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Transactions with Affiliates (Tables)
 12 Months Ended
Dec. 31, 2018
Transactions with Affiliates  
Summary of activity in Payable to exchanged Private National Mortgage Acceptance Company, LLC unitholders under tax receivable agreement

 

 

 

 

 

 

 

 

 

 

 

 

 

Year ended December 31,

 

 

 

2018

   

2017

   

2016

 

 

 

(in thousands)

 

Activity during the year:

 

 

 

 

 

 

 

 

 

 

Liability resulting from unit exchanges

 

$

3,652

 

$

7,723

 

$

2,190

 

Payments under tax receivable agreement

 

$

 —

 

$

(6,726)

 

$

 —

 

Repricing of liability (1)

 

$

(1,126)

 

$

(32,940)

 

$

(551)

 

Balance at end of year

 

$

46,537

 

$

44,011

 

$

75,954

 

A reduction of $32.0 million in the payable to exchanged PennyMac unitholders under the tax receivable agreement in 2017 was the result of the change in the federal corporate tax rate to 21% from the previous maximum of 35% under Tax Cuts and Jobs Act of 2017 (“the Tax Act”).

PMT  
Transactions with Affiliates  
Summary of lending activity between the Company and affiliate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year ended December 31,

 

 

    

 

2018

   

2017

   

2016

 

 

 

 

(in thousands)

 

Net gains (loss) on mortgage loans held for sale at fair value:

 

 

 

 

 

 

 

 

 

 

 

Net gains on mortgage loans held for sale to PMT

 

 

$

69,359

 

$

28,238

 

$

 —

 

Mortgage servicing rights and excess servicing spread recapture incurred

 

 

 

(4,776)

 

 

(6,249)

 

 

(8,092)

 

 

 

 

$

64,583

 

$

21,989

 

$

(8,092)

 

Sale of mortgage loans held for sale to PMT

 

 

$

3,343,028

 

$

904,097

 

$

21,541

 

 

 

 

 

 

 

 

 

 

 

 

 

Fulfillment fee revenue

    

 

$

81,350

    

$

80,359

    

$

86,465

 

Unpaid principal balance of mortgage loans fulfilled for PMT subject to fulfillment fees

 

 

$

26,194,303

 

$

22,971,119

 

$

23,188,386

 

 

 

 

 

 

 

 

 

 

 

 

 

Sourcing fees paid to PMT

 

 

$

10,925

 

$

12,084

 

$

11,976

 

Unpaid principal balance of mortgage loans purchased from PMT

 

 

$

36,415,933

 

$

40,561,241

 

$

39,908,163

 

 

 

 

 

 

 

 

 

 

 

 

 

Tax service fees earned from PMT included in Mortgage loan origination fees

 

 

$

7,433

 

$

7,078

 

$

6,690

 

Early purchase program fees earned from PMT included in Mortgage loan servicing fees

 

 

$

 —

 

$

 7

 

$

30

 

 

Summary of mortgage loan servicing fees earned from PMT

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year ended December 31, 

 

    

 

2018

   

2017

 

2016

 

 

 

(in thousands)

Mortgage loans acquired for sale at fair value:

 

 

 

 

 

 

 

 

 

 

Base and supplemental

    

    

$

347

    

$

305

    

$

330

Activity-based

 

 

 

690

 

 

649

 

 

733

 

 

 

 

1,037

 

 

954

 

 

1,063

Mortgage loans at fair value:

 

 

 

 

 

 

 

 

 

 

Base and supplemental

 

 

 

2,771

 

 

6,650

 

 

11,078

Activity-based

 

 

 

4,784

 

 

8,960

 

 

18,521

 

 

 

 

7,555

 

 

15,610

 

 

29,599

Mortgage servicing rights:

 

 

 

 

 

 

 

 

 

 

Base and supplemental

 

 

 

32,854

 

 

25,991

 

 

19,461

Activity-based

 

 

 

599

 

 

509

 

 

492

 

 

 

 

33,453

 

 

26,500

 

 

19,953

 

 

 

$

42,045

 

$

43,064

 

$

50,615

Property management fees received from PMT included in Other income

 

 

$

442

 

$

350

 

$

138

 

Summary of management fees earned

 

 

 

 

 

 

 

 

 

 

 

 

Year ended December 31, 

 

    

2018

   

2017

 

2016

 

 

(in thousands)

Base management

 

$

23,033

    

$

22,280

    

$

20,657

Performance incentive

 

 

1,432

 

 

304

 

 

 —

 

 

$

24,465

 

$

22,584

 

$

20,657

 

 

 

 

 

 

 

 

 

 

 

Summary of reimbursement of expenses

 

 

 

 

 

 

 

 

 

 

 

 

Year ended December 31,

 

 

2018

   

2017

   

2016

 

 

(in thousands)

Reimbursement of:

 

 

                

    

 

                

    

 

                

Common overhead incurred by the Company (1)

 

$

4,640

 

$

5,306

 

$

7,898

Compensation (1)

 

 

480

 

 

 —

 

 

 —

Expenses incurred on (the Company's) PMT's behalf, net

 

 

1,113

 

 

2,257

 

 

(163)

 

 

$

6,233

 

$

7,563

 

$

7,735

Payments and settlements during the year (2)

 

$

71,943

 

$

64,945

 

$

143,542

(1)

The Company adopted Accounting Standards Update 2014-09 Revenues from Contracts with Customers (“ASU 2014-09”) using the modified retrospective method effective January 1, 2018. Adoption of ASU 2014-09 using the modified retrospective method required the Company to include those reimbursements from PMT in Other revenue starting January 1, 2018. Before adoption of ASU 2014-09, the Company included such reimbursements in the respective expense line items.

