,918

 

 

 

55,763

 

 

 

49,988

 

 

 

$

32,179

 

 

$

11,198

 

 

$

11,043

 

 

 

 

December 31, 2025

 

 

December 31, 2024

 

 

 

(in thousands)

 

Loans held for investment at fair value

 

$

8,530,939

 

 

$

2,191,709

 

Asset-backed financings of variable interest entities at fair value

 

$

7,789,303

 

 

$

2,040,375

 

Retained mortgage-backed securities at fair value pledged to secure
      
Assets sold under agreements to repurchase

 

$

648,159

 

 

$

130,839

 

Financing of Mortgage Servicing Assets

The Company entered into financing transactions in which it pledged participation interests in its Fannie Mae MSRs to VIEs which issued variable funding notes, term notes and term loans backed by the participation interests. The Company holds the variable funding notes 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.

v3.25.4
Fair Value
12 Months Ended
Dec. 31, 2025
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 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.

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, 2025

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

 

 

(in thousands)

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Short-term investments

 

$

190,518

 

 

$

 

 

$

 

 

$

190,518

 

Mortgage-backed securities

 

 

 

 

 

4,380,357

 

 

 

72,502

 

 

 

4,452,859

 

Loans held for sale

 

 

 

 

 

2,695,817

 

 

 

3,581

 

 

 

2,699,398

 

Loans held for investment

 

 

 

 

 

8,530,939

 

 

 

1,705

 

 

 

8,532,644

 

Derivative assets with nonaffiliates:

 

 

 

 

 

 

 

 

 

 

 

 

Call options on interest rate futures purchase contracts

 

 

1,289

 

 

 

 

 

 

 

 

 

1,289

 

Put options on interest rate futures purchase contracts

 

 

4,109

 

 

 

 

 

 

 

 

 

4,109

 

Forward purchase contracts

 

 

 

 

 

4,113

 

 

 

 

 

 

4,113

 

Forward sale contracts

 

 

 

 

 

2,381

 

 

 

 

 

 

2,381

 

Credit risk transfer derivatives

 

 

 

 

 

 

 

 

32,659

 

 

 

32,659

 

Total derivative assets with nonaffiliates before netting

 

 

5,398

 

 

 

6,494

 

 

 

32,659

 

 

 

44,551

 

Netting

 

 

 

 

 

 

 

 

 

 

 

5,145

 

Total derivative assets with nonaffiliates after netting

 

 

5,398

 

 

 

6,494

 

 

 

32,659

 

 

 

49,696

 

Derivative assets with PennyMac Financial Services, Inc.:

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate lock commitments

 

 

 

 

 

 

 

 

4,605

 

 

 

4,605

 

Forward purchase contracts

 

 

 

 

 

1,784

 

 

 

 

 

 

1,784

 

Total derivative assets with PennyMac Financial
   Services, Inc. before netting

 

 

 

 

 

1,784

 

 

 

4,605

 

 

 

6,389

 

Netting

 

 

 

 

 

 

 

 

 

 

 

(142

)

Total derivative assets with PennyMac Financial
   Services, Inc. after netting

 

 

 

 

 

1,784

 

 

 

4,605

 

 

 

6,247

 

Mortgage servicing rights

 

 

 

 

 

 

 

 

3,644,702

 

 

 

3,644,702

 

 

$

195,916

 

 

$

15,615,391

 

 

$

3,759,754

 

 

$

19,576,064

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Interest-only security payable

 

$

 

 

$

 

 

$

37,650

 

 

$

37,650

 

Asset-backed financings of variable interest entities

 

 

 

 

 

7,789,303

 

 

 

 

 

 

7,789,303

 

Derivative and credit risk transfer strip liabilities with
   nonaffiliates:

 

 

 

 

 

 

 

 

 

 

 

 

Forward purchase contracts

 

 

 

 

 

158

 

 

 

 

 

 

158

 

Forward sales contracts

 

 

 

 

 

17,340

 

 

 

 

 

 

17,340

 

Total derivative liabilities with nonaffiliates before netting

 

 

 

 

 

17,498

 

 

 

 

 

 

17,498

 

Netting

 

 

 

 

 

 

 

 

 

 

 

(16,565

)

Total derivative liabilities with nonaffiliates after netting

 

 

 

 

 

17,498

 

 

 

 

 

 

933

 

Credit risk transfer strips

 

 

 

 

 

 

 

 

5,999

 

 

 

5,999

 

Total derivative and credit risk transfer strip liabilities
    with nonaffiliates

 

 

 

 

 

17,498

 

 

 

5,999

 

 

 

6,932

 

Derivative liabilities with PennyMac Financial Services, Inc:

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate lock commitments

 

 

 

 

 

 

 

 

2,257

 

 

 

2,257

 

Forward purchase contracts

 

 

 

 

 

142

 

 

 

 

 

 

142

 

Total derivative liabilities with PennyMac Financial
   Services, Inc before netting

 

 

 

 

 

142

 

 

 

2,257

 

 

 

2,399

 

Netting

 

 

 

 

 

 

 

 

 

 

 

(142

)

Total derivative liabilities with PennyMac Financial
  Services, Inc after netting:

 

 

 

 

 

142

 

 

 

2,257

 

 

 

2,257

 

 

$

 

 

$

7,806,943

 

 

$

45,906

 

 

$

7,836,142

 

 

 

 

 

 

December 31, 2024

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

 

 

(in thousands)

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Short-term investments

 

$

103,198

 

 

$

 

 

$

 

 

$

103,198

 

Mortgage-backed securities

 

 

 

 

 

3,977,446

 

 

 

86,260

 

 

 

4,063,706

 

Loans held for sale

 

 

 

 

 

2,108,347

 

 

 

7,971

 

 

 

2,116,318

 

Loans held for investment

 

 

 

 

 

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

 

 

 

 

 

 

 

 

3,867,394

 

 

 

3,867,394

 

 

$

109,726

 

 

$

8,334,286

 

 

$

3,996,430

 

 

$

12,401,031

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Interest-only security payable

 

$

 

 

$

 

 

$

34,222

 

 

$

34,222

 

Asset-backed financings of variable interest entities

 

 

 

 

 

2,040,375

 

 

 

 

 

 

2,040,375

 

Derivative liabilities and credit risk transfer strips:

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

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, 2025

 

Assets (1)

 

Interest-only stripped mortgage-backed securities

 

 

Loans
held
for sale

 

 

Loans
 held for investment

 

 

CRT
derivatives

 

 

Interest
rate lock
commitments
with nonaffiliates

 

 

Interest
rate lock
commitments
 with PFSI

 

 

CRT
strips

 

 

Mortgage
servicing
rights

 

 

Total

 

 

 

(in thousands)

 

Balance, December 31, 2024

 

$

86,260

 

 

$

7,971

 

 

$

1,866

 

 

$

29,377

 

 

$

444

 

 

$

 

 

$

(4,060

)

 

$

3,867,394

 

 

$

3,989,252

 

Purchases and issuances

 

 

 

 

 

3,290

 

 

 

 

 

 

 

 

 

8,152

 

 

 

17,614

 

 

 

 

 

 

 

 

 

29,056

 

Repayments and sales

 

 

(17,802

)

 

 

(8,265

)

 

 

(159

)

 

 

(11,054

)

 

 

 

 

 

 

 

 

(39,401

)

 

 

 

 

 

(76,681

)

Accrual of unearned discounts

 

 

8,677

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8,677

 

Amounts received pursuant to
   sales of loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

190,141

 

 

 

190,141

 

Changes in fair value included in
  income arising from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Changes in instrument - specific
credit risk

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other factors

 

 

(4,633

)

 

 

585

 

 

 

(2

)

 

 

14,336

 

 

 

11,920

 

 

 

17,798

 

 

 

37,462

 

 

 

(413,709

)

 

 

(336,243

)

 

 

(4,633

)

 

 

585

 

 

 

(2

)

 

 

14,336

 

 

 

11,920

 

 

 

17,798

 

 

 

37,462

 

 

 

(413,709

)

 

 

(336,243

)

Transfers of:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(20,516

)

 

 

(33,064

)

 

 

 

 

 

 

 

 

(53,580

)

Mortgage servicing rights relating to
   delinquent loans to Agency

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

876

 

 

 

876

 

Balance, December 31, 2025

 

$

72,502

 

 

$

3,581

 

 

$

1,705

 

 

$

32,659

 

 

$

 

 

$

2,348

 

 

$

(5,999

)

 

$

3,644,702

 

 

$

3,751,498

 

Changes in fair value recognized during
the year relating to assets still held
at December 31, 2025

 

$

(4,633

)

 

$

127

 

 

$

(28

)

 

$

3,572

 

 

$

 

 

$

2,348

 

 

$

(1,727

)

 

$

(413,709

)

 

$

(414,050

)

 

(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 held for sale at fair value upon purchase of the respective loans.

 

Liabilities

 

Year ended December 31, 2025

 

 

 

(in thousands)

 

Interest-only security payable:

 

 

 

Balance, December 31, 2024

 

$

34,222

 

Changes in fair value included in income arising from:

 

 

 

Changes in instrument - specific credit risk

 

 

 

Other factors

 

 

3,428

 

 

 

3,428

 

Balance, December 31, 2025

 

$

37,650

 

Changes in fair value recognized during the year relating
    to liability outstanding at December 31, 2025

 

$

3,428

 

 

 

 

 

Year ended December 31, 2024

 

Assets (1)

 

Interest-only stripped mortgage-backed securities

 

 

Loans
held
for sale

 

 

Loans
 held for investment

 

 

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 discount

 

 

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 held 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 held 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 income arising from:

 

 

 

Changes in instrument - specific credit risk

 

 

 

Other factors

 

 

1,555

 

 

 

1,555

 

Balance, September 30, 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 held 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 held 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 income 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

 

 

 

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:

 

 

 

December 31, 2025

 

 

December 31, 2024

 

 

 

Fair value

 

 

Principal
amount due
upon maturity

 

 

Difference

 

 

Fair value

 

 

Principal
amount due
upon maturity

 

 

Difference

 

 

 

(in thousands)

 

Loans held for sale:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current through 89 days delinquent

 

$

2,696,128

 

 

$

2,627,441

 

 

$

68,687

 

 

$

2,114,556

 

 

$

2,092,030

 

 

$

22,526

 

90 or more days delinquent:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Not in foreclosure

 

 

1,273

 

 

 

1,271

 

 

 

2

 

 

 

1,687

 

 

 

2,114

 

 

 

(427

)

In foreclosure

 

 

1,997

 

 

 

2,289

 

 

 

(292

)

 

 

75

 

 

 

96

 

 

 

(21

)

 

 

3,270

 

 

 

3,560

 

 

 

(290

)

 

 

1,762

 

 

 

2,210

 

 

 

(448

)

 

$

2,699,398

 

 

$

2,631,001

 

 

$

68,397

 

 

$

2,116,318

 

 

$

2,094,240

 

 

$

22,078

 

Loans held for investment:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Held in consolidated VIEs:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current through 89 days delinquent

 

$

8,529,906

 

 

$

8,353,814

 

 

$

176,092

 

 

$

2,190,432

 

 

$

2,413,214

 

 

$

(222,782

)

90 or more days delinquent:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Not in foreclosure

 

 

700

 

 

 

844

 

 

 

(144

)

 

 

1,277

 

 

 

1,658

 

 

 

(381

)

In foreclosure

 

 

333

 

 

 

428

 

 

 

(95

)

 

 

 

 

 

 

 

 

 

 

 

1,033

 

 

 

1,272

 

 

 

(239

)

 

 

1,277

 

 

 

1,658

 

 

 

(381

)

 

 

8,530,939

 

 

 

8,355,086

 

 

 

175,853

 

 

 

2,191,709

 

 

 

2,414,872

 

 

 

(223,163

)

Distressed:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current through 89 days delinquent

 

 

371

 

 

 

476

 

 

 

(105

)

 

 

445

 

 

 

595

 

 

 

(150

)

90 or more days delinquent:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Not in foreclosure

 

 

942

 

 

 

2,553

 

 

 

(1,611

)

 

 

1,421

 

 

 

3,796

 

 

 

(2,375

)

In foreclosure

 

 

392

 

 

 

1,120

 

 

 

(728

)

 

 

 

 

 

 

 

 

 

 

 

1,334

 

 

 

3,673

 

 

 

(2,339

)

 

 

1,421

 

 

 

3,796

 

 

 

(2,375

)

 

 

1,705

 

 

 

4,149

 

 

 

(2,444

)

 

 

1,866

 

 

 

4,391

 

 

 

(2,525

)

 

$

8,532,644

 

 

$

8,359,235

 

 

$

173,409

 

 

$

2,193,575

 

 

$

2,419,263

 

 

$

(225,688

)

 

Following are the changes in fair value included in current period income by consolidated statements of income line item for financial statement items accounted for under the fair value option:

 

 

 

Year ended December 31, 2025

 

 

 

Net gains on investments and financings

 

 

Net gains on loans held
for sale

 

 

Net loan
servicing fees

 

 

Net interest
expense

 

 

Total

 

 

 

(in thousands)

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage-backed securities

 

$

148,344

 

 

$

 

 

$

 

 

$

51,325

 

 

$

199,669

 

Loans held for sale

 

 

 

 

 

149,579

 

 

 

 

 

 

 

 

 

149,579

 

Loans held for investment

 

 

112,838

 

 

 

 

 

 

 

 

 

(30,726

)

 

 

82,112

 

Credit risk transfer strips

 

 

37,462

 

 

 

 

 

 

 

 

 

 

 

 

37,462

 

Mortgage servicing rights

 

 

 

 

 

 

 

 

(413,709

)

 

 

 

 

 

(413,709

)

 

$

298,644

 

 

$

149,579

 

 

$

(413,709

)

 

$

20,599

 

 

$

55,113

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-only security payable

 

$

(3,428

)

 

$

 

 

$

 

 

$

 

 

$

(3,428

)

Asset-backed financings of VIEs

 

 

(96,439

)

 

 

 

 

 

 

 

 

10,984

 

 

 

(85,455

)

 

$

(99,867

)

 

$

 

 

$

 

 

$

10,984

 

 

$

(88,883

)

 

 

 

 

Year ended December 31, 2024

 

 

 

Net gains on investments and financings

 

 

Net gains on loans held
for sale

 

 

Net loan
servicing fees

 

 

Net interest
expense

 

 

Total

 

 

 

(in thousands)

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage-backed securities

 

$

(80,838

)

 

$

 

 

$

 

 

$

28,773

 

 

$

(52,065

)

Loans held for sale

 

 

 

 

 

24,457

 

 

 

 

 

 

 

 

 

24,457

 

Loans held for investment

 

 

15,516

 

 

 

 

 

 

 

 

 

(1,808

)

 

 

13,708

 

Credit risk transfer strips

 

 

88,205

 

 

 

 

 

 

 

 

 

 

 

 

88,205

 

Mortgage servicing rights

 

 

 

 

 

 

 

 

(170,409

)

 

 

 

 

 

(170,409

)

 

$

22,883

 

 

$

24,457

 

 

$

(170,409

)

 

$

26,965

 

 

$

(96,104

)

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-only security payable

 

$

(1,555

)

 

$

 

 

$

 

 

$

 

 

$

(1,555

)

Asset-backed financings of VIEs

 

 

(7,396

)

 

 

 

 

 

 

 

 

(3,653

)

 

 

(11,049

)

 

$

(8,951

)

 

$

 

 

$

 

 

$

(3,653

)

 

$

(12,604

)

 

 

 

Year ended December 31, 2023

 

 

 

Net gains on investments and financings

 

 

Net gains on loans held
for sale

 

 

Net loan
servicing fees

 

 

Net interest
expense

 

 

Total

 

 

 

(in thousands)

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage-backed securities

 

$

74,984

 

 

$

 

 

$

 

 

$

1,986

 

 

$

76,970

 

Loans held for sale

 

 

 

 

 

15,025

 

 

 

 

 

 

 

 

 

15,025

 

Loans held for investment

 

 

17,439

 

 

 

 

 

 

 

 

 

(2,127

)

 

 

15,312

 

Credit risk transfer strips

 

 

136,753

 

 

 

 

 

 

 

 

 

 

 

 

136,753

 

Mortgage servicing rights

 

 

 

 

 

 

 

 

(296,847

)

 

 

 

 

 

(296,847

)

 

$

229,176

 

 

$

15,025

 

 

$

(296,847

)

 

$

(141

)

 

$

(52,787

)

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-only security payable

 

$

(10,742

)

 

$

 

 

$

 

 

$

 

 

$

(10,742

)

Asset-backed financings of VIEs

 

 

(13,678

)

 

 

 

 

 

 

 

 

(496

)

 

 

(14,174

)

 

$

(24,420

)

 

$

 

 

$

 

 

$

(496

)

 

$

(24,916

)

 

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, 2025

 

$

 

 

$

 

 

$

30

 

 

$

30

 

December 31, 2024

 

$

 

 

$

 

 

$

532

 

 

$

532

 

 

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

 

 

 

Year ended December 31,

 

 

 

2025

 

 

2024

 

 

2023

 

 

 

(in thousands)

 

Real estate acquired in settlement of loans

 

$

(68

)

 

$

(348

)

 

$

(223

)

 

The Company remeasures its REO based on fair value when it evaluates the 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 income.

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 senior notes included in Unsecured senior notes 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 its senior notes 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 and internal estimates of fair value for the term loans. The Company estimates the fair values of its Unsecured senior notes using pricing services. The fair values and carrying values of these liabilities are summarized below:

 

 

 

December 31, 2025

 

 

December 31, 2024

 

Instrument

 

Carrying value

 

 

Fair value

 

 

Carrying value

 

 

Fair value

 

 

 

(in thousands)

 

Notes payable secured by credit risk transfer
    and mortgage servicing assets

 

$

2,258,128

 

 

$

2,268,438

 

 

$

2,929,790

 

 

$

2,944,956

 

Unsecured senior notes

 

$

1,028,300

 

 

$

1,073,341

 

 

$

605,860

 

 

$

606,185

 

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 income. 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 option-adjusted spread ("OAS") or pricing spread (OAS and pricing spread are each a component of 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.

 

Beginning in the third quarter of 2025, the Company enhanced its discounted cash flow approach to estimate the period-end fair value of its IO stripped MBS with the adoption of an OAS discounted cashflow model. The OAS model allows the Company to account for the likelihood of interest rates moving along different paths as economic conditions change in its assessment of the fair value of IO stripped MBS as opposed to a single assumed rate path. Adoption of the OAS model did not have a significant effect on the fair value of IO stripped MBS.

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

 

 

 

December 31, 2025

 

 

December 31, 2024

 

Fair value (in thousands)

 

$

72,502

 

 

$

86,260

 

Key inputs (1)

 

 

 

 

 

 

Option-adjusted spread (2)

 

 

 

 

 

 

Range

 

4.7% – 4.7%

 

 

 

 

Weighted average

 

4.7%

 

 

 

 

Pricing spread (3)

 

 

 

 

 

 

Range

 

 

 

 

5.9% – 6.5%

 

Weighted average

 

 

 

 

6.5%

 

Annual total prepayment speed (4)

 

 

 

 

 

 

Range

 

11.0% – 13.6%

 

 

9.4% – 10.2%

 

Weighted average

 

11.0%

 

 

9.4%

 

Equivalent life (in years)

 

 

 

 

 

 

Range

 

4.0 – 7.7

 

 

4.6 – 8.0

 

Weighted average

 

7.6

 

 

7.9

 

 

(1)
Weighted-average inputs are based on the UPB of the underlying loans.
(2)
Beginning July 1, 2025, the Company applied an option-adjusted spread to multiple simulated paths of a derived United States Treasury securities (“Treasury") yield curve for purposes of discounting cash flows relating to IO stripped MBS.
(3)
Pricing spread represents a margin that is applied to a reference interest rate’s forward rate curve to develop periodic discount rates. Through June 30, 2025, the Company applied a pricing spread to a derived Treasury yield curve for purposes of discounting cash flows relating to IO stripped MBS.
(4)
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 on investments and financings in the consolidated statements of income.

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 held for sale and all of the loans held for investment in VIEs, are categorized as “Level 2” fair value assets:
Fair values of loans held for sale are established using the loans’ contracted selling prices, quoted market prices or market price equivalents.
Fair values of loans held for investment in VIEs are developed using the quoted indications of fair value of all of the individual securities issued by the securitization trusts holding 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 of loans held for sale categorized as “Level 3” assets (home equity lines of credit and previously sold loans repurchased pursuant to representations and warranties) 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.
Fair values of distressed loans are estimated based on the fair values of the real estate collateralizing the loans.

Changes in fair values of loans held for sale are included in Net gains on loans held for sale at fair value in the consolidated statements of income. Changes in fair values of loans held for investment are included in Net gains on investments and financings in the consolidated statements of income.

Derivative and Credit Risk Transfer Strip Assets and Liabilities

CRT Derivatives

The Company categorizes CRT derivatives as “Level 3” fair value assets. 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 representing the beneficial interests in the trusts.

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 on investments and financings in the consolidated statements of income.

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, 2025

 

 

December 31, 2024

 

 

 

(dollars in thousands)

 

Fair value

 

$

32,659

 

 

$

29,377

 

UPB of loans in reference pools

 

$

4,555,682

 

 

$

4,961,644

 

Key inputs (1)

 

 

 

 

 

 

Discount rate

 

 

 

 

 

 

Range

 

8.6% – 14.1%

 

 

9.0% – 11.4%

 

Weighted average

 

8.8%

 

 

9.3%

 

Voluntary prepayment speed (2)

 

 

 

 

 

 

Range

 

6.3% – 7.6%

 

 

7.0% – 7.6%

 

Weighted average

 

7.3%

 

 

7.3%

 

Involuntary prepayment speed (3)

 

 

 

 

 

 

Range

 

0.1% – 0.3%

 

 

0.1% – 0.2%

 

Weighted average

 

0.1%

 

 

0.1%

 

Remaining loss expectation

 

 

 

 

 

 

Range

 

0.0% – 0.1%

 

 

0.0% – 0.2%

 

Weighted average

 

0.1%

 

 

0.1%

 

 

(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 held for sale at fair value in the consolidated statements of income.

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

 

 

 

December 31, 2025

 

 

December 31, 2024

 

Fair value (in thousands) (1)

 

$

2,348

 

 

$

444

 

Committed amount (in thousands)

 

$

1,207,859

 

 

$

1,166,566

 

Key inputs (2)

 

 

 

 

 

 

Pull-through rate

 

 

 

 

 

 

Range

 

50.5% – 100%

 

 

51.0% – 98.0%

 

Weighted average

 

90.9%

 

 

86.3%

 

MSR fair value expressed as

 

 

 

 

 

 

Servicing fee multiple

 

 

 

 

 

 

Range

 

1.7 – 8.4

 

 

2.6 – 7.8

 

Weighted average

 

5.4

 

 

5.7

 

Percentage of unpaid principal balance

 

 

 

 

 

 

Range

 

0.4% – 3.2%

 

 

0.6% – 2.7%

 

Weighted average

 

1.9%

 

 

1.9%

 

 

 

(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 value of hedging derivatives are included in Net gains on investments and financings, Net gains on loans held for sale at fair value or Net loan servicing fees – from nonaffiliates – Mortgage servicing rights hedging results, as applicable, in the consolidated statements of income.

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 on investments and financings in the consolidated statements of income.

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, 2025

 

 

December 31, 2024

 

 

 

(dollars in thousands)

 

Fair value

 

$

5,999

 

 

$

4,060

 

Unpaid principal balance of loans in the reference pools

 

$

14,961,848

 

 

$

16,287,660

 

Key inputs (1)

 

 

 

 

 

 

Discount rate

 

 

 

 

 

 

Range

 

5.0% – 8.6%

 

 

7.1% – 9.1%

 

Weighted average

 

8.1%

 

 

8.8%

 

Voluntary prepayment speed (2)

 

 

 

 

 

 

Range

 

7.0% – 7.5%

 

 

6.9% – 7.5%

 

Weighted average

 

7.1%

 

 

7.0%

 

Involuntary prepayment speed (3)

 

 

 

 

 

 

Range

 

0.1% – 0.3%

 

 

0.1% – 0.3%

 

Weighted average

 

0.1%

 

 

0.1%

 

Remaining loss expectation

 

 

 

 

 

 

Range

 

0.4% – 1.4%

 

 

0.4% – 1.5%

 

Weighted average

 

0.5%

 

 

0.5%

 

 

(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 fair values of MSRs are derived from the net positive cash flows associated with the servicing agreements. The Company uses a discounted cash flow approach to estimate the fair values of MSRs. 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.

Beginning in the third quarter of 2025, the Company enhanced its discounted cash flow approach to estimate the period-end fair value of its MSRs with the adoption of an OAS discounted cash flow model. The OAS model allows the Company to account for the likelihood of interest rates moving along different paths as economic conditions change in its assessment of the fair value of MSRs as opposed to a single assumed rate path. Adoption of the OAS model did not have a significant effect on the fair value of MSRs.

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

MSRs are generally subject to loss in fair value when prepayment speed expectations and experience increase, when returns required by market participants (expressed as OAS or pricing spreads) increase, or when the annual per-loan cost of servicing increases. 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,

 

 

 

2025

 

 

2024

 

 

2023

 

MSRs recognized (in thousands)

 

$

190,141

 

 

$

219,001

 

 

$

292,527

 

Unpaid principal balance of underlying loans (in thousands)

 

$

10,233,335

 

 

$

12,240,231

 

 

$

15,966,491

 

Weighted average annual servicing fee rate (in basis points)

 

33

 

 

35

 

 

39

 

Key inputs (1)

 

 

 

 

 

 

 

 

 

Prepayment speed (2)

 

 

 

 

 

 

 

 

 

Range

 

8.7% – 15.5%

 

 

8.7% – 26.7%

 

 

10.1% – 22.7%

 

Weighted average

 

9.8%

 

 

12.2%

 

 

12.4%

 

Equivalent average life (in years)

 

 

 

 

 

 

 

 

 

Range

 

3.7 – 8.3

 

 

3.4 – 8.1

 

 

2.8 - 7.2

 

Weighted average

 

8.0

 

 

6.9

 

 

6.8

 

Pricing spread (3)

 

 

 

 

 

 

 

 

 

Range

 

4.8% – 10.0%

 

 

5.4% – 8.5%

 

 

5.5% – 8.8%

 

Weighted average

 

5.6%

 

 

5.6%

 

 

5.8%

 

Annual per-loan cost of servicing

 

 

 

 

 

 

 

 

 

Range

 

$68 – $91

 

 

$68 – $87

 

 

$68 – $83

 

Weighted average

 

$69

 

 

$69

 

 

$70

 

 

(1)
Weighted-average inputs are based on the UPB of the underlying loans.
(2)
Annual total prepayment speed is measured using life total CPR, which includes both voluntary and involuntary prepayments. Equivalent average life is provided as supplementary information.
(3)
Pricing spread represents a margin that is applied to a reference interest rate’s forward rate curve to develop periodic discount rates. The Company applies a pricing spread to a derived Treasury yield curve for purposes of discounting cash flows relating to its initial recognition of MSRs.

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, 2025

 

 

December 31, 2024

 

Fair value (in thousands)

 

$

3,644,702

 

 

$

3,867,394

 

Unpaid principal balance of underlying loans (in thousands)

 

$

215,781,639

 

 

$

226,237,613

 

Weighted average annual servicing fee rate (in basis points)

 

28

 

 

27

 

Weighted average note interest rate

 

3.9%

 

 

3.8%

 

Key inputs (1)

 

 

 

 

 

 

Prepayment speed (2)

 

 

 

 

 

 

Range

 

7.0% – 21.5%

 

 

6.5% – 17.7%

 

Weighted average

 

8.4%

 

 

6.7%

 

Equivalent average life (in years)

 

 

 

 

 

 

Range

 

2.1 – 7.9

 

 

2.4 – 8.9

 

Weighted average

 

7.7

 

 

8.6

 

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

 

 

 

 

 

 

5% adverse change

 

$(61,563)

 

 

$(51,798)

 

10% adverse change

 

$(120,960)

 

 

$(102,010)

 

20% adverse change

 

$(233,683)

 

 

$(197,970)

 

Option-adjusted spread (4)

 

 

 

 

 

 

Range

 

3.6% – 6.2%

 

 

 

 

Weighted average

 

3.6%

 

 

 

 

Pricing spread (5)

 

 

 

 

 

 

Range

 

 

 

 

5.4% – 8.1%

 

Weighted average

 

 

 

 

5.4%

 

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

 

 

 

 

 

 

5% adverse change

 

$(30,295)

 

 

$(47,568)

 

10% adverse change

 

$(60,089)

 

 

$(94,018)

 

20% adverse change

 

$(118,218)

 

 

$(183,710)

 

Annual per-loan cost of servicing

 

 

 

 

 

 

Range

 

$68 – $90

 

 

$69 – $89

 

Weighted average

 

$68

 

 

$69

 

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

 

 

 

 

 

 

5% adverse change

 

$(15,979)

 

 

$(16,645)

 

10% adverse change

 

$(31,959)

 

 

$(33,291)

 

20% adverse change

 

$(63,918)

 

 

$(66,582)

 

 

(1)
Weighted-average inputs are based on the UPB of the underlying loans.
(2)
Prepayment speed is measured using life total CPR, which includes both voluntary and involuntary prepayments. Equivalent average life is provided as supplementary information.
(3)
These sensitivity analyses are limited in that they were performed as of a particular date; only contemplate the movements in the indicated inputs; do not incorporate changes to other inputs; are subject to the accuracy of the models and inputs used; and do not incorporate other factors that would affect the Company’s overall financial performance in such events, including operational adjustments made to account for changing circumstances. For these reasons, these analyses should not be viewed as earnings forecasts.
(4)
The option-adjusted spread is a margin that is applied to a reference interest rate’s projected curve to develop periodic discount rates. Beginning July 1, 2025, the Company applies an option-adjusted spread to multiple simulated paths of a derived Treasury yield curve for purposes of discounting cash flows relating to period-end MSRs.
(5)
Pricing spread represents a margin that is applied to a reference interest rate’s forward rate curve to develop periodic discount rates. Through June 30, 2025, the Company applied a fixed pricing spread to a derived Treasury yield curve for purposes of discounting cash flows relating to period-end MSRs.

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 income.

v3.25.4
Mortgage-Backed Securities
12 Months Ended
Dec. 31, 2025
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,

 

 

 

2025

 

 

2024

 

 

2023

 

 

 

(in thousands)

 

Balance at beginning of year

 

$

4,063,706

 

 

$

4,836,292

 

 

$

4,462,601

 

Purchases

 

 

942,462

 

 

 

638,155

 

 

 

3,172,193

 

Sales

 

 

(194,513

)

 

 

(1,071,692

)

 

 

(2,629,540

)

Repayments

 

 

(558,465

)

 

 

(417,279

)

 

 

(349,479

)

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

 

 

51,325

 

 

 

28,773

 

 

 

1,986

 

Valuation adjustments, net

 

 

148,344

 

 

 

(80,838

)

 

 

74,984

 

 

 

199,669

 

 

 

(52,065

)

 

 

76,970

 

Balance at end of year

 

$

4,452,859

 

 

$

4,063,706

 

 

$

4,836,292

 

 

 

 

December 31, 2025

 

 

December 31, 2024

 

 

 

(in thousands)

 

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

 

$

4,452,859

 

 

$

4,063,706

 

 

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

 

 

 

December 31, 2025

 

Security type (1)

 

Principal
balance or notional amount

 

 

Purchase discounts, net

 

 

Cumulative
valuation
changes

 

 

Fair value

 

 

 

(in thousands)

 

Agency fixed-rate pass-through

 

$

2,805,895

 

 

$

(2,125

)

 

$

46,677

 

 

$

2,850,447

 

Floating rate collateralized mortgage obligations

 

 

850,172

 

 

 

(1,249

)

 

 

7,074

 

 

 

855,997

 

Principal-only stripped

 

 

610,256

 

 

 

(115,385

)

 

 

26,258

 

 

 

521,129

 

Senior non-Agency

 

 

155,369

 

 

 

(3,039

)

 

 

454

 

 

 

152,784

 

 

$

4,421,692

 

 

$

(121,798

)

 

$

80,463

 

 

 

4,380,357

 

Interest-only stripped

 

$

344,592

 

 

 

 

 

 

 

 

 

72,502

 

 

 

 

 

 

 

 

 

 

 

 

$

4,452,859

 

 

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

 

 

 

December 31, 2024

 

Security type

 

Principal
balance or notional amount

 

 

Purchase discounts, net

 

 

Cumulative
valuation
changes

 

 

Fair value

 

 

 

(in thousands)

 

Agency fixed-rate pass-through

 

$

3,132,005

 

 

$

(901

)

 

$

(51,612

)

 

$

3,079,492

 

Principal-only stripped

 

 

776,455

 

 

 

(160,960

)

 

 

(19,195

)

 

 

596,300

 

Subordinate credit-linked

 

 

174,813

 

 

 

(4,292

)

 

 

25,951

 

 

 

196,472

 

Senior non-Agency

 

 

111,479

 

 

 

(3,269

)

 

 

(3,028

)

 

 

105,182

 

 

$

4,194,752

 

 

$

(169,422

)

 

$

(47,884

)

 

 

3,977,446

 

Interest-only stripped

 

$

386,040

 

 

 

 

 

 

 

 

 

86,260

 

 

 

 

 

 

 

 

 

 

 

$

4,063,706

 

v3.25.4
Loans Held for Sale at Fair Value
12 Months Ended
Dec. 31, 2025
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Abstract]  
Loans Held for Sale at Fair Value

Note 9—Loans Held for Sale at Fair Value

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

 

Loan type

 

December 31, 2025

 

 

December 31, 2024

 

 

 

(in thousands)

 

Held for sale to nonaffiliates—GSE eligible (1)

 

$

2,232,706

 

 

$

1,311,754

 

Jumbo

 

 

433,027

 

 

 

194,485

 

Non-qualified

 

 

30,084

 

 

 

 

Home equity lines of credit

 

 

942

 

 

 

1,368

 

Repurchased pursuant to representations and warranties

 

 

2,639

 

 

 

6,603

 

 

 

 

2,699,398

 

 

 

1,514,210

 

Held for sale to PLS:

 

 

 

 

 

 

GSE eligible

 

 

 

 

 

175,145

 

Government insured or guaranteed

 

 

 

 

 

426,963

 

 

 

 

 

 

 

602,108

 

 

$

2,699,398

 

 

$

2,116,318

 

Loans pledged to secure:

 

 

 

 

 

 

Assets sold under agreements to repurchase

 

$

2,676,700

 

 

$

2,075,473

 

Mortgage loan participation purchase and sale agreements

 

 

 

 

 

12,142

 

 

$

2,676,700

 

 

$

2,087,615

 

 

(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.
v3.25.4
Loans Held for Investment at Fair Value
12 Months Ended
Dec. 31, 2025
Mortgage Loans At Fair Value [Abstract]  
Loans Held for Investment at Fair Value

Note 10—Loans Held for Investment at Fair Value

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

Following is a summary of the distribution of the Company’s loans held for investment:

 

Loan type

 

December 31, 2025

 

 

December 31, 2024

 

 

 

(in thousands)

 

Loans in variable interest entities:

 

 

 

 

 

 

Agency-conforming loans secured by:

 

 

 

 

 

 

Non-owner occupied properties

 

$

6,332,497

 

 

$

2,146,328

 

Owner occupied properties

 

 

588,788

 

 

 

 

Fixed interest rate jumbo loans

 

 

1,609,654

 

 

 

45,381

 

 

 

8,530,939

 

 

 

2,191,709

 

Distressed loans

 

 

1,705

 

 

 

1,866

 

 

$

8,532,644

 

 

$

2,193,575

 

Loans held for investment pledged to secure:

 

 

 

 

 

 

Asset-backed financings at fair value (1)

 

$

8,530,939

 

 

$

2,191,709

 

Assets sold under agreements to repurchase

 

 

 

 

 

160

 

 

$

8,530,939

 

 

$

2,191,869

 

 

(1)
As discussed in Note 6Variable Interest EntitiesSubordinate and Senior Non-Agency Mortgage-Backed Securities, the Company holds a portion of the securities issued by the VIEs. At December 31, 2025 and December 31, 2024, $648.2 million and $130.8 million, respectively, of such retained securities were pledged to secure Assets sold under agreements to repurchase.
v3.25.4
Derivative and Credit Risk Transfer Strip Assets and Liabilities
12 Months Ended
Dec. 31, 2025
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, 2025

 

 

December 31, 2024

 

 

 

(in thousands)

 

Derivative assets with nonaffiliates

 

$

49,696

 

 

$

56,840

 

Derivative assets with PennyMac Financial Services, Inc.

 

$

6,247

 

 

$

 

 

 

 

 

 

 

Derivative liabilities with nonaffiliates

 

$

933

 

 

$

3,291

 

Credit risk transfer strip liabilities

 

 

5,999

 

 

 

4,060

 

 

$

6,932

 

 

$

7,351

 

Derivative liabilities with PennyMac Financial Services, Inc.

 

$

2,257

 

 

$

 

 

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, 2025

 

 

December 31, 2024

 

 

 

 

 

 

Fair value

 

 

 

 

 

Fair value

 

 

 

Notional

 

 

Derivative

 

 

Derivative

 

 

Notional

 

 

Derivative

 

 

Derivative

 

Instrument

 

amount (1)

 

 

assets

 

 

liabilities

 

 

amount (1)

 

 

assets

 

 

liabilities

 

 

(in thousands)

 

Nonaffiliates:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Hedging derivatives subject to master netting
  arrangements (2):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Call options on interest rate futures purchase contracts

 

 

3,250,000

 

 

$

1,289

 

 

$

 

 

 

500,000

 

 

$

156

 

 

$

 

Put options on interest rate futures purchase contracts

 

 

2,500,000

 

 

 

4,109

 

 

 

 

 

 

1,690,000

 

 

 

6,372

 

 

 

 

Forward purchase contracts

 

 

3,703,628

 

 

 

4,113

 

 

 

158

 

 

 

1,154,515

 

 

 

614

 

 

 

6,336

 

Forward sale contracts

 

 

7,933,760

 

 

 

2,381

 

 

 

17,340

 

 

 

7,080,982

 

 

 

54,056

 

 

 

1,753

 

MBS put options

 

 

 

 

 

 

 

 

 

 

 

450,000

 

 

 

2,114

 

 

 

 

Bond futures

 

 

1,896,100

 

 

 

 

 

 

 

 

 

1,713,000

 

 

 

 

 

 

 

Swap futures

 

 

751,200

 

 

 

 

 

 

 

 

 

951,200

 

 

 

 

 

 

 

Other derivatives not subject to master netting arrangements:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CRT derivatives

 

 

455,682

 

 

 

32,659

 

 

 

 

 

 

4,961,644

 

 

 

29,377

 

 

 

 

Interest rate lock commitments

 

 

 

 

 

 

 

 

 

 

 

1,166,566

 

 

 

3,562

 

 

 

3,118

 

Total derivative instruments before netting

 

 

 

 

 

44,551

 

 

 

17,498

 

 

 

 

 

 

96,251

 

 

 

11,207

 

Netting

 

 

 

 

 

5,145

 

 

 

(16,565

)

 

 

 

 

 

(39,411

)

 

 

(7,916

)

 

 

 

 

$

49,696

 

 

$

933

 

 

 

 

 

$

56,840

 

 

$

3,291

 

 PennyMac Financial Services, Inc.:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate lock commitments not subject to master netting
    arrangements

 

 

1,207,859

 

 

 

4,605

 

 

 

2,257

 

 

 

 

 

 

 

 

 

 

Forward purchase contract subject to master netting arrangement

 

 

250,638

 

 

 

1,784

 

 

 

142

 

 

 

 

 

 

 

 

 

 

Total derivatives before netting

 

 

 

 

 

6,389

 

 

 

2,399

 

 

 

 

 

 

 

 

 

 

Netting

 

 

 

 

 

(142

)

 

 

(142

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

6,247

 

 

$

2,257

 

 

 

 

 

$

 

 

$

 

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

 

 

 

 

$

21,710

 

 

 

 

 

 

 

 

$

(31,497

)

 

 

 

Derivative assets pledged to secure:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets Sold Under Agreements to Repurchase and Notes
   payable secured by credit risk transfer and mortgage
  servicing assets

 

 

 

 

$

32,659

 

 

 

 

 

 

 

 

$

29,377

 

 

 

 

 

(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, 2025 and December 31, 2024, 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, 2025

 

 

December 31, 2024

 

 

 

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

 

$

32,659

 

 

$

 

 

$

 

 

$

32,659

 

 

$

29,377

 

 

$

 

 

$

 

 

$

29,377

 

Interest rate lock commitments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonaffiliates

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3,562

 

 

 

 

 

 

 

 

 

3,562

 

PennyMac Financial Services, Inc.

 

 

4,605

 

 

 

 

 

 

 

 

 

4,605

 

 

 

 

 

 

 

 

 

 

 

 

 

RJ O’Brien & Associates, LLC

 

 

5,398

 

 

 

 

 

 

 

 

 

5,398

 

 

 

6,528

 

 

 

 

 

 

 

 

 

6,528

 

Bank of America, N.A.

 

 

4,745

 

 

 

 

 

 

 

 

 

4,745

 

 

 

3,150

 

 

 

 

 

 

 

 

 

3,150

 

Morgan Stanley & Co. LLC

 

 

3,500

 

 

 

 

 

 

 

 

 

3,500

 

 

 

9,303

 

 

 

 

 

 

 

 

 

9,303

 

PennyMac Financial Services, Inc.

 

 

1,642

 

 

 

 

 

 

 

 

 

1,642

 

 

 

 

 

 

 

 

 

 

 

 

 

Goldman Sachs & Co. LLC

 

 

950

 

 

 

 

 

 

 

 

 

950

 

 

 

251

 

 

 

 

 

 

 

 

 

251

 

Wells Fargo Securities, LLC

 

 

603

 

 

 

 

 

 

 

 

 

603

 

 

 

895

 

 

 

 

 

 

 

 

 

895

 

Mizuho Financial Group

 

 

442

 

 

 

 

 

 

 

 

 

442

 

 

 

 

 

 

 

 

 

 

 

 

 

BNP Paribas

 

 

236

 

 

 

 

 

 

 

 

 

236

 

 

 

 

 

 

 

 

 

 

 

 

 

Citigroup Global Markets Inc.

 

 

217

 

 

 

 

 

 

 

 

 

217

 

 

 

712

 

 

 

 

 

 

 

 

 

712

 

Ellington Management

 

 

198

 

 

 

 

 

 

 

 

 

198

 

 

 

 

 

 

 

 

 

 

 

 

 

Metro Life Ins Co

 

 

151

 

 

 

 

 

 

 

 

 

151

 

 

 

 

 

 

 

 

 

 

 

 

 

Nomura

 

 

137

 

 

 

 

 

 

 

 

 

137

 

 

 

 

 

 

 

 

 

 

 

 

 

Barclays Capital Inc.

