All underwriting criteria are subject to the formal terms and conditions posted in KnowledgeOwl.
In the event of any conflict with this document, the guidelines will govern.
For each mortgage a borrower is obligated on, regardless of transaction type, the following requirements apply
based on scenario / circumstance. 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 in the following order:
Step 1: Is the borrower current and has had no missed mortgage payments that will be included in the new loan?
Yes, stop here. Borrowers whose payments are current, follow standard guidance.
Step 2: Has the borrower resolved missed payments through reinstatement? A reinstatement involves all missed
payments being brought current, typically in a lump sum payment.
Yes, stop here. If the borrower resolved missed payments through reinstatement (i.e. loan is now current),
the borrower is eligible for a new mortgage loan.
Note:
If the reinstatement was completed after the application date, the source of funds must be
documented in accordance with standard policy.
Reinstatement is no longer an option once a loss mitigation solution is accepted (see steps 3 – 5).
Step 3: Does the borrower have a Repayment Plan Agreement on the existing loan? A repayment plan is when a
borrower agrees to pay an additional amount on top of the regular payment until the missed payments are made.
Yes. Continue to Step 3a.
Step 3a: Has the borrower resolved / completed the repayment plan?
Yes, stop here. Provide the Repayment Plan Agreement, and evidence of consistent timely payments under
the plan.
Step 3b: Has the borrower made at least 3 consecutive payments on time under the terms of the Repayment
Plan Agreement?
Yes, stop here. Provide the Repayment Plan Agreement and evidence the 3 most recent consecutive
payments made on time and as agreed. If the agreement was on the subject property, the new refinance
loan can include any outstanding balance for missed payments, and can be either a LCOR or cash out.
No, stop here. The borrower does not qualify at this time.
Step 4: Does the borrower have an existing Payment Deferral Agreement? With deferment, past due payments
are deferred as a non-interest bearing balance, and become due at refinance or any other type of liquidation.
Yes, continue to step 4a.
Step 4a: Has the borrower made at least 3 most recent consecutive payments on time under the terms of the
Deferment Agreement?
Yes, stop here. Provide the agreement and evidence the 3 most recent consecutive payments were paid on
time and as agreed. Payments cannot be pre-paid. If the agreement was on the subject property, the new
refinance loan can include any outstanding balance for missed payments, and can be either a LCOR or cash
out.
No, stop here. The borrower does not qualify at this time.
Step 5: Does the borrower have a Loan Modification Agreement? A loan modification is when some or all of the
loan terms are modified to assist the borrower in making their payments during financial hardship.
Yes, continue to step 5a.
No, stop here. There are no additional repayment options. The borrower does not qualify at this time.
Step 5a: Has the borrower made at least 3 consecutive payments following the effective date of the agreement?
Yes, stop here. Provide the Modification Agreement and evidence the 3 most recent consecutive payments
we paid on time and as agreed. If the agreement was on the subject property, the new refinance loan can
include any outstanding balance for missed payments, and can be either a LCOR or cash out.
No, stop here. The borrower does not qualify at this time.
Fairway COVID-19 GSE
Mortgage Payment History & Forbearance
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