FAQs

Yes, entering a trial period plan or receiving a permanent loan modification will likely impact your credit, but the exact effect depends on the current status of your account.

Here is exactly how your loan will be reported to the credit bureaus during the process:

1. During the Trial Period

While you are making your trial payments, we will report your loan as "paying under a partial payment plan."

Important Note: If your loan is already past due when your trial begins, your account will continue to be reported as "delinquent" until the permanent modification is officially complete—even if you make all of your trial payments perfectly on time.

2. After the Permanent Modification

Once your trial is successfully completed and your final Modification Agreement is signed and processed, your loan will be officially updated and reported as "modified." At this point, the permanent modification will typically bring your account status back to current.

A Note About Credit Scores:

Staying current on your payments is always the most effective way to protect your credit. While Pennymac accurately reports your loan status, we do not calculate or control your actual credit score. For specific questions about how these statuses impact your overall credit rating, we recommend contacting the major credit reporting agencies directly.

We understand that dealing with property damage from a natural disaster or accident is an incredibly stressful experience, and our first concern is that you and your family are safe.

If your home has been impacted, please take the following steps as soon as you are able to do so:

• File an insurance claim: Contact your homeowner's or flood insurance provider immediately to report the damage and file a claim. If your damage is covered, they will assign an adjuster to assess your property.
• Register for FEMA assistance: If you are in a declared disaster area, you may be eligible for additional support. Visit DisasterAssistance.gov or call 800.621.3362 to register.
• Contact the Pennymac Insurance Department: If your insurance company sends you a claim check, it will typically need to be endorsed by both you and Pennymac. Call us at 866.314.0498 so we can guide you through the loss draft process.

Are you worried about making your upcoming mortgage payment?

If the disaster has caused a financial hardship, we are here to help. Please review our complete Property Damage & Payment Assistance guide to learn about Disaster Forbearance Plans and other relief options, or call our customer support team at 800.777.4001.

A loan modification may be an option if you meet the following basic eligibility requirements:

• Inability to Refinance: You are currently ineligible to refinance your loan.
• Financial Hardship: You are facing a long-term financial hardship (such as a reduction in income, increased household expenses, medical illness/disability, or divorce).
• Payment Unaffordability: Your monthly mortgage payments are no longer affordable.
• Delinquency Status: You are behind on your mortgage payments or likely to fall behind soon.
• Willingness and Ability to Pay: You have the willingness and verified income to make reasonable monthly mortgage payments.

What to expect next: To apply, you will need to complete Pennymac's Mortgage Assistance Application and provide required supporting documentation, such as income verification. If you qualify, you will enter a Trial Period Plan lasting a minimum of three months. You must successfully complete this trial period by making timely payments before your loan modification can become permanent.

Yes, we will. Before establishing your Trial Period Plan, we will perform a complete escrow analysis on your account.

Why do we do this up front?

We need to accurately calculate what your new monthly escrow payment needs to be. To do this, we look ahead and factor in any property tax or homeowner's insurance bills that are scheduled to come due while you are in your trial period.

Performing this analysis before your trial begins ensures your estimated payments are calculated correctly and your home remains fully protected while we work toward finalizing your permanent modification.

Even if your loan has been referred to foreclosure—which typically happens around the 120th day of missed payments—you still have options to save your home. The most important step you can take right now is to contact us to apply for a foreclosure prevention program. Depending on your financial situation, you may qualify for one of the following:

• Forbearance Plan: Temporarily pauses or reduces your payments to give you breathing room during a short-term hardship.
• Repayment Plan: Allows you to catch up by adding a portion of your past-due amount to your regular monthly payments over a set period.
• Loan Modification: Permanently changes the original terms of your loan (such as the interest rate or the length of the loan) to make your monthly payments more manageable.

Successfully completing one of these options can stop the foreclosure sale and give you time to bring your loan current. Because strict legal deadlines apply based on your state, please contact our Loan Resolution Team at 866.545.9070 immediately to discuss which option is best for you.

To apply for a loan modification, you'll first need to review your eligibility and gather some basic financial information. Visit our Loan Modification Options page to learn more about the programs available and start your application.

Yes, we are here to support you during difficult times. If you've been impacted by a natural disaster or experienced property damage, payment assistance options like a forbearance or repayment plan may be available to you. These plans can provide temporary relief and give you time to recover and bring your loan current. For more details on these programs, please visit our Property Damage & Payment Assistance page.

Eligibility depends on your specific financial situation. To find out if you pre-qualify for a repayment plan or other home retention option, please contact a Pennymac Loan Expert. So we can assist you quickly, please be ready to discuss your current income and regular expenses when we speak.

Yes, a repayment plan can affect your credit. Because every homeowner's situation is unique, please reach out to your single point of contact to learn exactly how Pennymac will report your specific plan. Keep in mind that while we can explain our reporting process, Pennymac does not calculate your actual credit score. For the most accurate information on how your score might change, we recommend contacting the major credit reporting agencies directly.

What it is:

A repayment plan allows you to catch up on missed payments over time. If you qualify, we can spread your past-due amount over a set term and add it to your current monthly mortgage payment until your loan is brought current.

How it helps:

• Provides a solution: It gives you a structured way to resolve a temporary hardship and bring your account up to date.
• Prevents new late fees: No further late charges will be assessed on your loan as long as you make your payments on time.
• Protects your home: Proactively completing a plan helps you avoid more severe consequences, such as foreclosure.

If you are in foreclosure proceedings or your home has been scheduled for a foreclosure sale, please contact us immediately at 866.545.9070 so we can determine what options may be available for your account.

Because foreclosure is a time-sensitive legal process, we also recommend the following:

• Speak with a Housing Counselor: Call the Homeownership Preservation Foundation at 888.995.4673 to speak with a free, HUD-approved Housing Counselor.
• Protect your legal rights: It is important that you continue to respond to any foreclosure notices you receive. We encourage you to contact a lawyer or housing counselor to learn more about the legal consequences of foreclosure.

A Trial Period Plan is a temporary payment schedule—typically lasting a minimum of three months—that allows you to demonstrate you can comfortably afford a newly modified mortgage payment.

• The Notice: If you qualify, we will send you a Trial Period Plan Notice detailing your new estimated payment amount.
• Getting Started: Your plan becomes active the moment you make your first trial payment (which you can do online using our One-Time Payment option).
• The Requirement: To receive a permanent loan modification, you must make every trial payment on time and in the exact amount specified in your notice.
• Escrow Changes: If your original loan did not include an escrow account for property taxes and homeowners insurance, one will be created, and those costs will be included in your new monthly payment.

What happens if I don't successfully complete the trial plan?

If you are unable to complete the trial plan, you will not receive a permanent loan modification. However, we can still help you explore other options to resolve your hardship, which may involve transitioning to more affordable housing.

• Short Sale: If your home is worth less than your remaining loan balance, you may be able to sell the property for less than what you owe.
• Deed in Lieu of Foreclosure: You may be eligible to sign the title of your home over to your lender to satisfy the debt.
• Relocation Assistance: Depending on your specific loan type and investor guidelines, some of these relocation programs may offer financial assistance to help you move.

Successfully making your trial payments is a major step toward finalizing your permanent loan modification. To complete the process and make your new loan terms official, there are just a few final steps.

What happens next:

• Complete any remaining requirements: If you were asked to complete housing counseling or submit any final documentation, please ensure those are finished.
• Watch for your official documents: Once your trial is successfully completed, we will send you a letter and an official Modification Agreement defining the exact, permanent changes to your home loan.
• Sign with a notary: You will need to sign this agreement in front of a licensed notary public.
• Return the agreement: Return the notarized documents to us as soon as possible, but absolutely no later than the deadline date listed on your paperwork.

What to do while you wait:

Your modification only becomes permanent after we receive your notarized agreement and verify the signatures. Because this administrative step takes a little time, we strongly encourage you to continue making your monthly payments at your trial period amount until your permanent modification is officially active.

Important Note About Your Final Payment:

Please be aware that once your loan is permanently modified, your final, official monthly payment could be higher than the estimated payments you made during your Trial Period Plan.

If you do not qualify for a permanent loan modification, please do not lose hope. A modification is just one of several paths available, and our primary goal is still to help you avoid foreclosure.

Depending on your specific timeline, we will work closely with you to explore alternative loss mitigation options. In some cases, the most beneficial solution may involve a graceful transition to a more affordable housing situation (such as through a Short Sale or a Deed-in-Lieu).

Let's find the right path forward together:

The absolute most important step you can take right now is to keep the lines of communication open with us. Please connect with a Pennymac Loan Expert directly at 866.545.9070. We will review your account, explain your remaining options, and help you navigate the best possible outcome for your situation.

We’re happy to help you authorize someone to access your loan. To protect your privacy and keep your account secure, we just need a few key details in writing. Please provide a signed authorization request that includes these four items:

• Authorized Name: The full name of the person you are authorizing.
• Duration: How long the authorization should last (e.g., life of the loan, six months, or until a specific date).
• Loan Number: Your full Pennymac loan number.
• Signature & Date: Your handwritten signature and the date the request was signed.

