FAQs

Will my credit be affected by accepting a trial period payment plan or a loan modification?

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.