Servicing Guide

Published September 9, 2020

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SMDU™ UI User Guide 7.38 September 2020 (Close Case)

Click here to access the interactive Close Case eLearning module 

 

This section provides instructions on how to close out a case after the trial has been completed and all the final modification documents have been received from borrower.

A. Enter the Fannie Mae 10-digit loan number.

B. If the loan search is successful you will be brought to the Loan Landing page, which features the main actions banner and is comprised of a variety of sections, including the “Recent SMDU Evaluation History.

C. To close out a loan through the SMDU UI select the Close Case icon.

D. The Close Case screen opens.

  • Note:  Servicer is responsible for all data submitted through SMDU to Fannie Mae.
  • Note: Data elements that are already populated with data reflect the information that is currently in Fannie Mae’s Servicing Solution System:
    • If the final evaluation was worked through SMDU, please update the information from the SMDU Final Structuring Results page, from the Delinquent Interest page (i.e. “Other Advances”, “Attorney Fees/Cost”, “Suspense Balance” goes into the “Borrower Contribution” field) and from the Insurance & Escrow page (i.e. add “Estimated Mortgage Insurance Proceeds” and “Estimated Hazard Insurance Proceeds” together and “Escrow  Advances”).
    • If the final evaluation was worked outside of SMDU or was an approved SMDU Second Look, please review and update all applicable fields. SMDU cannot perform a Final Structuring evaluations for approved Second Look cases. 
    • If you use SMDU to evaluate a loan for final terms, then at closing you will need to update the Close Case page to match the terms from the SMDU Final Structuring Results page.  The fields highlighted in yellow below on the SMDU Final Structuring Results page will need to be updated to match the Close Case page, in addition to updating other applicable data fields.  A sample Close Case page is also included below to show what fields need to be updated to match this SMDU Final Structuring Results page.  The examples below show a loan reviewed by SMDU and how the Close Case page appeared originally when opened plus it shows markups from the SMDU Final Structuring Results page and/or green checkmarks indicating the items were reviewed and tied out.

1. Verify and, if applicable, update the loan “Workout Effective Date” (aka Loan Modification Effective Date), to update it you can either manually enter the date (MM/DD/YYYY) or click on the calendar icon to select the date

2. Enter the “Servicer Officer’s Signature Date” (the date the final modification documents were attested by servicer) by entering the date (MM/DD/YYYY) or selecting the date by clicking on the calendar icon

3. Enter the “Final Modification Execution Date” (the date the borrower(s) executed the final modification documents) by entering the date (MM/DD/YYYY) or selecting the date by clicking on the calendar icon

4. Review the “Interest Rate” and if applicable update to match the post-workout approved interest rate used in the loan modification agreement

5. Review the “Remaining Term” and if applicable update to match the approved loan modification amortization term in months (e.g., 240, 360, 480) used in the loan modification agreement

6. Review the “Monthly Principal & Interest” amount and if applicable update to match the post-workout approved monthly principal and interest used in the loan modification agreement

7. Review the modified mortgage “Loan Product Type” and if applicable update to match the loan modification agreement

8. Enter the “Servicing Fee” (0.25%) that will be used in the modification

9. Review and if applicable update the “Borrower Contribution” amount

  • Note: The Borrower Contribution should include any Suspense Balance amount (any partial mortgage payment(s) made by the borrower that the servicer is holding and has not yet applied to the loan) plus any additional contribution the borrower has made.

10. Review and if applicable update the “Estimated Hazard/Flood Insurance Proceeds” amount

  • Note: If loan was reviewed through the SMDU User Interface, this amount is the “Estimated Mortgage Insurance Proceeds” plus the “Estimated Hazard Insurance Proceeds” entered on the Loan & Origination page

11. If applicable, update the “Servicer Contact Name”, the person responsible for working with Fannie Mae on modification

12. If applicable, update the “Servicer Contact Email Address”, the person responsible for working with Fannie Mae on modification