How to submit your request:

The most efficient way to send this is to scan or take a clear photo of your signed request. Then, simply log into your online account and upload the file through our Message Center as a Secure Message.

We will verify and update your account within two to three business days. Once processed, we will be ready to assist your authorized representative.

You can update your online account password at any time directly from your account dashboard.

How to update an existing password:

• Log in: Access your secure account at PENNYMAC.COM.
• Navigate to settings: Select Account Settings and then Password from the menu.
• Enter your new password: You will be prompted to enter your current password, followed by your new one. (Be sure to follow the security requirements displayed on the screen.)
• Save your changes: Once saved, your new password will be active immediately for your next login.

Tip: Forgot your password and can’t log in?

If you are locked out of your account, you do not need to access your settings. Simply go to the main login screen, select Forgot Password?, and follow the email prompts to securely reset your access.

You can request copies of your loan documents by logging in to your account online or using the mobile app.

• For Standard Documents (Note, Closing Disclosure, Deed of Trust, Appraisal): Go to Statements & Documents, select the Request a Document tab, choose the files you need, and select Send Request.
• For All Other Documents: Visit the Secure Message Center and send us a message specifying the items you need.

Once processed, your documents will be available to view, print, or download in the Review Documents tab within the Statements & Documents section.

To update our records with your recent name change, please provide legible copies (PDF format preferred) of the following:

• Your Driver’s License or State photo identification
• A legal document reflecting the reason for the change, such as a marriage certificate, divorce decree, or name change affidavit
• Your updated homeowner’s insurance policy reflecting the name change

Once you have these documents ready, log in to your online account and visit the Secure Message Center to send us a secure message with the files attached.

To request a Verification of Mortgage (VOM), please log in to your Pennymac account and send us a request via the Secure Message Center.

In your message, please specify your preferred delivery method:

• Online (Fastest): We will upload the VOM to your Statements & Documents tab for immediate download and printing
• Mail: We will mail the document to your address on file
• Third-Party Fax: If you need it sent to a third party, please include the recipient’s fax number

Your request will be processed within 2 to 3 business days.

Accepted Payment Methods:

• Wire Transfer
• Title Check / Cashier’s Check
• Money Order

Important Restrictions:

• Personal checks are NOT accepted.
• Payoffs cannot be completed via the PennyMac website or automated phone system.

Wire Transfer: Please ensure your Loan Number is referenced on the wire.

Bank Name: JPM Chase
Account Name: PennyMac Loan Services, LLC
ABA #: 021000021
Bank Account #: 818073923
Information for Beneficiary (OBI): Attn Payoff [insert Pennymac loan number]

Mail (Regular or Overnight): Send Title Checks, Cashier’s Checks, or Money Orders to the address below. You must include your Loan Number with your remittance.

Payoff funds sent by Title Check, Cashiers Check or Money Order should be sent overnight or by regular mail to:

PennyMac Loan Services, LLC
Attention: Cash Management
6101 Condor Drive
Moorpark, CA 93021

You can request a payoff statement by logging in to your Pennymac account.

Visit the Payoff Resource Center and request your statement directly from that page.

You will receive a notification as soon as the statement is ready. Once available, the statement will include all the necessary information for your loan payoff, and you can view, download, or print it right away.

If you are a third party requesting a payoff demand on behalf of our customer, please use our third-party website at servicingpartners.pennymac.com.

We genuinely value your feedback. The best and most secure way to send correspondence, ask questions, or submit concerns is through our Secure Message Center.

Log in to your account and send a request via the Secure Message Center.

If you need to send supporting documents, you can easily attach them to your message. Please create a copy (PDF format is preferred) and attach it before sending. This secure method ensures your information gets to us safely and quickly.

To update the Social Security Number (SSN) or Taxpayer Identification Number (TIN) on your account, please provide proof of the correct number.

Log in to your account and send a request via the Secure Message Center. Please attach a clear copy of one of the following:

• For SSN: Social Security card, Loan Application (Form 1003), or Credit Report.
• For TIN: TIN card, W-9 Form, or an official TIN letter from the IRS.

We will review your documents and respond within 2 to 3 business days.

The quickest way to update your mailing address is through your online account.

• Online (Fastest): Log in and go to Account Settings > Contact Information and select Update Mailing Address.

• By Mail: You can mail a written request to the address below. Please note that the request must be signed by all borrowers on the loan.

  PennyMac Loan Services, LLC
  P.O. Box 514387
  Los Angeles, CA
  90051-4387

If you suspect you have received a fraudulent offer, please contact us at 866.545.9070 to verify the request before making any payment.

• Report Suspicious Messages: Forward any suspicious emails or communications claiming to be from Pennymac to infosec@pennymac.com.
• If You Have Been Scammed: File a complaint with the Federal Trade Commission (FTC) immediately.

Unless you provide specific instructions, payments that exceed your monthly amount are applied in the following standard order:

1. Outstanding Payments: Funds are first used to bring your loan current (if past due) and pay the current month.
2. Prepayment: If the remaining funds are sufficient to cover a full monthly payment, they will be applied to the next month’s payment.
3. Fees & Principal: Any remaining funds are then applied in this sequence:
   1. Late charges
   2. Additional fees
   3. Corporate advances
   4. Principal reduction (this is where extra money helps pay down your loan)

How to Designate Your Payment If you want extra funds applied differently (for example, “Principal Only”), you must include a note with your payment instructions.

Important Note for Bill Pay Users: If you use your bank's online Bill Pay service, we do not receive the notes or memos you type. To ensure extra funds are applied to principal, please make your payment through your Pennymac online account or by phone.

Yes, Pennymac offers a Bi-Weekly AutoPay plan. However, enrollment requires that your loan be paid one month in advance prior to starting.

A Simpler Alternative: Monthly AutoPay Most customers prefer our free Monthly AutoPay because it allows you to achieve the exact same financial benefit—paying off your loan faster—without needing to be paid ahead. To get the same result as a bi-weekly schedule, simply:

• Add 1/12th of your payment amount to your recurring monthly draft, OR
• Make one extra full payment per year.

You can set this up instantly through your Pennymac account.

If You Still Prefer Bi-Weekly AutoPay:

• Frequency: Funds are drafted every two weeks (26 times per year).
• 3-Draft Months: In two months of the year, there will be three drafts instead of two.
• Requirement: You must have your loan paid ahead by one full month before the first draft.

To enroll in the official Bi-Weekly plan, please call us at 800.777.4001 to speak with a representative.

Yes, we offer a free Monthly AutoPay service. Monthly AutoPay automatically deducts your mortgage payment from your designated bank account each month. It offers several convenient features:

• Flexible Scheduling: Choose any draft date between the 1st and the 16th of the month.
• Principal Reduction: You can choose to include additional principal with every recurring payment to pay off your loan faster.
• No Fees: The service is completely free of charge.

To Enroll: Log in to your account, navigate to Make a Payment, and select AutoPay.

Unfortunately, no. We are not able to cancel or stop an AutoPay draft that is scheduled for today. By the time the draft date arrives, the transaction has already been securely routed into the banking system for processing and cannot be intercepted.

Modifying Future Payments:

To give the banking system enough time to process your request, any changes to your AutoPay schedule must be submitted at least three business days prior to your next scheduled draft date.

How to update your settings:

You can easily pause, cancel, or change your AutoPay preferences at any time! Simply follow these steps:

• Log in: Access your secure account at PENNYMAC.COM.
• Navigate to payments: Go to your Pending Payments or AutoPay settings section.
• Make your changes: Update your draft date, adjust your payment amount, or cancel the draft entirely (as long as it is 3 business days before the scheduled date).

Payments made through your bank’s online bill pay service are subject to their processing times and delivery methods, which can vary significantly:

• Electronic Payments: Most major financial institutions send funds electronically. These typically post to your account within 1–2 business days.
• Paper Checks: Some banks and credit unions still mail physical checks on your behalf. These can take 5–7 business days (or longer) to reach us through the mail system.

Recommendation: To avoid potential delays and ensure your payment arrives on time every month, we recommend enrolling in our free AutoPay service. You can also make a one-time payment directly through your online account for immediate posting.

No, your payment will not be considered late.

You can schedule a one-time payment for any calendar day, including weekends and holidays. To ensure your payment is credited on time and you avoid any late fees, please keep the following in mind:

• The Deadline: You must submit or schedule your payment by 8:00 PM Pacific Time on or before the final day of your grace period.
• Bank Processing: While your payment will be officially credited to your mortgage on the date you selected, please allow 2 to 3 business days for the funds to actually withdraw from your bank account.

If your scheduled AutoPay draft date falls on a Sunday or a holiday, we will process the transfer on the next business day.

However, your payment will still be credited to your mortgage with the original effective date, meaning it will not be considered late.

• Bank Processing: Please allow 2 to 3 business days for the withdrawal to actually appear on your bank statement.
• Payment Confirmation: Once the payment has fully posted, you can review the transaction details in the Loan Activity section of your Pennymac online account.

Yes, you can absolutely make extra principal payments! Paying down your principal faster is a great way to save money on interest over the life of your loan.

