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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.

Recent events in the financial markets have created a lot of uncertainty in our industry. Fairway Wholesale remains steadfast in our commitment to serving the mortgage broker community during this difficult time. While nearly all of our employees are working remotely, our team is here to support you in any way we can. Providing a “best in class” experience has always been our calling card and you can continue to expect that when sending your business to Fairway Wholesale.

In response to the disruption COVID-19 is having on our country and the specific challenges it presents the mortgage industry, Fairway Wholesale will be making the following TEMPORARY changes: 

FHA, VA, and USDA overlays (effective immediately)

  • 660 minimum credit score
  • Maximum 45% Debt-to-income (DTI) ratio

Verbal Verification of Employment (VVOE) (effective immediately)

With the rising unemployment numbers, confirming borrowers’ employment at the time of Fairway funding is a critical piece to mitigate risk and early defaults. Fairway Wholesale is updating its VVOE requirements as follows –

  • Pre-Closing VVOE to be performed within 3 calendar days of closing
  • Pre-Funding VVOE performed by Fairway on all transactions

NOTE – Fairway will perform a pre-funding VVOE on all correspondent transactions during the purchasing audit.

Fairway Wholesale has created a VVOE Job Aide to assist our team through the process of performing a VVOE with minimal disruption to the closing. Please include a VVOE Job Aide in the submission of your credit package.

Agency temporary changes (effective immediately)

Below are additional updates and “best practices” that will assist you in getting your loans to closing as we all adjust to this new normal.

eClosing

  • Wholesale Closing Teams are readily available to close most* of our brokered wholesale transactions using the eClose hybrid platform – which provides electronic closing documents to the borrower for review & execution, making for significantly reduced execution time with title company on required wet signed documents 

*eClosing not available for loans closing in the name of a Trust or using a POA
 

IRS Offices Closed

  • 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.               

Borrowers to go to http://www.irs.gov/individuals/get-transcript

IRS Tax Deadline Extended

  • The President’s issued an emergency declaration allowing individual and other non-corporate tax fliers to defer up to $1 million of federal income tax from April 15th to July 15th. Our current guidance still applies, but has been adjusted for the new filing date of July 15th. After July 15th, the borrower will have to provide evidence of extension. If the Borrower has not filed by July 15th or has an extension, we would qualify on 2018 and 2017 returns, transcripts would be need, including a ‘no record return’ for the 2019 tax year. If the borrower needs 2019 income to qualify, the return has to be filed, and transcripts obtained if an amount is owed. In this case, our Tax Obligation policy is still in effect.

New Loan Submission:

  • Disclosures – Please be sure to include the correct version of the Loan Estimate (purchase vs refinance) and an accurate SSPL form.
  • Loan File delivery requirements – Please submit your credit file within 5 business days of your lock.
  • Please include all required credit, income and asset documentation including:
    • AUS and credit report (released to Fairway if using DO)
    • Current FHA loan information for FHA streamlines
    • Copy of Note and COE for VA IRRRLs

Incomplete submissions will not be submitted into underwriting and may delay your closing.

Loan Conditions/Resubmissions:

  • For efficiency, all conditions should be uploaded in DRIVER. Emailing documents should be avoided as much as possible.
  • Once you have collected all the conditions and uploaded them into DRIVER, you must click on the “Ready to Review” button. This sends a notification to your CRS that conditions have been submitted so they can review and push over to the underwriter.

Pipeline/Lock Management

  • With the market volatility, we understand that loans and/or locks that were active just days ago, may have fallen out. Please let us know as soon as you are aware a loan or lock is no longer active by emailing This email address is being protected from spambots. You need JavaScript enabled to view it..

Reminder: Refinance locks require a minimum lock term of 60 days unless the loan is in an approved or greater status.

TPO Webcenter to DRIVER conversion

  • Effective with all new loans and/or locks beginning on Monday, April 13th must be created within the new website, DRIVER. If you have not yet been trained on the new system, please contact your Account Executive. 

Turnaround Times

  • With the recent drop in rates, we are experiencing longer than normal underwriting turntimes. We are prioritizing purchase transactions to ensure closing dates are met. You can access our current turntimes by accessing the resource page in DRIVER.
  • Due to the high volume of lock issues, Fairway's Lock Desk is also experiencing longer than normal response times. If you have an urgent lock issue, please contact your Account Executive.

Industry Updates

  • You can find MBA-specific updates here. Separately, the MBA resource page contains a great deal of information from the health/disease control agencies, the GSEs and government housing agencies, and federal and state financial regulators. 

We greatly value our partnership and look forward to working together for years to come. We are all in this together. If you have any questions or concerns, please feel free to contact your Fairway Wholesale Lending representative. 

  Fairway Wholesale Lending appreciates your
continued business and values your relationship!

 

03-27-20