Customers whose retained servicing loans transferred to Flagstar Bank in the recent bulk sale are remitting payoff funds to Fairway (ServiceMac) per instructions on the payoff statement received prior to the transfer effective date.
As part of the normal process in a bulk sale transfer, Fairway (ServiceMac) forwards payoff funds to Flagstar Bank within 24 hours of receipt. Flagstar Bank is experiencing a delay in processing payoff funds forwarded from Fairway (ServiceMac), and some customers are receiving calls from Flagstar Bank regarding the status of their payment.
Should customers or loan officers contact Fairway regarding this matter, advise the following:
- Funds for payoffs received by Fairway retained servicing are forwarded to Flagstar Bank within 24 hours of receipt
- Flagstar Bank will apply these payoff funds to customers’ loans without assessing additional interest
- Assure customers and loan officers they will not be negatively impacted as a result of any delay in posting or processing of these payoff funds by Flagstar Bank