Pennymac Tpo Launches Non-qm Product Suite

PennyMac Financial Services, Inc. said on Tuesday that it has launched a suite of non-qualified mortgage (non-QM) products within its third-party origination division, aimed to help lending partners serve borrowers with complex financial profiles.

“Pennymac TPO’s newest offerings give our partners tools to help self-employed, entrepreneurs and business owners participate in homeownership,” said Kim Nichols, chief TPO production officer at PennyMac. “As the non-QM space continues to grow, we’re excited to expand into this area and continue the significant growth of our TPO channel.”

The product suite includes several loan options intended to provide more flexible qualification standards.

Among the offerings is a debt service coverage ratio (DSCR) loan designed for real estate investors, which qualifies borrowers based on a property’s cash flow rather than personal income.

The lineup also includes a full documentation option for borrowers with strong credit but nontraditional income sources, as well as bank statement programs that calculates income based on deposit averages and expense factors instead of tax returns.

Other options include an asset qualifier or asset depletion program that allows borrowers to qualify using verified liquid assets, often aimed at retirees or high-net-worth borrowers. The suite also includes additional non-QM programs such as written verification of employment (WVOE) and 1099 income options.

“Our non-QM products help partners compete in a challenging market by offering disciplined, well-structured alternatives to traditional financing,” said Nick Pabarcus, managing director and non-QM sales leader at PennyMac. “These solutions are built to recognize the diverse ways modern entrepreneurs build wealth, providing flexible qualification paths without compromising on loan performance.”

PennyMac said the non-QM products are now available to approved third-party origination partners.