The American Bankers Association, through its subsidiary, ABA Community Bank Mortgage LLC, announced today that it has selected PennyMac as its newest secondary market investor. ABA Community Bank Mortgage LLC owner banks may now sell agency-eligible loans on a servicing-released basis to PennyMac and access PennyMac’s full line of lending products.
“The alliance with PennyMac provides additional product and pricing power for our owner banks to better serve their customers and communities,” said John Schoemer, chairman of ABA Community Bank Mortgage LLC and EVP at Presidential Bank in Bethesda, Md. “PennyMac, through a demonstrated competitive pricing and fulfillment platform, will help our owner banks compete effectively in their markets.”
Community Bank Mortgage LLC is a unique and ABA-exclusive mortgage cooperative structure designed to leverage the collective bargaining power of risk-averse community banks that actively sell loans in the secondary market. The association and 72 member banks jointly own the LLC, and those institutions enjoy aggressive loan-sale executions through that ownership power. For more information about ABA Community Bank Mortgage, LLC, contact Debbie Whiteside.