FAQs
general
- What is an Adjustment Date and Initial Interest rate?
- An adjustment date is the day when the interest rate changes on an adjustable rate mortgage (ARM). After an initial period where an ARM loan interest rate remains the same, the rate changes on the adjustment date to reflect the new ARM loan rate. The ARM loan rate will then continue to adjust over the remaining life of the loan as described in your Note. An initial interest rate is the starting interest rate of an adjustable rate mortgage (ARM). This initial interest rate on an ARM loan is fixed for a certain period of time, and then adjusts to reflect overall market rates.
- What is an amortization schedule and how can I see it?
- An amortization schedule is a schedule showing the effects of making principal and interest payments over the life of your loan as it relates to the loan balance and interest paid. It can be a useful tool to help determine the effects of making more than the required monthly payment, or in observing how much of your payment is applied to the principal reduction versus interest over the life of your loan. You can see your amortization schedule by visiting the Amortization Calculator page of your online account and submitting the needed inputs to calculate your results. For more general information, visit the Home Loan Calculators page.
- What is an ARM Adjustment Period?
- An adjustable rate mortgage (ARM) adjustment period is the frequency with which the interest rate may change. The most common ARM adjustment periods are every six months or twelve months. The frequency of ARM adjustments are outlined in the Note.
- How is the interest calculated on an Adjustable Rate Mortgage (ARM) Loan? What is an Index, margin, and how is it relevant to Adjustable Rate Mortgage loans?
- The interest rate is calculated on an Adjustable Rate Mortgage (ARM) by adding the Index + Margin = Your Interest Rate. The index is a benchmark interest rate that reflects general market conditions. The index amount changes based on the market, and is maintained by a third party. The margin is set by the lender when you apply for a loan, and this amount generally won’t change after closing.
- What is an Adjustable Rate Mortgage or ARM Loan?
- An Adjustable Rate Mortgage or ARM loan is a mortgage where the interest rate changes periodically over the life of the loan.
loan transfer
- I set up my payment to my previous servicer. Will my payment be forwarded? Will I be charged any late fees for delays during the transfer period?
- Yes, your previous servicer will forward any payments received to Pennymac within 60 days after your loan is transferred and we will credit it to your account without a late fee. All payments received by your previous mortgage company during the 60 days following the date of transfer will be treated as on-time payments and will be forwarded to Pennymac to apply to your account. After 60 days, this service may no longer be provided and any payment sent to your prior servicer should be returned to you. If you have questions about where to send your payments, contact us.
- Do I need to contact my insurance company about the transfer?
- Your insurance company will be notified of your new servicer as a routine part of this transfer. However, we encourage you to confirm with your insurance carrier that they changed the mortgagee clause of your policy to the following: PennyMac Loan Services, LLC, Its Successor and/or assigns P.O. Box 6618, Springfield, Ohio 45501-6618
- Do any terms of my loan change when my loan is transferred to a new owner or servicer?
- No, the terms of your loan do not change as a result of the transfer.
- I have optional insurance products on my mortgage. Will this transfer?
- No, if you have been paying premiums for life, disability, accidental death insurance, or other optional mortgage-related products, these policies will not transfer to Pennymac and may be cancelled. Please confirm with your prior servicer on how you can keep your existing policies.
- I currently make my payment through a bill pay service. What do I need to do?
- If you are currently making your payments through a bill pay service, we encourage you to sign up for automatic payments through Pennymac AutoPay Monthly or Bi-Weekly programs instead. This ensures that your payments will be received on the day you prefer. If you would rather continue using your bill pay service, please ensure that you have updated the payee information and billing address to our payment processing mailbox as follows: PennyMac Loan Services, LLC, PO Box 30597, Los Angeles, CA 90030-0597
- I have my tax and insurance payments currently impounded. Will this continue after the transfer?
- Yes, if you currently have an escrow account for the payment of your taxes and/or insurance premiums, Pennymac will continue collecting these funds and making the payments on your behalf.
- What happens when my loan that is currently in the modification process transfers to Pennymac?
- We will honor any existing repayment plans, trial modification plans or loan modifications entered into with your prior servicer. Please contact one of Pennymac's specialized modification representatives for more details. If an application is being evaluated by your prior servicer, we will continue that evaluation.
mortgage relief & assistance
- What if I didn't include my property in my bankruptcy?
- Your assets become part of the bankruptcy estate regardless of whether the loan is current or delinquent. We encourage you to consult with a bankruptcy specialist for advice about how your bankruptcy filing impacts your mortgage loan.
- Will my credit be affected by accepting a trial period plan or a loan modification?
- Yes. Staying current on your payments is the best way to protect your credit. If you enter into a modification, your credit may be negatively affected. Your loan will be reported as paying under a partial payment plan during the trial period, and as modified after the final modification agreement is signed, notarized, and returned. In addition, if you're behind on your payments when you start your trial, your loan will continue to be reported as "delinquent" until your loan has been permanently modified, even if you're making your trial payments. Credit scores are determined by a customer's credit history and are not controlled directly by Pennymac. Our commitment is to accurately report the status of all our customers.
- What are my options if my property has been damaged due to a natural disaster?
- If you’ve been impacted by a natural disaster or property damage caused by an accident, Learn more...
- Why is there no credit reporting on my discharged Chapter 7 Bankruptcy?
- When you receive a discharge in bankruptcy, you are no longer personally liable for the debt. Your account will be reported to the credit bureaus with a $0.00 balance. However, if you do not make your loan payments, your property may be the subject of foreclosure proceedings.
- What are the basic eligibility requirements for a loan modification?
- A modification may be an option if: You are ineligible to refinance, you are facing a long-term hardship, your monthly mortgage payments are no longer affordable, you are behind on your mortgage payments or likely to fall behind soon, and/or you have the willingness and ability to make reasonable monthly mortgage payments.
- Are lenders required to perform an escrow analysis when completing a Loan Modification?
- Yes, lenders perform an escrow analysis to determine the exact escrow payments prior to the establishment of the trial period payment, taking into consideration the tax and insurance payments that may come due during the trial period.
- What is my loan is currently in foreclosure and when does the foreclosure process start?
- A forbearance plan may still be an option for you even if you are currently in foreclosure. Typically, a loan is referred to foreclosure at or around the 120th day of delinquency unless the loan is being evaluated for a loan modification or other foreclosure prevention program.
