Announcement - New Principal Curtailment Policy

Effective for loans purchased 5/1/2023 and later, sellers will incur a penalty if a loan is paid down more than 30% of the Unpaid Principal Balance* within 180 days of the loan being purchased. The penalty shall be calculated based on following schedule:

• Fannie Mae and Freddie Mac Loans: 150bps * cumulative principal paydown amount
• FHA/VA/USDA Loans: 200bps * cumulative principal paydown amount
• All other Loans: 100bps * cumulative principal paydown amount

*Note: Measurement timeframe excludes the purchase date. Cumulative paydown amount is measured against the unpaid principal balance at the time of purchase. 
Principal Curtailment Policy stated above is subject to change at PHH's discretion. This policy will be updated in the PHH Mortgage Correspondent Lending Seller Guide.