 

 

103

 

 

 

 

 

 

 

 

 

103

 

 

 

12

 

 

 

 

 

 

 

 

 

12

 

J.P. Morgan Securities LLC

 

 

102

 

 

 

 

 

 

 

 

 

102

 

 

 

1,237

 

 

 

 

 

 

 

 

 

1,237

 

Other

 

 

255

 

 

 

 

 

 

 

 

 

255

 

 

 

1,813

 

 

 

 

 

 

 

 

 

1,813

 

 

$

55,943

 

 

$

 

 

$

 

 

$

55,943

 

 

$

56,840

 

 

$

 

 

$

 

 

$

56,840

 

 

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, 2025

 

 

December 31, 2024

 

 

 

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:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonaffiliates

 

$

 

 

$

 

 

$

 

 

$

 

 

$

3,118

 

 

$

 

 

$

 

 

$

3,118

 

PennyMac Financial Services, Inc.

 

 

2,257

 

 

 

 

 

 

 

 

 

2,257

 

 

 

 

 

 

 

 

 

 

 

 

 

J.P. Morgan Securities LLC

 

 

1,536,038

 

 

 

(1,536,038

)

 

 

 

 

 

 

 

 

1,695,007

 

 

 

(1,695,007

)

 

 

 

 

 

 

Atlas Securitized Products, L.P.

 

 

1,216,779

 

 

 

(1,216,779

)

 

 

 

 

 

 

 

 

609,780

 

 

 

(609,780

)

 

 

 

 

 

 

Bank of America, N.A.

 

 

1,074,334

 

 

 

(1,074,334

)

 

 

 

 

 

 

 

 

787,883

 

 

 

(787,883

)

 

 

 

 

 

 

Santander US Capital

 

 

952,951

 

 

 

(952,933

)

 

 

 

 

 

18

 

 

 

362,196

 

 

 

(362,196

)

 

 

 

 

 

 

Wells Fargo Securities, LLC

 

 

782,547

 

 

 

(782,547

)

 

 

 

 

 

 

 

 

670,605

 

 

 

(670,605

)

 

 

 

 

 

 

RBC Capital Markets, L.P.

 

 

438,781

 

 

 

(438,781

)

 

 

 

 

 

 

 

 

353,765

 

 

 

(353,765

)

 

 

 

 

 

 

Barclays Capital Inc.

 

 

431,016

 

 

 

(431,016

)

 

 

 

 

 

 

 

 

545,678

 

 

 

(545,678

)

 

 

 

 

 

 

Citigroup Global Markets Inc.

 

 

397,162

 

 

 

(397,162

)

 

 

 

 

 

 

 

 

431,201

 

 

 

(431,201

)

 

 

 

 

 

 

Morgan Stanley & Co. LLC

 

 

319,500

 

 

 

(319,500

)

 

 

 

 

 

 

 

 

280,561

 

 

 

(280,561

)

 

 

 

 

 

 

Nomura Holdings America, Inc

 

 

231,308

 

 

 

(231,308

)

 

 

 

 

 

 

 

 

36

 

 

 

 

 

 

 

 

 

36

 

Daiwa Capital Markets

 

 

195,268

 

 

 

(195,268

)

 

 

 

 

 

 

 

 

230,033

 

 

 

(230,033

)

 

 

 

 

 

 

Goldman Sachs & Co. LLC

 

 

151,274

 

 

 

(151,274

)

 

 

 

 

 

 

 

 

311,997

 

 

 

(311,997

)

 

 

 

 

 

 

Bank of Montreal

 

 

160,388

 

 

 

(160,324

)

 

 

 

 

 

64

 

 

 

72,859

 

 

 

(72,859

)

 

 

 

 

 

 

Mizuho Financial Group

 

 

81,701

 

 

 

(81,701

)

 

 

 

 

 

 

 

 

98,196

 

 

 

(98,121

)

 

 

 

 

 

75

 

BNP Paribas

 

 

54,191

 

 

 

(54,191

)

 

 

 

 

 

 

 

 

59,729

 

 

 

(59,729

)

 

 

 

 

 

 

Other

 

 

851

 

 

 

 

 

 

 

 

 

851

 

 

 

62

 

 

 

 

 

 

 

 

 

62

 

 

$

8,026,346

 

 

$

(8,023,156

)

 

$

 

 

$

3,190

 

 

$

6,512,706

 

 

$

(6,509,415

)

 

$

 

 

$

3,291

 

 

(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 income line items where such gains and losses are included:

 

 

 

 

 

Year ended December 31,

 

Derivative activity

 

Consolidated statements of income line

 

2025

 

 

2024

 

 

2023

 

 

 

 

 

(in thousands)

 

Interest rate lock commitments

 

Net gains on loans held for sale (1)

 

$

1,904

 

 

$

(7,089

)

 

$

8,010

 

CRT derivatives

 

Net gains on investments and financings

 

$

14,336

 

 

$

27,020

 

 

$

56,544

 

Hedged item:

 

 

 

 

 

 

 

 

 

 

 

Interest rate lock commitments and loans
  held for sale

 

Net gains on loans held for sale

 

$

(90,108

)

 

$

19,896

 

 

$

4,636

 

Mortgage servicing rights

 

Net loan servicing fees

 

$

(172,931

)

 

$

(226,608

)

 

$

(92,775

)

Assets sold under agreements to
  repurchase

 

Net gains on investments and financings

 

$

 

 

$

20,098

 

 

$

(83,201

)

 

(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.
v3.25.4
Mortgage Servicing Rights
12 Months Ended
Dec. 31, 2025
Text Block [Abstract]  
Mortgage Servicing Rights

Note 12—Mortgage Servicing Rights

Following is a summary of MSRs:

 

 

 

Year ended December 31,

 

 

 

 

2025

 

 

2024

 

 

2023

 

 

 

(in thousands)

 

 

Balance at beginning of year

 

$

3,867,394

 

 

$

3,919,107

 

 

$

4,012,737

 

 

MSRs resulting from loan sales

 

 

190,141

 

 

 

219,001

 

 

 

292,527

 

 

Purchases

 

 

 

 

 

29,429

 

 

 

16,258

 

 

Transfers to Agency of mortgage servicing rights relating to
  delinquent loans

 

 

876

 

 

 

561

 

 

 

(472

)

 

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)

 

 

(33,846

)

 

 

217,182

 

 

 

87,811

 

 

Other changes in fair value (2)

 

 

(379,863

)

 

 

(387,591

)

 

 

(384,658

)

 

 

 

(413,709

)

 

 

(170,409

)

 

 

(296,847

)

 

Balance at end of year

 

$

3,644,702

 

 

$

3,867,394

 

 

$

3,919,107

 

 

 

 

 

December 31, 2025

 

 

December 31, 2024

 

 

 

(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

 

$

3,582,211

 

 

$

3,807,065

 

 

(1)
Primarily reflects changes in prepayment speed, pricing spread or OAS, 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 income and are summarized below:

 

 

 

Year ended December 31,

 

 

 

 

2025

 

 

2024

 

 

2023

 

 

 

 

(in thousands)

Contractually specified servicing fees

 

$

608,025

 

 

$

644,642

 

 

$

659,438

 

 

Ancillary and other fees:

 

 

 

 

 

 

 

 

 

 

Late charges

 

 

4,244

 

 

 

4,056

 

 

 

3,352

 

 

Other

 

 

13,186

 

 

 

10,666

 

 

 

13,656

 

 

 

 

17,430

 

 

 

14,722

 

 

 

17,008

 

 

 

$

625,455

 

 

$

659,364

 

 

$

676,446

 

 

Average UPB of underlying loans

 

$

221,436,947

 

 

$

228,705,758

 

 

$

231,203,032

 

 

 

 

 

 

 

 

 

 

 

 

 

v3.25.4
Other Assets
12 Months Ended
Dec. 31, 2025
Other Assets [Abstract]  
Other Assets

Note 13— Other Assets

Other assets are summarized below:

 

 

 

December 31, 2025

 

 

December 31, 2024

 

 

 

(dollars in thousands)

 

Margin deposits

 

$

221,310

 

 

$

346,241

 

Interest receivable

 

 

72,684

 

 

 

38,661

 

Servicing fees receivable

 

 

9,586

 

 

 

10,820

 

Correspondent lending receivables

 

 

7,083

 

 

 

3,930

 

Other receivables

 

 

25,458

 

 

 

16,706

 

Real estate acquired in settlement of loans

 

 

1,421

 

 

 

2,464

 

Other

 

 

36,042

 

 

 

19,399

 

 

 

$

373,584

 

 

$

438,221

 

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

 

$

 

 

$

527

 

 

v3.25.4
Short-Term Debt
12 Months Ended
Dec. 31, 2025
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, 2025.

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,

 

 

 

2025

 

 

2024

 

 

2023

 

 

 

(dollars in thousands)

 

Weighted average interest rate (1)

 

 

5.10

%

 

 

5.94

%

 

 

5.91

%

Average balance

 

$

6,776,255

 

 

$

5,478,037

 

 

$

6,306,627

 

Total interest expense

 

$

352,660

 

 

$

331,800

 

 

$

378,367

 

Maximum daily amount outstanding

 

$

9,009,673

 

 

$

7,865,435

 

 

$

9,460,676

 

 

(1)
Excludes the effect of amortization of debt issuance costs and non-utilization fees of $7.1 million, $6.4 million and $5.5 million for the years ended December 31, 2025, 2024 and 2023, respectively.

 

 

 

December 31, 2025

 

 

December 31, 2024

 

 

 

(dollars in thousands)

 

Carrying value:

 

 

 

 

 

 

Unpaid principal balance

 

$

8,023,156

 

 

$

6,509,415

 

Unamortized debt issuance costs

 

 

(4,555

)

 

 

(8,477

)

 

 

$

8,018,601

 

 

$

6,500,938

 

Weighted average interest rate

 

 

4.71

%

 

 

5.37

%

Available borrowing capacity (1):

 

 

 

 

 

 

Committed

 

$

595,085

 

 

$

565,488

 

Uncommitted

 

 

5,032,598

 

 

 

4,559,239

 

 

$

5,627,683

 

 

$

5,124,727

 

Margin deposits placed with counterparties included in Other assets, net

 

$

174,598

 

 

$

296,922

 

Assets securing agreements to repurchase:

 

 

 

 

 

 

Mortgage-backed securities at fair value

 

$

4,452,859

 

 

$

4,063,706

 

Loans held for sale at fair value

 

$

2,676,700

 

 

$

2,075,473

 

Loans held for investment at fair value:

 

 

 

 

 

 

Securities retained in asset-backed financings

 

$

648,159

 

 

$

130,839

 

Distressed

 

$

 

 

$

160

 

Credit risk transfer arrangements:

 

 

 

 

 

 

Derivative assets

 

$

12,622

 

 

$

 

Deposits securing credit risk transfer arrangements

 

$

176,694

 

 

$

199,965

 

Mortgage servicing rights at fair value (2)

 

$

1,765,572

 

 

$

1,906,043

 

Servicing advances (3)

 

$

44,653

 

 

$

50,333

 

Real estate acquired in settlement of loans

 

$

 

 

$

527

 

 

(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.
(3)
Beneficial interests in Fannie Mae servicing advances are pledged to secure Assets sold under agreements to repurchase.

Maturities

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

 

Remaining maturity at December 31, 2025 (1)

 

Unpaid
principal
balance

 

 

 

(in thousands)

 

Within 30 days

 

$

2,360,165

 

Over 30 to 90 days

 

 

5,207,433

 

Over 90 days to 180 days

 

 

 

Over 180 days to 1 year

 

 

39,539

 

Over 1 year to 2 years

 

 

416,019

 

 

$

8,023,156

 

Weighted average maturity (in months)

 

 

2.3

 

 

(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 decrease.

Amounts at Risk

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, 2025:

Loans and MSRs

 

 

 

 

 

Weighted-average maturity

Counterparty

 

Amounts at risk

 

 

Advances

 

Facility

 

 

(in thousands)

 

 

 

 

 

Atlas Securitized Products, L.P.

 

$

466,207

 

 

February 15, 2026

 

December 10, 2027

Bank of America, N.A.

 

$

63,914

 

 

January 5, 2026

 

February 17, 2027

Santander US Capital

 

$

31,295

 

 

April 10, 2026

 

April 10, 2026

Morgan Stanley & Co. LLC

 

$

48,663

 

 

February 21, 2026

 

September 26, 2027

Citibank, N.A.

 

$

57,419

 

 

February 22, 2026

 

August 7, 2026

Nomura Holdings America, Inc.

 

$

61,526

 

 

January 5, 2026

 

January 5, 2026

Goldman Sachs & Co. LLC

 

$

44,766

 

 

March 6, 2026

 

May 7, 2026

JPMorgan Chase & Co.

 

$

5,151

 

 

February 16, 2026

 

June 28, 2026

RBC Capital Markets, L.P.

 

$

26,024

 

 

March 16, 2026

 

October 23, 2026

Wells Fargo Securities, LLC

 

$

8,740

 

 

February 15, 2026

 

March 19, 2027

Barclays Capital Inc.

 

$

7,407

 

 

March 4, 2026

 

March 6, 2026

BNP Paribas

 

$

5,207

 

 

February 12, 2026

 

June 17, 2026

 

 

 

Securities

 

Counterparty

 

Amounts at risk

 

 

Weighted-average maturity

 

 

(in thousands)

 

 

 

Bank of America, N.A.

 

$

25,023

 

 

February 8, 2026

Santander US Capital

 

$

39,385

 

 

January 26, 2026

Citibank, N.A.

 

$

7,309

 

 

January 20, 2026

Goldman Sachs & Co. LLC

 

$

11,540

 

 

January 15, 2026

JPMorgan Chase & Co.

 

$

50,409

 

 

January 31, 2026

Wells Fargo Securities, LLC

 

$

24,014

 

 

January 31, 2026

Barclays Capital Inc.

 

$

12,815

 

 

January 22, 2026

Bank of Montreal

 

$

9,886

 

 

February 7, 2026

Daiwa Capital Markets America Inc.

 

$

5,374

 

 

February 5, 2026

Mizuho Financial Group

 

$

4,168

 

 

January 24, 2026

 

 

 

 

 

 

 

CRT arrangements

 

Counterparty

 

Amounts at risk

 

 

Weighted-average maturity

 

 

(in thousands)

 

 

 

Morgan Stanley & Co. LLC

 

$

17,502

 

 

January 28, 2026

RBC Capital Markets, L.P.

 

$

25,105

 

 

March 25, 2026

Mortgage Loan Participation Purchase and Sale Agreement

One of the borrowing facilities secured by loans held 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 Freddie Mac or Fannie Mae, are sold to the lender pending the securitization of such loans and the sale of the resulting security. The commitment between the Company and a nonaffiliate to sell such security 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,

 

 

 

2025

 

 

2024

 

 

2023

 

 

 

(dollars in thousands)

 

Average balance

 

$

4,937

 

 

$

17,852

 

 

$

19,079

 

Weighted average interest rate (1)

 

 

5.71

%

 

 

6.54

%

 

 

6.50

%

Total interest expense

 

$

407

 

 

$

1,292

 

 

$

1,365

 

Maximum daily amount outstanding

 

$

49,266

 

 

$

78,068

 

 

$

90,565

 

 

(1)
Excludes the effect of amortization of debt issuance costs of $125,000 for each of the years ended December 31, 2025, 2024 and 2023.

 

 

 

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 held for sale pledged to secure mortgage loan participation
   purchase and sale agreement

 

$

12,142

 

v3.25.4
Long-Term Debt
12 Months Ended
Dec. 31, 2025
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

 

 

$

136,771

 

 

3.10%

 

September 27, 2028

2024 2R

 

April 4, 2024

 

$

247,000

 

 

 

211,543

 

 

3.35%

 

March 29, 2027

2024 1R

 

March 6, 2024

 

$

306,000

 

 

 

260,589

 

 

3.50%

 

March 1, 2027

 

 

 

 

 

 

$

608,903

 

 

 

 

 

 

(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 relating to loans serviced for Fannie Mae guaranteed securities 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, a Series 2024-VF2 Note, and a Series 2025-VF1 Note, together the "FMSR VFNs") by the Issuer Trusts to PMC and PMH in exchange for participation certificates for MSRs and ESS. The FMSR VFNs are then sold by PMC and PMH 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 is effected through the issuance of term notes (the “FT-1 Term Notes”) by the Issuer Trusts 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, FTL-1 Term Loans and the FMSR VFNs are secured by 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

 

 

 

 

$

725,000

 

 

 

 

 

 

 

 

(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-1 Term 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.

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 may 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,

 

 

 

2025

 

 

2024

 

 

2023

 

 

 

(dollars in thousands)

 

Average balance

 

$

2,598,600

 

 

$

2,883,379

 

 

$

2,969,174

 

Weighted average interest rate (1)

 

 

7.59

%

 

 

8.67

%

 

 

8.42

%

Total interest expense

 

$

205,517

 

 

$

261,008

 

 

$

257,601

 

 

(1)
Excludes the effect of amortization of debt issuance costs of $8.4 million, $11.0 million and $7.5 million for the years ended December 31, 2025, 2024 and 2023, respectively.

 

 

 

December 31, 2025

 

 

December 31, 2024

 

 

 

(dollars in thousands)

 

Carrying value:

 

 

 

 

 

 

Unpaid principal balance:

 

 

 

 

 

 

Credit risk transfer arrangement financing

 

$

608,903

 

 

$

710,329

 

Fannie Mae mortgage servicing rights financing

 

 

725,000

 

 

 

1,075,000

 

Freddie Mac mortgage servicing rights and servicing advance
    receivable financing

 

 

927,943

 

 

 

1,153,486

 

 

 

 

2,261,846

 

 

 

2,938,815

 

Unamortized debt issuance costs

 

 

(3,718

)

 

 

(9,025

)

 

$

2,258,128

 

 

$

2,929,790

 

Weighted average interest rate

 

 

6.91

%

 

 

7.60

%

Assets securing notes payable:

 

 

 

 

 

 

Mortgage servicing rights at fair value (1)

 

$

3,582,211

 

 

$

3,807,065

 

Servicing advances (1)

 

$

33,777

 

 

$

39,063

 

Credit risk transfer arrangements:

 

 

 

 

 

 

Deposits securing credit risk transfer arrangements

 

$

832,640

 

 

$

910,743

 

Derivative assets

 

$

20,037

 

 

$

29,377

 

 

(1)
Beneficial interests in Freddie Mac MSRs and related servicing advances 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

The exchangeable senior notes are summarized below:

 

Initial issuance date

 

Unpaid principal balance

 

 

Annual interest rate

 

Exchange rates (1)

 

Maturity date (2)

 

(in thousands)

 

 

 

 

 

 

 

May 24, 2024 (3)

 

$

366,500

 

 

8.50%

 

63.3332

 

June 1, 2029

March 5, 2021

 

 

345,000

 

 

5.50%

 

46.1063

 

March 15, 2026

 

 

$

711,500

 

 

 

 

 

 

 

 

 

(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, $75 million issued on December 15, 2025 and $75 million issued on December 22, 2025.

The exchangeable senior 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 senior notes are fully and unconditionally guaranteed by the Company.

Senior Notes

The senior notes are summarized below:

 

Issuance date

 

Unpaid principal balance

 

 

Annual interest
rate spread

 

Maturity date

 

Redemption date (1)

 

(in thousands)

 

 

 

 

 

 

 

June 2025

 

$

105,000

 

 

9.00%

 

June 15, 2030

 

June 15, 2027

February 2025

 

 

172,500

 

 

9.00%

 

February 15, 2030

 

February 15, 2027

September 2023

 

 

53,500

 

 

8.50%

 

September 30, 2028

 

September 30, 2025

 

 

$

331,000

 

 

 

 

 

 

 

 

(1)
Redemptions may be made on or after the date indicated.

Interest on the senior notes is payable quarterly. PMT may redeem for cash all or any portion of the 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 applicable redemption date.

The 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,

 

 

 

2025

 

 

2024

 

 

2023

 

 

 

(in thousands)

 

Average balance

 

$

832,644

 

 

$

704,279

 

 

$

561,877

 

Weighted average interest rate (1)

 

 

7.37

%

 

 

6.24

%

 

 

5.65

%

Interest expense

 

$

66,071

 

 

$

48,000

 

 

$

34,969

 

 

(1)
Excludes the effect of amortization of debt issuance costs of $4.7 million, $4.1 million and $3.2 million for the years ended December 31, 2025, 2024 and 2023, respectively.

 

 

 

December 31, 2025

 

 

December 31, 2024

 

 

 

(in thousands)

 

Carrying value:

 

 

 

 

 

 

Unpaid principal balance

 

 

 

 

 

 

Exchangeable senior notes

 

$

711,500

 

 

$

561,500

 

Senior notes

 

 

331,000

 

 

 

53,500

 

 

 

 

1,042,500

 

 

 

615,000

 

Unamortized debt issuance costs

 

 

(14,200

)

 

 

(9,140

)

 

$

1,028,300

 

 

$

605,860

 

 

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,

 

 

 

2025

 

 

2024

 

 

2023

 

 

 

(dollars in thousands)

 

Average balance

 

$

4,456,128

 

 

$

1,612,065

 

 

$

1,354,803

 

Weighted average interest rate (1)

 

 

5.34

%

 

 

3.23

%

 

 

3.73

%

Total interest expense

 

$

226,918

 

 

$

55,763

 

 

$

49,988

 

 

(1)
Excludes the effect of (amortization) accrual of (premiums) debt issuance costs of $(11.0) million, $3.7 million and $(496,000) for the years ended December 31, 2025, 2024 and 2023, respectively.

 

 

 

December 31, 2025

 

 

December 31, 2024

 

 

 

(dollars in thousands)

 

Fair value

 

$

7,789,303

 

 

$

2,040,375

 

Unpaid principal balance

 

$

7,763,364

 

 

$

2,269,742

 

Weighted average interest rate

 

 

6.03

%

 

 

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 ending December 31,

 

 

 

 

 

Total

 

 

2026

 

 

2027

 

 

2028

 

 

2029

 

 

2030

 

 

Thereafter

 

 

(in thousands)

 

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

$

2,261,846

 

 

$

927,943

 

 

$

827,132

 

 

$

506,771

 

 

$

 

 

$

 

 

$

 

Unsecured senior notes

 

1,042,500

 

 

 

345,000

 

 

 

 

 

 

53,500

 

 

 

366,500

 

 

 

277,500

 

 

 

 

Interest-only security payable at fair value (2)

 

37,650

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

37,650

 

Asset-backed financings at fair value (2)

 

7,763,364

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

7,763,364

 

Total

$

11,105,360

 

 

$

1,272,943

 

 

$

827,132

 

 

$

560,271

 

 

$

366,500

 

 

$

277,500

 

 

$

7,801,014

 

 

(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.
v3.25.4
Liability for Losses Under Representations and Warranties
12 Months Ended
Dec. 31, 2025
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,

 

 

 

2025

 

 

2024

 

 

2023

 

 

(in thousands)

 

Balance, beginning of year

 

$

6,886

 

 

$

26,143

 

 

$

39,471

 

Provision for losses:

 

 

 

 

 

 

 

 

 

Pursuant to loan sales

 

 

1,070

 

 

 

1,246

 

 

 

2,449

 

Reduction in liability due to change in estimate

 

 

(2,193

)

 

 

(20,269

)

 

 

(15,228

)

Losses incurred

 

 

(479

)

 

 

(234

)

 

 

(549

)

Balance, end of year

 

$

5,284

 

 

$

6,886

 

 

$

26,143

 

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

 

$

214,182,746

 

 

$

222,063,618

 

 

$

227,456,712

 

v3.25.4
Commitments and Contingencies
12 Months Ended
Dec. 31, 2025
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, 2025

 

 

 

(in thousands)

 

Commitments to purchase loans held for sale from PLS

 

$

1,207,859

 

 

Legal Proceedings

From time to time, the Company may be involved in various legal and regulatory proceedings, lawsuits and claims 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 (the "District Court”), 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.

On August 20, 2024, the Company filed a Motion to Dismiss that was denied by the District Court in an order dated February 26, 2025. The Company responded by filing a motion to certify the order denying the motion for interlocutory appeal, and on May 5, 2025, the District Court issued an Order Granting Certification for Interlocutory Appeal and Staying Action. The Company subsequently petitioned the United States Court of Appeals for the Ninth Circuit (the “Ninth Circuit”) for permission to appeal, and that petition was granted by the Ninth Circuit in an order dated July 17, 2025. The appeal is fully briefed and remains pending.

At this time, the Company does not believe that a loss related to this matter is probable or reasonably estimable. The specific factors that limit the Company’s ability to reasonably estimate a loss or range of losses are the novelty of the legal theories under California’s Unfair Competition Law, the various claims for relief, including injunctive relief, and the early stage of the proceedings and uncertainty of the outcome. Accordingly, no accrual has been recorded in the Company’s consolidated financial statements for this matter. While no assurance can be provided as to the ultimate outcome of this claim, the Company and PCM plan to vigorously defend the matter.

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

v3.25.4
Shareholders' Equity
12 Months Ended
Dec. 31, 2025
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

 

 

2025

 

 

2024

 

 

2023

 

 

 

(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, 2025.

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, 2025, 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 and $73.4 million available for further share repurchases.

The Company made no share repurchases during the year ended December 31, 2025, or 2024 and has made cumulative repurchases under the Common Share repurchase program totaling $427.2 million, which includes $582,000 of transaction fees.

v3.25.4
Net Gains on Investments and Financings
12 Months Ended
Dec. 31, 2025
Investments, Debt and Equity Securities [Abstract]  
Net Gains on Investments and Financings

Note 19— Net Gains on Investments and Financings

Net gains on investments and financings are summarized below:

 

 

 

Year ended December 31,

 

 

 

2025

 

 

2024

 

 

2023

 

 

 

(in thousands)

 

Mortgage-backed securities

 

$

148,344

 

 

$

(80,838

)

 

$

74,984

 

Loans held for investment

 

 

112,838

 

 

 

15,516

 

 

 

17,439

 

CRT arrangements

 

 

48,370

 

 

 

113,670

 

 

 

182,555

 

Asset-backed financings

 

 

(96,439

)

 

 

(7,396

)

 

 

(13,678

)

Hedging derivatives

 

 

 

 

 

20,098

 

 

 

(83,201

)

 

$

213,113

 

 

$

61,050

 

 

$

178,099

 

v3.25.4
Net Gains on Loans Held for Sale
12 Months Ended
Dec. 31, 2025
Text Block [Abstract]  
Net Gains on Loans Held for Sale

Note 20— Net Gains on Loans Held for Sale

Net gains on loans held for sale are summarized below:

 

 

 

Year ended December 31,

 

 

 

2025

 

 

2024

 

 

2023

 

 

(in thousands)

 

From nonaffiliates:

 

 

 

 

 

 

 

 

 

Cash losses:

 

 

 

 

 

 

 

 

 

Sales of loans

 

$

(43,149

)

 

$

(198,613

)

 

$

(278,128

)

Hedging activities

 

 

(119,478

)

 

 

(45,445

)

 

 

62,081

 

 

 

(162,627

)

 

 

(244,058

)

 

 

(216,047

)

Non-cash gains:

 

 

 

 

 

 

 

 

 

Receipt of MSRs in mortgage loan sale transactions

 

 

190,141

 

 

 

219,001

 

 

 

292,527

 

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

 

 

 

 

 

 

 

 

 

Pursuant to loan sales

 

 

(1,070

)

 

 

(1,246

)

 

 

(2,449

)

Reduction of liability due to change in estimate

 

 

2,193

 

 

 

20,269

 

 

 

15,228

 

 

 

1,123

 

 

 

19,023

 

 

 

12,779

 

Changes in fair value of loans and derivatives

 

 

 

 

 

 

 

 

 

Interest rate lock commitments

 

 

1,904

 

 

 

(7,089

)

 

 

8,010

 

Loans

 

 

(12,881

)

 

 

12,837

 

 

 

(7,129

)

Hedging derivatives

 

 

29,370

 

 

 

65,341

 

 

 

(57,445

)

 

 

18,393

 

 

 

71,089

 

 

 

(56,564

)

 

 

209,657

 

 

 

309,113

 

 

 

248,742

 

Total from nonaffiliates

 

 

47,030

 

 

 

65,055

 

 

 

32,695

 

From PFSI ‒ cash gains

 

 

5,164

 

 

 

8,069

 

 

 

7,162

 

 

$

52,194

 

 

$

73,124

 

 

$

39,857

 

 

v3.25.4
Net Interest Expense
12 Months Ended
Dec. 31, 2025
Banking and Thrift, Interest [Abstract]  
Net Interest Expense

Note 21—Net Interest Expense

Net interest expense is summarized below:

 

 

 

Year ended December 31,

 

 

 

2025

 

 

2024

 

 

2023

 

 

(in thousands)

 

Interest income:

 

 

 

 

 

 

 

 

 

Cash and short-term investments

 

$

22,008

 

 

$

29,323

 

 

$

25,046

 

Mortgage-backed securities

 

 

247,783

 

 

 

237,758

 

 

 

248,713

 

Loans held for sale

 

 

141,707

 

 

 

83,326

 

 

 

93,988

 

Loans held for investment

 

 

242,721

 

 

 

58,715

 

 

 

56,874

 

Deposits securing CRT arrangements

 

 

44,269

 

 

 

59,304

 

 

 

62,713

 

Placement fees relating to custodial funds

 

 

148,890

 

 

 

163,891

 

 

 

149,484

 

Other

 

 

3,534

 

 

 

2,946

 

 

 

3,089

 

 

 

850,912

 

 

 

635,263

 

 

 

639,907

 

Interest expense:

 

 

 

 

 

 

 

 

 

Assets sold under agreements to repurchase

 

 

352,660

 

 

 

331,800

 

 

 

378,367

 

Mortgage loan participation purchase and sale agreements

 

 

407

 

 

 

1,292

 

 

 

1,365

 

Notes payable secured by credit risk transfer and mortgage servicing assets

 

 

205,517

 

 

 

261,008

 

 

 

257,601

 

Unsecured senior notes

 

 

66,071

 

 

 

48,000

 

 

 

34,969

 

Asset-backed financings

 

 

226,918

 

 

 

55,763

 

 

 

49,988

 

Interest shortfall on repayments of loans serviced for Agency securitizations

 

 

10,303

 

 

 

7,144

 

 

 

5,477

 

Interest on loan impound deposits

 

 

6,946

 

 

 

7,099

 

 

 

6,353

 

Other

 

 

1,572

 

 

 

2,553

 

 

 

1,848

 

 

 

 

870,394

 

 

 

714,659

 

 

 

735,968

 

 

 

$

(19,482

)

 

$

(79,396

)

 

$

(96,061

)

v3.25.4
Share-Based Compensation
12 Months Ended
Dec. 31, 2025
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,

 

 

 

2025

 

 

2024

 

 

2023

 

 

 

(in thousands)

 

Grants:

 

 

 

 

 

 

 

 

 

Restricted share units

 

 

199

 

 

 

182

 

 

 

172

 

Performance share units

 

 

168

 

 

 

140

 

 

 

166

 

 

 

367

 

 

 

322

 

 

 

338

 

Grant date fair value:

 

 

 

 

 

 

 

 

 

Restricted share units

 

$

2,815

 

 

$

2,605

 

 

$

2,212

 

Performance share units

 

 

2,365

 

 

 

2,007

 

 

 

2,088

 

 

$

5,180

 

 

$

4,612

 

 

$

4,300

 

Vestings:

 

 

 

 

 

 

 

 

 

Restricted share units

 

 

144

 

 

 

164

 

 

 

140

 

Performance share units (1)

 

 

91

 

 

 

203

 

 

 

48

 

 

 

235

 

 

 

367

 

 

 

188

 

Forfeitures:

 

 

 

 

 

 

 

 

 

Restricted share units

 

 

 

 

 

33

 

 

 

6

 

Performance share units

 

 

 

 

 

41

 

 

 

 

 

 

 

 

 

74

 

 

 

6

 

Compensation expense relating to share-based grants

 

$

3,865

 

 

$

3,479

 

 

$

5,205

 

 

(1)
The actual number of performance-based restricted share units (“RSUs”) that vested during the year ended December 31, 2025 was approximately 89% of the 103,081 originally granted performance-based RSUs.

 

 

 

December 31, 2025

 

 

 

Restricted share units

 

 

Performance share units

 

Shares expected to vest:

 

 

Number of restricted shares units (in thousands)

 

 

291

 

 

 

279

 

Grant date average fair value per unit

 

$

14.06

 

 

$

14.05

 

Average remaining vesting (in months)

 

 

9

 

 

 

9

 

v3.25.4
Income Taxes
12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Income Taxes

Note 23—Income Taxes

The Company’s effective tax rate was (36.3)% for the year ended December 31, 2025 and (12.9)% for the year ended December 31, 2024. The Company’s TRS recognized a tax benefit of $34.6 million on a pretax loss of $197.1 million while the Company’s consolidated pretax income was $93.8 million for the year ended December 31, 2025. For 2024, the TRS recognized a tax benefit of $18.6 million on pretax loss of $57.9 million while the Company’s reported consolidated pretax income was $142.6 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, 2025, the valuation allowance remains zero. The TRS has a significant net deferred tax liability position, which indicates the TRS will utilize all of its deferred tax assets. 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. Subject to certain limitations, domestic non-corporate shareholders may be allowed a 20% deduction from taxable income for ordinary REIT dividends.

The following table summarizes the approximate tax characterization of distributions to shareholders for 2025, 2024 and 2023. 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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2025

 

 

100

%

 

 

%

 

 

%

 

 

%

 

 

100

%

2024

 

 

100

%

 

 

27

%

 

 

%

 

 

%

 

 

73

%

2023

 

 

19

%

 

 

19

%

 

 

%

 

 

81

%

 

 

%

Preferred Shares (Classes A, B and C)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2025

 

 

100

%

 

 

%

 

 

%

 

 

%

 

 

100

%

2024

 

 

100

%

 

 

27

%

 

 

%

 

 

%

 

 

73

%

2023

 

 

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 did not make any dividend distributions to the Company in 2025. 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,

 

 

 

2025

 

 

2024

 

 

2023

 

 

 

(in thousands)

 

Current expense:

 

 

 

 

 

 

 

 

 

Federal

 

$

 

 

$

1,051

 

 

$

6

 

State

 

 

5,204

 

 

 

 

 

 

 

   Total current expense

 

 

5,204

 

 

 

1,051

 

 

 

6

 

Deferred (benefit) expense:

 

 

 

 

 

 

 

 

 

Federal

 

 

(42,828

)

 

 

(16,898

)

 

 

32,391

 

State

 

 

3,570

 

 

 

(2,489

)

 

 

12,344

 

Total deferred (benefit) expense

 

 

(39,258

)

 

 

(19,387

)

 

 

44,735

 

Total (benefit from) provision for income taxes

 

$

(34,054

)

 

$

(18,336

)

 

$

44,741

 

The following table is a reconciliation of the Company’s provision for income taxes at statutory rates to the provision for income taxes at the Company’s effective income tax rate:

 

 

 

Year ended December 31,

 

 

 

2025

 

 

2024

 

 

2023

 

 

 

Amount

 

 

Rate

 

 

Amount

 

 

Rate

 

 

Amount

 

 

Rate

 

 

 

(dollars in thousands)

 

Federal income tax expense at statutory tax rate

 

$

19,702

 

 

 

21.0

%

 

$

29,956

 

 

 

21.0

%

 

$

51,323

 

 

 

21.0

%

State and local income taxes, net of federal
   income tax effect (1)

 

 

7,163

 

 

 

7.6

%

 

 

(6,169

)

 

 

(4.3

)%

 

 

9,341

 

 

 

3.8

%

Nontaxable or Nondeductible Items:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Effect of non-taxable REIT (income) loss

 

 

(61,098

)

 

 

(65.1

)%

 

 

(42,110

)

 

 

(29.5

)%

 

 

(18,778

)

 

 

(7.7

)%

Convertible debt adjustment

 

 

411

 

 

 

0.4

%

 

 

186

 

 

 

0.1

%

 

 

2,444

 

 

 

1.0

%

Other

 

 

(232

)

 

 

(0.2

)%

 

 

(199

)

 

 

(0.2

)%

 

 

411

 

 

 

0.2

%

Effective income tax rate

 

$

(34,054

)

 

 

(36.3

)%

 

$

(18,336

)

 

 

(12.9

)%

 

$

44,741

 

 

 

18.3

%

 

(1)
The States that contribute to the majority (greater than 50%) of the tax effect in this category include California, Florida, New York and New Jersey for 2025 and 2023 and California, Florida, Maryland, New York, New Jersey and Pennsylvania for 2024.

 

 

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

 

 

Year ended December 31,

 

 

2025

 

 

2024

 

 

2023

 

 

(in thousands)

 

Net operating loss carryforward

$

(33,044

)

 

$

16,801

 

 

$

3,199

 

Mortgage servicing rights

 

(12,832

)

 

 

(42,893

)

 

 

22,924

 

Excess interest expense disallowance

 

9,010

 

 

 

2,675

 

 

 

15,114

 

Liability for losses under representations and warranties

 

331

 

 

 

4,760

 

 

 

3,108

 

Real estate valuation loss

 

52

 

 

 

(31

)

 

 

107

 

Other

 

(2,775

)

 

 

(699

)

 

 

283

 

Total (benefit from) provision for deferred income taxes

$

(39,258

)

 

$

(19,387

)

 

$

44,735

 

 

 

Income taxes paid are summarized below:

 

 

 

Year ended December 31,

 

 

 

2025

 

 

2024

 

 

2023

 

 

 

(in thousands)

 

US Federal

 

$

 

 

$

3,900

 

 

$

3,900

 

US State and Local:

 

 

 

 

 

 

 

 

 

Maryland

 

 

715

 

 

 

837

 

 

 

1,352

 

California

 

 

660

 

 

 

1,298

 

 

 

50

 

Alabama

 

 

335

 

 

 

243

 

 

 

267

 

New York

 

 

224

 

 

 

548

 

 

 

266

 

Oregon

 

 

171

 

 

 

172

 

 

 

96

 

Other

 

 

226

 

 

 

808

 

 

 

586

 

 

 

 

2,331

 

 

 

3,906

 

 

 

2,617

 

Total income taxes paid

 

$

2,331

 

 

$

7,806

 

 

$

6,517

 

 

The components of income taxes payable are as follows:

 

 

December 31, 2025

 

 

December 31, 2024

 

(in thousands)

 

Taxes currently receivable

$

(12,211

)

 

$

(15,085

)

Deferred income taxes payable

 

139,687

 

 

 

178,946

 

Income taxes payable

$

127,476

 

 

$

163,861

 

 

 

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

 

 

December 31, 2025

 

 

December 31, 2024

 

(in thousands)

 

Deferred income tax assets:

 

 

 

 

 

Net operating loss carryforward

$

134,897

 

 

$

101,853

 

Excess interest expense disallowance

 

30,819

 

 

 

39,829

 

Liability for losses under representations and warranties

 

1,353

 

 

 

1,684

 

REO valuation loss

 

50

 

 

 

102

 

Other

 

2,385

 

 

 

598

 

Gross deferred tax assets

 

169,504

 

 

 

144,066

 

Valuation allowance

 

 

 

 

 

Deferred tax assets after valuation allowance

 

169,504

 

 

 

144,066

 

Deferred income tax liabilities:

 

 

 

 

 

Mortgage servicing rights

 

309,191

 

 

 

322,023

 

Other

 

 

 

 

989

 

Gross deferred tax liabilities

 

309,191

 

 

 

323,012

 

Net deferred income tax liability

$

139,687

 

 

$

178,946

 

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 $511.2 million and $384.3 million at December 31, 2025 and December 31, 2024, 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, 2025 and December 31, 2024, 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, 2025 and December 31, 2024.

The Company files U.S. federal and state income tax returns for both the REIT and the TRS. These federal income tax returns for 2022 and forward are subject to examination. The Company’s state income tax returns are generally subject to examination for 2021 and forward.

v3.25.4
Earnings Per Common Share
12 Months Ended
Dec. 31, 2025
Earnings Per Share [Abstract]  
Earnings Per Common Share

Note 24—Earnings Per Common Share

The Company determines earnings per Common 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 certain grants of restricted share units that provide the recipients the nonforfeitable right 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 senior notes described in Note 15— Long-Term Debt. The number of dilutive securities included in diluted earnings per share is calculated using either the treasury stock or if-converted method (whichever is most dilutive) for share-based compensation awards and the if-converted method for the exchangeable senior notes. The number of potentially dilutive securities relating to the exchangeable senior notes is calculated based on the exchange obligation in excess of the principal amount of the exchangeable senior notes as described in Note 15— Long-Term Debt.

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

 

 

 

Year ended December 31,

 

 

 

2025

 

 

2024

 

 

2023

 

 

 

(in thousands except per share amounts)

 

Net income

 

$

127,872

 

 

$

160,984

 

 

$

199,654

 

Dividends on preferred shares

 

 

(41,819

)

 

 

(41,819

)

 

 

(41,819

)

Effect of participating securities—share-based compensation awards

 

 

(148

)

 

 

(417

)

 

 

(454

)

Net income attributable to common shareholders

 

$

85,905

 

 

$

118,748

 

 

$

157,381

 

Interest on exchangeable senior notes, net of income taxes

 

 

 

 

 

 

 

 

25,055

 

Loss attributable to participating securities

 

 

 

 

 

 

 

 

(44

)

Diluted net income attributable to common shareholders

 

$

85,905

 

 

$

118,748

 

 

$

182,392

 

Weighted average basic and diluted shares outstanding

 

 

86,988

 

 

 

86,815

 

 

 

87,372

 

Dilutive securities—Shares issuable pursuant to exchange of the
   exchangeable senior notes

 

 

 

 

 

 

 

 

24,328

 

Diluted weighted average shares outstanding

 

 

86,988

 

 

 

86,815

 

 

 

111,700

 

Basic earnings per share

 

$

0.99

 

 

$

1.37

 

 

$

1.80

 

Diluted earnings per share

 

$

0.99

 

 

$

1.37

 

 

$

1.63

 

 

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,

 

 

 

2025

 

 

2024

 

 

2023

 

 

 

(in thousands)

 

Shares issuable under share-based compensation plan

 

 

349

 

 

 

204

 

 

 

180

 

v3.25.4
Segments
12 Months Ended
Dec. 31, 2025
Segment Reporting [Abstract]  
Segments

Note 25—Segments

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 benefit from income taxes. The chief operating decision maker uses pre-tax segment 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.

