News Release - Fannie Mae Tool Streamlines Foreclosure Prevention Efforts | Fannie Mae

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News Release

May 07, 2013

Fannie Mae Tool Streamlines Foreclosure Prevention Efforts

Keosha Burns

202-752-7840

WASHINGTON, DC – Fannie Mae (FNMA/OTC) introduced Servicing Management Default Underwriter™ (SMDU™), a tool to help mortgage servicers work faster and more consistently with homeowners to prevent foreclosure.  This technology, a counterpart to Fannie Mae’s widely used Desktop Underwriter® for mortgage originations, breaks new ground by evaluating a homeowner’s financial situation and determining what options are available to prevent foreclosure.

“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, Senior Vice President of Fannie Mae’s National Servicing Organization. “So far, adoption has been voluntary and we are pleased a number of leading technology providers and servicing partners have implemented SMDU. There are several large servicers working towards adoption this year. Servicers should anticipate that adoption 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.”

SMDU was developed and tested over the past three years to help ensure homeowners receive accurate and timely assistance.  Servicers who adopt SMDU experience faster speed to implementation of Fannie Mae policy changes. This tool allows servicers to make real-time calls to Fannie Mae's business rules as they collect information from homeowners. SMDU informs the servicer when the homeowner is eligible for streamlined processing for any loss mitigation option, which can eliminate weeks from the process. Servicers are guided through the tool with scripts to promote consistency and improve customer service. These elements translate to cost savings and improved service to homeowners.

For more information about SMDU, including access options and a list of servicers that have adopted the tool, please visit Fannie Mae's website. Servicers may also learn more by contacting their Fannie Mae Servicing Portfolio Manager.

In 2012, Fannie Mae completed over 275,000 foreclosure prevention workouts, including 163,412 loan modifications, 73,528 short sales, 23,329 forbearances and repayment plans and 15,204 deeds-in-lieu of foreclosure.  Fannie Mae has helped over 1.2 million families avoid foreclosure since 2009.

Fannie Mae enables people to buy, refinance, or rent a home.

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