After closing payment information

Upon the sale and servicing transfer of your mortgage loan, Fairway is unable to subsequently change your new servicer. Your new servicer controls the activities and decisions supporting your mortgage loan. With written authorization (as per your new servicer’s requirements), Fairway may be an advocate for you if requested. Even if your servicing transfers, your relationship is important to each of us at Fairway.

Private mortgage insurance (PMI) is required on Conventional mortgage loans that originate with a loan to value (LTV) ratio of 80% or more. If the down payment at the time of the origination is less than 20% of the original mortgage loan amount, PMI must be included in the escrow portion of the monthly payment.

Based on your loan type and other investor requirements, you may be eligible to request PMI be removed prior to its automatic termination date.

You can request PMI be removed when your loan-to-value ratio (LTV) reaches 80%. A written request must be submitted to your current servicer for the loan to be reviewed and the conditions must meet all applicable requirements for approval.

PMI will automatically be dropped when the LTV reaches 78% based on the original term and amortization of the mortgage loan.

PMI removal request must be submitted to your new servicer once your loan transfers.  PMI removal requests cannot be processed until your mortgage loan transfers to your new servicer.

For more information, please contact our servicing department at servicing@fairwaymc.com

PMI Removal

The ability to remove PMI is governed by federal law and investor requirements. An investor is the party who owns your mortgage loan. Examples of the top investors for conventional loans are Fannie Mae (Federal National Mortgage Association) and Freddie Mac (Federal Home Loan Mortgage Corporation). Decisions and requirements may vary from servicer to servicer based on processes and interpretations. Your current servicer performs this evaluation and the processing of the request.

Fannie Mae - View Guidelines, Click Here

Freddie Mac - View Guidelines, Click Here

Decisions and requirements may vary from servicer to servicer based on processes and interpretations. Your current servicer performs this evaluation and the processing of the request.

A recast is the process of paying a large principal payment on your loan and re-amortizing the payments over the remaining term of the mortgage. This does not shorten the term or change the interest rate like a refinance, but it reduces the amount of the principal and interest portion of the monthly payment over the remaining life of your loan. This process is most commonly associated with the sale of an original home, investment home or second home.

Example – When buying and financing a new home, the new mortgage may originate before the sale of the previously owned property occurs. When the previously owned property sells, some customers wish to pay those sale proceeds toward the unpaid principal balance of their new mortgage loan.

Conventional Fannie Mae and Freddie Mac loan types are eligible to be recast.

FHA, USDA and VA loan types are not eligible to be recast.

General Recast Guidelines

• Written request is required
• A minimum amount (typically $10,000.00 or 10% of the unpaid principal balance) may be required
• A recast fee may be assessed, and this varies by servicer
• Servicers may limit the number of recasts that may be performed during the life of the loan
• No prior modifications to the loan
• Loans cannot be delinquent on payments or in an active bankruptcy status
• Interest-only loan types are not eligible
• Adjustable rate mortgage (ARM) loans must be reviewed for a Recast no later than six-months before the first scheduled interest rate change
• A recast cannot be performed during the Fairway servicing period – the request must be processed by the new servicer
• Customers may have a waiting before becoming eligible to apply for a recast – this waiting period varies by servicer
• A recast is a formal loan modification requiring documents to be produced, mailed, signed by customers and returned to the servicer

Please view this helpful video for more information about a recast:

‍Decisions and requirements may vary from servicer to servicer based on processes and interpretations.

The process of removing PMI once a recast is complete does not occur automatically.

This is a separate request and process that is handled by your new servicer.

Depending on the loan type, the amount paid toward the unpaid principal balance, and the original appraisal amount, loans may qualify to have PMI removed after a recast is complete.

Loans must meet investor guidelines for PMI deletion including loan-to-value ratios and payment history requirements.

Decisions and requirements may vary from servicer to servicer based on processes and interpretations.

An escrow account is an account that receives a portion of your monthly mortgage payment that covers the yearly costs of:

• Taxes
• Homeowners Insurance
• Mortgage Insurance
• And other escrowed items, as applicable

The monthly escrow payment amount equals 1/12 of the total of your taxes, homeowners insurance, and mortgage insurance, if applicable. Depending on the location and state of your mortgage property, there are additional factors in the calculation of your escrow payment.

