Servicing Management Default Underwriter (SMDU ) Release Notes for SMDU Version 6.4

Transcription

1 Servicing Management Default Underwriter (SMDU ) Release Notes for SMDU Version 6.4 March 27, 2015 During the weekend of April 18, 2015, Fannie Mae will implement SMDU Version 6.4, which includes new functionality and updates as described below. The changes described in these Release Notes apply to all prequalification and trial structuring requests submitted to SMDU after the implementation of Version 6.4. Therefore, a final structuring request made to SMDU may not include the changes included in these Release Notes if a successful trial structuring request was processed by SMDU prior to April 18, Please refer to the Application of Release Updates section for additional context. To implement this Release, SMDU will not be available to process transactions from 10:00 PM Eastern Time on Friday, April 17, 2015, until the early evening (Eastern Time) on Sunday, April 19, POLICY ALIGNMENT WITH MYCITY MODIFICATION Periodically Fannie Mae will update its workout policies. With this Release, SMDU is: Synchronized with D : Fannie Mae MyCity Modification With this Release, SMDU will evaluate a borrower for a MyCity Modification. When the subject property securing the mortgage loan has an address within the City of Detroit, Michigan or Cook County, Illinois SMDU will evaluate MyCity Modification as the first workout in the loan workout hierarchy. A servicer does not need to provide any additional data for SMDU to identify an applicable property. Important Notes: A servicer should only use SMDU for a final evaluation of a MyCity Modification if SMDU was used to evaluate the trial and returned an Eligible response. Currently, SMDU does not support a first-time final for a MyCity Modification. A borrower in an active Streamlined Modification Trial Period Plan should be evaluated for a MyCity Modification outside of SMDU, when applicable. To do so, the servicer should submit the case to Fannie Mae s Loss Mitigation Desk for decisioning. New Campaign Identifiers for MyCity Modification The following campaign identifiers (ID) have been created for MyCity Modification cases evaluated by SMDU. The correct campaign ID will be returned in the SMDU Response File/Finding Messages. MODSMP (SMDU MyCity Modification Complete BRP - 3 Month Trial - Del) MODSMP (SMDU MyCity Modification Complete BRP - 4 Month Trial - Del) MODSMP (SMDU MyCity Modification No BRP - 3 Month Trial - Del) As a reminder, when a case is opened in HSSN, the servicer must use the campaign ID provided in the SMDU Response File to preserve the limited waiver of representations and warranties provided by SMDU Fannie Mae. All rights reserved. 1 SMDU Version 6.4_Release Notes_032715

2 SMDU Supports Borrower Appeal of MyCity Modification The SMDU appeal process will support a servicer in evaluating a borrower s appeal of a MyCity Modification denial when the servicer has determined that the appeal involves the borrower s first complete Borrower Response Package and complies with the appeal requirements in the Fannie Mae Servicing Guide. Although the appeal functionality is designed to help a servicer with evaluating a borrower s appeal, it remains the servicer s responsibility to comply with the Servicing Guide and all applicable laws, including RESPA mortgage servicing rules and regulations. HAMP BASE NET PRESENT VALUE (NPV) MODEL VERSION 6.0 With this Release, SMDU will be updated with the HAMP NPV Model version 6.0. Per the SMDU servicer communication dated March 23, 2015, servicers utilizing SMDU prior to SMDU Release 6.4 will not have access to the HAMP Base NPV 6.0 Model until April 20, Beginning on April 1, 2015, and until April 18, 2015, SMDU Support will monitor SMDU to identify any cases that may have been adversely impacted by the postponement of the HAMP Base NPV Model version 6.0 (i.e., not eligible for a Fannie Mae HAMP modification). Applicable servicers will be provided a list of any impacted cases. A servicer that is utilizing or will be utilizing SMDU as of April 1, 2015, will be required to resubmit any adversely impacted cases identified by Fannie Mae to SMDU after April 20, 2015, to determine if there is a change in the HAMP eligibility determination. Given that the change in NPV is minimal, we do not expect it to have a material impact on many homeowners eligibility. USING SMDU TO SEND A CASE TO FANNIE MAE FOR REVIEW (FMMOD ONLY) With this Release, a servicer can use SMDU s case management functionality to create a case in Fannie Mae s Home Saver Solutions Network (HSSN) to request that Fannie Mae review a FMMOD trial that was originally evaluated by SMDU. This functionality eliminates a servicer from having to manually create a case in HSSN for Fannie Mae review. Please note: this new functionality is only available to servicers using Interface (schema) Version 6.0 or higher. Creating a Request Review Case Servicer will submit the Request Review option in the SMDU Reporting Purpose field. The case must be submitted within 14 days of making the FMMOD trial structuring request in SMDU. o A request for review sent after 14 days will result in the following error message: A valid SMDU trial-structuring response within the past 14 days cannot be located for the requested loan The request for review must be made during HSSN business hours, which are Monday through Friday from 8:00 a.m. to 10:00 p.m. ET. A request made outside of this timeframe will result in an error Fannie Mae. All rights reserved. 2 SMDU Version 6.4_Release Notes_032715

