Loan impact
Summarized from the bulletin · verifiedApplies to: Conventional agency loans secured by properties within condominium developments.
- ANDPennymac loan
- ANDProperty type: condo
- ANDType is condo
- Addressed to
- Pennymac correspondent sellersFrom the publisher, not quoted from the text
- Investor
- PennymacFrom the publisher, not quoted from the text
- Property types
- Condo
- Affected areas
- Condo projects; Eligibility
- Affected documents
- Project review waiver documentation
- Exceptions
- Non-agency loan programs such as AUS Jumbo and Non-QM
- 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 bulletin| Requirement | Previously | Now |
|---|---|---|
| Condo project review waiver eligibilityRelaxed | Previously: Limited to developments containing two to four units. | Extended to developments containing up to ten units that are not part of larger developments or master associations. |
| Applies when: All loan-impact conditions above | ||
| Project review process for attached Florida new construction condosRelaxed | Previously: Required agency project review approval status or CPM acceptance. | Permits full review assessment through standard delegated underwriting authority. |
| Applies when: All loan-impact conditions above · State is FL | ||
| Established condo investor concentration limitsRelaxed | Not stated | Investor concentration restrictions are eliminated for established developments. |
| Applies when: All loan-impact conditions above · Occupancy is investment | ||
What to do
AWACS interpretation · not source languageWhat to review: Review the expanded condominium underwriting flexibilities that permit project review waivers for developments up to ten units, allow delegated full reviews on attached Florida new construction, and remove investor concentration limits for established projects.
QC implications
- Sample conventional condo loans utilizing project review waivers to ensure the developments contain no more than ten units and are not attached to master associations or larger developments.
- Verify that new construction attached Florida condominium projects evaluated under standard delegated authority meet all full review criteria.
- Check established condominium project files to ensure investor concentration restrictions are no longer enforced as a condition of eligibility.
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, adjusted automatically
Every quoted passage appears word for word in the official document.
- A detail the source does not support was removed or adjusted
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, adjusted automatically
The record follows the AWACS format and uses its standard labels.
- A detail the source does not support was removed or adjusted
Source
- Investor Bulletin Announcement 26-41 (official) ↗ (opens in a new tab)
- Archived copy, SHA-256 dfecdb6cf689…
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