- What is foreclosure and what are the different types?
- A foreclosure is the process of taking title to a mortgaged property as a result of the borrower's failure to make mortgage payments. Depending on the state, the most common types of foreclosure are judicial foreclosure, which is processed through the court system, and non-judicial foreclosure or power of sale, which is conducted through a trustee without the court's involvement. Once foreclosure is commenced, there may be additional attorney or trustee fees and costs added to the loan balance. Foreclosure time frames leading up to foreclosure sale vary by state. Prior to a foreclosure sale date, the full amount to cure the default is required to cancel pending foreclosure proceedings. Once a foreclosure sale takes place, there may be no additional opportunity for the borrower to regain rights to the property.
- What if my loan is currently in foreclosure?
- A repayment plan may still be an option for you, even if you are currently in foreclosure. Successful completion of your repayment plan may help avoid a foreclosure sale while giving you time to bring your loan current.
- What type of information must I provide to apply for a loan modification?
- If you would like to apply for a loan modification, you will need to complete an application that provides details about your income and expenses, and provide, among other things, income documentation (e.g. pay stubs, bank statements, profit & loss statement), tax returns, and a hardship letter with a reason why you are requesting a loan modification.
- Are there any fees associated with a loan modification?
- There is no fee for a loan modification. However, you may be responsible for expenses that Pennymac has incurred as a result of your default, including attorneys' fees, foreclosure fees and costs, property inspection fees, and property preservation costs, all of which are authorized under your loan documents.
- May a lender include late charges in the Loan Modification?
- Pennymac waives all accrued and unpaid late fees as part of a permanent loan modification.
- What is a loan-to-value ratio, and how might it affect me?
- A loan-to-value ratio is how much money you owe on your mortgage in relation to how much your property that secures the mortgage is worth. It is calculated by dividing the remaining loan amount (numerator) by the property value (denominator). It can be used, in conjunction with other criteria, as an indicator for eligibility for some modification programs or removing mortgage insurance.
- Should I hire someone to help me negotiate a modification?
- There is never a fee to get assistance or information about modification programs from Pennymac or a HUD-approved housing counselor. Beware of any person or organization that asks you to pay a fee in exchange for housing counseling services or modification of a delinquent loan. For a HUD-approved housing counselor, visit: https://www.hud.gov/offices/hsg/sfh/hcc/fc/.
- What are my options for a modification and where is the best place to start?
- Pennymac offers a number of modification options. These programs are designed to address a variety of circumstances. When you contact us to discuss your situation, we will evaluate your financial information to see if there are loan modification programs available to you, which would allow you to stay in your home and avoid foreclosure. Each program has its own method of modifying loans and its own criteria for which loans are eligible. The federal government and the investors/owners of the loans we service set their own guidelines and requirements for their respective programs. We're here to help you find potential solutions.
- What can I do to be considered for a repayment plan?
- You can contact Pennymac today to speak with a representative who can determine if you pre-qualify for a repayment plan or other home retention option. Be prepared to discuss the reason for your temporary hardship. Be able to provide verbal financial information concerning your current income and expenses.
- How may a repayment plan affect my credit?
- A repayment plan may have a negative impact on your credit score. While on a repayment plan, your account will be reported to the credit agencies as "Paying under a partial or modified payment agreement." Once the plan is successfully completed, your account will be reported as current.
- What is a repayment plan, and how can it help my current situation?
- A repayment plan allows you to catch up on your missed payments over time, while continuing to make your current payments. If you qualify for a repayment plan, we can spread your past-due amount over an agreed upon term, and add it to your current monthly mortgage payment in order to bring your loan current. By exploring a repayment plan option, you are working on finding a solution to your temporary hardship, so it does not have long term effects. No further late charges will be assessed on your loan while on your plan, as long as you timely make each of your repayment plan payments.
- What should I do if my loan is scheduled for foreclosure?
- If you're in foreclosure proceedings, or your home has been scheduled for a foreclosure sale, contact Pennymac immediately, if you haven't done so already, so we can discuss your available options. We want to help you keep your home. We may not be able to offer assistance to you if you wait until a foreclosure sale is imminent or already took place. You may also want to take advantage of HUD-approved housing counseling services. You can call the Home Owners Preservation Foundation hotline at (888) 995-HOPE, to speak with a HUD approved Housing Counselor in your community. In order to protect your rights under applicable foreclosure law, it's important that you continue to respond to any foreclosure notices you may receive. If you don't understand the legal consequences of foreclosure, you're also encouraged to contact a lawyer or housing counselor for assistance.
- What is a trial modification or trial plan, how does it work, and what happens if I don’t successfully complete the trial plan?
- The purpose of the Trial Period Plan is to show that you're willing and able to make the modified monthly payments. The trial period lasts a minimum of three months. If you qualify, we'll send you a Trial Period Plan Notice explaining the terms and amount of your payments. It will be based on our estimate of what your monthly payments would be with a permanently modified loan. Your Trial Period Plan becomes effective when you make your first trial plan payment. Payments can be made online using the One-Time Payment option on this website. You must make each Trial Period Plan payment in a timely manner, in the amount specified in the notice, in order to receive a permanent modification. If your original loan payment doesn't include amounts to pay your property taxes and/or homeowners insurance, an escrow account will be created and those amounts will be added to your monthly payment. If you're unable to successfully complete the Trial Period Plan to receive a permanent modification of your mortgage, you may need to consider options that involve relocation to a more affordable home. If your home is currently worth less than the amount remaining on your loan, you may be able to either sell your house through a short sale or sign over title to your home to your lender through a deed in lieu of foreclosure. These programs usually include relocation assistance payments to help you move to a more affordable home.
- I've made all my payments during the trial period; what happens next?
- To be approved for a permanent loan modification, you must: Successfully complete your Trial Period Plan, complete housing counseling if you have been asked to do so, and return any additional required documentation in a timely manner. After you're approved, you'll receive a letter and Modification Agreement defining the changes to your home loan. You will need to sign the Modification Agreement in front of a notary and return the notarized executed agreement as soon as possible to Pennymac. Your modification only becomes permanent after Pennymac receives the executed agreement. Until then, we strongly encourage you to continue making payments in the same amount you paid during your trial period. Please note: Once your loan is permanently modified, your new monthly payments could be higher than your Trial Period Plan payments.
