Servicing Guide

Published October 14, 2020

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SMDU™ UI User Guide 7.39 October 2020 (Create a Short Sale Case Using an SMDU Evaluation of Short Sale Eligibility)

Create a Short Sale Case Using an SMDU Evaluation of Short Sale Eligibility 

This section provides instructions on how to create a short sale case for which SMDU evaluated the borrower’s eligibility for a short sale. 

Note: A short sale case may be created for a loan SMDU evaluated regardless of whether SMDU determined the borrower was eligible or ineligible for a short sale.

Things to know before getting started:

  • For a short sale case Fannie Mae will continue to email the decision and applicable details to the servicer contact provided in the case creation details.
  • To view the case details of a successfully created short sale case you must do so via HSSN.
    • Note: The ability to view case details via the SMDU UI will be implemented in a future SMDU UI release.
  • If an active case exists then you will not be able to create a new case in HSSN/DARTS until the current case has been completed or cancelled.
    • Note: If a case exists then the Create Short Sale icon will be grayed out and non-accessible

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

B. If the loan search is successful you will be brought to the Loan Landing screen, which features the main actions banner and is comprised of a variety of sections.   

C. Review the “Recent SMDU Evaluation History” section. This section helps you determine if the loan has been evaluated by SMDU.  

Note:  Click on the “View” link to see the SMDU response bar (see example below). 

Note: If the SMDU Short Sale Decision is “Conditionally Qualified” (results shows a blue question mark as illustrated in the screen shot below. Click on the blue question mark to determine what data may need to be updated and then resubmit the loan to SMDU for another evaluation. To make updates to the data you may need to go to the “Evaluate for Workout” instructions.

 

 

  • Note:  Generally, if you have an approved modification and the short sale (PFS) and Mortgage Release (DIL) results show as “Conditionally Qualified” as in the example above, then you may want to select the Property link from the left-hand navigation bar and change the “Intended Property Usage” from “Occupy as Primary Residence” to “Sell or Do Not Retain”.   If this is the case then your short sale (PFS) and Mortgage Release (DIL) will move from “Conditionally Qualified” to “Eligible”, as in the example below.

 

 

  • If you click on the green checkmark above PFS then you can see the SMDU Trial Structuring Results calculated for an eligible PFS (short sale).   Below the SMDU calculated results are passed messages, which are not included in screenshot. 

 

D. You have two options when entering a short sale case:

  1. You can use the latest call to SMDU from the Recent SMDU Evaluation History section; or
  2. You can activate an earlier call to SMDU by selecting the “View” link from the Recent SMDU Evaluation History section

An orange bar will appear below the header section and you will need to select the “Activate Evaluation” to have SMDU pull in all the details from the applicable structuring trial call.

E. To create a case for short sale select the Create Short Sale icon.

F. The Create a Short Sale (PFS) Case screen opens.  You are responsible for completing and/or updating all applicable data.

NoteYou can also hover your cursor over the name of the respective data field to read the definition

 

1.Request Information:  Select “Yesto indicate you will use the SMDU short sale being displayed when submitting your short sale case to Fannie Mae.

  • NoteThe Create Short Sale (PFS) Case page is pre-populated with the SMDU Unique Identifier and corresponding data from the latest SMDU evaluation (this SMDU Unique Identifier will match with the one for the latest evaluation listed in the "SMDU Evaluation History”), unless you activated an earlier evaluation call to SMDU (see E2 above).  If you want to proceed with using this evaluation, select “Yes” to the question noted above and proceed with entering and/or updating the applicable data.
  • Note:   If you do not want to use the latest SMDU evaluation, but instead use a prior SMDU evaluation to create the short sale case then from this page complete the following steps:
    • Click on the Evaluation History icon
    • Identify the SMDU evaluation call you want to use to create your short sale case and select the applicable “View” link, which will bring up an orange banner bar that will appear toward the top of your screen
    • Select the “Activate Evaluation” link, this will populate the Create Short Sale (PFS) Case page with the data form the activated evaluated
    • Click on the Create Short Sale icon
    • The Request Information section will now be populated with newly activated SMDU evaluation’s SMDU Unique Identifier and corresponding data
    • Select “Yes” to the question noted above and proceed with entering and updating the applicable data

Note: The above noted instructions can also be accessed by clicking on the information icon

Things to know before updating data:

