The information in this newsflash applies to Interim Servicing and Servicing Transferred loans.
Fannie Mae offers a Distressed Properties Program providing a rebate of $1,250.00 to lenders (Fairway) when customers close a loan and purchase a property that was:
- Either a Short Sale or Real Estate Owned (REO)
- Customers’ qualifying income represented 100% of the Area Median Income (AMI) of the county/state where the property is located
- Conventional first-lien mortgage purchased as a primary residence
In 2019, 142 mortgage loans closed with Fairway under this program and earned the rebate. Fairway elected to forward the rebate to customers and mailed them a check for that amount.
The attached spreadsheet provides names, property addresses and loan numbers of customers who received a check from Fairway.
- The check and explanation letter typically mailed within two weeks of the Purchase Advice Date
- Column E “Check Date” on the spreadsheet provides the date the check and letter mailed
The letter explains the program, advises the funds are subject to income tax and an IRS Form 1099 would be mailed in January. The verbiage contained in the letter is shown below.
Please take time to become familiar with this information in order to properly answer any questions.
If customers state they did not receive a 1099-Misc form, send an email to DW Schabbing and Tia Farmer with the following information:
Subject Line: 1099 MISC Rebate <Loan Number>
Body of Email, include the following:
- Confirm customer is requesting another copy of the 1099-Misc
- Type the correct mailing address the copy should be sent to
Please see your manager or lead if you have any questions.