AWACSMortgage compliance intelligence from Flightline

Pennymac Correspondent · Investor Announcement 26-48 · Published

Freddie Mac Manufactured Housing Cash-Out Refinance Term Increase

Pennymac has updated underwriting terms to reflect Freddie Mac guidelines for manufactured properties. Borrowers completing a cash-out refinance on an eligible manufactured home may now utilize amortization terms extending up to thirty years.

InformationalAUS submissions on or after Apr 12, 2026All checks passedRead the announcement ↗ (opens in a new tab)

Loan impact

Summarized from the announcement · verified

Applies to: Conventional manufactured home cash-out refinance mortgages underwritten through Loan Product Advisor.

Applies when all of these are true
  • ANDPennymac loan with a Lpa
  • ANDCash-out refinance
  • ANDProperty type: manufactured
  • ANDEngine is lpa
  • ANDAus submission date on or after April 12, 2026
  • ANDPurpose is cash_out_refi
  • ANDType is manufactured
Addressed to
Pennymac correspondent sellersFrom the publisher, not quoted from the text
Investor
PennymacFrom the publisher, not quoted from the text
Programs
Lpa only
Loan purpose
Cash-out refinance
Property types
Manufactured
Affected area
Products
Effective
AUS submissions on or after Apr 12, 2026
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
RequirementPreviouslyNow
Manufactured home cash-out refinance maximum loan termRelaxedPreviously: 20 years30 years

Each change applies when all the loan-impact conditions above are true.

What to do

AWACS interpretation · not source language

What to review: Review the guideline flexibility allowing loan terms of up to 30 years on conventional manufactured home cash-out refinances underwritten through Loan Product Advisor.

QC implications

  • Sample cash-out refinance loans on manufactured homes submitted to LPA on or after 2026-04-12 to ensure amortization terms do not exceed 30 years.

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

    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.