Updates / Pennymac Correspondent
80 Pennymac Correspondent changes tracked by AWACS, newest first. Each links to its summary, effective date, loan impact and the official document.
Applies to: Applies to conventional and non-QM mortgages locked under best-efforts commitments.
What to review: Review the updated pricing matrices for conventional loan balance adjustments, non-QM A-series risk tables, and debt service coverage ratio features applicable to best-efforts commitments. AWACS interpretation
Applies to: Conventional mortgages delivered under best efforts commitments.
What to review: Review the revised occupancy fee values and restructured Fannie Mae and Freddie Mac adjustment tables applicable to conventional best efforts commitments beginning November 3, 2026. AWACS interpretation
Applies to: Proprietary Jumbo and Non-QM loans committed under best efforts terms on or after October 30, 2026.
What to review: Review the revised pricing grids for Non-QM prepayment penalty price caps and Jumbo occupancy adjustments effective for best efforts commitments on or after October 30, 2026. AWACS interpretation
Applies to: Pennymac Non-QM loans (A-, A, A+, DSCR) on Ohio 1-2 unit properties and on Michigan properties, with applications dated October 22, 2026 or later.
What to review: None of these changes is mandatory: for applications dated October 22, 2026 or later, lenders may now add prepayment penalties to Pennymac Non-QM loans (A-, A, A+, DSCR) on Ohio 1-2 unit properties, capped at 1% of the unpaid balance for up to 5 years, and on Michigan properties, capped at 1% for up to 3 years, while Ohio 3-4 unit loans keep their current rules. AWACS interpretation
Applies to: USDA Rural Housing guaranteed purchase and refinance transactions delivered during the temporary fiscal year funding hiatus.
What to review: Review procedures for delivering USDA loans during funding lapses to ensure standard underwriting requirements are met and final loan note guarantees are tracked for post-closing delivery. AWACS interpretation
Applies to: Best Efforts Commitments taken with Pennymac from October 21, 2026, priced with the Conventional or Government LLPA grids.
What to review: Nothing in this record is marked mandatory, so secondary teams can start by comparing the revised Conventional loan balance adjustment value, along with the revised Government FICO adjustment grid mentioned in the summary, against the values they currently use for Best Efforts Commitments taken with Pennymac on or after October 21, 2026. AWACS interpretation
Applies to: Conventional primary-residence loans and Non-QM A-series and DSCR loans locked under Best Efforts commitments on or after October 22, 2026.
What to review: Neither change is marked mandatory, so secondary can start by comparing its Best Efforts pricing for commitments taken on or after October 22, 2026, against Pennymac's revised Conventional primary-residence adjustment grid and the new 1% prepayment penalty adjustment for Michigan and Ohio on the Non-QM A-series and DSCR tabs. AWACS interpretation
Applies to: Loans using legacy asset repayment methods must meet strict December 2026 delivery cutoffs, AUS Jumbo loans are prohibited from using accumulated asset income, and conventional loans may immediately adopt new accumulated asset guidelines.
What to review: Review the mandatory December 4, 2026 delivery deadline for loans using legacy asset repayment guidelines, followed by the optional accumulated asset income terms and the exclusion of AUS Jumbo loans. AWACS interpretation
Applies to: GSE loans with UAD 2.6 appraisals tied to the March 1 to May 19, 2027 reduced functionality period are not purchased; GSE loans with either format remain eligible through February 28, 2027, and the investor's non-agency lines may now use UAD 3.6 appraisals.
What to review: Review which loans in your pipeline have UAD 2.6 appraisals and could be delivered to Pennymac between March 1 and May 19, 2027, since Pennymac will not buy those loans; GSE loans may still use either UAD 2.6 or UAD 3.6 through February 28, 2027, and non-agency loans may now use UAD 3.6 appraisals. AWACS interpretation
Applies to: Closed-end second loans locked under Best Efforts Commitments on or after October 12, 2026.
What to review: Secondary should first review the updated maximum net price on the Additional Price Adjustments grid of Pennymac's CES pricing tab, which covers closed-end second loans locked under Best Efforts Commitments on or after October 12, 2026; the record does not mark this change as mandatory. AWACS interpretation
Applies to: Bulk conforming bids that use only VantageScore 4.0 must report a zero Classic FICO value on tapes and APIs; Fannie Mae and Freddie Mac loans no longer need a Classic FICO score or a dual-score tri-merge report.
