Commitment Cancellation
A Best Efforts commitment may be cancelled prior to delivering the Mortgage Loan via the Correspondent Portal. Correspondents are encouraged to cancel as soon as such action is deemed necessary.
A Bulk and Bulk AOT commitment may not be cancelled. Failure to deliver into a mandatory-delivery commitment may result in a pair-off fee.
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 may collect a pair-off fee for failure to deliver into a Bulk or Bulk AOT commitment. Please refer to Commitment Delivery Variance.
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 |
| Bulk | FNMA DURP > 80 LTV | 25 |
| Conventional/FHA High Balance | 25 | |
| Products Not on Rate Sheet | 25 | |
| All Others | 12.5 |
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 locked commitment term. 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.
Bulk Commitment
Current Price is the price Pennymac would bid on the Pair-Off Date/Time for Mortgage Loans with the same characteristics as those that were expected to be delivered and purchased by Pennymac in accordance with the Bulk commitment, but were not purchased by Pennymac regardless of reasons such loans were not purchased, with a delivery due date equivalent to the delivery due date of the commitment being paired-off.
Price At Lock is the original commitment price for the Mortgage Loans that were expected to be delivered and purchased by Pennymac in accordance with the Bulk commitment, but were not purchased by Pennymac regardless of the reasons such loans were not purchased.
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.
Bulk and Bulk AOT Commitment
The Pair-Off Date/Time is the earlier of:
- First date/time Pennymac’s Mandatory Trade Desk is open after the correspondent requests (and Pennymac acknowledges) a commitment pair-off, or
- First date/time Pennymac’s Mandatory Trade Desk is open on the business day immediately following the commitment delivery due date.