Servicing Guide

Published October 14, 2020

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SMDU™ UI User Guide 7.39 October 2020 (Create Manual Case Submission, a loan that is evaluated and decisioned outside of SMDU to report a Delegated case to Fannie Mae )

Create Manual Case Submission, a loan that is evaluated and decisioned outside of SMDU to report a Delegated case to Fannie Mae 

Click here to access the interactive Create Manual Submission eLearning module

This section provides instruction on how to create a Delegated Manual Submission case for a loan in which:

  • SMDU was not used to evaluate or decision the loan for a modification; and
  • Servicer approved the workout using their Delegation of Authority.

A. Search for the loan by using 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 create a case for a Delegated loan modification select the Create Manual Submission icon.

 

D. The Create Manual Submission page opens, select the applicableCampaign Name of the delegated loan modification you want to create by clicking on the drop-down box. 

  • Note: The available list of Campaign Names is user specific.  This means only those Campaigns that the user has permission to access/submit will be presented in the drop-down box
  • Note:  In our example we are selecting the Flex Mod with BRP MTMLTV >= 80% (3 Month Trial)

E. The Create Manual Submission page will then expand to reveal a variety of data elements.  You must complete all applicable data elements on this initial page. 

 

    1. Enter your calculated “Scheduled Trial Payment Amount”, the monthly payment amount that borrower will have to

pay during trial period to qualify for workout

    1. Enter the first “Scheduled Trial Payment Due Date” by entering the date (MM/DD/YYYY) or selecting the date by

clicking on the calendar icon

    1. Enter the payment amount submitted by borrower for first “Actual Trial Payment Amount
    2. Enter the date the borrower made the first “Actual Trial Payment Due Date” by entering the date (MM/DD/YYYY) or

selecting the date by clicking on the calendar icon

    1. Enter your justification and/or comments supporting your decision in Servicer’s Workout Comments
    2. Enter “Servicer Evaluation Dateby entering the date (MM/DD/YYYY) or selecting the date by clicking on the calendar icon, this is the date you evaluated the loan for a modification
    3. Enter the loan “Workout Effective Date” by entering the date (MM/DD/YYYY) or selecting the date by clicking on

the calendar icon

    1. Enter the post-workout Interest Rate” that will be used for the loan modification
    2. Enter the post-workout Amortization Term” in months (e.g., 240, 360, 480)
    3. Enter the post-workout Monthly Principal & Interest” that will be used for the loan modification
    4. Select the post-workout modified mortgage “Loan Product Type” from the drop-down box

                     Note: FRM equals Fixed Rate Mortgage.

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

F.  After you have completed the initial Create Manual Submission page you will need to complete the data elements that reside within the various links on the left side of the page (aka the “left-hand navigation bar”). Each link brings you to pages that allow you to enter data. You can navigate through the different links in any order, but you are responsible for completing all applicable data.

  • Note:  The links to the Bankruptcy, Prior Workout History and Litigation pages are grayed out as you do not have to complete to submit a delegated manual submission.

G. From the left hand navigation bar select the Borrowers link. 

  1.  

1. Select “Yes” or “No” to indicate whether or not the borrower submitted a complete Borrower Response Package (BRP) before the 90th day of delinquency

2. If available, enter the borrower’s “Representative Credit Score

3. Select “Yes” or “No” to indicate whether or not the borrower currently occupies property as their primary residence

4. To add an additional borrower click the “+Add Borrower” link and then enter all details for each additional borrower by following steps 2 and 3 noted above

  • Note:  Each borrower is designated with a different color for servicer identification purposes
  • Note:  You can delete a borrower.  If you delete Borrower One, then Borrower Two becomes Borrower One
  • Note:  You can enter up to six borrowers
  • Note:  When submitting a manual submission, you do not need to complete the Assets, Income and Expenses sections since the data is collected in standalone fields below these sections

5. In lieu of completing Income, enter one lump sum amount for borrower(s)’ total household income in the “Total Monthly Income” field

Note: For a DELEGATED case submission provide NET income

6. Select either “Gross” or “Net” from the “Total Monthly Income Type” drop down box

Note:  The “Total Monthly Income Type” field is defaulted to “Gross”, but can be changed to “Net” via the drop-down box

7. In lieu of completing Expenses, enter one lump sum amount for all borrower(s)’ expense in the “Total Monthly Expenses” field

