09/04/2026
Effective for new loan applications dated on or after September 4, 2026, Pennymac is updating Non-QM guidelines regarding prepayment penalty eligibility, non-arm’s length transactions, borrower eligibility, departing residence requirements, and the use of bank statement collection services.
All Programs (A-, A, A+, DSCR)
Prepayment Penalties in Rhode Island
- Prepayment penalties are now eligible for business purpose loans in Rhode Island under standard prepayment penalty terms.
- The borrower must provide explicit written consent to the prepayment penalty provisions prior to the note date.
Non-Arm’s Length Transactions
- Builder-related transactions are ineligible if it is a builder refinance and the builder/developer (or an affiliated entity) has built more than four (4) units in the same subdivision, development, or condominium project.
- Builder-related transactions are also ineligible if the loan is secured by a newly constructed second home or investment property (purchase or refinance) and the borrower has a relationship or business affiliation with the builder, developer, or seller.
Borrower Eligibility
- For non-permanent resident aliens using an I-797 Form (Notice of Action), guidance has been updated to clarify that I-797A, I-797B, and I-797C forms are also eligible.
A-, A, A+ Programs
Departing Residence
- For a departing residence under contract, an appraisal report is not required, even if all “Under Contract” requirements have not been met and the PITIA is included in the qualifying ratios.
- If any “Under Contract” product profile requirements are not met, the property is considered an additional financed property. This requires two months of reserves (stacked, and not subject to the 12-month cap).
Bank Statement Program
- Greenline and AccountChek are now eligible third-party providers to pull direct source borrower bank account data and perform calculations, subject to the following:
- 12-24 months of direct source borrower bank account data is required, including all pages of the accounts.
- Calculations provided by these firms must meet Pennymac requirements and remain subject to a re-underwrite by Pennymac.
Please refer to the applicable Pennymac product profiles for complete details.
Please contact your Sales Representative with any questions.