Jekyll2024-03-18T17:02:18-07:00https://corr.pennymac.com/PennyMac Correspondent GroupThe PennyMac Correspondent Group offers fast client approvals, both delegated and non-delegated options, competitive products and flexible options.
24-24: Virtual Currency Update2024-03-18T07:30:00-07:002024-03-18T07:30:00-07:00https://corr.pennymac.com/announcements/24-24-virtual-currency-update<p>Effective immediately, Pennymac is pleased to announce that cryptocurrency/virtual currency may now be used as funds for closing and reserves on FHA and VA products as referenced below:</p>
<p><img src="/assets/documents/announcements/24-24-img-table.jpg" alt="" class="img-fluid" width="720" height="454" /></p>
<p><strong>Note:</strong> Virtual currency used for income purposes remains ineligible across all products and programs.</p>
<p>Please contact your Sales Representative with any questions.</p>Effective immediately, Pennymac is pleased to announce that cryptocurrency/virtual currency may now be used as funds for closing and reserves on FHA and VA products as referenced below:24-23: Updates to Conventional LLPAs2024-03-15T07:30:00-07:002024-03-15T07:30:00-07:00https://corr.pennymac.com/announcements/24-23-updates-to-conventional-llpas<p>Pennymac will update Conventional LLPAs effective for all Best Efforts Commitments taken on or after <strong>Monday, March 18, 2024</strong> as follows:</p>
<ul>
<li>Improve values for the ‘2<sup>nd</sup> Home Additional’ LLPA on the ‘LLPAs by Product Feature for All Eligible Loans’ Grid.</li>
<li>Improve values for the ‘Investment Additional’ LLPA on the ‘LLPAs by Product Feature for All Eligible Loans’ Grid.</li>
</ul>
<p>Please contact your Sales Representative with any questions.</p>Pennymac will update Conventional LLPAs effective for all Best Efforts Commitments taken on or after Monday, March 18, 2024 as follows:24-22: Cybersecurity Incidents Reminder2024-03-12T07:30:00-07:002024-03-12T07:30:00-07:00https://corr.pennymac.com/announcements/24-20-fha-non-borrowing-spouse-clarification-copy-2<p>Freddie Mac issued an industry letter on January 20, 2024 reminding Sellers and Servicers of their obligations to maintain an effective information security program, and their reporting obligations of cybersecurity incidents.</p>
<p>Freddie Mac’s letter cited that a record number of cybersecurity incidents against Seller/Servicers occurred in 2023. These included incidents of social engineering (e.g., “phishing,” “spear phishing”) and installation of malware and ransomware which resulted in business disruptions for impacted lenders and for borrowers. Given recent events and the increasingly sophisticated nature of these cybersecurity incidents, correspondents are encouraged to accelerate their information security program reviews to incorporate industry best practices and lessons learned from recent events. These reviews must occur at least once on an annual basis.</p>
<p>Pennymac, would like to remind Correspondents of their obligations to report all cybersecurity incidents to Pennymac within 48 hours after discovery. Please report any cybersecurity incidents to Pennymac at <a href="mailto:privacyalert@pnmac.com">privacyalert@pnmac.com</a> and <a href="mailto:PCGMonitoring@pennymac.com">PCGMonitoring@pennymac.com</a>.</p>
<p>Please contact your Sales Representative with any questions.</p>Freddie Mac issued an industry letter on January 20, 2024 reminding Sellers and Servicers of their obligations to maintain an effective information security program, and their reporting obligations of cybersecurity incidents.24-21: Final Multi-Factor Authentication Implementation2024-03-07T07:31:00-08:002024-03-07T07:31:00-08:00https://corr.pennymac.com/announcements/24-20-fha-non-borrowing-spouse-clarification-copy<p>As part of our commitment to maintain the highest quality and security of client data, Pennymac has finalized implementation of Multi-Factor Authentication (MFA) Technology in the P3 client portal with enforcement effective <strong>Friday, March 8, 2024</strong>.</p>
