Additionally, the government pricing special will expire 12/31/20.
From Fairway Wholesale
A Division of Fairway Independent Mortgage Corporation
Jumbo Expansion | Client Announcement 2021-03-22
Fannie and Freddie are implementing changes to Second Home and Investment properties to manage to the 7% limit, as announced by the Treasury/FHFB in January.
Based on these changes, all Second Home/Investment will now have a 50 bps LLPA effective with today's pricing.
The industry is in the process of reacting and adjusting to these changes, so this is a fluid and evolving situation.
You can read the full lender letter here: https://singlefamily.fanniemae.com/media/25286/display.
Second Home & Investment Properties Eligibility | Client Announcement 2021-03-15
Fairway Wholesale Lending is excited to announce the removal of current COVID VVOE Policies for correspondent transactions. Effective immediately, Fairway is eliminating the additional post close, pre-purchase VVOE for Correspondent transactions.
The updated Fairway Correspondent Policy requires a VVOE to be performed within 3 days prior to closing and subject to Fairway's normal QC audits.
Correspondent VVOE Policy Relaxed | Client Announcement 2021-03-10
Important TX & OK FEMA Disaster Declaration Updates + VA Certification Forms
The following areas in Texas & Oklahoma have been added as disaster areas due to Winter Storms. Please note, as this is a FEMA declaration it will affect all programs.
Fairway Wholesale Lending will accept borrower certifications instead of requiring an inspection under the following conditions:
Please use this Disaster Borrower Certification Form.
Other updates in regards to Fairway's Disaster Area Appraisal and Re-Inspection implementation:
This disaster is different than other natural disasters, the impact may not be seen outside the home at all, but the inside may have significant damage, so communication is key. It starts with communication between you and your borrower and/or property owner (via the agents) that the property is located in a county that has been named triggering an additional level of due diligence.
This expanded program at Fairway Wholesale Lending now features loan-to-value ratios up to 80%, minimum qualifying credit score of 720, up to 43% debt-to-income ratio, and loan amounts up to $3 million.
"In today's challenging market, we are proud to offer this nationwide program for our partners to extend a viable solution for their clients who seek to buy or refinance using the Jumbo loan option," said Al Hecklinski, SVP Fairway Wholesale Lending.
*Additional restrictions apply to FTHB. Refer to product guidelines for requirements.
**Product eligibility may vary based on occupancy, LTV, and minimum FICO.
For full details about our Jumbo Home Loan Program contact us today!
Did you know that we now have a Auto Rate Lock Extension functionality in Fairway’s Driver Portal for conventional and government fixed rate products. With this enhancement, physical lock confirmations will still be delivered manually following the extension request through DRIVER.
Please note, you cannot use this functionality if the loan is in CTC or if a COC is pending.
Effective for loan applications on and after January 19, 2021 individuals classified under the Deferred Action for Childhood Arrivals (DACA) program with the U.S. Citizenship & Immigration Service (USCIS) are eligible to apply for an FHA mortgage provided the following is documented in the file:
As previously announced by the Agencies, the newly updated 2021 loan limits are effective as of January 1st.
The new 2021 general and high balance conventional loan limits are currently available for all conventional loans and can be found on FHFA’s Website.
VA will align with the FHFA’s 2021 county loan limits when calculating the maximum loan amount for loans closed on and after January 1st. As a reminder, these loan limits only apply to Vet/Non-Vet Joint Loans and VA loans where the Veteran does not have full entitlement available. These county loan limits can be found on VA’s Website.
FHA’s 2021 Nationwide Forward Mortgage Limits are effective for case numbers assigned on and after 01/01/2021. Mortgage limits for individual counties can be found on HUD’s Website. Loans with Case Number Assignments dated prior to January 1st may be eligible in certain circumstances.
Fairway Wholesale Lending is accepting locks effective immediately for all loans with 2021 loan limits that meet eligibility requirements. As a reminder, product changes on locked loans from a Jumbo program to an Agency product under the new 2021 loan limits are not permitted.
We are pleased to announce that we will be making the pricing specials offered in 2020 for Conventional loans permanent effective January 1, 2021. These positive adjustments will now be shown as an LLPA on our rate sheet.
Additionally, the government pricing special will expire 12/31/20.
