AWACSMortgage compliance intelligence from Flightline

Pennymac Correspondent · Correspondent Announcement 26-91 · Published

PDR Policy for Properties with Repairs or Incomplete Construction

Pennymac has chosen not to adopt Freddie Mac's policy allowing property data reports for incomplete construction, renovations, or C5 condition ratings. Correspondent lenders must continue following existing appraisal standards for these transactions.

Review recommendedIn effect nowChecks passed· adjusted automaticallyRead the announcement ↗ (opens in a new tab)

Loan impact

Summarized from the announcement · needs review

Applies to: Freddie Mac mortgages secured by properties featuring incomplete repairs, renovations, or C5 condition ratings.

Addressed to
Pennymac correspondent sellersFrom the publisher, not quoted from the text
Investor
PennymacFrom the publisher, not quoted from the text
Affected areas
Valuation; Eligibility
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
Property Data Report eligibility for incomplete work or C5 conditionTightenedNot statedPennymac declines to adopt Freddie Mac's allowance of property data reports for incomplete construction, renovations, or C5 condition ratings.

What to do

AWACS interpretation · not source language

What to review: Review Pennymac's overlay declining Freddie Mac property data report flexibilities for properties with repairs, renovations, or C5 condition ratings to ensure existing appraisal standards continue to be followed.

QC implications

  • Sample conventional Freddie Mac files with incomplete construction, renovations, or C5 condition ratings to verify that property data reports were not accepted in place of standard appraisals.

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 a detail; it was downgraded, never upgraded

  • 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.