Servicing Guide

Published September 9, 2020

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SMDU™ UI MI Termination Servicer User Guide September 2020 - New as of September 19, 2020

New as of September 19, 2020 (after the implementation of SMDU Release 7.38):

  • Resources feature:  Links to online resources such as the MIT User Guide and the SMDU Portal are located in a new Resources section with the SMDU UI.  Refer to the updated MI Termination Resources for more details.   
  • Links to the MIT User Guide and SMDU Portal currently located in the SMDU UI footer will be retired with SMDU’s October 16, 2020 release.

Important Reminders:

    •  

A servicer may use the SMDU UI to:

  • Update borrower delinquency data, to match what is in the servicer’s system of record, when the delinquency(ies) is attributable to:
    • Disaster event in which the servicer provided disaster relief, a forbearance plan, repayment plan, or Trial
      Period Plan, and the borrower complied with the terms of any such plan;
    • Fannie Mae Payment history is incorrect;
    • Prior borrower of an assumed loan; and/or
    • Servicing transfer
  •  
  • Order a BPO or Appraisal after a loan’s borrower delinquency data has been updated by the servicer to reflect there is no borrower delinquency(ies) and/or the loan is current.
  •  
  • Submit a loan to SMDU, for which the borrower delinquency data was updated by the servicer, to evaluate for MI termination based on the Original Value and/or Current Value of the property.
  • Use the “Disaster Attestation” data field (located on the Loan Details page) to attest to the condition of the subject property after a natural disaster when that disaster occurred two or more years ago.  When the attestation is provided, the AVM, when available, can be used in SMDU’s evaluation of MI termination based on Original Value.  Refer to the data field’s hover text for more information.
  • Evaluate the loan that was assumed less than 24 months ago for MI Termination Based on Current Value or Current Value with Substantial Improvements when the servicer provides the Loan Assumption Date (located on the Loan Details page).
  • Refer to the “Data Update(s) Required” section of this User Guide for how to update Fannie Mae provided data.
  • When an acceptable AVM is not available and the Origination Appraisal (OA) is still valid (per the Fannie Mae Selling Guide section B4-1.2-02), SMDU will use the OA as the property value when evaluating MI Termination based on Original Value. When the OA is used in the evaluation it will be reflected in the Property “As Is” Value Amount and the “Property Valuation Date” will reflect the date of the OA.      
  • SMDU will find a loan Ineligible for MI Termination, and return an applicable failed message, when the loan has been identified as having Lender Paid MI (e.g. Special Feature Code 019).  This applies to loans being evaluated for MI Termination based on Original Value, Current Value and Current Value with Substantial Improvements.
  • SMDU legal disclaimer language reminds servicers that SMDU’s approval or denial is based on the requirements in the Fannie Mae Servicing Guide.  Applicable law may allow termination based on other requirements.
  • When a loan is evaluated for MI Termination Based on Original Value using an AVM, a servicer must include the copy outlined in the SMDU Loan Evaluation and Decision Results section, in the communication to the borrower.
  • A borrower can only appeal a completed property valuation that did not support the termination of MI based on Original or Current Value (SMDU returned an Ineligible decision).  A borrower may not appeal a property valuation that supports MI termination (SMDU returned an Eligible decision). 

Production Support:

For production-related questions and/or information please email: mi_terminations_escalations@fanniemae.com

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