When delivering any mortgage loan which has been pledged as collateral for a line of credit, the lender must meet the following requirements:
- For each mortgage loan which is delivered to PennyMac and for which a third party holds an interest, a bailment letter must be included in each file and be identified sufficiently so PennyMac can match it to the correct mortgage loan. The bailment letter should include:
- The Correspondent’s name;
- The PennyMac loan number;
- The principal balance; and
- Wiring or payment instructions.
- When the Note is delivered, the bailment letter must be included with the Note. A bailment or trust arrangement is not established and a security interest in the mortgage loan is not valid if a bailment letter is sent to PennyMac separate from the applicable Note.
- In some instances, depending on lender specific Bailment language, PennyMac requires the warehouse lender to execute a Security Release Form. Correspondents must ensure their warehouse lenders have agreed to the Security Release Form and have approved the specific loan product for sale to PennyMac.
Important: The bailment letter and the Note must be delivered to PennyMac or a designated custodian within 24 hours after delivery of the closed loan file.