13. If applicable, update the “Servicer Contact Phone Number

14. If applicable, enter the “Servicer Contact Phone Number Extension

15. Select “Yes” or “No” to indicate whether or not the trial plan has been completed

  • Note: Do not mark this “Yes” until everything has been reviewed, updated and completed, once this is marked “Yes” you cannot make any additional changes to this case

16. Select “Yes” or “No” to indicate whether or not you have received the final modification agreement

17. “Last Reported UPB to Fannie Mae” is the loan’s last unpaid principal balance reported to Fannie Mae via Investor Reporting (SURF), if this amount does not match the loan’s pre-workout unpaid principal balance then  you will not be able to close

18. “Principal Forbearance Amount (Previous Modification)” is the loan’s principal forbearance amount from a previous modification previously reported to Fannie Mae via Investor Reporting (SURF)

19. “Reported Last Paid Installment Date” is the loan’s last paid installment date reported to Fannie Mae via Investor Reporting (SURF), if this date does not match the loan’s last paid installment date before capitalization then  you will not be able to close

20. “Pre-Modification Unpaid Principal Balance (At Case Creation)” is the loan’s last unpaid principal balance reported to Fannie Mae via Investor Reporting (SURF) (pre-capitalized unpaid principal balance)

21. Review and if applicable update the “Unreported Owed/Received Principal” amount, this is the principal portion of all contractual payments applied during trial period (this amount might be zero if all trial payments have been reported to Fannie Mae via Investor Reporting (SURF))

  • Note: The “Last Reported UPB to Fannie Mae” plus the “Principal Forbearance Amount (Previous Modification)” should equal the “Current UPB (Before Capitalization)”, if these amounts do not match then you need to calculate the “Unreported Owed/Received Principal” amount by taking the “Pre-Modification Unpaid Principal Balance (At Case Creation)” less the “Last Reported UPB to Fannie Mae” less the “Principal Forbearance Amount (Previous Modification)”.  This amount cannot be a negative number.   

 22. “Current UPB (Before Capitalization)” is the unpaid principal balance at time of the final modification eligibility determination, excluding any existing forbearance

  • Note: This amount should equal the “Last Reported UPB to Fannie Mae” plus the “Principal Forbearance Amount (previous Modification)” listed under the Investor Reporting Data Source section.  If the amounts do not match then you will need to perform the calculation outlined in the Notes section of #22 above. 

23. “Capitalized Amount” is the total amount to be capitalized in the loan modification, including accrued interest and other advances, as applicable

  • Note:  This amount is auto calculated on the Closed Case page, if the amount is not correct then it most likely means that you need to make updates in either or both the Breakdown of Capitalized Interest or Breakdown of Capitalized Advances sections. 

24. Review and if applicable update the “Requested Principal Forbearance Amount”, the principal amount servicer is requesting be deferred

25.  “New Modified UPB” is the final modification unpaid principal balance (capitalized unpaid principal balance)

26. Review and if applicable update the “Unreported Owed/Received Interest” amount, this is the interest portion of all contractual payments applied during trial period (this amount should be zero if all trial payments have been reported to Fannie Mae via Investor Reporting (SURF))

27. Review and if applicable update the “Last Paid Installment Date Before Capitalization”, this is the calculated projection of the last paid installment date as of the end of the Trial Plan Period and for which all trial payments have been applied as contractual payments to the existing loan

28. Review and if applicable update the loan’s “Delinquent Interest” for capitalization, amount of delinquent interest from the loan’s final last paid installment date to one month prior to the Workout Effective Date

29. Enter the “Borrower/MI/Hazard Contribution to Delinquent Interest” amount, for capitalization

30. Review and if applicable update “Delinquent Interest Comments

31. “Breakdown of Capitalized Interest” is the final calculated delinquent interest amount for capitalization

32. Review and if applicable update the loan’s “Attorney Fees/Costs”, the amount that will be capitalized

33. Review and if applicable update the loan’s “Escrow Advances” amount, any amount based off final escrow analysis already paid by servicer that will be capitalized

34. Review and if applicable update the loan’s “Other Advances , this amount includes all “other” items that should be capitalized (e.g., property preservation, notary fees, etc.)

