AWACSMortgage compliance intelligence from Flightline

Pennymac Correspondent · Announcement 26-114 · Published

Closed-End Second Lien Product Announcement

Pennymac has launched a closed-end second mortgage offering for its correspondent channel. The standalone subordinate financing option allows loan sizes up to $500,000 with a maximum 85 percent combined loan-to-value ratio.

Review recommendedIn effect nowAll checks passedRead the announcement ↗ (opens in a new tab)

Loan impact

Summarized from the announcement · verified

Applies to: Corresponds to newly originated standalone second-lien mortgages delivered through the correspondent lending channel.

Addressed to
Pennymac correspondent sellersFrom the publisher, not quoted from the text
Investor
PennymacFrom the publisher, not quoted from the text
Affected area
Products
Applicability confidence
Verified: every row taken from the source text is supported by it; rows marked "from the publisher" are not quoted

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
Standalone closed-end subordinate mortgage program availabilityRelaxedNew requirementApproved correspondent lenders may now originate and deliver loans under the newly released closed-end second mortgage offering.

What to do

AWACS interpretation · not source language

What to review: Review the newly launched closed-end second mortgage product terms to evaluate offering standalone subordinate financing through the correspondent channel.

QC implications

  • Quality control may sample closed-end second mortgage deliveries to verify they meet product guidelines if the lender participates in the new offering.

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

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

  • Requirements backed by the source: Passed

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

  • 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.