Your assets become part of the bankruptcy estate regardless of whether the loan is current or delinquent. We encourage you to consult with a bankruptcy specialist for advice about how your bankruptcy filing impacts your mortgage loan.

Yes. Staying current on your payments is the best way to protect your credit. If you enter into a modification, your credit may be negatively affected. Your loan will be reported as paying under a partial payment plan during the trial period, and as modified after the final modification agreement is signed, notarized, and returned. In addition, if you're behind on your payments when you start your trial, your loan will continue to be reported as "delinquent" until your loan has been permanently modified, even if you're making your trial payments. Credit scores are determined by a customer's credit history and are not controlled directly by Pennymac. Our commitment is to accurately report the status of all our customers.

If you’ve been impacted by a natural disaster or property damage caused by an accident, Learn more...

When you receive a discharge in bankruptcy, you are no longer personally liable for the debt. Your account will be reported to the credit bureaus with a $0.00 balance. However, if you do not make your loan payments, your property may be the subject of foreclosure proceedings.

A modification may be an option if: You are ineligible to refinance, you are facing a long-term hardship, your monthly mortgage payments are no longer affordable, you are behind on your mortgage payments or likely to fall behind soon, and/or you have the willingness and ability to make reasonable monthly mortgage payments.

Yes, lenders perform an escrow analysis to determine the exact escrow payments prior to the establishment of the trial period payment, taking into consideration the tax and insurance payments that may come due during the trial period.

A forbearance plan may still be an option for you even if you are currently in foreclosure. Typically, a loan is referred to foreclosure at or around the 120th day of delinquency unless the loan is being evaluated for a loan modification or other foreclosure prevention program.

A foreclosure is the process of taking title to a mortgaged property as a result of the borrower's failure to make mortgage payments. Depending on the state, the most common types of foreclosure are judicial foreclosure, which is processed through the court system, and non-judicial foreclosure or power of sale, which is conducted through a trustee without the court's involvement. Once foreclosure is commenced, there may be additional attorney or trustee fees and costs added to the loan balance. Foreclosure time frames leading up to foreclosure sale vary by state. Prior to a foreclosure sale date, the full amount to cure the default is required to cancel pending foreclosure proceedings. Once a foreclosure sale takes place, there may be no additional opportunity for the borrower to regain rights to the property.

A repayment plan may still be an option for you, even if you are currently in foreclosure. Successful completion of your repayment plan may help avoid a foreclosure sale while giving you time to bring your loan current.

If you would like to apply for a loan modification, you will need to complete an application that provides details about your income and expenses, and provide, among other things, income documentation (e.g. pay stubs, bank statements, profit & loss statement), tax returns, and a hardship letter with a reason why you are requesting a loan modification.

There is no fee for a loan modification. However, you may be responsible for expenses that Pennymac has incurred as a result of your default, including attorneys' fees, foreclosure fees and costs, property inspection fees, and property preservation costs, all of which are authorized under your loan documents.

Pennymac waives all accrued and unpaid late fees as part of a permanent loan modification.

A loan-to-value ratio is how much money you owe on your mortgage in relation to how much your property that secures the mortgage is worth. It is calculated by dividing the remaining loan amount (numerator) by the property value (denominator). It can be used, in conjunction with other criteria, as an indicator for eligibility for some modification programs or removing mortgage insurance.

There is never a fee to get assistance or information about modification programs from Pennymac or a HUD-approved housing counselor. Beware of any person or organization that asks you to pay a fee in exchange for housing counseling services or modification of a delinquent loan. For a HUD-approved housing counselor, visit: https://www.hud.gov/offices/hsg/sfh/hcc/fc/.

Pennymac offers a number of modification options. These programs are designed to address a variety of circumstances. When you contact us to discuss your situation, we will evaluate your financial information to see if there are loan modification programs available to you, which would allow you to stay in your home and avoid foreclosure. Each program has its own method of modifying loans and its own criteria for which loans are eligible. The federal government and the investors/owners of the loans we service set their own guidelines and requirements for their respective programs. We're here to help you find potential solutions.

Please visit our Property Damage & Payment Assistance page here.

Please visit our Property Damage & Payment Assistance page here.

You can contact Pennymac today to speak with a representative who can determine if you pre-qualify for a repayment plan or other home retention option. Be prepared to discuss the reason for your temporary hardship. Be able to provide verbal financial information concerning your current income and expenses.

A repayment plan may have a negative impact on your credit score. While on a repayment plan, your account will be reported to the credit agencies as "Paying under a partial or modified payment agreement." Once the plan is successfully completed, your account will be reported as current.

A repayment plan allows you to catch up on your missed payments over time, while continuing to make your current payments. If you qualify for a repayment plan, we can spread your past-due amount over an agreed upon term, and add it to your current monthly mortgage payment in order to bring your loan current. By exploring a repayment plan option, you are working on finding a solution to your temporary hardship, so it does not have long term effects. No further late charges will be assessed on your loan while on your plan, as long as you timely make each of your repayment plan payments.

If you're in foreclosure proceedings, or your home has been scheduled for a foreclosure sale, contact Pennymac immediately, if you haven't done so already, so we can discuss your available options. We want to help you keep your home. We may not be able to offer assistance to you if you wait until a foreclosure sale is imminent or already took place. You may also want to take advantage of HUD-approved housing counseling services. You can call the Home Owners Preservation Foundation hotline at (888) 995-HOPE, to speak with a HUD approved Housing Counselor in your community. In order to protect your rights under applicable foreclosure law, it's important that you continue to respond to any foreclosure notices you may receive. If you don't understand the legal consequences of foreclosure, you're also encouraged to contact a lawyer or housing counselor for assistance.

