PennyMac Mortgage Review 2020

3.9 stars out of 5

The Smart Investor reviews are unbiased, and reflect the views of our editorial staff. We’ve collected the information independently. Issuers did not provide the details, nor are they responsible for their accuracy. The review is not a recommendation, the actual rates/fees may be different.

PennyMac – About The Lender

PennyMac Mortgage was founded in 2008 with its main focus of customer’s needs instead of maintaining network and branches along the way. Initially, they were set up to workout distressed loans and then, later on, started refinancing and originating loans mostly online. PennyMac Mortgage mainly work with customers online instead of face to face.

Even though they do have 14 locations in the US with over 5,000 employees, PennyMac tries to keep it more of an online based company. PennyMac Mortgage’s main headquarters is located in Westlake Village, California and in 2018 its net worth is $512.7 million with a little over 1 million customers. Even though the Better Business Bureau gives this company an A+, the customer reviews do not always agree with them.

According to the majority of the reviews from customers, PennyMac Mortgage has done nothing but hold their money hostage when disasters occur and basically ask for everything including an arm and a leg. Maybe the loan process, rates, and fees bring the customers in.

PennyMac Mortgage Pros & Cons



PennyMac Mortgage Products, Fees, and Conditions

PennyMac has a great website where you are able to compare loan products with your own individual circumstances, including whether you have the right credit score, down payment, income requirement, etc. The fact that they have such a detailed program list, is the best quality for a lender’s website. You are able to find that they offer both fixed and adjustable (ARM) rate mortgages.

You can either apply for a Conventional, FHA, VA, Jumbo, or USDA, just to name a few. They also have special programs such as their Home Ready program which offers 0% down payment and 97% loan to a borrower for refinances but comes with an income limitation. However, this program is an excellent program that helps even first-time homebuyers.

PennyMac also offers Affordable Housing programs such as HARP and HAMP loans which they have full descriptions of each loan on their website. It may seem like they don’t have a lot of programs like other lenders but it seems like they have the best interest of their clients at hand instead of throwing a bunch of fancy products your way.

PennyMac Mortgage Process – How To Get a Loan?

According to PennyMac’s loan process website, it will explain to you the process well before you go to an individual lender. However, PennyMac’s process is not very specific and pretty generic when looking at it on this website.

1. Finding a home. Once you have found a home, you will get in contact with a loan originator and they will discuss your loan needs and options.

2. Loan Application. You will complete a loan application that will then trigger disclosures that will be sent out to you to start the time line of your loan process.

3. Loan Process. You will be in contact with your operations team where they will request documentation from such as income, assets, ordering appraisals, retrieving credit reports and the information that it entails and any other documentation needed to move your loan forward into underwriting and on your way to closing.

4. Process of Underwriting. This will be the time your loan is in underwriting while they look over your loan documentation and figure out if they can accept what was given or if they need more information to get your loan officially approved.

5. Loan Closing. This is the process where your closing will be scheduled by your realtor, loan originator, and your title company. Once this happens, you are officially a new home owner.