Important Requirement: Your loan must be current before you can make a standalone principal payment. If your regular monthly payment is currently due, the “Principal Reduction” option will be temporarily unavailable until that standard payment is made.

How to Pay Extra Principal Online: Log in to your Pennymac account to choose one of the following options:

• One-Time Payments: When submitting your regular monthly payment, you can easily type an extra amount into the principal box. Alternatively, you can select Principal Reduction under the Payment Type dropdown to schedule a standalone principal-only payment.
• Routine AutoPay: If you want to consistently pay extra every month, you can include an additional principal amount when setting up or editing your free Monthly AutoPay plan.

If your bank account does not have sufficient funds to cover your mortgage payment, here is what you can expect:

• Initial Failure & Fees: The payment will fail due to Non-Sufficient Funds (NSF), and you may incur an NSF fee.
• Automatic Re-attempt: We will automatically attempt to process the transaction a second time. If this second attempt also fails, the payment will not process.
• AutoPay Cancellation: If you are enrolled in AutoPay, please be aware that a second failed attempt may result in the automatic cancellation of your AutoPay service.

Are you experiencing financial hardship?

If you are struggling to make your payments, please reach out to us right away. We are here to help you explore payment assistance options and find a solution.

If your monthly mortgage payment recently increased, there are generally two main reasons why this happens with an Adjustable-Rate Mortgage (ARM).

1. Interest Rate Adjustments

By design, an ARM features an initial fixed-rate period (often 5, 7, or 10 years) followed by an adjustable period. If your initial fixed period has ended, your interest rate—and therefore your principal and interest payment—will now periodically adjust up or down based on current market index rates.

2. Escrow Account Changes (Taxes and Insurance)

Even if your interest rate has not adjusted, your total monthly payment can still go up if you have an escrow account. If your local property taxes or homeowner’s insurance premiums increased over the past year, your monthly escrow collection must increase to cover those higher bills. (Want to dig deeper? Learn more about how escrow accounts work.)

How you will be notified of changes:

We will never surprise you with an interest rate change! You will always receive an official Notice of Adjustment letter well before your new payment amount goes into effect, giving you time to review your new rate and prepare your budget.

To explore exactly how your rate caps and adjustment periods are calculated, please read our complete guide to Understanding Adjustable-Rate Mortgages.

The most common reason for a payment increase is a change to your escrow account. Every year, we perform an Escrow Analysis to ensure we are collecting the correct amount to pay your property bills on your behalf. Your monthly payment will adjust if there are changes to your:

• Property Taxes: Your local tax authority may have reassessed your property value or changed tax rates.
• Homeowners Insurance: Your insurance carrier may have increased your annual premium.
• Escrow Shortage: If your taxes or insurance were higher than expected last year, your new payment may include a temporary amount to make up the difference.

How to See Your Specific Details: You can view a clear, simple breakdown of exactly why your payment changed by visiting the Escrow Analysis Payment Change page within your online account.

Yes, you absolutely can! Making your mortgage payment online through your secure Pennymac account is the fastest, easiest, and most secure way to manage your loan.

Once you log in, you will have access to two primary online payment options:

• AutoPay (Recommended): Set it and forget it! You can schedule a recurring, automatic draft directly from your checking or savings account so you never have to worry about missing a due date.
• One-Time Payment: If you prefer to have manual control, you can log in each month to schedule a single, one-time eCheck payment for the exact date and amount you choose.

Looking for other ways to pay?

While online payments are our most popular option, we also accept payments by phone, by mail, and through third-party wire transfers. To explore the details, timelines, and mailing addresses for all of your available choices, please visit our complete Making Payments guide.

Your mortgage payment is typically due on the 1st of the month, as outlined in your Note. However, we provide a standard 15-day grace period following that due date.

• On Time: As long as your payment is received within this 15-day window, it is considered on time and no penalties are charged.
• Late: If your payment is received after the grace period ends (typically the 16th of the month), it is considered late and a late fee will be applied.

You can find your exact grace period timeframe and potential late fee amount on your monthly billing statement.

Pro Tip: You can schedule a One-Time Payment up to 60 days in advance through your online account to ensure your payment always arrives on time!

At this time, we do not accept mortgage payments made with a credit card or debit card.

However, we do offer several quick, secure ways to make your payment directly from your bank’s checking or savings account:

• Online (Recommended): Log in to your secure account at pennymac.com to make a one-time eCheck payment or set up a recurring AutoPay schedule.
• By Phone: Call our automated phone system at 800.777.4001 to make a payment using your bank routing and account numbers.
• By Mail: You can mail a personal check, cashier’s check, or money order directly to our payment processing center.

To see a complete breakdown of exactly how your payment was applied, you can check your online account or your monthly billing statement.

Online (Recommended): Log in to your Pennymac account and go to Loan Activity > Payments Breakdown. In this section, you will find detailed information for every transaction, including:

• Principal & Interest: Exactly how much went toward paying down your loan balance and the cost of borrowing.
• Escrow: The amount directed to your property taxes and insurance (along with your current Escrow balance).
• Suspense: Any partial funds held in your suspense account (and your current Suspense balance).
• Transaction Details: The general description and total amount of the payment.

On Your Monthly Statement: You can also view a clear payment breakdown on your printed or digital monthly billing statement.

Note: Funds are always applied based on a standard payment hierarchy, as outlined in your original loan Note.

Yes, you can use your personal bank’s bill pay service. However, because every bank’s system is unique, we are unable to provide specific instructions or guidance on how to set it up. You will need to manage the setup directly through your bank’s website or app using your Pennymac loan number and our payment mailing address.

A More Reliable Alternative: Pennymac AutoPay While we cannot troubleshoot your bank’s bill pay system, we do offer a guaranteed, free alternative. We highly recommend enrolling in our Monthly AutoPay program to avoid the payment delays that sometimes occur when external banks mail physical checks.

• Guaranteed Timing: Your payment is withdrawn electronically on the exact date you choose, so you never have to worry about mail delays or late fees.
• Easy Setup & Control: You can easily set up, adjust, or cancel your recurring payment directly from your Pennymac portal.

To set up a reliable, free recurring payment with us, log in to your online account and navigate to Make a Payment > AutoPay.

It depends on the “First Draft Date” you choose during enrollment. When you set up Monthly AutoPay, the system will provide a confirmation screen detailing exactly when your first automatic draft will occur.

• If your first draft is scheduled for THIS month: You do not need to make a manual payment. (For example, if you enroll on the 1st and select the 12th as your recurring draft date, AutoPay will cover this month’s bill).
• If your first draft is scheduled for NEXT month: You must manually pay your current month’s bill to avoid late fees.

Important Prerequisite:

To enroll in AutoPay, your loan must already be current. If you currently have a past-due balance, you will need to make a one-time manual payment to bring the account current before the AutoPay system will allow you to enroll.

It typically takes 2 to 3 business days for the funds to be withdrawn from your bank account and appear on your bank statement.

Will this processing time make my payment late?

No. Even though it takes a few days for the funds to officially transfer, your payment is credited to your mortgage on the exact date you submitted or scheduled it. As long as you initiated the payment on time, you will not be penalized for standard bank processing times.

A mortgage recast (also referred to as a principal recast) is the process of lowering your monthly mortgage payment after you have made a substantial, lump-sum payment toward your principal balance.

How it Works:

• The Action: You make a large, one-time payment directly toward the principal balance of your loan.
• The Result: We re-amortize (recalculate) your new, lower balance over the remaining term of your loan. This results in a permanently lower monthly payment and reduces the total amount of interest you will pay over the life of the loan.
• What Does NOT Change: A recast does not change your existing interest rate or your loan’s payoff date. We simply adjust your required monthly payment based on the large principal reduction you provided.

Yes, there is a $250.00 processing fee. To successfully complete your mortgage (or principal) recast, please keep the following in mind:

• The Fee: A standard $250.00 fee is required to process the recalculation of your loan.
• How to Pay: This fee must be included along with your lump-sum principal payment when you submit your official recast request.

No, mortgage recasts are not available for all loan types. They are exclusively available for Conventional loans.

Unfortunately, we cannot process a recast if you have any of the following loan types:

• Home Equity Lines of Credit (HELOC)
• Closed-End Second (CES) Mortgages
• Interest-Only Mortgages
• Government-backed loans (including FHA, VA, and GNMA loans)

No, there is a minimum payment requirement. To qualify for a mortgage recast, your lump-sum principal payment must be at least $10,000.00.

How to Send Your Payment (Important): For the fastest processing time, we highly recommend sending your $10,000+ payment via wire transfer or certified funds.

• Wire or Certified Funds (Fastest): Your recast can begin processing right away.
• Other Payment Methods (Slower): If you use a standard check or other method, we are required to collect additional documentation (like bank statements) to verify the funds, which will significantly delay your recast process.

A mortgage recast typically takes up to 6 weeks to complete once we have successfully received both your lump-sum principal payment and the $250 processing fee.

