Effective immediately, PennyMac is aligning with the conforming loan limit increases for standard and high balance loans, as announced by Fannie Mae and Freddie Mac.
In most areas, the 1-unit standard balance limit is increasing from $647,200 to $726,200 and the 1-unit high balance limit is increasing from $970,800 to $1,089,300. Loan amounts vary by area and unit, with complete details located at:
https://www.fhfa.gov/data/conforming-loan-limit-cll-values
Fannie Mae’s DU will be updated the weekend of December 3rd and Freddie Mac’s LPA on December 5th. Pennymac will accept DU or LPA Approve/Ineligible decisions, when the “ineligible” result is solely due to the loan amount being in excess of the 2022 limits but is within the 2023 limits.
In addition to the changes outlined above, Pennymac will update Conventional LLPAs effective for all Best Efforts Commitments taken on or after Wednesday, November 30, 2022 as follows:
- Remove the ‘Loan Balance Adjustments’ LLPA Grid.
Please contact your Sales Representative with any questions.