This Week's Highlights - Tuesday, July 21, 2020

  • Clarification of Forbearance Mortgage Payment History
  • Agency LPMI Rate Card Pricing
  • Jumbo Program Released
  • Reminder! Tax Day Last Week
  • Locking Error Alerts in DRIVER
  • Clearing Fraudguard Participant Variances
  • Conventional Appraisal Waivers
  • FEMA Disaster Area Declaration for Utah and Michigan
  • USDA Releases Advanced Copy of Chapter 15
Clarification of Forbearance Mortgage Payment History
Fairway Wholesale Lending has updated the forbearance guidelines to clarify agency policies, which are effective immediately:
  • All agencies (Except VA – see the VA section below for details)
    • The forbearance / loss mitigation agreement is required on all loans in forbearance to determine which option/guidance applies. The credit report will report payment history accurately up until the month of the CARES forbearance. Payments made from the agreement date to the current payment due date (as required per the agreement and then after) will require one of the following:
      • Payment history directly from the servicer 
      • Bank statements reflecting the mortgage payments
      • Credit supplement showing dates due / paid.  Must be specific in the comments as the CARES Act does not permit servicers to report late payments during a CARES Act forbearance.
        • Vendor Services has advised that there may be significantly delays using this method. In addition increases the costs to the borrower (while the previous two methods are free).
  • FHA
    • FHA will permit CARES Act forbearance provided the borrower continued to make payments while in forbearance.  Missed payments are not permitted.  FHA has advised they will be releasing guidance for borrowers who have missed payments in the future.
  • USDA
    • CARES Act forbearance is permitted provided the borrower continued to make payments while in forbearance. Missed payments are not permitted. 
  • VA
    • Missed mortgage payments are not considered late while in a CARES Act forbearance, and will not be considered as negative when analyzing Veteran credit. Therefore, we will not be required to document payments made or missed during the CARES Act forbearance. We will document the payment history before and after the date on the forbearance agreement (which in most cases will report to the credit bureau). If the mortgage loan in question will not be reinstated and will remain open, the payment amount that will be due must be documented and considered in the Veteran DTI.  If a payment will be due prior to the close of the new mortgage, it must be documented as paid.
Agency LPMI Rate Card Pricing
Fairway Wholesale Lending has received notification from all MI providers that they have revised the LPMI rate card pricing, which has resulted in a slightly worsened price. Fairway has implemented NEW rate card pricing effective with all locks on or after 7/20/20.

Jumbo Program Released
As a reminder, Fairway Wholesale Lending released a new Jumbo Product effective on 07/15/2020. Key highlights are:
  • Purchase & Rate/Term Refinance Options
  • Primary Residences & Second Homes
  • $1,500,000 Max Loan Amount
  • Up to 80% LTV
  • Min 720 FICO
Program guidelines are available in each applicable topic located under the Conventional Guidelines in KO. Also available is the Jumbo-Non-Conforming Matrix

Note: As a reminder, you must be logged into KO to access guidelines.

Reminder! Tax Day Last Week
As you are aware, tax day was last week on 7/15. Fairway Wholesale Lending will require either an extension or the 2019 taxes for all loans in process. 
Additionally, the IRS IVES service is operational again and is working through a significant backlog.  Be advised that as we are able to obtain transcripts, the standard policy for tax transcripts is now effective (including the exception process as needed).  Please order your transcripts as early as possible to avoid delays. 

Please refer to the
 Tax Obligation Job Aid to determine when taxes are considered delinquent and documentation requirements for taxes owed.
Locking Error Alerts in DRIVER
Reports indicate numerous inquiries from the Help Desk in response to lock error alerts while in DRIVER. As a reminder, this alert notification is received by the user when attempting to price/lock a loan outside of the required locking hours.
If you receive the error below, please wait until the next day's pricing becomes available to lock your loan.

If you have any questions, please contact the Help Desk.

Q: There is a loan participant alert listed on my FraudGuard. Can I clear this variance?

A: Yes. The individual running Fraudguard may clear most of the participant variances, if you are comfortable in doing so. Fairway Wholesale Lending's Job Aid will assist with clearing the participant variances, and it will also advise when the variance is unable to be cleared by the user and must be cleared by FWL. 


Q: I lost my Appraisal Waiver on my file when I re-ran my AUS.  The qualifying guidelines did not change.  How do I get it back? 

A: Unfortunately, you may not get it back.  Every time you run LPA or DU, the systems check for updated property valuation.  If they find updated information, you may lose your waiver.  It is important that the AUS findings are reviewed with every run to ensure the waiver remains. 

FEMA Disaster Area Declaration for Utah and Michigan
Effective immediately, FWL is implementing Fairway’s Disaster Area Appraisal and Re-Inspection requirements for both conventional and government loans. Note: As a reminder, you must be logged into Knowledge Owl to access guidelines.
The following areas in Utah have been added as a disaster area due to earthquake and aftershocks. The disaster incident period declared 03/18/2020 with an end date of 04/17/2020.
  • Davis and Salt Lake Counties

The following areas in Michigan have been added as a disaster area due to severe storms and flooding. The disaster incident period declared 05/16/2020 with an end date of 05/22/2020.

  • Arenac, Gladwin, Iosco, Midland and Saginaw Counties

Please Note: These are FEMA declarations and affect all loan programs.

USDA Releases Advanced Copy of Chapter 15
USDA has released an advanced copy of Chapter 15 of their handbook. The update does not include any changes to their current guidelines; however, USDA continues to eliminate duplicate information throughout their handbook. Any applicable information will be notated within FWL's guidelines in Knowledge Owl. 

Refer to the Chapter 15 advanced copy for full details.

Steve Jacobson, CEO - "Be the solution - not the problem."