Important Payment Requirements During Processing: To avoid delays or cancellation of your recast, please keep the following in mind:

• Stay Current: Your loan must remain completely current throughout the entire 6-week processing period. Do not stop or reduce your regular monthly payments.
• Pending Payments: Your current month’s regular payment must be paid and applied before the recast process can begin. Depending on the date you submit your request, your next month’s payment may also be required at the original amount.

Example: If we receive your lump-sum payment and fee on June 25th, your standard June payment must already be paid. Because the process takes up to 6 weeks, you will also be required to make your regular July payment in full before the new, lower recast payment takes effect.

No, a mortgage recast does not allow you to change your loan terms. A recast simply takes your newly reduced principal balance and recalculates (re-amortizes) it over the remaining life of your existing loan.

• What Changes: You get a lower monthly payment.
• What Stays the Same: Your interest rate and the remaining length (term) of your loan remain exactly the same.

Looking to change your loan terms?

If your goal is to secure a lower interest rate or change the length of your mortgage (for example, switching from a 30-year to a 15-year loan), a refinance is likely the right option for you.

To explore your refinancing options and speak with a Loan Officer:

• Call us: 866.549.3583
• Online: Get started

Use these instructions ONLY if you have already requested a recast and are sending the lump sum specifically to lower your monthly payments and re-amortize your loan.

Wiring Instructions for Recast: Please reference your loan number on the wire.

Bank Name: JPM Chase
Account Name: PennyMac Loan Services, LLC
ABA #: 021000021
Bank Account #: 818073923
Information for Beneficiary (OBI): Attn RCSP [insert Pennymac loan number]

Certified Funds (e.g. cashier’s check and money order) for Recast: Mail your check to the specific Recast department address below.

Use these instructions for standard principal reductions. Note: If you are trying to Recast your loan to lower your monthly payment, do not use this address; refer to the Recast instructions instead.

Wiring Instructions for Principal Reduction: Please reference your loan number on the wire.

Bank Name: JPM Chase
Account Name: PennyMac Loan Services, LLC
ABA #: 021000021
Bank Account #: 818073923
Information for Beneficiary (OBI): Attn Lump Sum Principal Payment [insert Pennymac loan number]

Certified Funds (e.g. cashier’s check and money order) for Principal Reduction: Mail your check to the standard principal reduction address.

If you are experiencing financial hardship and are unable to make your monthly mortgage payments, a forbearance plan may be an option for you.

A forbearance allows you to temporarily pause or reduce your monthly mortgage payments for a specific period. It is designed to help you through short-term challenges, such as a job loss, medical emergency, or natural disaster.

How to Start the Process:

• Online (Fastest): Log in to your Pennymac account to view available assistance options and submit a request.
• By Phone: Call our specialized team at 800.777.4001 to discuss your situation and see if you qualify.

Important Things to Know:

• Not Forgiveness: Forbearance is a temporary pause. The skipped payments will still need to be repaid in the future.
• Communication is Key: Do not ignore letters or phone calls. Reaching out early gives us more time to help you find a long-term solution to keep your home.
• No Impact on Credit: While in an active forbearance plan related to a qualifying hardship, we generally report your account as “current” to credit bureaus if you were current before the plan started.

Yes, your out-of-pocket monthly payment will increase, but this is a planned, gradual adjustment that was built into your original loan agreement.

Here is exactly how your buydown payment schedule works:

1. The initial subsidy: A temporary buydown uses a dedicated reserve fund (paid for at closing) to cover a portion of your monthly principal and interest payments for the first 1 to 3 years of your loan.
2. The annual adjustments: Each year during this temporary period, the amount of the reserve subsidy decreases. As the subsidy shrinks, your out-of-pocket portion of the monthly payment will step up accordingly.
3. The final permanent payment: Once the buydown period ends and the reserve funds are completely used up, you will become responsible for the full mortgage payment.

An important reminder:

When your payment increases to its final amount, it is not a surprise rate hike! Your payment is simply returning to the standard, permanent interest rate that you locked in and qualified for when you first closed on your home.

If you are approaching an adjustment period and would like to know the exact dollar amount of your next payment step-up, please contact us so our team can review your specific buydown schedule with you.

Transitioning to your full mortgage payment after a temporary buydown period ends can be a significant financial adjustment. If your financial situation has changed and you are worried about affording your new payment, you are not alone.

Don’t wait until you miss a payment:

The best time to ask for help is before your account becomes past due. The earlier we know about your financial hardship, the more flexibility we have to assist you and protect your credit.

We are here to help:

There are several hardship and loss mitigation programs designed specifically to help homeowners navigate tough financial transitions. Please contact us right away so our team can review your specific situation and guide you through the payment assistance options that may be available to you.

We want to make sure you are fully prepared for your scheduled buydown payment changes. To keep you informed, we will notify you through multiple channels as your adjustment date approaches:

• Early Reminders: Keep an eye out for communications starting approximately six months before your scheduled payment change. We will send these helpful reminders via email and standard mail.
• Official Confirmation Letter: Once your new payment amount is officially calculated, we will send you a letter detailing your exact updated monthly payment.
• Billing Statements: Your new payment amount will also be clearly reflected on your regular billing statements moving forward.
• Online Access: You can review your confirmation letters and past billing statements at any time. Simply log in to your secure account and navigate to the Statements & Documents section.

We want you to have the best insurance coverage for your home. Even if you have an escrow account with us, you are always free to change insurance carriers at any time.

To ensure a seamless transition, please follow these two important steps:

• Update your new carrier: Make sure your new insurance company knows that your policy is escrowed. You will need to provide them with your Pennymac loan number and our correct mailing address (which you can find on the Contact page of this website).
• Cancel your old policy: When you decide to switch, simply ask your previous carrier to forward an official cancellation notice to us.

Taking these steps ensures we can receive the new bill and continue to pay your monthly premiums promptly and on time from your escrow account.

You can easily view and download your escrow payment change notification letter (also known as your escrow analysis statement) directly from your secure online account. We store all of your account-related correspondence online, whether you are enrolled in paperless billing or receive physical statements in the mail.

How to find your statement:

• Log in: Access your secure account at PENNYMAC.COM.
• Navigate to your documents: Go to the Statements & Documents section of your dashboard.
• Locate the letter: Look for the document labeled “Escrow Analysis” to view, save, or print your official copy.

Tip: Haven't created an account yet?

If you do not have an online account or aren't enrolled in paperless billing, we highly encourage you to register your account today. Creating an account and going paperless is the fastest, most secure way to receive important updates about your escrow balance and monthly payments!

When your home sustains damage, your insurance company will issue a claim check (sometimes called “loss draft funds”) to cover the cost of your repairs.

Because Pennymac is listed on your insurance policy to protect the mortgage, your insurance company will usually make this check payable to both you and Pennymac. This means you will need our endorsement before the funds can be used.

How we process your check depends entirely on the total claim amount and the current status of your loan:

• For claims under $40,000 (and current accounts): We will typically endorse the check and send it directly back to you so you can pay your contractors and complete the repairs right away.
• For claims over $40,000 (or delinquent accounts): We are required to deposit the check into a secure account. As your repairs are completed, we will release the funds to you in partial increments (called “draws”). This process requires you to submit specific repair documents and may involve property inspections to verify the work is being done.

What to do when you receive a check:

Please do not sign the check or write on it until you have contacted us! Every claim is a little different, and our Loss Draft Department will walk you through the exact steps and documents required for your specific situation.

• Online: Visit insuranceclaimcheck.com for detailed information, document uploads, and tracking.
• By Phone: Call our dedicated Loss Draft Department at 866.314.0498.

No, your bank’s bill pay service will not adjust automatically. Because the payment is managed through your personal bank and not Pennymac, you are responsible for updating the amount manually whenever your mortgage payment changes.

Why this is important:

• Full Amount Required: If your payment increases (due to an escrow analysis or other change) and your bill pay sends the old, lower amount, we will be unable to apply it to your monthly installment.
• Risk of Late Fees: Funds that do not cover the full amount due may be held in a “suspense” account until the remaining balance is received, which could result in late fees.

What you should do:

As soon as you receive your Escrow Analysis or payment change notice, log in to your bank’s online portal and update your recurring payment to the new “Total Monthly Payment” amount listed on your statement.

When you set up or change your homeowner’s insurance policy, your insurance carrier will ask for our mortgagee clause. This official block of text tells your insurance company exactly who holds your mortgage and where they should mail your property insurance bills and renewal notices.

Please provide your insurance agent with the following exact phrasing and address:

Don’t worry if that looks like a typo! “ISAOA” is a standard insurance and banking acronym that stands for “Its Successors And/Or Assigns.” It simply means that if your mortgage is ever transferred to another servicer in the future, the insurance coverage automatically extends to them as well.

Once your insurance agent updates your policy with this clause, ask them to send a copy of your new Declaration Page directly to us so we can update your escrow account records. They can easily upload it at mycoverageinfo.com/pennymac.

Yes, if you have an escrow account for taxes, we can pay this bill on your behalf. However, because the county mails these specific bills directly to you and not to Pennymac, you must send us a copy of the bill so we can process the payment.