The purpose of the Trial Period Plan is to show that you're willing and able to make the modified monthly payments. The trial period lasts a minimum of three months. If you qualify, we'll send you a Trial Period Plan Notice explaining the terms and amount of your payments. It will be based on our estimate of what your monthly payments would be with a permanently modified loan. Your Trial Period Plan becomes effective when you make your first trial plan payment. Payments can be made online using the One-Time Payment option on this website. You must make each Trial Period Plan payment in a timely manner, in the amount specified in the notice, in order to receive a permanent modification. If your original loan payment doesn't include amounts to pay your property taxes and/or homeowners insurance, an escrow account will be created and those amounts will be added to your monthly payment. If you're unable to successfully complete the Trial Period Plan to receive a permanent modification of your mortgage, you may need to consider options that involve relocation to a more affordable home. If your home is currently worth less than the amount remaining on your loan, you may be able to either sell your house through a short sale or sign over title to your home to your lender through a deed in lieu of foreclosure. These programs usually include relocation assistance payments to help you move to a more affordable home.

To be approved for a permanent loan modification, you must: Successfully complete your Trial Period Plan, complete housing counseling if you have been asked to do so, and return any additional required documentation in a timely manner. After you're approved, you'll receive a letter and Modification Agreement defining the changes to your home loan. You will need to sign the Modification Agreement in front of a notary and return the notarized executed agreement as soon as possible to Pennymac. Your modification only becomes permanent after Pennymac receives the executed agreement. Until then, we strongly encourage you to continue making payments in the same amount you paid during your trial period. Please note: Once your loan is permanently modified, your new monthly payments could be higher than your Trial Period Plan payments.

Depending on the timing, we will try to work with you on another loss mitigation option, which may involve considering relocating to a more affordable home.

Please Note: Authorized Third Parties cannot create an online account and we encourage customers to not share their online credentials. If you would like to authorize a third party to call our customer service team to obtain access to your account information or to make payments, please follow these steps: Create a copy (PDF format preferred) of your signed written authorization request. Include the following:

• Name of the Third Party you are authorizing
• How long the authorization is for (limited time or life of loan or expires on a certain date)
• Loan Number you are authorizing
• Required handwritten signature with date

Visit the secure Message Center of your online account. Compose and send a message with the authorization request as an attachment.

You can change your online account password at any time by logging into your account. To change your password, visit Account Settings and select the "Password" option from the list. From there, you can change your password. Your new password will then be active the next time you log in.

You can visit the Statements & Documents section of the website. From here, you will find documents such as your Monthly Statement or Year-End Statements. You may also request to view loan documents such as your Note, Mortgage/Deed of Trust or Appraisal by using the request form at the bottom of the page.

In order to update our records to reflect your recent name change, the following information is required: Create a legible copy (PDF format preferred) of your Driver’s License or State photo identification. Create a copy (PDF format preferred) of a legal document such as a marriage certificate, divorce decree, or name change affidavit, reflecting the reason for the name change. Create a copy (PDF format preferred) of your updated homeowner’s policy, reflecting the name change. Visit the secure Message Center. Compose and send a message with the appropriate documents as an attachment.

Log into your pennymac account online and visit our secure message center to request a verification of mortgage. If you are a third party requesting a verification of mortgage on behalf of our customer we must have written authorization to release this information to you. Please review the section "How do I authorize someone other than me to discuss my loan information?" for more information.

We accept payoff funds via Wire Transfer, Title Check, Cashiers Check or Money Order. Personal checks are not accepted when paying off a loan. Loan payoff cannot be completed through the Pennymac website or automated phone system. When sending funds by wire transfer, to avoid fraud please use only the wiring instructions provided below. Emails and fax documents can be intercepted and altered resulting in false wiring instructions in order to send funds to a fraudulent account.

Wiring Instructions - Please be certain to reference your loan number on the wire.

Bank Name: JPM Chase
PennyMac Loan Services, LLC
ABA #021000021
Bank Account: #818073923
Loan: #
Attention: Payoff

Mailing Instructions - Please be certain to reference 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

Login to your Pennymac.com account and go to the Payoff Resource Center. There you can request a statement online. You'll receive an email notification as soon as your statement is available to view. Once available, you'll find that the statement includes the information needed for a loan payoff. If you are a third party requesting a payoff demand on behalf of our customer please use our third party website servicingpartners.pennymac.com

Pennymac welcomes your feedback! Visit https://www.pennymac.com/contact-us to provide us any feedback you have.

Pennymac will need proof of your correct social security or TIN number. Please follow the steps below: Visit the secure Message Center. Send a message attaching a copy of one of the following: social security card, W9 or 1003. For TIN updates please attach a copy of one of the following: TIN card, W9, or TIN letter from the IRS.

Notify Pennymac right away if/when your mailing address changes. You can update your mailing address by visiting the Account Settings of your online account and selecting Contact Information. Note: Changing the mailing address will affect where we send your Monthly Billing Statement and other important information that must be mailed to borrowers on the loan.

The One-Time Payment feature requires the use of a valid checking or saving account. Other account types are not supported by this service at this time.

