24-87: Early Payment Default Seller Guide Update

08/26/2024

Effective with loans triggering for Early Payment Default at the end of July 2024, Pennymac may offer the following in lieu of repurchase:

  • For Government Loans: recapture the SRP and charge a one-time Early Payment Default fee of $7,500
  • For Conventional Loans: recapture the SRP and charge a one-time Early Payment Default fee of $3,000
  • For Non-Agency Loans: recapture any premium above par, including any SRP, or 100 basis points, whichever is greater; and charge a one-time Early Payment Default fee of $3,000

The Pennymac Seller Guide has been updated to include the above language.

Please contact your Sales Representative with any questions.