Servicing Management Default Underwriter (SMDU ) Release Notes for SMDU Version 7.5

Transcription

1 Servicing Management Default Underwriter (SMDU ) Release Notes for SMDU Version 7.5 November 14, 2017 During the weekend of November 18, 2017, Fannie Mae will implement SMDU Version 7.5, 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 7.5. Therefore, a final structuring request made to SMDU may not include the changes included in these Release Notes. 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 November 17, 2017, until 4:00 pm Eastern Time on November 18, POLICY UPDATES With this Release SMDU is synchronized with Fannie Mae Lender Letter LL , which announced the Fannie Mae Extend Modification for Disaster Relief ( Extend Mod ). Refer to pages 2-3 for using SMDU to evaluate a borrower for a Workout Option after a Disaster-Related Forbearance, including the Extend Mod. Refer to pages 4-5 for using SMDU to evaluate a borrower for a Cap and Extend Modification for Disaster Relief when SMDU determined the borrower is Eligible for the Extend Mod. A servicer who will use the SMDU User Interface (UI) to submit a closed Extend Mod to Fannie Mae that was evaluated by SMDU should refer to the UI User Guide for more information. A servicer using the HomeSaver Solutions Network (HSSN) to create and submit an Extend Mod to Fannie Mae that was evaluated by SMDU should refer to the HSSN Extend Mod Disaster Relief job aid on the Asset Management Network Fannie Mae. Trademarks of Fannie Mae. 1 of 6

2 How to Use SMDU to Evaluate for a Workout Option after a Disaster-Related Forbearance SMDU will evaluate a mortgage loan where the property securing the mortgage loan, or the borrower s place of employment, is located in a Federal Emergency Management Administration (FEMA)-Declared Disaster Area eligible for Individual Assistance according to the Servicing Guide. The Extend Mod does not require a complete Borrower Response Package (BRP) or a property valuation, but does require the servicer to provide the Loan Remaining Term (DD76), which is the remaining term of the loan at the time of evaluation. Please note: A servicer using SMDU via the SMDU UI may refer to the screen shots below on how to provide the additional data needed to evaluate a loan for the Fannie Mae Extend Mod. A servicer using a B2B platform should refer to their respective platform documentation for details on how to provide the additional data. Provide the Following Additional Information to SMDU: 1. Report the Disaster-Related Forbearance as a Record In order for a borrower to be evaluated for a disaster modification he/she must have been previously placed on a disaster-related forbearance plan. This forbearance plan needs to be reported to SMDU as a Prior Workout Record and include the information noted in the table below. The screen shot below is how this information should be reported via the SMDU UI. DD463 Status Date N/A will not affect the evaluation for disaster modification N/A will not affect the evaluation for disaster modification This date must be within 90 days when the servicer requests a SMDU trial evaluation DD462 Status Type Code 4 - Accepted by Borrower 5 - Provisional payment 6 - Permanent Completed Workout DD461 Type Code FBO Forbearance Plan (Other/Non- Standard) Reporting the Forbearance Plan via the SMDU UI 2017 Fannie Mae. Trademarks of Fannie Mae. 2 of 6

3 2. Report the hardship as Disaster (DD19) in the Hardship Reason Code (DD150). The screen shot below is how this information should be reported via the SMDU UI. Start Date is required End Date is only required when applicable SMDU Trial Response If all of the trial evaluation information is successfully submitted to SMDU, SMDU will return the applicable eligibility results in the SMDU Trial Response. When a borrower is Eligible for the Extend Mod the associated Campaign ID will be returned in the following new message in the SMDU Trial Response: When entering this loan workout into HSSN or SMDU UI, use Campaign ID MODSMP SMDU Extend Mod for Disaster Relief. (Message ID 5532) The following new message will be returned in the SMDU Trial Response when the borrower is Eligible for the Extend Mod, the Cap and Extend Modification for Disaster Relief or the Flex Disaster Modification (referenced in LL as the Fannie Mae Flex Modification based on the Unique Requirements for a Property Impacted by an Eligible Disaster). The servicer represents the property securing the mortgage loan or the borrower's place of employment is located in a FEMA Declared Disaster Area eligible for Individual Assistance and the borrower was current or less than 31 days delinquent at the time of the disaster. If the servicer cannot make these representations, contact SMDU support for assistance. (Message ID 6127) If the borrower is found Ineligible for the Extend Mod then SMDU will automatically evaluate the borrower for the next workout in the hierarchy, which is the Cap and Extend Modification for Disaster Relief followed by the Flex Disaster Modification Fannie Mae. Trademarks of Fannie Mae. 3 of 6

