The increase is from $200 million to $400 million.
According to a filing with the Securities & Exchange Commission, under the terms of the Loan Repo Facility, PennyMac may sell, and later repurchase, newly originated mortgage loans.
PennyMac uses the fund newly originated mortgage loans that are purchased from correspondent lenders by PMC and held for sale and/or securitization.
PennyMac will guarantee repayment. The REIT is expanding it correspondent lending lines across the board.