 

Payments and settlements include payments for management fees and correspondent production activities itemized in the preceding tables and netting settlements made pursuant to master netting agreements between the Company and PMT.

Summary of investing activity between the Company and affiliate

 

 

 

 

 

 

 

 

 

 

 

 

 

Year ended December 31, 

 

 

    

2018

    

2017

 

2016

 

 

    (in thousands)

 

Assets purchased from PennyMac Mortgage Investment Trust under agreements to resell:

 

 

 

 

 

 

 

 

 

 

Activity during the year:

 

 

 

 

 

 

 

 

 

 

Refinancing of note receivable from PennyMac Mortgage Investment Trust

 

$

 —

 

$

 —

 

$

150,000

 

Sale of assets purchased from PMT under agreement to resell

 

$

13,103

 

$

5,872

 

$

 —

 

Interest income

 

$

7,462

 

$

8,038

 

$

253

 

Balance at end of year

 

$

131,025

 

$

144,128

 

$

150,000

 

Note receivable from PennyMac Mortgage Investment Trust:

 

 

 

 

 

 

 

 

 

 

Activity during the year:

 

 

 

 

 

 

 

 

 

 

Refinancing with repurchase agreement from PennyMac Mortgage Investment Trust

 

$

 —

 

$

 —

 

$

150,000

 

Interest income

 

$

 —

 

$

 —

 

$

7,577

 

Balance at end of year

 

$

 —

 

$

 —

 

$

 —

 

Common shares of beneficial interest of PennyMac Mortgage Investment Trust:

 

 

 

 

 

 

 

 

 

 

Activity during the year:

 

 

 

 

 

 

 

 

 

 

Dividends earned from PennyMac Mortgage Investment Trust

 

$

140

 

$

141

 

$

141

 

Change in fair value of investment in common shares of PennyMac Mortgage Investment Trust

 

 

192

 

 

(23)

 

 

83

 

 

 

$

332

 

$

118

 

$

224

 

Balance at end of year:

 

 

 

 

 

 

 

 

 

 

Fair value

 

$

1,397

 

$

1,205

 

 

 

 

Number of shares

 

 

75

 

 

75

 

 

 

 

 

Summary of financing activity between the Company and affiliate

 

 

 

 

 

 

 

 

 

 

 

 

Year ended December 31,

 

 

2018

   

2017

   

2016

 

 

(in thousands)

Excess servicing spread financing:

 

 

 

 

 

 

 

 

 

Issuance pursuant to recapture agreement

 

$

2,688

 

$

5,244

 

$

6,603

Repayment

 

$

46,750

 

$

54,980

 

$

69,992

Settlement

 

$

 —

 

$

 —

 

$

59,045

Change in fair value

 

$

8,500

 

$

(19,350)

 

$

(23,923)

Interest expense

 

$

15,138

 

$

16,951

 

$

22,601

Recapture incurred pursuant to refinancings by the Company of mortgage loans subject to excess servicing spread financing included in Net gains on mortgage loans held for sale at fair value

 

$

2,584

 

$

4,820

 

$

6,529

 

 

 

 

 

 

 

 

 

 

 

 

December 31,

 

 

 

 

 

2018

 

2017

 

 

 

 

 

(in thousands)

 

 

 

Excess servicing spread financing at fair value

 

$

216,110

 

$

236,534

 

 

 

 

Summary of amounts due from and payable to affiliate

 

 

 

 

 

 

 

 

 

 

December 31, 

 

December 31, 

 

 

    

2018

    

2017

 

 

 

(in thousands)

 

Receivable from PMT:

 

 

 

 

 

 

 

Fulfillment fees

 

$

10,006

 

$

346

 

Allocated expenses and expenses incurred on PMT's behalf

 

 

9,066

 

 

11,542

 

Management fees

 

 

6,559

 

 

5,901

 

Servicing fees

 

 

4,841

 

 

6,583

 

Correspondent production fees

 

 

2,071

 

 

1,735

 

Conditional Reimbursement

 

 

801

 

 

870

 

Interest on assets purchased under agreements to resell

 

 

120

 

 

142

 

 

 

$

33,464

 

$

27,119

 

Payable to PMT:

 

 

 

 

 

 

 

Deposits made by PMT to fund servicing advances

 

$

100,554

 

$

132,844

 

Mortgage servicing rights recapture payable

 

 

179

 

 

282

 

Other

 

 

3,898

 

 

3,872

 

 

 

$

104,631

 

$

136,998

 

 

Investment Funds  
Transactions with Affiliates  
Summary of amounts due from and payable to affiliate

 

 

 

 

 

 

 

 

 

 

 

    

December 31, 2017

 

 

 

(in thousands)

 

Carried Interest due from Investment Funds:

 

 

 

 

PNMAC Mortgage Opportunity Fund, LLC

 

$

6,389

 

PNMAC Mortgage Opportunity Fund Investors, LLC

 

 

2,163

 

 

 

$

8,552

 

Receivable from Investment Funds:

 

 

 

 

Mortgage loan servicing fee rebate deposit

 

$

300

 

Management fees

 

 

88

 

Expense reimbursements

 

 

27

 

Mortgage loan servicing fees

 

 

 2

 

 

 

$

417

 

Payable to Investment Funds:

 

 

 

 

Deposits received to fund servicing advances

 

$

2,329

 

Other

 

 

98

 

 

 

$

2,427