4 Per LL (Reviewing for a Workout Option after a Disaster-Related Forbearance) a servicer may evaluate a borrower for the Fannie Mae Cap and Extend Modification for Disaster Relief when the borrower is Eligible for the Extend Mod, but the servicer either a) determines that Extend Mod is not the appropriate workout as described in the LL , or b) the servicer has not implemented the Extend Mod. Please refer to the applicable scenario below. Evaluate for Fannie Mae Cap and Extend Modification for Disaster Relief When Borrower Is Eligible for the Extend Mod Servicer Has Implemented the Extend Mod The servicer must report the Eligible Extend Mod to SMDU as a Record and include the information noted in the table below. Refer to the screen shot below on how this information should be reported via the SMDU UI. Status Date (DD463) Status Code (DD462) Type Code (DD461) Activity Type Code (DD467) Fail/Cancel Reason (DD464) Date the Workout was Offered to the Borrower 2-Evaluated-Qualified or 3-Offered to Borrower Extend Modification Disaster Failed/Cancelled/ Denied Offer Not Accepted by Borrower/ Request Withdrawn SMDU UI: Reporting the Extend Mod as a (Servicer Has Implemented the Extend Mod) Evaluate for Fannie Mae Cap and Extend Modification for Disaster Relief When Borrower Is Eligible for the Extend Mod Servicer Has Not Implemented the Extend Mod The servicer must report the Eligible Extend Mod to SMDU as a Record and include the information noted in the table below. Refer to the screen shot below on how this information should be reported via the SMDU UI. Status Date (DD463) Status Code (DD462) Type Code (DD461) Activity Type Code (DD467) Fail/Cancel Reason (DD464) Date of Evaluation 2-Evaluated-Qualified Other Modification (OMOD) Failed/Cancelled/ Denied Offer Not Accepted by Borrower/ Request Withdrawn 2017 Fannie Mae. Trademarks of Fannie Mae. 4 of 6

5 SMDU UI: Reporting the Extend Mod as a (Servicer Has Not implemented the Extend Mod) MISCELLANEOUS UPDATE New Business Validation Error Message for BRP 2016 Indicator If a servicer indicates that a complete Borrower Response Package was received prior to December 30, 2016, ( BRP 2016 indicator ) as part of a prequalification or trial evaluation SMDU will return the following business validation error. This validation error will not be returned if the submission to SMDU is for final structuring regardless of whether the trial was evaluated by SMDU. Request contained reference to the old hierarchy including HAMP, MOD24, FMMOD and SLMOD, all of which are retired. Please remove the BRP 2016 indication and resubmit. SMDU UI: This screen shot illustrates how the BRP 2016 Indicator should be reported for a Trial Evaluation 2017 Fannie Mae. Trademarks of Fannie Mae. 5 of 6

6 APPLICATION OF RELEASE UPDATES This Release applies to all requests submitted to SMDU after the implementation of Version 7.5. 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 representation and warranties 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). SCHEDULED DOWNTIME To implement this Release, SMDU will not be available to process transactions from 10:00 PM Eastern Time on November 17, 2017, until 4:00 pm Eastern Time on November 18, Please do not submit transactions to SMDU during this period. Questions? Please contact SMDU Operations at smdu_support@fanniemae.com. QUESTIONS AND MORE INFORMATION If you have questions and/or need additional information about this Release and/or SMDU please contact your Fannie Mae Servicing Portfolio Manager Fannie Mae. Trademarks of Fannie Mae. 6 of 6