What is a supplemental tax bill:

Also known as Interim or New Construction taxes, these are one-time bills issued by your local tax collector. They are assessed to make up the difference between the taxes paid by the previous owner and the newly assessed property value after you purchased the home.

How to request payment from your escrow account:

Please write your Pennymac loan number clearly on the bill and include a brief note requesting that we pay it from your escrow account. You can send it to us using any of the following methods:

• Online: Log into your Pennymac account and attach a copy of the bill to a Secure Message.
• Fax: 866.577.7205
• Mail: PennyMac Loan Services, LLC P.O. Box 514387 Los Angeles, CA 90051-4387
• Phone: If you have questions about your bill, call our Customer Service Department at 800.777.4001.

What happens to my escrow account after it’s paid:

While we typically collect funds at closing to help cover this anticipated expense, paying these one-time bills often creates a shortage in your escrow account. Once the tax payment is disbursed, we will reanalyze your account. If a shortage exists, your monthly mortgage payment will be adjusted for the following year to make up the difference.

No. Condominium and Homeowner Association (HOA) fees are not included in your regular monthly mortgage payment, and they cannot be paid from your Pennymac escrow account.

How to pay your HOA fees:

You are responsible for paying these fees directly to your condominium or community association.

What is included in my Pennymac payment?

If you have an escrow account set up with us, your monthly mortgage payment will only include your principal, interest, property taxes, and homeowners insurance. HOA and Condominium dues must always be managed and paid separately.

Getting rid of Private Mortgage Insurance (PMI) is a great milestone! There are two ways PMI can be removed from your loan: it will either fall off automatically over time, or you can formally request to have it canceled early.

1. Automatic Termination

You don’t need to do anything for this to happen. By law, Pennymac will automatically terminate your PMI on the date your principal balance is scheduled to reach 78% of your home’s original value (as long as your payments are current).

2. Requesting Early Cancellation

If you don’t want to wait for automatic termination, you can request early cancellation if you meet certain requirements. You can base this request on either:

• Your home’s original value: You can request cancellation once your loan balance drops to 80% of what the home was worth when you bought it.
• Your home’s current value: If your property value has increased (due to market conditions or major home improvements), you may be able to cancel PMI earlier. Note: Different loan investors have varying equity requirements for this route.

General requirements for early cancellation:

Regardless of which path you choose, you will generally need to meet the following criteria:

• A good payment history: No late payments within a specific timeframe.
• No “junior liens”: This means you don’t have a second mortgage, home equity loan, or HELOC attached to the property.
• Property valuation: You may be required to pay for a new appraisal or a Broker Price Opinion (BPO) to verify your home’s current value.

How to start your cancellation request:

Because exact requirements depend on your specific loan details and investor, the fastest way to find your path to PMI removal is to contact us:

• Online: Log into your Pennymac account and initiate a deletion request via our Secure Message Center.
• By Phone: Call us at 800.777.4001 to speak directly with a representative about your specific loan.

Unlike conventional PMI, the rules for removing an FHA Mortgage Insurance Premium (MIP) are strictly set by the Federal Housing Administration (FHA). Because of these federal guidelines, you cannot submit a manual request to cancel your MIP, nor can you pay down your loan early to drop it. Instead, your MIP can only be removed in one of two ways:

1. Automatic Cancellation: If your loan meets the FHA’s specific eligibility requirements (listed below), your MIP will automatically drop off your account once you reach the required milestone.
2. Refinancing: If your FHA loan requires MIP for the life of the loan, your only option to remove it is to refinance your mortgage into a Conventional loan once you have built up enough home equity (typically 20%).

When will my MIP automatically cancel?

If you are waiting for automatic cancellation, your eligibility depends entirely on when your loan was closed.

Loans closed on or after June 3, 2013 For most modern FHA loans, the timeline depends on the size of your original down payment:

• Down payment of less than 10%: MIP will remain on your loan for its entire life and cannot be canceled. (Refinancing is your only option to remove it).
• Down payment of 10% or more: MIP will be automatically canceled after your loan has aged exactly 11 years.

Loans closed between January 1, 2001, and June 2, 2013 Your MIP will be automatically canceled once you meet all three of the following conditions:

• Your scheduled loan balance reaches 78% of your home’s original appraised value.
• You have paid your MIP for at least 5 years (60 months).
• You have a clean payment history (no 30-day late payments in the past 12 months).

Loans closed between July 1991 and December 2000 For older FHA loans in this timeframe, MIP cannot be canceled and must remain on the loan for its entire life.

If you’d like to explore refinancing to remove your MIP, contact one of our Loan Experts at 866.549.3583.

Qualifying for a homestead exemption is a great way to save on your property taxes. To ensure your estimated property tax payments reflect these savings, we simply need a few details from your county’s official approval letter.

How to update your account:

Save yourself a step—you do not need to upload, fax, or mail the physical letter to us! Simply follow these steps:

• Log in: Access your account at PENNYMAC.COM and navigate to the Secure Message Center.
• Send a message: Send us a quick note confirming that you have received your official approval letter from the county.
• Provide the amounts: Include the exact approved exemption amounts exactly as they appear in the letter. (Please note: be sure to give us the exemption amount, not the total assessed property value.)

Once we receive your message, we will use this information to update your tax estimates.

Important notice about future tax bills:

Keep in mind that county tax offices can sometimes be slow to update their actual billing systems. If we receive an official tax bill from your assessor that does not yet reflect your new exemption, we are still legally obligated to pay the full amount billed. If this happens, it could create a shortage in your escrow account and temporarily increase your future monthly mortgage payments until the county corrects the bill.

Standard Property Tax Bills:

Most of the time, no. If you have an escrow account, your local tax authority will automatically send us your standard property tax bill, and we will pay it directly from your escrow funds. You do not need to take any action; simply keep the copy you received for your personal records.

Supplemental or Delinquent Tax Notices:

However, if you receive a supplemental tax bill (which often happens after a home purchase or recent renovations) or a delinquent notice, we need to see it right away. Counties do not always send these special notices to mortgage lenders.

How to send us your special tax notice:

Please provide a copy of the bill so we can quickly issue the payment on your behalf:

• Log in: Access your secure Pennymac account and navigate to the Secure Message Center.
• Prepare your document: Create or locate a clear digital copy of your document (a PDF format is highly preferred).
• Send a message: Compose a quick message, attach your document, and hit send!

Once we receive your documentation, we will issue the payment and update your escrow account accordingly.

If your loan was recently paid off, any remaining funds in your escrow account will be promptly refunded to you.

When to expect your refund check:

• Pennymac’s Standard: We typically process and mail your escrow refund within 13 calendar days following the date your loan is officially paid off.
• The Legal Maximum: By law, the Real Estate Settlement Procedures Act (RESPA) requires us to process this refund no later than 20 business days after receiving your payoff.

Important note to update your mailing address:

Because your loan is paid off, this refund is usually sent as a physical check. If you are moving, please be sure to provide your new forwarding address at the time of your loan payoff so your check does not get sent to your old home.

Most of the time, you don’t need to send your regular insurance bill to us at all! How your bill is handled depends on whether or not you have an escrow account.

Tip: Not sure if you have an escrow account? Log in to your secure account and visit the Escrow Center to check.

If your insurance is paid through Escrow

As long as Pennymac is listed as the “mortgagee” on your insurance policy, your insurance company will automatically send the bill to us, and we will pay it from your escrow funds.

What if I received a delinquent notice?

If your insurance company sends you a notice saying your bill is past due, we need to know right away! Please have your loan and policy information ready and contact our Insurance Department so we can quickly issue the payment:

• Online: Visit mycoverageinfo.com/pennymac to upload your notice
• Email: Send a copy to pennymac@mycoverageinfo.com
• Phone: Call us directly at 866.318.0208

If your insurance is NOT paid through Escrow

You are responsible for paying your premium directly to your insurance agent or carrier. Please do not send these bills to Pennymac.

Important Warning About Lapsed Policies:

If you fail to pay your premiums and your policy is canceled, Pennymac will be required to purchase a policy to protect the property. This is called “force-placed” or “lender-placed” insurance.

• It will increase your monthly mortgage payment.
• It is typically much more expensive than a policy you would purchase yourself.
• It may not provide the same level of coverage for your personal belongings.

If you need to provide us with proof of your current homeowners insurance, you can easily send it to us using any of the four methods below:

• Online (Fastest): Upload your document directly at mycoverageinfo.com/pennymac
• Fax: 866.235.1215
• Mail: PO Box 6618, Springfield, OH 45501-6618
• Phone: Call our Insurance Department at 866.318.0208

What exactly do I need to send?

We need a copy of your Insurance Policy Declarations Page. This is typically the very first page of your insurance policy (or binder). It acts as a summary of your policy and shows us your coverage amounts, deductibles, and the dates your policy is active. (Note: We will also accept an official notice from your carrier showing that an acceptable canceled policy has been reinstated.)

What happens after I send it?

Once we receive your proof of coverage, please allow 3 to 5 business days for us to process the document. Once processing is complete, you can log into your online account and check the Escrow section to confirm your new insurance details are up to date.

To set up an escrow account, please submit a request through the Message Center after logging in to your secure Pennymac account. Our team will review your request and respond within 2–3 business days.

