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Mortgage Lender Reviews
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On This Page
On This Page
- At a glance
- Pennymac Overview
- Pros and cons of Pennymac
- How Bankrate scored Pennymac
- How to apply for a mortgage with Pennymac
- Pennymac customer ratings and reviews
At a glance
NMLS: 35953
Editor's take
Pennymac is a well-known, national mortgage lender with a convenient online application process, among other benefits. In light of higher mortgage rates, the lender launched a home equity loan product that allows homeowners to take a lump sum from their equity. It consistently receives below-average customer satisfaction ratings, however.
Bankrate Score
Bankrate scores are objectively determined by our editorial team. Our scoring formula weighs several factors consumers should consider when choosing financial products and services.
4.0
Rating: 4 stars out of 5
Bankrate Score
Customer Rating
Star ranking and total number reflects the lifetime customer reviews received while this lender has been an advertiser on Bankrate.
To help serve you with relevant information, the customer reviews shown are limited to only those that this advertiser has received during the past 12 months.
3.5
Rating: 3.54 stars out of 5
13 ratings
Loans offered
Conventional, jumbo, FHA, VA, USDA, refinancing and more
Min. credit score required
620 for conventional loans, 580 for FHA loans, 620 for VA loans
Nationwide availability
All U.S. states
Min. down payment
3% for conventional loans, 3.5% for FHA loans, none for VA loans and USDA loans
Recent customer reviews
The customer reviews posted on Bankrate.com ("Bankrate") are individual, subjective opinions of reviewers, and not of Bankrate. Bankrate does not endorse any of the opinions expressed by reviewers or any responses to reviews. Bankrate cannot guarantee or verify the accuracy of the opinions shared by individual reviewers, and reserves the right to reject or remove any review, at any time, for any reason at Bankrate’s sole discretion, including but not limited to those that Bankrate deems inappropriate, fraudulent, invalid, irrelevant, or otherwise outside the parameters of the Bankrate Review Guidelines, thePrivacy Policy, or the Terms of Use.
Rating: 1 stars out of 5
Awful customer service
I have been a Pennymac customer since Oct 2021. In that time they tried to over charge me a payment which cost me a $4000 credit line with another bank who say it at the time as a late payment. Pennymac has since apologized, but the credit was lost.Lately I have paid for a BPO to eliminate the PMI...
Happy J.
Jacksonville fl(Aug 27, 2024)
Rating: 1 stars out of 5
Worst mortgage company EVER
My VA loan was sold off to Pennymac. Staff are rude, unhelpful, shady. I want all home buyers to not use this company. They should be investigated for fraudulent practices. Meeting with my banker next weekRUN people run away from this company!!
Cherie M.
Montana(Aug 23, 2024)
Read 13 customer reviews for Pennymac
Pennymac overview
Pennymac is a publicly traded direct mortgage lender and servicer offering a range of loan options, including low-down payment loans and refinancing. Although there are sales office locations, you can only apply for a loan with this lender online or by phone. Once preapproved, you’ll be matched with a loan officer who serves as your point of contact through the underwriting and closing process, which currently averages 36 days for purchases. The lender also features special offers periodically, and can help borrowers facing hardship or those who are ineligible to refinance with a loan modification.
Pros and cons of Pennymac
Pros
Large lender with national presence
$1,000 off closing costs if preapproved (not applicable to jumbo loans or refinancing)
Concierge real estate services with up to $5,000 in rewards
Cons
No branch locations
Below-average customer service score
How Bankrate scored Pennymac
- Affordability: Pennymac’s mortgage rates are in line with Bankrate’s averages, so you might be able to find more competitive options elsewhere. Like many other lenders, it also charges an origination fee.
- Availability: Pennymac is licensed to lend to borrowers in every state and offers a deep bench of loan products for a variety of needs.
- Borrower experience: Pennymac consistently ranks among the most active lenders, but J.D. Power ranked it below average among large mortgage originators.
