What the Pennymac TPO rebranding means for the wholesale channel
The mortgage industry has had an amazing year in a row, and while 2022 still holds great opportunities for the industry, it also signals a linchpin for market participants. In recognition of the upcoming transitions, Pennymac is making changes to ensure 2022 lays the foundation for long-term value for its wholesale partners.
In particular, Pennymac is changing the name of its wholesale division from PennyMac Broker Direct to Pennymac TPO. To learn more about the intent behind the rebrand and Pennymac TPO’s plans for the future, HousingWire sat down with Senior Managing Director Kim Nichols to learn more.
HousingWire: Let’s move on to the name change. Why now and why Pennymac TPO?
Kim Nichols: Pennymac has a long history of success. Over the years we have become one of the most famous and respected players in the mortgage business and we want to use our success as a platform for the growth of our wholesale partners.
This is far more than a name change for the company. It is a cornerstone for our broker and our non-delegated partners. We are deepening our engagement on this channel to help them on their own journey of greatness. As Pennymac TPO, we will expand our base of size to include our partners, providing them with the resources they need to grow, but they want to grow.
HW: What resources can brokers and non-delegated lenders expect from Pennymac TPO in 2022?
KN: With POWER + we are investing massively in our technology. We have worked closely with our partners to understand what they need and have developed technology improvements that will be rolled out gradually over the course of 2022.
These new features will make the credit process faster, more efficient and more transparent and ultimately create a better experience for our broker partners and their customers. We are pushing these improvements to the broker segment first, and at a later stage additional services and capabilities will be introduced into the non-delegated correspondents segment.
HW: What else can you tell us about POWER +?
KN: We developed POWER + by really listening to our customers’ voices. We took two approaches. First, we had focus meetings with key partners and gathered detailed feedback from various users, including LOs, processors, and broker owners. In addition, we meticulously recorded customer feedback on challenges in the credit process. We also wanted to understand which aspects of our current technology and processes our partners love.
One thing that really impressed us is how much our partners value our employees. Having access to dedicated, knowledgeable team members at every step of the process has been a huge differentiator.
The culmination of all of this is our new POWER + technology. It’s not just technology that drives our partnerships. There are also people … people who communicate, people who care and who know their way around. People are +!
We have reduced their needs to three main areas: speed, efficiency and communication.
HW: Let’s zoom out. What, from a bird’s eye view, do you hope these changes will help your partners?
KN: It is our job to make our partners look good in the eyes of their customers and referral partners. Let’s talk about purchase transactions. The emotions and fears of buying a home are heightened in a market where the supply of apartments is very scarce.
If a buyer fails due to an emergency, they have several replacement offers behind them, and it can take several months before they can sign a deal on the next home.
As we zoom out, we need to think about how we can improve the experience as this is a reflection of our partners. What is helping this process? It’s speed, efficiency and communication at every step. Our technology, our workflow, and our people must all focus on these things.
HW: Can you discuss Pennymac’s commitment to service?
KN: Where the borrower is served matters. The quality of the loan processing directly reflects the broker or lender who granted that loan. It is for this reason that brokers and non-delegated partners have signed up with Pennymac. They know that after graduation we provide the same great service that our partners provided on the way to the graduation table.
We keep the service on all of our loans. We are one of the few top large lenders who invest permanently in our service and now serve over $ 500 billion.
Our partners appreciate that we keep our service. It gives them the peace of mind that Pennymac will take care of their customers once they close, and that borrowers won’t be exposed to the ability to process transfers and the administrative hassles that come with it – password reset, automatic payment, escrow reconciliation and general familiarity with a servicer portal etc.
In addition, with Pennymac-to-Pennymac refinances or purchases, we have the ability to conduct fiduciary transactions for their customers, which in many cases significantly reduces cash closings.
It’s about being great on every loan, for every client, every day in every part of the process through to completion and beyond.
We know what solid and sustainable growth looks and feels like and how we can extend it to our partners. However our partners want to grow, we want to help them set the course and give them the resources to make it happen.
Our partners have made us what we are. Now we want to return the favor. We can’t wait to join you on your personal journey of greatness.