This Week's Highlights - Tuesday, June 30, 2020

  • USDA Publishes Updated FAQs
  • Important! Fairway Process for 2020 vs 2019 HomeReady Income Limits
  • Fannie Mae - Updates Manufactured Housing Titling Job Aid
  • FWL Offices Closed July 3rd
  • FHA Case Number Assignment
  • Reinstating a Mortgage with Missed Payments
  • Updated COVID-19 Requirements
  • Newly Updated FWL Overlay QRG
  • Home Possible Income and Property Eligibility Tool
  • Monthly Knowledge Owl Training Available
USDA Publishes Updated FAQs
USDA has released additional FAQs related to the origination and servicing of USDA Single Family Housing Guaranteed loans, which have been added to the previously posted FAQs related to COVID-19. 
Important! Fairway Process for 2020 vs 2019 HomeReady Income Limits
As a reminder, Fannie Mae's 2020 HomeReady income limits increased and were implemented in DU on 06/20/2020.  When DU casefiles have been run for a HomeReady loan with 2019 income limits prior to 06/20/2020 and the borrower would like to qualify with the 2020 income limits after 06/20/2020, you may proceed with the following process:
  • Remove the current DU Casefile ID  
  • Run DU with a new Casefile ID to obtain the 2020 limits.
Please Note: The HomeReady loan must receive a DU Approve/Eligible. If the new Casefile ID results in an Approve/Ineligible or Refer with Caution, the loan remains as ineligible and is not permitted to return to the original Casefile ID.

Fannie Mae Updates Manufactured Housing Titling Job Aid
Fannie Mae has added all 50 States to their Titling Manufactured Homes as Real Property job aid (Previously this job aid addressed AZ, CA, CO, FL, MI, NV, NC, OR, TX and WA.) Such titling is a critical step in making a mortgage on a manufactured home eligible for sale to Fannie Mae.
  • Fannie Mae created the job aid to assist with mortgage financing of manufactured homes after their initial retail sale to a consumer. In some instances, the information contained may also relate to mortgage financing after the initial retail sale to a consumer or in other contexts.
  • Once the Certificate of Title to a manufactured home is surrendered or if the titling process may be avoided, lenders should then record the lien on real property by way of a mortgage, including a description of the manufactured home in the mortgage.
  • The legal description should include the make, model, Vehicle Identification Number (VIN), and the language, “which is permanently affixed and attached to the land and is part of the real property.”
  • For all states, closing instructions are to affirm that the title company or closing agent will take all actions necessary to assure that the manufactured home has:
    • Been permanently affixed to the land,
    • That the lien is recorded, and
    • No Certificate of Title to the manufactured home issued, or that the Certificate of Title has canceled (if one existed).
  • To comply with the requirements in the Fannie Mae Selling Guide, order a Manufactured Housing Endorsement (ALTA 7 or local equivalent) to the title policy and issue as affirmative coverage that the manufactured housing unit(s) situated on the insured land is included in the policy definition of “Land.”

FWL Offices Closed July 3rd 
All Fairway Wholesale Lending offices will be closed on Friday, July 3rd, in observance of Independence Day. Offices will reopen on Monday, July 6th for normal business hours. 

  • 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

 From the Fairway team to yours, we hope you have a wonderful July 4th weekend!

Q: How do I know if a property already has a valid FHA Case Number assigned to it?

A: Prior to assigning a new FHA Case Number assignment, a Case Query must be pulled with the Borrower(s) SSN, as well as the subject property address, to ensure there are no other active FHA Case Numbers.

  • If there is not an active FHA Case Number associated with the borrower or property, a new FHA Case Number Assignment may be requested.
  • If there is an active FHA Case Number assignment for the subject property, refer to the FHAC - Case Transfers topic in Knowledge Owl. Note: As a reminder, you must be logged into Knowledge Owl to access guidelines.
  • If there is already a valid FHA appraisal (120 days without an update) associated with the current active FHA Case Number assignment, the appraisal must also be transferred.

As a reminder, all FHA appraisals stay with the property, not a Borrower or Lender, and must be transferred with the FHA Case Number.

Q.  What eligible sources of funds may be used to reinstate a mortgage loan with missed payments?

A.  Any source of funds eligible for down payment and closing costs may be used for reinstatement, provided it is documented in accordance with the applicable asset guidelines.

Note: If a lump sum payment was made prior to the loan application date for the new transaction, no sourcing of funds is required.

Updated COVID-19 Requirements
Last week, it was announced that 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. Additionally, the government forbearance guidelines were updated. Please refer to the COVID-19 Temporary Guidance page for complete details. Note: As a reminder, you must be logged into Knowledge Owl to access guidelines.

For additional clarification, refer to the newly updated COVID-19 Appraisal and VOE FAQs Job Aid.

Newly Updated FWL Overlay QRG
The FWL Overlay QRG, which is a quick reference guide available for our valued clients, was updated to reflect some recent changes. As a reminder, the QRG is available on the home page of Knowledge Owl.

Home Possible Income and Property Eligibility Tool
Freddie Mac announced that the Home Possible Income and Property Eligibility Tool will be updated on 7/12/2020 with the new 2020 area median income (AMI) limits.  

  • 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.

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!

July 21st @ 12 PM CST

Steve Jacobson, CEO - "Be intentional about improving your relationships. Maturity is not saying everything you think. Today - will you think - but resist the urge to say?"