10/22/2026
Effective with new loan applications dated on or after October 22, 2026, Pennymac is introducing enhanced Non-QM program guidance (A-, A, A+, DSCR) for prepayment penalties.
State-Specific Prepayment Penalty Updates
Ohio: For 1-2-unit transactions, prepayment penalties are now permitted within the following state-specific restrictions:
- Maximum of 1% of the unpaid principal balance for a term ≤ 5 years.
- Existing prepayment penalty requirements remain unchanged for 3 and 4 unit properties.
Michigan: Prepayment penalties are now permitted within the following state specific prepayment penalty restrictions:
- Maximum of 1% of the unpaid principal balance for a term ≤ 3 years.
Refer to the Pennymac Correspondent Group Non-QM Product profiles for complete requirements.
Please contact your Sales Representative with any questions.