If you tender funds that are equal to or greater than two full payments, your funds generally will be applied based on the following payment hierarchy (unless your note provides otherwise): Principal and interest payment, Escrow payment (if you have an escrow account for payment of property taxes and hazard insurance), Escrow Advance/Escrow Shortage (if due), Late Charges (if due), Other Fees (if due), and Principal reduction. If you are expecting to send additional funds outside of your normal payment pattern, please contact Pennymac and let us know how you want us to apply those funds.

This payment service is where the equivalent of 13 payments are made within a 12-month period. The monthly payment is divided in half and drafted every 14 days, which results in two additional drafts in one year that are applied as a principal reduction. To be eligible for this program, you must be paid one month in advance, and you cannot make additional principal payments, or the plan will be canceled.

Pennymac AutoPay Monthly is a service where you can elect to have your payments automatically deducted from your bank account once a month on the date of your choosing.

Unfortunately, no. In order to cancel a Pennymac AutoPay draft, Pennymac needs the request to be submitted no later than 3 business days prior to the draft date.

You can change your elections at any time online. To change your bank account number, select Make A Payment from your online account and click on Automatic Payments. On this screen, when you have an active Pennymac Auto Monthly Program, you can select the Make Changes button that will allow you to edit your bank information, your amounts, or even your selected day of the month to draft your payments. Be sure to complete the form and submit it for your requested changes to be processed. At this time, if you are enrolled in Pennymac's AutoPay Bi-Monthly Program, election changes must be managed by contacting our Customer Service Department.

You can change your elections at any time online. To change your draft date, select Make A Payment from your online account and click on Automatic Payments. On this screen, when you are enrolled in an active Pennymac Auto Monthly Program, you can select the Make Changes button that will allow you to edit your bank information, your amounts, or even your selected day of the month to draft your payments. Be sure to complete the form and submit it for your requested changes to be processed. At this time, if you are enrolled in Pennymac's AutoPay Bi-Monthly Program, election changes must be managed by contacting our Customer Service Department.

Visit the Make A Payment section of your online account and go to the Pending Payments page. Select the edit link for the payment you would like to make changes to or use the cancel link to cancel the payment all together.

No, there is not a charge to make a payment online or with the Pennymac Mobile app. The One-Time Payment option is a free, easy to use tool for you to make your monthly payments. You may also wish to consider visiting the Automated Payment section to sign up for automatic monthly payment options.

Clicking on the submit button more than once while using the One-Time Payment feature will not create duplicate submissions. You can also view your pending payments to ensure there have not been any duplicates created accidentally.

Even though there may be a memo section on your home banking template, Pennymac does not receive this information on electronic file transfers. If a check is sent to Pennymac by your bank, the memo section may still not be available or may be incomplete.

You can verify if your payment was successfully submitted by viewing the ‘Pending Payments’ section of your online account. Or log in to the Pennymac Mobile app and choose ‘More’ in the menu and select ‘View Pending Payments’. If you do not see the payment, you may need to schedule another one-time payment.

The timeframe for receiving your payment from your bill pay service depends on the relationship with the payee. Pennymac is set up to receive electronic payments with most large banks. Those payments can usually be delivered in 1-2 business days. Some bill pay services (typically smaller banks and credit unions) will issue paper checks to Pennymac. Those payments are typically delivered by regular mail within 5-7 business days from the date you initiated the transaction.

No, if your draft falls on a weekend or holiday it will be applied the next business day without any penalties.

Pennymac processes payments Monday through Saturday (excluding certain holidays) up to 8pm Pacific. If your scheduled draft date falls outside this schedule, such as a Sunday, Thanksgiving Day, Christmas Day or New Year's Day, it will be applied the next business day.

Yes, you have the option to make extra principal payments. You can go to the One-Time Payment section of your online account and select Principal Reduction. This will schedule your principal reduction payment on the date you select. Your loan must be current before an additional principal payment will be applied. The benefit of making extra principal payments is that your account will mature sooner resulting in less interest being paid over the life of the loan.

We encourage you to visit the Loan Activity page of your online account and review how your payment was applied, especially if you submitted an amount that is different from what is expected (total payment due). If we applied your funds in a manner that was not your intention, please contact us through the secure Message Center or visit our Contact Us page so we may correct the application of your funds.

It is important to make sure you have sufficient funds present in the account from which your automatic payments are being drawn. If your account does not have enough funds to cover the complete payment amount, the payment will not be successfully processed and you may be charged nonsufficient fund (NSF) fees. Also take note, should an NSF event occur enough times, the Pennymac AutoPay Program can be cancelled as a result and you may be required to make future payments with certified funds (e.g. cashier's check, money order, or wire transfer). If you are having problems making your payment or anticipate it may become a problem, please contact us to discuss payment assistance options.

Pennymac will send a notice to you regarding the current and new interest rates, the change in your principal and interest payment and the date your new payment is due. At seven to eight months prior to the first rate change, Pennymac will send out an initial notice to you regarding the upcoming change and provide an estimated amount of what the interest rate, principal and interest payment may be at the time of your first change. An additional notice will be sent to you for the actual interest rate and principal and interest payment amount 25 or 60 calendar days before the first scheduled change. This time frame depends on the terms of the Note and the Index availability prior to the change date. After the initial rate change, you will receive notice within two to four months before ongoing rate changes. These notices are only required if the rate change results in a change to your monthly payment.

Payments made before 8pm Pacific, Monday through Saturday (excluding certain holidays) will be processed and sent to the receiving bank that same day. Payments made after 8pm Pacific will be applied on the next business day. Pennymac processes payments Monday through Saturday (excluding certain holidays).