  • Note: “Other Advances should not include Delinquent Interest, Attorney Fees/Cost or Escrow Advances since each of these amounts, if applicable, are captured in their own respective data field for capitalization.
  • Note:  Be sure to enter zeroes into any field that do not have an amount at closing.

35. Enter Borrower/MI/Hazard Contribution to Advances” amount, for capitalization

36.  “Breakdown of Capitalized Advances” is the final calculated advance amount for capitalization

  • Note: Closing a Fannie Mae Extend Modification for Disaster Relieve (Extend Mod) Case:  Servicer should enter zeroes into the following four fields: 
      1. Delinquent Interest
      2. Borrower Contribution
      3. Borrower/MI/Hazard Insurance Contribution to Delinquent Interest” 
      4. Borrower/MI/Hazard Insurance Contribution to Advances

E. Close Case:  Once you have entered and reviewed all the data and are ready to close the case click the Close Case button.   

F. Case Closure will result in the one of the following:

1. Successful Case Closure: If the case submission is successfully submitted to Fannie Mae then you will receive a “Case Closed” message, and the case status will reflect “Closed” 

2. Unsuccessful Case Closure: If the case submission is not successfully submitted to Fannie Mae then you will receive a validation error message highlighted in red at the top of the page, and you will need to review the message and take appropriate measures to clear the error

  • Note: This validation message is letting you know that the “Borrower Contribution” entered does not equal the “Borrower/MI/Hazard Insurance Contribution to Delinquent Interestplus the “Borrower/MI/Hazard Insurance Contribution to Advances”.  These amounts must tie out, you will need to make the applicable update(s) and reselect the “Close Case” button in order to resubmit your case request to Fannie Mae. 
  • Note:  If you receive a message that the case did not closed but moved into an “Approved” status we recommend you review the details on the Case Overview screen to determine if any of the details at closing were incorrectly entered.  If something was entered incorrectly then we recommend that you cancel the case and resubmit.    If you receive any of the following errors, you may need to cancel and resubmit the case in order to retify the applicable error(s):
    • ​​​​​The UPB or LPI do not match SIR, if this is the case you will want to review the last reported UPB and LPI that your servicing shop has reported to Fannie Mae.  If you did your final evaluation through SMDU then the “Last Paid Installment Date Before Capitalization” and the “Unpaid Principal Balance Pre-Workout” from the SMDU Final Structuring Results  page should match what has been reported.  If not, then you should update through your investor reporting group, cancel and resubmit the case following the Cancel Case and Resubmitting a Cancel Case, both can be found in the Table of Contents. 
    • ​If you receive a Principal & Interest (P&I) message indicating that the P&I does not match Fannie Mae’s calculation then you will want to review the “Monthly Prinicpal & Interest” entered on the Close Case page to ensure it matches the SMDU Final Structuring Results page.  If the P&I was not updated on the Close Case page then you may receive this error message.  Remember the data displayed on the Close Case page represent what was initially reported to Fannie Mae during the trial, so you must update all applicable fields prior to closing.  If the capitalization (advances and delinquent interest amounts less contribution) on the Close Case page do not match the SMDU Final Structuring Response page then the P&I calculated by Fannie Mae during your close case submission may not match and trigger this error.   Additionally, if you have reported all your payments to Fannie Mae then you need to make the “Unreported Owed/Received Interest” field under the Breakdown of Capitalized Interest section is zeroed out. 
    • If you receive a Delinquent Interest message indicating the delinquent interest does not match Fannie’s calculation then you will want to review the “Modification Effective Date”, the “Last Paid Installment Date Before Capitalization” and the “Delinquent Interest” enter on the Close Case page to ensure it matches the  SMDU Final Structuring Results page.  If the delinquent interest was not updated on the Close Case page then you may receive this error message.  Remember the data displayed on the Close Case page represent what was initially reported to Fannie Mae during the trial, so you must update all applicable fields prior to closing.
    • If you cannot identify the issue then you will need to complete the Close Case Template.  In order to obtain a copy of this template contact the Servicing Solution Center.  Once the template has been completed you will need to email it to the the Home Retention Solutions group at loss_mitigation@fanniemae.com.  

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