- What if I do not qualify for a loan modification?
- Depending on the timing, we will try to work with you on another loss mitigation option, which may involve considering relocating to a more affordable home.
my account
- How do I add other loans that I have with Pennymac to my login account?
- You can add additional loans that you have with Pennymac to your login account. To do this, visit Account settings and select the option for Loans. You will then see a list of your current loans, a list of recommended loans that may be eligible to add to your account, and a request form to add other additional loans. Once you select an option, you will need to answer a short series of questions to confirm you are an authorized party of that loan. Once complete, the loan will be included in your profile and you will have access to the loan and all associated features.
- How do I authorize someone other than me to discuss my loan information?
- If you would like to authorize someone to be able to make payments and/or receive full access to your account information, please follow these steps: Create a copy (PDF format preferred) of your signed written authorization request. Visit the secure Message Center of your online account. Compose and send a message with the authorization request as an attachment.
- How can I change my password?
- You can change your password for access to your online account at any time once you have logged into your account. To change your password, visit Account Settings on this website and select the Password option from the list. From there, you can change your password, which will be effective the next time you log in.
- How can I get a copy of my loan documents?
- You can visit the Statements & Documents section of the website. From here, you will find documents such as your Monthly Statement or year-end tax statements. Also, you may request and view loan documents such as your Note, Mortgage/Deed of Trust or Appraisal. If the document you are looking for is not available for view, you may request a document on the form provided or you may send us a secure message using the Message Center.
- If my loan is current, why am I being charged for fees?
- Bankruptcy fees are incurred even if the loan is current as Pennymac may need to retain local attorneys to participate in bankruptcy proceedings and protect Pennymac's interest in the loan and the property.
- Loan Information and Access
- Rest assured knowing that you have 24/7 access to your loan information from your phone, tablet or PC on our website at PENNYMAC.COM. Since mail may be disrupted in your neighborhood from a disaster, the website is helpful for several things: Access your Monthly Statement - At "Statements and Documents" you can access your monthly statement. Make a One-Time Payment - You can make a payment online in 3 easy steps. If you haven't scheduled a payment with us before, please have your bank routing number and checking or savings account handy. Need Help? - Let us know how we can help you by sending us a message in the secure Message Center.
- What should I do if I have a name change?
- In order to update our records to reflect your recent name change, the following information is required: Create a legible copy (PDF format preferred) of your Driver's License or State photo identification. Create a copy (PDF format preferred) of a legal document such as a marriage certificate, divorce decree, or name change affidavit, reflecting the reason for the name change. Create a copy (PDF format preferred) of your updated homeowner's policy, reflecting the name change. Visit the secure Message Center. Compose and send a message with the appropriate documents as an attachment.
- How do I order a Verification of Mortgage (VOM)?
- You may contact Pennymac through the secure Message Center for these requests: Create a copy (PDF format preferred) of your written Verification of Mortgage request. If you wish to request a third-party authorization, please attach a signed, written request in the message to that effect. Visit the secure Message Center. Compose and send a message with the appropriate document(s) as an attachment.
- Why will PennyPaperless Statements make managing my account easier?
- Pennymac offers the convenience of paperless statements to simplify managing your mortgage. Get notified as soon as your statement is ready and have 24/7 access to everything online. Electronic statements provide easy access whether you need to view, print or download. You can even set up a text or email automatic payment reminder on the date you choose to stay on track. Log in and select "Account Settings" then "Paperless Preferences" and "Online Only" to get started. You can always switch back if you miss the paper.
- How can I request a payoff statement?
- Log in and go to the Payoff Resource Center where you can request a statement online. You'll receive an email notification as soon as your statement is available to view and find information about paying off your loan.
- How can I send correspondence or provide feedback to Pennymac about my customer experience?
- Pennymac welcomes your feedback! You can send correspondence, ask questions, or raise concerns or complaints by clicking on the secure Message Center link in the left navigation tool bar: Create a copy (PDF format preferred) if you need to send us documents. Visit the secure Message Center of your online account. Compose and send a message with any documents you wish to send us as an attachment. If you do not already have a Pennymac account, please visit the Contact Us section of the Pennymac website.
- How will I know the text message with my code is really coming from Pennymac?
- All of our text alerts will tell you they are from Pennymac. If you ever suspect that you received a text message that is not from us, please immediately call our customer service department.
- What is Two-Step Verification?
- Two-Step verification is an additional security feature for your account that is designed to prevent unauthorized third parties from accessing or using your account, even if they know your password. It requires you to verify your identity using one of your specified methods before logging in.
- My social security number is incorrect in your system. How can I get it updated?
- You will need to send us proof of your correct social security number. Please follow the steps below: Create or locate a copy (PDF format preferred) of your social security document. Visit the secure Message Center. Compose and send a message with your social security document as an attachment.
- How do I update my mailing address?
- You should notify Pennymac right away if your mailing address changes. You can update your mailing address by visiting the Account Settings of your online account and selecting Contact Information. Note that changing the mailing address will affect where we send your Monthly Billing Statement and other important information that must be mailed to borrowers on the loan.
payments & billing
- What bank account types may I use to pay using the One-Time Payment option?
- The One-Time Payment feature requires the use of a valid checking or saving account. Other account types are not supported by this service at this time.
- How does Pennymac apply funds received that are more than my normal monthly mortgage payment?
- If you tender funds that are equal to or greater than two full payments, your funds generally will be applied based on the following payment hierarchy (unless your note provides otherwise): Principal and interest payment, Escrow payment (if you have an escrow account for payment of property taxes and hazard insurance), Escrow Advance/Escrow Shortage (if due), Late Charges (if due), Other Fees (if due), and Principal reduction. If you are expecting to send additional funds outside of your normal payment pattern, please contact Pennymac and let us know how you want us to apply those funds.
- What is Pennymac AutoPay Bi-Weekly?
- This payment service is where the equivalent of 13 payments are made within a 12-month period. The monthly payment is divided in half and drafted every 14 days, which results in two additional drafts in one year that are applied as a principal reduction. To be eligible for this program, you must be paid one month in advance, and you cannot make additional principal payments, or the plan will be canceled.
- What is Pennymac AutoPay Monthly?
- Pennymac AutoPay Monthly is a service where you can elect to have your payments automatically deducted from your bank account once a month on the date of your choosing.
