For all DU approved conventional loans, PennyMac is aligning with the updates announced in Fannie Mae SEL 2018-01, including but not limited to the below. All updates are effective immediately.
Federal Tax Installment Plans
Effective with this change, PennyMac is aligning with Fannie Mae’s update to federal tax installment plans and allowing them to remain open subject to:
- There is no indication that a Notice of Federal Tax Lien has been filed against the borrower in the county in which the subject property is located.
- The lender must obtain the following documentation:
- an approved IRS installment agreement with the terms of repayment, including the monthly payment amount and total amount due; and
- evidence the borrower is current on the payments associated with the tax installment plan. Acceptable evidence includes the most recent payment reminder from the IRS, reflecting the last payment amount and date and the next payment amount owed and due date. At least one payment must have been made prior to closing.
- Payment must be included if more than 10 payments are remaining.
Detached Condos
Previously, Fannie Mae required a limited condo review on all detached condos.
Effective with this change, PennyMac is aligning with Fannie Mae’s update and no longer requiring a condo warranty review for detached condos. DU messaging regarding detached condo units will be modified in a future release to reflect these changes. Until that time, lenders may disregard the current project review messages solely for detached condos.
Please contact your Sales Representative with any questions.