AWACSMortgage compliance intelligence from Flightline

Pennymac Correspondent · Investor Announcement 26-110 · Published

Higher Conforming Loan Limits and Updated Pricing Grids for Conventional Mortgages

Pennymac has expanded maximum conventional conforming loan amounts up to $850,000 for single-family residences ahead of federal announcements. Delivered mortgages exceeding standard agency limits require full appraisal valuations, and updated loan balance pricing adjustments apply to new commitments.

Review recommendedEffective Sep 16, 2026Checks passed· adjusted automaticallyRead the announcement ↗ (opens in a new tab)

Loan impact

Summarized from the announcement · needs review

Applies to: Conventional conforming mortgages locked on or after September 16, 2026.

Addressed to
Pennymac correspondent sellersFrom the publisher, not quoted from the text
Investor
PennymacFrom the publisher, not quoted from the text
Programs
Conventional
Affected areas
Waiver; Eligibility; Products
Affected documents
Appraisal report; automated underwriting findings; credit report
Exceptions
Government loan programs
Effective
Sep 16, 2026
Applicability confidence
Needs review: some rows could not be matched to a quote from the source

Summary by AWACS. Pennymac Correspondent's guide is proprietary, so AWACS does not reproduce its text. Read the official announcement ↗ (opens in a new tab)

What changed

Summarized from the announcement
RequirementPreviouslyNow
Maximum conforming loan limitsRelaxedPreviously: Baseline conforming caps stood at $832,750 for one-unit properties and scaled to $1,601,750 for four units, with higher ceilings for Alaska and Hawaii.Baseline conforming caps rise to $850,000 for one-unit properties and scale to $1,634,950 for four units, with higher ceilings for Alaska and Hawaii.

What to do

AWACS interpretation · not source language

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.

QC implications

  • Sample conventional loans utilizing the higher conforming caps to confirm full property appraisals were obtained if automated underwriting findings were ineligible based solely on loan size.
  • Check that automated underwriting findings are re-run within one week of official limit updates when required, ensuring credit reports do not exceed one hundred twenty days of age at the time of the refresh.

Source and record

Version 1 · archived

Checks

  • Source verified: Passed

    The document ID, link and publication date match the official source.

  • Quotes match the source: Passed, adjusted automatically

    Every quoted passage appears word for word in the official document.

    • A detail the source does not support was removed or adjusted

  • Requirements backed by the source: Passed, adjusted automatically

    Anything marked required is backed by the requirement language and dates in the source.

    • A detail the source does not support was removed or adjusted

  • In scope: Passed

    The document is about residential mortgage lending.

  • Format and labels: Passed

    The record follows the AWACS format and uses its standard labels.