Fannie Mae delivers on ‘Simplifying Servicing’ at MBA
Technology and innovation were major themes in discussions at the recent Mortgage Bankers Association (MBA) National Servicing Conference in Dallas, TX, Feb. 14-17. And Fannie Mae’s presence was no exception. During the conference, Fannie Mae showcased how we are making servicing simpler and more efficient, reducing risk, and bringing standardization to the industry.
Fannie Mae demonstrated how we are Simplifying Servicing™ for our customers, starting with a new user interface for our Servicing Management Default Underwriter™ (SMDU™) loss mitigation tool.
SMDU has been available for five years. Over that time, we have evolved and expanded the tool’s capabilities and value. The new user interface, called the SMDU UI, was designed for smaller servicers that don’t have the level of automation necessary to access SMDU and realize its benefits.
We set out to build an end-to-end solution that eliminates risk and provides certainty by leveraging our data along with servicer-provided data to evaluate a borrower for all of Fannie Mae’s loss mitigation programs.
In doing so, SMDU ensures a homeowner receives the full benefits of Fannie Mae policy while reducing human errors and processing time in loss mitigation.
In addition, Fannie Mae recently implemented investor reporting enhancements. The enhancements took effect Feb. 1, and include:
- Eliminating the single-family MBS call-in process. This removes the requirement for servicers to aggregate pool balances for reporting. Instead, Fannie Mae will aggregate the loan level information provided by the servicers. This eliminates redundant data reporting for Fannie Mae’s customers.
- Aligning the investor reporting cycle due dates to standardize the reporting cycle. This allows servicers to resolve data exceptions throughout the month and prior to the close of the reporting cycle.
- Adjusting the removal transactions reporting policy. Formerly servicers were required to report liquidations (i.e., payoffs, repurchases, foreclosures) by the first business day after they’d processed the transaction in their system. This change provides customers with consistency in reporting requirements between GSEs, which will bring efficiencies to their processes.
- Enhancing the loan modification data process enabling daily bridging of loan modification data to its investor reporting systems. Prior to Feb. 1, Fannie Mae bridged loan modification data once a month. Now that process is being done daily for a near real-time data transfer of loan modification information. Customers will benefit from the daily data synchronization of Fannie Mae systems and reports. This should provide processing efficiencies and faster closing of modifications.
Delivering on ‘Simple and Certain’
Fannie Mae’s multiple changes for servicers are designed to reduce errors and risk while adding efficiencies and industry-standard best practices.
And these changes shouldn’t have surprised many.
We began communicating about the changes in September 2014 with weekly, monthly, and quarterly customer meetings. Plus, many customers helped test the new investor reporting processes during the last half of 2016.
With servicing themes of simple and certain, it’s clear Fannie Mae will continue to innovate in the servicing space to help customers service loans more efficiently.
Patrick Kopins is director of product development management, Digital Products & Servicing at Fannie Mae.