15-11: Increase to LTV Plus Maximum Loan Amount

15-11: Increase to LTV Plus Maximum Loan Amount

February 26, 2015

Currently, the LTV Plus program is limited to a maximum loan amount of $750,000. 

 

Effective Monday, March 2, 2015, PennyMac is pleased to announce that the LTV Plus program is now eligible with loan amounts up to $1,250,000. Loan amounts from $750,001 to $1,250,000 will require 12 months reserves. 

 

With this change, the Jumbo Underwriting Guidelines and Eligibility Requirements are also being updated to reflect two separate Eligibility Matrices, one for the Standard Jumbo Program and a second for the LTV Plus Program. 

 

LTV Plus Eligibility Matrix

 

                    See "Print View" attachment in upper right corner for updated eligibility matrix section.

 

High LTV Eligibility Matrix Notes:

  • LTV/CLTV reduced by 5% when the appraisal indicates in either the Neighborhood Section Housing Trends or 1004MC Median Comparable Sale Price that property values are declining. 
  • First time homebuyer (FTHB) maximum $1,000,000 loan amount
  • See Reserves Section for FTHB and multiple financed properties reserves requirements
  • Escrows required in accordance with PennyMac Seller Guide

 

Effective with commitments taken on or after Monday, March 2, 2015, the ‘Jumbo LLPAs’ tab on all rate sheets will reflect the following LLPA adjustments in the ‘FICO/LTV LLPAs (Loan Amount > $1.0M to <= $1.5M)’ grid:

 

FICO/LTV LLPAs (> $1.0M to <= $1.5M)

 

LTV Range

FICO Range

80.01 - 85.00%*

>= 760

-0.125

740 - 759

-0.250

720 - 739

n/a

700 - 719

n/a

 

* No changes will be made to the location or structure of any other LLPA grid on the rate sheet.

 

Please contact your Sales Representative with any questions.