Requirements for setup:

Before we can establish the account, we require that all current property tax and insurance premiums be paid and completely up to date.

Important note on timing:

If any tax or insurance bill is due within the next 30 days, you must pay that bill directly to your tax authority or insurance carrier first. Once that payment is confirmed and cleared, we can then set up your escrow account to handle your future bills.

What happens next?

Once your account is officially set up, your monthly mortgage payment will increase. This increase reflects the funds needed to build your escrow balance so we can pay your future tax and insurance bills on your behalf.

Lender-placed insurance (also known as “force-placed” insurance) is a policy Pennymac is required to purchase for your property if your own homeowners, flood, or hazard insurance coverage lapses or is canceled.

Because continuous insurance is a requirement of your mortgage, we must put this coverage in place to protect the property until you provide proof of a new personal policy.

Important facts about lender-placed insurance:

• Higher Cost: These policies are typically significantly more expensive than insurance you would purchase on your own.
• Limited Coverage: This coverage is designed to protect the physical structure of the home. It generally does not cover your personal belongings, nor does it provide personal liability protection for you.
• Payment Impact: The cost of this premium will be added to your monthly mortgage payment, which could lead to an escrow shortage.

How to remove lender-placed insurance:

If you have already secured a new policy, please send us your Declarations Page immediately. Once we verify your new coverage, we will:

1. Cancel the lender-placed policy.
2. Refund any “overlapping” premiums for periods where you were double-covered or had your own policy active.

Where to send proof of insurance:

• Online: mycoverageinfo.com/pennymac
• Email: pennymac@mycoverageinfo.com

If your homeowners insurance is canceled, you must take action immediately to ensure your home remains protected and you stay in compliance with your loan agreement.

Please follow these three steps:

1. Secure a New Policy: Contact your insurance agent or a new carrier right away to purchase a replacement policy.

2. Provide the “Mortgagee Clause”: Ensure your agent lists Pennymac as the mortgagee on your new policy using this exact wording:

3. Send Us Proof of Coverage: Once you have your new Declarations Page, send it to us immediately via mycoverageinfo.com/pennymac or email it to pennymac@mycoverageinfo.com.

Why speed matters:

If we do not receive proof of a new policy, we are required by your loan terms to purchase “lender-placed” insurance for the property. This coverage is generally much more expensive than a policy you can purchase yourself and provides less protection for your personal belongings.

To avoid or cancel lender-placed insurance, you must provide Pennymac with proof of your own continuous coverage (your Insurance Declarations Page).

Once we receive and verify your proof of insurance, we will cancel the lender-placed policy. If you were charged for overlapping coverage during a period where you already had your own policy, those premiums will be refunded to your escrow account.

How to provide proof of coverage:

• Upload (Fastest): Visit mycoverageinfo.com/pennymac
  • Enter your loan number, property zip code, and the last 4 digits of your SSN.
  • Follow the prompts to upload your Declarations Page.
• Fax: 866.235.1215
• Mail: PO Box 6618, Springfield, OH 45501-6618
• Phone: Call our Insurance Department at 866.318.0208

Processing Time:

We will update your account within 3–5 business days of receiving your documents. Once complete, your new insurance details will be reflected in the Escrow section of your online account.

FAIR plans, also known as Fair Access to Insurance Requirements plans, are government-mandated property insurance plans. They provide coverage to individuals and businesses who are unable to obtain insurance in the regular market.

Here is a quick breakdown of how these plans work:

• What they cover: These plans typically provide basic coverage for properties that are considered high-risk or difficult to insure due to factors such as location, age, or type of construction.
• When to apply: If you are turned down or non-renewed by your current insurance company, or are otherwise in need of coverage, you may apply for coverage under the FAIR Plan.
• How to apply: You can apply through an agent or broker licensed to sell FAIR property insurance.
• Understanding your policy: You may want to contact your insurance agent or company to understand exactly what is and is not covered under the FAIR plan.

Want to learn more?

For more information related to state-specific FAIR insurance, you may visit: www.iii.org/article/what-if-i-cant-get-coverage.

A FAIR (Fair Access to Insurance Requirements) Plan is a state-mandated program that provides insurance to homeowners who cannot get coverage in the traditional market (often due to high wildfire or hurricane risk). While it is a vital safety net, it is considered a “last resort” for several reasons:

• Higher Premiums: Because FAIR Plans cover high-risk properties, the cost is typically much higher than a standard homeowner’s policy.
• Limited Protection: Most FAIR Plans only cover “named perils” like fire, lightning, and wind. They often exclude theft, water damage, and personal liability.
• The Coverage Gap: A FAIR Plan protects the structure of your home (the lender’s interest), but it may leave you personally vulnerable to lawsuits or loss of personal property.

Our Recommendation:

We strongly advise trying to maintain your own homeowner’s policy to protect your interests adequately. If you must use a FAIR Plan though, we strongly suggest speaking with your agent about a “Difference in Conditions” (DIC) policy. This supplemental insurance “fills the gaps” by adding back coverage for theft, liability, and other risks not included in the basic FAIR Plan.

Both PMI (Private Mortgage Insurance) and MIP (Mortgage Insurance Premium) are types of mortgage insurance. They serve the exact same purpose: protecting the lender in case you fall behind on your mortgage payments.

The primary difference is the type of loan they are attached to:

PMI (Private Mortgage Insurance)

• Loan Type: Conventional Loans.
• When is it required? When your down payment is less than 20%.
• How is it paid? Typically paid as a single ongoing monthly fee added to your mortgage payment.
• How long does it last? It automatically cancels when you reach 22% equity in your home (or you can formally request cancellation when you reach 20% equity).

MIP (Mortgage Insurance Premium)

• Loan Type: FHA Loans (Government-backed).
• When is it required? On almost all FHA loans, regardless of your down payment size.
• How is it paid? It is paid in two parts: an Upfront Mortgage Insurance Premium (UFMIP) plus an ongoing monthly fee.
• How long does it last? It typically lasts for the life of the loan. The only exception is if you made a down payment of 10% or more, in which case it lasts for 11 years.

A closer look at FHA MIP Payments:

If you have an FHA loan, the Upfront Mortgage Insurance Premium (UFMIP) is a one-time fee paid at closing, though it can often be rolled into your total loan amount. The monthly MIP is the ongoing fee that gets included in your regular monthly mortgage payment.

Every year, Pennymac issues a Year-End Statement (officially known as IRS Form 1098) for your income tax reporting.

This primary statement shows the total amount of mortgage interest you paid throughout the year, as well as the total property taxes paid from your escrow account (if you have one).

When and how will I receive my statement?

• Quick Online Totals (Jan 1st): You don’t have to wait for the official form to see your totals! After January 1st, simply log into your Pennymac account and visit the “Loan Information” page to view your interest and taxes paid for the previous year.
• Official Statements (By Jan 31st): Official statements are generated and made available by January 31st. If you are registered for online access, you can view, print, and download your statement directly from your account, and we will email you as soon as it is ready. Otherwise, a physical copy will be mailed to you by January 31st.

Other tax forms you might receive:

Depending on your specific account activity during the year, you may also receive one or more of the following forms:

• Form 1099-INT: Used to report earned interest (if you earned more than $10.00 on an escrow balance).
• Form 1099-A: Used to report a property loss, such as a completed foreclosure or a deed in lieu.
• Form 1099-C: Used for properties sold in a short sale, or for loans where any portion of the debt was forgiven (such as principal reduction modifications).

What if my loan was transferred this year?

If your loan was transferred to or from Pennymac during the calendar year, you will receive two separate Year-End Statements: one from Pennymac, and one from the other servicer. Each statement will only reflect the exact period of time that specific company serviced your loan.

Because your local property taxes and homeowners insurance premiums can fluctuate from year to year, it is very common for your escrow account to have either a shortage or a surplus when we perform your annual escrow analysis.

Here is what happens in either scenario:

If You Have an Escrow Shortage

A shortage happens if your property taxes or insurance premiums went up during the year, meaning we had to pay out more than we collected from your monthly payments. To make up the difference, you have two options:

• Option 1: Spread it out (Default). You do not have to pay the shortage all at once. We will automatically divide the shortage by 12 and add it to your new monthly mortgage payment for the upcoming year.
• Option 2: Pay it in full. If you prefer to keep your monthly payment as low as possible, you can make a one-time, lump-sum payment to cover the shortage before your new payment cycle begins.

If You Have an Escrow Surplus (Overage)

A surplus happens if your taxes or insurance premiums went down, or if they were overestimated, meaning we collected more money than we needed to pay your bills.

• For surpluses over $50: We will automatically mail you a refund check for the overage amount within 30 days of your escrow analysis.
• For surpluses under $50: We will simply leave the funds in your escrow account, which will slightly lower your required monthly payments for the upcoming year.

Whether you can waive your escrow account depends on your specific loan type and how much equity you have in your home.