Pricing Special Updates | Client Announcement 2020-12-31
In observance of the upcoming holidays, Fairway Wholesale Lending’s business hours are as follows:
Reminder – National Holidays cannot to be included in business day counts.
Please be sure to communicate with your Regional Account Manager or Client Relationship Specialist (CRS) should you have any special needs during the holidays – as Fairway Wholesale Lending is committed to maintaining response times and meeting closing dates.
The Fairway Wholesale Lending Team would like to wish you, your staff, and your family a very merry holiday season. We appreciate all the wonderful friendships and relationships that are the lifeline of our business and look forward to the opportunity to be a part of your success in 2021.
We are pleased to announce the upcoming release of the Secured Overnight Financing Rate (SOFR) indexed ARM effective Wednesday, 12/23/2020.
With the retirement of the LIBOR-indexed ARM, FHLMC has transitioned to the SOFR-indexed ARM. Conforming and Super Conforming 5/6, 7/6 and 10/6 Month ARMs will be available on the eligible loan product offerings as follows:
Lock Extension functionality is now available in Fairway’s Driver Portal for conventional and government fixed rate products. With this enhancement, physical lock confirmations will still be delivered manually following the extension request through DRIVER. Watch for our January release where you will see automated, instant lock confirmations!
The Federal Housing Administration (FHA) announced yesterday the agency's new schedule of loan limits for calendar year 2021 for its Single Family Title II forward and Home Equity Conversion (reverse) Mortgage insurance programs.The new loan limits are effective for FHA case numbers assigned on or after January 1, 2021.
In high-cost areas of the country, FHA’s loan limit ceiling will increase to $822,375 from $765,600. FHA will also increase its floor to $356,362 from $331,760. Additionally, the FHA-insured Home Equity Conversion Mortgage (HECM) maximum claim amount (HECM limits) for reverse mortgages will increase to $822,375 from $765,600.
Dear Valued Clients,
Thank you for the business you’ve sent to us this month. In order to insure smooth closings and fundings, Fairway would like to remind you of the following important dates:
We encourage you to submit your CD request upon initial loan approval and work with your CRS to firm up closing dates.
Fairway Wholesale Lending is excited to announce that we have partnered with Mercury Network to offer a new and improved Appraisal Ordering Platform inside of DRIVER!
This new release will provide all our clients a standardized appraisal ordering experience all in one place. In addition to the new platform, we are expanding our approved AMC list by adding 4 additional AMC’s.
We are excited to announce the latest enhancements to the DRIVER portal effective today!
*** Helpful tip *** When first importing initial 3.2, an Estimated Closing Date must be selected as a future date. Ability to re-import future 3.2 files will be unsuccessful if this initial date is invalid and would require assistance from Help Desk before proceeding to re-import another 3.2.
Dear Valued Clients –
Some enhancements have recently been made to the DRIVER portal allowing for an overall improved user experience.
We have created Reference Material to guide you through the changes. Click here for the DRIVER 5.15 Enhancement Guide.
Dear Valued Clients –
Due to the continued effects of COVID-19, Fairway has implemented guidance for customers that are or were in a COVID19/CARES Act related forbearance plan. This guidance applies to FNMA and FHLMC only at this time. Currently, there are no changes on government loan programs.
Effective 05/19/2020, the following guidance applies to all mortgage loans the borrower is obligated on, and all conventional transaction types. The reason for the borrower forbearance request, as well as any hardship, must be documented as overcome and not likely to recur. Any mortgage loan that has been, or is in forbearance will be analyzed as follows:
Due to the continued changes and challenges to the mortgage industry caused by COVID-19, effective Monday, May 4, 2020, Fairway Wholesale Lending is TEMPORARILY suspending Cash-Out Refinance Transaction for all loan types.
Fairway will honor the locked pipeline of Cash-Out Refinance transaction and allow loans that have been delivered to Fairway Wholesale Lending for underwriting to be locked once the loan obtains the underwriting APPROVAL.
Due to the rapidly changing environment to the mortgage lending industry caused by COVID-19, VA in Circular 26-20-13, has provided updated guidance and instruction for valuation and appraising for all VA home loan purposes.
Below is updated guidance for termite inspections for VA purchase and cash-out refinance transactions:
Effective today, Fairway Wholesale Lending will allow refinance transactions to be locked at a minimum FICO of 680 for all loan programs. Loans must still be in the APPROVED status.