H. From the left-hand navigation bar select the Property link. 

1. Enter complete physical “Property Address” as previously reported to Fannie Mae

2. If applicable, enter physical “Property Address (Line 2)” as previously reported to Fannie Mae

3. Enter the “Property City” as previously reported to Fannie Mae

4. “Property State” is provided, if not correct then investor reporting (SURF) needs to be updated

5. Enter the five digit “Property Zip Code” as previously reported to Fannie Mae

6. Select the current “Property Occupancy Status” from drop-down box

Note: “Property Occupancy Status” and item 3 from the Borrowers page, which indicates if the borrower currently occupies the property as their primary residence, should correlate

7. Select “Intended Property Usage” from drop-down 

8. Select “Current Property Usage” from drop-down

Note: It is important that your responses to “Intended Property Usage” and “Current Property Usage” are consistent with one another, refer to examples below: 

Example One: If you selected “Occupy as Primary Residence” under the “Intended Property Usage then in the “Current Property Usage you should select “Principal Residence”

Example Two: If you selected “Retain as Second Home” or “Investment Property” under the “Intended Property Usage then in the “Current Property Usage you should select “Investment Property” or “Second or Vacation Home”

OR

9. Select the “Property Number of Units” from drop-down 

10. Select “Yes” or “No” to indicate whether or not there are any known structural or environmental problems with subject property

11. For the “Property Valuation Date” enter if blank or override if auto-populated with current date to match the date you used during your evaluation of the loan by entering the date (MM/DD/YYYY) or selecting the date by clicking on the calendar

12. Select the current “Property Valuation Type” used during your evaluation from the drop-down box   

  • Note:   When “AVM (Servicer Provided)” is selected the SMDU UI will not populate the Property Valuation Date nor the Property “As Is” Value.

13. For “Property “As Is Value”  enter if blank or update if auto-populated with current date’s valuation to match the value you used during your evaluation

  • NoteSMDU may pull in the Automated Valuation Model (AVM) “Property Valuation Date”, “Property Valuation Type” and “Property “As Is” Value”, if the valuation data doesn’t match what you used in your evaluation then enter in your values.
  • Note: The “AVM” value, unless “AVM (Servicer Provided}” is selected, previously reported to Fannie Mae will be updated every time a user searches for a loan, clicks on “Open” on the Loss Mit Loan Manager View page or exits the Property page. This data is automatically populated in the SMDU UI.

I. From the left hand navigation bar select the Loan & Origination link. 

  1. Last Reported UPB to Fannie Mae” is the loan’s last unpaid principal balance reported to Fannie Mae via Investor Reporting (SURF)
  2. If applicable, enter the “Unreported Owed/Received Principal”, this is the difference between the “Reported Last Unpaid Principal Balance” and the “Last Unpaid Principal Balance” on your servicing system at the time of evaluation, this does NOT include any existing forbearance amount
  3. Reported Last Paid Installment Date” is the loan’s last paid installment date reported to Fannie Mae via Investor Reporting (SURF)
  4. Enter the loan’s “Last Paid Installment Date” by entering the date (MM/DD/YYYY) or selecting the date by clicking on the calendar icon from, this date comes from your servicing system at the time of evaluation
  5. If SMDU provides an “MBS Pool Identifier” then you know the loan is in a pool and will need to be removed prior to closing out the case
  • Note: Servicers wishing to modify a loan should make a manual reclass request if the loan has not been scheduled for automatic reclassification.
  • To reclassify the MBS loan in the current month, you must make the manual reclass request between the 16th calendar day of the previous month and the 15th calendar day of the current month. The MBS loan will be moved from scheduled/scheduled to actual/actual effective the 1st business day of the following month. 
  • Manual reclass requests must be completed in HSSN.  You can access the HSSN Manual Reclass Request job aid by clicking on the following URL:                                                                     

https://www.fanniemae.com/content/job-aid/hssn/topic/rec001_request_a_manual_reclass.htm

  1. Enter 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
  2. Enter the current (pre-workout) scheduled “Monthly Principal & Interest” payment amount
  3. Enter the post-workoutMonthly Real Estate Taxes” amount, based on the projected escrow analysis
  4. Enter the post-workout  “Monthly Association Dues/Fees” amount, based on the projected escrow analysis
  5. Enter the post-workout  “Monthly Hazard Insurance” amount, based on the projected escrow analysis
  6. Enter the post-workout  “Monthly Flood Insurance” amount, based on the projected escrow analysis
  • Note:  A projected escrow analysis may be used for calculating the trial and a final escrow analysis must be used for calculating the final loan modification
  1. Enter the “Servicer Contact Name”, the person responsible for working with Fannie Mae on modification
  2. Enter the “Servicer Contact Email Address”, the person responsible for working with Fannie Mae on modification
  3. Enter the “Servicer Contact Phone Number
  4. If applicable, enter the “Servicer Contact Phone Number Extension

J. From the left-hand navigation bar select the Delinquency & Foreclosure link.

1. Enter the loan’s “Delinquent Interest” for capitalization, amount of delinquent interest from the loan’s expected final last paid installment date before capitalization until one month prior to the loan’s expected “Workout Effective Date

  • Note: You must use the interest from the loan’s amortization table versus using the “payoff” method.

