GNMAThe Government National Mortgage Association and any successor thereto.GSEFannie Mae or Freddie Mac. Together, Fannie Mae and Freddie Mac may be referred to as the 'GSEs.'Ginnie Mae or GNMAThe Government National Mortgage Association and any successor thereto.GuideThe PennyMac Corp. Seller's Guide, as the same may be amended from time to time. H
Hazardous SubstancesAny substances, materials or waste that are or become regulated under applicable federal, state or local laws or regulations or that are classified as hazardous or toxic under federal, state or local laws or regulations. I
IndexWith respect to each ARM Loan, the Index shall mean a referenced rate that is added to the Margin to compute the Mortgage Interest Rate for such ARM Loan, as such Mortgage Interest Rate may be adjusted from time to time in accordance with the provisions of the related Mortgage Note.Initial Note RateThe initial rate at which interest accrues on an ARM Loan until the first Interest Adjustment Date.Interest Adjustment DateWith respect to each ARM Loan, the date on which an adjustment to the Mortgage Interest Rate on the related Mortgage Note becomes effective. L
Lifetime Mortgage Interest Rate CapThe absolute maximum Mortgage Interest Rate payable with respect to an ARM Loan, above which the Mortgage Interest Rate shall not be adjusted, as provided in accordance with the provisions of the Mortgage Note.Loan Prospector or LPFreddie Mac's proprietary AUS.Loan Purchase AgreementThe Mortgage Loan Collectively, the MLPA, by and between the Seller and the Purchaser, and the Guide, as each may be amended, supplemented or otherwise modified from time to time, together with any Confirmations and Funding Schedules executed or otherwise submitted and accepted in connection therewith.Loan-to-Value Ratio (LTV)With respect to any Mortgage Loan, the ratio of the original principal balance of a Mortgage Loan to the Appraised Value of the Mortgaged Property. M
MERSMortgage Electronic Registration Systems, Inc. and any successor thereto.MERS Mortgage LoanAny Mortgage Loan registered with MERS on the MERS System.MERS SystemThe electronic system of recording transfers of mortgages maintained by MERS.MI or Mortgage InsuranceInsurance that covers the lender against a percentage of the losses it might sustain on a Mortgage Loan as a result of a default by the Mortgagor of his or her obligation to make the required Monthly Payments.MINThe mortgage identification number assigned by MERS to each MERS Mortgage Loan for the purpose of tracking the related Mortgage within the MERS System.MLPAThe Mortgage Loan Purchase Agreement, by and between Seller and Purchaser, as the same may be amended, supplemented or otherwise modified from time to time.Mandatory Trade ConfirmationA confirmation of the intent by Seller to sell, and Purchaser to purchase, a specific Mortgage Loan at a specific price. Seller is required to close and deliver each Mortgage Loan subject to a Mandatory Trade Confirmation on or prior to the Delivery Due Date and on such other terms as are set forth in the related Mandatory Trade Confirmation. If Seller closes a Mortgage Loan subject to a Best Efforts Lock Confirmation, the related Best Efforts Lock Confirmation shall become a Mandatory Trade Confirmation, and Seller's delivery of such Mortgage Loan to Purchaser shall be required, regardless of whether the related Best Efforts Lock Confirmation subsequently expires.MarginWith respect to each ARM Loan, the percentage amount set forth in the related Mortgage Note that is added to the Index to compute the Mortgage Interest Rate for such ARM Loan, as such Mortgage Interest Rate may be adjusted from time to time in accordance with the provisions of the related Mortgage Note.Maximum Loan AmountThe maximum origination-date principal balance of a Mortgage Loan eligible for delivery to an Agency under its guidelines, as such guidelines may be amended from time to time.Monthly PaymentThe scheduled monthly payment of principal and interest on a Mortgage Loan.MortgageThe mortgage, deed of trust or other such instrument that creates a first lien on an unsubordinated estate in fee simple in real property securing the Mortgage Note or a first lien upon a leasehold estate of the Mortgagor, as the case may be.Mortgage Debt-to-Income RatioA ratio derived by dividing a prospective Mortgagor's total Monthly Payment by his or her gross monthly income.Mortgage FileThe file containing the Mortgage Loan Documents, all other documents in connection with the origination of a particular Mortgage Loan, all appraisals and/or appraisal reviews and/or any property valuations relating to a Mortgaged Property, and all documents, files and other information reasonably necessary to service the Mortgage Loans.Mortgage InsuranceInsurance that covers the lender against a percentage of the losses it might sustain on a Mortgage Loan as a result of a default by the Mortgagor of his or her obligation to make the required Monthly Payments.Mortgage Insurance Contract UnderwritingApproval level that allows approved companies to underwrite and issue loan approvals on Mortgage Loans Seller intends to submit to Purchaser for purchase.Mortgage Interest RateThe annual rate at which interest accrues on any Mortgage Loan, exclusive of any primary