Financial highlights by segment are summarized below:

 

Year ended December 31, 2025

 

Credit sensitive strategies

 

 

Interest rate sensitive strategies

 

 

Correspondent production

 

 

Reportable segment total

 

 

Corporate

 

 

Consolidated total

 

 

 

(in thousands)

 

Net investment income (1):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net gains on investments and financings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage-backed securities

 

$

(1,321

)

 

$

149,665

 

 

$

 

 

$

148,344

 

 

$

 

 

$

148,344

 

Loans held for investment

 

 

15,124

 

 

 

1,275

 

 

 

 

 

 

16,399

 

 

 

 

 

 

16,399

 

Credit risk transfer arrangements

 

 

48,370

 

 

 

 

 

 

 

 

 

48,370

 

 

 

 

 

 

48,370

 

 

 

 

62,173

 

 

 

150,940

 

 

 

 

 

 

213,113

 

 

 

 

 

 

213,113

 

Net gains on loans held for sale

 

 

 

 

 

 

 

 

52,194

 

 

 

52,194

 

 

 

 

 

 

52,194

 

Net loan servicing fees

 

 

 

 

 

48,932

 

 

 

 

 

 

48,932

 

 

 

 

 

 

48,932

 

Net interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

78,978

 

 

 

620,230

 

 

 

141,584

 

 

 

840,792

 

 

 

10,120

 

 

 

850,912

 

Interest expense

 

 

75,444

 

 

 

670,458

 

 

 

119,144

 

 

 

865,046

 

 

 

5,348

 

 

 

870,394

 

 

 

3,534

 

 

 

(50,228

)

 

 

22,440

 

 

 

(24,254

)

 

 

4,772

 

 

 

(19,482

)

Other

 

 

(64

)

 

 

 

 

 

12,768

 

 

 

12,704

 

 

 

 

 

 

12,704

 

 

 

65,643

 

 

 

149,644

 

 

 

87,402

 

 

 

302,689

 

 

 

4,772

 

 

 

307,461

 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earned by PennyMac Financial Services, Inc.:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loan servicing fees

 

 

6

 

 

 

84,426

 

 

 

 

 

 

84,432

 

 

 

 

 

 

84,432

 

Management fees

 

 

 

 

 

 

 

 

 

 

 

 

 

 

27,649

 

 

 

27,649

 

Loan fulfillment fees

 

 

 

 

 

 

 

 

23,804

 

 

 

23,804

 

 

 

 

 

 

23,804

 

Professional services

 

 

 

 

 

 

 

 

28,508

 

 

 

28,508

 

 

 

9,266

 

 

 

37,774

 

Compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

11,886

 

 

 

11,886

 

Loan collection and liquidation

 

 

89

 

 

 

8,196

 

 

 

 

 

 

8,285

 

 

 

 

 

 

8,285

 

Safekeeping

 

 

 

 

 

4,308

 

 

 

322

 

 

 

4,630

 

 

 

 

 

 

4,630

 

Loan origination

 

 

 

 

 

 

 

 

2,278

 

 

 

2,278

 

 

 

 

 

 

2,278

 

Other (2)

 

 

345

 

 

 

2,261

 

 

 

411

 

 

 

3,017

 

 

 

9,888

 

 

 

12,905

 

 

 

440

 

 

 

99,191

 

 

 

55,323

 

 

 

154,954

 

 

 

58,689

 

 

 

213,643

 

Pretax income (loss)

 

$

65,203

 

 

$

50,453

 

 

$

32,079

 

 

$

147,735

 

 

$

(53,917

)

 

$

93,818

 

Total assets at end of year

 

$

1,604,694

 

 

$

16,512,045

 

 

$

2,767,400

 

 

$

20,884,139

 

 

$

462,743

 

 

$

21,346,882

 

 

(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.

 

Year ended December 31, 2024

 

Credit sensitive strategies

 

 

Interest rate sensitive strategies

 

 

Correspondent production

 

 

Reportable segment total

 

 

Corporate

 

 

Consolidated total

 

 

 

(in thousands)

 

Net investment income (1):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net gains on investments and financings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage-backed securities

 

$

6,964

 

 

$

(67,704

)

 

$

 

 

$

(60,740

)

 

$

 

 

$

(60,740

)

Loans held for investment

 

 

3,726

 

 

 

4,394

 

 

 

 

 

 

8,120

 

 

 

 

 

 

8,120

 

Credit risk transfer arrangements

 

 

113,670

 

 

 

 

 

 

 

 

 

113,670

 

 

 

 

 

 

113,670

 

 

 

 

124,360

 

 

 

(63,310

)

 

 

 

 

 

61,050

 

 

 

 

 

 

61,050

 

Net gains on loans held for sale

 

 

 

 

 

 

 

 

73,124

 

 

 

73,124

 

 

 

 

 

 

73,124

 

Net loan servicing fees

 

 

 

 

 

264,540

 

 

 

 

 

 

264,540

 

 

 

 

 

 

264,540

 

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

 

Compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5,608

 

 

 

5,608

 

Loan collection and liquidation

 

 

376

 

 

 

6,458

 

 

 

 

 

 

6,834

 

 

 

 

 

 

6,834

 

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 (loss)

 

$

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.

Year ended December 31, 2023

 

Credit sensitive strategies

 

 

Interest rate sensitive strategies

 

 

Correspondent production

 

 

Reportable segment total

 

 

Corporate

 

 

Consolidated total

 

 

 

(in thousands)

 

Net investment income (1):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net gains on investments and financings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage-backed securities

 

$

35,625

 

 

$

(43,842

)

 

$

 

 

$

(8,217

)

 

$

 

 

$

(8,217

)

Loans held for investment

 

 

2,597

 

 

 

1,164

 

 

 

 

 

 

3,761

 

 

 

 

 

 

3,761

 

Credit risk transfer arrangements

 

 

182,555

 

 

 

 

 

 

 

 

 

182,555

 

 

 

 

 

 

182,555

 

 

 

 

220,777

 

 

 

(42,678

)

 

 

 

 

 

178,099

 

 

 

 

 

 

178,099

 

Net gains on loans held for sale

 

 

 

 

 

 

 

 

39,857

 

 

 

39,857

 

 

 

 

 

 

39,857

 

Net loan servicing fees

 

 

 

 

 

288,608

 

 

 

 

 

 

288,608

 

 

 

 

 

 

288,608

 

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

 

Compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

7,106

 

 

 

7,106

 

Loan collection and liquidation

 

 

1,743

 

 

 

2,819

 

 

 

 

 

 

4,562

 

 

 

 

 

 

4,562

 

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 (loss)

 

$

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.
v3.25.4
Regulatory Capital and Liquidity Requirements
12 Months Ended
Dec. 31, 2025
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)

 

 

 

Actual

 

 

Required

 

 

Actual

 

 

Required

 

 

Actual

 

 

Required

 

 

 

(dollars in thousands)

 

December 31, 2025

 

$

682,481

 

 

$

569,435

 

 

 

9

%

 

 

6

%

 

$

514,626

 

 

$

211,818

 

December 31, 2024

 

$

876,324

 

 

$

579,383

 

 

 

12

%

 

 

6

%

 

$

564,311

 

 

$

215,801

 

 

(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.

v3.25.4
Parent Company Information
12 Months Ended
Dec. 31, 2025
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, 2025

 

Company consolidated

 

Debt covenant
requirement

 

 

Actual
balance
 (1)

 

 

 

(in thousands)

 

PennyMac Mortgage Investment Trust

 

$

1,250,000

 

 

$

1,885,799

 

PennyMac Operating Partnership, L.P.

 

$

1,250,000

 

 

$

2,248,567

 

PennyMac Holdings, LLC

 

$

250,000

 

 

$

1,250,979

 

PennyMac Corp.

 

$

300,000

 

 

$

759,908

 

 

(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,

 

 

 

2025

 

 

2024

 

 

 

(in thousands)

 

Assets

 

 

 

 

 

 

Cash

 

$

808

 

 

$

845

 

Investments in subsidiaries

 

 

2,250,348

 

 

 

2,265,779

 

Due from subsidiaries

 

 

846

 

 

 

608

 

Other assets

 

 

879

 

 

 

844

 

Total assets

 

$

2,252,881

 

 

$

2,268,076

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

Capital notes due to subsidiaries

 

$

1,021

 

 

$

228,280

 

Unsecured senior notes

 

 

320,492

 

 

 

51,538

 

Dividends payable

 

 

35,394

 

 

 

34,838

 

Accounts payable and accrued liabilities

 

 

2,336

 

 

 

 

Due to affiliates

 

 

508

 

 

 

503

 

Due to subsidiaries

 

 

105

 

 

 

3,582

 

Total liabilities

 

 

359,856

 

 

 

318,741

 

Shareholders' Equity

 

 

1,893,025

 

 

 

1,949,335

 

Total liabilities and shareholders' equity

 

$

2,252,881

 

 

$

2,268,076

 

 

PENNYMAC MORTGAGE INVESTMENT TRUST

CONDENSED STATEMENTS OF INCOME

 

 

 

Year ended December 31,

 

 

 

2025

 

 

2024

 

 

2023

 

 

 

(in thousands)

 

Income

 

 

 

 

 

 

 

 

 

Dividends from subsidiaries

 

$

170,525

 

 

$

180,695

 

 

$

182,043

 

Interest income

 

 

 

 

 

 

 

 

 

from nonaffiliates

 

 

107

 

 

 

64

 

 

 

 

from affiliate

 

 

463

 

 

 

99

 

 

 

54

 

Total income

 

 

171,095

 

 

 

180,858

 

 

 

182,097

 

Expenses

 

 

 

 

 

 

 

 

 

Interest expense:

 

 

 

 

 

 

 

 

 

To nonaffiliates

 

 

25,262

 

 

 

5,018

 

 

 

1,355

 

To affiliates

 

 

4,740

 

 

 

20,908

 

 

 

22,829

 

Other

 

 

 

 

 

2

 

 

 

13

 

Total expenses

 

 

30,002

 

 

 

25,928

 

 

 

24,197

 

Income before provision for income taxes and distribution
   in excess of earnings

 

 

141,093

 

 

 

154,930

 

 

 

157,900

 

Provision for income taxes

 

 

 

 

 

 

 

 

6

 

Income before equity in undistributed earnings of subsidiaries

 

 

141,093

 

 

 

154,930

 

 

 

157,894

 

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

 

 

(18,362

)

 

 

5,266

 

 

 

32,591

 

Net income

 

$

122,731

 

 

$

160,196

 

 

$

190,485

 

 

PENNYMAC MORTGAGE INVESTMENT TRUST

CONDENSED STATEMENTS OF CASH FLOWS

 

 

 

Year ended December 31,

 

 

 

2025

 

 

2024

 

 

2023

 

 

 

(in thousands)

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

 

Net income

 

$

122,731

 

 

$

160,196

 

 

$

190,485

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

 

 

 

 

 Distributions in excess of earnings of subsidiaries (equity in undistributed
   earnings of subsidiaries)

 

 

18,362

 

 

 

(5,265

)

 

 

(32,591

)

Amortization of debt issuance costs

 

 

1,707

 

 

 

471

 

 

 

110

 

Decrease in due from subsidiaries

 

 

696

 

 

 

357

 

 

 

638

 

(Increase) decrease in other assets

 

 

(35

)

 

 

2

 

 

 

58

 

Decrease (increase) in accounts payable and accrued liabilities

 

 

2,336

 

 

 

(19

)

 

 

(323

)

Decrease (increase) in due to affiliate

 

 

5

 

 

 

558

 

 

 

(335

)

(Increase) decrease in due to subsidiaries

 

 

(3,514

)

 

 

1,805

 

 

 

191

 

Net cash provided by operating activities

 

 

142,288

 

 

 

158,105

 

 

 

158,233

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

 

Net decrease (increase) in short-term investments

 

 

 

 

 

603

 

 

 

(96

)

Net cash provided by (used in) investing activities

 

 

 

 

 

603

 

 

 

(96

)

Cash flows from financing activities:

 

 

 

 

 

 

 

 

 

Issuance of unsecured senior notes

 

 

277,500

 

 

 

 

 

 

53,500

 

Payment of debt issuance costs

 

 

(10,253

)

 

 

(48

)

 

 

(2,495

)

(Increase) decrease in intercompany unsecured note payable

 

 

(227,259

)

 

 

25,150

 

 

 

2,350

 

Payment of withholding taxes related to share-based compensation

 

 

(1,127

)

 

 

(1,846

)

 

 

(567

)

Payment of dividends to preferred shareholders

 

 

(41,819

)

 

 

(41,819

)

 

 

(41,818

)

Payment of dividends to common shareholders

 

 

(139,367

)

 

 

(139,300

)

 

 

(140,617

)

Repurchase of Common Shares

 

 

 

 

 

 

 

 

(28,490

)

Net cash used in financing activities

 

 

(142,325

)

 

 

(157,863

)

 

 

(158,137

)

Net change in cash

 

 

(37

)

 

 

845

 

 

 

 

Cash at beginning of year

 

 

845

 

 

 

 

 

 

 

Cash at end of year

 

$

808

 

 

$

845

 

 

$

 

 

 

 

 

 

 

 

 

 

Non-cash investing activities:

 

 

 

 

 

 

 

 

 

Investment in subsidiary pursuant to share based compensation plan

 

$

3,864

 

 

$

3,476

 

 

$

5,204

 

Non-cash financing activities:

 

 

 

 

 

 

 

 

 

Contribution of equity to subsidiary pursuant to share based compensation plan

 

$

3,864

 

 

$

3,476

 

 

$

5,204

 

Dividends payable

 

$

35,431

 

 

$

34,838

 

 

$

34,750

 

v3.25.4
Subsequent Events
12 Months Ended
Dec. 31, 2025
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:

All agreements to repurchase assets that matured before the date of this Report were extended or renewed.
v3.25.4
Significant Accounting Policies (Policies)
12 Months Ended
Dec. 31, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Segment Reporting

PennyMac Mortgage Investment Trust (“PMT” or the “Company”) is a specialty finance company, which invests in residential mortgage-related assets. The Company operates in three 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 and credit-linked 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 collateralized mortgage obligations ("CMOs") 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 Pennymac 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 enterprises ("GSEs") such as the Federal Home Loan Mortgage Corporation (“Freddie Mac”) and the Federal National Mortgage Association (“Fannie Mae”). Freddie Mac and Fannie Mae are each referred to as an “Agency” and, collectively, as the “Agencies.” The Company also securitizes loans directly and retains certain senior and subordinate MBS created in the 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’ income. 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 on investments and financings in the consolidated statements of income.

Subordinate and Senior Non-Agency Mortgage-Backed Securities

The Company retains or purchases subordinate and senior non-Agency 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 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 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 held for investment at fair value and the securities issued to nonaffiliates by the consolidated VIEs are included in Asset-backed financings of variable interest entities at fair value on the Company’s consolidated balance sheets. Both the Loans held for investment at fair value and the Asset-backed financings of variable interest entities 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 certain 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 earned on the loans owned by the VIEs as Interest income and the interest attributable to the asset-backed securities issued to nonaffiliates by the VIEs as Interest expense on its consolidated statements of income.

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 sale of the variable funding notes under agreements to repurchase is 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 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 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 income. 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 income. 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 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 and subordinate and credit linked MBS as “Level 2” fair value assets. The Company classifies its investments in IO 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 and yield estimates monthly.

Loans

Loans

Loans are carried at their fair values with changes in fair value recognized in current period income. 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 on investments and financings for loans classified as Loans held for investment at fair value and Net gains on loans held for sale at fair value for loans classified as Loans held 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 income. The Company categorizes its Loans held 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 held for investment at fair value 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 loans from PLS and nonaffiliates 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 held for sale and loans held for investment other than loans held in VIEs for the foreseeable future. Therefore, interest income on loans held for sale and loans held for investment 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 unamortized 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 the Company’s correspondent production 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 correspondent production operations are interest rate lock commitments (“IRLCs”) that are created when the Company commits to purchase loans for sale.

The Company engages in interest rate risk management activities in an effort to reduce the variability of its income 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 held 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 income. 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 held 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 income 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 mortgage loans. Under these contracts, the Company performs 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 is contractually entitled to receive other remuneration including various mortgagor‑contracted fees such as late charges and collateral reconveyance charges, and the Company is generally entitled to retain the placement fees earned on impounded funds and funds held pending remittance related to its collection of mortgagor payments. The Company also generally has the right to

solicit the mortgagors for other products and services as well as for new mortgages for those considering refinancing their existing loan or purchasing a new home.

The Company recognizes MSRs initially at fair value, either as proceeds from sales of mortgage loans where the Company retains the obligation to service the mortgage loan in the sale transaction, or from the purchase of MSRs.

The fair value of MSRs is derived from the net positive cash flows associated with the servicing contracts. For loans subject to MSR contracts, the Company receives a servicing fee, based on the remaining outstanding principal balances of the mortgage loans subject to the servicing contracts. The servicing fees are collected from the monthly payments made by the mortgagors.

The fair value of MSRs is difficult to determine because MSRs are not actively traded in observable stand‑alone markets. Considerable judgment is required to estimate the fair values of MSRs and the exercise of such judgment can significantly affect the Company’s income. Therefore, the Company classifies its MSRs as “Level 3” fair value assets and liabilities.

Changes in fair value of MSRs are recognized in current period income in Change in fair value of mortgage servicing rights in the consolidated statements of income.

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 income as a component of Net gains 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 PLS or 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 Net gains on loans held 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 related 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 income 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 Adopted Accounting Pronouncement

Recently Adopted Accounting Pronouncement

During 2023, the FASB issued Accounting Standards Update 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 does not require any changes to the Company’s accounting for income taxes. 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 Company adopted the disclosures required by ASU 2023-09 retrospectively for the year ended December 31, 2025 and the disclosures are included in Note 23—Income Taxes.

v3.25.4
Organization and Basis of Presentation and Recently Issued Accounting Pronouncements (Policies)
12 Months Ended
Dec. 31, 2025
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 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.

v3.25.4
Transactions with Related Parties (Tables)
12 Months Ended
Dec. 31, 2025
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,

 

 

 

2025

 

 

2024

 

 

2023

 

 

 

(in thousands)

 

Loan servicing fees:

 

 

 

 

 

 

 

 

 

Loans held for sale

 

$

313

 

 

$

525

 

 

$

680

 

Loans held for investment

 

 

1,311

 

 

 

591

 

 

 

208

 

Mortgage servicing rights

 

 

82,808

 

 

 

82,136

 

 

 

80,459

 

 

$

84,432

 

 

$

83,252

 

 

$

81,347

 

Average investment in loans:

 

 

 

 

 

 

 

 

 

Held for sale

 

$

2,206,958

 

 

$

1,249,423

 

 

$

1,439,373

 

Held for investment

 

$

4,724,217

 

 

$

1,468,687

 

 

$

1,451,632

 

Average MSR portfolio unpaid principal balance

 

$

221,436,947

 

 

$

228,705,758

 

 

$

231,203,032

 

 

 

 

 

 

 

 

 

 

 

Mortgage servicing rights recapture fees

 

$

10,117

 

 

$

2,193

 

 

$

1,784

 

Unpaid principal balance of loans recaptured

 

$

932,444

 

 

$

353,710

 

 

$

315,412

 

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,

 

 

 

2025

 

 

2024

 

 

2023

 

 

 

(in thousands)

 

Loan fulfillment fees earned by PLS

 

$

23,804

 

 

$

26,291

 

 

$

27,826

 

Unpaid principal balance of loans fulfilled by PLS (1)

 

$

12,893,224

 

 

$

13,446,484

 

 

$

14,898,301

 

 

 

 

 

 

 

 

 

 

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

 

$

5,164

 

 

$

8,069

 

 

$

7,162

 

Unpaid principal balance of loans sold to PLS:

 

 

 

 

 

 

 

 

 

Government guaranteed or insured

 

$

27,094,014

 

 

$

40,838,480

 

 

$

40,476,782

 

Conventional conforming

 

 

24,990,216

 

 

 

39,856,056

 

 

 

31,141,915

 

 

$

52,084,230

 

 

$

80,694,536

 

 

$

71,618,697

 

 

 

 

 

 

 

 

 

 

 

Purchases of loans held for sale from PLS (1)

 

$

11,216,713

 

 

$

662,952

 

 

$

 

 

 

 

 

 

 

 

 

 

 

Tax service fees paid to PLS

 

$

1,537

 

 

$

2,523

 

 

$

3,216

 

(1)
Amounts include loans purchased directly by the Company and loans purchased from PLS subject to fulfillment fees.

 

 

 

 

 

December 31, 2024

 

 

 

 

 

(in thousands)

 

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

 

 

 

$

602,108

 

Summary of Management Fee Expense

Following is a summary of management fee expenses:

 

 

Year ended December 31,

 

 

 

2025

 

 

2024

 

 

2023

 

 

 

(in thousands)

 

Base management fee

 

$

27,649

 

 

$

28,623

 

 

$

28,762

 

Performance incentive fee

 

 

 

 

 

 

 

 

 

 

$

27,649

 

 

$

28,623

 

 

$

28,762

 

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

 

$

1,843,549

 

 

$

1,908,287

 

 

$

1,917,642

 

Summary of Expenses

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

 

 

Year ended December 31,

 

 

 

2025

 

 

2024

 

 

2023

 

 

 

(in thousands)

 

Reimbursement of:

 

 

 

 

 

 

 

 

 

Expenses incurred on the Company’s behalf, net

 

$

21,177

 

 

$

20,871

 

 

$

21,468

 

Compensation

 

 

6,515

 

 

 

660

 

 

 

660

 

Common overhead

 

 

3,926

 

 

 

7,909

 

 

 

7,492

 

 

$

31,618

 

 

$

29,440

 

 

$

29,620

 

Payments and settlements during the period (1)

 

$

109,610

 

 

$

118,167

 

 

$

94,339

 

 

(1)
Payments and settlements include payments and netting settlements made pursuant to master netting agreements between the Company and PCM and its affiliates 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, 2025

 

 

December 31, 2024

 

 

(in thousands)

 

Due from PFSI-Miscellaneous receivables

 

$

19,100

 

 

$

16,015

 

 

 

 

 

 

 

Due to PFSI:

 

 

 

 

 

 

Management fees

 

$

6,856

 

 

$

7,149

 

Loan servicing fees

 

 

6,669

 

 

 

6,822

 

Allocated expenses and expenses and costs

 

 

3,161

 

 

 

3,508

 

Correspondent production activities

 

 

436

 

 

 

11,122

 

Fulfillment fees

 

 

 

 

 

1,605

 

 

$

17,122

 

 

$

30,206

 

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 of the Company's balance sheet items as summarized below:

Balance sheet line including advance amount

 

December 31, 2025

 

 

December 31, 2024

 

 

 

(in thousands)

 

Servicing advances

 

$

96,830

 

 

$

105,037

 

Other assets-Real estate acquired in settlement of loans

 

 

655

 

 

 

1,265

 

 

$

97,485

 

 

$

106,302

 

v3.25.4
Loan Sales (Tables)
12 Months Ended
Dec. 31, 2025
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,

 

 

 

2025

 

 

2024

 

 

2023

 

 

(in thousands)

 

Cash flows:

 

 

 

 

 

 

 

 

 

Proceeds from sales

 

$

10,292,463

 

 

$

12,414,391

 

 

$

15,936,124

 

Loan servicing fees received

 

$

608,025

 

 

$

644,642

 

 

$

659,438

 

Summary of Collection Status Information for Loan Transfers Accounted for Sales

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

 

 

December 31, 2025

 

 

December 31, 2024

 

 

 

(in thousands)

 

Unpaid principal balance of loans outstanding

 

$

212,581,934

 

 

$

222,761,227

 

Collection status (Unpaid principal balance)

 

 

 

 

 

 

Delinquency:

 

 

 

 

 

 

30-89 days delinquent

 

$

2,583,158

 

 

$

2,618,767

 

90 or more days delinquent:

 

 

 

 

 

 

Not in foreclosure

 

$

1,025,111

 

 

$

1,078,362

 

In foreclosure

 

$

118,503

 

 

$

105,810

 

Bankruptcy

 

$

351,890

 

 

$

281,821

 

 

 

 

 

 

 

 

Custodial funds managed by the Company (1)

 

$

2,758,142

 

 

$

2,385,602

 

 

(1)
Custodial funds represent 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 income.
v3.25.4
Variable Interest Entities (Tables) - Variable Interest Entities [Member]
12 Months Ended
Dec. 31, 2025
Summary of Investment in Senior and Subordinate MBS Backed by Assets Held in Consolidated VIEs

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

 

 

 

Year ended December 31,

 

 

 

2025

 

 

2024

 

 

2023

 

 

 

(in thousands)

 

Net investment income:

 

 

 

 

 

 

 

 

 

Net gains on investments and financings:

 

 

 

 

 

 

 

 

 

Loans held for investment at fair value

 

$

112,840

 

 

$

15,637

 

 

$

17,876

 

Asset-backed financings of variable interest entities at fair value

 

 

(96,439

)

 

 

(7,396

)

 

 

(13,678

)

Interest income

 

 

242,696

 

 

 

58,720

 

 

 

56,833

 

Interest expense

 

 

226,918

 

 

 

55,763

 

 

 

49,988

 

 

 

$

32,179

 

 

$

11,198

 

 

$

11,043

 

 

 

 

December 31, 2025

 

 

December 31, 2024

 

 

 

(in thousands)

 

Loans held for investment at fair value

 

$

8,530,939

 

 

$

2,191,709

 

Asset-backed financings of variable interest entities at fair value

 

$

7,789,303

 

 

$

2,040,375

 

Retained mortgage-backed securities at fair value pledged to secure
      
Assets sold under agreements to repurchase

 

$

648,159

 

 

$

130,839

 

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

Following is a summary of the CRT arrangements:

 

 

 

Year ended December 31,

 

 

 

2025

 

 

2024

 

 

2023

 

 

 

(in thousands)

 

Net investment income:

 

 

 

 

 

 

 

 

 

Net gains on investments and financings

 

 

 

 

 

 

 

 

 

Credit risk transfer derivatives and strips:

 

 

 

 

 

 

 

 

 

Credit risk transfer derivatives

 

 

 

 

 

 

 

 

 

Realized

 

$

10,764

 

 

$

13,491

 

 

$

18,524

 

Valuation changes

 

 

3,572

 

 

 

13,529

 

 

 

38,020

 

 

 

14,336

 

 

 

27,020

 

 

 

56,544

 

Credit risk transfer strips

 

 

 

 

 

 

 

 

 

Realized

 

 

39,189

 

 

 

45,573

 

 

 

46,252

 

Valuation changes

 

 

(1,727

)

 

 

42,632

 

 

 

90,501

 

 

 

37,462

 

 

 

88,205

 

 

 

136,753

 

Interest-only security payable at fair value — valuation changes

 

 

(3,428

)

 

 

(1,555

)

 

 

(10,742

)

 

 

48,370

 

 

 

113,670

 

 

 

182,555

 

Interest income — Deposits securing credit risk transfer
    arrangements

 

 

44,269

 

 

 

59,304

 

 

 

62,713

 

 

$

92,639

 

 

$

172,974

 

 

$

245,268

 

 

 

 

 

 

 

 

 

 

 

Net payments made to settle losses on credit risk transfer arrangements

 

$

4,466

 

 

$

1,633

 

 

$

3,523

 

 

 

 

December 31, 2025

 

 

December 31, 2024

 

 

 

(in thousands)

 

Carrying value of credit risk transfer arrangements:

 

 

 

 

 

 

Derivative assets - credit risk transfer derivatives

 

$

32,659

 

 

$

29,377

 

Derivative and credit risk transfer liabilities - credit risk transfer strips

 

(5,999

)

 

 

(4,060

)

Deposits securing credit risk transfer arrangements

 

 

1,009,334

 

 

 

1,110,708

 

Interest-only security payable at fair value

 

 

(37,650

)

 

 

(34,222

)

 

 

$

998,344

 

 

$

1,101,803

 

 

 

 

 

 

 

Credit risk transfer arrangement assets pledged to secure borrowings:

 

 

 

 

 

Derivative assets

 

$

32,659

 

 

$

29,377

 

Deposits securing credit risk transfer arrangements (1)

$

1,009,334

 

 

$

1,110,708

 

 

 

 

 

 

 

Unpaid principal balance of loans underlying credit risk transfer arrangements

$

19,517,530

 

 

$

21,249,304

 

Collection status (unpaid principal balance):

 

 

 

 

Delinquency

 

 

 

 

 

 

Current

 

$

18,908,261

 

 

$

20,628,148

 

30-89 days delinquent

 

$

413,295

 

 

$

414,605

 

90-179 days delinquent

 

$

110,486

 

 

$

131,191

 

180 or more days delinquent

 

$

57,798

 

 

$

51,343

 

Foreclosure

 

$

27,690

 

 

$

24,017

 

Bankruptcy

 

$

68,426

 

 

$

63,697

 

 

(1)
Deposits securing credit risk transfer strip liabilities also secure $6.0 million and $4.1 million in CRT strip liabilities at December 31, 2025 and December 31, 2024, respectively.
v3.25.4
Fair Value (Tables)
12 Months Ended
Dec. 31, 2025
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, 2025

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

 

 

(in thousands)

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Short-term investments

 

$

190,518

 

 

$

 

 

$

 

 

$

190,518

 

Mortgage-backed securities

 

 

 

 

 

4,380,357

 

 

 

72,502

 

 

 

4,452,859

 

Loans held for sale

 

 

 

 

 

2,695,817

 

 

 

3,581

 

 

 

2,699,398

 

Loans held for investment

 

 

 

 

 

8,530,939

 

 

 

1,705

 

 

 

8,532,644

 

Derivative assets with nonaffiliates:

 

 

 

 

 

 

 

 

 

 

 

 

Call options on interest rate futures purchase contracts

 

 

1,289

 

 

 

 

 

 

 

 

 

1,289

 

Put options on interest rate futures purchase contracts

 

 

4,109

 

 

 

 

 

 

 

 

 

4,109

 

Forward purchase contracts

 

 

 

 

 

4,113

 

 

 

 

 

 

4,113

 

Forward sale contracts

 

 

 

 

 

2,381

 

 

 

 

 

 

2,381

 

Credit risk transfer derivatives

 

 

 

 

 

 

 

 

32,659

 

 

 

32,659

 

Total derivative assets with nonaffiliates before netting

 

 

5,398

 

 

 

6,494

 

 

 

32,659

 

 

 

44,551

 

Netting

 

 

 

 

 

 

 

 

 

 

 

5,145

 

Total derivative assets with nonaffiliates after netting

 

 

5,398

 

 

 

6,494

 

 

 

32,659

 

 

 

49,696

 

Derivative assets with PennyMac Financial Services, Inc.:

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate lock commitments

 

 

 

 

 

 

 

 

4,605

 

 

 

4,605

 

Forward purchase contracts

 

 

 

 

 

1,784

 

 

 

 

 

 

1,784

 

Total derivative assets with PennyMac Financial
   Services, Inc. before netting

 

 

 

 

 

1,784

 

 

 

4,605

 

 

 

6,389

 

Netting

 

 

 

 

 

 

 

 

 

 

 

(142

)

Total derivative assets with PennyMac Financial
   Services, Inc. after netting

 

 

 

 

 

1,784

 

 

 

4,605

 

 

 

6,247

 

Mortgage servicing rights

 

 

 

 

 

 

 

 

3,644,702

 

 

 

3,644,702

 

 

$

195,916

 

 

$

15,615,391

 

 

$

3,759,754

 

 

$

19,576,064

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Interest-only security payable

 

$

 

 

$

 

 

$

37,650

 

 

$

37,650

 

Asset-backed financings of variable interest entities

 

 

 

 

 

7,789,303

 

 

 

 

 

 

7,789,303

 

Derivative and credit risk transfer strip liabilities with
   nonaffiliates:

 

 

 

 

 

 

 

 

 

 

 

 

Forward purchase contracts

 

 

 

 

 

158

 

 

 

 

 

 

158

 

Forward sales contracts

 

 

 

 

 

17,340

 

 

 

 

 

 

17,340

 

Total derivative liabilities with nonaffiliates before netting

 

 

 

 

 

17,498

 

 

 

 

 

 

17,498

 

Netting

 

 

 

 

 

 

 

 

 

 

 

(16,565

)

Total derivative liabilities with nonaffiliates after netting

 

 

 

 

 

17,498

 

 

 

 

 

 

933

 

Credit risk transfer strips

 

 

 

 

 

 

 

 

5,999

 

 

 

5,999

 

Total derivative and credit risk transfer strip liabilities
    with nonaffiliates

 

 

 

 

 

17,498

 

 

 

5,999

 

 

 

6,932

 

Derivative liabilities with PennyMac Financial Services, Inc:

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate lock commitments

 

 

 

 

 

 

 

 

2,257

 

 

 

2,257

 

Forward purchase contracts

 

 

 

 

 

142

 

 

 

 

 

 

142

 

Total derivative liabilities with PennyMac Financial
   Services, Inc before netting

 

 

 

 

 

142

 

 

 

2,257

 

 

 

2,399

 

Netting

 

 

 

 

 

 

 

 

 

 

 

(142

)

Total derivative liabilities with PennyMac Financial
  Services, Inc after netting:

 

 

 

 

 

142

 

 

 

2,257

 

 

 

2,257

 

 

$

 

 

$

7,806,943

 

 

$

45,906

 

 

$

7,836,142

 

 

 

 

 

 

December 31, 2024

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

 

 

(in thousands)

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Short-term investments

 

$

103,198

 

 

$

 

 

$

 

 

$

103,198

 

Mortgage-backed securities

 

 

 

 

 

3,977,446

 

 

 

86,260

 

 

 

4,063,706

 

Loans held for sale

 

 

 

 

 

2,108,347

 

 

 

7,971

 

 

 

2,116,318

 

Loans held for investment

 

 

 

 

 

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

 

 

 

 

 

 

 

 

3,867,394

 

 

 

3,867,394

 

 

$

109,726

 

 

$

8,334,286

 

 

$

3,996,430

 

 

$

12,401,031

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Interest-only security payable

 

$

 

 

$

 

 

$

34,222

 

 

$

34,222

 

Asset-backed financings of variable interest entities

 

 

 

 

 

2,040,375

 

 

 

 

 

 

2,040,375

 

Derivative liabilities and credit risk transfer strips:

 

 

 

 

 

 

 

 

 

 

 

 

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, 2025

 

Assets (1)

 

Interest-only stripped mortgage-backed securities

 

 

Loans
held
for sale

 

 

Loans
 held for investment

 

 

CRT
derivatives

 

 

Interest
rate lock
commitments
with nonaffiliates

 

 

Interest
rate lock
commitments
 with PFSI

 

 

CRT
strips

 

 

Mortgage
servicing
rights

 

 

Total

 

 

 

(in thousands)

 

Balance, December 31, 2024

 

$

86,260

 

 

$

7,971

 

 

$

1,866

 

 

$

29,377

 

 

$

444

 

 

$

 

 

$

(4,060

)

 

$

3,867,394

 

 

$

3,989,252

 

Purchases and issuances

 

 

 

 

 

3,290

 

 

 

 

 

 

 

 

 

8,152

 

 

 

17,614

 

 

 

 

 

 

 

 

 

29,056

 

Repayments and sales

 

 

(17,802

)

 

 

(8,265

)

 

 

(159

)

 

 

(11,054

)

 

 

 

 

 

 

 

 

(39,401

)

 

 

 

 

 

(76,681

)

Accrual of unearned discounts

 

 

8,677

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8,677

 

Amounts received pursuant to
   sales of loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

190,141

 

 

 

190,141

 

Changes in fair value included in
  income arising from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Changes in instrument - specific
credit risk

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other factors

 

 

(4,633

)

 

 

585

 

 

 

(2

)

 

 

14,336

 

 

 

11,920

 

 

 

17,798

 

 

 

37,462

 

 

 

(413,709

)

 

 

(336,243

)

 

 

(4,633

)

 

 

585

 

 

 

(2

)

 

 

14,336

 

 

 

11,920

 

 

 

17,798

 

 

 

37,462

 

 

 

(413,709

)

 

 

(336,243

)

Transfers of:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(20,516

)

 

 

(33,064

)

 

 

 

 

 

 

 

 

(53,580

)

Mortgage servicing rights relating to
   delinquent loans to Agency

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

876

 

 

 

876

 

Balance, December 31, 2025

 

$

72,502

 

 

$

3,581

 

 

$

1,705

 

 

$

32,659

 

 

$

 

 

$

2,348

 

 

$

(5,999

)

 

$

3,644,702

 

 

$

3,751,498

 

Changes in fair value recognized during
the year relating to assets still held
at December 31, 2025

 

$

(4,633

)

 

$

127

 

 

$

(28

)

 

$

3,572

 

 

$

 

 

$

2,348

 

 

$

(1,727

)

 

$

(413,709

)

 

$

(414,050

)

 

(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 held for sale at fair value upon purchase of the respective loans.

 

Liabilities

 

Year ended December 31, 2025

 

 

 

(in thousands)

 

Interest-only security payable:

 

 

 

Balance, December 31, 2024

 

$

34,222

 

Changes in fair value included in income arising from:

 

 

 

Changes in instrument - specific credit risk

 

 

 

Other factors

 

 

3,428

 

 

 

3,428

 

Balance, December 31, 2025

 

$

37,650

 

Changes in fair value recognized during the year relating
    to liability outstanding at December 31, 2025

 

$

3,428

 

 

 

 

 

Year ended December 31, 2024

 

Assets (1)

 

Interest-only stripped mortgage-backed securities

 

 

Loans
held
for sale

 

 

Loans
 held for investment

 

 

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 discount

 

 

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 held 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 held 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 income arising from:

 

 

 

Changes in instrument - specific credit risk

 

 

 

Other factors

 

 

1,555

 

 

 

1,555

 

Balance, September 30, 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 held 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 held 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 income 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

 

 

 

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:

 

 

 

December 31, 2025

 

 

December 31, 2024

 

 

 

Fair value

 

 

Principal
amount due
upon maturity

 

 

Difference

 

 

Fair value

 

 

Principal
amount due
upon maturity

 

 

Difference

 

 

 

(in thousands)

 

Loans held for sale:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current through 89 days delinquent

 

$

2,696,128

 

 

$

2,627,441

 

 

$

68,687

 

 

$

2,114,556

 

 

$

2,092,030

 

 

$

22,526

 

90 or more days delinquent:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Not in foreclosure

 

 

1,273

 

 

 

1,271

 

 

 

2

 

 

 

1,687

 

 

 

2,114

 

 

 

(427

)

In foreclosure

 

 

1,997

 

 

 

2,289

 

 

 

(292

)

 

 

75

 

 

 

96

 

 

 

(21

)

 

 

3,270

 

 

 

3,560

 

 

 

(290

)

 

 

1,762

 

 

 

2,210

 

 

 

(448

)

 

$

2,699,398

 

 

$

2,631,001

 

 

$

68,397

 

 

$

2,116,318

 

 

$

2,094,240

 

 

$

22,078

 

Loans held for investment:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Held in consolidated VIEs:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current through 89 days delinquent

 

$

8,529,906

 

 

$

8,353,814

 

 

$

176,092

 

 

$

2,190,432

 

 

$

2,413,214

 

 

$

(222,782

)

90 or more days delinquent:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Not in foreclosure

 

 

700

 

 

 

844

 

 

 

(144

)

 

 

1,277

 

 

 

1,658

 

 

 

(381

)

In foreclosure

 

 

333

 

 

 

428

 

 

 

(95

)

 

 

 

 

 

 

 

 

 

 

 

1,033

 

 

 

1,272

 

 

 

(239

)

 

 

1,277

 

 

 

1,658

 

 

 

(381

)

 

 

8,530,939

 

 

 

8,355,086

 

 

 

175,853

 

 

 

2,191,709

 

 

 

2,414,872

 

 

 

(223,163

)

Distressed:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current through 89 days delinquent

 

 

371

 

 

 

476

 

 

 

(105

)

 

 

445

 

 

 

595

 

 

 

(150

)

90 or more days delinquent:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Not in foreclosure

 

 

942

 

 

 

2,553

 

 

 

(1,611

)

 

 

1,421

 

 

 

3,796

 

 

 

(2,375

)

In foreclosure

 

 

392

 

 

 

1,120

 

 

 

(728

)

 

 

 

 

 

 

 

 

 

 

 

1,334

 

 

 

3,673

 

 

 

(2,339

)

 

 

1,421

 

 

 

3,796

 

 

 

(2,375

)

 

 

1,705

 

 

 

4,149

 

 

 

(2,444

)

 

 

1,866

 

 

 

4,391

 

 

 

(2,525

)

 

$

8,532,644

 

 

$

8,359,235

 

 

$

173,409

 

 

$

2,193,575

 

 

$

2,419,263

 

 

$

(225,688

)

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

Following are the changes in fair value included in current period income by consolidated statements of income line item for financial statement items accounted for under the fair value option:

 

 

 

Year ended December 31, 2025

 

 

 

Net gains on investments and financings

 

 

Net gains on loans held
for sale

 

 

Net loan
servicing fees

 

 

Net interest
expense

 

 

Total

 

 

 

(in thousands)

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage-backed securities

 

$

148,344

 

 

$

 

 

$

 

 

$

51,325

 

 

$

199,669

 

Loans held for sale

 

 

 

 

 

149,579

 

 

 

 

 

 

 

 

 

149,579

 

Loans held for investment

 

 

112,838

 

 

 

 

 

 

 

 

 

(30,726

)

 

 

82,112

 

Credit risk transfer strips

 

 

37,462

 

 

 

 

 

 

 

 

 

 

 

 

37,462

 

Mortgage servicing rights

 

 

 

 

 

 

 

 

(413,709

)

 

 

 

 

 

(413,709

)

 

$

298,644

 

 

$

149,579

 

 

$

(413,709

)

 

$

20,599

 

 

$

55,113

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-only security payable

 

$

(3,428

)

 

$

 

 

$

 

 

$

 

 

$

(3,428

)

Asset-backed financings of VIEs

 

 

(96,439

)

 

 

 

 

 

 

 

 

10,984

 

 

 

(85,455

)

 

$

(99,867

)

 

$

 

 

$

 

 

$

10,984

 

 

$

(88,883

)

 

 

 

 

Year ended December 31, 2024

 

 

 

Net gains on investments and financings

 

 

Net gains on loans held
for sale

 

 

Net loan
servicing fees

 

 

Net interest
expense

 

 

Total

 

 

 

(in thousands)

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage-backed securities

 

$

(80,838

)

 

$

 

 

$

 

 

$

28,773

 

 

$

(52,065

)

Loans held for sale

 

 

 

 

 

24,457

 

 

 

 

 

 

 

 

 

24,457

 

Loans held for investment

 

 

15,516

 

 

 

 

 

 

 

 

 

(1,808

)

 

 

13,708

 

Credit risk transfer strips

 

 

88,205

 

 

 

 

 

 

 

 

 

 

 

 

88,205

 

Mortgage servicing rights

 

 

 

 

 

 

 

 

(170,409

)

 

 

 

 

 

(170,409

)

 

$

22,883

 

 

$

24,457

 

 

$

(170,409

)

 

$

26,965

 

 

$

(96,104

)

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-only security payable

 

$

(1,555

)

 

$

 

 

$

 

 

$

 

 

$

(1,555

)

Asset-backed financings of VIEs

 

 

(7,396

)

 

 

 

 

 

 

 

 

(3,653

)

 

 

(11,049

)

 

$

(8,951

)

 

$

 

 

$

 

 

$

(3,653

)

 

$

(12,604

)

