Create a Mortgage Release™ Using a SMDU Evaluation of Mortgage Release Eligibility
This section provides instructions on how to create a Mortgage Release case for which SMDU evaluated the borrower’s eligibility for a Mortgage Release.
- Note: A Mortgage Release case may be created for a loan SMDU evaluated regardless of whether SMDU determined the borrower was eligible or ineligible for a Mortgage Release.
Things to know before getting started:
- For a Mortgage Release case Fannie Mae will continue to email the decision and applicable details to the servicer contact provided in the case creation details.
- Case details of a successfully created Mortgage Release can be viewed in HSSN. This functionality will be available in the SMDU UI prior to the retirement of HSSN.
- If an active case exists, the Create Mortgage Release icon will be grayed out and the current case must be completed or cancelled before a new one can be created.
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 to 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 Mortgage Release 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 DIL then you can see the SMDU Trial Structuring Results calculated for an eligible Mortgage Release. Below the SMDU calculated results are passed messages, which are not included in screenshot.
D. You have two options when entering a Mortgage Release case:
- You can use the latest call to SMDU from the Recent SMDU Evaluation History section; or
- 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 mortgage release select the Create Mortgage Release icon.
F. The Create Mortgage Release (DIL) Case screen opens up, you are responsible for completing and/or updating all applicable data.
- Note: You can also hover your cursor over the name of the respective data field to read the definition.
1. Request Information: Select “Yes” to indicate you will use the SMDU Mortgage Release being displayed when submitting your Mortgage Release case to Fannie Mae
Note: The Create Mortgage Release (DIL) 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. 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 Mortgage Release 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 Mortgage Release case and select the applicable “View” link, which will bring up an orange banner bar near the top of your screen
- Select the “Activate Evaluation” link to populate the Create Mortgage Release (DIL) Case page with the data form the activated evaluated
- · Click on the Create Mortgage Release 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:
- When using a prior SMDU evaluation, the following data fields will not appear on the Create Mortgage Release (DIL) Case page. Click the green checkmark above DIL to review and update these data fields using the left-hand navigation.
- Property: “Property Repair Cost”
- Loan & Origination: “Loan Unpaid Principal Balance”, “Last Paid Installment Date”, Existing Forbearance”
- Delinquency & Foreclosure: “Other Advances”, “Attorney Fees/Cost”, “Suspense Balance”
- Insurance & Escrow: “Escrow Advances”
- All other data elements used in the SMDU evaluation will be pre-populated on the Create Mortgage Release (DIL) Case page.
- Once the data is updated, click the “Submit to SMDU for Evaluation” button to update the evaluation.
- Once you have successfully resubmitted the loan to SMDU for evaluation, click on the “Create Mortgage Release” 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 Mortgage Release Case using a SMDU decisioned result?”
- The updated data element(s) will be pre-populated on the page.
Note: Data elements 2-6 should match the data reported to Fannie Mae via SURF.
2. Property: If applicable, update the complete physical “Property Address”
3. Property: If applicable, enter or update the physical “Property Address (Line 2)”
4. Property: If applicable, update the “Property City”
5. Property: “Property State”. If this is incorrect investor reporting (SURF) needs to be updated before submitting the case
6. Property: If applicable, update the five digit “Property Zip Code”
7. Property: Select from the dropdown “Are there any known structural or environmental problems?”
8. Property: Select from the dropdown “Intended Property Usage”
9. Property Valuation: Enter the “LMV As Repaired Value Amount”, this amount is usually included on the BPO
10. Property Valuation: Enter the “Market Value Analysis Company Name” that completed the property valuation
11. Property Valuation: Enter the “Market Value Analysis Preparer Name” that completed the property valuation
12. Property Valuation: If applicable, enter “Market Value Analysis Comments” you wish to convey to Fannie Mae
13. Property Valuation: If applicable, enter any “Recommended Repair Description” provided in the property valuation
14. Foreclosure: If applicable, enter the “Projected Foreclosure Sale Date”
15. Foreclosure: If applicable, enter the “Foreclosure Sale Date Type”
16. Servicer Recommendation: Enter "Servicer Workout Comments" to support your recommendation
17. Servicer Recommendation: Enter "Servicer General Comments" with any additional information and/or comments
18. Delinquency Fees and Costs: Enter the estimated “Attorney Fees/Costs” not included in the escrow for Other Advances
19. 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
- Escrow/Hazard Insurance: Enter the current “Escrow Balance”
- Servicer Contact Information: If applicable, enter or update the "Servicer Contact Name", the person responsible for working with Fannie Mae on modification
- Servicer Contact Information: If applicable, enter or update the "Servicer Contact Email Address", the person responsible for working with Fannie Mae on modification
- Servicer Contact Information: If applicable, enter or update the "Servicer Contact Phone Number"
- Servicer Contact Information: If applicable, enter or update the "Servicer Contact Phone Number Extension"
- Hardship: If applicable, select or update the 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 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.
- Hardship: If “Disaster” is the hardship reason, you must enter the FEMA “Disaster Name”
- Hardship: If applicable, enter “Hardship Reason Comments” you want to communicate to Fannie Mae
- Borrower Details: Enter the “Total Monthly Expenses (Pre-Workout)”
- Borrower Details: Enter Borrower One’s “First Name”
- Borrower Details: Enter Borrower One’s “Last Name”
- Closing Costs and Details: If applicable, enter any “DIL Data Comments” you need to convey to Fannie Mae
- Closing Costs and Details: If applicable, select “Yes” or “No” to indicate if the rental assignment agreement has been received
- Closing Costs and Details: If applicable, select “Yes” or “No” to indicate if there is a reason to waive the 90-day listing requirement
- Subordinate Lien: If applicable, enter the “Subordinate Lien” information
- Litigation: Select “Yes” or “No” to indicate if there is an additional lien on the property which would prevent a DIL workout
G. Submit the Mortgage Release Case to Fannie Mae: Once you have entered and reviewed all the data click the Create Mortgage Release Case button.
H. Case Submission will result in one of the following:
1. Successful: If the non-delegated Mortgage Release submission is successfully submitted to Fannie Mae then you will receive a “Case Sent to Fannie Mae” message, and the case status will reflect “DIL - Awaiting Review”, indicating the case has been placed in queue for review by a Fannie Mae REAM Representative.
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 under review.
- 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: Case details can be viewed in HSSN. This functionality will be available in the SMDU UI prior to the retirement of HSSN.
Note: A Fannie Mae Mortgage Release representative will email their recommendation and applicable details to the person who submitted the Create Mortgage Release Case.
2. Unsuccessful Case Creation: If the mortgage release submission is not successfully submitted to Fannie Mae a validation error message highlighted in red wll be displayed at the top of the page. Review the message and take appropriate measures to clear the error before resubmitting the case for review.