PennyMac Financial Services Launches New Non-QM Mortgage Products to Expand Diversification and Offer Flexibility for Non-Traditional Borrowers.

PennyMac Financial Services launches a new suite of non-qualified mortgage (non-QM) products to provide more flexible financing options for non-traditional borrowers. The products include unique mortgage types such as Debt Service Coverage Ratio (DSCR) and A tier loans. PennyMac will retain servicing rights for all non-QM products, ensuring continuity and quality of service. The initial rollout is limited to delegated correspondent sellers, with availability through Pennymac TPO starting in Q4 2025.

PennyMac Financial Services, Inc. (PFSI) has announced the launch of a new suite of non-qualified mortgage (non-QM) products on September 22. The new offerings aim to provide more flexible financing options for non-traditional borrowers, including self-employed professionals, entrepreneurs, and real estate investors [1][2][3].

The new suite includes four product types: Debt Service Coverage Ratio (DSCR) loans, along with A+, A, and A- credit grades, distinguished by a borrower’s housing payment history. DSCR loans are designed for real estate investors, qualifying based on the property’s cash flow rather than the borrower’s personal income. The A, A+, and A- grades cater to creditworthy borrowers with non-traditional income profiles [1][2].

PennyMac’s non-QM products offer lenders flexibility in both borrower qualification and loan structure. Income documentation options include Full Documentation, Streamlined (12 months), Bank Statement, Asset Depletion, Asset Qualifier, 1099, and Verbal Verification of Employment [1][2]. Eligible borrowers include first-time homebuyers, first-time investors, and non-permanent residents, among others [1][2].

The initial rollout of these products will be for delegated correspondent sellers on a best-effort basis. Pennymac intends to retain servicing on all non-QM products, ensuring continuity and quality of service. Availability through Pennymac’s third-party origination (TPO) channel is expected to begin in the fourth quarter of 2025 [1][2].

To provide a deeper dive into the new offerings, PennyMac is hosting a live webinar featuring Alex Boand, Chief Correspondent Production Officer, and Nick Pabarcus, Managing Director and Non-QM Sales Leader, on September 10 at 2 p.m. ET [1][2].

References
[1] https://www.housingwire.com/articles/pennymac-correspondent-non-qm-mortgage-offerings/
[2] https://www.marketscreener.com/news/pennymac-correspondent-group-expands-product-suite-with-launch-of-non-qm-offerings-ce7d59dad08eff2d
[3] https://finance.yahoo.com/news/pennymac-correspondent-group-expands-product-120000367.html