Eligibility by Loan Type

• FHA Loans: FHA guidelines require an escrow account for the life of the loan. These accounts cannot be waived.
• VA Loans: While the VA doesn’t strictly mandate escrow, most lenders require them to protect the property.
• Conventional Loans: You can typically request to waive your escrow if you meet the following criteria:
  • Your loan balance is 80% or less of the original property value (20% equity).
  • Your loan has been active for at least 12 months.
  • Your payments are current with no recent late entries.

Responsibilities of Waiving Escrow

If you choose to pay your taxes and insurance directly, please keep the following in mind:

• Budgeting: You are responsible for saving for these large, annual expenses.
• Late Fees: Failure to pay property taxes can result in significant county penalties or even tax foreclosure.
• Insurance Coverage: If your insurance policy lapses, Pennymac may be required to purchase “force-placed” insurance at your expense to protect the property.

How to Request a Waiver:

If you meet the requirements for a conventional loan, please send a request through the Message Center from your Pennymac account. Our team will review your account and let you know if a waiver is available.

Your year-end IRS Tax Forms (such as your Form 1098) will be generated and sent to you on or before January 31st.

How you receive these forms depends on your current delivery preferences:

• If you receive your monthly statements by mail: Keep an eye out for your tax documents. They will be included in the exact same envelope as your January billing statement.
• If you receive electronic monthly statements, but paper tax forms: Your IRS tax forms will be mailed to your physical address separately from your monthly billing email.
• If you are fully enrolled in electronic delivery: You can view, download, and print both your monthly statements and your IRS tax forms by logging into your secure account at pennymac.com.

Want your forms faster next year?

Opting into Penny Paperless is the fastest, easiest, and most secure way to manage your important mortgage documents online. To enroll, simply log in to your account, go to Account Settings > Paperless Preferences, and select Online Only for your Monthly and/or Year-End Statements.

If it is past mid-February and you still have not received your year-end documents, please contact us so our team can help you track them down.

If your statement doesn’t open when you click or tap the PDF icon, it is usually due to one of the following reasons:

• Pop-up Blocker: Most browsers (Chrome, Safari, Edge) block new windows by default. Look for an icon in your browser’s address bar (usually a small red ‘x’ or a window icon) and select “Always allow pop-ups from PENNYMAC.COM.”
• PDF Reader Issues: Ensure you have a PDF viewer installed, such as Adobe Acrobat Reader. If you are on a mobile device, the file may have automatically downloaded to your “Files” or “Downloads” folder rather than opening in a new tab.
• Browser Cache: Sometimes old data prevents the page from loading correctly. Try clearing your browser’s cache or opening the site in an Incognito/Private window.

Still having trouble?

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If you receive a corrected Form 1098 after filing your tax return, you should consult with a tax professional immediately. They will need to review the updated figures to determine if the changes are significant enough to affect your tax liability or your refund amount. If the changes are material, your tax preparer may recommend filing an Amended Tax Return (IRS Form 1040-X).

Why did I receive a corrected form?

Corrected 1098s are typically issued if there was a change in the reported mortgage interest paid, points, or overpaid interest (refunds) that occurred late in the year or during a year-end audit.

If you are preparing your taxes and realized you haven’t received a Form 1098 (Mortgage Interest Statement) from us, there are a few common reasons why this might happen:

• Your interest was under the IRS threshold: Lenders are only required by the IRS to generate and mail a Form 1098 if you paid $600 or more in mortgage interest (including points) during the tax year. If your total interest paid was less than $600, a form will not be created.
• You are enrolled in paperless statements: If you previously opted into electronic delivery, your form was not mailed to your physical address. You can easily view, download, and print your Form 1098 by logging into your secure online account.
• Your mailing address is outdated: If you recently moved or changed your primary address and are not enrolled in paperless delivery, your form may have been mailed to your previous residence.

What if my interest was under $600, but I still need the total?

Even if you didn’t reach the $600 threshold to receive an official Form 1098, you can still find the exact amount of interest you paid for the year listed on your final December/Year-End mortgage statement. We recommend consulting a certified tax professional to determine if and how you should report this on your tax return.

If you believe you should have received a form, or if you need help accessing your tax documents online, please contact us so our team can assist you.

If you receive physical mail, your Form 1098 was likely included in the same envelope as your January monthly statement (often as the last page). However, the fastest way to get a replacement is to download a copy directly from your online account.

How to find your Form 1098 online:

1. Log in to your PENNYMAC.COM account (or register if you haven’t already).
2. Navigate to the Statements & Documents section.
3. Select the Statements tab. Here, you can easily view, download, or print all of your current, past, and corrected year-end tax forms.

Important note for corporate or trust accounts:

If your mortgage is held under a corporation, partnership, trust, or estate (other than a sole proprietorship), the IRS does not require a Form 1098, and one will not be issued. We recommend consulting a tax advisor if you have questions about how to file for your specific entity.

To accommodate different loan types and payment statuses, we generate billing statements at three different times during the month. You will receive an email or text notification as soon as your statement is ready to view.

Depending on your account, your statement will typically be generated on one of the following dates (or the next business day if it falls on a weekend or holiday):

• The 5th of the month: Usually for accounts that are current or paid ahead, as well as loans with non-standard due dates.
• The 10th of the month: Generally for accounts that recently became current, as well as statements provided in Spanish.
• The 17th of the month: The final processing date to ensure all remaining accounts have a statement generated, including additional Spanish statements.

How to access your statement:

Once your statement is generated, you can easily view, print, or download it by logging in to your Pennymac account and navigating to the Statements & Documents tab.

Receiving a revised tax document can be confusing, but it is actually a fairly common part of tax season! We issue a Corrected Form 1098 if we identify that any of the mortgage interest, mortgage insurance premiums, or property taxes reported on your original form need to be updated to ensure your records are perfectly accurate.

Common reasons for a correction include:

• A recent adjustment or recalculation on your escrow account.
• A delayed property tax payment or a tax refund issued by your local municipality.
• A recent update to your payment history or loan balance.

What should I do with this form?

When preparing your tax return, be sure to use the updated information on the Corrected Form 1098. If you have already filed your taxes using the original form, we highly recommend consulting a certified tax professional or CPA to find out if you need to file an amended return with the IRS.

If you would like to know the specific reason your form was updated, please contact us so our team can review your account details with you.

Receiving a Form 1099-INT (Interest Income) means you earned interest over the course of the year that must be reported on your tax return.

For Pennymac customers, the most common reason you receive this form is that your escrow account earned interest. Here is how it works:

• State Laws: Depending on the state where your property is located, we may be required to pay you interest on the funds held in your escrow account (the money set aside to pay your taxes and insurance).
• The IRS Threshold: If your escrow account generated $10.00 or more in interest during the previous tax year, the IRS requires us to report that income and send you a Form 1099-INT.

Please note: If you live in a state that does not require interest to be paid on escrow balances, or if your account earned less than $10.00, you will not receive this form.

Tax season can be confusing, especially if your mortgage went through a major change last year. The IRS requires lenders to issue a Form 1099 if a property changes hands in specific ways, or if any portion of a mortgage debt is forgiven.

Depending on your situation, you may receive one of two forms:

• Form 1099-A (Acquisition or Abandonment of Secured Property): You will typically receive this form if your property went through a completed foreclosure or a deed in lieu of foreclosure.
• Form 1099-C (Cancellation of Debt): You will receive this form if any portion of your mortgage debt was officially forgiven or cancelled. This is most common after a short sale, or if you participated in a loan modification program that included a principal reduction.

What should I do with this form?

Because the IRS sometimes considers forgiven debt to be taxable income, we highly recommend sharing this form with a certified tax professional or CPA. They can help you understand exactly how this impacts your specific tax return.

If you have questions about how the amounts on your form were calculated, please contact us so we can review your account details with you.

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Navigating a home loan during a major life change like a divorce can feel overwhelming, but we are here to help guide you through it.

Important Note:

It is very common to assume that a divorce decree or a Quitclaim Deed automatically removes a former spouse from the mortgage. However, legal ownership and financial responsibility are separate. Until the loan is officially altered or paid off, both parties remain equally responsible for the payments.

To remove one party from the mortgage, you generally have three options:

• Refinance the loan: The person keeping the home applies for a new loan solely in their name to pay off the existing joint mortgage. (This requires qualifying for the new loan based on a single income).
• Loan Assumption: One person takes over the existing loan and its current terms. Please note: This option is dependent on your specific loan type (such as FHA or VA) and investor guidelines.
• Sell the home: Both parties agree to sell the property, using the proceeds to pay off the remaining mortgage balance.

Let’s look at your specific situation:

Every scenario is unique. Please contact us so we can review your specific loan type and help you evaluate which choice is right for you.

If you’ve been awarded the home in a divorce but aren’t on the current mortgage, you have a clear path to take full control of the property and the loan.

Step 1: Become a “Successor in Interest” First, you will need to contact the lender to be confirmed as a Successor in Interest. This officially recognizes you as the property owner following a qualifying transfer, such as a divorce.

• What it does: It grants you legal access to the loan’s information, allows you to make monthly payments, and lets you discuss account details with the servicer.
• What you need: You will typically need to provide legal documentation to the lender, such as your final divorce decree and a recorded quitclaim deed.
• What it doesn’t do: Being a Successor in Interest does not automatically remove your ex-spouse’s name from the loan, nor does it make you personally liable for the mortgage debt.

