01/28/2021: Update - Flagstar Bank will Honor Tax Option 1 on Wisconsin Loans

On December 30, 2020, a newsflash communication advised that Flagstar Bank would not honor Wisconsin Tax Option 1 on Fairway loans that elected this option at origination and then transferred to Flagstar Bank for servicing.  

Upon further review, Flagstar Bank has updated their policy, and they will honor Wisconsin Tax Option 1 on loans transferred from Fairway.  

The previous communication advised Flagstar Bank would convert these customers from Tax Option 1 to Tax Option 2 for disbursements scheduled to occur in the 2021 tax year.  Loans for these customers will revert back to Tax Option 1.

Should customers contact Fairway with questions or concerns on this matter, please direct them to contact Flagstar Bank as their current servicer.