3 Creating a Request Review Case (continued) SMDU will use the servicer-provided 32-character Request ID (DD #438) to automatically retrieve the case s FMMOD trial structuring information as well as include the additional servicer-provided case information, such as servicer contact name and phone number. If the Request ID is not provided, SMDU will use the data associated with the case s most recent FMMOD trial structuring request. o Servicer-provided data included in the creation of a case that differs from the FMMOD trial structuring request will be ignored. SMDU Responses If the creation of a request review case is: Successful: SMDU will return in the Response File: o o relevant case information (e.g. HSSN case identifier, case status), and loan data from the SMDU trial structuring request that was submitted to Fannie Mae s Distressed Activity Recovery Tracking System (DARTS) (e.g. income and expense amounts, escrow and borrower contribution amounts, NPV and property valuation information). Unsuccessful: SMDU will return in the Response File the HSSN error(s) that prohibited the creation of the case in HSSN. Important Notes: This new functionality only supports submission of a FMMOD for review by Fannie Mae. It does not support submission of a Fannie Mae HAMP, Mod 24, or MyCity Modification. If a servicer makes a SMDU case submission request, but there is already an active case in HSSN, SMDU will return a message indicating so and will not create a new case in HSSN. SMDU does not make updates and/or cancel a case in HSSN. A servicer should continue to use its existing processes to update and/or cancel a case directly in HSSN. If a servicer manually cancels a case in HSSN it should also be cancelled in SMDU (when the servicer intends to use SMDU to create a new case in HSSN). The case must be cancelled in both places (HSSN and SMDU) before a servicer can resubmit the new case to HSSN using SMDU Fannie Mae. All rights reserved. 3 SMDU Version 6.4_Release Notes_032715

4 SMDU RETURNS PROPERTY VALUATION DATA With every prequalification request SMDU will return the following property valuation information, if and when, the data resides in Fannie Mae s Loss Mitigation Valuation (LMV) database and meets the required criteria. The available information is returned in the SMDU Response File, which eliminates a servicer from having to log into LMV to obtain this information. Please note: this new functionality is only available to servicers using Interface (schema) Version 6.0 or higher. SMDU DD # Data Element Data Element Description 736 Valuation Order Identifier-LMV The unique number assigned to each LMV evaluation for reference purposes 737 Property Valuation Order Status Code-LMV Indicates the status of a particular evaluation 738 Property Valuation As Repaired Value Amount-LMV Indicates the estimated value of the property if repairs are performed 739 Property Valuation As Is Value Amount-LMV 740 Net Proceeds Amount-LMV Indicates the estimated value of the property assuming property is sold as is Indicates the minimum net proceeds FNM will accept for the property 741 Property Valuation Expiration Date-LMV The date the property valuation expires 742 FNM List Price Guidance Amount-LMV 743 FNM List Price Expiration Date-LMV 744 Property Valuation Order Reason Code-LMV 838 Property Valuation Status Date-LMV 839 Property Occupied Indicator-LMV 840 Property Secure Indicator-LMV 841 Property Vandalism Risk Code-LMV Indicates an amount that FNM believes the property could be listed for The date the list price guidance expires (same date as the BPO evaluation Expiration Date) Indicates why the valuation was ordered (Short Sale, Mortgage Release, HAFA_DIL, etc.) The date and time the evaluation status for the LMV valuation was last updated. property is occupied, as reported by the vendor performing the LMV valuation property is secured, as reported by the vendor performing the LMV valuation A code that denotes the risk of vandalism for the subject property, as reported by the vendor performing the LMV valuation 2015 Fannie Mae. All rights reserved. 4 SMDU Version 6.4_Release Notes_032715

