AWACSMortgage compliance intelligence from Flightline

Pennymac Correspondent · Correspondent Announcement 26-124 · Published

Freddie Mac Policy Alignment on Asset Repayment Retirement and New Accumulated Asset Rules

Correspondent sellers must deliver loans qualified under retiring asset repayment guidelines by December 4, 2026, with purchases concluding by December 31, 2026. Updated accumulated asset income standards are available for early adoption but cannot be used on AUS Jumbo loans.

Action requiredEffective Dec 4, 2026Checks passed· adjusted automaticallyRead the announcement ↗ (opens in a new tab)

Loan impact

Summarized from the announcement · needs review

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.

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
Affected areas
Contracts; Income from accumulated assets; Eligibility
Affected documents
Third party verification reports; depository and asset account statements
Exceptions
AUS Jumbo products excluded from accumulated asset qualifying
Effective
Dec 4, 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
Delivery cutoff for legacy asset repayment loansTightenedRequiredNot statedLenders must deliver files qualified under asset repayment rules to the investor by December 4, 2026.
Final purchase date for legacy asset repayment loansClarifiedNot statedThe investor will conclude purchasing loans under the outgoing asset repayment rules on December 31, 2026.
AUS Jumbo program eligibility for accumulated asset incomeTightenedNew requirementOriginators are barred from using accumulated asset income calculations on AUS Jumbo loans.
Applies when: Program is Jumbo
Immediate implementation of accumulated asset income rulesRelaxedNot statedOriginators may elect to begin using the new accumulated asset guidelines ahead of the official mandate.
Retirement of asset repayment qualifying optionRemovedNot statedAsset repayment calculations are completely discontinued across all products for qualifying purposes.
Calculation divisor for accumulated asset incomeChangedPreviously: The monthly calculation divisor was 240 months.The required divisor to calculate qualifying income is reduced to 180 months.
LTV restriction for accumulated asset qualifyingRelaxedNot statedLoan-to-value limits now align directly with standard program caps rather than an eighty percent ceiling.
Minimum eligible net asset thresholdClarifiedNew requirementA minimum threshold of thirty thousand dollars in qualifying net assets is established.
Age restriction on depository and securities accountsRelaxedNot statedThe sixty-two-year age requirement to count depository and investment accounts is removed.
Account seasoning and withdrawal accessibilityClarifiedNot statedQualifying accounts must be owned for a minimum of 12 months, with penalty-free access available as of the note date.
Depository account balance fluctuation limitsClarifiedNot statedBalances in depository accounts cannot fluctuate more than twenty percent without documented legitimate causes. Does not apply to: Depository fluctuations resulting from documented eligible transfers or property and business sales.
Underwriting decision and eligible transactionsTightenedNew requirementAccumulated asset loans must be an Accept mortgage and remain limited to purchase or no cash-out refinance transactions.

What to do

AWACS interpretation · not source language

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.

Secondary

Deliver files qualified under legacy asset repayment rules to the investor by December 4, 2026.

QC implications

  • Verify that loans qualifying under legacy asset repayment guidelines meet the December 4, 2026 delivery cutoff.
  • Confirm that accumulated asset income calculations are not applied to AUS Jumbo loans.
  • Ensure that early-adopted accumulated asset loans apply the 180-month divisor, meet the thirty thousand dollars minimum net asset threshold, and satisfy the 12-month ownership requirement.
  • Check that depository account balance fluctuations exceeding twenty percent have documented eligible causes.
  • Confirm that accumulated asset loans receive an Accept recommendation and are limited to purchase or no cash-out refinance transactions.

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 loan-impact detail without a supporting quote was removed
    • 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
    • An independent check could not confirm which way a change moves a rule; it is not marked as required

  • In scope: Passed

    The document is about residential mortgage lending.

  • Format and labels: Passed, adjusted automatically

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

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