<p>Any issues or challenges requiring technical support should be directed to <a href="mailto:pcg.web.support@pennymac.com">pcg.web.support@pennymac.com</a>.</p>
<p>Please contact your Account Executive or Pipeline Account Manager with any questions.</p>As part of our commitment to maintain the highest quality and security of client data, Pennymac has finalized implementation of Multi-Factor Authentication (MFA) Technology in the P3 client portal with enforcement effective Friday, March 8, 2024.24-20: FHA Non-Borrowing Spouse Clarification2024-03-04T07:31:00-08:002024-03-04T07:31:00-08:00https://corr.pennymac.com/announcements/24-20-fha-non-borrowing-spouse-clarification<p>FHA requires the debt of a non-borrowing spouse (NBS) to be included on the URLA and included in the qualifying debt ratios if:</p>
<ul>
<li>The NBS currently resides in a community property state; or</li>
<li>The property being purchased is located in a community property state.</li>
</ul>
<p>Pennymac confirmed the above with FHA and have updated our guidelines accordingly. Please refer to the examples below for guidance.</p>
<h3 id="example-1">Example 1:</h3>
<ul>
<li>The NBS resides in California at the time of application, which is a community property state, and the new primary residence (subject property) is in Georgia, which is not a community property state.</li>
<li>The NBS’s debt must be included in the qualifying ratios</li>
</ul>
<p><img src="/assets/documents/announcements/delegated-24-20-table-img-1.jpg" alt="" class="img-fluid" width="640" height="123" /></p>
<h3 id="example-2">Example 2:</h3>
<ul>
<li>The NBS resides in New Jersey at the time of application, which is a non-community property state, and the new primary residence (subject property) is in Texas, which is a community property state.</li>
<li>The NBS’s debt must be included in the qualifying ratios</li>
</ul>
<p><img src="/assets/documents/announcements/delegated-24-20-table-img-2.jpg" alt="" class="img-fluid" width="640" height="121" /></p>
<p>Please contact your Sales Representative with any questions.</p>FHA requires the debt of a non-borrowing spouse (NBS) to be included on the URLA and included in the qualifying debt ratios if:24-19: Updates to Conventional LLPAs2024-03-04T05:31:00-08:002024-03-04T05:31:00-08:00https://corr.pennymac.com/announcements/24-19-updates-to-conventional-llpas<p>Pennymac will update Conventional LLPAs effective for all Best Efforts Commitments taken on or after <strong>Tuesday, March 05, 2024</strong> as follows:</p>
<ul>
<li>Improve values for the ‘2nd Home Additional’ LLPA on the ‘LLPAs by Product Feature for All Eligible Loans’ Grid.</li>
<li>Update values for the ‘Investment Additional’ LLPA on the ‘LLPAs by Product Feature for All Eligible Loans’ Grid.</li>
</ul>
<p>Please contact your Sales Representative with any questions.</p>Pennymac will update Conventional LLPAs effective for all Best Efforts Commitments taken on or after Tuesday, March 05, 2024 as follows:24-18: Temporary Down Payment Assistance Product Enhancement for Fannie Mae HomeReadyⓇ and Freddie Mac Home PossibleⓇ2024-02-29T05:31:00-08:002024-02-29T05:31:00-08:00https://corr.pennymac.com/announcements/24-18-temporary-down-payment-assistance-product-enhancement-for-fannie-mae-homeready%E2%93%A1-and-freddie-mac-home-possible%E2%93%A1<p>Pennymac is pleased to announce a new down payment assistance (DPA) enhancement to the Fannie Mae HomeReady and Freddie Mac Home Possible products. The enhancement includes a $2,500 assistance amount for very low-income purchase (VLIP) borrowers that can be used for down payment and closing costs.</p>
