The correspondent division of PennyMac Financial Services Inc. (NYSE: PFSI) is rolling out a new suite of non-qualified mortgage (non-QM) products on Sept. 22.
According to the Westlake Village, California-based company, the new product types include Debt Service Coverage Ratio (DSCR) for real estate investors where loan qualification is based on the property’s cash flow rather than the borrower’s personal income. PennyMac is also going to offer A+, A, and A- products designed for creditworthy borrowers who have nontraditional income profiles, such as self-employed professionals or entrepreneurs.
Pennymac’s income documentation options include Full Documentation, Streamlined (12 months), Bank Statement, Asset Depletion, Asset Qualifier, 1099, and Verbal Verification of Employment. Eligible borrowers will include first-time homebuyers, first-time investors, and non-permanent residents, among others.
Pennymac intends to retain servicing on all non-QM products. The initial rollout will be for delegated correspondent sellers on a best-effort basis. Non-QM products will also be made available through Pennymac TPO beginning in the fourth quarter.
“Our non-QM offerings are about unlocking opportunities for our Pennymac Correspondent clients and the borrowers they serve,” said Alex Boand, chief correspondent production officer at Pennymac Correspondent Group. “The non-QM space continues to grow, and we’re excited to offer a competitive, high-quality product line to meet demand among our clients.”