What to review: First, confirm that every tape and API for a bulk conforming bid carrying only VantageScore 4.0 reports a zero Classic FICO score, effective immediately; then note that bulk deliveries may now use either Classic FICO or VantageScore 4.0, and that Fannie Mae and Freddie Mac loans no longer need a Classic FICO score or a tri-merge report showing both scores, while government and non-agency products still need Classic FICO. AWACS interpretation
Applies to: Conventional primary residence loans locked as Best Efforts Commitments on or after October 6, 2026.
What to review: Secondary should first look at the revised primary residence additional LLPA values on the Conv LLPAs tab, which Pennymac uses to price Conventional primary residence Best Efforts Commitments taken on or after October 6, 2026; the record marks this as a pricing update to review, not a mandatory change. AWACS interpretation
Applies to: Conventional GSE loans that use VantageScore 4.0 and are underwritten through DU or LPA; one score model must be applied to every borrower for both underwriting and pricing.
What to review: Start with your VantageScore 4.0 conventional GSE loans dated on or after 2026-10-02, and make sure one score model is used for every borrower in both underwriting and pricing; per the record's summary, a later update dropped the requirement for a tri-merge report showing both FICO and VS4 scores. AWACS interpretation
Applies to: Conventional and Government loans sold to Pennymac under Best Efforts Commitments taken on or after September 30, 2026.
What to review: Secondary should first check the revised Pennymac Conventional risk-based adjustment grid and Government FICO adjustment values for Conventional, FHA, USDA and VA loans sold under Best Efforts Commitments taken on or after September 30, 2026, because the record lists no mandatory changes. AWACS interpretation
Applies to: Standalone fixed-rate closed-end second lien loans sold to Pennymac by its correspondents under the new CES program.
What to review: Nothing here is mandatory: correspondents may now offer Pennymac's new standalone fixed-rate closed-end second program, which is available immediately, so underwriting and secondary should first review the CES product profile and the requirement for manual underwriting before deciding whether to take part. AWACS interpretation
Applies to: Eligible conventional and jumbo loans registered via best efforts commitments.
What to review: Review updated conventional pricing schedules to take advantage of the removal of the Texas fee adjustment on best efforts commitments beginning September 23, 2026. AWACS interpretation
Applies to: Conventional conforming mortgages locked on or after September 16, 2026.
What to review: Review the expanded conventional conforming loan limits scaling up to $850,000 for one-unit properties alongside appraisal requirements for loans ineligible solely due to balance and updated pricing grids. AWACS interpretation
Applies to: Non-QM loans submitted under proprietary investor programs on or after the stated September 2026 application date.
What to review: Review the mandatory ineligibility rules for builder-affiliated transactions and the two-cycle reserve requirement for departing residences missing pending-sale benchmarks effective September 4, 2026. AWACS interpretation
Applies to: Conventional loans committed under best efforts terms on or after September 2, 2026.
What to review: Review the revised primary residence pricing figures and improved adjustments for second home and investment property commitments taken on or after September 2, 2026. AWACS interpretation
Applies to: Eligible GSE, FHA, and VA loans incorporating temporary interest rate buydowns.
What to review: Review expanded temporary buydown guidelines that lower minimum credit scores to 620 or 660 depending on the rate reduction size and allow temporary buydowns on manufactured homes for conforming agency loans. AWACS interpretation
Applies to: Conventional investment property and second home mortgages delivered through best efforts commitments.
What to review: Review the pricing enhancements and revised loan-level price adjustments available for conventional second home and investment property best efforts commitments beginning August 25, 2026. AWACS interpretation
Applies to: Conventional loans committed under best efforts terms on or after the stated effective date.
What to review: Review updated footnote 9 on the conventional LLPA tab regarding the minimum loan amount greater than 400k and the exclusions for NY, FL, and TX on best efforts commitments. AWACS interpretation
Applies to: Jumbo 30-year fixed transactions with loan-to-value ratios exceeding 80 percent.