Step 2: Take Over the Mortgage Once your Successor in Interest status is confirmed, you can explore options to put the mortgage entirely in your name and release your ex-spouse from liability:

• Loan Assumption: You can apply to assume the existing mortgage. If approved (which requires standard credit and income qualification), you take over the loan’s current rate and terms.
• Refinance: If the current loan is not assumable, or if you need to adjust the terms or access home equity, you can apply to refinance the home with a brand-new loan in your name only.

To become a confirmed Successor in Interest, you will need to notify us of the property transfer and provide legal documentation proving your new ownership interest in the home.

The exact documents you need will depend on your specific situation, but generally include:

• Proof of Identity: A copy of your valid, government-issued photo ID and your current contact information.
• Proof of the Property Transfer: A copy of the recorded deed transferring the property into your name.
• Proof of the Qualifying Event:
  • In the event of a divorce: A copy of the final divorce decree or marital settlement agreement.
  • In the event of a death: A copy of the borrower’s death certificate and relevant probate documents (such as Letters Testamentary) or trust documents.

What happens next?

Once we receive your documents, our team will review them to confirm your status. Please contact our Customer Service team at 800.777.4001 to begin the process and find out exactly which documents are required for your unique situation.

Yes, it is absolutely possible. We know that navigating mortgage details after a divorce can feel overwhelming, but we are here to help make this transition as smooth as possible for you.

Because your original mortgage was based on both of your financial profiles, we aren’t able to simply remove a name from the existing paperwork. However, you have two great options to transition the loan entirely into your name so you can move forward:

Option 1: Loan Assumption

• How it helps: This allows you to take over the current mortgage and keep the existing interest rate and terms.
• What to expect: We will work with you to verify that your individual credit and income can support the monthly payments. (Note: While FHA and VA loans are typically assumable, some loan types like Conventional loans may not be eligible.)

Option 2: Refinance

• How it helps: This replaces your current joint mortgage with a brand-new loan in your name only.
• What to expect: This requires standard credit and income qualification, and your new rate will be based on today’s market. This is often the perfect solution if your current loan isn’t eligible for assumption, or if you need to use a “cash-out” refinance to buy out your former spouse’s share of the home.

You don’t have to figure this out alone. Our Loan Experts help homeowners through these exact situations every day. Please reach out to us at 866.549.3583 so we can look at your specific loan together and find the path that works best for you.

A quick tip on ownership: Updating your mortgage doesn't automatically update the property's title. You will likely also need to file a document (like a Quitclaim Deed) to ensure the home is officially in your name only.

Please accept our deepest condolences for your loss. We are here to help you navigate this transition as smoothly as possible.

To help us update the account, please provide a copy of the death certificate at your earliest convenience. You can submit this document via the Message Center in your online account or by mail.

What happens next depends on your situation:

• If there is a co-borrower on the mortgage: The co-borrower will continue to be responsible for the loan and may continue to manage the account and make payments as usual.
• If you have inherited interest in the property: You may be eligible to become a Successor in Interest. This status allows you to manage the account and make payments.
• If you wish to take full ownership: If you later decide you would like to take full financial ownership of the loan, you can apply for an assumption. This typically involves a formal review of your credit and income to ensure eligibility.

A “Successor in Interest” is someone who has received an ownership interest in a property—usually through inheritance, a divorce decree, or a living trust—but is not an original borrower on the mortgage.

Once Pennymac confirms your status through legal documentation, becoming a recognized Successor in Interest offers several benefits:

• Account Access: You gain the authority to request detailed loan information, make payments, and (if no original borrowers remain) receive billing statements and legal notices.
• Credit Protection: You are not personally liable for the debt, meaning the mortgage will not appear on your personal credit report. (Please note: The monthly mortgage payments must still be made to prevent foreclosure on the property).
• Future Options: If you eventually want to take over the mortgage entirely, you have the right to apply for a loan assumption to become the primary, financially responsible borrower.

How to confirm your status:

Because this involves legal ownership, you will need to provide specific documentation (such as a death certificate, divorce decree, or quitclaim deed) for our team to officially update the account.

Becoming a recognized Successor in Interest requires providing specific legal documents so we can securely update the account. We are here to guide you through this process every step of the way.

Because property transfers happen for different reasons (such as inheritance, a divorce, or a living trust), the exact paperwork will vary. Generally, you will need to provide:

• Proof of the event: A copy of the death certificate, final divorce decree, or trust agreement
• Proof of transfer: The recorded deed or probate court documents showing the property was legally transferred to you
• Identity verification: A copy of your valid photo ID
• Contact details: Your current phone number and mailing address
• Proof of relationship: (If the transfer is due to the passing of a family member)

Every situation is unique, so our team will review your initial documents and let you know if any extra details are needed to complete the process.

Thinking about taking over the loan?

Once you are confirmed as a Successor in Interest, you may have the option to officially assume the mortgage and become the primary borrower. Please contact us so our team can guide you through the financial requirements for this next step.

• Six (6) months of consecutive bank statements showing payments made to the loan only by the awarded party.
  • If the bank statements cannot be provided, the awarded party will be required to go through a full credit qualification review or wait until six (6) consecutive timely payments are made.
• If the awarded party is not on the loan, the following documents are required:
  • Driver’s License
  • Social Security Card
• Final Divorce Decree
• Recorded Quitclaim Deed
• Homeowners insurance policy that lists only the awarded party as the insured.

Download Assumption Scenario for an FHA Exempt Transfer due to Divorce (PDF)

• Six (6) months of consecutive bank statements showing payments made to the loan only by the assuming party.
  • If the bank statements cannot be provided, the assuming party will be required to go through a full credit qualification review or wait until six (6) consecutive timely payments are made.
• If the assuming party is not on the loan, the following documents are required:
  • Driver’s License
  • Social Security Card
• Death Certificate
• Will/Probate documents
• Recorded Quitclaim Deed
• Homeowners insurance policy that lists only the assuming party as the insured.

Download Assumption Scenario for an FHA Exempt Transfer due to Death (PDF)

• Purchase Agreement signed by buyer(s) and seller(s)
• Seller's written consent from the seller(s) signed and dated with buyer(s) contact information including email address, realtor(s) information for both buyer(s) and seller(s) if applicable, Pennymac loan number, and property address.

Download Assumption Scenario for an FHA Third Party Purchase (PDF)

If the non-veteran wishes to be released from liability, the Veteran must provide the below documents to go through an Exempt Transfer:

• Final Divorce Decree
• Recorded Quitclaim Deed
• Homeowner's insurance policy that lists only the awarded party as the insured.

However, if the Veteran is requesting to be released from liability, the non-veteran will be required to go through a qualified assumption process. This process involves submitting a loan application and undergoing a full credit underwriting review, which includes an analysis of income, credit, and assets. Additionally, the VA entitlement will remain with the property unless the assuming borrower is able to substitute the VA entitlement.

Download Assumption Scenario for a VA Exempt Transfer due to Divorce (PDF)

• If the assuming party is not on the loan, the following documents are required:
  • Driver's License
  • Social Security Card
• Death Certificate
• Will/Probate document
• Recorded Quitclaim Deed
• Homeowners insurance policy that lists only the assuming party as the insured.

Download Assumption Scenario for a VA Exempt Transfer due to Death (PDF)

• If the assuming party is not on the loan, the following documents are required:
  • Driver's License
  • Social Security Card
• Recorded Quitclaim Deed
• Homeowners insurance policy that lists only the assuming party as the insured.
• Letter signed and dated by both parties stating they are giving permission to be added to the loan as a financially responsible party.

Download Assumption Scenario for a VA Exempt Transfer for a Non-Borrower (PDF)

• Purchase Agreement signed by buyer(s) and seller(s)
• Seller's written consent from the seller(s) signed and dated with buyer(s) contact information including email address, realtor(s) information for both buyer(s) and seller(s) if applicable, Pennymac loan number, and property address.

Download Assumption Scenario for a VA Third Party Purchase (PDF)

• If the assuming party is not on the loan, the following documents are required:
  • Driver's License
  • Social Security Card
• Death Certificate
• Will/Probate Document
• Recorded Quitclaim Deed
• Homeowners insurance policy that lists only the assuming party as the insured.

Download Assumption Scenario for a USDA Exempt Transfer due to Death (PDF)

• If the assuming party is not on the loan, the following documents are required:
  • Driver's License
  • Social Security Card
• Death Certificate
• Will/Probate document
• Recorded Quitclaim Deed
• Homeowners insurance policy that lists only the assuming party as the insured.

Download Assumption Scenario for a Fannie Mae Exempt Transfer due to Death (PDF)

To proceed with your request for a Qualifying Assumption of the liability on the above loan, the awarded party will be required to complete a loan application and undergo full credit underwriting, including an analysis of their income, credit, and assets, and provide a final divorce decree or settlement agreement signed by all parties showing who has been awarded the property.

Download Assumption Scenario for a Conventional Qualified Assumption due to Divorce (PDF)