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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:

  1. Borrower is current and has no missed payments.
    • For borrowers whose payments are current follow standard conventional guidelines.
  1. Reinstatement
    • If the borrower resolved missed payments through reinstatement (i.e. loan is now current), the borrower is eligible for a new mortgage loan.
      • If the reinstatement was completed after the application date, the source of funds must be documented in accordance with standard policy.
  1. Repayment Plan
    • The borrower must have resolved / completed the repayment plan; or
    • Have made at least 3 timely consecutive payments (whichever comes first) prior to close. The new loan can include the remaining payments under the repayment plan.
  1. Payment Deferral
    • The borrower must have made at least 3 timely consecutive payments following the effective date of the payment deferral agreement. The new loan can include the remaining payments of the deferred amount.
  1. Loan Modification
    • The borrower must have made at least 3 timely consecutive payments following the effective date of the Loan Modification Agreement. The new loan can be used to pay-off the modified mortgage.

Refer to the Fairway COVID-19 Mortgage Payment History and Forbearance Job Aid for additional guidance.

For more information on COVID-19 Temporary Guidance, see Fairway’s guidelines

 

Date: 05-20-2020