This Week's Highlights - Tuesday, May 19, 2020

  • Welcome to the Fairway Connection
  • HELOC Second Mortgage Product Available
  • VA Clarifies Valuation Practices During COVID-19
  • Fairway Driver 3.0 Production Release
  • Onboarding Correspondent Driver Training Available
  • Accessing FWL's Guidelines
  • Missing Appliances
  • FEMA Disaster Area Declarations
  • Loan Product Advisor Messaging
  • Reminder! Refinance Locks

Welcome to the Fairway Connection!
Welcome to the Fairway Connection created specifically for our Fairway Wholesale Lending clients. The intent of the Connection is to keep our clients connected and apprised of the most important information in one place and is not exclusive to just one topic or department. 

The functionality is simple as well as mobile friendly. The information is separated out by main sections which are similar to the summaries located at the top of the email. With just a simple click, you can return to the top of your email by clicking on "Back to Top" within each main section.

The Connection will be emailed to our clients weekly on Tuesday afternoons. Please keep an eye out in your email box for the Fairway Connection going forward.

HELOC Second Mortgage Product Available
FWL has reinstated the HELOC Second Mortgage Product effective immediately and is available for borrowers that have obtained first mortgage financing through FWL.

This product is an interest-only home equity line of credit with a maximum CLTV/HCLTV of 95%. For full program guidelines, refer to the Second Mortgage Product Matrix available in Knowledge Owl. 

Note: You must be logged into Driver to access guidelines.

VA Clarifies Valuation Practices During COVID-19
VA has clarified their temporary appraisal requirements when ordering one of the appraisal options during COVID-19. Desktop and Exterior-only appraisals should not be requested if the financed loan amount (ie. unpaid principal loan amount) will be more than the allowable limitations for either option. 

Additionally, VA has provided further guidance when a water test is required. 

  • Refinance of VA Loans: 
    • Well water testing is waived where the home is already encumbered by a VA loan.
  • Purchases & Refinances of Non-VA Loans: 
    • In areas where testing is suspended, the Veteran will need to sign an acknowledgment stating they are aware that testing cannot be done.
      • A test must be completed within 180 days of the Note date and applicable VA escrow requirements apply.
    • Prior to closing, the Veteran must acknowledge they accept responsibility to install a filtration system at their own cost to correct the issue should the water test fail.
Fairway Driver 3.0 Production Release
We are LIVE in production with our 5/15 release in Driver. A summary of the updates are provided below:
Onboarding Correspondent Driver Training Available!
Onboarding Driver training is available for correspondents. Individual or scheduled training sessions are available. If you are interested, please reach out to your AE to get signed up today!

Q. How do I access Fairway Wholesale Lending's guidelines? 

A. Guidelines are available in Knowledge Owl and can be accessed by logging into Driver and selecting on the image as shown below.

If you are trying to access the guidelines through a hyperlink in an email that is provided to you by someone in FWL, you will need to be logged into Driver and have KO open as shown below, or click the link twice (once to be authenticated and another to go to the link). 


Q.  What is the expectation of appraisers when the subject has missing or no appliances on a Fannie Mae loan?​

A.  It is common for appliances to be considered personal property and not given any contributory value if they are not permanently attached to a property’s structure. However, it is at the appraiser’s discretion to determine if the appliances are considered personal property or permanently attached to or built-in to the property structure. The appraiser should determine which appliances are common in the subject’s market area and, if any appliances are missing, analyze the impact on value and/or marketability.

FEMA Disaster Area Declarations
The following are recently declared FEMA disaster areas and will affect all loan programs.

The following areas in Mississippi have been added due to severe storms, tornadoes, straight-line winds, and flooding. The disaster incident period declared 04/12/2020 and is currently ongoing.

  • Clarke, Grenada, Jasper, Lawrence, Panola, and Walthall Counties
South Carolina
The following areas in South Carolina have been added due to severe storms, tornadoes, and straight-line winds. The disaster incident period declared 04/12/2020 with an end date of 04/13/2020.
  • Barnwell and Berkeley Counties
Loan Product Advisor Messaging
Freddie Mac has announced updates to LPA feedback messages:
  • Effective 05/18: A new message has been added to remind users that COVID-19 specific requirements supercede any LPA feedback messaging returned.
  • Effective 07/24: Messaging will be updated to provide clarity in determining if a condo loan that may be eligible for automated collateral evaluation (ACE) is relieved of project-related representations and warranties.
Reminder! Refinance Locks
As a friendly reminder, refinance transactions cannot be locked until the loan has been approved. For additional clarification, please reach out to your AE. 
Note: FWL has temporarily suspended cash-out refinance transactions. For more details on temporary guidelines due to COVID-19, please refer to the FWL Overlay QRG.

Steve Jacobson, CEO - "We are at our best when WE serve others."