Home Buying » Mortgage Lender Reviews » PennyMac Mortgage Review 2021
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PennyMac Mortgage Review 2021

PennyMac Mortgage was founded in 2008 with its main focus of customer’s needs. PennyMac mortgage review includes the different mortgage types, the PennyMac mortgage process and pros & cons of PennyMac as a mortgage lender.

We may receive compensation from companies that appear on this page. This may impact how and where products appear on a page (including, for example, the order in which they appear). It doesn’t affect our unbiased editors’ opinions. our opinions are our own.

PennyMac Mortgage Review

How Does PennyMac Works?

PennyMac Mortgage provides government-backed Mortgage that is great for individuals who want a safe and trusted lender. Most of their business is targeted at borrowers who wish to use the online or over-the-phone medium to collect their loans. They require a minimum credit rating of 620 and a minimum down payment of 3%. PennyMac offers a full range of online solutions to help their customers navigate their loan process. Some of these solutions include loan application tracking and E-signatures.

Some of the loan options available for users of this service include adjustable-rate Mortgage, fixed-rate Mortgage, refinance Mortgage, VA, USDA, and FHA. They also offer staff who will help borrowers through the process and ensure that clients get their loans in a timely and orderly fashion.

PennyMac Mortgage review

On PennyMac Secure Website

Funding Options

– Fixed / Variable Mortgage
– Mortgage Refinancing
– Government Loans

Minimum Credit Score




On the lender website, customers will compare fees and rate estimates of various loans and pick out the package that best suits them. This is part of the PennyMac rate transparency.

Borrowers can contact PennyMac over the internet or by calls to a loan officer at the establishment. The lender has an A+ rating from the Better Business Bureau, and this serves to increase the confidence in the nationwide online lender.  

Reputation - Customer Ratings & Complaints

  • A+ on BBB: BBB assigns ratings from A+ (highest) to F (lowest). BB ratings are based on information in BBB files with respect to factors such as business's complaint history with BBB, type of business, time in business, transparent business practices and more.
  • 3.9/5  on BBB customers reviews (586 reviews): BB customer reviews allow customers to post positive, negative or neutral reviews based on lender's experience.
  • 4.1/5 on Trustpilot (1361 reviews) TrustScore is also an overall measurement of reviewer satisfaction, represented numerically from 1 to 5.
  •  J.D Power: PennyMac mortgage got 773 points out of 1000 points available – lower than the industry average. We considered 2020 J.D. Power’s primary mortgage as well as J.D. Power’s claim satisfaction survey.
  •  J.D Power offers the most comprehensive and independent study of customer satisfaction. The study aims to help consumers and issuers to understand user opinions and ratings of the largest mortgage origination companies. It covers customer satisfaction, terms,  communication, transparency and more.

J.D. Power U.S. Consumer Satisfaction Study 2020

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.

Pros & Cons



Application Process

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.

Alternatives Lenders

We’ve summarized some of the most popular mortgage lenders which can use as an alternative to the PennyMac mortgage:

Suntrust is best suited for the borrower who can deal with technology (if not located in the Southeastern United States) and who meets reasonable standards for credit score (620 – 850), can qualify based on their income and demonstrate down payment and reserve requirements for Suntrust’s programs.

You do not have to have the highest credit scores or significant cash down payment for their loans. Suntrust has a solution for most borrowers, including some that require no cash down and a workaround for jumbo borrowers who cannot meet the reserve requirements.

While Suntrust doesn’t have the highest customer satisfaction ratings on the major rating sites, such as J.D. Power and Bankrate.com, they were very responsive to our requests for information.  

New American Funding Mortgage is ideal for individuals looking for safe and secure loans backed by the government. To be eligible for this loan, you will need to have a minimum credit rating of 700, and the minimum down payment is 3%. The lender was founded in 2003 in California, and it has, from its humble beginnings, grown to become a top lender in the US. New American Funding is present in 48 states and has over 200 branches.

Some of the loan options provided by the lender include FHA, USDA, and VA government-backed loans. Jumbo loans, refinance loans, interest-only loans, and purchase loans. They also provide individuals with access to community loans that may not be provided by non-bank lenders. It is rated as a top 30 National lender in the US and enjoys a large market share in the state of Texas. You can start the loan application process online or in person, but the lender employs a physical underwriting process as it enables them to reach underserved markets.

New American Funding Mortgage is rated A+ by the Better Business Bureau. This should put your mind at ease if you want to do business with this highly-rated lender. 

Quicken Loans is best suited for the borrower who embraces technology, who meets reasonable standards for credit score (620 – 740), and can qualify based on their income and ability to demonstrate down payment and reserve requirements for Quicken Loans’ programs. If you have low credit scores or unverifiable income, Quicken Loans is probably not where you would go for your financing. Otherwise, they are the industry gold standard.

Quicken Loans is a major nationwide lender with a variety of loan options that can meet almost any customer’s needs. Quicken Loans has an abundant and robust online presence. You apply from your phone, your iPad, any mobile device, as well as your computer and conduct the entire process online. There are many calculators and resources to help any borrower on their web site.

Quicken Loans does not have to boast about its Customer Service ratings (usually obtained by internal polling of customers) – it is a widely respected company by both consumers and major and minor ratings agencies (BBB.com, JD Powers & Associates, ConsumerAdvocate.org, etc.). Negative ratings can be found, but they are in the minority. 

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.

Mortgage Reviews Methodology

The Smart Investor’s selection of mortgage lenders for inclusion here was made based on our evaluation of the products and services that lenders offer to consumers who are actively shopping for the best mortgage. We also look at types of loans and what specific products are available. Finally, we look at the ability to get information online and to carry out online processes as well as customer service, rate information and complaints that have been filed.