Loans containing a DU decision may not be eligible for purchase if the defect materially changes the loan parameters.


If a Note defect is identified prior to delivery, Pennymac will allow Clients to make appropriate changes provided the correction is accompanied by the borrower(s) initials. Pennymac will also allow a Loan Modification Agreement as an alternate form of correction.

If a Note defect is identified after delivery, Pennymac will require that the Client reach out to their Pipeline Account Manager to discuss acceptable methods of correction.

In accordance with GNMA delivery requirements, any Loan Modification Agreement to the Note on Government loans will need to be notarized and recorded.

Security Instruments

Security Instruments can either be corrected by providing a corrected document, initialed by the borrower, and a letter of intent to re-record or by utilizing the acceptable county equivalent, i.e. Scriveners Affidavit. Loan Modification Agreements will be accepted as a method of curing deficiencies on the Security Instrument in addition to the current methods of correction.

Any Loan Modification Agreement to the Security Instrument will need to be notarized and recorded.

Sample modification forms and corresponding job aids to assist with collateral corrections are posted under the Tools and Resources section of

Clients are responsible for adhering to all state and county requirements. If the use of a Loan Modification Agreement is not permitted in the subject property’s county or state please contact your Pipeline Account Manager or Sales Manager prior to engaging in corrective action.