Taxes & Insurance

PennyMac considers a Disaster any event that causes substantial damage. Disasters include but are not limited to:

Earthquake Insurance is mandatory for any property located on or in close proximity to a structural fault, or in a special seismic studies zone. If no mention is made in the appraisal, survey, or t...

Unless prohibited by applicable law, or granted a waiver by PennyMac, the Seller must, pursuant to the guidelines set forth in this Delivery Procedure, establish an escrow/impound account for each ...

Prior to loan purchase, a Flood Zone Determination Certification (FZD or Flood Cert) is required in each loan file. Flood insurance is required for any property located in a Special Flood Hazard Ar...

The Seller is responsible to purchase a commitment/policy from an agency approved private mortgage insurer prior to the mortgage loan closing for all loans requiring private mortgage insurance (PMI).

With respect to mortgage loans sold to PennyMac, the following tax payment guidelines apply:

Per Internal Revenue Service Instruction, PennyMac Loan Services, LLC will report mortgage interest only for interest paid by the borrower to PennyMac on or after the transfer of servicing from the...