 

 

 

Year ended December 31, 2023

 

 

 

Net gains on investments and financings

 

 

Net gains on loans held
for sale

 

 

Net loan
servicing fees

 

 

Net interest
expense

 

 

Total

 

 

 

(in thousands)

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage-backed securities

 

$

74,984

 

 

$

 

 

$

 

 

$

1,986

 

 

$

76,970

 

Loans held for sale

 

 

 

 

 

15,025

 

 

 

 

 

 

 

 

 

15,025

 

Loans held for investment

 

 

17,439

 

 

 

 

 

 

 

 

 

(2,127

)

 

 

15,312

 

Credit risk transfer strips

 

 

136,753

 

 

 

 

 

 

 

 

 

 

 

 

136,753

 

Mortgage servicing rights

 

 

 

 

 

 

 

 

(296,847

)

 

 

 

 

 

(296,847

)

 

$

229,176

 

 

$

15,025

 

 

$

(296,847

)

 

$

(141

)

 

$

(52,787

)

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-only security payable

 

$

(10,742

)

 

$

 

 

$

 

 

$

 

 

$

(10,742

)

Asset-backed financings of VIEs

 

 

(13,678

)

 

 

 

 

 

 

 

 

(496

)

 

 

(14,174

)

 

$

(24,420

)

 

$

 

 

$

 

 

$

(496

)

 

$

(24,916

)

Summary of Carrying Value of Financial Statement Items Remeasured Based on Fair Value on Nonrecurring Basis 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, 2025

 

$

 

 

$

 

 

$

30

 

 

$

30

 

December 31, 2024

 

$

 

 

$

 

 

$

532

 

 

$

532

 

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 during the year based on fair value on a nonrecurring basis:

 

 

 

Year ended December 31,

 

 

 

2025

 

 

2024

 

 

2023

 

 

 

(in thousands)

 

Real estate acquired in settlement of loans

 

$

(68

)

 

$

(348

)

 

$

(223

)

 

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, 2025

 

 

December 31, 2024

 

Instrument

 

Carrying value

 

 

Fair value

 

 

Carrying value

 

 

Fair value

 

 

 

(in thousands)

 

Notes payable secured by credit risk transfer
    and mortgage servicing assets

 

$

2,258,128

 

 

$

2,268,438

 

 

$

2,929,790

 

 

$

2,944,956

 

Unsecured senior notes

 

$

1,028,300

 

 

$

1,073,341

 

 

$

605,860

 

 

$

606,185

 

Key Inputs Used in Determining Fair Value of IO Securities

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

 

 

 

December 31, 2025

 

 

December 31, 2024

 

Fair value (in thousands)

 

$

72,502

 

 

$

86,260

 

Key inputs (1)

 

 

 

 

 

 

Option-adjusted spread (2)

 

 

 

 

 

 

Range

 

4.7% – 4.7%

 

 

 

 

Weighted average

 

4.7%

 

 

 

 

Pricing spread (3)

 

 

 

 

 

 

Range

 

 

 

 

5.9% – 6.5%

 

Weighted average

 

 

 

 

6.5%

 

Annual total prepayment speed (4)

 

 

 

 

 

 

Range

 

11.0% – 13.6%

 

 

9.4% – 10.2%

 

Weighted average

 

11.0%

 

 

9.4%

 

Equivalent life (in years)

 

 

 

 

 

 

Range

 

4.0 – 7.7

 

 

4.6 – 8.0

 

Weighted average

 

7.6

 

 

7.9

 

 

(1)
Weighted-average inputs are based on the UPB of the underlying loans.
(2)
Beginning July 1, 2025, the Company applied an option-adjusted spread to multiple simulated paths of a derived United States Treasury securities (“Treasury") yield curve for purposes of discounting cash flows relating to IO stripped MBS.
(3)
Pricing spread represents a margin that is applied to a reference interest rate’s forward rate curve to develop periodic discount rates. Through June 30, 2025, the Company applied a pricing spread to a derived Treasury yield curve for purposes of discounting cash flows relating to IO stripped MBS.
(4)
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, 2025

 

 

December 31, 2024

 

 

 

(dollars in thousands)

 

Fair value

 

$

32,659

 

 

$

29,377

 

UPB of loans in reference pools

 

$

4,555,682

 

 

$

4,961,644

 

Key inputs (1)

 

 

 

 

 

 

Discount rate

 

 

 

 

 

 

Range

 

8.6% – 14.1%

 

 

9.0% – 11.4%

 

Weighted average

 

8.8%

 

 

9.3%

 

Voluntary prepayment speed (2)

 

 

 

 

 

 

Range

 

6.3% – 7.6%

 

 

7.0% – 7.6%

 

Weighted average

 

7.3%

 

 

7.3%

 

Involuntary prepayment speed (3)

 

 

 

 

 

 

Range

 

0.1% – 0.3%

 

 

0.1% – 0.2%

 

Weighted average

 

0.1%

 

 

0.1%

 

Remaining loss expectation

 

 

 

 

 

 

Range

 

0.0% – 0.1%

 

 

0.0% – 0.2%

 

Weighted average

 

0.1%

 

 

0.1%

 

 

(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, 2025

 

 

December 31, 2024

 

Fair value (in thousands) (1)

 

$

2,348

 

 

$

444

 

Committed amount (in thousands)

 

$

1,207,859

 

 

$

1,166,566

 

Key inputs (2)

 

 

 

 

 

 

Pull-through rate

 

 

 

 

 

 

Range

 

50.5% – 100%

 

 

51.0% – 98.0%

 

Weighted average

 

90.9%

 

 

86.3%

 

MSR fair value expressed as

 

 

 

 

 

 

Servicing fee multiple

 

 

 

 

 

 

Range

 

1.7 – 8.4

 

 

2.6 – 7.8

 

Weighted average

 

5.4

 

 

5.7

 

Percentage of unpaid principal balance

 

 

 

 

 

 

Range

 

0.4% – 3.2%

 

 

0.6% – 2.7%

 

Weighted average

 

1.9%

 

 

1.9%

 

 

 

(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, 2025

 

 

December 31, 2024

 

 

 

(dollars in thousands)

 

Fair value

 

$

5,999

 

 

$

4,060

 

Unpaid principal balance of loans in the reference pools

 

$

14,961,848

 

 

$

16,287,660

 

Key inputs (1)

 

 

 

 

 

 

Discount rate

 

 

 

 

 

 

Range

 

5.0% – 8.6%

 

 

7.1% – 9.1%

 

Weighted average

 

8.1%

 

 

8.8%

 

Voluntary prepayment speed (2)

 

 

 

 

 

 

Range

 

7.0% – 7.5%

 

 

6.9% – 7.5%

 

Weighted average

 

7.1%

 

 

7.0%

 

Involuntary prepayment speed (3)

 

 

 

 

 

 

Range

 

0.1% – 0.3%

 

 

0.1% – 0.3%

 

Weighted average

 

0.1%

 

 

0.1%

 

Remaining loss expectation

 

 

 

 

 

 

Range

 

0.4% – 1.4%

 

 

0.4% – 1.5%

 

Weighted average

 

0.5%

 

 

0.5%

 

 

(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,

 

 

 

2025

 

 

2024

 

 

2023

 

MSRs recognized (in thousands)

 

$

190,141

 

 

$

219,001

 

 

$

292,527

 

Unpaid principal balance of underlying loans (in thousands)

 

$

10,233,335

 

 

$

12,240,231

 

 

$

15,966,491

 

Weighted average annual servicing fee rate (in basis points)

 

33

 

 

35

 

 

39

 

Key inputs (1)

 

 

 

 

 

 

 

 

 

Prepayment speed (2)

 

 

 

 

 

 

 

 

 

Range

 

8.7% – 15.5%

 

 

8.7% – 26.7%

 

 

10.1% – 22.7%

 

Weighted average

 

9.8%

 

 

12.2%

 

 

12.4%

 

Equivalent average life (in years)

 

 

 

 

 

 

 

 

 

Range

 

3.7 – 8.3

 

 

3.4 – 8.1

 

 

2.8 - 7.2

 

Weighted average

 

8.0

 

 

6.9

 

 

6.8

 

Pricing spread (3)

 

 

 

 

 

 

 

 

 

Range

 

4.8% – 10.0%

 

 

5.4% – 8.5%

 

 

5.5% – 8.8%

 

Weighted average

 

5.6%

 

 

5.6%

 

 

5.8%

 

Annual per-loan cost of servicing

 

 

 

 

 

 

 

 

 

Range

 

$68 – $91

 

 

$68 – $87

 

 

$68 – $83

 

Weighted average

 

$69

 

 

$69

 

 

$70

 

 

(1)
Weighted-average inputs are based on the UPB of the underlying loans.
(2)
Annual total prepayment speed is measured using life total CPR, which includes both voluntary and involuntary prepayments. Equivalent average life is provided as supplementary information.
(3)
Pricing spread represents a margin that is applied to a reference interest rate’s forward rate curve to develop periodic discount rates. The Company applies a pricing spread to a derived Treasury yield curve for purposes of discounting cash flows relating to its initial recognition of MSRs.
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, 2025

 

 

December 31, 2024

 

Fair value (in thousands)

 

$

3,644,702

 

 

$

3,867,394

 

Unpaid principal balance of underlying loans (in thousands)

 

$

215,781,639

 

 

$

226,237,613

 

Weighted average annual servicing fee rate (in basis points)

 

28

 

 

27

 

Weighted average note interest rate

 

3.9%

 

 

3.8%

 

Key inputs (1)

 

 

 

 

 

 

Prepayment speed (2)

 

 

 

 

 

 

Range

 

7.0% – 21.5%

 

 

6.5% – 17.7%

 

Weighted average

 

8.4%

 

 

6.7%

 

Equivalent average life (in years)

 

 

 

 

 

 

Range

 

2.1 – 7.9

 

 

2.4 – 8.9

 

Weighted average

 

7.7

 

 

8.6

 

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

 

 

 

 

 

 

5% adverse change

 

$(61,563)

 

 

$(51,798)

 

10% adverse change

 

$(120,960)

 

 

$(102,010)

 

20% adverse change

 

$(233,683)

 

 

$(197,970)

 

Option-adjusted spread (4)

 

 

 

 

 

 

Range

 

3.6% – 6.2%

 

 

 

 

Weighted average

 

3.6%

 

 

 

 

Pricing spread (5)

 

 

 

 

 

 

Range

 

 

 

 

5.4% – 8.1%

 

Weighted average

 

 

 

 

5.4%

 

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

 

 

 

 

 

 

5% adverse change

 

$(30,295)

 

 

$(47,568)

 

10% adverse change

 

$(60,089)

 

 

$(94,018)

 

20% adverse change

 

$(118,218)

 

 

$(183,710)

 

Annual per-loan cost of servicing

 

 

 

 

 

 

Range

 

$68 – $90

 

 

$69 – $89

 

Weighted average

 

$68

 

 

$69

 

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

 

 

 

 

 

 

5% adverse change

 

$(15,979)

 

 

$(16,645)

 

10% adverse change

 

$(31,959)

 

 

$(33,291)

 

20% adverse change

 

$(63,918)

 

 

$(66,582)

 

 

(1)
Weighted-average inputs are based on the UPB of the underlying loans.
(2)
Prepayment speed is measured using life total CPR, which includes both voluntary and involuntary prepayments. Equivalent average life is provided as supplementary information.
(3)
These sensitivity analyses are limited in that they were performed as of a particular date; only contemplate the movements in the indicated inputs; do not incorporate changes to other inputs; are subject to the accuracy of the models and inputs used; and do not incorporate other factors that would affect the Company’s overall financial performance in such events, including operational adjustments made to account for changing circumstances. For these reasons, these analyses should not be viewed as earnings forecasts.
(4)
The option-adjusted spread is a margin that is applied to a reference interest rate’s projected curve to develop periodic discount rates. Beginning July 1, 2025, the Company applies an option-adjusted spread to multiple simulated paths of a derived Treasury yield curve for purposes of discounting cash flows relating to period-end MSRs.
(5)
Pricing spread represents a margin that is applied to a reference interest rate’s forward rate curve to develop periodic discount rates. Through June 30, 2025, the Company applied a fixed pricing spread to a derived Treasury yield curve for purposes of discounting cash flows relating to period-end MSRs.
v3.25.4
Mortgage-Backed Securities (Tables)
12 Months Ended
Dec. 31, 2025
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,

 

 

 

2025

 

 

2024

 

 

2023

 

 

 

(in thousands)

 

Balance at beginning of year

 

$

4,063,706

 

 

$

4,836,292

 

 

$

4,462,601

 

Purchases

 

 

942,462

 

 

 

638,155

 

 

 

3,172,193

 

Sales

 

 

(194,513

)

 

 

(1,071,692

)

 

 

(2,629,540

)

Repayments

 

 

(558,465

)

 

 

(417,279

)

 

 

(349,479

)

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

 

 

51,325

 

 

 

28,773

 

 

 

1,986

 

Valuation adjustments, net

 

 

148,344

 

 

 

(80,838

)

 

 

74,984

 

 

 

199,669

 

 

 

(52,065

)

 

 

76,970

 

Balance at end of year

 

$

4,452,859

 

 

$

4,063,706

 

 

$

4,836,292

 

Schedule of Mortgage Backed Securities Pledged to Secure Assets Sold

 

 

December 31, 2025

 

 

December 31, 2024

 

 

 

(in thousands)

 

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

 

$

4,452,859

 

 

$

4,063,706

 

Schedule of Investments in Mortgage Backed Securities

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

 

 

 

December 31, 2025

 

Security type (1)

 

Principal
balance or notional amount

 

 

Purchase discounts, net

 

 

Cumulative
valuation
changes

 

 

Fair value

 

 

 

(in thousands)

 

Agency fixed-rate pass-through

 

$

2,805,895

 

 

$

(2,125

)

 

$

46,677

 

 

$

2,850,447

 

Floating rate collateralized mortgage obligations

 

 

850,172

 

 

 

(1,249

)

 

 

7,074

 

 

 

855,997

 

Principal-only stripped

 

 

610,256

 

 

 

(115,385

)

 

 

26,258

 

 

 

521,129

 

Senior non-Agency

 

 

155,369

 

 

 

(3,039

)

 

 

454

 

 

 

152,784

 

 

$

4,421,692

 

 

$

(121,798

)

 

$

80,463

 

 

 

4,380,357

 

Interest-only stripped

 

$

344,592

 

 

 

 

 

 

 

 

 

72,502

 

 

 

 

 

 

 

 

 

 

 

 

$

4,452,859

 

 

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

 

 

 

December 31, 2024

 

Security type

 

Principal
balance or notional amount

 

 

Purchase discounts, net

 

 

Cumulative
valuation
changes

 

 

Fair value

 

 

 

(in thousands)

 

Agency fixed-rate pass-through

 

$

3,132,005

 

 

$

(901

)

 

$

(51,612

)

 

$

3,079,492

 

Principal-only stripped

 

 

776,455

 

 

 

(160,960

)

 

 

(19,195

)

 

 

596,300

 

Subordinate credit-linked

 

 

174,813

 

 

 

(4,292

)

 

 

25,951

 

 

 

196,472

 

Senior non-Agency

 

 

111,479

 

 

 

(3,269

)

 

 

(3,028

)

 

 

105,182

 

 

$

4,194,752

 

 

$

(169,422

)

 

$

(47,884

)

 

 

3,977,446

 

Interest-only stripped

 

$

386,040

 

 

 

 

 

 

 

 

 

86,260

 

 

 

 

 

 

 

 

 

 

 

$

4,063,706

 

v3.25.4
Loans Held for Sale at Fair Value (Tables)
12 Months Ended
Dec. 31, 2025
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Abstract]  
Summary of Distribution of Company's Loans Held for Sale at Fair Value

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

 

Loan type

 

December 31, 2025

 

 

December 31, 2024

 

 

 

(in thousands)

 

Held for sale to nonaffiliates—GSE eligible (1)

 

$

2,232,706

 

 

$

1,311,754

 

Jumbo

 

 

433,027

 

 

 

194,485

 

Non-qualified

 

 

30,084

 

 

 

 

Home equity lines of credit

 

 

942

 

 

 

1,368

 

Repurchased pursuant to representations and warranties

 

 

2,639

 

 

 

6,603

 

 

 

 

2,699,398

 

 

 

1,514,210

 

Held for sale to PLS:

 

 

 

 

 

 

GSE eligible

 

 

 

 

 

175,145

 

Government insured or guaranteed

 

 

 

 

 

426,963

 

 

 

 

 

 

 

602,108

 

 

$

2,699,398

 

 

$

2,116,318

 

Loans pledged to secure:

 

 

 

 

 

 

Assets sold under agreements to repurchase

 

$

2,676,700

 

 

$

2,075,473

 

Mortgage loan participation purchase and sale agreements

 

 

 

 

 

12,142

 

 

$

2,676,700

 

 

$

2,087,615

 

 

(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.
v3.25.4
Loans Held for Investment at Fair Value (Tables)
12 Months Ended
Dec. 31, 2025
Mortgage Loans At Fair Value [Abstract]  
Summary of Distribution of Company's Held for Investment

Following is a summary of the distribution of the Company’s loans held for investment:

 

Loan type

 

December 31, 2025

 

 

December 31, 2024

 

 

 

(in thousands)

 

Loans in variable interest entities:

 

 

 

 

 

 

Agency-conforming loans secured by:

 

 

 

 

 

 

Non-owner occupied properties

 

$

6,332,497

 

 

$

2,146,328

 

Owner occupied properties

 

 

588,788

 

 

 

 

Fixed interest rate jumbo loans

 

 

1,609,654

 

 

 

45,381

 

 

 

8,530,939

 

 

 

2,191,709

 

Distressed loans

 

 

1,705

 

 

 

1,866

 

 

$

8,532,644

 

 

$

2,193,575

 

Loans held for investment pledged to secure:

 

 

 

 

 

 

Asset-backed financings at fair value (1)

 

$

8,530,939

 

 

$

2,191,709

 

Assets sold under agreements to repurchase

 

 

 

 

 

160

 

 

$

8,530,939

 

 

$

2,191,869

 

 

(1)
As discussed in Note 6Variable Interest EntitiesSubordinate and Senior Non-Agency Mortgage-Backed Securities, the Company holds a portion of the securities issued by the VIEs. At December 31, 2025 and December 31, 2024, $648.2 million and $130.8 million, respectively, of such retained securities were pledged to secure Assets sold under agreements to repurchase.
v3.25.4
Derivative and Credit Risk Transfer Strip Assets and Liabilities (Tables)
12 Months Ended
Dec. 31, 2025
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, 2025

 

 

December 31, 2024

 

 

 

(in thousands)

 

Derivative assets with nonaffiliates

 

$

49,696

 

 

$

56,840

 

Derivative assets with PennyMac Financial Services, Inc.

 

$

6,247

 

 

$

 

 

 

 

 

 

 

Derivative liabilities with nonaffiliates

 

$

933

 

 

$

3,291

 

Credit risk transfer strip liabilities

 

 

5,999

 

 

 

4,060

 

 

$

6,932

 

 

$

7,351

 

Derivative liabilities with PennyMac Financial Services, Inc.

 

$

2,257

 

 

$

 

 

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, 2025

 

 

December 31, 2024

 

 

 

 

 

 

Fair value

 

 

 

 

 

Fair value

 

 

 

Notional

 

 

Derivative

 

 

Derivative

 

 

Notional

 

 

Derivative

 

 

Derivative

 

Instrument

 

amount (1)

 

 

assets

 

 

liabilities

 

 

amount (1)

 

 

assets

 

 

liabilities

 

 

(in thousands)

 

Nonaffiliates:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Hedging derivatives subject to master netting
  arrangements (2):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Call options on interest rate futures purchase contracts

 

 

3,250,000

 

 

$

1,289

 

 

$

 

 

 

500,000

 

 

$

156

 

 

$

 

Put options on interest rate futures purchase contracts

 

 

2,500,000

 

 

 

4,109

 

 

 

 

 

 

1,690,000

 

 

 

6,372

 

 

 

 

Forward purchase contracts

 

 

3,703,628

 

 

 

4,113

 

 

 

158

 

 

 

1,154,515

 

 

 

614

 

 

 

6,336

 

Forward sale contracts

 

 

7,933,760

 

 

 

2,381

 

 

 

17,340

 

 

 

7,080,982

 

 

 

54,056

 

 

 

1,753

 

MBS put options

 

 

 

 

 

 

 

 

 

 

 

450,000

 

 

 

2,114

 

 

 

 

Bond futures

 

 

1,896,100

 

 

 

 

 

 

 

 

 

1,713,000

 

 

 

 

 

 

 

Swap futures

 

 

751,200

 

 

 

 

 

 

 

 

 

951,200

 

 

 

 

 

 

 

Other derivatives not subject to master netting arrangements:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CRT derivatives

 

 

455,682

 

 

 

32,659

 

 

 

 

 

 

4,961,644

 

 

 

29,377

 

 

 

 

Interest rate lock commitments

 

 

 

 

 

 

 

 

 

 

 

1,166,566

 

 

 

3,562

 

 

 

3,118

 

Total derivative instruments before netting

 

 

 

 

 

44,551

 

 

 

17,498

 

 

 

 

 

 

96,251

 

 

 

11,207

 

Netting

 

 

 

 

 

5,145

 

 

 

(16,565

)

 

 

 

 

 

(39,411

)

 

 

(7,916

)

 

 

 

 

$

49,696

 

 

$

933

 

 

 

 

 

$

56,840

 

 

$

3,291

 

 PennyMac Financial Services, Inc.:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate lock commitments not subject to master netting
    arrangements

 

 

1,207,859

 

 

 

4,605

 

 

 

2,257

 

 

 

 

 

 

 

 

 

 

Forward purchase contract subject to master netting arrangement

 

 

250,638

 

 

 

1,784

 

 

 

142

 

 

 

 

 

 

 

 

 

 

Total derivatives before netting

 

 

 

 

 

6,389

 

 

 

2,399

 

 

 

 

 

 

 

 

 

 

Netting

 

 

 

 

 

(142

)

 

 

(142

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

6,247

 

 

$

2,257

 

 

 

 

 

$

 

 

$

 

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

 

 

 

 

$

21,710

 

 

 

 

 

 

 

 

$

(31,497

)

 

 

 

Derivative assets pledged to secure:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets Sold Under Agreements to Repurchase and Notes
   payable secured by credit risk transfer and mortgage
  servicing assets

 

 

 

 

$

32,659

 

 

 

 

 

 

 

 

$

29,377

 

 

 

 

 

(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, 2025

 

 

December 31, 2024

 

 

 

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

 

$

32,659

 

 

$

 

 

$

 

 

$

32,659

 

 

$

29,377

 

 

$

 

 

$

 

 

$

29,377

 

Interest rate lock commitments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonaffiliates

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3,562

 

 

 

 

 

 

 

 

 

3,562

 

PennyMac Financial Services, Inc.

 

 

4,605

 

 

 

 

 

 

 

 

 

4,605

 

 

 

 

 

 

 

 

 

 

 

 

 

RJ O’Brien & Associates, LLC

 

 

5,398

 

 

 

 

 

 

 

 

 

5,398

 

 

 

6,528

 

 

 

 

 

 

 

 

 

6,528

 

Bank of America, N.A.

 

 

4,745

 

 

 

 

 

 

 

 

 

4,745

 

 

 

3,150

 

 

 

 

 

 

 

 

 

3,150

 

Morgan Stanley & Co. LLC

 

 

3,500

 

 

 

 

 

 

 

 

 

3,500

 

 

 

9,303

 

 

 

 

 

 

 

 

 

9,303

 

PennyMac Financial Services, Inc.

 

 

1,642

 

 

 

 

 

 

 

 

 

1,642

 

 

 

 

 

 

 

 

 

 

 

 

 

Goldman Sachs & Co. LLC

 

 

950

 

 

 

 

 

 

 

 

 

950

 

 

 

251

 

 

 

 

 

 

 

 

 

251

 

Wells Fargo Securities, LLC

 

 

603

 

 

 

 

 

 

 

 

 

603

 

 

 

895

 

 

 

 

 

 

 

 

 

895

 

Mizuho Financial Group

 

 

442

 

 

 

 

 

 

 

 

 

442

 

 

 

 

 

 

 

 

 

 

 

 

 

BNP Paribas

 

 

236

 

 

 

 

 

 

 

 

 

236

 

 

 

 

 

 

 

 

 

 

 

 

 

Citigroup Global Markets Inc.

 

 

217

 

 

 

 

 

 

 

 

 

217

 

 

 

712

 

 

 

 

 

 

 

 

 

712

 

Ellington Management

 

 

198

 

 

 

 

 

 

 

 

 

198

 

 

 

 

 

 

 

 

 

 

 

 

 

Metro Life Ins Co

 

 

151

 

 

 

 

 

 

 

 

 

151

 

 

 

 

 

 

 

 

 

 

 

 

 

Nomura

 

 

137

 

 

 

 

 

 

 

 

 

137

 

 

 

 

 

 

 

 

 

 

 

 

 

Barclays Capital Inc.

 

 

103

 

 

 

 

 

 

 

 

 

103

 

 

 

12

 

 

 

 

 

 

 

 

 

12

 

J.P. Morgan Securities LLC

 

 

102

 

 

 

 

 

 

 

 

 

102

 

 

 

1,237

 

 

 

 

 

 

 

 

 

1,237

 

Other

 

 

255

 

 

 

 

 

 

 

 

 

255

 

 

 

1,813

 

 

 

 

 

 

 

 

 

1,813

 

 

$

55,943

 

 

$

 

 

$

 

 

$

55,943

 

 

$

56,840

 

 

$

 

 

$

 

 

$

56,840

 

 

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

 

 

 

December 31, 2025

 

 

December 31, 2024

 

 

 

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:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonaffiliates

 

$

 

 

$

 

 

$

 

 

$

 

 

$

3,118

 

 

$

 

 

$

 

 

$

3,118

 

PennyMac Financial Services, Inc.

 

 

2,257

 

 

 

 

 

 

 

 

 

2,257

 

 

 

 

 

 

 

 

 

 

 

 

 

J.P. Morgan Securities LLC

 

 

1,536,038

 

 

 

(1,536,038

)

 

 

 

 

 

 

 

 

1,695,007

 

 

 

(1,695,007

)

 

 

 

 

 

 

Atlas Securitized Products, L.P.

 

 

1,216,779

 

 

 

(1,216,779

)

 

 

 

 

 

 

 

 

609,780

 

 

 

(609,780

)

 

 

 

 

 

 

Bank of America, N.A.

 

 

1,074,334

 

 

 

(1,074,334

)

 

 

 

 

 

 

 

 

787,883

 

 

 

(787,883

)

 

 

 

 

 

 

Santander US Capital

 

 

952,951

 

 

 

(952,933

)

 

 

 

 

 

18

 

 

 

362,196

 

 

 

(362,196

)

 

 

 

 

 

 

Wells Fargo Securities, LLC

 

 

782,547

 

 

 

(782,547

)

 

 

 

 

 

 

 

 

670,605

 

 

 

(670,605

)

 

 

 

 

 

 

RBC Capital Markets, L.P.

 

 

438,781

 

 

 

(438,781

)

 

 

 

 

 

 

 

 

353,765

 

 

 

(353,765

)

 

 

 

 

 

 

Barclays Capital Inc.

 

 

431,016

 

 

 

(431,016

)

 

 

 

 

 

 

 

 

545,678

 

 

 

(545,678

)

 

 

 

 

 

 

Citigroup Global Markets Inc.

 

 

397,162

 

 

 

(397,162

)

 

 

 

 

 

 

 

 

431,201

 

 

 

(431,201

)

 

 

 

 

 

 

Morgan Stanley & Co. LLC

 

 

319,500

 

 

 

(319,500

)

 

 

 

 

 

 

 

 

280,561

 

 

 

(280,561

)

 

 

 

 

 

 

Nomura Holdings America, Inc

 

 

231,308

 

 

 

(231,308

)

 

 

 

 

 

 

 

 

36

 

 

 

 

 

 

 

 

 

36

 

Daiwa Capital Markets

 

 

195,268

 

 

 

(195,268

)

 

 

 

 

 

 

 

 

230,033

 

 

 

(230,033

)

 

 

 

 

 

 

Goldman Sachs & Co. LLC

 

 

151,274

 

 

 

(151,274

)

 

 

 

 

 

 

 

 

311,997

 

 

 

(311,997

)

 

 

 

 

 

 

Bank of Montreal

 

 

160,388

 

 

 

(160,324

)

 

 

 

 

 

64

 

 

 

72,859

 

 

 

(72,859

)

 

 

 

 

 

 

Mizuho Financial Group

 

 

81,701

 

 

 

(81,701

)

 

 

 

 

 

 

 

 

98,196

 

 

 

(98,121

)

 

 

 

 

 

75

 

BNP Paribas

 

 

54,191

 

 

 

(54,191

)

 

 

 

 

 

 

 

 

59,729

 

 

 

(59,729

)

 

 

 

 

 

 

Other

 

 

851

 

 

 

 

 

 

 

 

 

851

 

 

 

62

 

 

 

 

 

 

 

 

 

62

 

 

$

8,026,346

 

 

$

(8,023,156

)

 

$

 

 

$

3,190

 

 

$

6,512,706

 

 

$

(6,509,415

)

 

$

 

 

$

3,291

 

 

(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 income line items where such gains and losses are included:

 

 

 

 

 

Year ended December 31,

 

Derivative activity

 

Consolidated statements of income line

 

2025

 

 

2024

 

 

2023

 

 

 

 

 

(in thousands)

 

Interest rate lock commitments

 

Net gains on loans held for sale (1)

 

$

1,904

 

 

$

(7,089

)

 

$

8,010

 

CRT derivatives

 

Net gains on investments and financings

 

$

14,336

 

 

$

27,020

 

 

$

56,544

 

Hedged item:

 

 

 

 

 

 

 

 

 

 

 

Interest rate lock commitments and loans
  held for sale

 

Net gains on loans held for sale

 

$

(90,108

)

 

$

19,896

 

 

$

4,636

 

Mortgage servicing rights

 

Net loan servicing fees

 

$

(172,931

)

 

$

(226,608

)

 

$

(92,775

)

Assets sold under agreements to
  repurchase

 

Net gains on investments and financings

 

$

 

 

$

20,098

 

 

$

(83,201

)

 

(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.
v3.25.4
Mortgage Servicing Rights (Tables)
12 Months Ended
Dec. 31, 2025
Text Block [Abstract]  
Summary of MSRs Carried at Fair Value

Following is a summary of MSRs:

 

 

 

Year ended December 31,

 

 

 

 

2025

 

 

2024

 

 

2023

 

 

 

(in thousands)

 

 

Balance at beginning of year

 

$

3,867,394

 

 

$

3,919,107

 

 

$

4,012,737

 

 

MSRs resulting from loan sales

 

 

190,141

 

 

 

219,001

 

 

 

292,527

 

 

Purchases

 

 

 

 

 

29,429

 

 

 

16,258

 

 

Transfers to Agency of mortgage servicing rights relating to
  delinquent loans

 

 

876

 

 

 

561

 

 

 

(472

)

 

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)

 

 

(33,846

)

 

 

217,182

 

 

 

87,811

 

 

Other changes in fair value (2)

 

 

(379,863

)

 

 

(387,591

)

 

 

(384,658

)

 

 

 

(413,709

)

 

 

(170,409

)

 

 

(296,847

)

 

Balance at end of year

 

$

3,644,702

 

 

$

3,867,394

 

 

$

3,919,107

 

 

 

 

 

December 31, 2025

 

 

December 31, 2024

 

 

 

(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

 

$

3,582,211

 

 

$

3,807,065

 

 

(1)
Primarily reflects changes in prepayment speed, pricing spread or OAS, 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 income and are summarized below:

 

 

 

Year ended December 31,

 

 

 

 

2025

 

 

2024

 

 

2023

 

 

 

 

(in thousands)

Contractually specified servicing fees

 

$

608,025

 

 

$

644,642

 

 

$

659,438

 

 

Ancillary and other fees:

 

 

 

 

 

 

 

 

 

 

Late charges

 

 

4,244

 

 

 

4,056

 

 

 

3,352

 

 

Other

 

 

13,186

 

 

 

10,666

 

 

 

13,656

 

 

 

 

17,430

 

 

 

14,722

 

 

 

17,008

 

 

 

$

625,455

 

 

$

659,364

 

 

$

676,446

 

 

Average UPB of underlying loans

 

$

221,436,947

 

 

$

228,705,758

 

 

$

231,203,032

 

 

 

 

 

 

 

 

 

 

 

 

 

v3.25.4
Other Assets (Tables)
12 Months Ended
Dec. 31, 2025
Other Assets [Abstract]  
Summary of Other Assets

Other assets are summarized below:

 

 

 

December 31, 2025

 

 

December 31, 2024

 

 

 

(dollars in thousands)

 

Margin deposits

 

$

221,310

 

 

$

346,241

 

Interest receivable

 

 

72,684

 

 

 

38,661

 

Servicing fees receivable

 

 

9,586

 

 

 

10,820

 

Correspondent lending receivables

 

 

7,083

 

 

 

3,930

 

Other receivables

 

 

25,458

 

 

 

16,706

 

Real estate acquired in settlement of loans

 

 

1,421

 

 

 

2,464

 

Other

 

 

36,042

 

 

 

19,399

 

 

 

$

373,584

 

 

$

438,221

 

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

 

$

 

 

$

527

 

 

v3.25.4
Short-Term Debt (Tables)
12 Months Ended
Dec. 31, 2025
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,

 

 

 

2025

 

 

2024

 

 

2023

 

 

 

(dollars in thousands)

 

Weighted average interest rate (1)

 

 

5.10

%

 

 

5.94

%

 

 

5.91

%

Average balance

 

$

6,776,255

 

 

$

5,478,037

 

 

$

6,306,627

 

Total interest expense

 

$

352,660

 

 

$

331,800

 

 

$

378,367

 

Maximum daily amount outstanding

 

$

9,009,673

 

 

$

7,865,435

 

 

$

9,460,676

 

 

(1)
Excludes the effect of amortization of debt issuance costs and non-utilization fees of $7.1 million, $6.4 million and $5.5 million for the years ended December 31, 2025, 2024 and 2023, respectively.

 

 

 

December 31, 2025

 

 

December 31, 2024

 

 

 

(dollars in thousands)

 

Carrying value:

 

 

 

 

 

 

Unpaid principal balance

 

$

8,023,156

 

 

$

6,509,415

 

Unamortized debt issuance costs

 

 

(4,555

)

 

 

(8,477

)

 

 

$

8,018,601

 

 

$

6,500,938

 

Weighted average interest rate

 

 

4.71

%

 

 

5.37

%

Available borrowing capacity (1):

 

 

 

 

 

 

Committed

 

$

595,085

 

 

$

565,488

 

Uncommitted

 

 

5,032,598

 

 

 

4,559,239

 

 

$

5,627,683

 

 

$

5,124,727

 

Margin deposits placed with counterparties included in Other assets, net

 

$

174,598

 

 

$

296,922

 

Assets securing agreements to repurchase:

 

 

 

 

 

 

Mortgage-backed securities at fair value

 

$

4,452,859

 

 

$

4,063,706

 

Loans held for sale at fair value

 

$

2,676,700

 

 

$

2,075,473

 

Loans held for investment at fair value:

 

 

 

 

 

 

Securities retained in asset-backed financings

 

$

648,159

 

 

$

130,839

 

Distressed

 

$

 

 

$

160

 

Credit risk transfer arrangements:

 

 

 

 

 

 

Derivative assets

 

$

12,622

 

 

$

 

Deposits securing credit risk transfer arrangements

 

$

176,694

 

 

$

199,965

 

Mortgage servicing rights at fair value (2)

 

$

1,765,572

 

 

$

1,906,043

 

Servicing advances (3)

 

$

44,653

 

 

$

50,333

 

Real estate acquired in settlement of loans

 

$

 

 

$

527

 

 

(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.
(3)
Beneficial interests in Fannie Mae servicing advances are pledged to secure Assets sold under agreements to repurchase.
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, 2025 (1)

 

Unpaid
principal
balance

 

 

 

(in thousands)

 

Within 30 days

 

$

2,360,165

 

Over 30 to 90 days

 

 

5,207,433

 

Over 90 days to 180 days

 

 

 

Over 180 days to 1 year

 

 

39,539

 

Over 1 year to 2 years

 

 

416,019

 

 

$

8,023,156

 

Weighted average maturity (in months)

 

 

2.3

 

 

(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 decrease.
Summary of Assets Sold under Agreements to Repurchase by Counterparty

Securities

 

Counterparty

 

Amounts at risk

 

 

Weighted-average maturity

 

 

(in thousands)

 

 

 

Bank of America, N.A.

 

$

25,023

 

 

February 8, 2026

Santander US Capital

 

$

39,385

 

 

January 26, 2026

Citibank, N.A.

 

$

7,309

 

 

January 20, 2026

Goldman Sachs & Co. LLC

 

$

11,540

 

 

January 15, 2026

JPMorgan Chase & Co.

 

$

50,409

 

 

January 31, 2026

Wells Fargo Securities, LLC

 

$

24,014

 

 

January 31, 2026

Barclays Capital Inc.

 

$

12,815

 

 

January 22, 2026

Bank of Montreal

 

$

9,886

 

 

February 7, 2026

Daiwa Capital Markets America Inc.

 

$

5,374

 

 

February 5, 2026

Mizuho Financial Group

 

$

4,168

 

 

January 24, 2026

 

 

 

 

 

 

 

CRT arrangements

 

Counterparty

 

Amounts at risk

 

 

Weighted-average maturity

 

 

(in thousands)

 

 

 

Morgan Stanley & Co. LLC

 

$

17,502

 

 

January 28, 2026

RBC Capital Markets, L.P.

 

$

25,105

 

 

March 25, 2026

Summary of Mortgage Loan Participation Purchase and Sale Agreement

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

 

 

 

Year ended December 31,

 

 

 

2025

 

 

2024

 

 

2023

 

 

 

(dollars in thousands)

 

Average balance

 

$

4,937

 

 

$

17,852

 

 

$

19,079

 

Weighted average interest rate (1)

 

 

5.71

%

 

 

6.54

%

 

 

6.50

%

Total interest expense

 

$

407

 

 

$

1,292

 

 

$

1,365

 

Maximum daily amount outstanding

 

$

49,266

 

 

$

78,068

 

 

$

90,565

 

 

(1)
Excludes the effect of amortization of debt issuance costs of $125,000 for each of the years ended December 31, 2025, 2024 and 2023.

 

 

 

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 held for sale pledged to secure mortgage loan participation
   purchase and sale agreement

 

$

12,142

 

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

Loans and MSRs

 

 

 

 

 

Weighted-average maturity

Counterparty

 

Amounts at risk

 

 

Advances

 

Facility

 

 

(in thousands)

 

 

 

 

 

Atlas Securitized Products, L.P.

 

$

466,207

 

 

February 15, 2026

 

December 10, 2027

Bank of America, N.A.

 

$

63,914

 

 

January 5, 2026

 

February 17, 2027

Santander US Capital

 

$

31,295

 

 

April 10, 2026

 

April 10, 2026

Morgan Stanley & Co. LLC

 

$

48,663

 

 

February 21, 2026

 

September 26, 2027

Citibank, N.A.

 

$

57,419

 

 

February 22, 2026

 

August 7, 2026

Nomura Holdings America, Inc.

 

$

61,526

 

 

January 5, 2026

 

January 5, 2026

Goldman Sachs & Co. LLC

 

$

44,766

 

 

March 6, 2026

 

May 7, 2026

JPMorgan Chase & Co.

 

$

5,151

 

 

February 16, 2026

 

June 28, 2026

RBC Capital Markets, L.P.

 

$

26,024

 

 

March 16, 2026

 

October 23, 2026

Wells Fargo Securities, LLC

 

$

8,740

 

 

February 15, 2026

 

March 19, 2027

Barclays Capital Inc.

 

$

7,407

 

 

March 4, 2026

 

March 6, 2026

BNP Paribas

 

$

5,207

 

 

February 12, 2026

 

June 17, 2026

 

 

 

v3.25.4
Long-Term Debt (Tables)
12 Months Ended
Dec. 31, 2025
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,

 

 

 

2025

 

 

2024

 

 

2023

 

 

 

(dollars in thousands)

 

Average balance

 

$

2,598,600

 

 

$

2,883,379

 

 

$

2,969,174

 

Weighted average interest rate (1)

 

 

7.59

%

 

 

8.67

%

 

 

8.42

%

Total interest expense

 

$

205,517

 

 

$

261,008

 

 

$

257,601

 

 

(1)
Excludes the effect of amortization of debt issuance costs of $8.4 million, $11.0 million and $7.5 million for the years ended December 31, 2025, 2024 and 2023, respectively.

 

 

 

December 31, 2025

 

 

December 31, 2024

 

 

 

(dollars in thousands)

 

Carrying value:

 

 

 

 

 

 

Unpaid principal balance:

 

 

 

 

 

 

Credit risk transfer arrangement financing

 

$

608,903

 

 

$

710,329

 

Fannie Mae mortgage servicing rights financing

 

 

725,000

 

 

 

1,075,000

 

Freddie Mac mortgage servicing rights and servicing advance
    receivable financing

 

 

927,943

 

 

 

1,153,486

 

 

 

 

2,261,846

 

 

 

2,938,815

 

Unamortized debt issuance costs

 

 

(3,718

)

 

 

(9,025

)

 

$

2,258,128

 

 

$

2,929,790

 

Weighted average interest rate

 

 

6.91

%

 

 

7.60

%

Assets securing notes payable:

 

 

 

 

 

 

Mortgage servicing rights at fair value (1)

 

$

3,582,211

 

 

$

3,807,065

 

Servicing advances (1)

 

$

33,777

 

 

$

39,063

 

Credit risk transfer arrangements:

 

 

 

 

 

 

Deposits securing credit risk transfer arrangements

 

$

832,640

 

 

$

910,743

 

Derivative assets

 

$

20,037

 

 

$

29,377

 

 

(1)
Beneficial interests in Freddie Mac MSRs and related servicing advances 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 :

 

 

 

Year ended December 31,

 

 

 

2025

 

 

2024

 

 

2023

 

 

 

(in thousands)

 

Average balance

 

$

832,644

 

 

$

704,279

 

 

$

561,877

 

Weighted average interest rate (1)

 

 

7.37

%

 

 

6.24

%

 

 

5.65

%

Interest expense

 

$

66,071

 

 

$

48,000

 

 

$

34,969

 

(1)
Excludes the effect of amortization of debt issuance costs of $4.7 million, $4.1 million and $3.2 million for the years ended December 31, 2025, 2024 and 2023, respectively.

