AWACSMortgage compliance intelligence from Flightline

Pennymac Correspondent · Correspondent Announcement 26-126 · Published

Pennymac updates Conventional and Non-QM loan-level price adjustments

For Best Efforts commitments taken on or after October 22, 2026, Pennymac is changing the values in its Conventional grid of extra price adjustments for primary residences. It is also adding a new price adjustment, with a footnote, for a 1% prepayment penalty in Michigan and Ohio on its Non-QM A-series and DSCR tabs.

Review recommendedEffective Oct 22, 2026Checks passed· adjusted automaticallyRead the announcement ↗ (opens in a new tab)

Loan impact

Summarized from the announcement · needs review

Applies to: Conventional primary-residence loans and Non-QM A-series and DSCR loans locked under Best Efforts commitments on or after October 22, 2026.

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, Non-QM
Affected area
Products
Effective
Oct 22, 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
Conventional extra price adjustments for primary residencesChangedNot statedRevised values in the primary-residence adjustment grid
Applies when: Occupancy is primary · Program is Conventional
Non-QM price adjustment for a prepayment penalty in Michigan and OhioNewNew requirementNew 1% prepayment penalty adjustment for MI and OH, with a footnote, on the A-series and DSCR tabs

What to do

AWACS interpretation · not source language

What to review: Neither change is marked mandatory, so secondary can start by comparing its Best Efforts pricing for commitments taken on or after October 22, 2026, against Pennymac's revised Conventional primary-residence adjustment grid and the new 1% prepayment penalty adjustment for Michigan and Ohio on the Non-QM A-series and DSCR tabs.

QC implications

  • QC may sample Conventional primary-residence loans locked under Best Efforts commitments on or after October 22, 2026, to confirm the price adjustments match Pennymac's revised primary-residence grid.
  • QC may check Non-QM A-series and DSCR loans with a 1% prepayment penalty in Michigan or Ohio, locked under Best Efforts on or after October 22, 2026, to confirm the new adjustment and its footnote were applied.

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, adjusted automatically

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

    • An independent check could not confirm which loans a change applies to; those conditions were removed

  • 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.