About lender
PennyMac is one of the major lenders in the United States mortgage market, with loans available all over the United States, except in New York. PennyMac loan services include online refinancing, investment management and mortgage origination.
According to Inside Mortgage Finance, the company has over 4 million customers and is the second largest mortgage lender with a servicing portfolio of $510 billion in unpaid principal balance, and the largest aggregator of residential mortgage loans. The company conducts its business relying on web, mobile, and phone services to engage and convey with customers.
The lender offers various types of mortgage (including VA, USDA, FHA and jumbo mortgage loans) and supports equal housing opportunity. After approval, you will get a personal loan officer who guides you throughout the loan process.
All operations are available through PennyMac’s Mortgage Access Center (m.a.c) online portal. Established in 2008, the lender's business head office is in Westlake Village, California.
Key Features
PennyMac is a financial services company that primarily operates in the mortgage lending and servicing industry. Here are some key features of PennyMac:
- Mortgage Lending. PennyMac offers a range of mortgage lending products, including conventional loans, FHA loans, VA loans, jumbo loans, and adjustable-rate mortgages. The company also provides refinancing options to homeowners.
- Servicing. In addition to lending, PennyMac offers mortgage servicing to borrowers. This includes collecting payments, managing escrow accounts, and assisting with loan modifications.
- Technology. PennyMac has invested heavily in technology to improve the efficiency and customer experience of its lending and servicing operations. The company offers online tools for borrowers to apply for loans and manage their accounts.
- Customer Service. PennyMac is known for its customer service, with a team of experienced loan officers available to assist borrowers throughout the loan process. The company also offers resources and educational materials to help borrowers make informed decisions.
- Financial Stability. PennyMac has a strong financial position, with a diversified revenue stream and a track record of profitability. The company is publicly traded on the New York Stock Exchange and has a market capitalization of over $2 billion.
Pros and cons
PennyMac is a huge mortgage market player. Yet, to apply for a loan, you first need to evaluate the advantages and disadvantages of the lender.
Pros
- Customer Support is available online or by phone.
- PennyMac provides online tracking and e-signatures. It makes the lender's services easily accessible.
- The rate quotations are customizable. They depend on your down payment, house valuation, ZIP code, and credit score.
- PennyMac provides warrants for on-time closings.
- There are loan discounts for employees of partnered companies.
- The company can help you reach a concierge for real estate services.
Cons
- There are no offline offices.
- The information about the loans is limited.
- Payments with a credit card are not available.
Products
PennyMac offers a range of mortgage lending products and services to borrowers. Here are some of the key products that the company offers:
- Conventional Loans. These are fixed-rate and adjustable-rate mortgages that conform to the loan limits set by Fannie Mae and Freddie Mac.
- FHA Loans. These are government-backed loans that are designed to help borrowers with lower credit scores and smaller down payments.
- VA Loans. These are loans that are guaranteed by the Department of Veterans Affairs and are available to eligible veterans and active-duty service members.
- Jumbo Loans. These are mortgages that exceed the loan limits set by Fannie Mae and Freddie Mac.
- Refinancing. PennyMac offers refinancing options for homeowners who want to lower their monthly payments, reduce their interest rates, or shorten the term of their loans.
- Mortgage Servicing. PennyMac offers mortgage servicing to borrowers, which includes collecting payments, managing escrow accounts, and assisting with loan modifications.
- Home Equity Loans. PennyMac offers home equity loans, which allow homeowners to borrow against the equity in their homes.
Overall, PennyMac offers a diverse range of mortgage products and services to meet the needs of a wide variety of borrowers.
Reliability
PennyMac is a reliable mortgage lender and servicer, with a strong track record of financial stability and customer satisfaction. Here are some of the factors that contribute to the company's reliability:
- Financial Stability. PennyMac has a strong financial position, with a diversified revenue stream and a track record of profitability. The company is publicly traded on the New York Stock Exchange and has a market capitalization of over $2 billion.
- Experience and Expertise. PennyMac has a team of experienced loan officers and mortgage servicing professionals who are well-versed in the industry's regulations and best practices.
- Technology. PennyMac has invested heavily in technology to improve the efficiency and accuracy of its lending and servicing operations. The company's online tools and systems make it easy for borrowers to apply for loans, manage their accounts, and make payments.
- Customer Service. PennyMac is known for its high level of customer service, with a team of dedicated professionals available to assist borrowers throughout the loan process. The company also offers resources and educational materials to help borrowers make informed decisions.
- Regulatory Compliance. PennyMac is committed to complying with all applicable laws and regulations governing the mortgage industry. The company has implemented robust compliance and risk management processes to ensure that it operates in a safe and sound manner.
Overall, PennyMac's financial strength, expertise, technology, customer service, and compliance practices make it a reliable partner for borrowers who are looking for a mortgage lender or servicer.
Additional Services
In addition to its mortgage lending and servicing offerings, PennyMac also provides other financial services to its customers. Here are some of the additional services that the company offers:
- Home Insurance. PennyMac partners with leading insurance providers to offer homeowners insurance policies that protect against damage to their homes and personal property.
