Any Correspondent approved for participation in the Pennymac Correspondent Program must continue to meet the eligibility requirements herein to maintain its eligibility and approval to participate.

Notification of Significant Changes

The Correspondent must send Pennymac written notice of any contemplated major changes in its organization, including with its notice copies of any filings with, or approvals from, its regulators. Pennymac requires notice of, among other things, the following significant changes relating to the Correspondent:

  • Any mergers, consolidations or reorganizations
  • Any direct or indirect material change in ownership. An “indirect change in ownership” includes any change in the ownership of the Correspondent’s parent, any owner of the parent, or any beneficial owner of the Correspondent that does not own a direct interest in the Correspondent
  • Any change in corporate name
  • Any change from a federal charter to a state charter (or vice versa) if the Correspondent is a savings and loan association or a bank
  • Material changes in financial condition

Changes to Corporate Authority and Banking Relationships

In the event that there is any change in the authority evidenced by the Corporate Resolution, or in the banking relationships described in the Funding Instructions Notification, the lender must immediately deliver to Pennymac a replacement Corporate Resolution, which accurately reflects the corporate authorizations granted by the lender, or a Funding Instructions Notification which accurately describes the banking relationships in effect, as applicable.

Pennymac will not recognize any changes in the Correspondent’s corporate authorizations or funding instructions until the replacement Corporate Resolution, or Funding Instructions Notification, as applicable, is received by Pennymac.

Compliance Reporting Requirements

If the Correspondent is subject to the jurisdiction of any governmental agency or quasi-governmental agency, such as Fannie Mae, Freddie Mac, HUD or FDIC, Pennymac may request copies of any audit reports issued by such agencies.

If any disciplinary action is taken by any such agency, including suspension or termination of the Correspondent’s selling or servicing rights, the Correspondent must notify Pennymac within three business days of such action. Any reports or notices to be delivered to Pennymac pursuant to this Section of the Manual must be delivered to Pennymac Client Administration at the address set forth in the Quick Reference Guide.

Periodic Reviews

Pennymac will routinely review each Correspondent’s book of business to monitor performance. The reviews will include, but may not be limited to the following:

  • Product mix
  • Best-effort commitment pull through rate
  • Mark-to-market (MTM) exposure
  • Delinquency data
  • HUD compare ratios
  • Repurchase activity
  • Defective delivery rate
  • Number of Early Payment Default (EPD) loans
  • Number of Early Payoffs (EPOs) and overall portfolio turnover (See below for additional guidance on this topic)


Pennymac may audit the Correspondent’s mortgage loan origination operations and examine the books and records relating to any mortgage loan sold by the Correspondent to Pennymac. The Correspondent will facilitate such audits and provide Pennymac and its agent’s access to the Correspondent’s offices, books and records at reasonable times during the Correspondent’s normal business hours.

Correspondent Annual Recertification

All correspondents are required to complete the Correspondent Annual Recertification process within 30 days of the anniversary of the initial lender approval date. The annual recertification process requires completion of the Correspondent Annual Recertification form. In addition to completing and executing the recertification form, all correspondents are required to provide the following information at the time of their annual recertification:

  • Most recent fiscal year-end audited financial statements (if most recent audited financials have already been provided, correspondent must provide the most recent quarterly statements or interim financials).  
  • A copy of the Correspondent’s Fidelity Bond or Errors and Omission Declaration page

Financial Statement Delivery Requirements

All correspondents are required to provide audited financials within 120 days of the fiscal year end.

Interim financial statements are required within 30 days of each quarter end. More frequent reporting may be required. Submit financial statements to:

Send email to ["Clientmonitoring"].
PennyMac Corp
ATTN: Client Monitoring
6101 Condor Drive
Moorpark, CA 93021