- If I have a draft scheduled for today's date, can I cancel it?
- Unfortunately, no. In order to cancel a Pennymac AutoPay draft, Pennymac needs the request to be submitted no later than 3 business days prior to the draft date.
- How can I change my bank account number for my Pennymac AutoPay Monthly?
- You can change your elections at any time online. To change your bank account number, select Make A Payment from your online account and click on Automatic Payments. On this screen, when you have an active Pennymac Auto Monthly Program, you can select the Make Changes button that will allow you to edit your bank information, your amounts, or even your selected day of the month to draft your payments. Be sure to complete the form and submit it for your requested changes to be processed. At this time, if you are enrolled in Pennymac's AutoPay Bi-Monthly Program, election changes must be managed by contacting our Customer Service Department.
- How can I change the draft date on my Automatic Payments?
- You can change your elections at any time online. To change your draft date, select Make A Payment from your online account and click on Automatic Payments. On this screen, when you are enrolled in an active Pennymac Auto Monthly Program, you can select the Make Changes button that will allow you to edit your bank information, your amounts, or even your selected day of the month to draft your payments. Be sure to complete the form and submit it for your requested changes to be processed. At this time, if you are enrolled in Pennymac's AutoPay Bi-Monthly Program, election changes must be managed by contacting our Customer Service Department.
- How can I make a change to my bank account that was entered?
- Visit the Make A Payment section of your online account and go to the Pending Payments page. Select the edit link for the payment you would like to make changes to or use the cancel link to cancel the payment all together.
- Is there a charge to make a payment online?
- No, there is not a charge to make a payment online or with the Pennymac Mobile app. The One-Time Payment option is a free, easy to use tool for you to make your monthly payments. You may also wish to consider visiting the Automated Payment section to sign up for automatic monthly payment options.
- What happens if I click 'Submit' more than once when I am making a mortgage payment? Will there be a duplicate payment?
- Clicking on the submit button more than once while using the One-Time Payment feature will not create duplicate submissions. You can also view your pending payments to ensure there have not been any duplicates created accidentally.
- When I am processing my online bill payment and include a comment in the memo section, does Pennymac receive this information?
- Even though there may be a memo section on your home banking template, Pennymac does not receive this information on electronic file transfers. If a check is sent to Pennymac by your bank, the memo section may still not be available or may be incomplete.
- How can I confirm that my payment has been scheduled?
- You can verify if your payment was successfully submitted by viewing the ‘Pending Payments’ section of your online account. Or log in to the Pennymac Mobile app and choose ‘More’ in the menu and select ‘View Pending Payments’. If you do not see the payment, you may need to schedule another one-time payment.
- Why is there a delay in receiving my payments from my online banking service?
- The timeframe for receiving your payment from your bill pay service depends on the relationship with the payee. Pennymac is set up to receive electronic payments with most large banks. Those payments can usually be delivered in 1-2 business days. Some bill pay services (typically smaller banks and credit unions) will issue paper checks to Pennymac. Those payments are typically delivered by regular mail within 5-7 business days from the date you initiated the transaction.
- If I schedule my draft date to be the last day of my grace period and that falls on a weekend or holiday, will my payment be considered late?
- No, if your draft falls on a weekend or holiday it will be applied the next business day without any penalties.
- What happens if my draft date falls on a Sunday or holiday?
- Pennymac processes payments Monday through Saturday (excluding certain holidays) up to 8pm Pacific. If your scheduled draft date falls outside this schedule, such as a Sunday, Thanksgiving Day, Christmas Day or New Year's Day, it will be applied the next business day.
- Do I have the option to make extra principal payments, and what is the benefit?
- Yes, you have the option to make extra principal payments. You can go to the One-Time Payment section of your online account and select Principal Reduction. This will schedule your principal reduction payment on the date you select. Your loan must be current before an additional principal payment will be applied. The benefit of making extra principal payments is that your account will mature sooner resulting in less interest being paid over the life of the loan.
- Where can I find how my payment was processed?
- We encourage you to visit the Loan Activity page of your online account and review how your payment was applied, especially if you submitted an amount that is different from what is expected (total payment due). If we applied your funds in a manner that was not your intention, please contact us through the secure Message Center or visit our Contact Us page so we may correct the application of your funds.
- What happens if I do not have enough funds to cover my automatic payments?
- It is important to make sure you have sufficient funds present in the account from which your automatic payments are being drawn. If your account does not have enough funds to cover the complete payment amount, the payment will not be successfully processed and you may be charged nonsufficient fund (NSF) fees. Also take note, should an NSF event occur enough times, the Pennymac AutoPay Program can be cancelled as a result and you may be required to make future payments with certified funds (e.g. cashier's check, money order, or wire transfer). If you are having problems making your payment or anticipate it may become a problem, please contact us to discuss payment assistance options.
- Will I know in advance how much my payment may change?
- Pennymac will send a notice to you regarding the current and new interest rates, the change in your principal and interest payment and the date your new payment is due. At seven to eight months prior to the first rate change, Pennymac will send out an initial notice to you regarding the upcoming change and provide an estimated amount of what the interest rate, principal and interest payment may be at the time of your first change. An additional notice will be sent to you for the actual interest rate and principal and interest payment amount 25 or 60 calendar days before the first scheduled change. This time frame depends on the terms of the Note and the Index availability prior to the change date. After the initial rate change, you will receive notice within two to four months before ongoing rate changes. These notices are only required if the rate change results in a change to your monthly payment.
- If I make a payment today, when will it be applied to my account?
- Payments made before 8pm Pacific, Monday through Saturday (excluding certain holidays) will be processed and sent to the receiving bank that same day. Payments made after 8pm Pacific will be applied on the next business day. Pennymac processes payments Monday through Saturday (excluding certain holidays).
- How can I make an online payment?
- You can make a One-Time Payment payment in your online account or using our Pennymac Mobile app. You will need your bank routing and account numbers to process this request.
- How can I tell if my One-Time Payment was scheduled? How can I cancel a pending payment?
- See if your one-time payment was scheduled by visiting the ‘Pending Payments’ section of your online account. Or log in to the Pennymac Mobile app and choose ‘More’ in the menu and select ‘View Pending Payments’. You can also cancel a pending payment if needed.
- When are my payments considered late?
