Early Payoff Charged to Loan Officers - Interim and Transferred Servicing Loans

Information on this page applies to Interim Servicing and Servicing 911.

Loan officers may inquire about a fee amount or chargeback cost to their branch if they refinance a loan less than 6 months from the origination date of the loan.  

Most Fairway originated loans have  a timeframe requirement that must be met before being eligible to refinance without a cost being assessed to the branch.  

  • Listed below is the email point of contact and process when a LO requests for an EPO date
  • Scroll down this page to view content regarding what occurs when a loan is paid off prior to the EPO date

Forward the email request from the LO to the Early Payoff Group (EPO).  Copy the LO on the email, and use the template provided below when sending the request to EPO:

Email: epo@fairwaymc.com

Copy and paste the template below, and be sure to update the variable fields to customize the response to the LO:  

<Beginning of template>

Thank you for contacting Servicing911 regarding an early payoff fee.  We are forwarding your request to the Early Payoff (EPO) Team.  As this team is the subject matter expert on this topic, we know you will receive a timely and accurate response to your inquiry.

EPO:  Please assist with the request below.

  • [Loan number and customer name]
  • What is the early payoff date for this loan?
  • What is the chargeback dollar amount that will be assessed if payoff or refinance occurs prior to the EPO date?

If you have additional servicing-related questions, please contact Servicing911 by email at servicing911@fairwaymc.com.

<End of template>

Fairway Loan officers may contact the Early Payoff team directly if they prefer. 

  • Email:  epo@fairwaymc.com
  • The EPO Department and EPO email are for internal use only.  Do not provide this information to customers or external third parties


When a loan is paid in full prior to the EPO date:

  • Below is the process that an EPO goes through, prior to branch or employee deductions
  • The branch will be charged an EPO fee, whether the borrower refinances through Fairway or another lender
  • This is a rough outline of the EPO process, subject to change when and where necessary
  • It can take as many as six months to actually see an EPO fee on the P&L.  It is dependent upon when the invoice is received and some investors, servicers only bill quarterly
  • It can take as many as 21 to 30 days to process, once received

Effective May 1, 2019: 

  • All branches will receive an EPO penalty in the amount of 100 BPS, for all Early Payoffs with an application date on or after 5/1/2019
  • 100 BPS translates to 1% of the full loan amount

Once received, all EPO invoices are reviewed by Accounting, for validity and payment.


All comp plans for the LO of record are reviewed by Accounting for EPO deduction verbiage.

  • The effective date of the EPO deduction is the Application Date
  • Commission was paid to the LO based upon the Application Date - therefore, it is fair to the Branch and the Employee, to use the same criteria

Accounting compiles a list with all EPO data, for all branches and sends it to Gary Nelson.


Gary personally contacts all Branch Managers to inform them of the EPO penalty, prior to it hitting the branch books.


The Branch Managers are also informed of whether or not the email is eligible for payroll deduction (often referred to as ‘clawback’)

  • When contact to all Branch Managers is completed, Gary returns the list to Accounting
  • Gary will have noted Branch Manager requests/notes relevant to posting to the P&L and/or applying payroll deductions

It is at this point that Accounting will input charges to the Branch P&L.


Accounting will review payroll to ensure that the employee has enough in commissions to cover the EPO deduction.


If the funds are available, the EPO Deduction is entered for the first available pay date for the loan officer.


If funds availability looks close, with being unaware of all the deductions an LO may have in association to medical/dental insurances, etc.; HR will be contacted to verify whether or not the EPO deduction(s) will push the LO below minimum wage.


If funds are not available Gary and the Branch Managers are consulted before further action is taken.


The Branch Manager should be informing their LO, when an EPO deduction will hit their paycheck.