01/26/2021: Key Reminders - Bulk Sale of Selected Retained Loans to Flagstar Bank Effective February 1, 2021

Please review and become familiar with the key points referenced below.


Do Not Process Refinance Payoff Quotes Netting Escrow:  Please reference the Newsflash distributed on Friday 01/22/2021 advising we are no longer able to process payoff quote requests for internal refinances netting escrow for the loans transferring to Flagstar Bank  


Payoff Processing and Payoff Funds:  Customers and loan officers should follow the instructions for remitting payoff funds as referenced on the payoff statement.  

  • ServiceMac will forward payoff funds received after the February 1st transfer effective date as part of the post-servicing transfer process
  • February 1st servicing transfer loans will take 2 to 3 days before a new payoff quote can be requested at Flagstar Bank and for cash to be processed, including processing of payoff funds
  • This processing delay will not cause additional interest to accrue – the transaction will be effective-dated to the date the payoff funds were received
  • Refer to the communication sent from Kim Yowell on Friday 01/22/2021 titled “Upcoming Servicing Transfer Activity – Fairway Originated Loans”


Not all ACH drafting is transferring to Flagstar Bank:  In addition to bi-weekly drafts, there are certain conditions where monthly recurring ACH will not transfer – Referenced on pages 12-13 in the attached presentation

  • Refer to the Notice of Transfer (Goodbye letter) in DMS to confirm if ACH will or will not transfer
  • ACH is transferring on loan number 2010002614 – view the letter on this loan for the verbiage indicating the ACH service will continue but may experience a brief delay while the loans board to Flagstar Bank’s system
  • ACH is not transferring on loan number 2010001662 because the Account Name for the checking account is listed as “Bugray LLC” on the MAS1 DFT1 screen – view the letter on this loan for the verbiage indicating the ACH service will be discontinued


Drafting delay for ACH transferring – Referenced on page 14 in the attached presentation

For loans with ACH transferring to Flagstar Bank:

  • Drafts scheduled for February 1st and 2nd will occur on February 3rd
  • All other drafts will occur on their scheduled date during February
  • Drafts will resume their scheduled date in March


Investor notices referencing Flagstar Bank, Two Harbors and/or Matrix Financial

  • Notices sent by investors on the loan may advise customers their loan has been transferred to Matrix Financial or Two Harbors 
  • Matrix Financial is the parent company of Two Harbors, who purchased the loans
  • Flagstar Bank is the customer facing subservicer for Two Harbors