- Payments are considered late if they are not received by the due date on your Note. Most Notes require payments to be made on the first day of the month with a 15-day grace period before a late fee will be charged. You can view this information on your monthly statement.
- Can I make my payment with a credit card?
- At this time, we do not accept payments made with a credit card.
- How do I let Pennymac know I have a question about how my payment was applied?
- If you have a question about how a payment is applied, please submit a payment research request through the secure Message Center. Create or locate a copy (PDF format preferred) of any documents that would be helpful to conduct your research. Visit the secure Message Center of your online account and send a message with any relevant documents as an attachment.
- What financial institution does Pennymac receive electronic fund transfers from?
- This information is available at the following web site: http://www.ebillplace.com/cda/ebillplace/getstarted/banksearch_results.jsp. To provide you the best service possible, Pennymac is regularly working with financial institutions/bill pay services to convert from a physical check to an electronic file. We will update this site with new financial institution names as they become available.
- Can I set up a repeating payment from my bill pay service that will ensure funds are processed in accordance with my intentions?
- There are some challenges with Home Banking due to limitations in receiving your payment application intentions. We may be able to provide you more flexibility with your payment application by enrolling in Pennymac's AutoPay Program. Please visit the Automatic Payments page of your online account to set up your program.
- If I sign up today for automatic payments, do I need to make my payment for this month?
- Yes, you will still need to make your payment until you receive confirmation of what month your automatic drafts will begin.
- How long does it take for a scheduled transaction to complete and funds to be cleared/drawn from my bank account?
- Funds should clear your bank account within 24-48 hours from the day your payment processes. If there is an issue with the transaction, you will be notified via an email from Pennymac to check the secure Message Center of your online account for the details of what happened.
taxes & insurance
- What part of my payment is applied to my escrow account and what happens if Pennymac has to pay my taxes or insurance premium and there is a different amount in the escrow account than the amount owed?
- The amount of money applied to your escrow account is determined by the amount needed to pay your taxes and/or insurance on a yearly basis. This amount will change when the amount needed to pay these items either increases or decreases, or the scheduled payment for the last year has not been met. You can find the amount of your escrow payment in the Loan Activity section of this website or on your monthly billing statement. Pennymac will pay the full amount due for your taxes and/or insurance premiums even if you do not have sufficient funds in your escrow account. The shortage will be reflected on your monthly statement, and Pennymac will collect the shortage back from you in additional monthly amounts over the next twelve months after your escrow account is analyzed. Your escrow account is set to be analyzed every twelve months. If there are any extra or surplus funds, an overage check will be sent to you within 30 days after the analysis has been completed.
- What is an Annual Escrow Analysis, how often will I receive an Escrow Account Analysis Disclosure statement, and do I need to do anything in response to the Annual Escrow Analysis statement?
- An escrow analysis statement will show you what is projected to be paid over the next twelve months to ensure that your property taxes and insurance premiums are kept current. If your taxes and insurance are serviced by Pennymac, we will analyze your escrow account at least once every twelve months to ensure there are sufficient funds being collected to make all scheduled payments. The annual escrow analysis determines if any adjustments need to be made to your escrow payments based on projected payments for the coming year. You should review this statement to make sure that Pennymac is scheduled to pay your taxes and/or insurance premiums at the correct time and for the correct amount. Discrepancies should be reported to Pennymac immediately. An annual escrow analysis details amounts collected, payments made, and anticipated payments for the coming year. This analysis is available to you in the Statements & Documents section of your online account and by mail if you have not elected paperless only delivery.
- Will Pennymac cancel PMI at midpoint?
- Yes, PMI will be terminated automatically if you reach the midpoint of your loan's amortization schedule (halfway through the life of your loan). For example, on a 30-year loan, the midpoint would occur after 15 years have passed. This may occur for people who have a mortgage with an interest-only period, principal forbearance, or a balloon payment. Keep in mind that you must be current on your monthly mortgage payments for termination to occur.
- Will Pennymac cancel my PMI on my conventional loan at Midpoint?
- Generally, the PMI on loans will cancel through auto-termination or borrower requested deletion; however, if these dates have not been reached, your PMI will be terminated automatically on your loan if you reach the midpoint of your loan's amortization schedule. The midpoint of your loan's amortization schedule is halfway through the life of your loan. For example, on a 30-year loan, the midpoint would occur after the 15 years have passed. Keep in mind, you must be current on your monthly mortgage payments for termination to occur.
- What if I want to change insurance carriers?
- Having an escrow account does not prevent you from making changes to your insurance. This means you are free to change insurance carriers any time you wish. To make a change in carriers, request your old carrier to forward a cancellation notice to Pennymac. Please ensure your new insurance company is aware that your insurance is escrowed and also provide them with your loan number and the mailing address found on the Contact page on this website to ensure your monthly premium is paid by Pennymac on time.
- When is my conventional loan eligible for PMI deletion?
- Generally the PMI will be terminated automatically when the principal balance is first scheduled to reach 78% of the original value of the secured property, based on the initial amortization schedule, provided that the loan is current on the anticipated cancellation date. Additional requirements regarding the loan may need to be met to determine eligibility. When the PMI is terminated automatically, a confirmation letter will be mailed. If the loan to value reaches 80% prior to the automatic termination on point, you may initiate a review for PMI deletion. However, there may be a cost for a Brokers Priced Opinion (BPO) or an Appraisal.
- What is the difference between PMI and MIP?
- PMI is a type of mortgage insurance used with conventional loans. Conventional loans may be eligible for early removal of monthly PMI premiums, as long as certain requirements are met. Borrowers with FHA-insured loans pay an up-front mortgage insurance premium (UFMIP) and annual mortgage insurance premiums (MIP). These premiums are set as a percentage of the loan amount. FHA mortgage insurance premiums are normally required regardless of the LTV, and generally last for the life of the loan. The rules for cancellation or termination of PMI do not apply to FHA or VA loans.
- Why should I set up an escrow account to pay my taxes and insurance?
- The benefit of an escrow account is that you do not have to worry about paying a large tax or insurance bill in one lump sum. Additionally, Pennymac will always ensure that your taxes and insurance are paid when they come due, even if there is a shortfall in the amount available in your escrow account. Any such shortfalls will be made up over the course of future monthly escrow payments.
- What is an escrow account?
