AWACSMortgage compliance intelligence from Flightline

Pennymac Correspondent · Investor Announcement 26-65 · Published

Revisions to Non-QM Underwriting and Project Review Standards

Pennymac has revised guidelines for Non-QM loans by expanding reserve and asset depletion options to include cryptocurrency and annuities, expanding small condo project waivers, and removing certain Florida condo requirements. The investor also clarified Classic FICO usage, housing payment history rules, and bank statement review standards.

Review recommendedApplications dated on or after Jun 12, 2026Checks passed· adjusted automaticallyRead the announcement ↗ (opens in a new tab)

Loan impact

Summarized from the announcement · needs review

Applies to: Non-QM mortgage applications submitted on or after June 12, 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
Non-QM
Affected areas
Reserves; Credit score model; Self employed; Condo projects
Affected documents
Profit and loss statement; cryptocurrency asset statements; condominium project documentation
Effective
Applications dated on or after Jun 12, 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
Classic FICO score model usageClarifiedNot statedClassic FICO remains mandatory for borrower qualification and loan pricing without exception
Cryptocurrency reserve eligibilityRelaxedNot statedBorrowers may count up to sixty percent of cryptocurrency market value toward reserves without liquidating
Dividend and interest reserve eligibilityRelaxedNot statedIncome generated from dividends and interest is accepted to satisfy reserve requirements
Life insurance and annuity asset depletion eligibilityRelaxedNot statedFull cash surrender value for life insurance policies and annuities is eligible under asset depletion qualifying
Applies when: Credit program is A or A+
Cryptocurrency asset depletion eligibilityRelaxedNot statedSixty percent of digital currency valuation is eligible under asset depletion qualifying
Applies when: Credit program is A or A+
Housing payment verification timeframeClarifiedNot statedApplicants with less than twenty-four months of housing history must provide complete payment records for all open months
Applies when: Credit program is A-, A or A+
Bank statement tax professional review standardRelaxedPreviously: A tax professional had to conduct a complete audited review of financial statementsA licensed tax preparer must attest to reviewing financial records or work papers rather than performing an audit
Applies when: Credit program is A-, A or A+
Condo project waiver unit ceilingRelaxedNot statedWaivers of project review are permitted for condo communities with up to ten total units
Applies when: Type is condo
Florida condominium SIRS timing reviewRemovedNot statedThe pre-closing forty-eight-hour structural reserve study review mandate is eliminated
Applies when: State is FL · Type is condo
Property and hazard insurance guidelinesClarifiedNot statedCoverage standards for residential properties and master condominium or PUD policies are updated to match Fannie Mae requirements

What to do

AWACS interpretation · not source language

What to review: Review the optional Non-QM guideline updates allowing up to sixty percent of cryptocurrency for reserves or asset depletion, written tax preparer attestations for bank statements, and project review waivers for condos with up to ten units.

QC implications

  • Sample Non-QM files utilizing cryptocurrency for reserves or asset depletion to verify documented ownership and Coinbase valuation dated within thirty days prior to the note date at or below sixty percent.
  • Verify that asset depletion calculations on A and A+ credit programs apply the full cash surrender value for life insurance policies and annuities.
  • Review self-employed bank statement files in A-, A, and A+ programs to confirm a licensed tax preparer provided written attestation of reviewing business records or work papers instead of an audit.
  • Confirm that borrowers with less than twenty-four months of housing history provide complete records for all open months under applicable credit tiers.
  • Test condominium files to verify project review waivers are limited to developments with ten or fewer total units.

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 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, adjusted automatically

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

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