Pennymac TPO introduces new loan platform

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

The loan portal will speed up mortgage processing time by as much as 40%, thanks in part to built-in validation that ensures a loan application is accurate prior to submission, the California-based multichannel lender claims.

Features in the portal also include a custom fee screen where brokers can add and edit fees. Additionally, they have the option of using Pennymac’s default fees or fees aggregated from over 25,00 settlement service providers across the country, the lender said. 

In January, Pennymac rebranded its wholesale channel, changing its name from Pennymac Broker Direct to Pennymac TPO. The lender said that the previous name didn’t reflect Pennymac’s “growing focus and support” of emerging banker segments.

The roll-out of “Power+” is an extension of the lender’s rebranding efforts and its “commitment to wholesale and supporting 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 channel ever since. In the second quarter of 2022, originations in Pennymac’s broker direct channel totaled $2 billion, down from $2.5 billion the previous quarter. At the time, the lender said that despite margins being lower than they were in the prior quarter, the “channel remains highly competitive.” 

As mortgage interest rates have risen, one of the largest lenders in the segment, United Wholesale Mortgage, has touted an aggressive pricing strategy while at the same time, a number of lenders including LoanDepot, Amerisave, Mountain West Financial have exited the business.

David Spector, chief executive officer of Pennymac, said during the company’s second quarter earnings call that the lender remains “diligent in identifying and implementing additional efficiencies across the company” and committed to “making investments in transformational technology projects.” 

During the initial planning phase of the PennyMac platform, the lender had “focus sessions with key partners and extracted detailed feedback from various users, such as loan officers, processors and broker owners,” said Kim Nichols, senior managing director at Pennymac TPO in early January. 

“We also meticulously logged client feedback about challenges in the loan process. We boiled their needs down to three main focus areas: speed, efficiency and communication,” she said. 

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

On the borrower side, Power+ allows homebuyers to opt for a hybrid e-closing. With that option, borrowers only have to wet-sign a few critical documents in person.