Client
Announcements
From Fairway Wholesale
A Division of Fairway Independent Mortgage Corporation
New! Jumbo Product - Coming 7/15
JUMBOS ARE BACK! Available beginning July 15, 2020. Here are the highlights:
Fairway Guideline Training Opportunities
As a reminder, Fairway Wholesale Lending is excited to be offering live training opportunities scheduled for the 3rd Tuesday of every month for our valued clients. We will demonstrate the best way to locate and use Fairway guidelines, matrices and various resources that are available to you. Knowledge Owl (KO) is the system in which Fairway's program guidelines are housed and are accessible by logging into DRIVER.
Conventional Self-Employed Changes
As stated in this week’s Fairway Connection, effective with loans submitted to underwriting on and after June 8, 2020, the following requirements have been made for conventional loans. Both FNMA (in LL-2020-03) and FHLMC (in Bulletin 2020-19) have announced requirements for additional documentation to support the decision in the qualification process of self-employment.
Positive Refinance Changes
Fairway Wholesale Lending is pleased to now offer 45-day lock periods on refinance transactions effective today, June 5, 2020.
Positive Government Changes
Fairway Wholesale Lending is happy to announce we’ve updated our government guidelines effective immediately. These guidelines apply to loans currently in the pipeline.
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FHA and VA cash out refinance transactions available
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640 minimum credit score for all government transactions – purchase, rate/term refinance, cash out refinance and VA IRRRL
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30 day locks available at time of application; 15 day locks on all refinance transactions available at Approval milestone
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Removal of DTI restrictions – follow AUS feedback
Pricing Special Extended
We are extending our Pricing Special for Purchase transactions through June 30, 2020. Improve your price for loan amounts that meet the following criteria:
Positive Changes to Temporary COVID-19 Overlays
Dear Valued Clients –
Effective immediately, Fairway Wholesale Lending has removed the temporary COVID-19 policy related to Conventional Cash-Out Refinances and will begin accepting locks for Conventional Cash-out Refinance transactions. Along with the reinstatement of the Conventional Cash-out Refinance program, Fairway is also lowering the minimum FICO to 620 for BOTH Conventional Rate-term Refinance and Cash-out Refinance transactions.
DRIVER Enhancements
Dear Valued Clients –
Some enhancements have recently been made to the DRIVER portal allowing for an overall improved user experience.
- The Loan Estimate has been modified. These changes will eliminate the Broker Registration Form that was formerly required.
- For our Correspondent Lenders, we have added a “Correspondent Purchase” loan action. This will enable the uploading of closed loan packages, any suspense conditions, and providing online access to view funding information.
We have created Reference Material to guide you through the changes. Click here for the DRIVER 5.15 Enhancement Guide.
Positive Change to Refinance Locks
Fairway Wholesale Lending has removed the temporary COVID-19 policy related to refinance locks. Effective immediately, refinance transactions may be locked at any point and are no longer restricted to being in an APPROVED status.
COVID-19 Mortgage Forbearance
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:
Temporary Suspension of Cash-Out Refi Transactions
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.
VA - Termite Inspection
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:
Refinance FICO Update
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).
IRS - Borrower obtains Transcripts
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.
Temporary COVID-19 Policies – Refinance Only
In response to continued COVID-19 effects, Fairway will begin requiring 700 credit score on all refinance transactions effective Tuesday, 4/14/2020.
DU 10.3 Update & Appraisal Flexibility
As announced in Fannie Mae Release Notes dated April 6, 2020, during the weekend of April 11, 2020, Fannie Mae implemented the updates below to Desktop Underwriter® (DU®) Version 10.3.
Risk and Eligibility Assessment
COVID-19 CLARIFICATION of VVOE Requirements for Correspondent Transactions
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.
- REVISED! VVOE prior to closing is required 7 days prior to the Note Date (Can be performed by Fairway OR Correspondent Client)
- REVISED! A SECOND VVOE will be performed by Fairway within 24 hours prior to Fairway purchase of closed loan
NEW VVOE Requirements
Due to the COVID-19 virus, the policy on VVOEs will be temporarily adjusted as follows:
- REVISED! VVOE prior to closing is required 7 days prior to the Note Date
- REVISED! A SECOND VVOE will be required within 24 hours of disbursement
- Funding Authorizations will be required on ALL loans
Temporary Changes to Refinance Locks
Due to the continued effects of COVID-19, Fairway Wholesale Lending is temporarily changing our lock policy for refinance transactions.
Fairway Wholesale COVID-19 Updates
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.
GSE Appraisal & VOE Flexibilities
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.