- An escrow account (also known as an impound account) is an account established to help customers pay property taxes and insurance premiums for their mortgaged property. Deposits are made to the escrow account from your monthly mortgage payments in addition to the principal and interest amounts due. Note that supplemental tax bills generally are not paid from the escrow account. Any supplemental tax bills must be paid directly by you to the taxing authority. Similarly, homeowner or condo association dues are not paid from your escrow account, and they should be paid directly by you. This type of escrow account is different than the escrow account established by the closing agent during the making of your loan.
- What does a Current Escrow Balance represent, what is an escrow cushion and why is it included in my escrow account?
- This is the amount of money currently in your escrow account available to pay taxes or insurance for your property. Your escrow account includes a two-month cushion of your monthly escrow payment to prevent a shortage amount in case your taxes or insurance payments increase. You can locate your Current Escrow Balance in the Escrow section of your online account.
- How can I file a property claim if my insurance is escrowed?
- If you sustain damage or loss to the property that secures your mortgage loan, you need to contact your insurance carrier to file a claim. The carrier will send an adjuster to the property who will assess the damage. If the damage that has occurred is covered under your insurance policy, an insurance claim check should be sent to you. This check would include Pennymac as an additional named payee under the mortgagee clause of your policy. Once you have received the insurance claim check, you can contact Pennymac's Insurance Department for an explanation of the process by which Pennymac will monitor the repair process and disburse the insurance proceeds. If your loan is current and the total insurance claim check is less than $10,000, Pennymac will endorse the check over to you to be used for repairs. If your loan is delinquent or the check is more than $10,000, Pennymac will deposit the funds into a restricted escrow account and pay you from those funds once repairs are completed. Before sending your check to Pennymac, please make sure all other payees have signed it or Pennymac will not be able to start processing your request. You should send the check to the following address: Insurance Claim Center - Attention: Loss Drafts Pennymac 776, P.O. Box 6501, Springfield, OH 45501
- Is an initial deposit required to establish an escrow account?
- There is no fee or deposit required to establish an escrow account. However, a deposit to create an initial balance in your escrow may be beneficial for you in order to begin saving for the upcoming payment amounts due. Generally, a deposit equal to two months escrow payment, subject to state limitations, is recommended.
- What do I need to do if my insurance is cancelled and/or force-placed or lender-placed insurance is placed on your property?
- Most mortgages require proof of a minimum amount of hazard insurance to protect the lender's interest in the property that secures the mortgage loan from fire, wind, and other property damage. If your insurance is cancelled, it is important for you to replace any required insurance on the property right away. Failure to replace a cancelled policy may result in the placement of insurance coverage by your lender (known as lender-placed or force-placed insurance) to meet the required minimum insurance for the property. Force-placed or lender-placed insurance is purchased when Pennymac receives notification that your homeowner's, flood, or other hazard insurance coverage has been cancelled and we have not received renewal or replacement policy information. The cost of lender-placed insurance will be added to your monthly mortgage payment. Lender-placed coverage may be more expensive than insurance you would purchase yourself and may not provide the same coverage. In order to avoid lender-placed insurance, please consider taking the following steps: Create or locate a copy (PDF format preferred) of your insurance policy declaration page. Visit the secure Message Center of your online account. Compose and send a message with the insurance declaration page as an attachment. Pennymac will update your insurance information within 3-5 business days from the time we receive the request and the insurance declaration page. Once completed, the new insurance information will be reflected in the Escrow section of your online account that details your insurance information. If there is a change in any lender-placed insurance, visit the secure Message Center of your online account. Compose and send a message with the declaration page or policy as an attachment. If we purchase lender-placed coverage and you can provide proof of your own coverage for that period of time, any lender-placed premiums will be refunded and credited to your escrow account.
- How can I keep track of payments made to my escrow account?
- You may view account activity such as escrow payments by visiting the Loan Activity section of your online account. In the Loan Activity section, you can view Pennymac activity describing who was paid, how much, and when it was paid. In addition, you may view this information in the Transactions section of your monthly billing statement, which reports activity since your last statement.
- What if my monthly mortgage payment is automatically drafted from my checking or savings account and my escrow payment changes?
- Once Pennymac sets up your new payment, it will automatically deduct from your bank account at the new payment amount if you are signed up for the Pennymac AutoPay service (ACH). It is your responsibility to ensure that there are sufficient funds in your account on your scheduled payment deduction date. Please check the Make A Payment section of your online account for all pending payment information. If you use an online banking or bill-pay service, you may need to adjust the payment amount directly through that payment service as Pennymac will not have access or authority to do it on your behalf.
- What is a mortgagee clause and how should Pennymac be identified?
- A mortgagee clause in an insurance policy reflects the name and address of your mortgage lender or servicer, which would be a co-payee on any amounts paid by the insurer on a covered claim based on the lender's interest in your property that secures its mortgage loan. Pennymac's address for the mortgagee clause of your hazard policy is: PennyMac Loan Services, LLC Its Successors And/Or Assigns P.O. Box 6618, Springfield, Ohio 45501-6618
- Am I responsible to pay a Supplemental Tax Bill?
- Supplemental Tax Bills generally are not included in the escrow account set up for your loan. These supplemental bills are the responsibility of the property owner to pay. However, if paying this bill will create an undue hardship, you can request Pennymac to pay this bill from the balance remaining in your Escrow Account and any shortfalls will need to be made up over the course of future escrow monthly payments.
- Will Pennymac pay for Condominium/ HOA fees?
- No, condominium and homeowner association ("HOA") fees are not included in your monthly mortgage payments. You are responsible for paying condominium/HOA fees directly to your association.
- How long will I have to pay for PMI on my loan?
- PMI on a conventional loan will be terminated automatically when the principal balance is first scheduled to reach 78% of the original value of your home. The loan must also be current on the anticipated cancellation date, or it will be terminated after the loan is brought current. Additional requirements regarding the loan may need to be met to determine eligibility. A confirmation letter will be mailed to you when PMI is terminated automatically. The Homeowners Protection Act (HPA) gives you the right to request PMI cancellation when the principal balance of your mortgage is scheduled to reach 80% of the original value of your home, or the date the principal balance actually reaches 80% of the original value. Cancellation may require an appraisal (at your own expense) to confirm your home's value hasn't declined since closing; a good payment history and being current on your payments; and certification that there are no junior liens on your home. Some state laws may have additional requirements for cancellation or termination of PMI.
