24-06: Freddie Mac 2023-19 Rental Income Requirements Update


Pennymac is aligning with Freddie Mac Bulletin 2023-19, announcing updates to their rental income requirements. The updates are effective with loan deliveries on or after 03/15/2024:

  • When a rental agreement is used to document rental income, a minimum original term of one year is no longer required
  • For newly executed leases, the first rental payment due date must be no later than the first payment due date of the mortgage
  • When a lease agreement is used, documentation requirements evidencing two months receipt of rental income have been expanded to include:
    • In lieu of documenting two months rental payment receipt, verification of receipt of the security deposit and the first month’s rental payment is now eligible
      • For security deposits, evidence of deposit into an escrow or business account established for this purpose, or evidence payment was cashed and deposited into the borrower’s personal account is required.
    • Payments transferred into a third-party money transfer application account owned by the borrower
  • Refer to the Freddie Mac Selling Guide for complete requirements.

Please contact your Sales Representative with any questions.