Commitment Extension and Relock

Best Efforts Commitment Extension

Sellers are permitted to extend the commitment delivery due date of a Best Efforts commitment for a maximum cumulative term of the lesser of thirty (30) calendar days or the original (or relock) commitment term. The minimum Best Efforts extension is one (1) calendar day. Pennymac may grant additional extensions by exception.

Pennymac will reduce the commitment price by the extension fee noted on the rate sheet in effect at the extension date/time.

Note: Pennymac resets the commitment extension count at relock.

Best Efforts Commitment Relock

Sellers may relock an expired Best Efforts commitment for a maximum of two (2) times, utilizing commitment period terms as noted on the rate sheet in effect as of the relock date/time.

Best Efforts commitments relocked less than or equal to thirty (30) calendar days after the earlier of the commitment cancellation date or most recent delivery due date, will be subject to a worse-of price, defined as the lesser of the following:

  • Commitment price as of the most recent lock, relock, or worse-of reprice event plus accumulated extension/relock fees plus relock fee (as noted on the rate sheet in effect as of the relock date/time), and
  • Current rate sheet price for the relock commitment term

Best Efforts commitments relocked greater than thirty (30) calendar days, after the earlier of the commitment cancellation date or most recent delivery due date, will be subject to current rate sheet price in effect as of the relock date/time.