You can make a One-Time Payment payment in your online account or using our Pennymac Mobile app. You will need your bank routing and account numbers to process this request.

A mortgage recast is when a large payment is made to the principal balance and the loan is amortized over the remaining terms. The result is a lower monthly payment. Recasting does not change the interest rate or any other terms of the loan.

Did you purchase a new home before selling your old home and want to apply the proceeds of the sale to your new Pennymac mortgage? Perhaps you received a large amount of money and want to lower your Pennymac mortgage payment? If this is the case, it sounds like you may want to recast your mortgage. Pennymac can help you with that!

Is there a fee for the mortgage recast?

Yes. Pennymac’s fee for a recast is $250.00, which should be paid with the total principal payment.

Are all loan types eligible for mortgage recast?

Not all loan types are eligible for recast. Government backed loans (Federal Housing Administration (FHA), United States Department of Agriculture (USDA) and Veterans Administration (VA) do not qualify for recast. Conventional loans are eligible for a mortgage recast!

Can I do a mortgage recast with any principal payment amount?

No. The amount paid to principal must be at least $10,000 and in a lump sum payment and must be sent in by certified funds or wire. Please note that for payments NOT received via certified funds or wire, Pennymac will request bank statements and it may delay the overall processing time for the recast. If you are ready to start the recast process, give us a call at 800.777.4001.

How long does it take to recast my mortgage and lower my monthly payment?

The overall process can take anywhere from 3 to 6 weeks*. The principal payment and recast fee must be applied to the loan in order for the process to start. Also, your loan must be current and remain in a current status in order for the recast to be completed.

*Certain conditions may extend the time frame to complete the recast process.

Can I adjust the terms of my loan as part of the mortgage recast?

No. A mortgage recast only amortizes the unpaid principal balance over the remaining terms of the loan, which then reduces the monthly payment. If you would like to change the terms of the loan, a refinance may be the way to go. To speak with a Loan Officer about your refinance options, call us at 866-549-3583 or click here.

See if your one-time payment was scheduled by visiting the ‘Pending Payments’ section of your online account. Or log in to the Pennymac Mobile app and choose ‘More’ in the menu and select ‘View Pending Payments’. You can also cancel a pending payment if needed.

Payments are considered late if they are not received by the due date on your Note. Most Notes require payments to be made on the first day of the month with a 15-day grace period before a late fee will be charged. You can view this information on your monthly statement.

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

If you have a question about how a payment is applied, please submit a payment research request through the secure Message Center. Create or locate a copy (PDF format preferred) of any documents that would be helpful to conduct your research. Visit the secure Message Center of your online account and send a message with any relevant documents as an attachment.

This information is available at the following web site: http://www.ebillplace.com/cda/ebillplace/getstarted/banksearch_results.jsp. To provide you the best service possible, Pennymac is regularly working with financial institutions/bill pay services to convert from a physical check to an electronic file. We will update this site with new financial institution names as they become available.

There are some challenges with Home Banking due to limitations in receiving your payment application intentions. We may be able to provide you more flexibility with your payment application by enrolling in Pennymac's AutoPay Program. Please visit the Automatic Payments page of your online account to set up your program.

Yes, you will still need to make your payment until you receive confirmation of what month your automatic drafts will begin.

Funds should clear your bank account within 24-48 hours from the day your payment processes. If there is an issue with the transaction, you will be notified via an email from Pennymac to check the secure Message Center of your online account for the details of what happened.

The amount of money applied to your escrow account is determined by the amount needed to pay your taxes and/or insurance on a yearly basis. This amount will change when the amount needed to pay these items either increases or decreases, or the scheduled payment for the last year has not been met. You can find the amount of your escrow payment in the Loan Activity section of this website or on your monthly billing statement. Pennymac will pay the full amount due for your taxes and/or insurance premiums even if you do not have sufficient funds in your escrow account. The shortage will be reflected on your monthly statement, and Pennymac will collect the shortage back from you in additional monthly amounts over the next twelve months after your escrow account is analyzed. Your escrow account is set to be analyzed every twelve months. If there are any extra or surplus funds, an overage check will be sent to you within 30 days after the analysis has been completed.

An escrow analysis statement will show you what is projected to be paid over the next twelve months to ensure that your property taxes and insurance premiums are kept current. If your taxes and insurance are serviced by Pennymac, we will analyze your escrow account at least once every twelve months to ensure there are sufficient funds being collected to make all scheduled payments. The annual escrow analysis determines if any adjustments need to be made to your escrow payments based on projected payments for the coming year. You should review this statement to make sure that Pennymac is scheduled to pay your taxes and/or insurance premiums at the correct time and for the correct amount. Discrepancies should be reported to Pennymac immediately. An annual escrow analysis details amounts collected, payments made, and anticipated payments for the coming year. This analysis is available to you in the Statements & Documents section of your online account and by mail if you have not elected paperless only delivery.

The best thing you can do is keep an eye on the amounts disbursed for property taxes and homeowners insurance. If your homeowners insurance increases, you may want to shop for a better rate at https://pennymacinsurance.com.

With regard to property taxes increasing, make sure you have applied for all applicable exemptions in your county, city, etc. Also, if you receive a bill and notice the amount is higher than the amount we are currently collecting to pay, you can send us a secure message requesting an out-of-cycle escrow analysis. Upon completion of an escrow analysis, your payment is adjusted accordingly. This will help ensure we are collecting the correct amount and decrease your chances for an even larger escrow shortage when we complete your next annual escrow analysis.