- What is Private Mortgage Insurance?
- Private mortgage insurance, also called PMI, is a type of mortgage insurance used with conventional loans. Like other kinds of mortgage insurance, PMI protects the lender if you stop making payments on your loan. Most mortgage lenders require private mortgage insurance (PMI) on conventional mortgage loans originated with a loan to value (LTV) ratio greater than 80%, meaning the borrower made a down payment of less than 20% of the home's purchase price, or refinanced with equity less than 20% of the value of the home. PMI protects the lender from losses if the borrower defaults on the loan. Typically, a borrower will pay for PMI by a monthly premium added to the monthly mortgage payment. Sometimes PMI is paid for with a one-time upfront premium paid at closing, or with both upfront and monthly premiums.
- How can I let Pennymac know that I qualify for homestead exemption?
- Homestead exemption laws, available in some states, protect the value of a home from property taxes, creditors and circumstances arising from the death of a homeowner spouse. If you have qualified for an exemption, you can send Pennymac a copy of your homestead exemption document and upload it through the secure Message Center of your online account. Create or locate a copy (PDF format preferred) of your homestead exemption document. Visit the secure Message Center on this website. Compose and send a message with the homestead exemption document as an attachment.
- What should I do with the tax bills that I continue to receive?
- If your account is escrowed for taxes and you receive a tax bill, you do not need to take any action as Pennymac receives the information as well. However, if you receive a delinquent notice, you will need to send it to Pennymac. You can contact us through the secure Message Center of your online account to share the information contained in the letter. Create or locate a copy (PDF format preferred) of your tax bill. Visit the secure Message Center of your online account. Compose and send a message with the tax bill as an attachment. If Pennymac does not include your tax payment in the escrow account, you are responsible for payment of your taxes directly to the taxing authority. Failure to pay these taxes in a timely manner may result in Pennymac paying these amounts on your behalf and requiring reimbursement and/or creation of an escrow account as part of your mortgage payments going forward. If you are not sure whether Pennymac collects for payment of your taxes, please visit the Escrow section of this website.
- When will I receive my escrow or surplus refund balance after I have paid my loan in full?
- Once your loan has been paid in full, the escrow/surplus balance (if any) will be refunded to the mailing address on our system within approximately 15-21 business days from the date of the payoff transaction. If you are moving, please be sure to provide any change of address at the time of your loan payoff.
- Can I request PMI cancellation based on my property's current value?
- Yes, you may request to have your loan reviewed for PMI cancellation based on the current value of your home, rather than the original value. Generally, the current value of the property needs to be validated by an appraisal (at your own expense). The property must meet a certain LTV ratio to be considered, generally 75% or below depending on investor guidelines, regulations and/or state law. If the loan closed less than 2 years ago you may need to provide evidence of substantial improvement to the property value.
- How can I request to be reviewed for PMI cancellation?
- In order to begin a review of the eligibility process, please contact us using one of the following methods: Submit a secure message request via the website through the secure Message Center. Call our Customer Service department for assistance and a specially trained Customer Service representative will walk you through a pre-screening of the possible eligibility on your loan. If it is determined that your loan may qualify for PMI cancellation, your request will be assigned to the PMI Deletion team for further review.
- When can my Private Mortgage Insurance be reviewed to be taken off my loan?
- Mortgage insurance may only be cancelled when certain requirements are met based on investor guidelines and applicable law. If you feel that you have met the criteria, you may submit a secure message through your online account to be reviewed for cancellation. Create or locate a copy (PDF format preferred) of your written request to remove your mortgage insurance. Visit the secure Message Center of your online account. Compose and send a message with written request as an attachment.
- Where should I send my insurance bill?
- If your insurance is escrowed, Pennymac must be identified in your insurance policy as the mortgagee. You will not need to send Pennymac your insurance bill as you receive it so long as Pennymac is named in the policy as we will receive a copy as well. However, if you receive a delinquent insurance bill, you should send us a copy. You may do so by sending a message through the secure Message Center of your online account: Create or locate a copy (PDF format preferred) of your insurance policy declaration page. Visit the secure Message Center of your online account. Compose and send a message with the insurance declaration page as an attachment. If Pennymac does not escrow for payment of your insurance, you are responsible for payment of your premium directly to your agent/carrier. Failure to pay these premiums in a timely manner may result in Pennymac purchasing an insurance policy to protect our interest in the property, which will increase your monthly payment amount. Force-placed or lender-placed coverage may be more expensive than insurance you would purchase yourself and may not provide the same coverage. If you are not sure whether Pennymac collects escrow for payment of insurance premiums, please visit the Escrow section of this website.
- Where can I send my proof of insurance?
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If you have Hazard Insurance coverage, please provide us with the front page of your policy or binder that summarizes coverage, limits, deductibles, and states the current coverage period for your policy or binder. We will also accept a notice showing that an acceptable policy has been reinstated. Please submit your evidence by using one of the below methods:
- Provide policy information on our website at www.mycoverageinfo.com/pennymac.
- Email policy information to pennymac@mycoverageinfo.com
- Mail a copy of your Hazard Insurance Declaration Page with your loan number to the mortgagee listed below:
PennyMac Loan Services, LLC
ITS SUCCESSORS AND/OR ASSIGNS
P.O BOX 6618
SPRINGFIELD, OH 45501-6618 - Fax a copy of your Homeowners Insurance Declaration Page with your loan number to 1-866-235-1215.
- How do I set up an escrow account on my mortgage and how will I know if Pennymac has received my request and completed the setup?
- You may submit a request through the secure Message Center of your online account that you would like to set up an escrow account. You will be notified of any documents that you will need to provide for Pennymac to set up your escrow account. You may also visit the Contact Us page to call Customer Service. Once complete, you will receive a written confirmation. In addition, you can check if your escrow account has been set up by viewing your account details in the Escrow Center section of your online account.
- I have taxes and/or insurance due now; will I still be able to set up an escrow account?
- Property taxes and insurance premiums must be paid in full and current prior to establishing an escrow account. If you have a tax or insurance premium due within one month of receipt of your escrow setup request, you must first pay those items as they come due.
- My loan was transferred from another servicer to Pennymac this year. Who will provide my year-end amounts for the full year?
- You will receive two year-end statements. One will be from your prior servicer and the second will be from Pennymac for the time after your loan was transferred.
monthly & year-end statements
- I received my 1098, but what do I do with it?