mortgage insurance and, if applicable, as adjusted from time to time in accordance with the provisions of the related Mortgage Note.Mortgage LoanA mortgage loan that is sold pursuant to the Agreement, which Mortgage Loan includes, without limitation, the Mortgage Loan Documents, the Mortgage File, the Monthly Payments, Principal Prepayments, any related Escrow Accounts, the Servicing Rights and all other rights, benefits, proceeds and obligations arising from or in connection with such Mortgage Loan.Mortgage Loan DocumentsThe following documents pertaining to any Mortgage Loan: (a) the original Mortgage Note, together with any applicable addendums, riders or modifications thereto, bearing all intervening endorsements as may be necessary to show a complete chain of endorsements, endorsed 'Pay to the order of _____________, without recourse' and signed in the name of Seller by an authorized officer; (b) the original Assignment of Mortgage for each Mortgage Loan (except for MERS Mortgage Loans) from the Seller to blank; (c) the original or certified copies of each assumption agreement, modification agreement, consolidation or extension agreement, written assurance or substitution agreement, if any; (d) if any of the Mortgage Loan Documents was executed pursuant to a power of attorney or other instrument that authorized or empowered such person to sign, the original power of attorney with evidence of recording thereon; (e) the original Mortgage (and, if the related Mortgage Loan grants the Mortgage to MERS rather than to the original lender, then the MIN and language indicating that such Mortgage Loan is a MERS Mortgage Loan) with evidence of recordation noted thereon or attached thereto, together with any addenda or riders thereto, or a copy of such recorded Mortgage with such evidence of recordation certified to be true and correct by the appropriate governmental recording office, or if the original Mortgage has been submitted for recordation but has not been returned from the applicable public recording office or is not otherwise available, a copy of the Mortgage certified by an officer of the original servicer or by the title insurance company providing title insurance in respect of such Mortgage, the closing/settlement-escrow agent or the closing attorney to be a true and complete copy of the original Mortgage submitted for recordation; (f) each original intervening Assignment of Mortgage as may be necessary to show a complete chain of title, with evidence of recording thereon or attached thereto, or a copy of such Assignment of Mortgage with such evidence of recordation certified to be true and correct by the appropriate governmental recording office, or, if any such Assignment of Mortgage has been submitted for recordation but has not been returned from the applicable public recording office or is not otherwise available, a copy of such Assignment of Mortgage certified by an officer to be a true and complete copy of the recorded Assignment of Mortgage or the Assignment of Mortgage submitted for recordation (except for MERS Mortgage Loans, in which case, the originals of all intervening Assignments of Mortgage with evidence of recording thereon prior to the intervening Assignment of Mortgage to MERS, if any); (g) the original policy of title insurance or a copy of such title insurance policy certified as true and correct by the applicable insurer or an attorney's certificate of title with an officer's certificate of the original servicer that such attorney's certificate of title is customarily used in lieu of a title insurance policy in the jurisdiction in which the related mortgaged property is located; and (h) the original of any loan agreement or guaranty executed in connection with the Mortgage Note, if any; and the original Primary Mortgage Insurance Policy, if applicable.Mortgage NoteThe note or other evidence of the indebtedness with respect to a Mortgage Loan.Mortgaged PropertyThe real property securing repayment of the debt evidenced by a Mortgage Note. N
NOONon Owner Occupied.Net Escrow PaymentsEscrow Payment balances remaining after advances by the Seller for taxes and insurance to the extent documented under a detailed statement provided to the Purchaser.Note RateThe annual rate at which interest accrues on the unpaid principal balance of a Mortgage Loan, as provided in accordance with the provisions of the related Mortgage Note. P
PMI LoanA Mortgage Loan covered by a Primary Mortgage Insurance Policy as of the related Funding Date.Pair-Off FeeA fee charged to Seller for its failure to complete the Delivery of a Mortgage Loan subject to a Purchase Commitment or Mandatory Trade Confirmation on or prior to the Delivery Due Date and on such other terms as are set forth in the related Purchase Commitment or Mandatory Trade Confirmation.Pennymac Careers
