The requirements stated below, unless waived by Pennymac at its sole and absolute discretion, must be met by lenders in order to be eligible for participation in the Pennymac Correspondent Program.

Pennymac reserves the right, in its sole discretion, to determine whether a prospective Correspondent customer meets these eligibility requirements. Once approved, customers are required to maintain the eligibility requirements. If a customer fails to maintain one or more of the eligibility requirements, Pennymac may suspend purchasing mortgage loans from the customer and/or terminate its business relationship with the customer.



The Correspondent must have been an active originator of first lien, investment quality residential mortgage loans using Fannie Mae’s Desktop Underwriter AUS engine during the previous two years.


The Correspondent must have adequate facilities with which to originate first lien residential mortgage loans.

Selling Standards

  • The Correspondent must follow generally accepted mortgage lending practices with respect to its mortgage loan origination activities.
  • The Correspondent must be an organization which is committed to, and engages in, responsible lending practices.

Capital Requirements

The Correspondent and the Correspondent’s parent corporation, if any, must meet the capital requirements of each state and federal regulatory agency with jurisdiction over any of the Correspondent’s or parent corporation’s activities, as applicable.

Legal Standing

  • The Correspondent must be duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization and qualified to transact business and properly licensed in each jurisdiction where it originates or services mortgage loans.
  • The Correspondent must be in good standing with all applicable regulatory authorities and not subject to any extraordinary supervision of its operations.
  • The Correspondent must have the power and authority to enter into the Pennymac Correspondent Loan Purchase Agreement.
  • The Correspondent’s compliance with the terms and conditions of the Agreement, including the terms and conditions of this Manual, must not violate any of the provisions of its articles of incorporation, charter or by-laws or any other instrument relating to the conduct of the Correspondent’s business, the ownership of its property or any other agreement to which it is a party or by which it is bound.


The Correspondent must possess and maintain all required licenses necessary to conduct it’s activities in each jurisdiction in which any mortgaged property is located or otherwise be exempt from such requirements.


Correspondents that are not federally insured must maintain a blanket fidelity bond and errors and omissions insurance coverage in the amount of $300,000 each. The deductible may not exceed the greater of $100,000 or 5% of the face amount of the bond.