Fairway will continue to apply other temporary restrictions on refinance transactions (30 day lock period and Approved status).
Due to the state and local shelter in place orders, the IRS has announced temporary suspension of IVES work. Effective immediately, IRS is not accepting tax transcript requests from lenders.
Fairway will accept transcripts obtained by the Borrower(s) on an Exception Only basis. Please work with your underwriter for an exception. Borrower(s) can obtain their own Tax Transcripts directly online from the IRS website.
Dear Valued Correspondent Clients –
Wednesday's (04/08/2020) COVID-19 VVOE Client Announcement did not address Fairway Wholesale Lending’s updated policy on VVOEs relative to Correspondent transactions. This Client Announcement is to communicate the temporary COVID-19 VVOE requirements on Correspondent transactions.
Due to the COVID-19 virus, the policy on VVOEs will be temporarily adjusted as follows:
Due to the continued effects of COVID-19, Fairway Wholesale Lending is temporarily changing our lock policy for refinance transactions.
At Fairway Wholesale Lending, the health and well-being of our customers, teammates, business partners and communities is our top priority. We understand this is a very difficult time for everyone and our thoughts and prayers are with those who may be affected by the virus.
Dear Valued Clients,
The GSEs have announced temporary flexibilities regarding appraisal and verbal verification of employment issues. These are effective immediately for all applications in process and will remain in place with applications received on or before May 17, 2020.
Dear Valued Clients –
On January 1, 2020, USDA Single Family Housing Guaranteed Loan Program will begin assessing a $25.00 technology fee from lenders on each loan that was submitted through the Guaranteed Underwriting System (“GUS”). Specifically, any file submitted via GUS that is issued Form RD.
Effective today, December 3, 2019 Fairway Wholesale Lending will begin accepting locks through the FWL website (www.fairwaywholesalelending.com) for the 2020 increased Conventional Loan Amounts up to $510,400 and increased FNMA / FHLMC High Balance loan limits.
FHA announced in FHA INFO 19-41 revisions to the Condominium Project Approval Requirements. Effective with case numbers assigned on and after 10/15/19, FHA will insure mortgages on Condominium Units approved in accordance with the standards outlined below for Site Condominiums.
Please be advised that on October 4, 2019, USDA released a new version of the Form 3555-21. Beginning November 1, 2019, Fairway will require the new form for all loans being submitted for underwriting. For loans that are currently in Underwriting, but have not yet been sent to USDA for conditional commitment, Fairway will require that the new form be completed and signed by all parties. The Underwriting Team will be conditioning for the new form, as required.
In an effort to continue prioritizing your purchase business, Fairway Wholesale Lending will begin enforcing the 48 hours window from CTC to closing date on all refinance transactions. This enforcement will go into effect Monday, August 26, 2019.
Fairway Wholesale Lending is pleased to announce the addition of contract underwriting services made available for eligible conventional loans with mortgage insurance.
To make it easy on you, Fairway will handle all interactions with the contract underwriting teams. Conventional loans that meet specific requirements will be identified at the time of file submission.
Please be advised that on July 15, 2019, Fairway Wholesale Lending made a change to its due diligence performed for closing professionals. For this process, Fairway has retained Closepin, an independent third party risk evaluation firm to conduct due diligence reviews.
Ginnie Mae has announced that it is revising the seasoning requirements in Chapter 24, Part 2 §(A)(3)(d)(i) to ensure that the requisite seasoning period is computed by reference to the first payment due date on each covered loan rather than by reference to the date on which the first payment is made.
Fairway has confirmed with VA that the recoupment cost requirement must be met on ALL VA IRRRLs in order to be eligible for a VA IRRRL loan. There is no exception for this requirement under any circumstances. Whenever the recoupment costs calculation evidences that a Borrower cannot recoup the costs of the new IRRRL within 36 months, the Borrower becomes ineligible for a VA IRRRL and must look at completing a regular full documentation refinance loan.
Please be advised that Fairway is now offering EXTENDED LOCKS and RATE FLOAT DOWNS!
The Extended Lock Program is offered under the Fannie Mae, Freddie Mac, and Ginnie Mae direct products for new construction loans only. It allows borrowers to lock an interest rate for periods of 120 or 180 days, with a float down option.