Loan impact
Summarized from the announcement · needs reviewApplies to: Conventional loans sold to Pennymac underwritten under Freddie Mac 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
- Affected areas
- Valuation; General; Eligibility
- Affected documents
- Property disclosure report; tax abatement documentation
- Exceptions
- Loans utilizing Freddie Mac Option Two for future income
- 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| Requirement | Previously | Now |
|---|---|---|
| Qualifying with hourly earnings commencing after note dateClarified | Not stated | Hourly pay may be utilized if earnings are non-fluctuating and minimum weekly hours or raises are documented. |
| Using reduced real estate tax amounts for debt ratio qualificationClarified | Not stated | Lower tax figures may be factored into housing ratios on primary dwellings when reduction and five-year continuance are supported. |
| Applies when: Occupancy is primary | ||
| Evaluating property disclosure statements on purchase transactionsClarified | Not stated | Lenders must review available disclosure forms for adverse marketability or condition defects and deliver them to appraisers if issues exist. |
| Applies when: Purpose is purchase | ||
What to do
AWACS interpretation · not source languageWhat to review: Review guidance allowing non-fluctuating future hourly earnings, qualifying debt ratios with documented five-year real estate tax abatements on primary residences, and the assessment of property disclosures on purchase loans.
QC implications
- Sample purchase files to verify that property disclosure reports were reviewed for adverse marketability or condition defects and shared with appraisers when issues were identified.
- Examine loans qualifying with post-note-date hourly wages to verify documentation of non-fluctuating earnings and minimum weekly hours or scheduled raises.
- Audit primary residence loans utilizing reduced property tax figures to ensure evidence supports the tax abatement and its continuation for at least five years.
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, 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
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
- Investor Announcement 26-64 (official) ↗ (opens in a new tab)
- Archived copy, SHA-256 6db7cf51a4cc…
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