Change to Jumbo Loan Programs
Dear Valued Clients,
Given the currently market volatility, Fairway Wholesale Lending is temporarily suspending new locks on all Jumbo loan programs.
Jumbo ARMS Suspended
Please be advised that effective immediately adjustable rate locks for Fairway Jumbo Select and Jumbo Choice (QM and Non QM) are suspended.
VA County Loan Limit
Please be advised that Fairway will now require a minimum FICO of 640 for all VA loans that exceed the county loan limit. This will be effective with loans locked on or after 02/10/2020.
Assisted Appraisal Processing Program
As a reminder of VA’s implementation of the Blue Water Navy Vietnam Veterans Act of 2019,VA has published Circular 26-19-31 to further clarify the Assisted Appraisal Processing Program (AAPP).
2020 VA Loan Limits
Dear Valued Clients –
The VA published Circular 26-19-33 to announce their 2020 VA Loan Limits. The 2020 effective county loan limits can be found on VA’s Website.
LO Compensation Changes
Dear Valued Clients –
Fairway Wholesale Lending allows its Broker Partners to make changes to their Lender Paid Compensation Agreement on a quarterly basis.
2020 License Renewals
Dear Valued Clients,
Fairway Wholesale Lending wants to remind all approved broker and correspondent clients that website user profiles must be updated with the 2020 NMLS licensing information.
USDA Technology Fee
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.
2020 FHA Loan Limits
Dear Valued Customers –
As announced in Mortgagee Letter 2019-19, the 2020 forward mortgage limits for calendar year 2020 are effective for FHA Case Numbers assigned on or after January 1, 2020.
VA Implements New Act
Dear Valued Clients –
VA announced in Circular 26-19-23 the implementation of the Blue Water Navy Vietnam Veterans Act of 2019, which was signed by the President on June 25, 2019. Provisions of the Act will apply to all loans closed on and after January 1, 2020.
2020 Conventional Loan Limits
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.
DRIVER Enhancements
We're excited to announce the following items to be included in Friday's release:
Lead Base Paint Requirements
Fairway Clarifies Lead Based Paint Requirements for All Agencies
To clarify how best to comply with the agency guidelines in regard to lead based paint, we have put together the following direction and placed it within the Fairway guidelines:
FHA Single-Unit Approval
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.
USDA Form 3555-21
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.
Closing Requirement on Refinance Transactions
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.
Speedy Turn Times on Conventional with MI
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.
Change in Settlement Agent Approval Process
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.
Great News! Rates As Low As 2.75%
Effective Friday, August 9, Fairway is offering rates as low as 2.75% on FHA and VA loans with 30 year terms.
Shorter Lock With Approval
In an effort to better serve you, effective Monday August 12, 2019, Fairway is allowing 15-day and 30-day lock periods on all refinance transactions that are in “Approved” status.
VA IRRRL Seasoning Update
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.
FHA Max CLTV Cash Out Refi
As stated in Mortgagee Letter 2019-11, dated August 1, 2019, the maximum LTV/CLTV for FHA Cash-Out Refinance will reduced to 80%. This will be effective with case numbers issued on and after September 1, 2019.
USDA Income Limits Change
The 2019 Income Limits for the Single Family Housing Guaranteed Loan Program were published on July 22, 2019, through a special Procedure Notice (PN).
Power of Attorney (POA)
Fairway would like to remind everyone of its Power of Attorney Policy.
VA IRRRL Policy
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.
Fairway Closed July 4th
The Fairway Offices will be CLOSED on Thursday, July 4th in observance of Independence Day. Offices will reopen on Friday, July 5th for normal business hours.
LO Compensation Changes
Fairway Wholesale Lending allows its Broker Partners to make changes to their Lender Paid Compensation Agreement on a quarterly basis.
45-Day Lock Refinance
In an effort to better serve you and your purchase business, effective Monday June 17, 2019, Fairway is requiring 45-day lock periods on all refinance transactions.
Fairway Closed Memorial Day
The Fairway Offices will be CLOSED on Monday, May 27th in observance of Memorial Day. Offices will reopen on Tuesday, May 28th for normal business hours.
VA Appraisal Fee Changes
VA announced updated appraisal fees for appraisal orders effective on or after 04/01/2019 for the Atlanta RLC, and Cleveland RLC , St. Paul RLC, and Phoenix RLC.
Extended Locks & Float Downs Now Offered
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.
Lock Policy Reminder
Loans must be in Approved status in order to lock for 15 days. Contact your Regional Account Manager should you have any questions related to this Client Announcement.