  • If the loan was evaluated by SMDU then the following data fields do not yet appear on the Create Short Sale (PFS) Case screen, if you need to review these amounts and/or make updates click on the green check mark above PFS and the left-hand navigation bar will become visible.  Select the applicable page to review and/or update data originally provided in the SMDU evaluation:
    • Loan & Origination: “Existing Forbearance
    • Delinquency & Foreclosure: “Other Advances ”, “Attorney Fees/Cost”, “Suspense Balance
    • Insurance & Escrow: “Escrow Advances
  • Data elements used in the SMDU evaluation will be pre-populated on the Create Short Sale (PFS) Case page, except for the items listed above. If any of these data elements need to be updated, including the ones listed above, you will need to resubmit to SMDU for an evaluation. 
  • Once the data field(s) is updated, the loan must be resubmitted to SMDU to render an updated evaluation decision.   After all updates are made you will need to select the “Submit to SDMU for Evaluation”.
  • Once you have successfully resubmitted the loan to SMDU for evaluation, click on the “Create Short Sale” icon.  
  • The “Request Information” section should display the SMDU Unique Identifier of the new SMDU evaluation.
  •  Click “Yes” to the question: “Do you want to create a Short Sale Case using a SMDU decisioned result?
  • The updated data element(s) should be pre-populated on the page.  Remember the items listed in the first bullet of this section are not yet visible on the Create a Short Sale (PFS) Case page. 
  1. Loan Details:  If applicable, update the “Loan Unpaid Principal Balance”, the current principal balance from your servicing system at the time of case creation, this does NOT include any existing forbearance amount
  2. Loan Details:  If applicable, update the “Last Paid Installment”, by entering the date (MM/DD/YYYY) or selecting the date by clicking on the calendar icon, this date comes from your servicing system at the time of case creation
  3. Property:  If applicable, update the complete physical “Property Address” (should match what was previously reported to Fannie Mae in SURF)
  4. Property:  If applicable, enter or update the physical “Property Address (Line 2)” (should match what was previously reported to Fannie Mae in SURF)
  5. Property:  If applicable, update the “Property City” (should match what was previously reported to Fannie Mae in SURF)
  6. Property: Property State” is provided, if not correct then investor reporting (SURF) needs to be updated before you submit the case
  7. Property:  If applicable, update the five digit “Property Zip Code” (should match what was previously reported to Fannie Mae in SURF)
  8. Property:  Enter the “Property Repair Cost” required to bring the property to a good and habitable condition 
      • Note:   This amount must be determined by an internal property inspection that was conducted within the last 90 days.
  9. Property:  If applicable, update answer by selecting “Yes” or “No” to indicate whether there are any known structural or environmental problems with subject property
  10. Property:  If applicable, update current “Property Occupancy Status” from drop-down box
  11. Property:  If applicable, update current “Intended Property Usage” from drop-down box
  12. Property Valuation: If applicable, update the “Property “As Is” Value” determined by the valuation method used (e.g. BPO)
  13. Property Valuation: If applicable, update the “Property Valuation Type” from the drop-down box
  14. Property Valuation:  If applicable, update the “Property Valuation Date” by entering the date (MM/DD/YYYY) or selecting the date by clicking on the calendar icon
      • Note:   If the property valuation data is greater than 90 days then you will need to get an updated BPO
      • Note:  SMDU may pull in the Automated Valuation Model (AVM) “Property “As Is” Value”, “Property Valuation Type” and “Property Valuation Date”.  When this happens override this information with details from the BPO and/or Appraisal.
      • Note:  The property valuation data provided during a loan modification evaluation is usually from an AVM, remember short sales might require a different type of evaluation.
  15. Property Valuation: Enter the “LMV As Repaired Value Amount”, this amount is usually included on the BPO
  16. Foreclosure:  If applicable, enter the “Projected Foreclosure Sale Date” from drop-down box
  17. Foreclosure:  If applicable, select the “Foreclosure Sale Date Type” from drop-down box
  18. Servicer Recommendation:  Enter the “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 short sale
  19. Servicer Recommendation:  Select “Yes” or “No” to indicate whether servicer recommends approving the short sale
  20. Servicer Recommendation:  Enter your justification and/or comments supporting your recommendation in Servicer Workout Comments
  21. Servicer Recommendation:  Enter any additional comments supporting your recommendation in Servicer General Comments
  22. Borrower Contribution:  Enter “Borrower Contribution”, which is the cash contribution the borrower will contribute to cure outstanding balance
  23. Escrow/Hazard Insurance: Enter the current “Escrow Payment” collected as part of regular monthly mortgage payment to cover, on behalf of the mortgagee, periodic payments of property taxes and hazard insurance
  • Note:  Private mortgage insurance payments and escrow shortage amounts should be excluded from the total “Escrow Payment” amount.
  1. Escrow/Hazard Insurance: If applicable, enter the “Estimated Hazard Insurance Proceeds”, estimated hazard or flood insurance proceeds (if no proceeds you MUST enter a $0.00)
  2. Escrow/Hazard Insurance: If applicable, enter the “Escrow Balance”. Enter escrow shortages as a negative number.
  3. Servicer Contact Information: If applicable, enter or update the "Servicer Contact Name", the person responsible for working with Fannie Mae on modification
  4. Servicer Contact Information: If applicable, enter or update the "Servicer Contact Email Address", the person responsible for working with Fannie Mae on modification
  5. Servicer Contact Information: If applicable, enter or update the "Servicer Contact Phone Number"
  6. Servicer Contact Information: If applicable, enter or update the "Servicer Contact Phone Number Extension"
  7. Hardship:  If applicable, select or update the hardship “Reason” from dropdown 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 assistance. 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.
  1. Hardship:  If “Disaster” is the hardship reason, you must enter the FEMA “Disaster Name
  2. Hardship:  If applicable, enter “Hardship Reason Comments” you want to communicate to Fannie Mae
  3. Borrower Details:  Enter the “Total Monthly Expenses Pre-Workout
  4. Borrower Details:  Enter Borrower One’s “First Name”
  5. Borrower Details:  Enter Borrower One’s “Last Name”
  6. Borrower Details:  If applicable, update or select “Yes” or “No” to indicate if Borrower One has ever filed for bankruptcy
  7. Sale Details:  Enter the “Gross Sales Price”, the projected or actual sales price of the property in the sales contact
  8. Sale Details:  Enter the “Full Name of Buyer” buying the property
  9. Sale Details:  Enter the gross “Purchase Offer Amount” received by servicer for subject property
  10. Sale Details:  Enter the “Purchase Offer Received Date”, by entering the date (MM/DD/YYYY) or selecting the date by clicking on the calendar icon
  11. Sale Details:  Enter the “Purchase Offer Closing Date” referenced in the purchase offer received by servicer, by entering the date (MM/DD/YYYY) or selecting the date by clicking on the calendar icon
  12. Sale Details:  Enter the “Net Sales Proceeds Amount” from purchase offer
  13. Closing Costs and Details:  Enter the “Sale Agent Count”, the number of real estate agents involved in the short sale transaction (count should include the buyer and seller agents)
  14. Closing Costs and Details:  Enter the total “Amount of Borrower Relocation Assistance” seller is receiving from all parties
  15. Closing Costs and Details:  Select the “Buyer Financing Type” from the drop-down box
  16. Closing Costs and Details:  Enter the “Broker Commission”, the amount the broker will receive for negotiating the short sale for the subject property
  17. Closing Costs and Details:  Select “Yes” or “No” to indicate if the agents representing the seller and the buyer are from the same real estate agency
  18. Closing Costs and Details:  Under “Type of Closing Cost” select applicable cost associated with closing the short sale for the subject property
  19. Closing Costs and Details:  Enter the “Closing Cost Amount” for selected closing cost type
  20. Closing Costs and Details:  If applicable, enter “Closing Cost Comments” for selected closing cost

