Recent changes in the mortgage market due to COVID-19 have resulted in Servicers no longer purchasing large volumes of servicing rights on newly originated loans. As a result, loans that originate and close as Non-Retained Servicing with the intent to transfer to Non-Retained Servicers are now boarding to Fairway Interim Servicing and then completing a true Servicing Transfer to ServiceMac, on behalf of Fairway.
Loan officers are accustomed to viewing the new servicer and loan transfer details for newly originated loans on www.FairwayNEXT.com. New loan details for Retained Servicing Loans that are subserviced with ServiceMac are not available on the FairwayNEXT website.
Loan details for Retained Servicing Loans are viewable by using the Retained LO Tool. Educate Loan Officers to use the Retained LO Tool when they receive the retained message on FairwayNEXT (shown below).
The Retained LO Tool provides the loan level details the LO’s are looking for including new ServiceMac loan number, first payment due to ServiceMac and amount, payment and correspondence addresses, the toll-free number and website address. The Retained LO Tool icon is shown below.
Remind LO’s to look for the Retained LO Tool on the Fairway Servicing Intranet Site home page. This tool is also accessible on the Servicing KnowledgeOwl under the section titled “Where do Customers Make their First Payment?”
These details were originally communicated in the Newsflash distribution on April 29, 2020. Please review the copy below, and see your Manager or Team Lead if you have any questions.
Loans Originated as Non-Retained Servicing are now Service Transferring to ServiceMac
**Please read this entire document for information on customer impact and loan officer impact regarding this topic.**
Recent changes in the mortgage market due to COVID-19 have resulted in Servicers no longer purchasing large volumes of servicing rights on newly originated loans. Specific to Fairway, this means an increased volume of Conventional and Government new originations are being retained by Fairway and transferred to ServiceMac - Fairway’s Servicing Center subservicing in the name of Fairway - instead of transferring to Non-Retained Servicers such as Dovenmuehle, LoanCare, RoundPoint, etc.
Based on current market changes, loans that originate and close as Non-Retained Servicing with the intent to transfer to Non-Retained Servicers are now boarding to Fairway Interim Servicing and then completing a true Servicing Transfer to ServiceMac, on behalf of Fairway.
This is unique and different from the standard loan flow process for Retained Servicing and the standard process for Non-Retained Servicing Loans.
Listed below are the unique steps and the communications for these customers who Servicing Transfer from Fairway Interim Servicing to ServiceMac, on behalf of Fairway.
Closing Documents and First Payment Letter – closing paperwork for these customers instructs them to remit their first payment to Fairway’s Corporate Office in Carrollton, Texas – the standard Closing Documents for Non-Retained Servicing Loans
Interim Servicing – these loans board to Fairway Interim Servicing and data loads to FICS
Notice of Transfer – these loans will complete a Transfer of Servicing from Fairway Interim Servicing to ServiceMac LLC, servicing on behalf of Fairway
- Notices will be mailed in the Fairway Bright Green Envelope
- New ServiceMac MSP loan numbers will be assigned
- Customers are instructed to remit payments to the payment address in Atlanta, Georgia as of the transfer effective date
Website – these customers will be directed to visit www.MyFairwayServicing.com in their Notice of Transfer
- Customers attempting to access these loans on FairwayNEXT.com will be redirected to view the Retained Servicing website
Investor Servicer Letter “404 Letter” – these letters generate directly from Fannie Mae and Freddie Mac and at this time refer to the Servicer for these loans as ServiceMac instead of ServiceMac on behalf of Fairway (we are working to correct this)
- These letters are not generated or mailed by Fairway or ServiceMac
Explain the points below regarding Fairway’s existing business relationship with ServiceMac to ease any concern customers may express:
- Fairway partners with ServiceMac, an innovative and customer-focused servicing provider ensuring Fairway’s mortgage customers receive a premier level of service
- Billing statements, correspondence and online communications remain branded as Fairway, and the Customer Experience Call Center is staffed by Fairway employees
A sample Mortgage Servicing Transfer Notice is attached to this Newsflash. Take time to become familiar with the content of this Transfer Notice in order to properly assist customers with questions regarding this transfer process.
Loan Officer Confusion – many loan officers are accustomed to most of their newly originated loans being servicing transferred to external servicers. They may also be accustomed to going to FairwayNEXT.com to conveniently view the new servicer information and transfer effective date. They are confused by the message redirecting them to our subservicer’s website www.myfairwayservicing.com.
Loan officers may have loans that were not specified/arranged to be retained, and due to the strategy change they may not understand why the loan is now retained. Explain to the Loan Officers this is due to the market shift as a result of COVID-19 and buyers are not purchasing servicing rights.
As they cannot get the information they typically view on FairwayNEXT, educate Loan Officers to use the Retained LO Tool when they receive the retained message on FairwayNext (shown below).