- Please consult with a tax professional for any questions regarding tax deductibility or preparation.
- I received my 1098, but I refinanced during the year from a different lender and it does not reflect the entire year’s amount.
- A separate Form 1098 must be filed for each mortgage. A 1098 issued by Pennymac will reflect the amount of mortgage interest (including points) received by Pennymac during the year. Your previous loan servicer is responsible for sending a 1098 for the period of time they serviced your loan. You could also receive more than one 1098 if you refinanced your property during the year.
- When will my year-end statement be available?
- Year-end statements will be mailed and available online the third week of January. Be sure to update your preferences to select Paperless Delivery method if you do not wish to receive the paper year-end statement. You will be able to access the year end statement online at any time once it is available.
- Why can't I see my statement when I click on the PDF in my Statements tab?
- Please check your browser settings to make sure you have disabled pop-up blockers.
- I received a corrected 1098, but have already filed my taxes. What do I do?
- Please consult with your tax professional and advise that your 1098 information has changed.
- Why didn’t I receive a 1098?
- If you paid less than $600 in mortgage interest (including points) during the year, you will not receive a 1098 from Pennymac.
- My loan was acquired by Pennymac. Will I receive a 1098?
- Pennymac only reports mortgage interest on payments made to Pennymac. You should receive a 1098 from each company you paid reportable mortgage interest or points to. You could receive more than one 1098 if the servicing of your loan transferred during the year.
- I misplaced my 1098, can I order a new one?
- Registered customers can easily view, download and print their 1098 online. If you are not registered, please visit our website at PENNYMAC.COM to register. If you are registered already, your 1098 will be available on our website in the Statements and Documents section.
- When is the monthly billing statement for my account sent out?
- Monthly billing statements are generated between the 10th and 22nd day of the month prior to the payment due. For example, if you are looking for the monthly billing statement for June, it will be generated some time between May 10th and May 22nd. Online PDF versions of your bill are typically available within 2-3 days after that, and will be posted to the Document Center section of this website. If you wish to no longer receive your billing statement via mail, you can update your preferences to enroll in paperless statements by visiting the Account Settings of your online account and selection Paperless Preferences from the list.
- Why did I receive a Corrected 1098?
- If it is determined that any information on your 1098 is inaccurate due to an error, we will issue a corrected 1098.
- Why doesn’t my Social Security number appear on the 1098?
- The IRS requires Pennymac to report mortgage interest received from the payer of record. We report it in the name and social security number of the primary borrower.
- Why does my monthly billing statement indicate that I have two payments due?
- Statements that are printed before the receipt of your last payment will reflect your current month's amount due as well as any amount that you are past due. If you mailed your payment after your due date, the statement may reflect that you have two payments due. Please check with your bank to ensure your payment has cleared your account. To verify that Pennymac has received your payment, you may view the Loan Activity page of your online account.
- Can I view and print my 1098 online?
- Yes! Click on the Statements & Documents section and you will see your Year-End Statement. When you click on the link, it will open a PDF in a new tab for you to view, print or download.
- What is a Form 1098?
- IRS Form 1098, Mortgage Interest Statement, is used to report mortgage interest (including points) of $600 or more you paid during the year. Form 1098 is also commonly referred to as a year-end statement or annual tax statement.
- When will I receive my 1098?
- If you receive your monthly statement by mail, you will receive both your monthly statement and paper Form 1098 in the same envelope as your February statement (mailed in January). The outside of the envelope will state “Important Tax Return Information Enclosed”. If you receive your monthly statement and year end statement electronically, the combined statements will be available on our website and will be located in the Statements and Documents section. Registered customers will receive an email notification when the year end statement is available online to view, download and print.
- Why did I receive a 1099-INT?
- IRS Form 1099-INT is filed for all customers who earn $10.00 or more of interest on their escrow balance. Earned interest amounts are deposited to a customer’s escrow account either monthly or annually depending on state requirements. Not all customers will earn interest on escrow.
- Why did I receive a Form 1099?
- If your property went through a foreclosure, deed in lieu or short sale process during the year, you will receive a copy of Form 1099-A or 1099-C. Form 1099-A is used to report a loss for completed foreclosures and deeds in lieu of foreclosure. Form 1099-C is used for properties sold in a short sale or for loans where any portion of the debt was forgiven. This may include principal reduction modifications and incentive modification programs.
technical support
- What if I have trouble accessing my account online?
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Some basic troubleshooting tips to help you log in successfully.
- Check that your username and password are correct. If you forgot your username and password, be sure to reset it
- If you know your password is correct, try restarting your browser or your computer before attempting to log in again.
- Clear your browser’s cache and cookies. For step-by-step instructions, google your browser name along with “clear cache, cookies.”
- Trouble using the mobile app? Be sure you have the most up-to-date version of our iPhone or Android app. If you’re still unable to log in using the correct username and password, please delete the app and reinstall the latest version before trying again.
- How can I add this website as a bookmark on my phone?
- You can add Pennymac to your phone's home screen as an icon that links directly to our website (as a shortcut): Chrome: Open Chrome browser, enter in PENNYMAC.COM. From your phone's menu, select "add to Home Screen." Adjust Title as you wish. Select 'Save'. Internet Explorer: Open Internet Explorer. Enter in PENNYMAC.COM. From your phone's menu, select "Add shortcut to home." Adjust Title as you wish. Select 'Save'. iPhone: Open Safari. Enter in PENNYMAC.COM. From your phone's menu, select 'Share'. Select 'Bookmark'. Adjust Title as you wish. Select 'Save'.
- Where can I send Pennymac a document or view any secure messages that have been sent to me?
- You can view messages that have been sent to you by going to the secure Message Center and clicking on your inbox. You can compose a secure message to upload and attach a document to be included in the message: Create a copy (PDF format preferred) of any documents that would be helpful to conduct your research. Visit the secure Message Center. Compose and send a message with any relevant documents as an attachment.
- How do I sign up for paperless statements?
- You may manage your paperless elections at any time by going to your Account Settings and selecting the Paperless Preferences option. From there, you have the ability to change your preference to online only delivery (paperless) of your billing and year-end statements. Regardless of your paperless choices, we always make your statements available online as PDF documents and can alert you to when those documents have been made available for view in your online account.