After being developed and tested over the past three years, ""Fannie Mae"":http://www.fanniemae.com/portal/index.html announced the broad release of a tool that helps to streamline foreclosure prevention efforts.[IMAGE]
According to a release, Fannie Mae's Servicing Management Default Underwriter (SMDU) tool enables mortgage servicers to work faster and provide better customer service to homeowners as they work to prevent foreclosure. The tool serves as a counterpart to Fannie Mae's Desktop Underwriter and works by assessing a homeowner's financial situation and determining what foreclosure prevention options are available.
Through the new technology, servicers can more quickly implement Fannie Mae policy changes.[COLUMN_BREAK]
Furthermore, the tool allows servicers to make real-time calls to Fannie Mae's business rules as they collect information from homeowners. SMDU also lets the servicer know if the homeowner is eligible for streamlined processing for any loss mitigation option, which can shorten the process by weeks. Servicers who use the tool are guided with scripts for more consistency and better customer servicer.
""SMDU addresses several challenges the servicing industry has faced in recent years by eliminating a manual and resource-intensive process for servicers while improving accuracy and consistency,"" said Leslie Peeler, SVP of Fannie Mae's national servicing organization.
Peeler also explained that while adoption of the tool is voluntary, SMDU will be required at some point in the near future.
""SMDU serves the interests of homeowners, servicers and taxpayers. The bottom line is that we want servicers to prevent as many foreclosures as possible and provide excellent service,"" she added.
In 2012, Fannie Mae completed over 275,000 foreclosure prevention workouts, of which 163,412 were loan modifications, while another 73,528 were short sales.
More information on the tool can be found on ""Fannie Mae's website."":https://www.fanniemae.com/singlefamily/servicing-management-default-underwriter Servicers may also learn more by contacting their Fannie Mae Servicing Portfolio Manager.