 

 

 

December 31, 2025

 

 

December 31, 2024

 

 

 

(in thousands)

 

Carrying value:

 

 

 

 

 

 

Unpaid principal balance

 

 

 

 

 

 

Exchangeable senior notes

 

$

711,500

 

 

$

561,500

 

Senior notes

 

 

331,000

 

 

 

53,500

 

 

 

 

1,042,500

 

 

 

615,000

 

Unamortized debt issuance costs

 

 

(14,200

)

 

 

(9,140

)

 

$

1,028,300

 

 

$

605,860

 

 

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,

 

 

 

2025

 

 

2024

 

 

2023

 

 

 

(dollars in thousands)

 

Average balance

 

$

4,456,128

 

 

$

1,612,065

 

 

$

1,354,803

 

Weighted average interest rate (1)

 

 

5.34

%

 

 

3.23

%

 

 

3.73

%

Total interest expense

 

$

226,918

 

 

$

55,763

 

 

$

49,988

 

 

(1)
Excludes the effect of (amortization) accrual of (premiums) debt issuance costs of $(11.0) million, $3.7 million and $(496,000) for the years ended December 31, 2025, 2024 and 2023, respectively.

 

 

 

December 31, 2025

 

 

December 31, 2024

 

 

 

(dollars in thousands)

 

Fair value

 

$

7,789,303

 

 

$

2,040,375

 

Unpaid principal balance

 

$

7,763,364

 

 

$

2,269,742

 

Weighted average interest rate

 

 

6.03

%

 

 

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 ending December 31,

 

 

 

 

 

Total

 

 

2026

 

 

2027

 

 

2028

 

 

2029

 

 

2030

 

 

Thereafter

 

 

(in thousands)

 

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

$

2,261,846

 

 

$

927,943

 

 

$

827,132

 

 

$

506,771

 

 

$

 

 

$

 

 

$

 

Unsecured senior notes

 

1,042,500

 

 

 

345,000

 

 

 

 

 

 

53,500

 

 

 

366,500

 

 

 

277,500

 

 

 

 

Interest-only security payable at fair value (2)

 

37,650

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

37,650

 

Asset-backed financings at fair value (2)

 

7,763,364

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

7,763,364

 

Total

$

11,105,360

 

 

$

1,272,943

 

 

$

827,132

 

 

$

560,271

 

 

$

366,500

 

 

$

277,500

 

 

$

7,801,014

 

 

(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.
Senior Notes [Member]  
Summary of Term Note Issued to Qualified Institutional Buyers

The senior notes are summarized below:

 

Issuance date

 

Unpaid principal balance

 

 

Annual interest
rate spread

 

Maturity date

 

Redemption date (1)

 

(in thousands)

 

 

 

 

 

 

 

June 2025

 

$

105,000

 

 

9.00%

 

June 15, 2030

 

June 15, 2027

February 2025

 

 

172,500

 

 

9.00%

 

February 15, 2030

 

February 15, 2027

September 2023

 

 

53,500

 

 

8.50%

 

September 30, 2028

 

September 30, 2025

 

 

$

331,000

 

 

 

 

 

 

 

 

(1)
Redemptions may be made on or after the date indicated.
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

 

 

$

136,771

 

 

3.10%

 

September 27, 2028

2024 2R

 

April 4, 2024

 

$

247,000

 

 

 

211,543

 

 

3.35%

 

March 29, 2027

2024 1R

 

March 6, 2024

 

$

306,000

 

 

 

260,589

 

 

3.50%

 

March 1, 2027

 

 

 

 

 

 

$

608,903

 

 

 

 

 

 

(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 :

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

$

725,000

 

 

 

 

 

 

 

 

(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-1 Term 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

Initial issuance date

 

Unpaid principal balance

 

 

Annual interest rate

 

Exchange rates (1)

 

Maturity date (2)

 

(in thousands)

 

 

 

 

 

 

 

May 24, 2024 (3)

 

$

366,500

 

 

8.50%

 

63.3332

 

June 1, 2029

March 5, 2021

 

 

345,000

 

 

5.50%

 

46.1063

 

March 15, 2026

 

 

$

711,500

 

 

 

 

 

 

 

 

 

(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, $75 million issued on December 15, 2025 and $75 million issued on December 22, 2025.
v3.25.4
Liability for Losses Under Representations and Warranties (Tables)
12 Months Ended
Dec. 31, 2025
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,

 

 

 

2025

 

 

2024

 

 

2023

 

 

(in thousands)

 

Balance, beginning of year

 

$

6,886

 

 

$

26,143

 

 

$

39,471

 

Provision for losses:

 

 

 

 

 

 

 

 

 

Pursuant to loan sales

 

 

1,070

 

 

 

1,246

 

 

 

2,449

 

Reduction in liability due to change in estimate

 

 

(2,193

)

 

 

(20,269

)

 

 

(15,228

)

Losses incurred

 

 

(479

)

 

 

(234

)

 

 

(549

)

Balance, end of year

 

$

5,284

 

 

$

6,886

 

 

$

26,143

 

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

 

$

214,182,746

 

 

$

222,063,618

 

 

$

227,456,712

 

v3.25.4
Commitments and Contingencies (Tables)
12 Months Ended
Dec. 31, 2025
Commitments and Contingencies Disclosure [Abstract]  
Company's Outstanding Contractual Commitments

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

 

 

 

December 31, 2025

 

 

 

(in thousands)

 

Commitments to purchase loans held for sale from PLS

 

$

1,207,859

 

v3.25.4
Shareholders' Equity (Tables)
12 Months Ended
Dec. 31, 2025
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

 

 

2025

 

 

2024

 

 

2023

 

 

 

(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.
v3.25.4
Net Gains on Investments and Financings (Tables)
12 Months Ended
Dec. 31, 2025
Investments, Debt and Equity Securities [Abstract]  
Summary of Net Gains on Investments and Financings

Net gains on investments and financings are summarized below:

 

 

 

Year ended December 31,

 

 

 

2025

 

 

2024

 

 

2023

 

 

 

(in thousands)

 

Mortgage-backed securities

 

$

148,344

 

 

$

(80,838

)

 

$

74,984

 

Loans held for investment

 

 

112,838

 

 

 

15,516

 

 

 

17,439

 

CRT arrangements

 

 

48,370

 

 

 

113,670

 

 

 

182,555

 

Asset-backed financings

 

 

(96,439

)

 

 

(7,396

)

 

 

(13,678

)

Hedging derivatives

 

 

 

 

 

20,098

 

 

 

(83,201

)

 

$

213,113

 

 

$

61,050

 

 

$

178,099

 

v3.25.4
Net Gains on Loans Held for Sale (Tables)
12 Months Ended
Dec. 31, 2025
Text Block [Abstract]  
Schedule of Net Gains on Investments and Financings

Net gains on loans held for sale are summarized below:

 

 

 

Year ended December 31,

 

 

 

2025

 

 

2024

 

 

2023

 

 

(in thousands)

 

From nonaffiliates:

 

 

 

 

 

 

 

 

 

Cash losses:

 

 

 

 

 

 

 

 

 

Sales of loans

 

$

(43,149

)

 

$

(198,613

)

 

$

(278,128

)

Hedging activities

 

 

(119,478

)

 

 

(45,445

)

 

 

62,081

 

 

 

(162,627

)

 

 

(244,058

)

 

 

(216,047

)

Non-cash gains:

 

 

 

 

 

 

 

 

 

Receipt of MSRs in mortgage loan sale transactions

 

 

190,141

 

 

 

219,001

 

 

 

292,527

 

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

 

 

 

 

 

 

 

 

 

Pursuant to loan sales

 

 

(1,070

)

 

 

(1,246

)

 

 

(2,449

)

Reduction of liability due to change in estimate

 

 

2,193

 

 

 

20,269

 

 

 

15,228

 

 

 

1,123

 

 

 

19,023

 

 

 

12,779

 

Changes in fair value of loans and derivatives

 

 

 

 

 

 

 

 

 

Interest rate lock commitments

 

 

1,904

 

 

 

(7,089

)

 

 

8,010

 

Loans

 

 

(12,881

)

 

 

12,837

 

 

 

(7,129

)

Hedging derivatives

 

 

29,370

 

 

 

65,341

 

 

 

(57,445

)

 

 

18,393

 

 

 

71,089

 

 

 

(56,564

)

 

 

209,657

 

 

 

309,113

 

 

 

248,742

 

Total from nonaffiliates

 

 

47,030

 

 

 

65,055

 

 

 

32,695

 

From PFSI ‒ cash gains

 

 

5,164

 

 

 

8,069

 

 

 

7,162

 

 

$

52,194

 

 

$

73,124

 

 

$

39,857

 

 

v3.25.4
Net Interest Expense (Tables)
12 Months Ended
Dec. 31, 2025
Banking and Thrift, Interest [Abstract]  
Summary of Net Interest Expense

Net interest expense is summarized below:

 

 

 

Year ended December 31,

 

 

 

2025

 

 

2024

 

 

2023

 

 

(in thousands)

 

Interest income:

 

 

 

 

 

 

 

 

 

Cash and short-term investments

 

$

22,008

 

 

$

29,323

 

 

$

25,046

 

Mortgage-backed securities

 

 

247,783

 

 

 

237,758

 

 

 

248,713

 

Loans held for sale

 

 

141,707

 

 

 

83,326

 

 

 

93,988

 

Loans held for investment

 

 

242,721

 

 

 

58,715

 

 

 

56,874

 

Deposits securing CRT arrangements

 

 

44,269

 

 

 

59,304

 

 

 

62,713

 

Placement fees relating to custodial funds

 

 

148,890

 

 

 

163,891

 

 

 

149,484

 

Other

 

 

3,534

 

 

 

2,946

 

 

 

3,089

 

 

 

850,912

 

 

 

635,263

 

 

 

639,907

 

Interest expense:

 

 

 

 

 

 

 

 

 

Assets sold under agreements to repurchase

 

 

352,660

 

 

 

331,800

 

 

 

378,367

 

Mortgage loan participation purchase and sale agreements

 

 

407

 

 

 

1,292

 

 

 

1,365

 

Notes payable secured by credit risk transfer and mortgage servicing assets

 

 

205,517

 

 

 

261,008

 

 

 

257,601

 

Unsecured senior notes

 

 

66,071

 

 

 

48,000

 

 

 

34,969

 

Asset-backed financings

 

 

226,918

 

 

 

55,763

 

 

 

49,988

 

Interest shortfall on repayments of loans serviced for Agency securitizations

 

 

10,303

 

 

 

7,144

 

 

 

5,477

 

Interest on loan impound deposits

 

 

6,946

 

 

 

7,099

 

 

 

6,353

 

Other

 

 

1,572

 

 

 

2,553

 

 

 

1,848

 

 

 

 

870,394

 

 

 

714,659

 

 

 

735,968

 

 

 

$

(19,482

)

 

$

(79,396

)

 

$

(96,061

)

v3.25.4
Share-Based Compensation (Tables)
12 Months Ended
Dec. 31, 2025
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,

 

 

 

2025

 

 

2024

 

 

2023

 

 

 

(in thousands)

 

Grants:

 

 

 

 

 

 

 

 

 

Restricted share units

 

 

199

 

 

 

182

 

 

 

172

 

Performance share units

 

 

168

 

 

 

140

 

 

 

166

 

 

 

367

 

 

 

322

 

 

 

338

 

Grant date fair value:

 

 

 

 

 

 

 

 

 

Restricted share units

 

$

2,815

 

 

$

2,605

 

 

$

2,212

 

Performance share units

 

 

2,365

 

 

 

2,007

 

 

 

2,088

 

 

$

5,180

 

 

$

4,612

 

 

$

4,300

 

Vestings:

 

 

 

 

 

 

 

 

 

Restricted share units

 

 

144

 

 

 

164

 

 

 

140

 

Performance share units (1)

 

 

91

 

 

 

203

 

 

 

48

 

 

 

235

 

 

 

367

 

 

 

188

 

Forfeitures:

 

 

 

 

 

 

 

 

 

Restricted share units

 

 

 

 

 

33

 

 

 

6

 

Performance share units

 

 

 

 

 

41

 

 

 

 

 

 

 

 

 

74

 

 

 

6

 

Compensation expense relating to share-based grants

 

$

3,865

 

 

$

3,479

 

 

$

5,205

 

 

(1)
The actual number of performance-based restricted share units (“RSUs”) that vested during the year ended December 31, 2025 was approximately 89% of the 103,081 originally granted performance-based RSUs.
Summary of Restricted Share Units and Performance Share Units Expected to Vest

 

 

December 31, 2025

 

 

 

Restricted share units

 

 

Performance share units

 

Shares expected to vest:

 

 

Number of restricted shares units (in thousands)

 

 

291

 

 

 

279

 

Grant date average fair value per unit

 

$

14.06

 

 

$

14.05

 

Average remaining vesting (in months)

 

 

9

 

 

 

9

 

v3.25.4
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2025
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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2025

 

 

100

%

 

 

%

 

 

%

 

 

%

 

 

100

%

2024

 

 

100

%

 

 

27

%

 

 

%

 

 

%

 

 

73

%

2023

 

 

19

%

 

 

19

%

 

 

%

 

 

81

%

 

 

%

Preferred Shares (Classes A, B and C)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2025

 

 

100

%

 

 

%

 

 

%

 

 

%

 

 

100

%

2024

 

 

100

%

 

 

27

%

 

 

%

 

 

%

 

 

73

%

2023

 

 

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 did not make any dividend distributions to the Company in 2025. 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
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,

 

 

 

2025

 

 

2024

 

 

2023

 

 

 

(in thousands)

 

Current expense:

 

 

 

 

 

 

 

 

 

Federal

 

$

 

 

$

1,051

 

 

$

6

 

State

 

 

5,204

 

 

 

 

 

 

 

   Total current expense

 

 

5,204

 

 

 

1,051

 

 

 

6

 

Deferred (benefit) expense:

 

 

 

 

 

 

 

 

 

Federal

 

 

(42,828

)

 

 

(16,898

)

 

 

32,391

 

State

 

 

3,570

 

 

 

(2,489

)

 

 

12,344

 

Total deferred (benefit) expense

 

 

(39,258

)

 

 

(19,387

)

 

 

44,735

 

Total (benefit from) provision for income taxes

 

$

(34,054

)

 

$

(18,336

)

 

$

44,741

 

Reconciliation of Company's Provision for Income Taxes

The following table is a reconciliation of the Company’s provision for income taxes at statutory rates to the provision for income taxes at the Company’s effective income tax rate:

 

 

 

Year ended December 31,

 

 

 

2025

 

 

2024

 

 

2023

 

 

 

Amount

 

 

Rate

 

 

Amount

 

 

Rate

 

 

Amount

 

 

Rate

 

 

 

(dollars in thousands)

 

Federal income tax expense at statutory tax rate

 

$

19,702

 

 

 

21.0

%

 

$

29,956

 

 

 

21.0

%

 

$

51,323

 

 

 

21.0

%

State and local income taxes, net of federal
   income tax effect (1)

 

 

7,163

 

 

 

7.6

%

 

 

(6,169

)

 

 

(4.3

)%

 

 

9,341

 

 

 

3.8

%

Nontaxable or Nondeductible Items:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Effect of non-taxable REIT (income) loss

 

 

(61,098

)

 

 

(65.1

)%

 

 

(42,110

)

 

 

(29.5

)%

 

 

(18,778

)

 

 

(7.7

)%

Convertible debt adjustment

 

 

411

 

 

 

0.4

%

 

 

186

 

 

 

0.1

%

 

 

2,444

 

 

 

1.0

%

Other

 

 

(232

)

 

 

(0.2

)%

 

 

(199

)

 

 

(0.2

)%

 

 

411

 

 

 

0.2

%

Effective income tax rate

 

$

(34,054

)

 

 

(36.3

)%

 

$

(18,336

)

 

 

(12.9

)%

 

$

44,741

 

 

 

18.3

%

 

(1)
The States that contribute to the majority (greater than 50%) of the tax effect in this category include California, Florida, New York and New Jersey for 2025 and 2023 and California, Florida, Maryland, New York, New Jersey and Pennsylvania for 2024.
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,

 

 

2025

 

 

2024

 

 

2023

 

 

(in thousands)

 

Net operating loss carryforward

$

(33,044

)

 

$

16,801

 

 

$

3,199

 

Mortgage servicing rights

 

(12,832

)

 

 

(42,893

)

 

 

22,924

 

Excess interest expense disallowance

 

9,010

 

 

 

2,675

 

 

 

15,114

 

Liability for losses under representations and warranties

 

331

 

 

 

4,760

 

 

 

3,108

 

Real estate valuation loss

 

52

 

 

 

(31

)

 

 

107

 

Other

 

(2,775

)

 

 

(699

)

 

 

283

 

Total (benefit from) provision for deferred income taxes

$

(39,258

)

 

$

(19,387

)

 

$

44,735

 

Summary of Income Taxes Paid

Income taxes paid are summarized below:

 

 

 

Year ended December 31,

 

 

 

2025

 

 

2024

 

 

2023

 

 

 

(in thousands)

 

US Federal

 

$

 

 

$

3,900

 

 

$

3,900

 

US State and Local:

 

 

 

 

 

 

 

 

 

Maryland

 

 

715

 

 

 

837

 

 

 

1,352

 

California

 

 

660

 

 

 

1,298

 

 

 

50

 

Alabama

 

 

335

 

 

 

243

 

 

 

267

 

New York

 

 

224

 

 

 

548

 

 

 

266

 

Oregon

 

 

171

 

 

 

172

 

 

 

96

 

Other

 

 

226

 

 

 

808

 

 

 

586

 

 

 

 

2,331

 

 

 

3,906

 

 

 

2,617

 

Total income taxes paid

 

$

2,331

 

 

$

7,806

 

 

$

6,517

 

Components of Income Taxes Payable

The components of income taxes payable are as follows:

 

 

December 31, 2025

 

 

December 31, 2024

 

(in thousands)

 

Taxes currently receivable

$

(12,211

)

 

$

(15,085

)

Deferred income taxes payable

 

139,687

 

 

 

178,946

 

Income taxes payable

$

127,476

 

 

$

163,861

 

 

 

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, 2025

 

 

December 31, 2024

 

(in thousands)

 

Deferred income tax assets:

 

 

 

 

 

Net operating loss carryforward

$

134,897

 

 

$

101,853

 

Excess interest expense disallowance

 

30,819

 

 

 

39,829

 

Liability for losses under representations and warranties

 

1,353

 

 

 

1,684

 

REO valuation loss

 

50

 

 

 

102

 

Other

 

2,385

 

 

 

598

 

Gross deferred tax assets

 

169,504

 

 

 

144,066

 

Valuation allowance

 

 

 

 

 

Deferred tax assets after valuation allowance

 

169,504

 

 

 

144,066

 

Deferred income tax liabilities:

 

 

 

 

 

Mortgage servicing rights

 

309,191

 

 

 

322,023

 

Other

 

 

 

 

989

 

Gross deferred tax liabilities

 

309,191

 

 

 

323,012

 

Net deferred income tax liability

$

139,687

 

 

$

178,946

 

v3.25.4
Earnings Per Common Share (Tables)
12 Months Ended
Dec. 31, 2025
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,

 

 

 

2025

 

 

2024

 

 

2023

 

 

 

(in thousands except per share amounts)

 

Net income

 

$

127,872

 

 

$

160,984

 

 

$

199,654

 

Dividends on preferred shares

 

 

(41,819

)

 

 

(41,819

)

 

 

(41,819

)

Effect of participating securities—share-based compensation awards

 

 

(148

)

 

 

(417

)

 

 

(454

)

Net income attributable to common shareholders

 

$

85,905

 

 

$

118,748

 

 

$

157,381

 

Interest on exchangeable senior notes, net of income taxes

 

 

 

 

 

 

 

 

25,055

 

Loss attributable to participating securities

 

 

 

 

 

 

 

 

(44

)

Diluted net income attributable to common shareholders

 

$

85,905

 

 

$

118,748

 

 

$

182,392

 

Weighted average basic and diluted shares outstanding

 

 

86,988

 

 

 

86,815

 

 

 

87,372

 

Dilutive securities—Shares issuable pursuant to exchange of the
   exchangeable senior notes

 

 

 

 

 

 

 

 

24,328

 

Diluted weighted average shares outstanding

 

 

86,988

 

 

 

86,815

 

 

 

111,700

 

Basic earnings per share

 

$

0.99

 

 

$

1.37

 

 

$

1.80

 

Diluted earnings per share

 

$

0.99

 

 

$

1.37

 

 

$

1.63

 

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,

 

 

 

2025

 

 

2024

 

 

2023

 

 

 

(in thousands)

 

Shares issuable under share-based compensation plan

 

 

349

 

 

 

204

 

 

 

180

 

v3.25.4
Segments (Tables)
12 Months Ended
Dec. 31, 2025
Segment Reporting [Abstract]  
Financial Highlights by Segment

Financial highlights by segment are summarized below:

 

Year ended December 31, 2025

 

Credit sensitive strategies

 

 

Interest rate sensitive strategies

 

 

Correspondent production

 

 

Reportable segment total

 

 

Corporate

 

 

Consolidated total

 

 

 

(in thousands)

 

Net investment income (1):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net gains on investments and financings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage-backed securities

 

$

(1,321

)

 

$

149,665

 

 

$

 

 

$

148,344

 

 

$

 

 

$

148,344

 

Loans held for investment

 

 

15,124

 

 

 

1,275

 

 

 

 

 

 

16,399

 

 

 

 

 

 

16,399

 

Credit risk transfer arrangements

 

 

48,370

 

 

 

 

 

 

 

 

 

48,370

 

 

 

 

 

 

48,370

 

 

 

 

62,173

 

 

 

150,940

 

 

 

 

 

 

213,113

 

 

 

 

 

 

213,113

 

Net gains on loans held for sale

 

 

 

 

 

 

 

 

52,194

 

 

 

52,194

 

 

 

 

 

 

52,194

 

Net loan servicing fees

 

 

 

 

 

48,932

 

 

 

 

 

 

48,932

 

 

 

 

 

 

48,932

 

Net interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

78,978

 

 

 

620,230

 

 

 

141,584

 

 

 

840,792

 

 

 

10,120

 

 

 

850,912

 

Interest expense

 

 

75,444

 

 

 

670,458

 

 

 

119,144

 

 

 

865,046

 

 

 

5,348

 

 

 

870,394

 

 

 

3,534

 

 

 

(50,228

)

 

 

22,440

 

 

 

(24,254

)

 

 

4,772

 

 

 

(19,482

)

Other

 

 

(64

)

 

 

 

 

 

12,768

 

 

 

12,704

 

 

 

 

 

 

12,704

 

 

 

65,643

 

 

 

149,644

 

 

 

87,402

 

 

 

302,689

 

 

 

4,772

 

 

 

307,461

 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earned by PennyMac Financial Services, Inc.:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loan servicing fees

 

 

6

 

 

 

84,426

 

 

 

 

 

 

84,432

 

 

 

 

 

 

84,432

 

Management fees

 

 

 

 

 

 

 

 

 

 

 

 

 

 

27,649

 

 

 

27,649

 

Loan fulfillment fees

 

 

 

 

 

 

 

 

23,804

 

 

 

23,804

 

 

 

 

 

 

23,804

 

Professional services

 

 

 

 

 

 

 

 

28,508

 

 

 

28,508

 

 

 

9,266

 

 

 

37,774

 

Compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

11,886

 

 

 

11,886

 

Loan collection and liquidation

 

 

89

 

 

 

8,196

 

 

 

 

 

 

8,285

 

 

 

 

 

 

8,285

 

Safekeeping

 

 

 

 

 

4,308

 

 

 

322

 

 

 

4,630

 

 

 

 

 

 

4,630

 

Loan origination

 

 

 

 

 

 

 

 

2,278

 

 

 

2,278

 

 

 

 

 

 

2,278

 

Other (2)

 

 

345

 

 

 

2,261

 

 

 

411

 

 

 

3,017

 

 

 

9,888

 

 

 

12,905

 

 

 

440

 

 

 

99,191

 

 

 

55,323

 

 

 

154,954

 

 

 

58,689

 

 

 

213,643

 

Pretax income (loss)

 

$

65,203

 

 

$

50,453

 

 

$

32,079

 

 

$

147,735

 

 

$

(53,917

)

 

$

93,818

 

Total assets at end of year

 

$

1,604,694

 

 

$

16,512,045

 

 

$

2,767,400

 

 

$

20,884,139

 

 

$

462,743

 

 

$

21,346,882

 

 

(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.

 

Year ended December 31, 2024

 

Credit sensitive strategies

 

 

Interest rate sensitive strategies

 

 

Correspondent production

 

 

Reportable segment total

 

 

Corporate

 

 

Consolidated total

 

 

 

(in thousands)

 

Net investment income (1):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net gains on investments and financings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage-backed securities

 

$

6,964

 

 

$

(67,704

)

 

$

 

 

$

(60,740

)

 

$

 

 

$

(60,740

)

Loans held for investment

 

 

3,726

 

 

 

4,394

 

 

 

 

 

 

8,120

 

 

 

 

 

 

8,120

 

Credit risk transfer arrangements

 

 

113,670

 

 

 

 

 

 

 

 

 

113,670

 

 

 

 

 

 

113,670

 

 

 

 

124,360

 

 

 

(63,310

)

 

 

 

 

 

61,050

 

 

 

 

 

 

61,050

 

Net gains on loans held for sale

 

 

 

 

 

 

 

 

73,124

 

 

 

73,124

 

 

 

 

 

 

73,124

 

Net loan servicing fees

 

 

 

 

 

264,540

 

 

 

 

 

 

264,540

 

 

 

 

 

 

264,540

 

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

 

Compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5,608

 

 

 

5,608

 

Loan collection and liquidation

 

 

376

 

 

 

6,458

 

 

 

 

 

 

6,834

 

 

 

 

 

 

6,834

 

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 (loss)

 

$

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.

Year ended December 31, 2023

 

Credit sensitive strategies

 

 

Interest rate sensitive strategies

 

 

Correspondent production

 

 

Reportable segment total

 

 

Corporate

 

 

Consolidated total

 

 

 

(in thousands)

 

Net investment income (1):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net gains on investments and financings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage-backed securities

 

$

35,625

 

 

$

(43,842

)

 

$

 

 

$

(8,217

)

 

$

 

 

$

(8,217

)

Loans held for investment

 

 

2,597

 

 

 

1,164

 

 

 

 

 

 

3,761

 

 

 

 

 

 

3,761

 

Credit risk transfer arrangements

 

 

182,555

 

 

 

 

 

 

 

 

 

182,555

 

 

 

 

 

 

182,555

 

 

 

 

220,777

 

 

 

(42,678

)

 

 

 

 

 

178,099

 

 

 

 

 

 

178,099

 

Net gains on loans held for sale

 

 

 

 

 

 

 

 

39,857

 

 

 

39,857

 

 

 

 

 

 

39,857

 

Net loan servicing fees

 

 

 

 

 

288,608

 

 

 

 

 

 

288,608

 

 

 

 

 

 

288,608

 

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

 

Compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

7,106

 

 

 

7,106

 

Loan collection and liquidation

 

 

1,743

 

 

 

2,819

 

 

 

 

 

 

4,562

 

 

 

 

 

 

4,562

 

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 (loss)

 

$

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.
v3.25.4
Regulatory Capital and Liquidity Requirements (Tables)
12 Months Ended
Dec. 31, 2025
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)

 

 

 

Actual

 

 

Required

 

 

Actual

 

 

Required

 

 

Actual

 

 

Required

 

 

 

(dollars in thousands)

 

December 31, 2025

 

$

682,481

 

 

$

569,435

 

 

 

9

%

 

 

6

%

 

$

514,626

 

 

$

211,818

 

December 31, 2024

 

$

876,324

 

 

$

579,383

 

 

 

12

%

 

 

6

%

 

$

564,311

 

 

$

215,801

 

 

(1)
Calculated in accordance with the Agencies’ requirements.
v3.25.4
Parent Company Information (Tables)
12 Months Ended
Dec. 31, 2025
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, 2025

 

Company consolidated

 

Debt covenant
requirement

 

 

Actual
balance
 (1)

 

 

 

(in thousands)

 

PennyMac Mortgage Investment Trust

 

$

1,250,000

 

 

$

1,885,799

 

PennyMac Operating Partnership, L.P.

 

$

1,250,000

 

 

$

2,248,567

 

PennyMac Holdings, LLC

 

$

250,000

 

 

$

1,250,979

 

PennyMac Corp.

 

$

300,000

 

 

$

759,908

 

 

(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,

 

 

 

2025

 

 

2024

 

 

 

(in thousands)

 

Assets

 

 

 

 

 

 

Cash

 

$

808

 

 

$

845

 

Investments in subsidiaries

 

 

2,250,348

 

 

 

2,265,779

 

Due from subsidiaries

 

 

846

 

 

 

608

 

Other assets

 

 

879

 

 

 

844

 

Total assets

 

$

2,252,881

 

 

$

2,268,076

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

Capital notes due to subsidiaries

 

$

1,021

 

 

$

228,280

 

Unsecured senior notes

 

 

320,492

 

 

 

51,538

 

Dividends payable

 

 

35,394

 

 

 

34,838

 

Accounts payable and accrued liabilities

 

 

2,336

 

 

 

 

Due to affiliates

 

 

508

 

 

 

503

 

Due to subsidiaries

 

 

105

 

 

 

3,582

 

Total liabilities

 

 

359,856

 

 

 

318,741

 

Shareholders' Equity

 

 

1,893,025

 

 

 

1,949,335

 

Total liabilities and shareholders' equity

 

$

2,252,881

 

 

$

2,268,076

 

 

PENNYMAC MORTGAGE INVESTMENT TRUST

CONDENSED STATEMENTS OF INCOME

 

 

 

Year ended December 31,

 

 

 

2025

 

 

2024

 

 

2023

 

 

 

(in thousands)

 

Income

 

 

 

 

 

 

 

 

 

Dividends from subsidiaries

 

$

170,525

 

 

$

180,695

 

 

$

182,043

 

Interest income

 

 

 

 

 

 

 

 

 

from nonaffiliates

 

 

107

 

 

 

64

 

 

 

 

from affiliate

 

 

463

 

 

 

99

 

 

 

54

 

Total income

 

 

171,095

 

 

 

180,858

 

 

 

182,097

 

Expenses

 

 

 

 

 

 

 

 

 

Interest expense:

 

 

 

 

 

 

 

 

 

To nonaffiliates

 

 

25,262

 

 

 

5,018

 

 

 

1,355

 

To affiliates

 

 

4,740

 

 

 

20,908

 

 

 

22,829

 

Other

 

 

 

 

 

2

 

 

 

13

 

Total expenses

 

 

30,002

 

 

 

25,928

 

 

 

24,197

 

Income before provision for income taxes and distribution
   in excess of earnings

 

 

141,093

 

 

 

154,930

 

 

 

157,900

 

Provision for income taxes

 

 

 

 

 

 

 

 

6

 

Income before equity in undistributed earnings of subsidiaries

 

 

141,093

 

 

 

154,930

 

 

 

157,894

 

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

 

 

(18,362

)

 

 

5,266

 

 

 

32,591

 

Net income

 

$

122,731

 

 

$

160,196

 

 

$

190,485

 

 

PENNYMAC MORTGAGE INVESTMENT TRUST

CONDENSED STATEMENTS OF CASH FLOWS

 

 

 

Year ended December 31,

 

 

 

2025

 

 

2024

 

 

2023

 

 

 

(in thousands)

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

 

Net income

 

$

122,731

 

 

$

160,196

 

 

$

190,485

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

 

 

 

 

 Distributions in excess of earnings of subsidiaries (equity in undistributed
   earnings of subsidiaries)

 

 

18,362

 

 

 

(5,265

)

 

 

(32,591

)

Amortization of debt issuance costs

 

 

1,707

 

 

 

471

 

 

 

110

 

Decrease in due from subsidiaries

 

 

696

 

 

 

357

 

 

 

638

 

(Increase) decrease in other assets

 

 

(35

)

 

 

2

 

 

 

58

 

Decrease (increase) in accounts payable and accrued liabilities

 

 

2,336

 

 

 

(19

)

 

 

(323

)

Decrease (increase) in due to affiliate

 

 

5

 

 

 

558

 

 

 

(335

)

(Increase) decrease in due to subsidiaries

 

 

(3,514

)

 

 

1,805

 

 

 

191

 

Net cash provided by operating activities

 

 

142,288

 

 

 

158,105

 

 

 

158,233

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

 

Net decrease (increase) in short-term investments

 

 

 

 

 

603

 

 

 

(96

)

Net cash provided by (used in) investing activities

 

 

 

 

 

603

 

 

 

(96

)

Cash flows from financing activities:

 

 

 

 

 

 

 

 

 

Issuance of unsecured senior notes

 

 

277,500

 

 

 

 

 

 

53,500

 

Payment of debt issuance costs

 

 

(10,253

)

 

 

(48

)

 

 

(2,495

)

(Increase) decrease in intercompany unsecured note payable

 

 

(227,259

)

 

 

25,150

 

 

 

2,350

 

Payment of withholding taxes related to share-based compensation

 

 

(1,127

)

 

 

(1,846

)

 

 

(567

)

Payment of dividends to preferred shareholders

 

 

(41,819

)

 

 

(41,819

)

 

 

(41,818

)

Payment of dividends to common shareholders

 

 

(139,367

)

 

 

(139,300

)

 

 

(140,617

)

Repurchase of Common Shares

 

 

 

 

 

 

 

 

(28,490

)

Net cash used in financing activities

 

 

(142,325

)

 

 

(157,863

)

 

 

(158,137

)

Net change in cash

 

 

(37

)

 

 

845

 

 

 

 

Cash at beginning of year

 

 

845

 

 

 

 

 

 

 

Cash at end of year

 

$

808

 

 

$

845

 

 

$

 

 

 

 

 

 

 

 

 

 

Non-cash investing activities:

 

 

 

 

 

 

 

 

 

Investment in subsidiary pursuant to share based compensation plan

 

$

3,864

 

 

$

3,476

 

 

$

5,204

 

Non-cash financing activities:

 

 

 

 

 

 

 

 

 

Contribution of equity to subsidiary pursuant to share based compensation plan

 

$

3,864

 

 

$

3,476

 

 

$

5,204

 

Dividends payable

 

$

35,431

 

 

$

34,838

 

 

$

34,750

 

