This Week's Highlights - Monday, November 9, 2020

  • Disaster Re-inspections to be Waived in Certain CA Zip Codes
  • Freddie Mac Selling Guide and LPA Messaging Updates
  • Lump Sum Seller Credits on CD
  • On-Boarding Correspondent/Broker DRIVER Training
  • Paying off 2nd on Conventional Loan
  • Ordering a VA and Conventional Appraisal
  • Important Adverse Market Fee Reminder
  • USDA and FHA Extend Temporary COVID Exceptions

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

Fairway Permitting Disaster Inspection Waivers in Certain CA Zip Codes
Fairway Wholesale Lending has been monitoring the California wildfires closely, and has lifted some of the reinspection requirements as many of the wildfires have been 100% contained.

The following list of zip codes must have a disaster inspection completed according to the Disaster Policy, or may be considered for an exception on a case-by-case basis depending on proximity to reported damage. Informal exception requests may be sent to the Ask Box for review and approval.  

NEW! San Diego: 91901, 91916 and 91935
Los Angeles: 90631, 91006, 91008, 91011, 91016, 91023, 91024, 91042, 91390, 91702, 91709, 91748, 91765, 92823, 93021, 93532, 93536, 93543, 93544, 93550, 93552, 93553 and 93563.

A disaster reinspection is no longer required in the balance of the zip codes in both LA and San Diego counties; however, the appraiser must comment on the appraisal that the property was not negatively impacted by the wildfires.  FWL will release additional counties / zip codes as needed.
Freddie Mac Selling Guide and LPA Messaging Updates
Freddie Mac announced updates effective immediately, unless otherwise noted below. Key updates are as follows:
  • Effective for loans on and after 01/04/2021, including loans in process, LPA resubmission tolerances for refinance transactions when the loan amount changes will be updating as follows:



  • Additionally, Freddie Mac made various revisions to their condo guidelines, which include updates to the ineligibility of condotels. 
  • Loan Product Advisor feedback messages are being updated in November based on client feedback and tool enhancements. Please refer to the updates here.
Refer to 2020-43 for more details.
Lump Sum Seller Credits on CD
An operational process development is almost complete for release to the Closing Team applying the Lump Sum Seller Credits on the final Closing Disclosure for certain loan instances. 
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, November 10 @ 2:00pm CST

DRIVER Training: Correspondent Lenders
Wednesday, November 11 @ 2:00pm CST

DRIVER Training: Brokers w/ FWL Preparing Disclosures
Thursday, November 12 @ 2:00pm CST

DRIVER Training: Initial CD and Closing Requests for Brokers
Friday, November 13 @ 11:00am CST

DRIVER Training: Initial CD and Closing Requests for Correspondent Lenders
Friday, November 13 @ 2:00pm CST

Q: On a Conforming Rate and Term refinance can a borrower payoff a non-purchase money 2nd?

A: No, both FNMA and FHLMC state that only subordinate liens used to purchase the property may be paid off and included in the new rate and term mortgage.


Q: Is it possible to order two appraisals, one VA and one conventional, simultaneously?

A: No. You can only order the appraisal for the loan program that the application is taken in. VA appraisals are ordered through WebLGY and appraisers are assigned by VA. If the loan flips to a conventional transaction, you will need to order a new conventional appraisal through your approved AMC, as applicable.


Important Adverse Market Fee Reminder
As a reminder, Fairway has been phasing the 50 bps adverse market fee as an LLPA for all FNMA and FHLMC refinances over the course of the past 45 days. 

Any loan that funds or is purchased after today, November 9th, 2020, will be subject to the 50 bps adverse market fee at the time of extension.

USDA and FHA Extends Temporary COVID Exceptions
USDA announced the extension of the temporary exceptions to appraisals and verbal verification of employment in relation to COVID-19 through 12/31/2020. 

FHA extended the policy for flexible alternatives for re-verifications of employment for cases closed on or prior to 10/31/2020 to cases closed on or prior to 12/31/2020. Additionally, the Desktop-Only appraisal option that was previously extended expired on 10/31/2020; however, the extension of Exterior-Only appraisals has been extended from 10/31/2020 to 12/31/2020.

Please refer to the USDA Bulletin and FHA ML for more details.

Steve Jacobson, CEO - "Practice the PAUSE. A reaction doesn't always have to be in words."