Affordability: 5.2/10
Pennymac’s loan offers were comparable to Bankrate’s average rates at the time of this review. The lender displays daily APRs on its website, where you can also supply your contact information to get a custom quote. Its lender fees include an origination fee, rate-lock fee and other closing costs.
Availability: 10/10
Pennymac is a national mortgage lender that does business with borrowers in all 50 states. Its loan offerings include conventional and government-backed loans (FHA, VA and USDA), as well as home equity loans and refinances. The lender requires a minimum credit score of 620 for a conventional loan or VA loan, but as low as 580 for an FHA loan.
Borrower experience: 8.5/10
Pennymac has been in operation since 2008 and since become one of the 15 largest mortgage lenders in the U.S., funding $1 trillion in loans for more than 4 million borrowers. It is an A+ accredited business with the Better Business Bureau, with 4.4 out of five stars based on more than 1,900 customer reviews. On Trustpilot, the lender has a rating of 2.3 out of five stars, considered “Poor.” Pennymac ranked below average in J.D. Power’s customer satisfaction study in 2021, 2022 and 2023. Using the lender’s m.a.c portal, you can get prequalified or preapproved, complete your purchase or refinance application, upload documents and check on the status of your loan. You can also e-sign documents and disclosures through this system.
How to apply for a mortgage with Pennymac
You can apply for a mortgage with Pennymac online or by phone at 888-870-6229. Here are some tips to prepare for the process:
- Check your credit report. It’s important to check your credit report before your lender does, in case there are errors that could impact not only whether you get preapproved but also your ability to get the best mortgage rate. Knowing your credit score also helps you decide what type of loan to apply for. If your score is in the very low 600s, for instance, an FHA mortgage might be best for you, as its standards are more lenient than those for conventional loans.
- Gather personal and financial documents. With any lender, you must supply documentation about your income, assets and debts. This includes pay stubs and W-2s and account and loan statements.
- Provide details about the property. You’ll need to provide the address of the home and submit to an appraisal. (If you’re refinancing, you might or might not need an appraisal.)
Refinancing with Pennymac
Pennymac offers both rate-and-term and cash-out refinancing options.
Pennymac customer ratings and reviews
NMLS: 35953
3.5
Rating: 3.54 stars out of 5
13 ratings
Star ranking and total number reflects the lifetime customer reviews received while this lender has been an advertiser on Bankrate. To help serve you with relevant information, the customer reviews shown below are limited to only those that this advertiser has received during the past 12 months.
This lender has 13 recent reviews.
Knowledge
Rating: 3.7 stars out of 5
Level of service
Rating: 3.5 stars out of 5
Professionalism
Rating: 3.6 stars out of 5
Responsiveness
Rating: 3.4 stars out of 5
5 stars
4 stars
3 stars
2 stars
1 star
62%
0%
0%
8%
31%
62% of customers would recommend this lender.
of13 reviews
The consumer reviews posted on Bankrate.com ("Bankrate") are individual, subjective opinions of reviewers, and not of Bankrate. Bankrate does not endorse any of the opinions expressed by reviewers or any responses to reviews.
Bankrate cannot guarantee or verify the accuracy of the opinions shared by individual reviewers, and reserves the right to reject or remove any review, at any time, for any reason at Bankrate’s sole discretion, including but not limited to those that Bankrate deems inappropriate, fraudulent, invalid, irrelevant, or otherwise outside the parameters of the Bankrate Review Guidelines, the Privacy Policy, or the Terms of Use.
To help serve you with relevant information, the consumer reviews shown below are limited to only those that this advertiser has received during the past 12 months.
Knowledge
Level of service
Professionalism
Responsiveness
Rates and terms of loan honored?
Closed mortgage with this lender?
Closed on time?
Would you recommend this lender?
Knowledge
Level of service
Professionalism
Responsiveness
Rates and terms of loan honored?
Closed mortgage with this lender?
Closed on time?
Would you recommend this lender?
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