Payment Due DateThe day of the month on which a Monthly Payment is due on a Mortgage Loan, exclusive of any days of grace.Periodic Mortgage Interest Rate CapWith respect to each ARM Loan, the absolute maximum amount by which the Mortgage Interest Rate may increase or decrease on an Interest Adjustment Date above the Mortgage Interest Rate previously in effect, as provided in accordance with the provisions of the Mortgage Note.Prepayment PenaltyAn amount payable by the Mortgagor in connection with any Principal Prepayment(s) that exceed(s) allowable thresholds as set forth in the Mortgage Note and/or any riders or addenda thereto.Prepayment Penalty OptionA provision in a Mortgage Loan that requires the Mortgagor to pay a Prepayment Penalty in specified instances as set forth in the Mortgage Note and/or any riders or addenda thereto.Primary Mortgage Insurance PolicyA policy of primary mortgage guaranty insurance issued by a Qualified Insurer, providing coverage at least equal to the level of coverage required by the Agencies as of the Funding Date.Principal PrepaymentAny payment or other recovery of principal on a Mortgage Loan which is received in advance of its scheduled Due Date, including any prepayment penalty or premium thereon, which is not accompanied by an amount of interest representing scheduled interest due on any date or dates in any month or months subsequent to the month of prepayment.ProductA specific type of Mortgage Loan product available for sale to Purchaser by Seller as set forth in the Agreement.PurchasableThe status given to a Mortgage Loan as to which all underwriting, pre-purchase review and/or documentation conditions have been satisfied by Seller and approval for purchase has been given by Purchaser.Purchase CommitmentA commitment by Seller to sell, and Purchaser to purchase, on a bulk basis, one or more Mortgage Loan(s) possessing certain characteristics, on such terms and pricing as the parties agree on or before the Delivery Due Date.Purchase PriceThe purchase price to be paid by the Purchaser for each Mortgage Loan which, unless otherwise specified in the related Confirmation, shall equal the product of (a) the Purchase Price Percentage times (b) the Stated Principal Balance of the Mortgage Loan, less any fees or discounts due to the Purchaser.Pennymac Login Account
Purchase Price PercentageThe purchase price percentage set forth in the Confirmation to be used in computing the Purchase Price for the related Mortgage Loan. Q
Qualified InsurerAn insurance company duly authorized, licensed and/or qualified as such under the laws of the state in which it transacts the applicable insurance business and to underwrite the insurance provided, approved as an insurer by the Agencies and the claims paying ability of which is rated in the two highest rating categories by the Standard & Poor's Ratings Group or Moody's Investors Service with respect to primary mortgage insurance and in the two highest rating categories by A.M. Best with respect to hazard and flood insurance. R
RESPAThe Real Estate Settlement Procedures Act, as amended.Repurchase PriceThe repurchase price for a Mortgage Loan subject to a repurchase obligation under the Agreement shall be as follows: 1) the current unpaid principal balance; plus 2) all accrued and unpaid interest on the Mortgage Loan from the last date through which interest has been paid through and including the last day of the month in which the Seller repurchases the Mortgage Loan; plus 3) the original SRP, if any, paid by Purchaser with respect to such Mortgage Loan or the greater of premium paid in excess to par or 100 bps of the purchased loan amount if the loan is not eligible for sale to an Agency; plus 4) any unreimbursed servicing or escrow advances made by Purchaser with regard to such Mortgage Loan as of the date of repurchase; plus 5) any and all costs and expenses, including, but not limited to, reasonable fees and expenses of counsel incurred by Purchaser as a result of any breach by Seller of its representations and warranties under the Agreement, to enforce Seller's obligation to repurchase such Mortgage Loan and/or to foreclose on such Mortgage Loan; plus 6) an administrative fee of $3,000; plus 7) if applicable, all interest accrued at the Mortgage Interest Rate in respect of such Mortgage Loan on the aggregate of the amounts set forth in 1) through 6) of this definition (net of any proceeds received by the Purchaser), from the last day of the month in which a foreclosure sale occurred to but excluding the date of repurchase; less 8) any proceeds of mortgage insurance collected by Seller and attributable to such Mortgage Loan, less 9) the net proceeds of any foreclosure sale to a third party (sale price minus costs and expenses, including but not limited to reasonable fees and expenses of counsel incurred by Purchaser in connection with the foreclosure sale).RescissionThe cancellation or annulment of a transaction or contract by the operation of law or by mutual consent. S