- Home Warranty. PennyMac offers home warranty plans that provide coverage for repairs and replacements of major home systems and appliances.
- Real Estate Services. PennyMac partners with real estate agents and brokers to help borrowers buy and sell homes. The company's real estate services include property listings, home valuations, and mortgage pre-approvals.
- Investment Management. PennyMac offers investment management services to investors, including portfolio management, asset allocation, and financial planning.
- Title Services. PennyMac partners with title companies to provide title insurance and escrow services to borrowers.
By offering a range of additional services beyond mortgage lending and servicing, PennyMac provides a comprehensive suite of financial solutions to its customers. This can help borrowers save time and money by consolidating their financial needs with one trusted provider.
Terms and conditions
PennyMac financial services provide a variety of loan programs. The loan durations range from 10-years to 30-years for fixed-rate mortgage (FRM) and adjustable-rate mortgage loans (ARM). On an Adjustable Rate Mortgage (ARM), the interest rate is calculated by adding the Index + Margin = Your Interest Rate.
PennyMac states to have no minimum mortgage loan amount and a maximum loan amount of $2 million for jumbo loans. For USDA, VA, and FHA, loan restrictions apply according to the government. These limits vary by county.
The USDA loan limit for most US counties in 2023 is $336,500. Most counties in the United States have a baseline VA loan limit of $647,200 in 2023. FHA loan limits range from $420,860 to $970,800.
Mortgage loans vary depending on the state and the company's everyday offer. You can always find out the current loan amount, interest rate, APR, and loan duration on the company's website in the Rates tab. Click View assumptions.
The convenient financial services on the website allow you to learn what PennyMac Loan Services offer. You can choose between "Purchase a home" (if you want to buy real estate) and "Refinance a Home" (if you already have had mortgage loans and want to refinance them). You can view the instant rate based on your data. The financial services do not require registration, and it's an excellent tool to find out how suitable this company is for you and what it can offer to you.
The Adjustable Rate Mortgage interest rate is always lower than the Fixed-rate mortgages (FRM) (at 1-2%). But it's significantly affected by conditions related to the state of the US economy at the time of the bank's revision of the rate.
People who have reached the age of 25 to 75 can get a loan for real estate in the United States. Because there is no citizenship or other restriction for real estate sales, non-US citizens can purchase a property too. Though, the interest rate on a mortgage loan for foreigners is higher than for US citizens.
Funding a loan
Pre-approving
The initial stages in obtaining PennyMac financial services include choosing which type of mortgage is ideal for you, calculating how much you can afford to pay, and getting pre-approval for this loan.
Customers that are pre-approved with PennyMac financial services before locking any PennyMac purchase loan may receive 0.50% off total closing expenses and/or principal curtailment, subject to investor guidelines. PennyMac's $1,100 origination cost can be eliminated for all conventional and FHA purchase loans, and the origination fee is lowered by $1,100 for VA purchase loans. Jumbo, refinancing, third-party, and in-process loans are not included. Offers change regularly and are limited in time. You can always find the latest information on the website when applying. Keep in mind that information rates and pricing are subject to change without prior notice at the sole discretion of PennyMac.
The general steps after pre-approving
Apply for residential mortgage loans. Here you choose the type of loan that suits you most: conventional loans, ARM loans, Jumbo loans, VA, FHA, or USDA loans. You will also have to send a pack of necessary documents to your lender.
After approval (typically 45-60 business days), all papers must be completed and funding criteria satisfied before funds are issued.
Depending on where you live, you may enter into an agreement a few business days before closing.
After all mortgage documentation is finished and approved, the lender releases funds to the closing agent (the title or escrow company).
PennyMac Investment Management
With PennyMac Mortgage Investment Trust, you can not only get a mortgage but also invest in it profitably.
Most of the company's credit-sensitive assets are credit risk transfer investments related to loans procured through its correspondent production and provided to Fannie Mae. PennyMac Mortgage Investment Trust focuses its investments on mortgage-related assets that the business creates through industry-leading correspondent production activities, including mortgage servicing rights (MSRs).
PennyMac Mortgage Investment Trust regularly holds meetings with investors. All information about recent events and financial reports is available on the company website.
PennyMac vs Quicken Loans
PennyMac and Quicken Loans (which operates under the Rocket Mortgage brand) are both well-known mortgage lenders that offer a range of loan products and services. Here are some key differences between the two companies to consider:
- Loan Process. Quicken Loans is known for its fully digital mortgage application process, which allows borrowers to apply for a mortgage and receive a decision online. In contrast, PennyMac offers both online and in-person loan application options, depending on the borrower's preference.
- Product Selection. While both companies offer a range of loan products, their focus and product selection differ. Quicken Loans is primarily known for its conventional and FHA mortgage offerings, while PennyMac has a more diverse selection of loan products, including VA loans, jumbo loans, and home equity loans.
