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


  • Competitive Rates – PennyMac Mortgage does have competitive rates that line up with any large lender, investor, or broker.
  • Online Based –This being an online based company, if you are busy person and don’t have time to call and/or meet up with someone but still need the job done, being an online based company, this is perfect for you.
  • Stability –Even though PennyMac has been around for 10 years, it doesn’t look like they are going anywhere anytime soon. If anything, they are getting larger every day with the number of customers they gain whether they are happy or not with the service.


  • Limited Customer Service –You are only able to speak with people online instead of on the phone. Even though PennyMac offers customer service over the phone, the probability of you getting someone on the line or someone on the line that is actually helpful to your needs, is slim to none.
  • Not many Physical Locations – PennyMac Mortgage only operates in 14 locations around the US and has no updates on whether they will expand or not since they are an internet-based company.
  • Terrible Turn Times-PennyMac Mortgage’s loan processing turn times are extremely long. If you have a deadline that is within 30 days, don’t count on this lender being able to make this happen. Average turn times are normally from 45 to 60 days.
  • Not Enough Information on Website –Their loan processing section on their website doesn’t go into full detail of what is exactly needed to move your loan process along faster. In which case, you will either have to google the situation or you will have to rely on whether their operations team will actually contact you back in a timely manner and actually have the answers you seek for your particular loan.

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.