This Week's Highlights - Tuesday, June 23, 2020

  • Updated Verbal VOE Requirements
  • Government Forbearance Requirements
  • Newly Updated FWL Overlay QRG
  • NEW! Home Possible Income and Property Eligibility Tool
  • FWL Offices Closed July 3rd
  • Enter to Win Apple Pro Airpods! Complete a 3 Minute Survey Today!
  • Authorized User Accounts - FHA
  • COE Expiration and Validity
  • Fannie Mae HomeReady 2020 Income Limits
Updated Verbal VOE Requirements
Great news! We are pleased to announce that going forward, only one (1) verbal VOE is required for wage earners 3 business days prior to funding for all loan types.  As a reminder, a verbal VOE is required for self-employed borrowers 7 calendar days prior to funding.
  • Electronic VOEs
    • Can use the date the EVOE is pulled only if the information as of date is within 10 business days of funding.
    • If the information as of date is outside the 10 business days of funding, but within 30 calendar days, use the EVOE in conjunction with the Borrower Acknowledgement of Employment sent from their work email.
    • If the information as of date is outside the 30 calendar days, it cannot be used.
Government Forbearance Requirements
Effective immediately, including for loans in process, government forbearance guidelines have been updated.  Please refer to the COVID-19 Temporary Guidance topic in Knowledge Owl for complete details. 
As a reminder, you must be logged into Knowledge Owl to access guidelines.

Newly Updated FWL Overlay QRG
The FWL Overlay QRG, which is a quick reference guide for our valued clients, has been updated to reflect some recent changes. As a reminder, the QRG is available on the home page of Knowledge Owl.
NEW! Home Possible Income and Property Eligibility Tool
Freddie Mac has announced that the Home Possible Income and Property Eligibility Tool will be updated on July 12, 2020 with the new 2020 area median income (AMI) limits recently issued by the Federal Housing Finance Agency (FHFA).  Approximately 87% of counties will experience AMI increases. 
  • If the AMI has declined and the loan was submitted to LPA prior to 7/12, the higher of 2019 AMI limits will be applied.
  • If the AMI has increased and the loan was submitted to LPA prior to 7/12, the higher 2020 AMI limits will be applied.
FWL Offices Closed July 3rd 
All Fairway Wholesale Lending offices will be closed on Friday, July 3rd, in observance of the 4th of July holiday. Please confirm your title companies' holiday hours and plan your closings accordingly, as follows:
  • Friday 7/3 is included in the right of rescission, whereas, Saturday 7/4 will be excluded due to the holiday
  • Any locks expiring on Friday 7/3 will be rolled to Monday 7/6
More information will be sent out via FWL Client Announcement in the upcoming days. Stay tuned!
Enter to Win Apple Pro Airpods! Complete a 3 Minute Survey Today!
We want to hear from you! Take our quick 3 minute DRIVER survey for a chance to win personalized Apple Airpods Pro. 
Click here to take the survey.
Q.  Does FHA permit the use of a credit supplement to remove an Authorized User account so it does not have to be included in the qualifying DTI?

A.  No. Authorized user accounts must be included in the Borrower’s DTI, unless all documented payments have been made from the primary account holder in the previous 12 months. 

Q.  How old can a COE be and still be considered valid?

A.  Certificates of Eligibility do not expire, but investors do require an updated Certificate of Eligibility. The most up to date Certificate of Eligibility is required and will assist with the verification of the current Veteran eligibility and amount of entitlement. Generally, if your COE is aged greater than 120 days, you should obtain an updated COE.

FWL Releases New Conventional S/E Job Aid
As a reminder, Fairway Wholesale Lending released the COVID-19 Self-Employed Income Analysis Job Aid, which assists in the additional documentation requirements required to support the decision in the qualification process of self-employment income required by both FNMA/FHLMC.

Fannie Mae HomeReady 2020 Income Limits
Fannie Mae's 2020 HomeReady income limits increased and were implemented in DU on 06/20/2020. As a reminder, effective dates are as follows:
  • DU will apply the 2020 limits to new DU loan casefiles created on or after 06/20/2020.
  • DU loan casefiles created prior to 06/20/2020 will continue to use the 2019 limits.
  • The income limits are available within the Lookup Tool.
Monthly Knowledge Owl Training Available
Fairway Wholesale Lending offers live Knowledge Owl training available the 3rd Tuesday of every month. Knowledge Owl is the system in which our program guidelines are housed and maintained. The training provides the ins and outs of navigating Knowledge Owl and opens up the opportunity for questions to be asked.
Register here for next month's opportunity!

Steve Jacobson, CEO - "Nobody said chasing greatness would be easy. Each day is a new opportunity to help, support and to serve."