Commitment Cancellation and Pair-Off

Commitment Cancellation

A Best Efforts commitment may be cancelled prior to delivering the Mortgage Loan via the Seller Portal. Sellers are encouraged to cancel as soon as such action is deemed necessary.

Commitment Pair-Off

PennyMac may collect a pair-off fee for failure to deliver into a Best Efforts commitment when the subject Mortgage Loan has closed. Please refer to Commitment Options.

PennyMac calculates a pair-off fee in accordance with the following terms:

  • Price Differential = Current Price – (Price At Lock + Extension/Roll Fees)
  • Pair-off Fee = (Positive Price Differential + Pair-off Penalty Fee) * Under-Delivery Amount

Commitment Pair-Off Penalty Fee Table:

Type of Commitment

Product

Pair-off Penalty Fee (basis points)

Best Efforts

All

50

 

Best Efforts Commitment

Current Price is the base price on the Best Efforts rate sheet that was in effect as of the Pair-Off Date/Time for the maximum commitment term that is less than or equal to the number of calendar days remaining in the commitment being paired-off. A live price adjustment may be added to the rate sheet price to adjust for market movement since the last rate sheet posting.

Price At Lock is the base price on the Best Efforts rate sheet that was in effect as of the commitment lock date/time of the commitment for the original commitment term. A live price adjustment may be added to the rate sheet price to adjust for market movement between the rate sheet publication date/time and the lock date/time.

Note: If a Best Efforts commitment has been relocked, the Price At Lock will be the base price determined by the relock policy in effect as of the relock date/time.

Pair-Off Date/Time

Best Efforts Commitments

The Pair-Off Date/Time is the earlier of:

  • Market open on the first business day immediately following the commitment delivery due date, or
  • First date/time the Best Efforts lock desk is open after PennyMac obtains conclusive evidence that a loan locked in a Best Efforts commitment closed and will not be delivered. Please refer to Commitment Options.