04/21/2020: Talking Points - COVID-19 Servicing Credit Bureau Reporting Update as of 04/20/2020

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

  • Late charges will not be assessed and negative credit reporting is stopped for customers performing on their Forbearance plan
  • In compliance with the CARES Act and CDIA (Consumer Data Industry Association) guidelines, a forbearance special comment code will be reported for customers who enter into a forbearance agreement 
    • Code CP will be used for forbearance loans
    • This code has no negative impact to the FICO or Vantage Score credit scores (interpreted as having a neutral impact)

In addition to the information above, stops have been placed on all Retained Servicing loans – regardless of payment statu– 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

  • Servicers must elect to report a Special Comment Code of AW (disaster) or CP (forbearance) for these impacted customers on forbearance
  • Fairway Servicing does not know which COVID-19 credit bureau reporting approach has been adopted by each of the servicers who are servicing Fairway originated loans 
  • Customers must directly contact their current Servicer for details

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 

  • Disaster forbearances performing as agreed are supposed to be neutral by credit score modelers, however there will be contractually delinquent payments on the loan transactional history
  • Fairway Servicing does not have knowledge of the long term impact on underwriting for new credit and cannot offer guidance on this topic

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.