2. Enter the “Other Advances for Capitalization”, includes all other items that may need to be capitalized (e.g., property preservation, notary fees, etc.)

  • Note:  “Other Advances for Capitalizationdoes not include Delinquent Interest, Attorney Fees/Cost or Escrow Advances, each of these amounts are captured in their own respective standalone data fields and need to be included in your calculated capitalized amount.

3. Enter the estimated “Attorney Fees/Costs”, the amount that will be capitalize

4. Enter the “Number of times the borrower has been exactly 30 days delinquent within the last six months

  • Note: During the last months of delinquency reporting, indicate the number of times the borrower has been exactly one month past due
  • Note:  When a loan is less than sixty days delinquent and a servicer does not provide the “Number of times the borrower has been exactly 30 days delinquent within the last six months” (a required data field for IDE) in the SMDU Request, SMDU will derive that number. If a servicer does provide the number in the SMDU Request, SMDU will use the servicer-provided number in the IDE evaluation. The number used by SMDU for the IDE will be returned in the SMDU Response.

Review the four different scenarios to help aid you in completing this data element. 

Example 1:

In this example, at the beginning of January the loan has a due date of 01/01/2018. This makes the loan current, zero month’s delinquent, and is not considered 30 days delinquent in January. At the beginning of February, the borrower had not made their January payment. As a result, this makes the loan one-month delinquent, which is considered 30 days delinquent. At the beginning of March, the borrower had not made their January payment. As a result, the loan due date remains 01/01/2018. This makes the loan two months delinquent, which is considered 60 days delinquent. No payments were made in April, May or June, therefore the loan due date remains 01/01/2018. The loan in April is three months delinquent (90 days delinquent); in May is four months delinquent (120 days), and in June is five months delinquent (150 days). None of those months qualify as a 30-day delinquency. Therefore, for the six-month period from 01/01/2018 to 06/01/2018, the borrower is considered to have experienced one 30-day delinquency and the “Number of times the borrower has been exactly 30 days delinquent within the last six months” should be populated with a value of one. 

Example 2:

In this example, at the beginning of January the loan has a due date of 01/01/2018. This makes the loan current, zero month’s delinquent, and is not considered 30 days delinquent in January. At the beginning of February, the borrower had not made their January payment. As a result, this makes the loan one month delinquent, which is considered 30 days delinquent. At the beginning of March, the borrower had not made their January payment. As a result, the loan due date remains 01/01/2018. This makes the loan two months delinquent, which is considered 60 days delinquent. A payment was made in March, which advanced the due date to 02/01/2018 at the beginning of April. However, since the loan is still two months delinquent, this is still considered to be 60 days delinquent. In May the loan is current and remains current in June. Therefore, for the six month period from 01/01/2018 to 06/01/2018, the borrower is considered to have experienced one 30 -ay delinquency and the “Number of times the borrower has been exactly 30 days delinquent within the last six months” should be populated with a value of one.

Example 3:

In this example, at the beginning of January the loan has a due date of 01/01/2018. This makes the loan current, zero month’s delinquent, and is not considered 30 days delinquent in January. At the beginning of February, the borrower had not made their January payment. As a result, this makes the loan one-month delinquent, which is considered 30 days delinquent. At the beginning of March, the loan still has a due date of 0101/2018. This makes the loan two months delinquent, which is considered 60 days delinquent.  A payment was made in March, which advances the due date to 02/01/2018 at the beginning of April. However, since the loan is still two months delinquent, this is still considered to be 60 days delinquent. In April the loan is brought current and is now due for the May payment. No payments are received in May and at the beginning of June the loan has a due date of 05/01/2018, making the loan one-month delinquent, which is considered to be 30 days delinquent. Therefore, for the six-month period from 01/01/2018 to 06/01/2018, the borrower is considered to have experienced two 30-day delinquencies and the “Number of times the borrower has been exactly 30 days delinquent within the last six months” should be populated with a value of two.

