Previously, PennyMac required a current market value, as demonstrated by an Automated Value Model (AVM) or drive by appraisal (2055E or 1075), to calculate an LTV/CLTV on all FHA Streamline transactions.
Effective with commitments taken on or after Monday, January 26, 2015, PennyMac is pleased to announce that FHA Streamline transactions will no longer require a valuation product. With this change, the LTV/CLTV restrictions based on the current value are being retired.
To support the guideline change, the FHA Streamline LLPA has been updated on the ‘Govt LLPAs’ tab of all rate sheets. A sample of the updated ‘Govt LLPAs’ tab has been attached to the bottom of this Announcement with the newly added pricing grid and LLPA value highlighted in yellow.
Please contact your Sales Representative with any questions.