Yes, PMI will be terminated automatically if you reach the midpoint of your loan's amortization schedule (halfway through the life of your loan). For example, on a 30-year loan, the midpoint would occur after 15 years have passed. This may occur for people who have a mortgage with an interest-only period, principal forbearance, or a balloon payment. Keep in mind that you must be current on your monthly mortgage payments for termination to occur.

Generally, the PMI on loans will cancel through auto-termination or borrower requested deletion; however, if these dates have not been reached, your PMI will be terminated automatically on your loan if you reach the midpoint of your loan's amortization schedule. The midpoint of your loan's amortization schedule is halfway through the life of your loan. For example, on a 30-year loan, the midpoint would occur after the 15 years have passed. Keep in mind, you must be current on your monthly mortgage payments for termination to occur.

Having an escrow account does not prevent you from making changes to your insurance. This means you are free to change insurance carriers any time you wish. To make a change in carriers, request your old carrier to forward a cancellation notice to Pennymac. Please ensure your new insurance company is aware that your insurance is escrowed and also provide them with your loan number and the mailing address found on the Contact page on this website to ensure your monthly premium is paid by Pennymac on time.

Generally the PMI will be terminated automatically when the principal balance is first scheduled to reach 78% of the original value of the secured property, based on the initial amortization schedule, provided that the loan is current on the anticipated cancellation date. Additional requirements regarding the loan may need to be met to determine eligibility. When the PMI is terminated automatically, a confirmation letter will be mailed. If the loan to value reaches 80% prior to the automatic termination on point, you may initiate a review for PMI deletion. However, there may be a cost for a Brokers Priced Opinion (BPO) or an Appraisal.

PMI is a type of mortgage insurance used with conventional loans. Conventional loans may be eligible for early removal of monthly PMI premiums, as long as certain requirements are met. Borrowers with FHA-insured loans pay an up-front mortgage insurance premium (UFMIP) and annual mortgage insurance premiums (MIP). These premiums are set as a percentage of the loan amount. FHA mortgage insurance premiums are normally required regardless of the LTV, and generally last for the life of the loan. The rules for cancellation or termination of PMI do not apply to FHA or VA loans.

The benefit of an escrow account is that you do not have to worry about paying a large tax or insurance bill in one lump sum. Additionally, Pennymac will always ensure that your taxes and insurance are paid when they come due, even if there is a shortfall in the amount available in your escrow account. Any such shortfalls will be made up over the course of future monthly escrow payments.

An escrow account (also known as an impound account) is an account established to help customers pay property taxes and insurance premiums for their mortgaged property. Deposits are made to the escrow account from your monthly mortgage payments in addition to the principal and interest amounts due. Note that supplemental tax bills generally are not paid from the escrow account. Any supplemental tax bills must be paid directly by you to the taxing authority. Similarly, homeowner or condo association dues are not paid from your escrow account, and they should be paid directly by you. This type of escrow account is different than the escrow account established by the closing agent during the making of your loan.

This is the amount of money currently in your escrow account available to pay taxes or insurance for your property. Your escrow account includes a two-month cushion of your monthly escrow payment to prevent a shortage amount in case your taxes or insurance payments increase. You can locate your Current Escrow Balance in the Escrow section of your online account.

The reserve requirement is part of your monthly escrow payment, which is additional funds used to cover unanticipated disbursements or increases due to possible insurance premium increases, higher tax assessments, or other escrow bill factors. In other words, it helps soften the impact to your escrow account should property taxes or insurance premiums consume the escrow account balance. The reserve can equal up to 2 months of your annual tax and insurance amounts and is allowed under the Real Estate Settlement Procedures Act ("RESPA"). Certain restrictions may apply based on state law.

An escrow shortage occurs when the amount in your escrow account is less than what is required. This is referred to as the minimum balance.

When the escrow analysis is performed each year, it looks at the deposits into the escrow account, the amounts paid for taxes, insurance, and mortgage insurance (if applicable) over the last twelve months, and the escrow reserve-sometimes referred to as a cushion. The shortage may be attributed to bills paid that were higher than anticipated and/or a new bill that was not previously anticipated, and Pennymac had to advance funds on your behalf to cover the cost of those bills.

The escrow analysis also looks ahead to calculate the amount needed to pay escrowed bills for the next year. The shortage could also be attributed to needing more funds in your escrow account to pay the estimated taxes and insurance in the future. In other words, the shortage can be attributed to an increase in your estimated insurance and tax bills for the next year.

If you sustain damage or loss to the property that secures your mortgage loan, you need to contact your insurance carrier to file a claim. The carrier will send an adjuster to the property who will assess the damage. If the damage that has occurred is covered under your insurance policy, an insurance claim check should be sent to you. This check would include Pennymac as an additional named payee under the mortgagee clause of your policy. Once you have received the insurance claim check, you can contact Pennymac's Insurance Department for an explanation of the process by which Pennymac will monitor the repair process and disburse the insurance proceeds. If your loan is current and the total insurance claim check is less than $10,000, Pennymac will endorse the check over to you to be used for repairs. If your loan is delinquent or the check is more than $10,000, Pennymac will deposit the funds into a restricted escrow account and pay you from those funds once repairs are completed. Before sending your check to Pennymac, please make sure all other payees have signed it or Pennymac will not be able to start processing your request. You should send the check to the following address: Insurance Claim Center - Attention: Loss Drafts Pennymac 776, P.O. Box 6501, Springfield, OH 45501

If you believe your insurance payment(s) should be different than what's reflected, please upload a copy of your most recent policy to https://www.mycoverageinfo.com/pennymac.

