Loan impact
Summarized from the announcement · verifiedApplies to: Agency-eligible conventional loans delivered during the GSE reduced functionality phase, alongside non-agency offerings utilizing redesigned valuation reports.
Scope differs by change; see each change below.
- Addressed to
- Pennymac correspondent sellersFrom the publisher, not quoted from the text
- Investor
- PennymacFrom the publisher, not quoted from the text
- Programs
- Conventional, Jumbo, Non-QM
- Affected areas
- Report format; Eligibility
- Affected documents
- Appraisal report
- Effective
- Mar 1, 2027
- 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| Requirement | Previously | Now |
|---|---|---|
| Legacy appraisal report purchase eligibility during reduced functionalityTightenedRequired | Not stated | The investor will decline purchasing agency loans supported by legacy valuation datasets completed during the reduced functionality interval. |
| Applies when: Uad version is 2_6 · Program is Conventional | ||
| Redesigned appraisal format eligibility for non-conforming productsRelaxed | Not stated | Valuation reports under the modernized standard are now permissible on eligible non-agency, second lien, and jumbo programs. |
| Applies when: Uad version is 3_6 | ||
What to do
AWACS interpretation · not source languageWhat to review: Review delivery pipelines to enforce the March 1, 2027 cutoff for conventional loans using legacy valuation reports completed during the reduced functionality interval, along with the immediate flexibility allowing modernized appraisal formats on non-agency products.
Cease delivering conventional loans supported by legacy valuation datasets completed during the reduced functionality interval starting March 1, 2027.
Ensure conventional loans are not approved with legacy appraisal reports completed during the reduced functionality interval beginning March 1, 2027.
Discontinue the use of legacy appraisal datasets for conventional loans completed during the reduced functionality period starting March 1, 2027.
QC implications
- Sample conventional loans delivered on or after March 1, 2027, to confirm that appraisals completed during the reduced functionality timeframe do not contain legacy datasets.
- Audit non-agency, second lien, and jumbo files that adopt the modernized appraisal standard to ensure the reports meet program requirements.
Source and record
Version 1 · archivedChecks
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.
Source
- Announcement 26-121 (official) ↗ (opens in a new tab)
- Archived copy, SHA-256 51c2cfb994f3…
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