What to review: Review the new Jumbo 30-year fixed product grid for loans exceeding 80 percent LTV available starting August 7, 2026 to evaluate offering the new program option. AWACS interpretation
Applies to: Freddie Mac mortgages secured by properties featuring incomplete repairs, renovations, or C5 condition ratings.
What to review: Review Pennymac's overlay declining Freddie Mac property data report flexibilities for properties with repairs, renovations, or C5 condition ratings to ensure existing appraisal standards continue to be followed. AWACS interpretation
Applies to: Government loans secured by manufactured properties delivered as electronic mortgages.
What to review: Review the expanded policy allowing the optional electronic delivery of government manufactured home loans provided all relevant agency and investor guidelines are met. AWACS interpretation
Applies to: Non-QM loan applications taken on or after July 20, 2026.
What to review: Review updated Non-QM underwriting flexibilities that permit Kansas investment property prepayment penalties, allow landlord experience verification via the loan application REO schedule, accept a DSCR of 1.0 or higher for first-time investors, cap additional financed property reserves at 12 months, and clarify reserve stacking. AWACS interpretation
Applies to: Conventional mortgages locked under best-efforts commitments.
What to review: Review the elimination of the loan-level price adjustment on conventional loans featuring temporary interest rate buydowns for best-efforts commitments taken on or after July 14, 2026. AWACS interpretation
Applies to: Conventional, AUS Jumbo, and Non-QM loans secured by units in project developments.
What to review: Review the mandatory HO-6 property insurance coverage requirements for jumbo and non-QM project unit loans with application dates on or after 2026-07-01 where master policies omit interior elements or include unit deductibles. AWACS interpretation
Applies to: AUS Jumbo loan applications submitted on or after the June 2026 effective date.
What to review: Review the mandatory requirement to use Classic FICO credit scores for AUS Jumbo loan qualification and pricing effective June 25, 2026, followed by updated property insurance coverage standards and expanded 10-acre limits for agricultural land. AWACS interpretation
Applies to: Conventional cash-out refinance mortgages delivered under best efforts commitments.
What to review: Review pricing grids to take advantage of the removal of the supplemental cash-out price adjustment for eligible conventional best efforts commitments locked starting June 23, 2026. AWACS interpretation
Applies to: FHA financing secured by manufactured housing properties.
What to review: Review the consolidated standard FHA 203(b) product documentation to reference manufactured housing rules following the retirement of the standalone profile. AWACS interpretation
Applies to: Non-QM mortgage applications submitted on or after June 12, 2026.
What to review: Review the optional Non-QM guideline updates allowing up to sixty percent of cryptocurrency for reserves or asset depletion, written tax preparer attestations for bank statements, and project review waivers for condos with up to ten units. AWACS interpretation
Applies to: Freddie Mac loans needing pipeline pricing coverage and conventional mortgages evaluated under updated median income limits.
What to review: Review the mandatory June 30, 2026 delivery and July 14, 2026 purchase deadlines for Freddie Mac pipeline fee cap coverage first, followed by the June 13, 2026 rollout of 2026 GSE area median income limits and automated underwriting certificate submission rules. AWACS interpretation
Applies to: Conventional mortgages locked under best-efforts commitments beginning June 2, 2026.
What to review: Review the revised conventional loan-level price adjustments for eligible product features and loan balance tiers applicable to best efforts commitments beginning June 2, 2026. AWACS interpretation
Applies to: Non-conforming jumbo transactions and FHA mortgages locked under best efforts commitment contracts.
What to review: Review the revised pricing grids for jumbo transactions and the elimination of state-specific add-ons for government loan commitments taking effect on May 15, 2026. AWACS interpretation
Applies to: Non-QM debt service coverage ratio loans initiated on or after May 8, 2026.
What to review: Review the underwriting flexibilities for non-QM DSCR loans that eliminate credit inquiry reviews and remove the requirement for a cash flow analysis when using business accounts for funds. AWACS interpretation
Applies to: Conventional loans secured by second homes or investment properties locked under best efforts commitments.
What to review: Review the improved loan-level price adjustment schedule for conventional second home and investment property commitments effective 2026-05-04. AWACS interpretation
Applies to: Non-QM loans locked under best efforts commitments on or after the effective date.
What to review: Review the enhanced loan-level price adjustment grids to identify pricing updates across eligible full and alternate documentation Non-QM loans. AWACS interpretation