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Pennymac TPO Introduces New Lending Platform

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Pennymac Financial Services is putting more muscle behind its wholesale operation, Pennymac TPO, announcing on Thursday the launch of a new brokerage platform dubbed “POWER+”.

The lending portal will speed up mortgage processing times by up to 40%, thanks in part to built-in validation that ensures a loan application is accurate before it is submitted, claims the California-based multi-channel lender.

Portal features also include a custom fees screen where brokers can add and edit fees. Additionally, they have the option of using Pennymac’s default fees or aggregated fees from more than 25,000 settlement service providers across the country, the lender said.

In January, Pennymac renamed its wholesale channel, changing its name from Pennymac Broker Direct to Pennymac TPO. The lender said the previous name did not reflect Pennymac’s “growing focus and support” for emerging banking segments.

The rollout of “Power+” is an extension of the lender’s rebranding efforts and its “commitment to supporting wholesalers and brokers in an immense way,” the company said in a statement.

Pennymac entered the wholesale space in 2018 and has been aiming to grow the chain ever since. In the second quarterIn 2022, originations in Pennymac’s direct broker channel totaled $2 billion, up from $2.5 billion in the prior quarter. At the time, the lender said that despite lower margins than the previous quarter, the “channel remains very competitive”.

As mortgage interest rates rose, one of the largest lenders in the segment, United Wholesale Mortgage, announced a aggressive pricing strategy while at the same time a number of lenders including LoanDeposit, Amerisave, West Mountain Financial left the company.

Pennymac CEO David Spector said during the company’s second quarter earnings calculationl that the lender remains “diligent in identifying and implementing additional efficiencies across the business” and commits to “making investments in transformational technology projects”.

During the initial planning phase of the PennyMac platform, the lender had “discussion sessions with key partners and pulled in-depth feedback from various users, such as loan officers, processors, and landlords. of brokers,” said Kim Nichols, senior managing director of Pennymac TPO in early January.

“We also meticulously documented customer feedback on challenges in the loan process. We narrowed down their needs to three main areas: speed, efficiency and communication,” she said.

The platform also enables real-time communication with all parties, eliminating email exchanges and speeding up the closing process.

On the borrower side, Power+ allows home buyers to opt for a hybrid electronic fence. With this option, borrowers only have to sign a few critical documents in person.