The mortgage industry headed into 2022 after a strong showing in back-to-back years. Interest rates were at or near historical lows, home prices showed strong appreciation and market participants set volume and profitability records. 2022 still holds great opportunity for the industry but it also signals a pivot point.
Pennymac has long served as one of the mortgage industry’s leading partners. The company has shown steady growth since it was founded in 2008 and demonstrated profitability across varying market conditions, rising to become the nation’s top correspondent investor and the No. 6 wholesale lender. Pennymac has sustained success in the mortgage space and aims to help its partners build that same greatness on a platform that combines values, vision and execution to remain stable regardless of market changes.
New name, same values
Pennymac has changed the name of its wholesale division from PennyMac Broker Direct to Pennymac TPO. For Pennymac, the rebrand is more than a name change – it signals a deeper commitment to its wholesale partners and investment in the wholesale channel.
“Our rebrand to Pennymac TPO is a sign that we are increasing our investment in talent, technology, products and services – all designed to support our wholesale partners on their journey of success,” said Kim Nichols, Senior Managing Director at Pennymac.
Pennymac understands how important it is for its wholesale partners to have a solid and stable partner they can count on to support the needs of their business no matter what the market conditions are.
“We are invested in their success,” Nichols said.
In addition to the rebrand, Pennymac has also announced the debut of POWER+, its next-generation platform that will provide partners with even greater speed, control and communication throughout the loan process. These enhancements will be rolled out first in the broker channel with a later phase driving greater services and capabilities into the non-delegated correspondent segment.
The next generation technology is a culmination of extensive work with its partners, vendors, service providers (i.e., title and appraisal) and other industry experts.
As part of the development process, Pennymac held focus sessions with key partners and took detailed feedback from a variety of users, including loan officers, processors and broker owners. The company meticulously logged client feedback regarding challenges in the loan process and worked to eliminate pain points as well.
“We also wanted to understand what aspects of our current technology and process our partners love,” Nichols said.
The result is new features that will streamline the entire loan process, from loan creation to submission, clearing conditions and communication in credit review, and more control and speed throughout the process. There will be a live fee collaboration in the portal to ensure all information is real-time and accurate to avoid time wasted trying to coordinate multiple parties before a closing.
Additionally, POWER+ will provide live access to people who can deliver solutions and expertise right when Pennymac’s partners need them.
“Beyond a streamlined loan experience, what really stood out was how much our partners value direct access to our people at any step of the process,” Nichols said. “The new POWER+ is technology plus people. Technology powers our partnerships. Our people bring real-time communication, knowledge and passion.”
In addition to delivering speed, control and greater transparency, POWER+ aims to free up Pennymac’s partners to allow them to focus on delivering great service and growing their business with referral partners. The platform eliminates unnecessary tasks, routine tasks have been consolidated to minimize touch points, and steps that once took minutes will now take seconds, according to Nichols.
Pennymac knows that their partners are competing in a tight purchase market. Its goal is to free them up to be able to build their business rather than spend time processing loans.
“We know that technology, workflow and people can be the difference in brokers closing a loan or securing the next deal. The broker’s brand reputation is dependent on all parties having confidence and a great experience,” Nichols said. “POWER+ will set our brokers up for success so that they can focus on growing their business and enhancing their brand.”
Commitment to servicing
Where the borrower is serviced does matter. Quality of service is a direct reflection on the broker or non-delegated lender.
As one of the only wholesale lenders who retains all of its TPO servicing, many wholesale partners bring their customers to Pennymac for that very reason. They know that Pennymac will care for their clients well after closing.
As a result, the borrower won’t be subjected to the possibility of servicing transfers and the administrative burden and hassles that come along with it – resetting passwords, reestablishing auto-pay, escrow reconciliation and navigating a new servicer portal.
“Our clients are so relieved when they hear that we will retain servicing, since we are one of the few in the channel who will do so for the life of the loan,” Nichols said. “Plus, for Pennymac-to-Pennymac refinances or purchases, we have the ability to net escrows for their customers, significantly reducing cash-to-close in many cases.”
Partnering with Pennymac
Pennymac believes its job is to make its partners look great in the eyes of their customers and referral partners, and to support its business partners’ professional goals. As a leader in third party originations, both correspondent and wholesale, the company is committed to being a long-term partner for its clients throughout their professional journey.
Nichols added, “As one of the most prominent and highly respected players in the mortgage space, we’re uniquely positioned to help our partners achieve a new level of success with a superior client experience, consistent execution, great technology and access to some of the most talented and engaged professionals in the industry.”