18-10: Clarification of GNMA APM 17-06


As clarification, the Ginnie Mae seasoning requirements apply only when the underlying loan being paid off is a government loan.

Effective with loans delivered on or after March 2, 2018, PennyMac is aligning with Ginnie Mae’s seasoning requirements for all streamline and cash-out refinance loans.In order to be eligible, when the loan being paid off is a government loan (FHA, VA, Rural), the transaction must meet the following seasoning requirements:

  • the borrower has made at least six consecutive monthly payments on the loan being refinanced, beginning with the payment made on the first payment due date; and
  • the first payment due date of the new loan occurs no earlier than 210 days after the first payment due date of the loan paid off through the transaction.

Due to the various program requirements, this update will impact FHA cash-out and all VA refinances. FHA Streamline and USDA Streamline-Assist transactions must continue to meet FHA’s or USDA’s seasoning requirements as applicable.

Loans that do not meet this seasoning requirement must be delivered on or before March 1, 2018 and purchased by March 13, 2018. Loans must have a first payment due date of on or before April 1, 2018 and ARM loans must have an interest rate adjustment month of April.

Please contact your Sales Representative with any questions.