If you believe your tax payment(s) should be different than what's reflected, you can upload a copy of your most recent tax bill via the secure message center.

There is no fee or deposit required to establish an escrow account. However, a deposit to create an initial balance in your escrow may be beneficial for you in order to begin saving for the upcoming payment amounts due. Generally, a deposit equal to two months escrow payment, subject to state limitations, is recommended.

Most mortgages require proof of a minimum amount of hazard insurance to protect the lender's interest in the property that secures the mortgage loan from fire, wind, and other property damage. If your insurance is cancelled, it is important for you to replace any required insurance on the property right away. Failure to replace a cancelled policy may result in the placement of insurance coverage by your lender (known as lender-placed or force-placed insurance) to meet the required minimum insurance for the property. Force-placed or lender-placed insurance is purchased when Pennymac receives notification that your homeowner's, flood, or other hazard insurance coverage has been cancelled and we have not received renewal or replacement policy information. The cost of lender-placed insurance will be added to your monthly mortgage payment. Lender-placed coverage may be more expensive than insurance you would purchase yourself and may not provide the same coverage. In order to avoid lender-placed insurance, please consider taking the following steps: Create or locate a copy (PDF format preferred) of your insurance policy declaration page. Visit the secure Message Center of your online account. Compose and send a message with the insurance declaration page as an attachment. Pennymac will update your insurance information within 3-5 business days from the time we receive the request and the insurance declaration page. Once completed, the new insurance information will be reflected in the Escrow section of your online account that details your insurance information. If there is a change in any lender-placed insurance, visit the secure Message Center of your online account. Compose and send a message with the declaration page or policy as an attachment. If we purchase lender-placed coverage and you can provide proof of your own coverage for that period of time, any lender-placed premiums will be refunded and credited to your escrow account.

Homeowners insurance premiums can increase due to changes in the policy terms like the dwelling coverage amount and/or deductibles. Depending on the state you live in, premiums may also increase because of loss claims or severe weather events (hurricanes, tornadoes, fires, etc.). If your homeowners insurance increases, you may want to shop for a better rate at https://pennymacinsurance.com.

If you have flood insurance, premiums can also fluctuate based on flood zone requirements and coverage changes.

If you changed insurance carriers, multiple policies may have been paid.

Note: If you received an insurance refund from your insurance carrier, you may want to contact Pennymac to determine if those funds need to be sent to Pennymac to be placed into your escrow account.

You may view account activity such as escrow payments by visiting the Loan Activity section of your online account. In the Loan Activity section, you can view Pennymac activity describing who was paid, how much, and when it was paid. In addition, you may view this information in the Transactions section of your monthly billing statement, which reports activity since your last statement.

Once Pennymac sets up your new payment, it will automatically deduct from your bank account at the new payment amount if you are signed up for the Pennymac AutoPay service (ACH). It is your responsibility to ensure that there are sufficient funds in your account on your scheduled payment deduction date. Please check the Make A Payment section of your online account for all pending payment information. If you use an online banking or bill-pay service, you may need to adjust the payment amount directly through that payment service as Pennymac will not have access or authority to do it on your behalf.

Your mortgage payment may increase (or decrease) if there is a change in the property taxes, and/or homeowners insurance premium amount(s). You’ll want to look at what your property taxes and homeowners insurance premium amount(s) were prior and compare to what they are now. If either of these amounts went up since the last escrow analysis, that is likely the reason your mortgage payment went up.

A mortgagee clause in an insurance policy reflects the name and address of your mortgage lender or servicer, which would be a co-payee on any amounts paid by the insurer on a covered claim based on the lender's interest in your property that secures its mortgage loan. Pennymac's address for the mortgagee clause of your hazard policy is: PennyMac Loan Services, LLC Its Successors And/Or Assigns P.O. Box 6618, Springfield, Ohio 45501-6618

Supplemental Tax Bills generally are not included in the escrow account set up for your loan. These supplemental bills are the responsibility of the property owner to pay. However, if paying this bill will create an undue hardship, you can request Pennymac to pay this bill from the balance remaining in your Escrow Account and any shortfalls will need to be made up over the course of future escrow monthly payments.

No, condominium and homeowner association ("HOA") fees are not included in your monthly mortgage payments. You are responsible for paying condominium/HOA fees directly to your association.

PMI on a conventional loan will be terminated automatically when the principal balance is first scheduled to reach 78% of the original value of your home. The loan must also be current on the anticipated cancellation date, or it will be terminated after the loan is brought current. Additional requirements regarding the loan may need to be met to determine eligibility. A confirmation letter will be mailed to you when PMI is terminated automatically. The Homeowners Protection Act (HPA) gives you the right to request PMI cancellation when the principal balance of your mortgage is scheduled to reach 80% of the original value of your home, or the date the principal balance actually reaches 80% of the original value. Cancellation may require an appraisal (at your own expense) to confirm your home's value hasn't declined since closing; a good payment history and being current on your payments; and certification that there are no junior liens on your home. Some state laws may have additional requirements for cancellation or termination of PMI.