The monthly escrow amount is added to the principal and interest portion of your payment to make up your total monthly mortgage amount. Escrow amounts may change from year to year based on your tax and insurance amounts.

Some states allow mortgage servicers to maintain a cushion -- or an additional amount of funds -- to help offset a large shortage on the escrow balance should tax amounts and/or insurance premiums increase significantly. Cushion amounts may be no more than 1/6 of the total escrow charges for the year, which means no more than two months’ worth of monthly escrow collection may be maintained in the escrow account above and beyond amounts required to pay the bills for escrowed items when they come due.

Escrow accounts are required for the life of the loan for FHA and VA loans. Conventional loan types may qualify for escrow deletion if specific investor requirements are met.

In some instances, escrow accounts may be removed from the mortgage loan. These have to be reviewed on a case-by-case basis dependent upon investor and agency requirements.  A written request is typically required.

Some city and county tax agencies send copies of bills to the property owner, even if taxes are included in your escrow account. If you are concerned your taxes have not been paid timely or would like to forward the bill to Fairway to ensure it is paid, please email us at servicing@fairwaymc.com or call 1-800-201-7544.  If your servicing has transferred, please contact your new servicer.

Fairway will send a transfer notification to your insurance provider with the name of the new servicer, the transfer effective date and the mortgagee clause for the new servicer.  It is recommended you contact your insurance provider upon receipt of your Notice of Transfer to ensure all records are up-to-date and accurately reflect your new servicer’s information as provided by your new servicer.

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Please do not change insurance companies/carriers until after your loan transfers to your new servicer!

Your new servicer may not receive key details about a new insurance policy or provider timely due to transfer activity.

Delays or missed premium payments may result in policy cancellation.

Contact your new servicer after your loan transfer effective date to obtain details and requirements if you wish to change insurance providers.

When your loan transfers, it may take a few weeks for all documents and information to be updated. Please reach out to your current servicer if you receive a notice that your insurance lapsed and your loan is escrowed.

Please call Customer Experience at 1-800-201-7544 or email servicing@fairwaymc.com for more information and instructions.

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It is important to contact your current servicer directly if you change your insurance carrier.

A 1098 Mortgage Interest statement is required if an amount of $600.00 or greater is paid toward mortgage interest. Fairway is required to generate and mail these statements no later than January 31st each year on loans that meet this requirement.

As some loans transfer to a new servicer as of the first payment due, Fairway may not generate a 1098 Mortgage Interest statement on every loan we originate.

Please be advised a separate 1098 Mortgage Interest statement will be mailed, if applicable, by each mortgage servicer who serviced your loan during the previous calendar year.

The eligibility and dollar amount of a VA Funding Fee refund is determined by the VA.  Any VA Funding Fee refunded will be applied toward the unpaid principal balance on your loan.  Please contact your VA office for details on this process.

We hope that you are safe and understand this may be a difficult time. Please know we are here to support you in any way that we can.

Fairway has a dedicated toll-free number and a dedicated email center.

Disaster Assistance Hotline: 877-651-2770 - our representatives will answer your call Monday through Friday, 8:30am – 5:00pm Central Time.

Email: disasterhelp@fairwaymc.com

If your property has been damaged by Natural Disaster...

Next steps include reaching out to your Homeowner’s Insurance Company or your Secondary Insurance Company (this may include policies such as flood, and earthquake).

By contacting us at disasterhelp@fairwaymc.com or at the above FIMC Disaster Assistance Hotline, we can assist you with your homeowner’s insurance company contact information and policy information as well as providing assistance if you have difficulty making your mortgage payment.

If the servicing of your mortgage loan has been transferred, we can provide the contact information to reach your current mortgage servicer.  The contact information for your new servicer may also be found on www.FairwayNEXT.com.

If you are preparing for a Natural Disaster…

• FEMA has provided a few websites which will assist in preparation for various types of disasters: www.ready.gov
• FEMA
  -- Hotline: 1-800-621-FEMA option 2 or TTY 1-800-462-7585
  -- Website: www.fema.gov
  -- To apply for FEMA disaster assistance: www.disasterassistance.gov
  -- Or call 1-800-621-FEMA
• Red Cross
  -- To apply for Red Cross disaster assistance: www.redcross.org
  -- Or call 1-800-RED-CROSS