<h3 id="fannie-mae-homeready">Fannie Mae HomeReady</h3>
<p>Effective immediately, eligible HomeReady purchase borrowers may receive $2,500 assistance, if the loan meets certain requirements:</p>
<ul>
<li>The loan must be underwritten in DU and receive an Approve/Eligible.</li>
<li>The borrower(s) must have qualifying income less than or equal to 50% of the area median income limit for the property’s location.</li>
<li>The full amount of the assistance must be applied directly to the borrower through the transaction and applied to down payment and/or closing costs.</li>
<li>The assistance can fulfill the 3% minimum contribution requirement for loans on single family properties or for loans on 2-4-unit properties with LTV ratios up to 80%.</li>
<li>Evidence of the $2,500 assistance to the borrower must be reflected as its own line item in Section L on the final CD, and retained in the loan file. Refer to screenshot example on page 2 of this announcement.</li>
<li>All other Fannie Mae and Pennymac HomeReady program requirements apply. Please refer to the Fannie Mae VLIP <a href="https://singlefamily.fanniemae.com/media/37856/display" target="_blank" rel="noopener noreferrer">job aid</a> for assistance.</li>
<li>Loans must be delivered on or before 1/10/2025.</li>
</ul>
<h3 id="freddie-mac-home-possible">Freddie Mac Home Possible</h3>
<p>Effective immediately, eligible Home Possible purchase loans may receive $2,500 in assistance if the loan meets certain requirements:</p>
<ul>
<li>The loan must be underwritten in LPA and receive a Risk Class of Accept.</li>
<li>The borrower(s) must have qualifying income less than or equal to 50% of the area median income limit for the property’s location.</li>
<li>The full amount of the assistance must be applied directly to the borrower through the transaction and applied to down payment and/or closing costs.</li>
<li>The assistance may be used to offset the 3% minimum contribution requirement from borrower personal funds.</li>
<li>Evidence of the $2,500 assistance to the borrower must be reflected as its own line item in Section L on the final CD, and retained in the loan file. Refer to screenshot example on page 2 of this announcement.</li>
<li>All other Freddie Mac and Pennymac Home Possible program requirements apply. Please refer to the Freddie Mac VLIP <a href="https://sf.freddiemac.com/docs/pdf/fact-sheet/how-to-use-fretools-4hp-vlip-credit.pdf" target="_blank" rel="noopener noreferrer">job aid</a> for assistance.</li>
<li>Loans must be delivered on or before 1/10/2025.</li>
</ul>
<h3 id="final-cd-example">Final CD Example:</h3>
<p><img src="/assets/documents/announcements/delegated-24-18-table-img.jpg" alt="" class="img-fluid" width="520" height="439" /></p>
<p>Please contact your Sales Representative for complete program details and loan purchase requirements.</p>Pennymac is pleased to announce a new down payment assistance (DPA) enhancement to the Fannie Mae HomeReady and Freddie Mac Home Possible products. The enhancement includes a $2,500 assistance amount for very low-income purchase (VLIP) borrowers that can be used for down payment and closing costs.24-17: Freddie Mac BorrowSmart® Program Discontinued2024-02-27T05:31:00-08:002024-02-27T05:31:00-08:00https://corr.pennymac.com/announcements/24-17-freddie-mac-borrowsmart-program-discontinued<p>Freddie Mac recently confirmed the BorrowSmart program is being discontinued. Please review the following dates and timelines carefully.</p>
<h3 id="home-possible-vlip">Home Possible VLIP</h3>
<ul>
<li>For Home Possible loans with AMI < 50% (VLIP), the last date to schedule the homebuyer eligibility screening review with the Homeownership Preservation Foundation (HPF) is February 29, 2024
<ul>
<li>The homebuyer counseling session can be completed with HPF after 2/29/2024, but must be completed prior to the note date</li>