Example 4:

In this example, at the beginning of January the loan has a due date of 11/01/2017. This makes the loan two months delinquent, which is considered 60 days delinquent. In January, one payment has been received, which advanced the due date to 12/01/2017. However, since the loan is still two months delinquent, this is still considered to be 60 days delinquent. In February the payments are brought current and remain current through June. Therefore, for the six-month period from 01/01/2018 to 06/01/2018, the borrower is considered to have experienced no 30-day delinquencies and the “Number of times the borrower has been exactly 30 days delinquent within the last six months” should be populated with a value of zero.

5. Enter the “Borrower Contribution”, any partial mortgage payment(s) made by the borrower that the servicer is holding and has not yet applied to the loan (aka unapplied funds)

  • Note: The “Borrower Contribution” amount should equal the “Borrower/MI/Hazard Insurance Contribution to Delinquent Interest” plus the “Borrower/MI/Hazard Insurance Contribution to Advances”.

6. Enter “Requested Principal Forbearance Amount”, the principal amount servicer is requesting be deferred

7. If applicable, enter the “Borrower/MI/Hazard Insurance Contribution to Delinquent Interest” amount, for capitalization

8. If applicable, enter the “Unreported Owed/Received Interest” amount, this is the interest portion of all contractual payments to be applied during trial period

9. If applicable, enter “Delinquent Interest Comments

10. If applicable, enter the “Borrower/MI/Hazard Insurance Contribution to Advances” amount, for capitalization

11. Enter the “Projected Foreclosure Sale Date” by entering the date (MM/DD/YYYY) or selecting the date by clicking on the calendar icon, projected or actual date property went/goes to foreclosure sale at public auction

K. From the left-hand navigation bar select the Insurance & Escrow link.

1. Enter the “Escrow Advances” amount for capitalization, any amount based off the projected escrow analysis already paid by the servicer and any escrow advances the servicer expects to pay during the trial period

2. Enter the “Current Escrow Shortage Monthly Payment” amount, monthly payment amount associated with current repayment of escrow account shortages (before escrow analysis is completed for the loan modification)

L. From the left-hand navigation bar select the Hardship link, you will need to complete this page. 

1. Select hardship “Reason” from drop-down box

  • Note: You are responsible for ensuring that the hardship reason(s) reported to Fannie Mae is consistent with the hardship reason(s) contributing to the borrower’s need for loss mitigation evaluation. You should report all hardships documented in the borrower’s Mortgage Assistance Application Form 710. Additionally, you may report any other contributory hardships based on documented conversations or other documentation provided by the borrower.

2. If applicable, enter the hardship “Start Date” by entering the date (MM/DD/YYYY) or selecting the date by clicking on the calendar icon, required for all hardships

3. If applicable, enter hardship’s “End Date” by entering the date (MM/DD/YYYY) or selecting the date by clicking on the calendar icon, required for Short Term/Temporary hardship durations

  • Note: If you are working on a solicitation and you select “Unknown - Borrowers Response Package Not Required” as the hardship reason then you do not enter dates nor the primary hardship duration.
  • Note:  If the “Primary Hardship Duration” is short term/temporary then you need to enter both start and end dates
  • Note:  If the “Primary Hardship Duration” is long term or permanent then you need to enter a start date but not an end date.

4. To add an additional hardship click the “+Add Additional Hardship” link and then enter all details for each additional hardship by following steps 1-3 noted above

5. Select the “Primary Hardship Duration” from drop down box

  • Note: Form 710 asks the borrower to define their hardship duration(s) as either short term (under six months), medium term (6 -12 months) or long term/permanent (greater than 12 months). Long term and permanent hardship durations are treated the same by SMDU since the Fannie Mae Servicing Guide policies uses them interchangeably.

M. Submit the Delegated Manual Submission to Fannie Mae:  Once you have entered and reviewed all the data and are ready to submit the case click the Create Manual Submission button.

N. Case Submission will result in one of the following:     

1. Successful Case Creation: If the delegated manual submission is successfully submitted to Fannie Mae then you will receive a “Case Sent to Fannie Mae” message, and the case status will reflect “Trial”. 

  • Note: To view the case data elements used to create the delegated manual submission select the View link next to “Manual Submission Data”.

2. Unsuccessful Case Creation: If the delegated manual 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: In the screenshot above the message is letting you know that you need to update borrower’s income.  Once updated you will need to reselect the “Create Manual Submission” button to resubmit your case request to Fannie Mae for review.

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