v3.25.4
Organization - Additional Information (Detail)
12 Months Ended
Dec. 31, 2025
Segment
Accounting Policies [Abstract]  
Number of operating segments 3
Number of reportable segments 3
Percentage of taxable income for distributions 90.00%
v3.25.4
Significant Accounting Policies - Additional Information (Detail)
12 Months Ended
Dec. 31, 2025
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%
v3.25.4
Transactions with Related Parties - Servicing Agreement - Additional Information (Detail) - PennyMac Loan Services, LLC [Member] - USD ($)
12 Months Ended
Oct. 01, 2025
Dec. 31, 2025
Servicing Agreement [Member]    
Mortgage Loans On Real Estate [Line Items]    
Base servicing fees for REO per month   $ 75
Servicing Agreement [Member] | Minimum [Member]    
Mortgage Loans On Real Estate [Line Items]    
Additional servicing fees per loan per month   18,000
Servicing Agreement [Member] | Maximum [Member]    
Mortgage Loans On Real Estate [Line Items]    
Additional servicing fees per loan per month   80,000
Servicing Agreement [Member] | Fixed-Rate Mortgage Loans [Member]    
Mortgage Loans On Real Estate [Line Items]    
Base servicing fees per month $ 7 7.5
Servicing Agreement [Member] | Adjustable rate mortgage loans [Member]    
Mortgage Loans On Real Estate [Line Items]    
Base servicing fees per month $ 8 8.5
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
v3.25.4
Transactions with Related Parties - Prime Servicing - Additional Information (Detail) - PennyMac Loan Services, LLC [Member]
12 Months Ended
Dec. 31, 2025
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
v3.25.4
Transactions with Related Parties - Special Servicing - Additional Information (Detail) - PennyMac Loan Services, LLC [Member]
12 Months Ended
Dec. 31, 2025
USD ($)
Mortgage Loans On Real Estate [Line Items]  
Servicing agreement expiration date Dec. 31, 2029
Service agreement maturity renewal term 18 months
Distressed loans [Member]  
Mortgage Loans On Real Estate [Line Items]  
Base servicing fees for REO per month $ 75,000
Supplemental servicing fee 25,000
Distressed loans [Member] | Minimum [Member]  
Mortgage Loans On Real Estate [Line Items]  
Base servicing fees per month 30,000
Distressed loans [Member] | Maximum [Member]  
Mortgage Loans On Real Estate [Line Items]  
Base servicing fees per month $ 95,000
v3.25.4
Transactions with Related Parties - MSR Recapture Agreement - Additional Information (Detail) - 2020 MSR Recapture Agreement [Member]
12 Months Ended
Dec. 31, 2025
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 30.00%
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
v3.25.4
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, 2025
Dec. 31, 2024
Dec. 31, 2023
Related Party Transaction [Line Items]      
Loan servicing fees $ 84,432 $ 83,252 $ 81,347
Average MSR portfolio unpaid principal balance 221,436,947 228,705,758 231,203,032
Mortgage servicing rights recapture fees 10,117 2,193 1,784
Unpaid principal balance of loans recaptured 932,444 353,710 315,412
Loans held for sale [Member]      
Related Party Transaction [Line Items]      
Loan servicing fees 313 525 680
Average investment in loans acquired for sale at fair value 2,206,958 1,249,423 1,439,373
Loans held for investment [Member]      
Related Party Transaction [Line Items]      
Loan servicing fees 1,311 591 208
Loans at fair value 4,724,217 1,468,687 1,451,632
Mortgage servicing rights [Member]      
Related Party Transaction [Line Items]      
Loan servicing fees $ 82,808 $ 82,136 $ 80,459
v3.25.4
Transactions with Related Parties - Mortgage Banking Servicing Agreement - Additional Information (Detail) - USD ($)
1 Months Ended 12 Months Ended
Dec. 31, 2024
Dec. 31, 2025
Dec. 31, 2024
2020 MBS Agreement [Member]      
Mortgage Loans On Real Estate [Line Items]      
Servicing agreement expiration date   Dec. 31, 2029  
Service agreement maturity renewal term   18 months  
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 $ 500  
2020 MBS Agreement [Member] | Maximum [Member]      
Mortgage Loans On Real Estate [Line Items]      
Mortgage loans commitments multiplier 585 585  
Mortgage adjusted loan commitments 16,500 16,500  
Number of mortgage loans purchased multiplier 315 315  
Number of mortgage loans purchased 16,500 $ 16,500  
Interest income and sourcing fee   2.00%  
2020 MBS Agreement [Member] | Minimum [Member]      
Mortgage Loans On Real Estate [Line Items]      
Mortgage loans commitments multiplier 355 $ 355  
Mortgage adjusted loan commitments 16,500 16,500  
Number of mortgage loans purchased multiplier 195 195  
Number of mortgage loans purchased $ 16,500 $ 16,500  
Interest income and sourcing fee   1.00%  
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%
v3.25.4
Transactions with Related Parties - Summary of Correspondent Production Activity and Other Loan Purchases (Detail) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Related Party Transaction [Line Items]      
Unpaid principal balance of loans sold to PLS: $ 52,084,230 $ 80,694,536 $ 71,618,697
Loans held for sale at fair value 2,699,398 2,116,318  
PennyMac Loan Services, LLC [Member]      
Related Party Transaction [Line Items]      
Loan fulfillment fees earned by PLS 23,804 26,291 27,826
Unpaid principal balance of loans fulfilled by PLS 12,893,224 13,446,484 14,898,301
Sourcing fees received from PLS included in Net gains on loans held for sale 5,164 8,069 7,162
Purchases of loans acquired for sale from PLS 11,216,713 662,952 0
Tax service fees paid to PLS 1,537 2,523 3,216
Loans held for sale at fair value   602,108  
PennyMac Loan Services, LLC [Member] | Government Guaranteed Or Insured [Member]      
Related Party Transaction [Line Items]      
Unpaid principal balance of loans sold to PLS: 27,094,014 40,838,480 40,476,782
PennyMac Loan Services, LLC [Member] | Conventional Conforming [Member]      
Related Party Transaction [Line Items]      
Unpaid principal balance of loans sold to PLS: $ 24,990,216 $ 39,856,056 $ 31,141,915
v3.25.4
Transactions with Related Parties - Management Agreement - Additional Information (Detail) - USD ($)
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
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]  
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 expiration date Dec. 31, 2029  
Management agreement maturity renewal term 18 months  
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]    
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  
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%  
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%  
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  
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  
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%  
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%  
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%  
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  
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  
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 year exceeds (i) an 8% return on the average “common shareholders’ equity” plus the “high watermark”, up to (ii) a 12% return on “common shareholders’ equity” during the fiscal year; plus •15% of the amount by which “net income” for the year exceeds (i) a 12% return on the average “common shareholders’ equity” plus the “high watermark”, up to (ii) a 16% return on “common shareholders’ equity” during the fiscal year; plus •20% of the amount by which “net income” for the year exceeds a 16% return on the average “common shareholders’ equity” during the fiscal year plus the “high watermark.”  
PMT agreed to reimburse PCM for a payment $ 17,122,000 $ 30,206,000
v3.25.4
Transactions with Related Parties - Summary of Management Fee Expense (Detail) - PNMAC Capital Management LLC [Member] - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Related Party Transaction [Line Items]      
Total management fee incurred during the period $ 27,649 $ 28,623 $ 28,762
Average shareholders' equity amounts used to calculate base management fee expense 1,843,549 1,908,287 1,917,642
Base management fee [Member]      
Related Party Transaction [Line Items]      
Total management fee incurred during the period 27,649 28,623 28,762
Performance incentive fee [Member]      
Related Party Transaction [Line Items]      
Total management fee incurred during the period $ 0 $ 0 $ 0
v3.25.4
Transactions with Related Parties - Summary of Expenses (Detail) - PNMAC Capital Management LLC [Member] - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Related Party Transaction [Line Items]      
Expenses incurred on the Company’s behalf, net $ 21,177 $ 20,871 $ 21,468
Compensation 6,515 660 660
Common overhead 3,926 7,909 7,492
Total expenses incurred in transaction with affiliates 31,618 29,440 29,620
Payments and settlements during the period [1] $ 109,610 $ 118,167 $ 94,339
[1] .
v3.25.4
Transactions with Related Parties - Note Payable to PLS - Additional Information (Detail) - shares
Dec. 31, 2025
Dec. 31, 2024
PennyMac Financial Services, Inc. [Member]    
Related Party Transaction [Line Items]    
Number of common shares held by affiliate 75,000 75,000
v3.25.4
Transactions with Related Parties - Summary of Amounts Receivable From and Payable to PFSI (Detail) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Related Party Transaction [Line Items]    
Allocated expenses and expenses and costs $ 3,161 $ 3,508
PennyMac Financial Services, Inc. [Member]    
Related Party Transaction [Line Items]    
Due from PFSI-Miscellaneous receivables 19,100 16,015
Management fees 6,856 7,149
Loan servicing fees 6,669 6,822
Correspondent production fees 436 11,122
Fulfillment fees 0 1,605
Total expense due to affiliate $ 17,122 $ 30,206
v3.25.4
Transactions with Related Parties - Summary of Transfer Cash to Fund Loan Servicing Advances (Detail) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Related Party Transaction [Line Items]    
Servicing advances $ 96,830 $ 105,037
Other assets-Real estate acquired in settlement of loans 1,421 2,464
PennyMac Loan Services, LLC [Member]    
Related Party Transaction [Line Items]    
Servicing advances 96,830 105,037
Other assets-Real estate acquired in settlement of loans 655 1,265
Servicing advances and real estate acquired $ 97,485 $ 106,302
v3.25.4
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, 2025
Dec. 31, 2024
Dec. 31, 2023
Cash flows:      
Proceeds from sales $ 10,292,463 $ 12,414,391 $ 15,936,124
Loan servicing fees received $ 608,025 $ 644,642 $ 659,438
v3.25.4
Loan Sales - Summary of Collection Status Information for Loan Transfers Accounted for Sales (Detail) - Variable Interest Entity, Not Primary Beneficiary [Member] - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Mortgage Loans On Real Estate [Line Items]    
Unpaid principal balance of loans outstanding $ 212,581,934 $ 222,761,227
Collection status (Unpaid principal balance)    
30-89 days delinquent 2,583,158 2,618,767
90 or more days delinquent:    
Not in foreclosure 1,025,111 1,078,362
In foreclosure 118,503 105,810
Bankruptcy 351,890 281,821
Custodial funds managed by the Company [1] $ 2,758,142 $ 2,385,602
[1] Custodial funds represent 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 income.
v3.25.4
Variable Interest Entities - Additional Information (Detail) - Credit Risk Transfer Agreements [Member]
12 Months Ended
Dec. 31, 2025
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%
v3.25.4
Variable Interest Entities - Summary of Credit Risk Transfer Agreements (Detail) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2031
Dec. 31, 2030
Dec. 31, 2029
Dec. 31, 2028
Dec. 31, 2027
Dec. 31, 2026
Credit risk transfer strips                  
Net investment income $ 307,461 $ 334,194 $ 429,020            
Carrying value of credit risk transfer arrangements:                  
Interest-only security payable at fair value 37,650 34,222   $ 37,650 $ 0 $ 0 $ 0 $ 0 $ 0
Variable Interest Entities [Member]                  
Carrying value of credit risk transfer arrangements:                  
Interest-only security payable at fair value 37,650 34,222              
Variable Interest Entities [Member] | Credit Risk Transfer Agreements [Member]                  
Credit risk transfer derivatives                  
Realized 10,764 13,491 18,524            
Valuation changes 3,572 13,529 38,020            
Gains recognized on gross derivative related to credit risk transactions 14,336 27,020 56,544            
Credit risk transfer strips                  
Realized 39,189 45,573 46,252            
Valuation changes (1,727) 42,632 90,501            
Credit risk transfer strips 37,462 88,205 136,753            
Interest-only security payable at fair value - valuation changes (3,428) (1,555) (10,742)            
Gains recognized on gross derivative related to credit risk transactions 48,370 113,670 182,555            
Interest income -- Deposits securing credit risk transfer arrangements 44,269 59,304 62,713            
Net investment income 92,639 172,974 245,268            
Net payments made to settle losses on credit risk transfer arrangements 4,466 1,633 $ 3,523            
Carrying value of credit risk transfer arrangements:                  
Derivative assets - credit risk transfer derivatives 32,659 29,377              
Derivative and credit risk transfer liabilities - credit risk transfer strips (5,999) (4,060)              
Deposits securing credit risk transfer arrangements 1,009,334 1,110,708              
Interest-only security payable at fair value (37,650) (34,222)              
Derivative and credit risk transfer strip assets 998,344 1,101,803              
Derivative assets 32,659 29,377              
Derivative and credit risk transfer strip assets pledged to secure [1] 1,009,334 1,110,708              
Unpaid principal balance of loans underlying credit risk transfer arrangements 19,517,530 21,249,304              
Variable Interest Entities [Member] | Credit Risk Transfer Agreements [Member] | Purchase Commitment [Member]                  
Collection status (unpaid principal balance):                  
Current 18,908,261 20,628,148              
30-89 days delinquent 413,295 414,605              
90-179 days delinquent 110,486 131,191              
180 or more days delinquent 57,798 51,343              
Foreclosure 27,690 24,017              
Bankruptcy $ 68,426 $ 63,697              
[1] Deposits securing credit risk transfer strip liabilities also secure $6.0 million and $4.1 million in CRT strip liabilities at December 31, 2025 and December 31, 2024, respectively.
v3.25.4
Variable Interest Entities - Summary of Credit Risk Transfer Agreements (Parenthetical) (Detail) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Transfer Of Financial Assets Accounted For As Sales [Line Items]    
Deposits securing CRT strips and derivatives liabilities $ 6.0 $ 4.1
v3.25.4
Variable Interest Entities - Summary of Investment in Senior and Subordinate MBS (Detail) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Variable Interest Entity [Line Items]      
Loans held for investment $ 112,838 $ 15,516 $ 17,439
Asset-backed financings of variable interest entities at fair value (96,439) (7,396) (13,678)
Interest income 850,912 635,263 639,907
Net investment income 307,461 334,194 429,020
Loans held for investment at fair value 8,532,644 2,193,575  
Asset-backed financing of variable interest entities at fair value 7,789,303 2,040,375  
Variable Interest Entities [Member]      
Variable Interest Entity [Line Items]      
Loans held for investment at fair value 8,530,939 2,191,709  
Asset-backed financing of variable interest entities at fair value 7,789,303 2,040,375  
Variable Interest Entities [Member] | Subordinate Mortgage Backed Securities [Member]      
Variable Interest Entity [Line Items]      
Loans held for investment 112,840 15,637 17,876
Asset-backed financings of variable interest entities at fair value (96,439) (7,396) (13,678)
Interest income 242,696 58,720 56,833
Interest expense 226,918 55,763 49,988
Net investment income 32,179 11,198 $ 11,043
Loans held for investment at fair value 8,530,939 2,191,709  
Asset-backed financing of variable interest entities at fair value 7,789,303 2,040,375  
Retained mortgage-backed securities at fair value pledged to secure Assets sold under agreements to repurchase $ 648,159 $ 130,839  
v3.25.4
Fair Value - Summary of Financial Statement Items Measured at Fair Value on Recurring Basis (Detail) - USD ($)
$ in Thousands
Dec. 31, 2031
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
Assets:                    
Short-term investments             $ 190,518 $ 103,198    
Mortgage-backed securities             4,452,859 4,063,706    
Loans held for sale             2,699,398 2,116,318    
Mortgage servicing rights             3,644,702 3,867,394 $ 3,919,107 $ 4,012,737
Liabilities:                    
Interest-only security payable $ 37,650 $ 0 $ 0 $ 0 $ 0 $ 0 37,650 34,222    
Derivative liabilities and credit risk transfer strips:                    
Total derivative and credit risk transfer strip liabilities             6,932 7,351    
Nonaffiliates [Member]                    
Assets:                    
Derivative assets             44,551 96,251    
Derivative assets, Netting             5,145 (39,411)    
Total derivative assets after netting             49,696 56,840    
Derivative liabilities and credit risk transfer strips:                    
Derivative liabilities             17,498 11,207    
Derivative liabilities, Netting             (16,565) (7,916)    
Total derivative liabilities after netting             933 3,291    
Total derivative and credit risk transfer strip liabilities             6,932 7,351    
Nonaffiliates [Member] | Credit Risk Transfer / CRT Derivatives [Member]                    
Assets:                    
Derivative assets [1]             32,659 29,377    
Derivative liabilities and credit risk transfer strips:                    
Derivative liabilities [1]             0 0    
Nonaffiliates [Member] | Interest Rate Lock Commitments [Member]                    
Assets:                    
Derivative assets [1]             0 3,562    
Derivative liabilities and credit risk transfer strips:                    
Derivative liabilities [1]             0 3,118    
Nonaffiliates [Member] | Forward Purchase Contracts [Member]                    
Assets:                    
Derivative assets [1]             4,113 614    
Derivative liabilities and credit risk transfer strips:                    
Derivative liabilities [1]             158 6,336    
Nonaffiliates [Member] | Forward Sales Contracts [Member]                    
Assets:                    
Derivative assets [1]             2,381 54,056    
Derivative liabilities and credit risk transfer strips:                    
Derivative liabilities [1]             17,340 1,753    
Call Options on Interest Rate Futures Purchase Contracts [Member] | Nonaffiliates [Member]                    
Assets:                    
Derivative assets [1]             1,289 156    
Derivative liabilities and credit risk transfer strips:                    
Derivative liabilities [1]             0 0    
Put Options on Interest Rate Futures Purchase Contracts [Member] | Nonaffiliates [Member]                    
Assets:                    
Derivative assets [1]             4,109 6,372    
Derivative liabilities and credit risk transfer strips:                    
Derivative liabilities [1]             0 0    
MBS Put Options [Member] | Nonaffiliates [Member]                    
Assets:                    
Derivative assets [1]             0 2,114    
Derivative liabilities and credit risk transfer strips:                    
Derivative liabilities [1]             0 0    
PennyMac Financial Services, Inc. [Member]                    
Assets:                    
Derivative assets             6,389 0    
Derivative assets, Netting             (142) 0    
Total derivative assets after netting             6,247 0    
Derivative liabilities and credit risk transfer strips:                    
Derivative liabilities             2,399 0    
Derivative liabilities, Netting             (142) 0    
Total derivative liabilities after netting             2,257 0    
PennyMac Financial Services, Inc. [Member] | Interest Rate Lock Commitments [Member]                    
Assets:                    
Derivative assets             4,605 0    
Derivative liabilities and credit risk transfer strips:                    
Derivative liabilities             2,257 0    
PennyMac Financial Services, Inc. [Member] | Forward Purchase Contracts [Member]                    
Assets:                    
Derivative assets             1,784 0    
Derivative liabilities and credit risk transfer strips:                    
Derivative liabilities             142 0    
Recurring [Member]                    
Assets:                    
Short-term investments             190,518 103,198    
Mortgage-backed securities             4,452,859 4,063,706    
Loans held for sale             2,699,398 2,116,318    
Loans held for investment             8,532,644 2,193,575    
Total Assets             19,576,064 12,401,031    
Derivative assets               96,251    
Derivative assets, Netting               (39,411)    
Total derivative assets after netting               56,840    
Mortgage servicing rights             3,644,702 3,867,394    
Liabilities:                    
Interest-only security payable             37,650 34,222    
Asset-backed financings of variable interest entities             7,789,303 2,040,375    
Derivative liabilities and credit risk transfer strips:                    
Derivative liabilities               11,207    
Derivative liabilities, Netting               (7,916)    
Total derivative liabilities after netting               3,291    
Total derivative and credit risk transfer strip liabilities               7,351    
Total liabilities             7,836,142 2,081,948    
Recurring [Member] | Credit Risk Transfer Strips [Member]                    
Derivative liabilities and credit risk transfer strips:                    
Derivative liabilities               4,060    
Recurring [Member] | Credit Risk Transfer / CRT Derivatives [Member]                    
Assets:                    
Derivative assets               29,377    
Recurring [Member] | Level 1 [Member]                    
Assets:                    
Short-term investments             190,518 103,198    
Mortgage-backed securities             0 0    
Loans held for sale             0 0    
Loans held for investment             0 0    
Total Assets             195,916 109,726    
Derivative assets               6,528    
Derivative assets, Netting               0    
Total derivative assets after netting               6,528    
Mortgage servicing rights             0 0    
Liabilities:                    
Interest-only security payable             0 0    
Asset-backed financings of variable interest entities             0 0    
Derivative liabilities and credit risk transfer strips:                    
Derivative liabilities               0    
Derivative liabilities, Netting               0    
Total derivative liabilities after netting               0    
Total derivative and credit risk transfer strip liabilities               0    
Total liabilities             0 0    
Recurring [Member] | Level 1 [Member] | Credit Risk Transfer Strips [Member]                    
Derivative liabilities and credit risk transfer strips:                    
Derivative liabilities               0    
Recurring [Member] | Level 1 [Member] | Credit Risk Transfer / CRT Derivatives [Member]                    
Assets:                    
Derivative assets               0    
Recurring [Member] | Level 2 [Member]                    
Assets:                    
Short-term investments             0 0    
Mortgage-backed securities             4,380,357 3,977,446    
Loans held for sale             2,695,817 2,108,347    
Loans held for investment             8,530,939 2,191,709    
Total Assets             15,615,391 8,334,286    
Derivative assets               56,784    
Derivative assets, Netting               0    
Total derivative assets after netting               56,784    
Mortgage servicing rights             0 0    
Liabilities:                    
Interest-only security payable             0 0    
Asset-backed financings of variable interest entities             7,789,303 2,040,375    
Derivative liabilities and credit risk transfer strips:                    
Derivative liabilities               8,089    
Derivative liabilities, Netting               0    
Total derivative liabilities after netting               8,089    
Total derivative and credit risk transfer strip liabilities               8,089    
Total liabilities             7,806,943 2,048,464    
Recurring [Member] | Level 2 [Member] | Credit Risk Transfer Strips [Member]                    
Derivative liabilities and credit risk transfer strips:                    
Derivative liabilities               0    
Recurring [Member] | Level 2 [Member] | Credit Risk Transfer / CRT Derivatives [Member]                    
Assets:                    
Derivative assets               0    
Recurring [Member] | Level 3 [Member]                    
Assets:                    
Short-term investments             0 0    
Mortgage-backed securities             72,502 86,260    
Loans held for sale             3,581 7,971    
Loans held for investment             1,705 1,866    
Total Assets             3,759,754 3,996,430    
Derivative assets               32,939    
Derivative assets, Netting               0    
Total derivative assets after netting               32,939    
Mortgage servicing rights             3,644,702 3,867,394    
Liabilities:                    
Interest-only security payable             37,650 34,222    
Asset-backed financings of variable interest entities             0 0    
Derivative liabilities and credit risk transfer strips:                    
Derivative liabilities               3,118    
Derivative liabilities, Netting               0    
Total derivative liabilities after netting               3,118    
Total derivative and credit risk transfer strip liabilities               7,178    
Total liabilities             45,906 41,400    
Recurring [Member] | Level 3 [Member] | Credit Risk Transfer Strips [Member]                    
Derivative liabilities and credit risk transfer strips:                    
Derivative liabilities               4,060    
Recurring [Member] | Level 3 [Member] | Credit Risk Transfer / CRT Derivatives [Member]                    
Assets:                    
Derivative assets               29,377    
Recurring [Member] | Interest Rate Lock Commitments [Member]                    
Assets:                    
Derivative assets               3,118    
Derivative liabilities and credit risk transfer strips:                    
Derivative liabilities               3,562    
Recurring [Member] | Interest Rate Lock Commitments [Member] | Level 1 [Member]                    
Assets:                    
Derivative assets               0    
Derivative liabilities and credit risk transfer strips:                    
Derivative liabilities               0    
Recurring [Member] | Interest Rate Lock Commitments [Member] | Level 2 [Member]                    
Assets:                    
Derivative assets               0    
Derivative liabilities and credit risk transfer strips:                    
Derivative liabilities               0    
Recurring [Member] | Interest Rate Lock Commitments [Member] | Level 3 [Member]                    
Assets:                    
Derivative assets               3,118    
Derivative liabilities and credit risk transfer strips:                    
Derivative liabilities               3,562    
Recurring [Member] | Forward Purchase Contracts [Member]                    
Assets:                    
Derivative assets               614    
Derivative liabilities and credit risk transfer strips:                    
Derivative liabilities               6,336    
Recurring [Member] | Forward Purchase Contracts [Member] | Level 1 [Member]                    
Assets:                    
Derivative assets               0    
Derivative liabilities and credit risk transfer strips:                    
Derivative liabilities               0    
Recurring [Member] | Forward Purchase Contracts [Member] | Level 2 [Member]                    
Assets:                    
Derivative assets               614    
Derivative liabilities and credit risk transfer strips:                    
Derivative liabilities               6,336    
Recurring [Member] | Forward Purchase Contracts [Member] | Level 3 [Member]                    
Assets:                    
Derivative assets               0    
Derivative liabilities and credit risk transfer strips:                    
Derivative liabilities               0    
Recurring [Member] | Forward Sales Contracts [Member]                    
Assets:                    
Derivative assets               54,056    
Derivative liabilities and credit risk transfer strips:                    
Derivative liabilities               1,753    
Recurring [Member] | Forward Sales Contracts [Member] | Level 1 [Member]                    
Assets:                    
Derivative assets               0    
Derivative liabilities and credit risk transfer strips:                    
Derivative liabilities               0    
Recurring [Member] | Forward Sales Contracts [Member] | Level 2 [Member]                    
Assets:                    
Derivative assets               54,056    
Derivative liabilities and credit risk transfer strips:                    
Derivative liabilities               1,753    
Recurring [Member] | Forward Sales Contracts [Member] | Level 3 [Member]                    
Assets:                    
Derivative assets               0    
Derivative liabilities and credit risk transfer strips:                    
Derivative liabilities               0    
Recurring [Member] | Nonaffiliates [Member]                    
Assets:                    
Derivative assets             44,551      
Derivative assets, Netting             5,145      
Total derivative assets after netting             49,696      
Derivative liabilities and credit risk transfer strips:                    
Derivative liabilities, Netting             (16,565)      
Total derivative liabilities after netting             933      
Total derivative and credit risk transfer strip liabilities             6,932      
Recurring [Member] | Nonaffiliates [Member] | Credit Risk Transfer Strips [Member]                    
Derivative liabilities and credit risk transfer strips:                    
Derivative liabilities             5,999      
Recurring [Member] | Nonaffiliates [Member] | Credit Risk Transfer / CRT Derivatives [Member]                    
Assets:                    
Derivative assets             32,659      
Recurring [Member] | Nonaffiliates [Member] | Level 1 [Member]                    
Assets:                    
Derivative assets             5,398      
Derivative assets, Netting             0      
Total derivative assets after netting             5,398      
Derivative liabilities and credit risk transfer strips:                    
Derivative liabilities             0      
Derivative liabilities, Netting             0      
Total derivative liabilities after netting             0      
Total derivative and credit risk transfer strip liabilities             0      
Recurring [Member] | Nonaffiliates [Member] | Level 1 [Member] | Credit Risk Transfer Strips [Member]                    
Derivative liabilities and credit risk transfer strips:                    
Derivative liabilities             0      
Recurring [Member] | Nonaffiliates [Member] | Level 1 [Member] | Credit Risk Transfer / CRT Derivatives [Member]                    
Assets:                    
Derivative assets             0      
Recurring [Member] | Nonaffiliates [Member] | Level 2 [Member]                    
Assets:                    
Derivative assets             6,494      
Derivative assets, Netting             0      
Total derivative assets after netting             6,494      
Derivative liabilities and credit risk transfer strips:                    
Derivative liabilities             17,498      
Derivative liabilities, Netting             0      
Total derivative liabilities after netting             17,498      
Total derivative and credit risk transfer strip liabilities             17,498      
Recurring [Member] | Nonaffiliates [Member] | Level 2 [Member] | Credit Risk Transfer Strips [Member]                    
Derivative liabilities and credit risk transfer strips:                    
Derivative liabilities             0      
Recurring [Member] | Nonaffiliates [Member] | Level 2 [Member] | Credit Risk Transfer / CRT Derivatives [Member]                    
Assets:                    
Derivative assets             0      
Recurring [Member] | Nonaffiliates [Member] | Level 3 [Member]                    
Assets:                    
Derivative assets             32,659      
Derivative assets, Netting             0      
Total derivative assets after netting             32,659      
Derivative liabilities and credit risk transfer strips:                    
Derivative liabilities             0      
Derivative liabilities, Netting             0      
Total derivative liabilities after netting             0      
Total derivative and credit risk transfer strip liabilities             5,999      
Recurring [Member] | Nonaffiliates [Member] | Level 3 [Member] | Credit Risk Transfer Strips [Member]                    
Derivative liabilities and credit risk transfer strips:                    
Derivative liabilities             5,999      
Recurring [Member] | Nonaffiliates [Member] | Level 3 [Member] | Credit Risk Transfer / CRT Derivatives [Member]                    
Assets:                    
Derivative assets             32,659      
Recurring [Member] | Nonaffiliates [Member] | Forward Purchase Contracts [Member]                    
Assets:                    
Derivative assets             4,113      
Derivative liabilities and credit risk transfer strips:                    
Derivative liabilities             158      
Recurring [Member] | Nonaffiliates [Member] | Forward Purchase Contracts [Member] | Level 1 [Member]                    
Assets:                    
Derivative assets             0      
Derivative liabilities and credit risk transfer strips:                    
Derivative liabilities             0      
Recurring [Member] | Nonaffiliates [Member] | Forward Purchase Contracts [Member] | Level 2 [Member]                    
Assets:                    
Derivative assets             4,113      
Derivative liabilities and credit risk transfer strips:                    
Derivative liabilities             158      
Recurring [Member] | Nonaffiliates [Member] | Forward Purchase Contracts [Member] | Level 3 [Member]                    
Assets:                    
Derivative assets             0      
Derivative liabilities and credit risk transfer strips:                    
Derivative liabilities             0      
Recurring [Member] | Nonaffiliates [Member] | Forward Sales Contracts [Member]                    
Assets:                    
Derivative assets             2,381      
Derivative liabilities and credit risk transfer strips:                    
Derivative liabilities             17,340      
Recurring [Member] | Nonaffiliates [Member] | Forward Sales Contracts [Member] | Level 1 [Member]                    
Assets:                    
Derivative assets             0      
Derivative liabilities and credit risk transfer strips:                    
Derivative liabilities             0      
Recurring [Member] | Nonaffiliates [Member] | Forward Sales Contracts [Member] | Level 2 [Member]                    
Assets:                    
Derivative assets             2,381      
Derivative liabilities and credit risk transfer strips:                    
Derivative liabilities             17,340      
Recurring [Member] | Nonaffiliates [Member] | Forward Sales Contracts [Member] | Level 3 [Member]                    
Assets:                    
Derivative assets             0      
Derivative liabilities and credit risk transfer strips:                    
Derivative liabilities             0      
Recurring [Member] | Call Options on Interest Rate Futures Purchase Contracts [Member]                    
Assets:                    
Derivative assets               156    
Recurring [Member] | Call Options on Interest Rate Futures Purchase Contracts [Member] | Level 1 [Member]                    
Assets:                    
Derivative assets               156    
Recurring [Member] | Call Options on Interest Rate Futures Purchase Contracts [Member] | Level 2 [Member]                    
Assets:                    
Derivative assets               0    
Recurring [Member] | Call Options on Interest Rate Futures Purchase Contracts [Member] | Level 3 [Member]                    
Assets:                    
Derivative assets               0    
Recurring [Member] | Call Options on Interest Rate Futures Purchase Contracts [Member] | Nonaffiliates [Member]                    
Assets:                    
Derivative assets             1,289      
Recurring [Member] | Call Options on Interest Rate Futures Purchase Contracts [Member] | Nonaffiliates [Member] | Level 1 [Member]                    
Assets:                    
Derivative assets             1,289      
Recurring [Member] | Call Options on Interest Rate Futures Purchase Contracts [Member] | Nonaffiliates [Member] | Level 2 [Member]                    
Assets:                    
Derivative assets             0      
Recurring [Member] | Call Options on Interest Rate Futures Purchase Contracts [Member] | Nonaffiliates [Member] | Level 3 [Member]                    
Assets:                    
Derivative assets             0      
Recurring [Member] | Put Options on Interest Rate Futures Purchase Contracts [Member]                    
Assets:                    
Derivative assets               6,372    
Recurring [Member] | Put Options on Interest Rate Futures Purchase Contracts [Member] | Level 1 [Member]                    
Assets:                    
Derivative assets               6,372    
Recurring [Member] | Put Options on Interest Rate Futures Purchase Contracts [Member] | Level 2 [Member]                    
Assets:                    
Derivative assets               0    
Recurring [Member] | Put Options on Interest Rate Futures Purchase Contracts [Member] | Level 3 [Member]                    
Assets:                    
Derivative assets               0    
Recurring [Member] | Put Options on Interest Rate Futures Purchase Contracts [Member] | Nonaffiliates [Member]                    
Assets:                    
Derivative assets             4,109      
Recurring [Member] | Put Options on Interest Rate Futures Purchase Contracts [Member] | Nonaffiliates [Member] | Level 1 [Member]                    
Assets:                    
Derivative assets             4,109      
Recurring [Member] | Put Options on Interest Rate Futures Purchase Contracts [Member] | Nonaffiliates [Member] | Level 2 [Member]                    
Assets:                    
Derivative assets             0      
Recurring [Member] | Put Options on Interest Rate Futures Purchase Contracts [Member] | Nonaffiliates [Member] | Level 3 [Member]                    
Assets:                    
Derivative assets             0      
Recurring [Member] | MBS Put Options [Member]                    
Assets:                    
Derivative assets               2,114    
Recurring [Member] | MBS Put Options [Member] | Level 1 [Member]                    
Assets:                    
Derivative assets               0    
Recurring [Member] | MBS Put Options [Member] | Level 2 [Member]                    
Assets:                    
Derivative assets               2,114    
Recurring [Member] | MBS Put Options [Member] | Level 3 [Member]                    
Assets:                    
Derivative assets               $ 0    
Recurring [Member] | PennyMac Financial Services, Inc. [Member]                    
Assets:                    
Derivative assets             6,389      
Derivative assets, Netting             (142)      
Total derivative assets after netting             6,247      
Derivative liabilities and credit risk transfer strips:                    
Derivative liabilities             2,399      
Derivative liabilities, Netting             (142)      
Total derivative liabilities after netting             2,257      
Recurring [Member] | PennyMac Financial Services, Inc. [Member] | Level 1 [Member]                    
Assets:                    
Derivative assets             0      
Derivative assets, Netting             0      
Total derivative assets after netting             0      
Derivative liabilities and credit risk transfer strips:                    
Derivative liabilities             0      
Derivative liabilities, Netting             0      
Total derivative liabilities after netting             0      
Recurring [Member] | PennyMac Financial Services, Inc. [Member] | Level 2 [Member]                    
Assets:                    
Derivative assets             1,784      
Derivative assets, Netting             0      
Total derivative assets after netting             1,784      
Derivative liabilities and credit risk transfer strips:                    
Derivative liabilities             142      
Derivative liabilities, Netting             0      
Total derivative liabilities after netting             142      
Recurring [Member] | PennyMac Financial Services, Inc. [Member] | Level 3 [Member]                    
Assets:                    
Derivative assets             4,605      
Derivative assets, Netting             0      
Total derivative assets after netting             4,605      
Derivative liabilities and credit risk transfer strips:                    
Derivative liabilities             2,257      
Derivative liabilities, Netting             0      
Total derivative liabilities after netting             2,257      
Recurring [Member] | PennyMac Financial Services, Inc. [Member] | Interest Rate Lock Commitments [Member]                    
Assets:                    
Derivative assets             4,605      
Derivative liabilities and credit risk transfer strips:                    
Derivative liabilities             2,257      
Recurring [Member] | PennyMac Financial Services, Inc. [Member] | Interest Rate Lock Commitments [Member] | Level 1 [Member]                    
Assets:                    
Derivative assets             0      
Derivative liabilities and credit risk transfer strips:                    
Derivative liabilities             0      
Recurring [Member] | PennyMac Financial Services, Inc. [Member] | Interest Rate Lock Commitments [Member] | Level 2 [Member]                    
Assets:                    
Derivative assets             0      
Derivative liabilities and credit risk transfer strips:                    
Derivative liabilities             0      
Recurring [Member] | PennyMac Financial Services, Inc. [Member] | Interest Rate Lock Commitments [Member] | Level 3 [Member]                    
Assets:                    
Derivative assets             4,605      
Derivative liabilities and credit risk transfer strips:                    
Derivative liabilities             2,257      
Recurring [Member] | PennyMac Financial Services, Inc. [Member] | Forward Purchase Contracts [Member]                    
Assets:                    
Derivative assets             1,784      
Derivative liabilities and credit risk transfer strips:                    
Derivative liabilities             142      
Recurring [Member] | PennyMac Financial Services, Inc. [Member] | Forward Purchase Contracts [Member] | Level 1 [Member]                    
Assets:                    
Derivative assets             0      
Derivative liabilities and credit risk transfer strips:                    
Derivative liabilities             0      
Recurring [Member] | PennyMac Financial Services, Inc. [Member] | Forward Purchase Contracts [Member] | Level 2 [Member]                    
Assets:                    
Derivative assets             1,784      
Derivative liabilities and credit risk transfer strips:                    
Derivative liabilities             142      
Recurring [Member] | PennyMac Financial Services, Inc. [Member] | Forward Purchase Contracts [Member] | Level 3 [Member]                    
Assets:                    
Derivative assets             0      
Derivative liabilities and credit risk transfer strips:                    
Derivative liabilities             $ 0      
[1] All hedging derivatives are interest rate derivatives that are used as economic hedges.
v3.25.4
Fair Value - Summary of Changes in Items Measured Using Level 3 Inputs on Recurring Basis (Detail) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Assets:      
Amounts received pursuant to sales of loans $ 190,141 $ 219,001 $ 292,527
Changes in fair value included in income arising from:      
Loans to REO 0 0 (1,205)
Mortgage servicing rights relating to delinquent loans to Agency 876 561 (472)
Interest Rate Lock Commitments [Member]      
Assets:      
Beginning balance 444    
Changes in fair value included in income arising from:      
Ending balance 2,348 444  
Recurring [Member]      
Assets:      
Beginning balance 3,989,252 3,998,787 3,867,133
Purchases and issuances 29,056 75,647 28,119
Repayments and sales (76,681) (215,642) (79,794)
Accrual of unearned discounts 8,677 9,093 2,673
Amounts received pursuant to sales of loans 190,141 219,001 292,031
Changes in fair value included in income arising from:      
Changes in instrument-specific credit risk 0 0 0
Other factors (336,243) (63,903) (97,108)
Total $ (336,243) $ (63,903) $ (97,108)
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 held for sale $ (53,580) (34,292) (11,786)
Mortgage servicing rights relating to delinquent loans to Agency 876 561 (472)
Ending balance 3,751,498 3,989,252 3,998,787
Changes in fair value recognized during the year relating to assets (414,050) (114,443) $ (170,351)
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
Recurring [Member] | CRT Derivatives [Member]      
Assets:      
Beginning balance 29,377 16,160 $ (22,098)
Purchases and issuances 0 0 0
Repayments and sales 11,054 (13,803) (18,286)
Accrual of unearned discounts 0 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 14,336 27,020 56,544
Total $ 14,336 $ 27,020 $ 56,544
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 $ 0
Loans to REO     0
Interest rate lock commitments to loans held for sale $ 0 0 0
Mortgage servicing rights relating to delinquent loans to Agency 0 0 0
Ending balance 32,659 29,377 16,160
Changes in fair value recognized during the year relating to assets $ 3,572 $ 13,529 $ 38,020
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
Recurring [Member] | Credit Risk Transfer Strips [Member]      
Assets:      
Beginning balance $ (4,060) $ (46,692) $ (137,193)
Purchases and issuances 0 0 0
Repayments and sales (39,401) (45,573) (46,252)
Accrual of unearned discounts 0 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 37,462 88,205 136,753
Total $ 37,462 $ 88,205 $ 136,753
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 $ 0
Loans to REO     0
Interest rate lock commitments to loans held for sale $ 0 0 0
Mortgage servicing rights relating to delinquent loans to Agency 0 0 0
Ending balance (5,999) (4,060) (46,692)
Changes in fair value recognized during the year relating to assets $ (1,727) $ 42,632 $ 90,501
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
Recurring [Member] | Loans Held for Investment [Member]      
Assets:      
Beginning balance $ 1,866 $ 2,131  
Purchases and issuances 0 0  
Repayments and sales (159) (144)  
Accrual of unearned discounts 0 0  
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) (121)  
Total $ (2) $ (121)  
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)  
Exchange of mortgage servicing spread for interest-only stripped mortgage-backed securities   $ 0  
Interest rate lock commitments to loans held for sale $ 0 0  
Mortgage servicing rights relating to delinquent loans to Agency 0 0  
Ending balance 1,705 1,866 $ 2,131
Changes in fair value recognized during the year relating to assets $ (28) $ (140)  
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  
Recurring [Member] | Loans At Fair Value [Member]      
Assets:      
Beginning balance   $ 2,131 3,457
Purchases and issuances     119
Repayments and sales     (548)
Accrual of unearned discounts     0
Amounts received pursuant to sales of loans     0
Changes in fair value included in income arising from:      
Changes in instrument-specific credit risk     0
Other factors     (437)
Total     $ (437)
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)
Exchange of mortgage servicing spread for interest-only stripped mortgage-backed securities     $ 0
Loans to REO     (460)
Interest rate lock commitments to loans held for sale     0
Mortgage servicing rights relating to delinquent loans to Agency     0
Ending balance     2,131
Changes in fair value recognized during the year relating to assets     $ (964)
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
Recurring [Member] | Mortgage servicing rights [Member]      
Assets:      
Beginning balance $ 3,867,394 3,919,107 $ 4,012,737
Purchases and issuances 0 29,429 16,258
Repayments and sales 0 0 0
Accrual of unearned discounts 0 0 0
Amounts received pursuant to sales of loans 190,141 219,001 292,527
Changes in fair value included in income arising from:      