Private mortgage insurance, also called PMI, is a type of mortgage insurance used with conventional loans. Like other kinds of mortgage insurance, PMI protects the lender if you stop making payments on your loan. Most mortgage lenders require private mortgage insurance (PMI) on conventional mortgage loans originated with a loan to value (LTV) ratio greater than 80%, meaning the borrower made a down payment of less than 20% of the home's purchase price, or refinanced with equity less than 20% of the value of the home. PMI protects the lender from losses if the borrower defaults on the loan. Typically, a borrower will pay for PMI by a monthly premium added to the monthly mortgage payment. Sometimes PMI is paid for with a one-time upfront premium paid at closing, or with both upfront and monthly premiums.

Your property taxes can increase as a result of a few things: 1) your property value was reassessed by the county, city, town assessor (especially the case when a home changes owners), 2) an exemption was not applied to your tax bill as you expected, 3) an additional tax bill was paid, i.e. supplemental tax bill.

Note: if you asked for your supplemental taxes to be paid out of your escrow account, that would be considered an unanticipated tax bill and may have caused a deficiency in your escrow account.

Homestead exemption laws, available in some states, protect the value of a home from property taxes, creditors and circumstances arising from the death of a homeowner spouse. If you have qualified for an exemption, you can send Pennymac a copy of your homestead exemption document and upload it through the secure Message Center of your online account. Create or locate a copy (PDF format preferred) of your homestead exemption document. Visit the secure Message Center on this website. Compose and send a message with the homestead exemption document as an attachment.

If your account is escrowed for taxes and you receive a tax bill, you do not need to take any action as Pennymac receives the information as well. However, if you receive a delinquent notice, you will need to send it to Pennymac. You can contact us through the secure Message Center of your online account to share the information contained in the letter. Create or locate a copy (PDF format preferred) of your tax bill. Visit the secure Message Center of your online account. Compose and send a message with the tax bill as an attachment. If Pennymac does not include your tax payment in the escrow account, you are responsible for payment of your taxes directly to the taxing authority. Failure to pay these taxes in a timely manner may result in Pennymac paying these amounts on your behalf and requiring reimbursement and/or creation of an escrow account as part of your mortgage payments going forward. If you are not sure whether Pennymac collects for payment of your taxes, please visit the Escrow section of this website.

Once your loan has been paid in full, the escrow/surplus balance (if any) will be refunded to the mailing address on our system within approximately 15-21 business days from the date of the payoff transaction. If you are moving, please be sure to provide any change of address at the time of your loan payoff.

Yes, you may request to have your loan reviewed for PMI cancellation based on the current value of your home, rather than the original value. Generally, the current value of the property needs to be validated by an appraisal (at your own expense). The property must meet a certain LTV ratio to be considered, generally 75% or below depending on investor guidelines, regulations and/or state law. If the loan closed less than 2 years ago you may need to provide evidence of substantial improvement to the property value.

In order to begin a review of the eligibility process, please contact us using one of the following methods: Submit a secure message request via the website through the secure Message Center. Call our Customer Service department for assistance and a specially trained Customer Service representative will walk you through a pre-screening of the possible eligibility on your loan. If it is determined that your loan may qualify for PMI cancellation, your request will be assigned to the PMI Deletion team for further review.

Mortgage insurance may only be cancelled when certain requirements are met based on investor guidelines and applicable law. If you feel that you have met the criteria, you may submit a secure message through your online account to be reviewed for cancellation. Create or locate a copy (PDF format preferred) of your written request to remove your mortgage insurance. Visit the secure Message Center of your online account. Compose and send a message with written request as an attachment.

If your insurance is escrowed, Pennymac must be identified in your insurance policy as the mortgagee. You will not need to send Pennymac your insurance bill as you receive it so long as Pennymac is named in the policy as we will receive a copy as well. However, if you receive a delinquent insurance bill, you should send us a copy. You may do so by sending a message through the secure Message Center of your online account: Create or locate a copy (PDF format preferred) of your insurance policy declaration page. Visit the secure Message Center of your online account. Compose and send a message with the insurance declaration page as an attachment. If Pennymac does not escrow for payment of your insurance, you are responsible for payment of your premium directly to your agent/carrier. Failure to pay these premiums in a timely manner may result in Pennymac purchasing an insurance policy to protect our interest in the property, which will increase your monthly payment amount. Force-placed or lender-placed coverage may be more expensive than insurance you would purchase yourself and may not provide the same coverage. If you are not sure whether Pennymac collects escrow for payment of insurance premiums, please visit the Escrow section of this website.

If you have Hazard Insurance coverage, please provide us with the front page of your policy or binder that summarizes coverage, limits, deductibles, and states the current coverage period for your policy or binder. We will also accept a notice showing that an acceptable policy has been reinstated. Please submit your evidence by using one of the below methods:

• Provide policy information on our website at www.mycoverageinfo.com/pennymac.
• Email policy information to pennymac@mycoverageinfo.com
• Mail a copy of your Hazard Insurance Declaration Page with your loan number to the mortgagee listed below:
  
  PennyMac Loan Services, LLC
  ITS SUCCESSORS AND/OR ASSIGNS
  P.O BOX 6618
  SPRINGFIELD, OH 45501-6618
• Fax a copy of your Homeowners Insurance Declaration Page with your loan number to 1-866-235-1215.

You may submit a request through the secure Message Center of your online account that you would like to set up an escrow account. You will be notified of any documents that you will need to provide for Pennymac to set up your escrow account. You may also visit the Contact Us page to call Customer Service. Once complete, you will receive a written confirmation. In addition, you can check if your escrow account has been set up by viewing your account details in the Escrow Center section of your online account.