- Servicing. PennyMac is also a mortgage servicer, which means that the company can service loans it originates, as well as loans originated by other lenders. Quicken Loans, on the other hand, primarily focuses on mortgage origination.
- Rates and Fees. The rates and fees offered by both companies can vary depending on a variety of factors, such as the borrower's credit score, loan amount, and down payment. Borrowers should compare the rates and fees offered by both companies to determine which lender offers the most competitive terms.
- Customer Service. Both companies have dedicated customer service teams to assist borrowers throughout the loan process. Quicken Loans has been recognized for its strong customer service, with high satisfaction ratings from customers.
Overall, both PennyMac and Quicken Loans are reputable mortgage lenders that offer a range of loan products and services. Borrowers should compare the offerings of both companies to determine which lender best meets their specific needs and preferences.
PennyMac vs Caliber Home Loans
PennyMac and Caliber Home Loans are both well-known mortgage lenders that offer a range of loan products and services. Here are some key differences between the two companies to consider:
- Loan Process. Caliber Home Loans offers both online and in-person loan application options, depending on the borrower's preference. PennyMac offers similar options, with an emphasis on providing a streamlined online application process.
- Product Selection. While both companies offer a range of loan products, their focus and product selection differ. Caliber Home Loans is primarily known for its conventional and government-backed mortgage offerings, while PennyMac has a more diverse selection of loan products, including VA loans, jumbo loans, and home equity loans.
- Servicing. PennyMac is also a mortgage servicer, which means that the company can service loans it originates, as well as loans originated by other lenders. Caliber Home Loans, on the other hand, primarily focuses on mortgage origination.
- Rates and Fees. The rates and fees offered by both companies can vary depending on a variety of factors, such as the borrower's credit score, loan amount, and down payment. Borrowers should compare the rates and fees offered by both companies to determine which lender offers the most competitive terms.
- Customer Service. Both companies have dedicated customer service teams to assist borrowers throughout the loan process. Caliber Home Loans has been recognized for its strong customer service, with high satisfaction ratings from customers.
Overall, both PennyMac and Caliber Home Loans are reputable mortgage lenders that offer a range of loan products and services. Borrowers should compare the offerings of both companies to determine which lender best meets their specific needs and preferences.
PennyMac vs Mr. Cooper
PennyMac and Mr. Cooper are both prominent players in the mortgage lending and servicing industry, but there are some key differences between the two companies. Here are a few factors to consider when comparing PennyMac and Mr. Cooper:
- Size. Mr. Cooper is one of the largest mortgage servicers in the United States, with over 3 million customers and a loan servicing portfolio of over $600 billion. PennyMac is a smaller company, with a loan servicing portfolio of around $400 billion.
- Focus. While both companies offer mortgage lending and servicing, their focus and business models differ. Mr. Cooper primarily operates as a mortgage servicer, while PennyMac has a more diversified business model that includes both mortgage lending and servicing, as well as additional financial services.
- Technology. Both companies have invested heavily in technology to improve the efficiency and customer experience of their operations. However, Mr. Cooper has a more established track record in this area, with a suite of online tools and mobile apps that make it easy for borrowers to manage their accounts.
- Customer Service. Both companies have dedicated teams of loan officers and customer service professionals to assist borrowers throughout the loan process. However, Mr. Cooper has been recognized for its commitment to customer service, with multiple awards and accolades from industry groups and consumer advocacy organizations.
Ultimately, the choice between PennyMac and Mr. Cooper will depend on a variety of factors, including the borrower's specific needs, preferences, and financial situation. Borrowers should consider factors such as loan terms, interest rates, fees, customer service, and online tools when evaluating these companies.
PennyMac vs Freedom Mortgage
PennyMac and Freedom Mortgage are both mortgage lenders that offer a range of loan products and services. Here are some key differences between the two companies to consider:
- Loan Process. Freedom Mortgage offers both online and in-person loan application options, depending on the borrower's preference. PennyMac also offers similar options, with an emphasis on providing a streamlined online application process.
- Product Selection. While both companies offer a range of loan products, their focus and product selection differ. Freedom Mortgage is primarily known for its government-backed mortgage offerings, including VA, FHA, and USDA loans. PennyMac, on the other hand, has a more diverse selection of loan products, including jumbo loans, home equity loans, and investment property loans.
- Servicing. PennyMac is also a mortgage servicer, which means that the company can service loans it originates, as well as loans originated by other lenders. Freedom Mortgage, on the other hand, primarily focuses on mortgage origination.
- Rates and Fees. The rates and fees offered by both companies can vary depending on a variety of factors, such as the borrower's credit score, loan amount, and down payment. Borrowers should compare the rates and fees offered by both companies to determine which lender offers the most competitive terms.
- Customer Service. Both companies have dedicated customer service teams to assist borrowers throughout the loan process. Freedom Mortgage has been recognized for its strong customer service, with high satisfaction ratings from customers.
Overall, both PennyMac and Freedom Mortgage are reputable mortgage lenders that offer a range of loan products and services. Borrowers should compare the offerings of both companies to determine which lender best meets their specific needs and preferences.