5 SMDU DD # Data Element Data Element Description 842 Property HOA Delinquent Amount-LMV 843 Property Current MLS Identifier-LMV The amount of HOA fees which are delinquent, as reported by the vendor performing the LMV valuation The MLS number for the current listing for the subject property, as reported by the vendor performing the LMV valuation Property Water Damage Evidence Indicator- LMV Property Discoloration Evidence Indicator- LMV property has evidence of water damage, as reported by the vendor performing the LMV valuation property has evidence of interior wall discoloration, as reported by the vendor performing the LMV valuation 847 Property Asbestos Evidence Indicator-LMV 848 Property Environmental Issue Indicator-LMV 849 Property Mechanical Repair Indicator-LMV property has evidence of asbestos, as reported by the vendor performing the LMV valuation property has evidence of other environmental issues, as reported by the vendor performing the LMV valuation property requires mechanical repairs, as reported by the vendor performing the LMV valuation 2015 Fannie Mae. All rights reserved. 5 SMDU Version 6.4_Release Notes_032715

6 SMDU RETURNS ADDITIONAL DATA TO AID IN COMPLETION OF PRIOR WORKOUT RECORDS SMDU will return the following loss mitigation data in the Response File if it was previously reported to Fannie Mae via HSSN. The intent in providing this information is to help a servicer complete a borrower s prior workout history without having to log into HSSN to obtain the needed information. Please note: this new functionality is only available to servicers using Interface (schema) Version 6.0 or higher. SMDU DD # Data Name Data Description Notes 897 Reported Streamlined Documentation Eligibility Indicator 898 Reported Loan Pre- Workout Principal And Interest Payment Amount 899 Reported Pre-Workout Escrow Payment Amount 900 Reported Principal And Interest Payment Post-Workout Amount 901 Reported Post- Workout Escrow Payment Amount 902 Reported Case Status Date 906 Reported Actual Provisional Payment Date Indicates if the servicer previously reported to Fannie Mae that a liquidation workout was eligible without verification of the borrower s hardship or obtaining a complete Borrower Response Package. For a workout previously reported to Fannie Mae, the scheduled principal and interest payment amount at the time of determining program eligibility. For a workout previously reported to Fannie Mae, the amount of money (at the time of determining program eligibility) that is being collected by the servicer as part of the regular monthly mortgage payment to cover, on behalf of the mortgagee, periodic payments of property taxes and insurances. For a workout previously reported to Fannie Mae, the scheduled principal and interest amount after the loan workout. For a workout previously reported to Fannie Mae, the amount of money that will be collected by the servicer as part of the regular monthly mortgage payment to cover, on behalf of the mortgagee, periodic payments of property taxes and insurances in the first payment after the completion of the workout. The date the Reported Workout Case Status (DD669) was previously reported to Fannie Mae. The posting date of an actual payment as part of a provisional payment plan that was previously reported to Fannie Mae. If Yes, servicer must verify status of the liquidation workout. If a liquidation workout is still active, then a retention workout should not be completed Workout Payment Reduction Percent (DD #465) Workout Payment Reduction Percent (DD #465) Workout Payment Reduction Percent (DD #465) Workout Payment Reduction Percent (DD #465) Workout Status Date (DD #463) determine what to report as the Prior Workout Status Type (DD #462), Prior Workout Status Date (DD#463), Prior Workout Fail/Cancel Reason Type Code (DD #464), and Prior Workout Activity Type Code (DD #467) 2015 Fannie Mae. All rights reserved. 6 SMDU Version 6.4_Release Notes_032715