<li>Homebuyer eligibility screening reviews scheduled after 2/29/2024 are no longer eligible for the BorrowSmart program and will not receive the $1,500 assistance</li>
</ul>
</li>
<li><strong>The last day to deliver BorrowSmart VLIP loans to Pennymac is 5/30/2024</strong></li>
</ul>
<h3 id="homeone--home-possible--manufactured-homes-lip-and-mip">HomeOne / Home Possible / Manufactured Homes LIP and MIP</h3>
<ul>
<li>For Home Possible loans with AMI >50% & <80% (LIP) and HomeOne or manufactured home loans with AMI >80% <100% (MIP), the last date to schedule the homebuyer eligibility screening review with the Homeownership Preservation Foundation (HPF) is May 31, 2024
<ul>
<li>The homebuyer counseling session can be completed with HPF after 5/31/2024, but must be completed prior to the note date</li>
<li>Homebuyer eligibility screening reviews scheduled after 5/31/2024 are no longer eligible for the BorrowSmart program and will not receive the $500 or $1,000 assistance</li>
</ul>
</li>
<li><strong>The last day to deliver BorrowSmart LIP and MIP loans to Pennymac is 8/30/2024</strong></li>
</ul>
<h3 id="gse-down-payment-assistance-product-enhancement-coming-soon">GSE Down Payment Assistance Product Enhancement– Coming Soon!</h3>
<p>Pennymac is pleased to announce we will be releasing a down payment assistance product enhancement for VLIP mortgages. Complete details along with the release date will be announced shortly.</p>
<p>Please contact your Sales Representative with any questions.</p>Freddie Mac recently confirmed the BorrowSmart program is being discontinued. Please review the following dates and timelines carefully.24-16: Best Effort Rate Sheet Restructure2024-02-27T03:31:00-08:002024-02-27T03:31:00-08:00https://corr.pennymac.com/announcements/24-16-best-effort-rate-sheet-restructure<p>Pennymac will be restructuring its Best Effort rate sheet effective <strong>Monday, March 11, 2024</strong>. The changes will be as follows:</p>
<ul>
<li>Enhancing the ‘Govt LLPAs’ tab</li>
<li>Removing the ‘SRP – FHA’ tab</li>
<li>Removing the ‘SRP – VA’ tab</li>
<li>Removing the ‘SRP – USDA’ tab</li>
<li>Adding new ‘SRP – Govt’ tab</li>
</ul>
<p>The new Government LLPA and SRP tabs will be included in the Excel Rate Sheet beginning February 28, before the effective date, for the purpose of communicating the new grids and format.</p>
<p>Please contact your Sales Representative with any questions.</p>Pennymac will be restructuring its Best Effort rate sheet effective Monday, March 11, 2024. The changes will be as follows:24-15: FHLMC 2023-19 Transition to Uniform Property Dataset (UPD)2024-02-23T03:30:00-08:002024-02-23T03:30:00-08:00https://corr.pennymac.com/announcements/24-15-fhlmc-2023-19-transition-to-uniform-property-dataset-upd<p>Pennymac is aligning with the updates to the Uniform Property Dataset (UPD) as announced in Freddie Mac Bulletin 2023-19. Freddie Mac is transitioning from the Freddie Mac Property Dataset (PDR v2.0) the UPD. The UPD was made available as an option for use in completing PDRs effective with applications dated on or after 12/1/2023.</p>
<p>Beginning with applications dated on or after 4/1/2024, lenders will be required to use the UPD and must submit PDRs to Freddie Mac using the bACE API. The Freddie Mac Property Dataset (PDR v2.0) will no longer be accepted.</p>
<p>As a reminder, the PDR must always be retained in the mortgage file.</p>
<p>Please contact your Sales Representative with any questions.</p>Pennymac is aligning with the updates to the Uniform Property Dataset (UPD) as announced in Freddie Mac Bulletin 2023-19. Freddie Mac is transitioning from the Freddie Mac Property Dataset (PDR v2.0) the UPD. The UPD was made available as an option for use in completing PDRs effective with applications dated on or after 12/1/2023.