Pennymac TPO second to announce higher conforming loan limits

Pennymac TPO has raised its conforming loan limits, becoming the second major competitor to do so months ahead of the government's official announcement. 

The company's wholesale arm pushed the amount for a single-unit conventional loan from $766,500 to $802,650, effective for new locks beginning Monday, it said. Two-unit conforming loans can now reach over $1 million, and 4-unit mortgages in the lower 48 states can be as high as $1.543.900.

The numbers, including even higher thresholds for loans in Alaska and Hawaii, are similar to the figures Rocket Pro TPO announced last Friday. Pennymac in recent years has been among the first players in the industry to raise their conforming limits. Rocket claims it's been the first to make such an announcement for three years in a row. 

The Federal Financial Housing Agency regularly announces 2025 conforming loan limits in late November. A representative for Pennymac didn't return a request for comment Monday. 

The Southern California-based Pennymac has the funds to keep larger loans on its books until the new year, with massive correspondent and servicing operations. It reported a greater net profit in the second quarter versus the prior period, and at the end of June reported a servicing portfolio spanning $632.7 billion in unpaid principal balance. 

The lender counted 4,274 approved brokers in the second quarter for a 3.7% broker direct market share. Brokers generated $4.3 billion in loan origination volume for Pennymac TPO in the second quarter, outperforming its consumer direct operations. 

No other lenders, including wholesale leader United Wholesale Mortgage, have formally announced higher conforming loan limits.