Changes in instrument-specific credit risk 0 0 0
Other factors (413,709) (170,409) (296,847)
Total $ (413,709) $ (170,409) $ (296,847)
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   $ (130,295) $ (105,096)
Loans to REO     0
Interest rate lock commitments to loans held for sale $ 0 0 0
Mortgage servicing rights relating to delinquent loans to Agency 876 561 (472)
Ending balance 3,644,702 3,867,394 3,919,107
Changes in fair value recognized during the year relating to assets $ (413,709) $ (173,271) $ (296,847)
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
Recurring [Member] | Loans Held for Sale [Member]      
Assets:      
Beginning balance $ 7,971 $ 6,318  
Purchases and issuances 3,290 8,132  
Repayments and sales (8,265) (6,139)  
Accrual of unearned discounts 0 0  
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 585 (340)  
Total $ 585 $ (340)  
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)  
Exchange of mortgage servicing spread for interest-only stripped mortgage-backed securities   $ 0  
Interest rate lock commitments to loans held for sale $ 0 0  
Mortgage servicing rights relating to delinquent loans to Agency 0 0  
Ending balance 3,581 7,971 $ 6,318
Changes in fair value recognized during the year relating to assets $ 127 $ (261)  
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  
Recurring [Member] | Loans acquired for sale [Member]      
Assets:      
Beginning balance   $ 6,318 10,708
Purchases and issuances     7,151
Repayments and sales     (11,291)
Accrual of unearned discounts     0
Amounts received pursuant to sales of loans     (496)
Changes in fair value included in income arising from:      
Changes in instrument-specific credit risk     0
Other factors     246
Total     $ 246
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)
Exchange of mortgage servicing spread for interest-only stripped mortgage-backed securities     $ 0
Loans to REO     0
Interest rate lock commitments to loans held for sale     0
Mortgage servicing rights relating to delinquent loans to Agency     0
Ending balance     6,318
Changes in fair value recognized during the year relating to assets     $ (21)
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
Recurring [Member] | Interest Rate Lock Commitments [Member]      
Assets:      
Beginning balance $ 444 7,532 $ (478)
Purchases and issuances   38,086 4,591
Repayments and sales   0 0
Accrual of unearned discounts   0 0
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   (10,882) 15,205
Total   $ (10,882) $ 15,205
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)
Exchange of mortgage servicing spread for interest-only stripped mortgage-backed securities   $ 0 $ 0
Loans to REO     0
Interest rate lock commitments to loans held for sale   (34,292) (11,786)
Mortgage servicing rights relating to delinquent loans to Agency   0 0
Ending balance   444 7,532
Changes in fair value recognized during the year relating to assets   $ 444 $ 7,532
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
Recurring [Member] | Interest Rate Lock Commitments with Nonaffiliates [Member]      
Assets:      
Beginning balance 444    
Purchases and issuances 8,152    
Repayments and sales 0    
Accrual of unearned discounts 0    
Amounts received pursuant to sales of loans 0    
Changes in fair value included in income arising from:      
Changes in instrument-specific credit risk 0    
Other factors 11,920    
Total $ 11,920    
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)    
Interest rate lock commitments to loans held for sale $ (20,516)    
Mortgage servicing rights relating to delinquent loans to Agency 0    
Ending balance 0 $ 444  
Changes in fair value recognized during the year relating to assets $ 0    
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    
Recurring [Member] | Interest Rate Lock Commitments with PFSI [Member]      
Assets:      
Beginning balance $ 0    
Purchases and issuances 17,614    
Repayments and sales 0    
Accrual of unearned discounts 0    
Amounts received pursuant to sales of loans 0    
Changes in fair value included in income arising from:      
Changes in instrument-specific credit risk 0    
Other factors 17,798    
Total $ 17,798    
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)    
Interest rate lock commitments to loans held for sale $ (33,064)    
Mortgage servicing rights relating to delinquent loans to Agency 0    
Ending balance 2,348 0  
Changes in fair value recognized during the year relating to assets $ 2,348    
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    
Recurring [Member] | Interest-only security payable [Member]      
Liabilities:      
Beginning balance $ 34,222 32,667 $ 21,925
Changes in instrument-specific credit risk\Other factors 3,428 1,555 10,742
Ending balance 37,650 34,222 32,667
Changes in fair value recognized during the quarter relating to liability 3,428 1,555 10,742
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 3,428 1,555 10,742
Recurring [Member] | Interest-Only Stripped Mortgage-Backed Securities [Member]      
Assets:      
Beginning balance 86,260 94,231 0
Purchases and issuances 0 0 0
Repayments and sales (17,802) (149,983) (3,417)
Accrual of unearned discounts 8,677 9,093 2,673
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 (4,633) 2,624 (8,572)
Total $ (4,633) $ 2,624 $ (8,572)
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   $ 130,295 $ 103,547
Loans to REO     0
Interest rate lock commitments to loans held for sale $ 0 0 0
Mortgage servicing rights relating to delinquent loans to Agency 0 0 0
Ending balance 72,502 86,260 94,231
Changes in fair value recognized during the year relating to assets $ (4,633) $ 2,624 $ (8,572)
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
v3.25.4
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, 2025
Dec. 31, 2024
Loans, fair value [Abstract]    
Fair value $ 8,532,644 $ 2,193,575
Fair value, Total 8,532,644 2,193,575
Loans, principal amount due upon maturity [Abstract]    
Principal amount due upon maturity 8,359,235 2,419,263
Loans, difference, [Abstract]    
Difference 173,409 (225,688)
Loans held for sale [Member]    
Loans, fair value [Abstract]    
Current through 89 days delinquent 2,696,128 2,114,556
90 or more days delinquent, not in foreclosure 1,273 1,687
90 or more days delinquent, in foreclosure 1,997 75
Fair value, Total 2,699,398 2,116,318
Loans, principal amount due upon maturity [Abstract]    
Current through 89 days delinquent 2,627,441 2,092,030
90 or more days delinquent, not in foreclosure 1,271 2,114
90 or more days delinquent, in foreclosure 2,289 96
Principal amount due upon maturity 2,631,001 2,094,240
Loans, difference, [Abstract]    
Current through 89 days delinquent 68,687 22,526
90 or more days delinquent, not in foreclosure 2 (427)
90 or more days delinquent, in foreclosure (292) (21)
Difference 68,397 22,078
Loans held for sale [Member] | Nonperforming mortgage loans [Member]    
Loans, fair value [Abstract]    
Fair value 3,270 1,762
Loans, principal amount due upon maturity [Abstract]    
Principal amount due upon maturity 3,560 2,210
Loans, difference, [Abstract]    
Difference (290) (448)
Mortgage Loans Held For Investment Held By Variable Interest Entity [Member]    
Loans, fair value [Abstract]    
Current through 89 days delinquent 8,529,906 2,190,432
90 or more days delinquent, not in foreclosure 700 1,277
90 or more days delinquent, in foreclosure 333 0
Fair value 8,530,939 2,191,709
Loans, principal amount due upon maturity [Abstract]    
Current through 89 days delinquent 8,353,814 2,413,214
90 or more days delinquent, not in foreclosure 844 1,658
90 or more days delinquent, in foreclosure 428 0
Principal amount due upon maturity 8,355,086 2,414,872
Loans, difference, [Abstract]    
Current through 89 days delinquent 176,092 (222,782)
90 or more days delinquent, not in foreclosure (144) (381)
90 or more days delinquent, in foreclosure (95) 0
Difference 175,853 (223,163)
Mortgage Loans Held For Investment Held By Variable Interest Entity [Member] | Nonperforming mortgage loans [Member]    
Loans, fair value [Abstract]    
Fair value 1,033 1,277
Loans, principal amount due upon maturity [Abstract]    
Principal amount due upon maturity 1,272 1,658
Loans, difference, [Abstract]    
Difference (239) (381)
Distressed at Fair Value [Member]    
Loans, fair value [Abstract]    
Current through 89 days delinquent 371 445
90 or more days delinquent, not in foreclosure 942 1,421
90 or more days delinquent, in foreclosure 392 0
Fair value 1,705 1,866
Loans, principal amount due upon maturity [Abstract]    
Current through 89 days delinquent 476 595
90 or more days delinquent, not in foreclosure 2,553 3,796
90 or more days delinquent, in foreclosure 1,120 0
Principal amount due upon maturity 4,149 4,391
Loans, difference, [Abstract]    
Current through 89 days delinquent (105) (150)
90 or more days delinquent, not in foreclosure (1,611) (2,375)
90 or more days delinquent, in foreclosure (728) 0
Difference (2,444) (2,525)
Distressed at Fair Value [Member] | Nonperforming mortgage loans [Member]    
Loans, fair value [Abstract]    
Fair value 1,334 1,421
Loans, principal amount due upon maturity [Abstract]    
Principal amount due upon maturity 3,673 3,796
Loans, difference, [Abstract]    
Difference $ (2,339) $ (2,375)
v3.25.4
Fair Value - Summary of Changes in Fair Value Included in Current Period Results of Operations (Detail) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Credit Risk Transfer Strips [Member]      
Fair Value, Option, Quantitative Disclosures [Line Items]      
Changes in fair value included in current period income (expense) $ 37,462 $ 88,205 $ 136,753
Credit Risk Transfer Strips [Member] | Net Gains on Investments and Financings [Member]      
Fair Value, Option, Quantitative Disclosures [Line Items]      
Changes in fair value included in current period income (expense) 37,462 88,205 136,753
Credit Risk Transfer Strips [Member] | Net Gains on Loans Held 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 [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 [Member] | Net Interest 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) (3,428) (1,555) (10,742)
Interest-only security payable [Member] | Net Gains on Investments and Financings [Member]      
Fair Value, Option, Quantitative Disclosures [Line Items]      
Changes in fair value included in current period income (expense) (3,428) (1,555) (10,742)
Interest-only security payable [Member] | Net Gains on Loans Held 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 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 Interest 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 of VIEs [Member]      
Fair Value, Option, Quantitative Disclosures [Line Items]      
Changes in fair value included in current period income (expense) (85,455) (11,049) (14,174)
Asset-Backed Financings of VIEs [Member] | Net Gains on Investments and Financings [Member]      
Fair Value, Option, Quantitative Disclosures [Line Items]      
Changes in fair value included in current period income (expense) (96,439) (7,396) (13,678)
Asset-Backed Financings of VIEs [Member] | Net Gains on Loans Held 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 of VIEs [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 of VIEs [Member] | Net Interest Expense [Member]      
Fair Value, Option, Quantitative Disclosures [Line Items]      
Changes in fair value included in current period income (expense) 10,984 (3,653) (496)
Liabilities, Total [Member]      
Fair Value, Option, Quantitative Disclosures [Line Items]      
Changes in fair value included in current period income (expense) (88,883) (12,604) (24,916)
Liabilities, Total [Member] | Net Gains on Investments and Financings [Member]      
Fair Value, Option, Quantitative Disclosures [Line Items]      
Changes in fair value included in current period income (expense) (99,867) (8,951) (24,420)
Liabilities, Total [Member] | Net Gains on Loans Held 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 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 Interest Expense [Member]      
Fair Value, Option, Quantitative Disclosures [Line Items]      
Changes in fair value included in current period income (expense) 10,984 (3,653) (496)
Mortgage Backed Securities [Member]      
Fair Value, Option, Quantitative Disclosures [Line Items]      
Changes in fair value included in current period income (expense) 199,669 (52,065) 76,970
Mortgage Backed Securities [Member] | Net Gains on Investments and Financings [Member]      
Fair Value, Option, Quantitative Disclosures [Line Items]      
Changes in fair value included in current period income (expense) 148,344 (80,838) 74,984
Mortgage Backed Securities [Member] | Net Gains on Loans Held 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 [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 [Member] | Net Interest Expense [Member]      
Fair Value, Option, Quantitative Disclosures [Line Items]      
Changes in fair value included in current period income (expense) 51,325 28,773 1,986
Loans held for sale [Member]      
Fair Value, Option, Quantitative Disclosures [Line Items]      
Changes in fair value included in current period income (expense) 149,579 24,457 15,025
Loans held for sale [Member] | Net Gains 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 held for sale [Member] | Net Gains on Loans Held for Sale [Member]      
Fair Value, Option, Quantitative Disclosures [Line Items]      
Changes in fair value included in current period income (expense) 149,579 24,457 15,025
Loans held for sale [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 held for sale [Member] | Net Interest Expense [Member]      
Fair Value, Option, Quantitative Disclosures [Line Items]      
Changes in fair value included in current period income (expense) 0 (0) (0)
Loans held for investment [Member]      
Fair Value, Option, Quantitative Disclosures [Line Items]      
Changes in fair value included in current period income (expense) 82,112 13,708 15,312
Loans held for investment [Member] | Net Gains on Investments and Financings [Member]      
Fair Value, Option, Quantitative Disclosures [Line Items]      
Changes in fair value included in current period income (expense) 112,838 15,516 17,439
Loans held for investment [Member] | Net Gains on Loans Held for Sale [Member]      
Fair Value, Option, Quantitative Disclosures [Line Items]      
Changes in fair value included in current period income (expense) 0 0 (0)
Loans held for investment [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 held for investment [Member] | Net Interest Expense [Member]      
Fair Value, Option, Quantitative Disclosures [Line Items]      
Changes in fair value included in current period income (expense) (30,726) (1,808) (2,127)
Mortgage servicing rights [Member]      
Fair Value, Option, Quantitative Disclosures [Line Items]      
Changes in fair value included in current period income (expense) (413,709) (170,409) (296,847)
Mortgage servicing rights [Member] | Net Gains 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
Mortgage servicing rights [Member] | Net Gains on Loans Held for Sale [Member]      
Fair Value, Option, Quantitative Disclosures [Line Items]      
Changes in fair value included in current period income (expense) 0 0 0
Mortgage servicing rights [Member] | Net Loan Servicing Fees [Member]      
Fair Value, Option, Quantitative Disclosures [Line Items]      
Changes in fair value included in current period income (expense) (413,709) (170,409) (296,847)
Mortgage servicing rights [Member] | Net Interest 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) 55,113 (96,104) (52,787)
Assets, Total [Member] | Net Gains on Investments and Financings [Member]      
Fair Value, Option, Quantitative Disclosures [Line Items]      
Changes in fair value included in current period income (expense) 298,644 22,883 229,176
Assets, Total [Member] | Net Gains on Loans Held for Sale [Member]      
Fair Value, Option, Quantitative Disclosures [Line Items]      
Changes in fair value included in current period income (expense) 149,579 24,457 15,025
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) (413,709) (170,409) (296,847)
Assets, Total [Member] | Net Interest Expense [Member]      
Fair Value, Option, Quantitative Disclosures [Line Items]      
Changes in fair value included in current period income (expense) $ 20,599 $ 26,965 $ (141)
v3.25.4
Fair Value - Summary of Carrying Value of Assets Remeasured Based on Fair Value on Nonrecurring Basis (Detail) - Nonrecurring [Member] - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Real estate acquired in settlement of loans $ 30 $ 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 $ 30 $ 532
v3.25.4
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, 2025
Dec. 31, 2024
Dec. 31, 2023
Nonrecurring [Member]      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Real estate acquired in settlement of loans $ (68) $ (348) $ (223)
v3.25.4
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, 2025
Dec. 31, 2024
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 $ 2,258,128 $ 2,929,790
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 2,268,438 2,944,956
Unsecured Senior Notes [Member] | Carrying Value [Member]    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]    
Notes payable 1,028,300 605,860
Unsecured Senior Notes [Member] | Fair Value [Member]    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]    
Notes payable $ 1,073,341 $ 606,185
v3.25.4
Fair Value - Key Inputs Used in Determining Fair Value of IO (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair value $ 4,452,859 $ 4,063,706
Minimum [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair value inputs, Pricing spread   5.40%
Fair value inputs, Prepayment speed 7.00% 6.50%
Maximum [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair value inputs, Pricing spread   8.10%
Fair value inputs, Prepayment speed 21.50% 17.70%
Weighted Average [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair value inputs, Pricing spread   5.40%
Fair value inputs, Prepayment speed 8.40% 6.70%
IO [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair value $ 72,502 $ 86,260
IO [Member] | Minimum [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair value inputs, Option-adjusted spread 4.70%  
Fair value inputs, Pricing spread   5.90%
Fair value inputs, Prepayment speed 11.00% 9.40%
Fair value inputs, Equivalent life (in years) 4 years 4 years 7 months 6 days
IO [Member] | Maximum [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair value inputs, Option-adjusted spread 4.70%  
Fair value inputs, Pricing spread   6.50%
Fair value inputs, Prepayment speed 13.60% 10.20%
Fair value inputs, Equivalent life (in years) 7 years 8 months 12 days 8 years
IO [Member] | Weighted Average [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair value inputs, Option-adjusted spread 4.70%  
Fair value inputs, Pricing spread   6.50%
Fair value inputs, Prepayment speed 11.00% 9.40%
Fair value inputs, Equivalent life (in years) 7 years 7 months 6 days 7 years 10 months 24 days
v3.25.4
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 $ 32,659
UPB of loans in reference pools $ 4,961,644 $ 4,555,682
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% 8.60%
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% 14.10%
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% 8.80%
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% 6.30%
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% 7.30%
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 0.00% 0.00%
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% 0.10%
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% 0.10%
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 0.10% 0.10%
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% 0.10%
v3.25.4
Fair Value - Quantitative Summary of Key Unobservable Inputs Used in Valuation of Interest Rate Lock Commitments (Detail) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
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 50.50% 51.00%
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 100.00% 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 90.90% 86.30%
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 1.70% 2.60%
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 8.40% 7.80%
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 5.40% 5.70%
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 0.40% 0.60%
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 3.20% 2.70%
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% 1.90%
Interest Rate Lock Commitments [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair value $ 2,348 $ 444
Committed amount $ 1,207,859 $ 1,166,566
v3.25.4
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, 2025
Dec. 31, 2024
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair value of CRT derivatives liabilities $ 5,999 $ 4,060
Unpaid principal balance of loans in the reference pools $ 14,961,848 $ 16,287,660
Maximum [Member] | Discount Rate [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Key inputs used in valuation 8.60% 9.10%
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% 7.50%
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 1.40% 1.50%
Minimum [Member] | Discount Rate [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Key inputs used in valuation 5.00% 7.10%
Minimum [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% 6.90%
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% 0.10%
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% 0.40%
Weighted Average [Member] | Discount Rate [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Key inputs used in valuation 7.10% 7.00%
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 8.10% 8.80%
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% 0.10%
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% 0.50%
v3.25.4
Fair Value - Key Assumptions Used in Determining Fair Value of MSRs at Time of Initial Recognition (Detail)
$ in Thousands
12 Months Ended
Dec. 31, 2025
USD ($)
UsdPerLoan
Dec. 31, 2024
USD ($)
UsdPerLoan
Dec. 31, 2023
USD ($)
UsdPerLoan
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Fair value, MSR recognized | $ $ 190,141 $ 219,001 $ 292,527
Fair value, Unpaid principal balance of underlying loans | $ $ 10,233,335 $ 12,240,231 $ 15,966,491
Fair value, Weighted-average annual servicing fee rate (in basis points) 0.33% 0.35% 0.39%
Minimum [Member]      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Fair Value inputs, Pricing spread during period 4.80% 5.40% 5.50%
Fair Value inputs, Prepayment speed during period 8.70% 8.70% 10.10%
Fair Value inputs, Weighted average equivalent average life during period 3 years 8 months 12 days 3 years 4 months 24 days 2 years 9 months 18 days
Fair Value inputs, Annual per loan cost of servicing during period 68 68 68
Maximum [Member]      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Fair Value inputs, Pricing spread during period 10.00% 8.50% 8.80%
Fair Value inputs, Prepayment speed during period 15.50% 26.70% 22.70%
Fair Value inputs, Weighted average equivalent average life during period 8 years 3 months 18 days 8 years 1 month 6 days 7 years 2 months 12 days
Fair Value inputs, Annual per loan cost of servicing during period 91 87 83
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% 5.60% 5.80%
Fair Value inputs, Prepayment speed during period 9.80% 12.20% 12.40%
Fair Value inputs, Weighted average equivalent average life during period 8 years 6 years 10 months 24 days 6 years 9 months 18 days
Fair Value inputs, Annual per loan cost of servicing during period 69 69 70
v3.25.4
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, 2025
USD ($)
UsdPerLoan
Dec. 31, 2024
USD ($)
UsdPerLoan
Dec. 31, 2023
USD ($)
Dec. 31, 2022
USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Balance at end of period $ 3,644,702 $ 3,867,394 $ 3,919,107 $ 4,012,737
Unpaid principal balance of underlying loans, Fair Value $ 215,781,639 $ 226,237,613    
Weighted-average annual servicing fee rate (in basis points), Fair value input 28.00% 27.00%    
Weighted-average note interest rate, Fair value 3.90% 3.80%    
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 $ (30,295) $ (47,568)    
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 (60,089) (94,018)    
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 (118,218) (183,710)    
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 (61,563) (51,798)    
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 (120,960) (102,010)    
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 (233,683) (197,970)    
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 (15,979) (16,645)    
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 (31,959) (33,291)    
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 $ (63,918) $ (66,582)    
Minimum [Member]        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Estimated fair value inputs, Option-adjusted spread 3.60%      
Estimated fair value inputs, Pricing spread   5.40%    
Estimated fair value inputs, Prepayment speed 7.00% 6.50%    
Estimated fair value inputs, Annual per-loan cost of servicing | UsdPerLoan 68 69    
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 1 month 6 days 2 years 4 months 24 days    
Maximum [Member]        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Estimated fair value inputs, Option-adjusted spread 6.20%      
Estimated fair value inputs, Pricing spread   8.10%    
Estimated fair value inputs, Prepayment speed 21.50% 17.70%    
Estimated fair value inputs, Annual per-loan cost of servicing | UsdPerLoan 90 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) 7 years 10 months 24 days 8 years 10 months 24 days    
Weighted Average [Member]        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Estimated fair value inputs, Option-adjusted spread 3.60%      
Estimated fair value inputs, Pricing spread   5.40%    
Estimated fair value inputs, Prepayment speed 8.40% 6.70%    
Estimated fair value inputs, Annual per-loan cost of servicing | UsdPerLoan 68 69    
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) 7 years 8 months 12 days 8 years 7 months 6 days    
v3.25.4
Mortgage-Backed Securities - Summary of Investment in Mortgage Backed Securities Activity (Detail) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Mortgage Backed Securities [Line Items]      
Balance at beginning of year $ 4,063,706    
Changes in fair value included in income arising from:      
Balance at end of year 4,452,859 $ 4,063,706  
Mortgage Backed Securities [Member]      
Mortgage Backed Securities [Line Items]      
Balance at beginning of year 4,063,706 4,836,292 $ 4,462,601
Purchases 942,462 638,155 3,172,193
Sales (194,513) (1,071,692) (2,629,540)
Repayments (558,465) (417,279) (349,479)
Exchange of mortgage servicing spread for interest-only stripped mortgage-backed securities 0 130,295 103,547
Changes in fair value included in income arising from:      
Amortization and accrual of net purchase premiums and discounts 51,325 28,773 1,986
Valuation adjustments, net 148,344 (80,838) 74,984
Total changes in fair value included in income 199,669 (52,065) 76,970
Balance at end of year $ 4,452,859 $ 4,063,706 $ 4,836,292
v3.25.4
Mortgage-Backed Securities - Schedule of Mortgage Backed Securities Pledged to Secure Assets Sold (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Mortgage Backed Securities [Member]    
Mortgage Backed Securities [Line Items]    
Assets sold under agreements to repurchase $ 4,452,859 $ 4,063,706
v3.25.4
Mortgage-Backed Securities - Summary of Investments in Mortgage Backed Securities (Detail) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Mortgage Backed Securities [Line Items]    
Fair value $ 4,452,859 $ 4,063,706
Mortgage Backed Securities [Member]    
Mortgage Backed Securities [Line Items]    
Principal balance or notional amount 4,421,692 4,194,752
Purchase discounts, net (121,798) (169,422)
Cumulative valuation changes 80,463 (47,884)
Fair value 4,380,357 3,977,446
Interest-Only Stripped [Member]    
Mortgage Backed Securities [Line Items]    
Principal balance or notional amount 344,592 386,040
Fair value 72,502 86,260
Mortgage-Backed Securities Including Interest-Only Stripped Mortgage-Backed Securities [Member]    
Mortgage Backed Securities [Line Items]    
Fair value 4,452,859 4,063,706
Agency Fixed Rate Pass Through [Member] | Mortgage Backed Securities [Member]    
Mortgage Backed Securities [Line Items]    
Principal balance or notional amount 2,805,895 3,132,005
Purchase discounts, net (2,125) (901)
Cumulative valuation changes 46,677 (51,612)
Fair value 2,850,447 3,079,492
Floating Rate Collateralized Mortgage Obligations [Member] | Mortgage Backed Securities [Member]    
Mortgage Backed Securities [Line Items]    
Principal balance or notional amount 850,172  
Purchase discounts, net (1,249)  
Cumulative valuation changes 7,074  
Fair value 855,997  
Principal-only Stripped [Member] | Mortgage Backed Securities [Member]    
Mortgage Backed Securities [Line Items]    
Principal balance or notional amount 610,256 776,455
Purchase discounts, net (115,385) (160,960)
Cumulative valuation changes 26,258 (19,195)
Fair value 521,129 596,300
Subordinate Credit-Linked [Member] | Mortgage Backed Securities [Member]    
Mortgage Backed Securities [Line Items]    
Principal balance or notional amount   174,813
Purchase discounts, net   (4,292)
Cumulative valuation changes   25,951
Fair value   196,472
Senior Non-Agency [Member] | Mortgage Backed Securities [Member]    
Mortgage Backed Securities [Line Items]    
Principal balance or notional amount 155,369 111,479
Purchase discounts, net (3,039) (3,269)
Cumulative valuation changes 454 (3,028)
Fair value $ 152,784 $ 105,182
v3.25.4
Mortgage-Backed Securities - Summary of Investment in Mortgage Backed Securities (Parenthetical) (Detail)
12 Months Ended
Dec. 31, 2025
Minimum [Member]  
Mortgage Backed Securities [Line Items]  
Mortgage backed securities, maturity period 10 years
v3.25.4
Loans Held for Sale at Fair Value - Summary of Distribution of Company's Loans Held for Sale at Fair Value ( (Detail) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Loans held for sale at fair value $ 2,699,398 $ 2,116,318
Loans pledged to secure total 2,676,700 2,087,615
Loans Held 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 2,676,700 2,075,473
PennyMac Loan Services, LLC [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Loans held for sale at fair value   602,108
Held For Sale To Nonaffiliates [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Loans held for sale at fair value 2,699,398 1,514,210
Held for Sale to Affiliates [Member] | PennyMac Loan Services, LLC [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Loans held for sale at fair value 0 602,108
Mortgage Loans Held For Sale [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Loans pledged to secure mortgage loan participation purchase and sale agreements 0 12,142
Held for Sale to Nonaffiliates-GSE Eligible [Member] | Held For Sale To Nonaffiliates [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Loans held for sale at fair value [1] 2,232,706 1,311,754
Held for sale to PLS - GSE Eligible [Member] | Held for Sale to Affiliates [Member] | PennyMac Loan Services, LLC [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Loans held for sale at fair value 0 175,145
Held for Sale to PLS - Government-Insured or Guaranteed [Member] | Held for Sale to Affiliates [Member] | PennyMac Loan Services, LLC [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Loans held for sale at fair value 0 426,963
Jumbo [Member] | Held For Sale To Nonaffiliates [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Loans held for sale at fair value 433,027 194,485
Non-qualified [Member] | Held For Sale To Nonaffiliates [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Loans held for sale at fair value 30,084  
Home Equity Lines of Credit [Member] | Held For Sale To Nonaffiliates [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Loans held for sale at fair value 942 1,368
Repurchased Pursuant to Representations and Warranties [Member] | Held For Sale To Nonaffiliates [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Loans held for sale at fair value $ 2,639 $ 6,603
[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.
v3.25.4
Loans Held for Investment at Fair Value - Summary of Distribution of Company's Held for Investment (Detail) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Financing Receivable Recorded Investment [Line Items]    
Loans held for investment at fair value $ 8,532,644 $ 2,193,575
Asset-backed financings at fair value (1) [1] 8,530,939 2,191,709
Loans held for investment at fair value, pledged to creditors 8,530,939 2,191,869
Loans in Variable Interest Entities [Member]    
Financing Receivable Recorded Investment [Line Items]    
Loans held for investment at fair value 8,530,939 2,191,709
Distressed [Member]    
Financing Receivable Recorded Investment [Line Items]    
Loans held for investment at fair value 1,705 1,866
Loans Held for Investment Pledged to Secure [Member]    
Financing Receivable Recorded Investment [Line Items]    
Assets sold under agreements to repurchase 0 160
Non-owner occupied properties [Member]    
Financing Receivable Recorded Investment [Line Items]    
Loans held for investment at fair value 6,332,497 2,146,328
Owner occupied properties [Member]    
Financing Receivable Recorded Investment [Line Items]    
Loans held for investment at fair value 588,788 0
Fixed interest rate jumbo loans held in a VIE [Member]    
Financing Receivable Recorded Investment [Line Items]    
Loans held for investment at fair value $ 1,609,654 $ 45,381
[1] As discussed in Note 6Variable Interest EntitiesSubordinate and Senior Non-Agency Mortgage-Backed Securities, the Company holds a portion of the securities issued by the VIEs. At December 31, 2025 and December 31, 2024, $648.2 million and $130.8 million, respectively, of such retained securities were pledged to secure Assets sold under agreements to repurchase.
v3.25.4
Loans Held for Investment at Fair Value - Summary of Distribution of Company's Held for Investment (Parenthetical) (Detail) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Mortgage Loans At Fair Value [Abstract]    
Securities retained at fair value pledged to secure Assets sold under agreements to repurchase $ 648.2 $ 130.8
v3.25.4
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, 2025
Dec. 31, 2024
Derivative Instruments, Gain (Loss) [Line Items]    
Credit risk transfer strip liabilities $ 5,999 $ 4,060
Total derivative and credit risk transfer strip liabilities 6,932 7,351
Nonaffiliates [Member]    
Derivative Instruments, Gain (Loss) [Line Items]    
Derivative assets 49,696 56,840
Derivative liabilities 933 3,291
Total derivative and credit risk transfer strip liabilities 6,932 7,351
Pennymac Financial Services Inc [Member]    
Derivative Instruments, Gain (Loss) [Line Items]    
Derivative assets 6,247 0
Derivative liabilities $ 2,257 $ 0
v3.25.4
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, 2025
Dec. 31, 2024
Derivatives Fair Value [Line Items]    
Margin deposits placed with (received from) derivative counterparties included in derivative balances above, net $ 21,710,000 $ (31,497,000)
Derivative assets pledged to secure:    
Assets Sold Under Agreements to Repurchase and Notes payable secured by credit risk transfer and mortgag servicing assets 2,258,128,000 2,929,790,000
Derivative assets related to CRT Derivatives [Member]    
Derivative assets pledged to secure:    
Assets Sold Under Agreements to Repurchase and Notes payable secured by credit risk transfer and mortgag servicing assets 32,659,000 29,377,000
Penny Mac Financial Services Affiliated Entity [Member]    
Derivatives Fair Value [Line Items]    
Notional amount [1]   0
Total derivatives assets before netting 6,389,000 0
Derivative assets, Netting (142,000) 0
Total derivative assets after netting 6,247,000 0
Derivative assets pledged to secure:    
Total derivative liabilities 2,399,000 0
Derivative liabilities, Netting (142,000) 0
Total derivative liabilities after netting 2,257,000 0
Nonaffiliates [Member]    
Derivatives Fair Value [Line Items]    
Total derivatives assets before netting 44,551,000 96,251,000
Derivative assets, Netting 5,145,000 (39,411,000)
Total derivative assets after netting 49,696,000 56,840,000
Derivative assets pledged to secure:    
Total derivative liabilities 17,498,000 11,207,000
Derivative liabilities, Netting (16,565,000) (7,916,000)
Total derivative liabilities after netting 933,000 3,291,000
Nonaffiliates [Member] | CRT Derivatives [Member]    
Derivatives Fair Value [Line Items]    
Notional amount [1],[2] 455,682,000 4,961,644,000
Total derivatives assets before netting [2] 32,659,000 29,377,000
Derivative assets pledged to secure:    
Total derivative liabilities [2] 0 0
Forward Purchase Contracts [Member] | Penny Mac Financial Services Affiliated Entity [Member]    
Derivatives Fair Value [Line Items]    
Notional amount [1] 250,638,000 0
Total derivatives assets before netting 1,784,000 0
Derivative assets pledged to secure:    
Total derivative liabilities 142,000 0
Forward Purchase Contracts [Member] | Nonaffiliates [Member]    
Derivatives Fair Value [Line Items]    
Notional amount [1],[2] 3,703,628,000 1,154,515,000
Total derivatives assets before netting [2] 4,113,000 614,000
Derivative assets pledged to secure:    
Total derivative liabilities [2] 158,000 6,336,000
Forward Sale Contracts [Member] | Nonaffiliates [Member]    
Derivatives Fair Value [Line Items]    
Notional amount [1],[2] 7,933,760,000 7,080,982,000
Total derivatives assets before netting [2] 2,381,000 54,056,000
Derivative assets pledged to secure:    
Total derivative liabilities [2] 17,340,000 1,753,000
Interest Rate Lock Commitments [Member] | Penny Mac Financial Services Affiliated Entity [Member]    
Derivatives Fair Value [Line Items]    
Notional amount [1] 1,207,859,000 0
Total derivatives assets before netting 4,605,000 0
Derivative assets pledged to secure:    
Total derivative liabilities 2,257,000 0
Interest Rate Lock Commitments [Member] | Nonaffiliates [Member]    
Derivatives Fair Value [Line Items]    
Notional amount [1],[2] 0 1,166,566,000
Total derivatives assets before netting [2] 0 3,562,000
Derivative assets pledged to secure:    
Total derivative liabilities [2] 0 3,118,000
Call Options on Interest Rate Futures Purchase Contracts [Member] | Nonaffiliates [Member]    
Derivatives Fair Value [Line Items]    
Notional amount [1],[2] 3,250,000,000 500,000,000
Total derivatives assets before netting [2] 1,289,000 156,000
Derivative assets pledged to secure:    
Total derivative liabilities [2] 0 0
Put Options On Interest Rate Futures Purchase Contracts | Nonaffiliates [Member]    
Derivatives Fair Value [Line Items]    
Notional amount [1],[2] 2,500,000,000 1,690,000,000
Total derivatives assets before netting [2] 4,109,000 6,372,000
Derivative assets pledged to secure:    
Total derivative liabilities [2] 0 0
MBS Put Options [Member] | Nonaffiliates [Member]    
Derivatives Fair Value [Line Items]    
Notional amount [1],[2] 0 450,000,000
Total derivatives assets before netting [2] 0 2,114,000
Derivative assets pledged to secure:    
Total derivative liabilities [2] 0 0
Swap Futures [Member] | Nonaffiliates [Member]    
Derivatives Fair Value [Line Items]    
Notional amount [1],[2] 751,200,000 951,200,000
Total derivatives assets before netting [2] 0 0
Derivative assets pledged to secure:    
Total derivative liabilities [2] 0 0
Bond Futures [Member] | Nonaffiliates [Member]    
Derivatives Fair Value [Line Items]    
Notional amount [1],[2] 1,896,100,000 1,713,000,000
Total derivatives assets before netting [2]   0
Derivative assets pledged to secure:    
Total derivative liabilities [2] $ 0 $ 0
[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.
v3.25.4
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, 2025
Dec. 31, 2024
Offsetting Assets [Line Items]    
Total derivative assets after netting $ 55,943 $ 56,840
Financial instruments 0 0
Cash collateral received 0 0
Net amount 55,943 56,840
CRT Derivatives [Member]    
Offsetting Assets [Line Items]    
Total derivative assets after netting 32,659 29,377
Financial instruments 0 0
Cash collateral received 0 0
Net amount 32,659 29,377
Nonaffiliates [Member]    
Offsetting Assets [Line Items]    
Total derivative assets after netting 0 3,562
Financial instruments 0 0
Cash collateral received 0 0
Net amount 0 3,562
PennyMac Financial Services, Inc. [Member]    
Offsetting Assets [Line Items]    
Total derivative assets after netting 4,605 0
Financial instruments 0 0
Cash collateral received 0 0
Net amount 4,605 0
RJ O'Brien & Associates, LLC [Member]    
Offsetting Assets [Line Items]    
Total derivative assets after netting 5,398 6,528
Financial instruments 0 0
Cash collateral received 0 0
Net amount 5,398 6,528
Bank of America, N.A. [Member]    
Offsetting Assets [Line Items]    
Total derivative assets after netting 4,745 3,150
Financial instruments 0 0
Cash collateral received 0 0
Net amount 4,745 3,150
Morgan Stanley & Co. LLC [Member]    
Offsetting Assets [Line Items]    
Total derivative assets after netting 3,500 9,303
Financial instruments 0 0
Cash collateral received 0 0
Net amount 3,500 9,303
Pennymac Financial Services Inc [Member]    
Offsetting Assets [Line Items]    
Total derivative assets after netting 1,642 0
Financial instruments 0 0
Cash collateral received 0 0
Net amount 1,642 0
Goldman Sachs & Co. LLC [Member]    
Offsetting Assets [Line Items]    
Total derivative assets after netting 950 251
Financial instruments 0 0
Cash collateral received 0 0
Net amount 950 251
Wells Fargo Securities L L C    
Offsetting Assets [Line Items]    
Total derivative assets after netting 603 895
Financial instruments 0 0
Cash collateral received 0 0
Net amount 603 895
Mizuho Financial Group [Member]    
Offsetting Assets [Line Items]    
Total derivative assets after netting 442 0
Financial instruments 0 0
Cash collateral received 0 0
Net amount 442 0
B N P Paribas [Member]    
Offsetting Assets [Line Items]    
Total derivative assets after netting 236 0
Financial instruments 0 0
Cash collateral received 0 0
Net amount 236 0
Citigroup Global Markets Inc. [Member]    
Offsetting Assets [Line Items]    
Total derivative assets after netting 217 712
Financial instruments 0 0
Cash collateral received 0 0
Net amount 217 712
Ellington Management [Member]    
Offsetting Assets [Line Items]    
Total derivative assets after netting 198 0
Financial instruments 0 0
Cash collateral received 0 0
Net amount 198 0
Metro Life Ins Co [Member]    
Offsetting Assets [Line Items]    
Total derivative assets after netting 151 0
Financial instruments 0 0
Cash collateral received 0 0
Net amount 151 0
Nomura Holdings America Inc [Member]    
Offsetting Assets [Line Items]    
Total derivative assets after netting 137 0
Financial instruments 0 0
Cash collateral received 0 0
Net amount 137 0
Barclays Capital Inc [Member]    
Offsetting Assets [Line Items]    
Total derivative assets after netting 103 12
Financial instruments 0 0
Cash collateral received 0 0
Net amount 103 12
J.P. Morgan Securities LLC [Member]    
Offsetting Assets [Line Items]    
Total derivative assets after netting 102 1,237
Financial instruments 0 0
Cash collateral received 0 0
Net amount 102 1,237
Other [Member]    
Offsetting Assets [Line Items]    
Total derivative assets after netting 255 1,813
Financial instruments 0 0
Cash collateral received 0 0
Net amount $ 255 $ 1,813
v3.25.4
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, 2025
Dec. 31, 2024
Offsetting Liabilities [Line Items]    
Net amount of liabilities presented in the consolidated balance sheet $ 8,026,346 $ 6,512,706
Gross amounts not offset in the consolidated balance sheet, Financial instruments (8,023,156) (6,509,415)
Gross amounts not offset in the consolidated balance sheet, Cash collateral pledged 0 0
Net amount 3,190 3,291
Security Sold Under Agreements to Repurchase [Member] | Nonaffiliates [Member]    
Offsetting Liabilities [Line Items]    
Net amount of liabilities presented in the consolidated balance sheet 0 3,118
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 0 3,118
PennyMac Financial Services, Inc. [Member] | Security Sold Under Agreements to Repurchase [Member]    
Offsetting Liabilities [Line Items]    
Net amount of liabilities presented in the consolidated balance sheet 2,257 0
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 2,257 0
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 1,536,038 1,695,007
Gross amounts not offset in the consolidated balance sheet, Financial instruments (1,536,038) (1,695,007)
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 1,216,779 609,780
Gross amounts not offset in the consolidated balance sheet, Financial instruments (1,216,779) (609,780)
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 1,074,334 787,883
Gross amounts not offset in the consolidated balance sheet, Financial instruments (1,074,334) (787,883)
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 952,951 362,196
Gross amounts not offset in the consolidated balance sheet, Financial instruments (952,933) (362,196)
Gross amounts not offset in the consolidated balance sheet, Cash collateral pledged 0 0
Net amount 18 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 782,547 670,605
Gross amounts not offset in the consolidated balance sheet, Financial instruments (782,547) (670,605)
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 438,781 353,765
Gross amounts not offset in the consolidated balance sheet, Financial instruments (438,781) (353,765)
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 431,016 545,678
Gross amounts not offset in the consolidated balance sheet, Financial instruments (431,016) (545,678)
Gross amounts not offset in the consolidated balance sheet, Cash collateral pledged 0 0
Net amount 0 0
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 397,162 431,201
Gross amounts not offset in the consolidated balance sheet, Financial instruments (397,162) (431,201)
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 319,500 280,561
Gross amounts not offset in the consolidated balance sheet, Financial instruments (319,500) (280,561)
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 231,308 36
Gross amounts not offset in the consolidated balance sheet, Financial instruments (231,308) 0
Gross amounts not offset in the consolidated balance sheet, Cash collateral pledged 0 0
Net amount 0 36
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 195,268 230,033
Gross amounts not offset in the consolidated balance sheet, Financial instruments (195,268) (230,033)
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 151,274 311,997
Gross amounts not offset in the consolidated balance sheet, Financial instruments (151,274) (311,997)
Gross amounts not offset in the consolidated balance sheet, Cash collateral pledged 0 0
Net amount 0 0
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 160,388 72,859
Gross amounts not offset in the consolidated balance sheet, Financial instruments (160,324) (72,859)
Gross amounts not offset in the consolidated balance sheet, Cash collateral pledged 0 0
Net amount 64 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 81,701 98,196
Gross amounts not offset in the consolidated balance sheet, Financial instruments (81,701) (98,121)
Gross amounts not offset in the consolidated balance sheet, Cash collateral pledged 0 0
Net amount 0 75
BNP Paribas [Member] | Security Sold Under Agreements to Repurchase [Member]    
Offsetting Liabilities [Line Items]    
Net amount of liabilities presented in the consolidated balance sheet 54,191 59,729
Gross amounts not offset in the consolidated balance sheet, Financial instruments (54,191) (59,729)
Gross amounts not offset in the consolidated balance sheet, Cash collateral pledged 0 0
Net amount 0 0
Other [Member] | Security Sold Under Agreements to Repurchase [Member]    
Offsetting Liabilities [Line Items]    
Net amount of liabilities presented in the consolidated balance sheet 851 62
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 $ 851 $ 62
v3.25.4
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, 2025
Dec. 31, 2024
Dec. 31, 2023
Interest Rate Lock Commitments [Member]      
Derivative Instruments Gain Loss [Line Items]      
Net gains on derivative financial instruments used as economic hedges $ 1,904 $ (7,089) $ 8,010
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 held for sale [Member]      
Derivative Instruments Gain Loss [Line Items]      
Net gains on derivative financial instruments used as economic hedges $ (90,108) $ 19,896 $ 4,636
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 on derivative financial instruments used as economic hedges $ (172,931) $ (226,608) $ (92,775)
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 on derivative financial instruments used as economic hedges $ 0 $ 20,098 $ (83,201)
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 on derivative financial instruments used as economic hedges $ 14,336 $ 27,020 $ 56,544
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
v3.25.4
Mortgage Servicing Rights - Summary of MSRs Carried at Fair Value (Detail) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Summary Of Mortgage Servicing Rights [Line Items]      
Balance at beginning of year $ 3,867,394 $ 3,919,107 $ 4,012,737
Servicing Asset At Fair Value Additions From Loan Sales 190,141 219,001 292,527
Purchases 0 29,429 16,258
Transfers to Agency of mortgage servicing rights relating to delinquent loans 876 561 (472)
