This Week's Highlights - Tuesday, October 6, 2020

  • FEMA Disaster Area Declaration for FL
  • Change in Submission Policy – Removal of 1003 Requirement
  • Important! Adverse Market Fee Reminder
  • Tip: Correspondents Uploading Executed Closing Package
  • DRIVER Helpful Tips
  • On-Boarding Correspondent/Broker DRIVER Training
  • Owner Occupancy Affidavit
  • VA Funding Fee for Reservists/National Guard
  • Updated FEMA Disaster Area Declaration for CA
  • FHA Mortgage Forbearance Job Aid Released
  • USDA Advance Copy of Chapter 6
  • September 25th Technology Release
  • Jumbo Program Updates

Please Note: As a reminder, you must be logged into Knowledge Owl to access any links to KO referenced below.

FEMA Disaster Area Declaration for Florida
The following areas in Florida have been added as disaster areas due to Hurricane Sally. The disaster incident period declared 09/14/2020 and is ongoing.

  • Bay, Escambia, Okaloosa, Santa Rosa, and Walton Counties

Please Note: These are FEMA declarations and will affect all programs; therefore, we are implementing Fairway’s Disaster Area Appraisal and Re-Inspection requirements for both conventional and government loans. 

For a quick reference, refer to the newly created PDMDA Job Aid, which is a great go-to tool that will assist in determining what appraisal and re-inspection requirements are to be applied in certain disaster areas eligible for individual assistance for each agency.

Coming Soon! Change in Submission Policy – Removal of 1003 Requirement
In place of a physical LO signed 1003 required for every new loan submission, Fairway Wholesale Lending will be putting in place a broker attestation statement within DRIVER for the broker to acknowledge, confirming the accuracy of all loan data provided within the 1003 screens.  Fairway will proceed to disclose as applicable based upon the data entered into DRIVER from the Broker. 
Important! Adverse Market Fee Reminder
As a reminder, Fairway will phase in the application of the 50 bps adverse market fee as an LLPA for all FNMA and FHLMC refinances using the schedule below to comply with the new delivery date requirements:
  • 45-day locks beginning September 28, 2020
  • 30-day locks beginning October 12, 2020
  • 15-day locks beginning October 26, 2020 

Any loan that funds or is purchased after November 9th, 2020 will be subject to the 50 bps adverse market fee at the time of extension.  The adverse market fee does not apply to:

  • Loan Amounts <$125,000
  • Home Ready or Home Possible Mortgages
Helpful Tip: Correspondents Uploading Executed Closing Package
FWL has created a helpful Quick Reference Guide for the Correspondent Channel that provides instructions on how to properly upload closing documents via DRIVER. 

Important Note: Upload executed closing packages through the Correspondent Purchase Screen within DRIVER.  DO NOT upload closing packages through the View/Upload Documents screen or the Conditions screen.  This will help to avoid unnecessary delays for loan purchase.

DRIVER Helpful Tips
Having issues printing documents from DRIVER? Please refer to the quick tutorial on printing from DRIVER.

On-Boarding Correspondent/Broker DRIVER Training
On-Boarding DRIVER training is now available for both new and existing correspondent and broker accounts. Various options are available depending on channel type as well as disclosing preference.

Register below for this week's training sessions:

DRIVER Training: Brokers Preparing Own Disclosures
Tuesday, October 6 @ 2:00pm CST

DRIVER Training: Correspondent Lenders
Wednesday, October 7 @ 2:00pm CST

DRIVER Training: Brokers w/ FWL Preparing Disclosures
Thursday, October 8 @ 2:00pm CST

DRIVER Training: Initial CD and Closing Requests for Brokers
Friday, October 9 @ 11:00am CST

DRIVER Training: Initial CD and Closing Requests for Correspondent Lenders
Friday, October 9 @ 2:00pm CST

Q: I have a primary residence purchase loan where the Underwriter conditioned for an Owner Occupancy Affidavit. What does this mean?

A: Underwriting will condition for an Owner Occupancy Affidavit to be signed by the borrowers when property occupancy for the loan creates a high risk situation such as:

  • Borrower is retaining a current residence yet is purchasing another residence with the intent to owner occupy the new residence;
  • Borrower owns multiple residences and documentation discrepancies are present in the loan file regarding clarity as to which address is actually the borrower’s primary residence;
  • Borrower is purchasing a new residence which is close in location to the borrower’s existing residence and intent for occupancy is in question;
  • Any other situation where owner-occupancy is not 100% clear.

Q: What is the VA Funding Fee for Reservists and National Guard?

A: With the implementation of the Blue Water Navy Vietnam Act of 2019, VA is charging a flat funding fee for all veterans (regular military, reserves, and national guard).


Updated FEMA Disaster Area Declaration for California
The following areas in California have been updated as disaster areas due to wildfires. The disaster incident period declared 08/14/2020 and is ongoing.

  • Santa Clara County
Please Note: These are FEMA declarations and will affect all programs.

FWL Releases FHA Mortgage Forbearance Job Aid
FWL released the FHA Mortgage Forbearance Job Aid to assist in digesting and applying the updated FHA forbearance guidelines that went into effect in September. The job aid can also be found in Knowledge Owl.

USDA Advance Copy of Chapter 6
USDA issued an advance copy of Chapter 6 of the HB 3555 for review and will be available for a minimum of 30 days.  A Procedure Notice (PN) will be issued once the chapter has been published. Refer to Chapter 6 for details.
September 25th Technology Release 
FWL's Technology Team has released a Hot Fix to address known system issues, which include:
  • Removing any Pricing Adjustments with a value of “0” from showing when pricing a loan.
  • Allowing MI to be financed and price accordingly on government loans based on the accurate Total Loan Amount.
Jumbo Program Updates
  • Appraisal Reviews
    • Effective for all Jumbo loans dated on and after 09/24/2020, an appraisal review is no longer required.
    • Any Jumbo loan currently sent in for appraisal review must proceed following the previous guidance, as provided in the Jumbo Non-Conforming Matrix.
  • Tax Return Requirements

Additionally, as a friendly reminder, tax transcripts are not permitted in lieu of tax returns on any Jumbo loan. Tax returns must be provided on all loans. No exceptions.