Loan Servicing

What is a servicing transfer and how does it affect my loan?

Many activities must occur during the life of a mortgage loan such as the application of monthly mortgage payments received from customers. Other activities may include the payment of taxes and insurance premiums from customer escrow accounts, customer support, performing payment adjustments on adjustable-rate mortgage loans, providing assistance with payment options during difficult times and many other activities.

Can the servicing of my mortgage loan be switched to a servicer other than the one it has been transferred to?

Upon the sale and servicing transfer of your mortgage loan, Fairway is unable to subsequently change your new servicer. Your new servicer controls the activities and decisions supporting your mortgage loan. With written authorization (as per your new servicer’s requirements), Fairway may be an advocate for you if requested. Even if your servicing transfers, your relationship is important to each of us at Fairway.

What is private mortgage insurance (PMI)? Can I remove PMI from my monthly payment?

Private mortgage insurance (PMI) is required on Conventional mortgage loans that originate with a loan to value (LTV) ratio greater than 80%.

What is a recast?

A recast is the process of paying a large principal payment on your loan and re-amortizing the payments over the remaining term of the mortgage. This does not shorten the term or change the interest rate like a refinance, but it reduces the amount of the principal and interest portion of the monthly payment over the remaining life of your loan.

When I complete my recast, will the private mortgage insurance (PMI) be removed from my mortgage loan?

The process of removing PMI once a recast is complete does not occur automatically. This is a separate request and process that is handled by the servicer of your loan.