SRPServicing Released Premium - The premium that reflects the servicing value of a loan sold by Seller and is based upon multiple factors, including, without limitation, loan amount and state adjusters.SellerA lender approved as a seller of Mortgage Loans to the Purchaser pursuant to the Agreement.Seller ApplicationThe application to be completed by a prospective lender prior to its approval as a Seller of Mortgage Loans to Purchaser under the Agreement.Servicing Released Premium (SRP)The premium that reflects the servicing value of a loan sold by Seller and is based upon multiple factors, including, without limitation, loan amount and state adjusters.Servicing RightsWith respect to each Mortgage Loan, the right to do any and all of the following: (a) service and administer the Mortgage Loans; (b) collect any payments or monies payable or received for servicing the Mortgage Loans; (c) collect any late fees, assumption fees, penalties or similar payments with respect to the Mortgage Loans; (d) enforce the provisions of all agreements or documents creating, defining or evidencing any such Servicing Rights and all rights of the Seller thereunder, including, but not limited to, any clean-up calls and termination options; (e) collect and apply any Escrow Payments or other similar payments with respect to the Mortgage Loans; (f) control and maintain all accounts and other rights to payments related to any of the property described in this paragraph; (g) possess and use any and all Mortgage Files pertaining to the Mortgage Loans or pertaining to the past, present, or prospective servicing of the Mortgage Loans; and (h) enforce any and all rights, powers and privileges incident to any of the foregoing.Stated Principal BalanceThe unpaid principal balance of the Mortgage Loans at the related Delivery Due Date.Subordinate FinancingAny mortgage or other lien that is junior in priority to the First Mortgage.SubordinationThe act of a party acknowledging, by written recorded instrument that its lien is inferior to another lien on the same property.Successful DeliveryThe Delivery by Seller to Purchaser, on or before the Delivery Due Date or Expiration Date, as applicable, of Mortgage Loans that are purchasable and in compliance with the terms of the Agreement.SurveyA measurement of land, prepared by a registered land surveyor, showing the location of the land with reference to known points, its dimensions, and the location and dimensions of any improvements thereon. T
Third Party Originator (TPO)Mortgage loans originated and closed in the name of a third party lender other than the Seller.Transaction DocumentsWith respect to any Mortgage Loan purchased by the Purchaser hereunder, the Agreement, the related Purchase Commitment and the related Funding Schedule. U
USPAPThe Uniform Standards of Professional Appraisal Practice. V
VAThe Veterans Administration and any successor thereto. W
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Wire InstructionsThe instructions provided by Seller to Purchaser in connection with the wiring of funds by the Purchaser to Seller or Seller's designee.PennyMac is proud to provide programs and processes that many others simply don't have access to. These differentiators make you, our broker partners, more competitive in the market and more successful on your loans.
Don't get stuck selling rates at the eighths! PennyMac has the most sophisticated pricing engine in the industry, along with top experts in capital markets. This allows you to fine tune pricing down to the thousandth for your customers on fixed-rate loans!
- Tailor rates down to the thousandth
- .321%, .917%, .888%? You name it!
- Available on Conventional and Govt. fixed-rate loans(1)
With the ability to customize down to the month, you can be confident your borrowers will get the Perfect Term for their situation.
- More flexibility = more successful solutions
- 293 months? Sure!
- Available on fixed-rate loans nationwide
A POWERful best-x solution engineered to provide the best possible mortgage insurance pricing for your borrowers. OPTIMIZE takes the guesswork out of the MI selection process.
- Automatically delivers the most competitive pricing
- Lender-Paid - Best-x search between all LPMI options
- Borrower-Paid - Best-x search between all BPMI options
- Industry-leading MI rates
With 1.8 million+ consumers in PennyMac's servicing portfolio, certainly you run into loans we service. Together we can help those refinance customers by applying the funds from their existing impound account as a credit toward impounds on the new loan.
- Less cash to close!
- Available on refinances of PennyMac loans
- Escrow accounts are netted from the pay-off
- Incredible benefit of working with one of the largest servicers in the industry
1May not be available for all note rates on Govt. The ugly game mac os. loans. Call for more details.
- DU and LPA allowed
- Fixed rate & ARM options (standard & high-balance)
- Flexible terms from 85 to 360 months
- FICO down to 620 with AUS approval
- Appraisal waivers accepted
- Up to 97% LTV for first-time home buyers (DU Only)
- HomeReady® program available: Learn More
- Home Possible® program available: Learn More
- HomeOne™ program available: Learn More
- Down payment assistance allowed from government agencies
- Fixed rate & ARM options (standard & high-balance)
- Flexible terms from 120 to 360 months
- No appraisal needed for FHA Streamline refinances
- FICO down to 620 with AUS approval
- Standard VA LTV up to 100% including cash-out transactions
- Fixed rate & ARM options available
- Loan balances up to $1.5M with qualifying VA Guarantee
- Flexible terms from 120 to 360 months
- IRRRL LTV up to 110% plus allowable fees associated with new VA loans
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Your success is our #1 priority. That's why we've built the best tools in the industry and backed them up with a team of leaders experienced in wholesale lending to support you every step of the way.
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