 

  1. Subordinate Lien:  If applicable, enter the “Subordinate Lien Negotiated Release Amount”, the total negotiated amount of other lien(s) that are being released because of payments being made to the lien holders from the short sale proceeds

G. Submit the short sale case to Fannie Mae:  Once you have entered and reviewed all the data and are ready to submit the case click the Create a Short Sale Case button.

 

 

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

    1. Successful:  If the short sale submission is successfully submitted to Fannie Mae then you will receive a “Case Sent to Fannie Mae” message, and the case status will reflect “PFS - Awaiting Review”, indicating the case has been placed in Fannie Mae’s queue for review.

  • Note:  The case status will change as it moves through the subsequent steps of the Fannie Mae review process:
            • An “In Review” status means the case is being reviewed by a Fannie Mae REAM Representative.

 

            • An “Approved” or “Declined” status means the case has been decisioned by a Fannie Mae REAM Representative.  An email will be sent to the servicer contact who created the case detailing Fannie Mae’s recommendation and applicable details.

  • Note:  To view the case details you must do so via HSSN.  This functionality will be available via the SMDU UI in a future release.
  • Note:  A Fannie Mae REAM representative will email their recommendation and applicable details to the person who submitted the Create a Short Sale Case.
  1. 2. Unsuccessful Case Creation:  If the short sale submission is not successfully submitted to Fannie Mae, you will receive a validation error message highlighted in red at the top of the page. Review the message and take appropriate measures to clear the error before resubmitting the case.

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