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Fannie Mae Promotes SMDU

by devteam May 8th, 2013 | Share

Fannie Maernspotlighted the availability of its Servicing Management Default UnderwriterTM</sup(SMDUTM) today while alerting servicers that use of the loss mitigation toolrnwhich is now voluntary, will probably become mandatory soon.  Fannie Mae said SMDU, a counterpart to itsrnDesktop Underwriter® for mortgage originations, is already being used by arnnumber of its technology providers and servicing partners and several largernservicers are working toward its adoption this year.</p

SMDU allowsrnusers to feed in the financial data of distressed homeowners; it then evaluatesrnthat data and determines what options are available to them to preventrnforeclosure.  Fannie Mae said servicersrnwho adopt SMDU experience faster speed to implementation ofrnFannie Mae policy changes.   Servicers canrnmake real-time calls to Fannie Mae’s business rules as they collect informationrnfrom homeowners. SMDU informs the servicer when the homeowner is eligible forrnstreamlined processing for any loss mitigation option, which can eliminaternweeks from the process.  .Servicers are guided through the tool with scripts tornpromote consistency and improve customer service, elements that translate torncost savings and improved service to homeowners.  The program has been under development forrnthree years.</p

“SMDUrnaddresses several challenges the servicing industry has faced in recent yearsrnby eliminating a manual and resource-intensive process for servicers whilernimproving accuracy and consistency,” said Leslie Peeler, Senior Vice Presidentrnof Fannie Mae’s National Servicing Organization.  Peeler said that so far use of the tool hasrnbeen voluntary but servicers should anticipate that adoption will be requiredrnat some point in the near future. SMDU serves the interests of homeowners,rnservicers and taxpayers. The bottom line is that we want servicers to preventrnas many foreclosures as possible and provide excellent service.”

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About the Author

devteam

Steven A Feinberg (@CPAsteve) of Appletree Business Services LLC, is a PASBA member accountant located in Londonderry, New Hampshire.

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