Mortgage Loan Updates

Mortgage Loan Interest Rate Change

An interest rate change to a Mortgage Loan in a Best Efforts commitment will result in a price adjustment equal to the difference between the existing price associated with the original interest rate and the price associated with the actual interest rate, as noted on the effective rate sheet. If the interest rate does not fit within the same coupon or is not an offered interest rate, PennyMac may reject the Mortgage Loan.

An interest rate change to a Mortgage Loan in a Bulk commitment must be evaluated by PennyMac for acceptability and price.

An interest rate change to a Mortgage Loan in an AOT or DT commitment to an interest rate within commitment terms will be accepted and priced accordingly. A change to an interest rate outside commitment terms will render the Mortgage Loan ineligible for purchase in the associated commitment. The Mortgage Loan must be de-allocated from the commitment and priced into a commitment with appropriate terms.

Mortgage Loan Program Change

A program change to a Mortgage Loan in a Best Efforts commitment may trigger a worse-of reprice event and is priced accordingly. To qualify for a program change in accordance with this section, no term of the commitment, including the applicable delivery deadline, may change other than the program.

A program change to a Mortgage Loan in a Bulk commitment must be evaluated by PennyMac for acceptability and price.

A program change to a Mortgage Loan in an AOT or DT commitment to a program within commitment terms will be accepted and priced accordingly. A change to a program outside commitment terms will render the Mortgage Loan ineligible for purchase in the associated commitment. The Mortgage Loan must be de-allocated from the commitment and priced into a commitment with appropriate terms.

A commitment program change on any mandatory commitment type may require a new commitment and a pair-off fee attributed to the original commitment.

Mortgage Loan Property Change

A property address change to a Mortgage Loan in a Best Efforts commitment is prohibited, except for immaterial changes, such as common typographical errors.

A property address change to a Mortgage Loan in a Bulk commitment must be evaluated by PennyMac for acceptability and price.

A property address change to a Mortgage Loan in an AOT or DT commitment will be accepted and priced accordingly.

Mortgage Loan Feature Change

An attribute, or loan feature, change to a Mortgage Loan in a Best Efforts commitment may subject the loan to reprice, relock, cancellation, or rejection.

An attribute, or loan feature, change to a Mortgage Loan in a Mandatory Forward, Bulk, AOT or DT may subject the Mortgage Loan to reprice or rejection.