The communication shown further below was sent to All Fairway Employees on April 20, 2020 regarding credit bureau reporting for mortgage customers on COVID-19 forbearance plans. A detailed explanation on this topic is published in KnowledgeOwl under the COVID-19 Impacts and Assistance section.
Click here to view the detailed explanation job aid.
Advise customers and Fairway Loan Officers of the following information:
For Retained Servicing Loans
In addition to the information above, stops have been placed on all Retained Servicing loans – regardless of payment status – to prevent late charge assessments and negative credit reporting through July 6, 2020. Non-negative credit reporting data will continue to report to the credit bureaus on Retained Servicing loans.
For Servicing Transferred Loans
For Fairway Loan Officers - It is important they understand that Servicers do not have knowledge on potential impacts this will have to future underwriting practices
Please assure our Loan Officers the Servicing Leadership Team is continually monitoring guidance and directions issued, and updates will be communicated as they become available.
Please contact your Manager or Team Lead if you have questions.
The information shown below was distributed to All Fairway Employees from Kim Yowell on 04/20/2020
COVID-19 Servicing Credit Bureau Reporting Update
The CARES Act requires that impacted customers who are not delinquent when entering into forbearance (and who stay current on their forbearance plan) will not be negatively impacted by credit bureau reporting of COVID-19 forbearance activity. Servicers must comply with the CARES Act and report to credit bureaus within the CDIA (Consumer Data Industry Association) guidelines.
Under CDIA guidelines, for COVID-19 forbearances, Servicers MUST report either the Special Comment Code “AW” for disaster or “CP” for forbearance. Either reporting option has no negative impact to FICO or Vantage Score credit scores.
Fairway retained servicing customers on COVID-19 forbearance will be reported as a forbearance (Special Comment Code “CP”).
Please find attached helpful information:
CDIA (Consumer Data Industry Association) COVID-19 response on Helping Consumers Avoid Credit Problems
COVID-19 Servicing Detailed Explanation of Credit Bureau Reporting (Fairway Internal Document)
Please email Servicing 911 for internal assistance or questions. Fairway Servicing will communicate future updates as this event continues to develop.
This communication is for internal use to provide you with information to assist your customers - not approved to post on social media.