Exchange of mortgage servicing spread for interest-only stripped mortgage-backed securities and interest receivable 0 (130,295) (105,096)
Due to changes in inputs used in valuation model [1] (33,846) 217,182 87,811
Other changes in fair value [2] (379,863) (387,591) (384,658)
Change in fair value, Total (413,709) (170,409) (296,847)
Balance at end of year 3,644,702 3,867,394 $ 3,919,107
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 $ 3,582,211 $ 3,807,065  
[1] Primarily reflects changes in prepayment speed, pricing spread or OAS, servicing cost, and UPB of underlying loan inputs.
[2] Represents changes due to realization of expected cash flows.
v3.25.4
Mortgage Servicing Rights - Summary of Net Loan Servicing Fees Relating to MSRs (Detail) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Transfers and Servicing [Abstract]      
Contractually-specified servicing fees $ 608,025 $ 644,642 $ 659,438
Late charges 4,244 4,056 3,352
Other 13,186 10,666 13,656
Mortgage loan other servicing fees 17,430 14,722 17,008
Net mortgage loan servicing fees 625,455 659,364 676,446
Average UPB of underlying loans $ 221,436,947 $ 228,705,758 $ 231,203,032
v3.25.4
Other Assets - Summary of Other Assets (Detail) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Other Assets [Line Items]    
Margin deposits $ 221,310 $ 346,241
Interest receivable 72,684 38,661
Servicing fees receivable 9,586 10,820
Correspondent lending receivables 7,083 3,930
Other receivables 25,458 16,706
Real estate acquired in settlement of loans 1,421 2,464
Other 36,042 19,399
Other Assets 373,584 438,221
Real Estate Acquired in Settlement of Loans Pledge to Secure [Member]    
Other Assets [Line Items]    
Assets sold under agreements to repurchase $ 0 $ 527
v3.25.4
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, 2025
Dec. 31, 2024
Dec. 31, 2023
Assets Sold under Agreements to Repurchase [Line Items]      
Weighted average interest rate 5.10% 5.94% 5.91%
Average balance $ 6,776,255,000 $ 5,478,037,000 $ 6,306,627,000
Total interest expense 352,660,000 331,800,000 378,367,000
Maximum daily amount outstanding 9,009,673,000 7,865,435,000 $ 9,460,676,000
Assets Sold Under Agreements To Repurchase 8,023,156,000 6,509,415,000  
Assets sold under agreements to repurchase, At year end $ 8,018,601,000 $ 6,500,938,000  
Weighted average interest rate 4.71% 5.37%  
Available borrowing capacity, Committed $ 595,085,000 $ 565,488,000  
Available borrowing capacity, Uncommitted 5,032,598,000 4,559,239,000  
Available borrowing capacity 5,627,683,000 5,124,727,000  
Margin deposits placed with counterparties included in Other assets, net 174,598,000 296,922,000  
Assets Sold Under Agreements to Repurchase [Member]      
Assets Sold under Agreements to Repurchase [Line Items]      
Unamortized debt issuance costs (4,555,000) (8,477,000)  
Mortgage Backed Securities at Fair Value [Member]      
Assets Sold under Agreements to Repurchase [Line Items]      
Assets Sold under Agreements to Repurchase, Market Value 4,452,859,000 4,063,706,000  
Loans Held for Sale at Fair Value [Member]      
Assets Sold under Agreements to Repurchase [Line Items]      
Assets Sold under Agreements to Repurchase, Market Value 2,676,700,000 2,075,473,000  
Loans Held for Investment at Fair Value [Member] | Securities Retained In Asset Backed Financings [Member]      
Assets Sold under Agreements to Repurchase [Line Items]      
Assets Sold under Agreements to Repurchase, Market Value 648,159,000 130,839,000  
Loans Held for Investment at Fair Value [Member] | Distressed loans [Member]      
Assets Sold under Agreements to Repurchase [Line Items]      
Assets Sold under Agreements to Repurchase, Market Value 0 160,000  
Servicing advances [Member]      
Assets Sold under Agreements to Repurchase [Line Items]      
Assets Sold under Agreements to Repurchase, Market Value 44,653,000 50,333,000  
Real estate acquired in settlement of loans [Member]      
Assets Sold under Agreements to Repurchase [Line Items]      
Assets Sold under Agreements to Repurchase, Market Value 0 527,000  
Mortgage Service Rights at Fair Value [Member]      
Assets Sold under Agreements to Repurchase [Line Items]      
Assets Sold under Agreements to Repurchase, Market Value 1,765,572,000 1,906,043,000  
Derivative Assets [Member]      
Assets Sold under Agreements to Repurchase [Line Items]      
Assets Sold under Agreements to Repurchase, Market Value 12,622,000 0  
Deposits Securing Credit Risk Transfer Arrangements [Member]      
Assets Sold under Agreements to Repurchase [Line Items]      
Assets Sold under Agreements to Repurchase, Market Value $ 176,694,000 $ 199,965,000  
v3.25.4
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, 2025
Dec. 31, 2024
Dec. 31, 2023
Assets Sold Under Agreements to Repurchase [Member]      
Assets Sold under Agreements to Repurchase [Line Items]      
Amortization of debt issuance costs and non utilization fees $ 7.1 $ 6.4 $ 5.5
v3.25.4
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, 2025
USD ($)
Assets Sold under Agreements to Repurchase [Line Items]  
Maturity of repurchase agreements $ 8,023,156
Weighted average maturity (in months) 2 months 9 days
Within 30 days [Member]  
Assets Sold under Agreements to Repurchase [Line Items]  
Maturity of repurchase agreements $ 2,360,165
Over 30 to 90 days [Member]  
Assets Sold under Agreements to Repurchase [Line Items]  
Maturity of repurchase agreements 5,207,433
Over 90 days to 180 days [Member]  
Assets Sold under Agreements to Repurchase [Line Items]  
Maturity of repurchase agreements 0
Over 180 Days to 1 Year [Member]  
Assets Sold under Agreements to Repurchase [Line Items]  
Maturity of repurchase agreements 39,539
Over 1 year to 2 years [Member]  
Assets Sold under Agreements to Repurchase [Line Items]  
Maturity of repurchase agreements $ 416,019
v3.25.4
Assets Sold Under Agreements to Repurchase - Summary of Assets Sold under Agreements to Repurchase by Counterparty (Detail)
$ in Thousands
12 Months Ended
Dec. 31, 2025
USD ($)
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]  
Amounts at risk $ 466,207
Weighted-average maturity, Advances Feb. 15, 2026
Weighted-average maturity, Facility Dec. 10, 2027
Bank of America, N.A. [Member]  
Assets Sold under Agreements to Repurchase [Line Items]  
Amounts at risk $ 25,023
Weighted average maturity Feb. 08, 2026
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]  
Amounts at risk $ 63,914
Weighted-average maturity, Advances Jan. 05, 2026
Weighted-average maturity, Facility Feb. 17, 2027
Santander US Capital [Member]  
Assets Sold under Agreements to Repurchase [Line Items]  
Amounts at risk $ 39,385
Weighted average maturity Jan. 26, 2026
Santander US Capital [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]  
Amounts at risk $ 31,295
Weighted-average maturity, Advances Apr. 10, 2026
Weighted-average maturity, Facility Apr. 10, 2026
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]  
Amounts at risk $ 48,663
Weighted-average maturity, Advances Feb. 21, 2026
Weighted-average maturity, Facility Sep. 26, 2027
Morgan Stanley & Co. LLC [Member] | Credit Risk Transfer Agreements [Member]  
Assets Sold under Agreements to Repurchase [Line Items]  
Amounts at risk $ 17,502
Weighted average maturity Jan. 28, 2026
Citibank, N.A. [Member]  
Assets Sold under Agreements to Repurchase [Line Items]  
Amounts at risk $ 7,309
Weighted average maturity Jan. 20, 2026
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]  
Amounts at risk $ 57,419
Weighted-average maturity, Advances Feb. 22, 2026
Weighted-average maturity, Facility Aug. 07, 2026
Nomura Holdings America 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]  
Amounts at risk $ 61,526
Weighted-average maturity, Advances Jan. 05, 2026
Weighted-average maturity, Facility Jan. 05, 2026
Goldman Sachs & Co. LLC [Member]  
Assets Sold under Agreements to Repurchase [Line Items]  
Amounts at risk $ 11,540
Weighted average maturity Jan. 15, 2026
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]  
Amounts at risk $ 44,766
Weighted-average maturity, Advances Mar. 06, 2026
Weighted-average maturity, Facility May 07, 2026
JPMorgan Chase & Co. [Member]  
Assets Sold under Agreements to Repurchase [Line Items]  
Amounts at risk $ 50,409
Weighted average maturity Jan. 31, 2026
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]  
Amounts at risk $ 5,151
Weighted-average maturity, Advances Feb. 16, 2026
Weighted-average maturity, Facility Jun. 28, 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]  
Amounts at risk $ 26,024
Weighted-average maturity, Advances Mar. 16, 2026
Weighted-average maturity, Facility Oct. 23, 2026
RBC Capital Markets L.P. [Member] | Credit Risk Transfer Agreements [Member]  
Assets Sold under Agreements to Repurchase [Line Items]  
Amounts at risk $ 25,105
Weighted average maturity Mar. 25, 2026
Wells Fargo Securities L L C [Member]  
Assets Sold under Agreements to Repurchase [Line Items]  
Amounts at risk $ 24,014
Weighted average maturity Jan. 31, 2026
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]  
Amounts at risk $ 8,740
Weighted-average maturity, Advances Feb. 15, 2026
Weighted-average maturity, Facility Mar. 19, 2027
Barclays Capital Inc. [Member]  
Assets Sold under Agreements to Repurchase [Line Items]  
Amounts at risk $ 12,815
Weighted average maturity Jan. 22, 2026
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]  
Amounts at risk $ 7,407
Weighted-average maturity, Advances Mar. 04, 2026
Weighted-average maturity, Facility Mar. 06, 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]  
Amounts at risk $ 5,207
Weighted-average maturity, Advances Feb. 12, 2026
Weighted-average maturity, Facility Jun. 17, 2026
Bank of Montreal [Member]  
Assets Sold under Agreements to Repurchase [Line Items]  
Amounts at risk $ 9,886
Weighted average maturity Feb. 07, 2026
Daiwa Capital Markets America Inc. [Member]  
Assets Sold under Agreements to Repurchase [Line Items]  
Amounts at risk $ 5,374
Weighted average maturity Feb. 05, 2026
Mizuho Financial Group [Member]  
Assets Sold under Agreements to Repurchase [Line Items]  
Amounts at risk $ 4,168
Weighted average maturity Jan. 24, 2026
v3.25.4
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, 2025
Dec. 31, 2024
Dec. 31, 2023
At period end:      
Mortgage loan participation purchase and sale agreements $ 0 $ 11,593  
Mortgage Loan Participation Purchase and Sale Agreement [Member]      
Mortgage Loan Participation Purchase And Sale Agreement [Line Items]      
Weighted average interest rate 5.71% 6.54% 6.50%
Average balance $ 4,937 $ 17,852 $ 19,079
Total interest expense 407 1,292 1,365
Maximum daily amount outstanding $ 49,266 78,068 $ 90,565
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 held for sale pledged to secure   $ 12,142  
v3.25.4
Mortgage Loan Participation Purchase and Sale Agreement - Summary of Mortgage Loan Participation Purchase and Sale Agreement (Parenthetical) (Detail) - USD ($)
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Mortgage Loan Participation Purchase And Sale Agreement [Line Items]      
Amortization of premiums and debt issuance costs $ 20,167,000 $ 23,095,000 $ 15,141,000
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
v3.25.4
Long-Term Debt - Summary of Term Note Issued to Qualified Institutional Buyers (Detail)
$ in Thousands
12 Months Ended
Dec. 31, 2025
USD ($)
Secured Debt | CRT Arrangement Financing [Member]  
Debt Instrument [Line Items]  
Unpaid principal balance $ 608,903
Secured Term Notes | Fannie Mae MSR Financing  
Debt Instrument [Line Items]  
Unpaid principal balance 725,000
August 28, 2024 [Member] | Secured Debt | CRT Arrangement Financing [Member]  
Debt Instrument [Line Items]  
Notes Issued 158,500
Unpaid principal balance $ 136,771
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 $ 211,543
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 $ 260,589
Interest rate spread (Annual) 3.50%
Maturity date, Stated Mar. 01, 2027
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
v3.25.4
Long-Term Debt - Additional Information (Detail)
12 Months Ended
Dec. 31, 2025
USD ($)
Senior Notes [Member]  
Debt Instrument [Line Items]  
Percentage of interest on debt 100.00%
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
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
v3.25.4
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, 2025
Dec. 31, 2024
Dec. 31, 2023
Carrying value:      
Balance $ 2,258,128 $ 2,929,790  
Freddie Mac Mortgage Servicing Rights Financing [Member]      
Carrying value:      
Balance 2,258,128 2,929,790  
Carrying value of notes 2,261,846 2,938,815  
Assets securing notes payable:      
MSRs 3,582,211 3,807,065  
Mortgage servicing rights at fair value 3,582,211 3,807,065  
Servicing advances 33,777 39,063  
Deposits securing CRT arrangements 832,640 910,743  
Notes Payable [Member] | Freddie Mac Mortgage Servicing Rights Financing [Member]      
Carrying value:      
Unamortized debt issuance costs $ (3,718) $ (9,025)  
Weighted average interest rate 6.91% 7.60%  
Assets securing notes payable:      
Derivative assets $ 20,037 $ 29,377  
Notes Payable [Member] | Freddie Mac MSR Financing      
Short Term Debt [Line Items]      
Average balance $ 2,598,600 $ 2,883,379 $ 2,969,174
Weighted-average interest rate 7.59% 8.67% 8.42%
Total interest expense $ 205,517 $ 261,008 $ 257,601
Credit Risk Transfer Arrangement Financing [Member] | Freddie Mac Mortgage Servicing Rights Financing [Member]      
Carrying value:      
Carrying value of notes 608,903 710,329  
Freddie Mac Credit Agreements [Member] | Fannie Mae Mortgage Servicing Rights Financing [Member]      
Carrying value:      
Carrying value of notes 725,000 1,075,000  
Freddie Mac Credit Agreements [Member] | Freddie Mac Mortgage Servicing Rights And Servicing Advance Receivables Financing [Member]      
Carrying value:      
Carrying value of notes $ 927,943 $ 1,153,486  
v3.25.4
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, 2025
Dec. 31, 2024
Dec. 31, 2023
Short Term Debt [Line Items]      
Amortization of premiums and debt issuance costs $ 20,167 $ 23,095 $ 15,141
Notes Payable [Member] | Freddie Mac MSR Financing      
Short Term Debt [Line Items]      
Amortization of premiums and debt issuance costs $ 8,400 $ 11,000 $ 7,500
v3.25.4
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, 2025
USD ($)
Exchange Rate
Debt Instrument [Line Items]  
Unpaid principal balance $ 711,500
May 24, 2024 [Member]  
Debt Instrument [Line Items]  
Unpaid principal balance $ 366,500
Interest rate spread (Annual) 8.50%
Exchange rates | Exchange 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%
Exchange rates | Exchange Rate 46.1063
Maturity date, Stated Mar. 15, 2026
v3.25.4
Long-Term Debt - Summary of Financial Information Relating to Exchangeable Senior Notes (Parenthetical) (Detail)
$ in Thousands
12 Months Ended
Dec. 31, 2025
USD ($)
June 4, 2024 [Member]  
Debt Instrument [Line Items]  
Unpaid principal balance $ 16,500
December 15, 2025 [Member]  
Debt Instrument [Line Items]  
Unpaid principal balance 75,000
December 22, 2025 [Member]  
Debt Instrument [Line Items]  
Unpaid principal balance 75,000
Exchangeable Senior Notes [Member]  
Debt Instrument [Line Items]  
Principal amount $ 1,000
v3.25.4
Long-Term Debt - Summary of Financial Information Relating to Unsecured Senior Notes (Detail) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2031
Dec. 31, 2030
Dec. 31, 2029
Dec. 31, 2028
Dec. 31, 2027
Dec. 31, 2026
Carrying value:                  
Unpaid principal balance $ 1,042,500 $ 615,000              
Exchangeable senior notes 1,028,300 605,860              
Convertible Debt [Member]                  
Carrying value:                  
Unamortized debt issuance costs (14,200) (9,140)              
Convertible Debt [Member] | Nonaffiliates [Member]                  
Short Term Debt [Line Items]                  
Average balance $ 832,644 $ 704,279 $ 561,877            
Weighted average interest rate 7.37% 6.24% 5.65%            
Interest expense $ 66,071 $ 48,000 $ 34,969            
Exchangeable Senior Notes [Member]                  
Carrying value:                  
Unpaid principal balance 711,500 561,500   $ 0 $ 277,500 $ 366,500 $ 53,500 $ 0 $ 345,000
Senior Notes [Member]                  
Carrying value:                  
Unpaid principal balance $ 331,000 $ 53,500              
v3.25.4
Long-Term Debt - Summary of Financial Information Relating to Unsecured Senior Notes (Parenthetical) (Detail) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Exchangeable Notes [Member]      
Short Term Debt [Line Items]      
Conversion options $ 4.7 $ 4.1 $ 3.2
v3.25.4
Long-Term Debt - Summary of Financial Information Relating to Senior Notes (Detail)
$ in Thousands
12 Months Ended
Dec. 31, 2025
USD ($)
Senior Notes [Member]  
Debt Instrument [Line Items]  
Unpaid principal balance $ 331,000
June 2025 [Member] | Senior Notes [Member]  
Debt Instrument [Line Items]  
Unpaid principal balance $ 105,000
Interest rate spread (Annual) 9.00%
Redemption date Jun. 15, 2027
Maturity date, Stated Jun. 15, 2030
February 2025 [Member] | Senior Notes [Member]  
Debt Instrument [Line Items]  
Unpaid principal balance $ 172,500
Interest rate spread (Annual) 9.00%
Redemption date Feb. 15, 2027
Maturity date, Stated Feb. 15, 2030
September 2023 [Member] | 2028 Senior Notes [Member]  
Debt Instrument [Line Items]  
Unpaid principal balance $ 53,500
Interest rate spread (Annual) 8.50%
Redemption date Sep. 30, 2025
Maturity date, Stated Sep. 30, 2028
v3.25.4
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, 2025
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2031
Dec. 31, 2030
Dec. 31, 2029
Dec. 31, 2028
Dec. 31, 2027
Dec. 31, 2026
Short Term Debt [Line Items]                  
Asset-backed financing of variable interest entities at fair value $ 7,789,303 $ 2,040,375              
Unpaid principal balance 7,763,364     $ 7,763,364 $ 0 $ 0 $ 0 $ 0 $ 0
Variable Interest Entities [Member]                  
Short Term Debt [Line Items]                  
Asset-backed financing of variable interest entities at fair value 7,789,303 2,040,375              
Asset-backed Securities | Variable Interest Entities [Member]                  
Short Term Debt [Line Items]                  
Asset-backed financing of variable interest entities at fair value 7,789,303 2,040,375              
Unpaid principal balance 7,763,364 2,269,742              
Asset-backed Securities | Variable Interest Entities [Member] | Asset Backed Secured Financing Liability Fair Value                  
Short Term Debt [Line Items]                  
Average balance $ 4,456,128 $ 1,612,065 $ 1,354,803            
Weighted average interest rate 5.34% 3.23% 3.73%            
Total interest expense $ 226,918 $ 55,763 $ 49,988            
Weighted average interest rate 6.03% 3.22%              
v3.25.4
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, 2025
Dec. 31, 2024
Dec. 31, 2023
Debt Instrument [Line Items]      
(Amortization) accrual of debt issuance costs (premiums) $ 20,167,000 $ 23,095,000 $ 15,141,000
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) $ (11,000,000) $ 3,700,000 $ (496,000)
v3.25.4
Long-Term Debt - Schedule of Contractual Maturities on Long Term Debt Obligations (Detail) - USD ($)
$ in Thousands
Dec. 31, 2031
Dec. 31, 2030
Dec. 31, 2029
Dec. 31, 2028
Dec. 31, 2027
Dec. 31, 2026
Dec. 31, 2025
Dec. 31, 2024
Debt Instrument [Line Items]                
Notes payable secured by credit risk transfer and mortgage servicing assets $ 0 $ 0 $ 0 $ 506,771 $ 827,132 $ 927,943 $ 2,261,846  
Unsecured senior notes             1,042,500 $ 615,000
Interest-only security payable at fair value 37,650 0 0 0 0 0 37,650 34,222
Asset-backed financings at fair value 7,763,364 0 0 0 0 0 7,763,364  
Exchangeable Senior Notes [Member]                
Debt Instrument [Line Items]                
Unsecured senior notes 0 277,500 366,500 53,500 0 345,000 711,500 $ 561,500
Total $ 7,801,014 $ 277,500 $ 366,500 $ 560,271 $ 827,132 $ 1,272,943 $ 11,105,360  
v3.25.4
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, 2025
Dec. 31, 2024
Dec. 31, 2023
Mortgage Banking [Abstract]      
Balance, beginning of year $ 6,886 $ 26,143 $ 39,471
Provision for losses:      
Pursuant to loan sales 1,070 1,246 2,449
Reduction in liability due to change in estimate (2,193) (20,269) (15,228)
Losses incurred (479) (234) (549)
Balance, end of year 5,284 6,886 26,143
UPB of loans subject to representations and warranties at end of year $ 214,182,746 $ 222,063,618 $ 227,456,712
v3.25.4
Commitments and Contingencies - Additional Information (Detail)
Dec. 31, 2025
USD ($)
Commitments and Contingencies Disclosure [Abstract]  
Loss contingency accrual $ 0
v3.25.4
Commitments and Contingencies - Company's Outstanding Contractual Commitments (Detail)
$ in Thousands
Dec. 31, 2025
USD ($)
Commitments to purchase mortgage loans:  
Commitments to purchase loans held for sale from PLS $ 1,207,859
v3.25.4
Shareholders' Equity - Summary of Preferred Shares of Beneficial Interest (Detail) - USD ($)
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
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
v3.25.4
Shareholders' Equity - Summary of Preferred Shares of Beneficial Interest (Parenthetical) (Detail) - $ / shares
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
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  
v3.25.4
Shareholders' Equity - Additional Information (Detail) - USD ($)
12 Months Ended
Dec. 31, 2025
Jun. 14, 2024
Schedule Of Capitalization Equity [Line Items]    
Common stock shares repurchase authorized amount before transaction fees $ 500,000,000  
Available amount for share repurchases $ 73,400,000  
Equity Distribution Agreement [Member]    
Schedule Of Capitalization Equity [Line Items]    
Maximum aggregate offering price   $ 200,000,000
8.125% Series A, 8.00% Series B, 6.75% Series C Cumulative Redeemable Preferred Stock [Member]    
Schedule Of Capitalization Equity [Line Items]    
Preferred stock redemption price per share $ 25  
Preferred stock redemption share 0  
v3.25.4
Shareholders' Equity - Summary of Common Share Repurchase Activity (Detail) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Equity [Abstract]    
Common shares repurchased 0 0
Cumulative cost of shares repurchased $ 427.2  
v3.25.4
Shareholders' Equity - Summary of Common Share Repurchase Activity (Parenthetical) (Details)
12 Months Ended
Dec. 31, 2025
USD ($)
Common Stock [Member] | Commission Amount  
Schedule Of Capitalization Equity [Line Items]  
Transaction fees $ 582,000
v3.25.4
Net Gains on Investments and Financings - Summary of Net Gains on Investments and Financings (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Schedule Of Gain Loss On Investments Including Marketable Securities And Investments Held At Cost Income Statement Reported Amounts Summary [Line Items]      
Mortgage-backed securities $ 148,344 $ (80,838) $ 74,984
Loans held for investment 112,838 15,516 17,439
CRT arrangements 48,370 113,670 182,555
Asset-backed financings (96,439) (7,396) (13,678)
Hedging derivatives 0 20,098 (83,201)
Net gains on investments and financings $ 213,113 $ 61,050 $ 178,099
v3.25.4
Net Gains on Loans Held for Sale - Summary of Net Gains on Mortgage Loans Held for Sale (Detail) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Non-cash gains:      
Receipt of MSRs in mortgage loan sale transactions $ (190,141) $ (219,001) $ (292,527)
Provision for losses relating to representations and warranties provided in loan sales:      
Pursuant to loan sales (1,070) (1,246) (2,449)
Changes in fair value of loans and derivatives      
Net cash of gain on mortgage loans held for sale 112,838 15,516 17,439
Net gains on loans held for sale 52,194 73,124 39,857
PennyMac Financial Services, Inc. [Member]      
Changes in fair value of loans and derivatives      
Net gains on loans held for sale 5,164 8,069 7,162
Nonaffiliates [Member]      
Cash losses:      
Sales of loans (43,149) (198,613) (278,128)
Hedging activities (119,478) (45,445) 62,081
Cash gain, net of effects of cash hedging, on sale of mortgage loans held for sale 18,393 71,089 (56,564)
Non-cash gains:      
Receipt of MSRs in mortgage loan sale transactions 190,141 219,001 292,527
Provision for losses relating to representations and warranties provided in loan sales:      
Pursuant to loan sales (1,070) (1,246) (2,449)
Reduction of liability due to change in estimate 2,193 20,269 15,228
Provision for losses relating to representations and warranties 1,123 19,023 12,779
Changes in fair value of loans and derivatives      
Interest rate lock commitments 1,904 (7,089) 8,010
Loans (12,881) 12,837 (7,129)
Hedging derivatives 29,370 65,341 (57,445)
Total non cash portion of gain on mortgage loans held for sale (162,627) (244,058) (216,047)
Net cash of gain on mortgage loans held for sale 209,657 309,113 248,742
Net gains on loans held for sale $ 47,030 $ 65,055 $ 32,695
v3.25.4
Net Interest Expense - Summary of Net Interest Expense (Detail) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Interest income:      
Cash and short-term investments $ 22,008 $ 29,323 $ 25,046
Mortgage-backed securities 247,783 237,758 248,713
Loans held for sale 141,707 83,326 93,988
Loans held for investment 242,721 58,715 56,874
Deposits securing CRT arrangements 44,269 59,304 62,713
Placement fees relating to custodial funds 148,890 163,891 149,484
Other 3,534 2,946 3,089
Interest income 850,912 635,263 639,907
Interest expense:      
Assets sold under agreements to repurchase 352,660 331,800 378,367
Mortgage loan participation purchase and sale agreements 407 1,292 1,365
Notes payable secured by credit risk transfer and mortgage servicing assets 205,517 261,008 257,601
Unsecured senior notes 66,071 48,000 34,969
Asset-backed financings 226,918 55,763 49,988
Interest shortfall on repayments of loans serviced for Agency securitizations 10,303 7,144 5,477
Interest on loan impound deposits 6,946 7,099 6,353
Other 1,572 2,553 1,848
Interest expense, total 870,394 714,659 735,968
Net interest expense $ (19,482) $ (79,396) $ (96,061)
v3.25.4
Share-Based Compensation - Additional Information (Detail) - Restricted Share Units [Member]
12 Months Ended
Dec. 31, 2025
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
v3.25.4
Share-Based Compensation - Summary of Share-Based Compensation Activity (Detail) - USD ($)
shares in Thousands, $ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]      
Total share units granted 367 322 338
Total grant date value of share units $ 5,180 $ 4,612 $ 4,300
Total share units vested 235 367 188
Total share units forfeiture 0 74 6
Compensation expense relating to share-based grants $ 3,865 $ 3,479 $ 5,205
Restricted Shares Units [Member]      
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]      
Total share units granted 199 182 172
Total grant date value of share units $ 2,815 $ 2,605 $ 2,212
Total share units vested 144 164 140
Total share units forfeiture 0 33 6
Performance Shares Units [Member]      
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]      
Total share units granted 168 140 166
Total grant date value of share units $ 2,365 $ 2,007 $ 2,088
Total share units vested 91 203 48
Total share units forfeiture 0 41 0
v3.25.4
Share-Based Compensation - Summary of Share-Based Compensation Activity (Parenthetical) (Detail) - Performance Shares Units [Member]
12 Months Ended
Dec. 31, 2025
shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]  
Share vested due to exceeding performance goal 103,081
Vesting percentage 89.00%
v3.25.4
Share-Based Compensation - Summary of Restricted Share Units and Performance Share Units Expected to Vest (Detail)
shares in Thousands
12 Months Ended
Dec. 31, 2025
$ / shares
shares
Restricted Share Units [Member]  
Shares expected to vest:  
Number of units (in thousands) | shares 291
Grant date average fair value per unit | $ / shares $ 14.06
Average remaining vesting (in months) 9 months
Performance Share Units [Member]  
Shares expected to vest:  
Number of units (in thousands) | shares 279
Grant date average fair value per unit | $ / shares $ 14.05
Average remaining vesting (in months) 9 months
v3.25.4
Income Taxes - Additional Information (Detail) - USD ($)
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Income Tax [Line Items]      
Provision for (benefit from) income taxes (36.30%) (12.90%) 18.30%
(Benefit from) provision for income taxes $ 93,818,000 $ 142,648,000 $ 244,395,000
(Benefit from) provision for income taxes $ (34,054,000) (18,336,000) $ 44,741,000
Percentage of deduction from taxable income 20.00%    
Deferred tax assets, valuation allowance $ 0 0  
Federal net operating loss carryforwards $ 511,200,000 $ 384,300,000  
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 0    
TRS [Member]      
Income Tax [Line Items]      
(Benefit from) provision for income taxes 197,100,000 (57,900,000)  
(Benefit from) provision for income taxes $ 34,600,000 $ (18,600,000)  
v3.25.4
Income Taxes - Schedule of Tax Characterization of Distributions (Detail)
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Common Shares [Member]      
Income Tax [Line Items]      
Ordinary income 100.00% 100.00% 19.00%
Qualified dividend income 0.00% 27.00% 19.00%
Long term capital gain 0.00% 0.00% 0.00%
Return of capital 0.00% 0.00% 81.00%
Sec. 199A dividend 100.00% 73.00% 0.00%
Preferred Shares (Classes A, B and C) [Member]      
Income Tax [Line Items]      
Ordinary income 100.00% 100.00% 100.00%
Qualified dividend income 0.00% 27.00% 100.00%
Long term capital gain 0.00% 0.00% 0.00%
Return of capital 0.00% 0.00% 0.00%
Sec. 199A dividend 100.00% 73.00% 0.00%
v3.25.4
Income Taxes - Summary of Company's (Benefit from) Provision for Income Taxes (Detail) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Current expense:      
Federal $ 0 $ 1,051 $ 6
State 5,204 0 0
Total current expense 5,204 1,051 6
Deferred (benefit) expense:      
Federal (42,828) (16,898) 32,391
State 3,570 (2,489) 12,344
Total deferred (benefit) expense (39,258) (19,387) 44,735
Total (benefit from) provision for income taxes $ (34,054) $ (18,336) $ 44,741
v3.25.4
Income Taxes - Reconciliation of Company's Provision for Income Taxes (Detail) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Income Tax Disclosure [Abstract]      
Federal income tax expense at statutory tax rate, Amount $ 19,702 $ 29,956 $ 51,323
Tax Jurisdiction of Domicile [Extensible Enumeration] us-gaap:DomesticCountryMember us-gaap:DomesticCountryMember us-gaap:DomesticCountryMember
State and local income taxes, net of federal income tax effect, Amount $ 7,163 $ (6,169) $ 9,341
Effect of non-taxable REIT (income) loss, Amount (61,098) (42,110) (18,778)
Convertible debt adjustment 411 186 2,444
Other, Amount (232) (199) 411
Total (benefit from) provision for income taxes $ (34,054) $ (18,336) $ 44,741
Federal income tax expense at statutory tax rate, Rate 21.00% 21.00% 21.00%
State and local income taxes, net of federal income tax effect, Rate 7.60% (4.30%) 3.80%
Effect of non-taxable REIT (income) loss, Rate (65.10%) (29.50%) (7.70%)
Convertible debt adjustment 0.40% 0.10% 1.00%
Other, Rate (0.20%) (0.20%) 0.20%
Effective income tax rate (36.30%) (12.90%) 18.30%
v3.25.4
Income Taxes - Components of (Benefit from) Provision for Deferred Income Taxes (Detail) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Income Tax Disclosure [Abstract]      
Net operating loss carryforward $ (33,044) $ 16,801 $ 3,199
Mortgage servicing rights (12,832) (42,893) 22,924
Excess interest expense disallowance 9,010 2,675 15,114
Liability for losses under representations and warranties 331 4,760 3,108
Real estate valuation loss 52 (31) 107
Other (2,775) (699) 283
Total deferred (benefit) expense $ (39,258) $ (19,387) $ 44,735
v3.25.4
Income Taxes - Summary of Income Taxes Paid (Detail) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Income Tax Paid, by Individual Jurisdiction [Line Items]      
US Federal $ 0 $ 3,900 $ 3,900
US State and Local 2,331 3,906 2,617
Total income taxes paid 2,331 7,806 6,517
Maryland [Member]      
Income Tax Paid, by Individual Jurisdiction [Line Items]      
US State and Local 715 837 1,352
California [Member]      
Income Tax Paid, by Individual Jurisdiction [Line Items]      
US State and Local 660 1,298 50
Alabama [Member]      
Income Tax Paid, by Individual Jurisdiction [Line Items]      
US State and Local 335 243 267
New York [Member]      
Income Tax Paid, by Individual Jurisdiction [Line Items]      
US State and Local 224 548 266
Oregon [Member]      
Income Tax Paid, by Individual Jurisdiction [Line Items]      
US State and Local 171 172 96
Other US state and local [Member]      
Income Tax Paid, by Individual Jurisdiction [Line Items]      
US State and Local $ 226 $ 808 $ 586
v3.25.4
Income Taxes - Components of Income Taxes Payable (Detail) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Income Tax Disclosure [Abstract]    
Taxes currently receivable $ (12,211) $ (15,085)
Deferred income taxes payable 139,687 178,946
Income taxes payable $ 127,476 $ 163,861
v3.25.4
Income Taxes - Summary of Deferred Income Tax Assets and Liabilities (Detail) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Deferred income tax assets:    
Net operating loss carryforward $ 134,897 $ 101,853
Excess interest expense disallowance 30,819 39,829
Liability for losses under representations and warranties 1,353 1,684
REO valuation loss 50 102
Other 2,385 598
Gross deferred tax assets 169,504 144,066
Valuation allowance 0 0
Deferred tax assets after valuation allowance 169,504 144,066
Deferred income tax liabilities:    
Mortgage servicing rights 309,191 322,023
Other (0) 989
Gross deferred tax liabilities 309,191 323,012
Net deferred income tax liability $ 139,687 $ 178,946
v3.25.4
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, 2025
Dec. 31, 2024
Dec. 31, 2023
Earnings Per Share [Abstract]      
Net Income (Loss) $ 127,872 $ 160,984 $ 199,654
Dividends on preferred shares (41,819) (41,819) (41,819)
Effect of participating securities‒share-based compensation awards (148) (417) (454)
Net income attributable to common shareholders 85,905 118,748 157,381
Interest on exchangeable senior notes, net of income taxes 0 0 25,055
Loss attributable to participating securities 0 0 (44)
Diluted net income attributable to common shareholders $ 85,905 $ 118,748 $ 182,392
Weighted average basic shares outstanding 86,988 86,815 87,372
Dilutive securities-Shares issuable pursuant to exchange of the exchangeable senior notes 0 0 24,328
Diluted weighted average shares outstanding 86,988 86,815 111,700
Basic earnings per share $ 0.99 $ 1.37 $ 1.8
Diluted earnings per share $ 0.99 $ 1.37 $ 1.63
v3.25.4
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, 2025
Dec. 31, 2024
Dec. 31, 2023
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 349 204 180
v3.25.4
Segments - Additional Information (Detail)
12 Months Ended
Dec. 31, 2025
Segment
Segment Reporting [Abstract]  
Number of business segments 3
v3.25.4
Segments - Financial Highlights by Segment (Detail) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Net gains on investments and financings      
Mortgage-backed securities $ 148,344 $ (60,740) $ (8,217)
Loans held for investment 16,399 8,120 3,761
Credit risk transfer arrangements 48,370 113,670 182,555
Net gains on investments and financings 213,113 61,050 178,099
Net gains on loans held for sale 52,194 73,124 39,857
Net loan servicing fees 48,932 264,540 288,608
Net interest expense:      
Interest income 850,912 635,263 639,907
Interest expense 870,394 714,659 735,968
Net interest expense (19,482) (79,396) (96,061)
Other 12,704 14,876 18,517
Net investment income 307,461 334,194 429,020
Expenses:      
Professional services 37,774 12,779 7,621
Compensation 11,886 5,608 7,106
Loan collection and liquidation 8,285 6,834 4,562
Safekeeping 4,630 4,403 3,766
Loan origination 2,278 3,328 4,602
Other 12,905 20,428 19,033
Total expenses 213,643 191,546 184,625
Income before (benefit from) provision for income taxes 93,818 142,648 244,395
Total assets at end of year 21,346,882 14,408,706 13,113,887
PennyMac Financial Services, Inc. [Member]      
Net gains on investments and financings      
Net gains on loans held for sale 5,164 8,069 7,162
Expenses:      
Loan servicing fees 84,432 83,252 81,346
Management fees 27,649 28,623 28,762
Loan fulfillment fees 23,804 26,291 27,827
Reportable Segment [Member]      
Net gains on investments and financings      
Mortgage-backed securities 148,344 (60,740) (8,217)
Loans held for investment 16,399 8,120 3,761
Credit risk transfer arrangements 48,370 113,670 182,555
Net gains on investments and financings 213,113 61,050 178,099
Net gains on loans held for sale 52,194 73,124 39,857
Net loan servicing fees 48,932 264,540 288,608
Net interest expense:      
Interest income 840,792 622,834 628,750
Interest expense 865,046 709,950 732,027
Net interest expense (24,254) (87,116) (103,277)
Other 12,704 14,876 18,517
Net investment income 302,689 326,474 421,804
Expenses:      
Professional services 28,508 3,508 0
Compensation 0 0 0
Loan collection and liquidation 8,285 6,834 4,562
Safekeeping 4,630 4,403 3,766
Loan origination 2,278 3,328 4,601
Other 3,017 3,177 1,520
Total expenses 154,954 130,793 123,622
Income before (benefit from) provision for income taxes 147,735 195,681 298,182
Total assets at end of year 20,884,139 13,967,433 12,703,106
Reportable Segment [Member] | PennyMac Financial Services, Inc. [Member]      
Expenses:      
Loan servicing fees 84,432 83,252 81,346
Management fees 0 0 0
Loan fulfillment fees 23,804 26,291 27,827
Corporate [Member]      
Net gains on investments and financings      
Mortgage-backed securities 0 0 0
Loans held for investment 0 0 0
Credit risk transfer arrangements 0 0 0
Net gains on investments and financings 0 0 0
Net gains on loans held for sale 0 0 0
Net loan servicing fees 0 0 0
Net interest expense:      
Interest income 10,120 12,429 11,157
Interest expense 5,348 4,709 3,941
Net interest expense 4,772 7,720 7,216
Other 0 0 0
Net investment income 4,772 7,720 7,216
Expenses:      
Professional services 9,266 9,271 7,621
Compensation 11,886 5,608 7,106
Loan collection and liquidation 0 0 0
Safekeeping 0 0 0
Loan origination 0 0 1
Other 9,888 17,251 17,513
Total expenses 58,689 60,753 61,003
Income before (benefit from) provision for income taxes (53,917) (53,033) (53,787)
Total assets at end of year 462,743 441,273 410,781
Corporate [Member] | PennyMac Financial Services, Inc. [Member]      
Expenses:      
Loan servicing fees 0 0 0
Management fees 27,649 28,623 28,762
Loan fulfillment fees 0 0 0
Credit Sensitive Strategies [Member] | Reportable Segment [Member]      
Net gains on investments and financings      
Mortgage-backed securities (1,321) 6,964 35,625
Loans held for investment 15,124 3,726 2,597
Credit risk transfer arrangements 48,370 113,670 182,555
Net gains on investments and financings 62,173 124,360 220,777
Net gains on loans held for sale 0 0 0
Net loan servicing fees 0 0 0
Net interest expense:      
Interest income 78,978 89,635 98,996
Interest expense 75,444 89,883 86,963
Net interest expense 3,534 (248) 12,033
Other (64) (437) (186)
Net investment income 65,643 123,675 232,624
Expenses:      
Professional services 0 0 0
Compensation 0 0 0
Loan collection and liquidation 89 376 1,743
Safekeeping 0 0 0
Loan origination 0 0 0
Other 345 108 411
Total expenses 440 563 2,320
Income before (benefit from) provision for income taxes 65,203 123,112 230,304
Total assets at end of year 1,604,694 1,474,751 1,632,431
Credit Sensitive Strategies [Member] | Reportable Segment [Member] | PennyMac Financial Services, Inc. [Member]      
Expenses:      
Loan servicing fees 6 79 166
Management fees 0 0 0
Loan fulfillment fees 0 0 0
Interest Rate Sensitive Strategies [Member] | Reportable Segment [Member]      
Net gains on investments and financings      
Mortgage-backed securities 149,665 (67,704) (43,842)
Loans held for investment 1,275 4,394 1,164
Credit risk transfer arrangements 0 0 0
Net gains on investments and financings 150,940 (63,310) (42,678)
Net gains on loans held for sale 0 0 0
Net loan servicing fees 48,932 264,540 288,608
Net interest expense:      
Interest income 620,230 450,070 436,021
Interest expense 670,458 538,995 549,010
Net interest expense (50,228) (88,925) (112,989)
Other 0 0 0
Net investment income 149,644 112,305 132,941
Expenses:      
Professional services 0 0 0
Compensation 0 0 0
Loan collection and liquidation 8,196 6,458 2,819
Safekeeping 4,308 4,017 3,240
Loan origination 0 0 0
Other 2,261 3,069 1,109
Total expenses 99,191 96,717 88,348
Income before (benefit from) provision for income taxes 50,453 15,588 44,593
Total assets at end of year 16,512,045 10,322,044 10,281,904
Interest Rate Sensitive Strategies [Member] | Reportable Segment [Member] | PennyMac Financial Services, Inc. [Member]      
Expenses:      
Loan servicing fees 84,426 83,173 81,180
Management fees 0 0 0
Loan fulfillment fees 0 0 0
Correspondent Production [Member] | Reportable Segment [Member]      
Net gains on investments and financings      
Mortgage-backed securities 0 0 0
Loans held for investment 0 0 0
Credit risk transfer arrangements 0 0 0
Net gains on investments and financings 0 0 0
Net gains on loans held for sale 52,194 73,124 39,857
Net loan servicing fees 0 0 0
Net interest expense:      
Interest income 141,584 83,129 93,733
Interest expense 119,144 81,072 96,054
Net interest expense 22,440 2,057 (2,321)
Other 12,768 15,313 18,703
Net investment income 87,402 90,494 56,239
Expenses:      
Professional services 28,508 3,508 0
Compensation 0 0 0
Loan collection and liquidation 0 0 0
Safekeeping 322 386 526
Loan origination 2,278 3,328 4,601
Other 411 0 0
Total expenses 55,323 33,513 32,954
Income before (benefit from) provision for income taxes 32,079 56,981 23,285
Total assets at end of year 2,767,400 2,170,638 788,771
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 $ 23,804 $ 26,291 $ 27,827
v3.25.4
Regulatory Capital and Liquidity Requirements - Summary of Capital and Liquidity Amounts and Requirements by Agencies (Detail)
$ in Thousands
Dec. 31, 2025
USD ($)
Dec. 31, 2024
USD ($)
Capital Requirements By Agencies [Line Items]    
Net worth, Actual [1] $ 682,481 $ 876,324
Net worth, Required [1] $ 569,435 $ 579,383
Tangible net worth / total assets ratio, Actual [1] 0.09 0.12
Tangible net worth / total assets ratio, Required [1] 0.06 0.06
Liquidity, Actual [1] $ 514,626 $ 564,311
Liquidity, Required [1] $ 211,818 $ 215,801
[1] Calculated in accordance with the Agencies’ requirements.
v3.25.4
Parent Company Information - Summary of Financial Covenants that Include a Minimum Tangible Net Worth (Detail)
$ in Thousands
Dec. 31, 2025
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 2,248,567 [1]
PennyMac Holdings, LLC [Member]  
Compliance with Regulatory Capital Requirements for Mortgage Companies [Line Items]  
Debt covenant requirement 250,000
Actual balance 1,250,979 [1]
PennyMac Corp. [Member]  
Compliance with Regulatory Capital Requirements for Mortgage Companies [Line Items]  
Debt covenant requirement 300,000
Actual balance 759,908 [1]
PennyMac Mortgage Investment Trust [Member]  
Compliance with Regulatory Capital Requirements for Mortgage Companies [Line Items]  
Debt covenant requirement 1,250,000
Actual balance $ 1,885,799 [1]
[1] Calculated in accordance with the lenders’ requirements.
v3.25.4
Parent Company Information - Condensed Balance Sheets (Detail) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Assets        
Cash $ 271,970 $ 337,694    
Short-term investment 190,518 103,198    
Due from affiliates 25,458 16,706    
Other assets 373,584 438,221    
Total assets 21,346,882 14,408,706 $ 13,113,887  
Liabilities        
Unsecured senior notes 1,028,300 605,860    
Accounts payable and accrued liabilities 168,498 139,124    
Total liabilities 19,459,551 12,470,206    
Total shareholders’ equity 1,887,331 1,938,500 $ 1,957,090 $ 1,962,815
Total liabilities and shareholders’ equity 21,346,882 14,408,706    
PennyMac Financial Services, Inc. [Member]        
Assets        
Due from affiliates 19,100 16,015    
Liabilities        
Due to affiliates 17,122 30,206    
PennyMac Mortgage Investment Trust [Member]        
Assets        
Cash 808 845    
Investments in subsidiaries 2,250,348 2,265,779    
Due from subsidiaries 846 608    
Other assets 879 844    
Total assets 2,252,881 2,268,076    
Liabilities        
Capital notes due to subsidiaries 1,021 228,280    
Unsecured senior notes 320,492 51,538    
Dividends payable 35,394 34,838    
Accounts payable and accrued liabilities 2,336 0    
Due to subsidiaries 105 3,582    
Total liabilities 359,856 318,741    
Total shareholders’ equity 1,893,025 1,949,335    
Total liabilities and shareholders’ equity 2,252,881 2,268,076    
PennyMac Mortgage Investment Trust [Member] | PennyMac Financial Services, Inc. [Member]        
Liabilities        
Due to affiliates $ 508 $ 503    
v3.25.4
Parent Company Information - Condensed Statements of Operations (Detail) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Income      
Interest income $ 850,912 $ 635,263 $ 639,907
Other 243 228 472
Expenses      
Interest expense 870,394 714,659 735,968
Other 12,905 20,428 19,033
Total expenses 213,643 191,546 184,625
Income before provision for income taxes and distribution in excess of earnings 93,818 142,648 244,395
Provision for income taxes (34,054) (18,336) 44,741
Net Income (Loss) 127,872 160,984 199,654
PennyMac Mortgage Investment Trust [Member]      
Income      
Dividends from subsidiaries 170,525 180,695 182,043
Total income 171,095 180,858 182,097
Expenses      
Other 0 2 13
Total expenses 30,002 25,928 24,197
Income before provision for income taxes and distribution in excess of earnings 141,093 154,930 157,900
Provision for income taxes 0 0 6
Income before equity in undistributed earnings of subsidiaries 141,093 154,930 157,894
Equity in (distributions in excess of equity in earnings of subsidiaries) undistributed earnings of subsidiaries (18,362) 5,265 32,591
Net Income (Loss) 122,731 160,196 190,485
PennyMac Mortgage Investment Trust [Member] | Nonaffiliates [Member]      
Income      
Interest income 107 64 0
Expenses      
Interest expense 25,262 5,018 1,355
PennyMac Mortgage Investment Trust [Member] | Affiliate [Member]      
Income      
Interest income 463 99 54
Expenses      
Interest expense $ 4,740 $ 20,908 $ 22,829
v3.25.4
Parent Company Information - Condensed Statements of Cash Flows (Detail) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Cash flows from operating activities:      
Net Income (Loss) $ 127,872 $ 160,984 $ 199,654
Adjustments to reconcile net income to net cash provided by operating activities:      
Amortization of debt issuance costs 20,167 23,095 15,141
(increase) Decrease in other assets (30,980) (596,687) (86,086)
Decrease (increase) in accounts payable and accrued liabilities 28,781 (216,119) 194,059
Decrease (increase) in due to affiliate (13,084) 944 (7,110)
Net cash (used in) provided by operating activities (7,213,231) (2,702,883) 1,340,173
Cash flows from investing activities:      
Net decrease (increase) in short-term investments (87,320) 25,140 123,933
Net cash provided by (used in) investing activities 429,666 1,360,396 (21,726)
Cash flows from financing activities:      
Payment of debt issuance costs (15,940) (31,447) (13,967)
Payment of withholding taxes related to share-based compensation (1,127) (1,846) (567)
Payment of dividends to preferred shareholders (41,819) (41,819) (41,818)
Payment of dividends to common shareholders (139,367) (139,300) (140,617)
Repurchase of Common Shares 0 0 (28,490)
Net cash used in financing activities 6,717,841 1,399,096 (1,149,228)
Net change in cash (65,724) 56,609 169,219
Cash at beginning of year 337,694 281,085 111,866
Cash at end of year 271,970 337,694 281,085
Non-cash financing activities:      
Dividends payable 35,431 34,838 34,750
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) 122,731 160,196 190,485
Adjustments to reconcile net income to net cash provided by operating activities:      
Distributions in excess of earnings of subsidiaries (equity in undistributed earnings of subsidiaries) 18,362 (5,265) (32,591)
Amortization of debt issuance costs 1,707 471 110
Decrease in due from subsidiaries 696 357 638
(increase) Decrease in other assets (35) 2 58
Decrease (increase) in accounts payable and accrued liabilities 2,336 (19) (323)
Decrease (increase) in due to affiliate 5 558 (335)
(Increase) decrease in due to subsidiaries (3,514) 1,805 191
Net cash (used in) provided by operating activities 142,288 158,105 158,233
Cash flows from investing activities:      
Net decrease (increase) in short-term investments 0 603 (96)
Net cash provided by (used in) investing activities 0 603 (96)
Cash flows from financing activities:      
Issuance of unsecured senior notes 277,500 0 53,500
Payment of debt issuance costs (10,253) (48) (2,495)
(Increase) decrease in intercompany unsecured note payable (227,259) 25,150 2,350
Payment of withholding taxes related to share-based compensation (1,127) (1,846) (567)
Payment of dividends to preferred shareholders (41,819) (41,819) (41,818)
Payment of dividends to common shareholders (139,367) (139,300) (140,617)
Repurchase of Common Shares 0 0 (28,490)
Net cash used in financing activities (142,325) (157,863) (158,137)
Net change in cash (37) 845 0
Cash at beginning of year 845 0 0
Cash at end of year 808 845 0
Non-cash investing activities:      
Investment in subsidiary pursuant to share based compensation plan 3,864 3,476 5,204
Non-cash financing activities:      
Contribution of equity to subsidiary pursuant to share based compensation plan 3,864 3,476 5,204
Dividends payable $ 35,431 $ 34,838 $ 34,750