7 SMDU DD # Field Name Field Description Notes 907 Reported Market Value Analysis Date 908 Reported Loan Workout Effective Date The date the most recent Market Value Analysis was prepared for a workout that was previously reported to Fannie Mae. The effective date of a loan workout previously reported to Fannie Mae. It does not represent the Interest Rate Effective Date. Workout Status Type (DD #462) and the Prior Workout Status Date (DD #463) determine what to report as the Prior Workout Status Type (DD #462), Prior Workout Status Date (DD #463), Prior Workout Fail/Cancel Reason Type Code (DD #464), and Prior Workout Activity Type Code (DD #467) 909 Reported Servicer Officer Signature Date 911 Reported Servicer General Comments 912 Reported Servicer Evaluation Date The date the servicer's officer signed the final documentation for a loan workout previously reported to Fannie Mae. Servicer's justification, recommendation or comments for a loan workout previously reported to Fannie Mae. The date of the servicer's workout evaluation for a loan workout previously reported to Fannie Mae. determine what to report as the Prior Workout Status Type (DD #462), Prior Workout Status Date (DD #463), Prior Workout Fail/Cancel Reason Type Code (DD #464), and Prior Workout Activity Type Code (DD #467) determine what to report as Prior Workout Records (DD #461- DD #467) Workout Status Date (DD #463) MISCELLANEOUS MESSAGE AND DATA UPDATES SMDU Data Previously Reported to Fannie Mae SMDU compares the campaign ID submitted with the final structuring request to the data previously reported to Fannie Mae via HSSN. Now, when there is a discrepancy between the data SMDU will generate the following new message (Message ID 6339): SMDU has identified an inconsistency between the campaign ID reported to HSSN [Reported Workout Campaign Identifier] and the SMDU campaign ID [Campaign Identifier] in the eligible trial that preceded this final structuring evaluation. This may be caused by incorrect reporting of the 32-character SMDU transaction ID either to HSSN when creating the trial, or to SMDU in the final structuring request. Please review the reported data reported and update as necessary Fannie Mae. All rights reserved. 7 SMDU Version 6.4_Release Notes_032715

8 MISCELLANEOUS MESSAGE AND DATA UPDATES (CONTINUED) Fannie Mae Home Affordable Refinance Program (HARP) Messages If applicable, SMDU will return the following observational message(s) when a borrower is less than or equal to 60 days past due and is not in imminent default. Prior to this Release, each message was embedded in other SMDU observational messages and not returned as separate messages. SMDU has determined the borrower may be eligible for the Home Affordable Refinance Program (HARP), even if there may be little or no equity in the property. Because the borrower is not in imminent default, the servicer should investigate the borrower's eligibility for HARP. SMDU has determined the borrower may be eligible for non-harp refinance. Because the borrower is not in imminent default, the servicer should investigate the borrower's eligibility for refinance. Fannie Mae Delinquency Status Codes Name Changes The following Fannie Mae Delinquency Status Codes are being updated to match their names in internal Fannie Mae systems. Old Value New Value 15- Preforeclosure Being Pursued 15- Short Sale Approved / Marketing Property 17- Preforeclosure Contract / Offer Received 17- Short Sale Approved / Offer Received APPLICATION OF RELEASE UPDATES This Release applies to all requests submitted to SMDU after the implementation of Version 6.4.However, it is important to note: SMDU will not process a final structuring request if the most recent prior successful trial structuring response on the same loan was returned by SMDU more than 12 months ago. An Error Code 4 will be returned, at which time the servicer can evaluate the loan outside of SMDU, send the loan to the Fannie Mae Loss Mitigation Desk or contact SMDU Operations at smdu_support@fanniemae.com. Servicers should rely upon the Loss Mitigation Recommendation and findings messages contained in the SMDU response to assist with loss mitigation activities. Limited waiver of liability applies to servicers who, among other things, provide accurate input data and follow the recommendations provided in the SMDU finding messages (see the Single Family Servicing Applications Schedule of the Software Subscription Agreement, available online at fanniemae.com, for specific requirements) Fannie Mae. All rights reserved. 8 SMDU Version 6.4_Release Notes_032715

9 SCHEDULED MAINTENANCE DOWNTIME To implement this Release, SMDU will not be available to process transactions from 10:00 PM Eastern Time on Friday, April 17, 2015, until the early evening (Eastern Time) on Sunday, April 19, Please do not submit transactions to SMDU during this period. Questions? Please contact SMDU Operations at QUESTIONS AND MORE INFORMATION If you have questions and/or need additional information about Release 6.4 and/or SMDU please contact your Fannie Mae Servicing Portfolio Manager Fannie Mae. All rights reserved. 9 SMDU Version 6.4_Release Notes_032715