Retirement of Asset-Based Qualification and Introduction of Accumulated Assets as Income

Applies to: Conventional mortgages utilizing accumulated assets as qualifying income, with automated jumbo products excluded.

Addressed to

Pennymac correspondent sellersFrom the publisher, not quoted from the text

Investor

PennymacFrom the publisher, not quoted from the text

Programs

Jumbo

Affected area

Income from accumulated assets

Affected documents

Asset verification statements; depository account statements

Exceptions

automated underwriting jumbo loans

Effective

Feb 3, 2027

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 to review: Review the guidelines allowing accumulated assets as income in place of the retiring asset repayment calculation, including the removed age sixty-two restriction, the one hundred eighty month divisor, and the exclusion of automated jumbo mortgages.

QC implications

• Sample loans utilizing accumulated assets as income to confirm that automated jumbo loans do not use this qualification method.
• Test that qualifying applicants hold at least thirty thousand dollars in net eligible assets and accounts are held for twelve months or longer with penalty-free access as of the note date.
• Verify that depository balances do not fluctuate by more than twenty percent without documented eligible transfers or transactions.
• Check that loans using accumulated assets reflect an Accept recommendation, are limited to purchase or no cash-out refinance transactions, and apply the one hundred eighty months divisor.