Property taxes and insurance premiums must be paid in full and current prior to establishing an escrow account. If you have a tax or insurance premium due within one month of receipt of your escrow setup request, you must first pay those items as they come due.

You will receive two year-end statements. One will be from your prior servicer and the second will be from Pennymac for the time after your loan was transferred.

Please consult with a tax professional for any questions regarding tax deductibility or preparation.

A separate Form 1098 must be filed for each mortgage. A 1098 issued by Pennymac will reflect the amount of mortgage interest (including points) received by Pennymac during the year. Your previous loan servicer is responsible for sending a 1098 for the period of time they serviced your loan. You could also receive more than one 1098 if you refinanced your property during the year.

Year-end statements will be mailed and available online the third week of January. Be sure to update your preferences to select Paperless Delivery method if you do not wish to receive the paper year-end statement. You will be able to access the year end statement online at any time once it is available.

Please check your browser settings to make sure you have disabled pop-up blockers.

Please consult with your tax professional and advise that your 1098 information has changed.

If you paid less than $600 in mortgage interest (including points) during the year, you will not receive a 1098 from Pennymac.

Pennymac only reports mortgage interest on payments made to Pennymac. You should receive a 1098 from each company you paid reportable mortgage interest or points to. You could receive more than one 1098 if the servicing of your loan transferred during the year.

Registered customers can easily view, download and print their 1098 online. If you are not registered, please visit our website at PENNYMAC.COM to register. If you are registered already, your 1098 will be available on our website in the Statements and Documents section.

Monthly billing statements are generated between the 10th and 22nd day of the month prior to the payment due. For example, if you are looking for the monthly billing statement for June, it will be generated some time between May 10th and May 22nd. Online PDF versions of your bill are typically available within 2-3 days after that, and will be posted to the Document Center section of this website. If you wish to no longer receive your billing statement via mail, you can update your preferences to enroll in paperless statements by visiting the Account Settings of your online account and selection Paperless Preferences from the list.

If it is determined that any information on your 1098 is inaccurate due to an error, we will issue a corrected 1098.

The IRS requires Pennymac to report mortgage interest received from the payer of record. We report it in the name and social security number of the primary borrower.

Statements that are printed before the receipt of your last payment will reflect your current month's amount due as well as any amount that you are past due. If you mailed your payment after your due date, the statement may reflect that you have two payments due. Please check with your bank to ensure your payment has cleared your account. To verify that Pennymac has received your payment, you may view the Loan Activity page of your online account.

Yes! Click on the Statements & Documents section and you will see your Year-End Statement. When you click on the link, it will open a PDF in a new tab for you to view, print or download.

IRS Form 1098, Mortgage Interest Statement, is used to report mortgage interest (including points) of $600 or more you paid during the year. Form 1098 is also commonly referred to as a year-end statement or annual tax statement.

If you receive your monthly statement by mail, you will receive both your monthly statement and paper Form 1098 in the same envelope as your February statement (mailed in January). The outside of the envelope will state “Important Tax Return Information Enclosed”. If you receive your monthly statement and year end statement electronically, the combined statements will be available on our website and will be located in the Statements and Documents section. Registered customers will receive an email notification when the year end statement is available online to view, download and print.

IRS Form 1099-INT is filed for all customers who earn $10.00 or more of interest on their escrow balance. Earned interest amounts are deposited to a customer’s escrow account either monthly or annually depending on state requirements. Not all customers will earn interest on escrow.

If your property went through a foreclosure, deed in lieu or short sale process during the year, you will receive a copy of Form 1099-A or 1099-C. Form 1099-A is used to report a loss for completed foreclosures and deeds in lieu of foreclosure. Form 1099-C is used for properties sold in a short sale or for loans where any portion of the debt was forgiven. This may include principal reduction modifications and incentive modification programs.

Some basic troubleshooting tips to help you log in successfully.

• Check that your username and password are correct. If you forgot your username and password, be sure to reset it
• If you know your password is correct, try restarting your browser or your computer before attempting to log in again.
• Clear your browser’s cache and cookies. For step-by-step instructions, google your browser name along with “clear cache, cookies.”
• Trouble using the mobile app? Be sure you have the most up-to-date version of our iPhone or Android app. If you’re still unable to log in using the correct username and password, please delete the app and reinstall the latest version before trying again.

You can add Pennymac to your phone's home screen as an icon that links directly to our website (as a shortcut): Chrome: Open Chrome browser, enter in PENNYMAC.COM. From your phone's menu, select "add to Home Screen." Adjust Title as you wish. Select 'Save'. Internet Explorer: Open Internet Explorer. Enter in PENNYMAC.COM. From your phone's menu, select "Add shortcut to home." Adjust Title as you wish. Select 'Save'. iPhone: Open Safari. Enter in PENNYMAC.COM. From your phone's menu, select 'Share'. Select 'Bookmark'. Adjust Title as you wish. Select 'Save'.

You can view messages that have been sent to you by going to the secure Message Center and clicking on your inbox. You can compose a secure message to upload and attach a document to be included in the message: Create a copy (PDF format preferred) of any documents that would be helpful to conduct your research. Visit the secure Message Center. Compose and send a message with any relevant documents as an attachment.

You may manage your paperless elections at any time by going to your Account Settings and selecting the Paperless Preferences option. From there, you have the ability to change your preference to online only delivery (paperless) of your billing and year-end statements. Regardless of your paperless choices, we always make your statements available online as PDF documents and can alert you to when those documents have been made available for view in your online account.