MBS News and Announcements

Fannie Mae's SMDU Supports Loss Mitigation Efforts

Fannie Mae continues to work with its servicers to assist homeowners with disaster relief efforts as a result of the 2017 hurricane season. Our Servicing Management Default Underwriter™ (SMDU™) tool, unique to Fannie Mae and available to our servicers for free, simplifies the eligibility determination for Fannie Mae’s loss mitigation programs, enabling servicers to confidently provide faster workout decisions to homeowners who are at risk of foreclosure, and for whom time is of the essence.

Recently, Fannie Mae has experienced an increase in the amount of prepayments in its single-family MBS pools for loans located in Florida, as illustrated in the factors that Fannie Mae released for the February through April time period. When servicers report an intent to modify a loan, it results in the loan being removed from the trust as long as the loan is four or more months delinquent. This action results in a prepayment to the MBS. This increase beginning in February, approximately four months after the hurricanes impacted the area, is consistent with an increase in servicers requesting modifications to assist borrowers with home retention solutions.