Servicing Guide

Published September 9, 2020

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SMDU™ UI User Guide 7.38 September 2020 (Create Manual Submission, a loan that is evaluated and decisioned outside of SMDU to send a Non-Delegated case to Fannie Mae for Review- Delinquency & Foreclos

See below for sub-topic: Create Manual Submission, a loan that is evaluated and decisioned outside of SMDU to send a Non-Delegated case to Fannie Mae for Review-Delinquency & Foreclosure, Insurance & Escrow and Hardship  

To see other sub-topics for Create Manual Submission, a loan that is evaluated and decisioned outside of SMDU to send a Non-Delegated case to Fannie Mae for Review, please click on any of the topics below:

Create Manual Submission, a loan that is evaluated and decisioned outside of SMDU to send a Non-Delegated case to Fannie Mae for Review- Overview

Create Manual Submission, a loan that is evaluated and decisioned outside of SMDU to send a Non-Delegated case to Fannie Mae for Review- Borrower and Bankruptcy detail

Create Manual Submission, a loan that is evaluated and decisioned outside of SMDU to send a Non-Delegated case to Fannie Mae for Review- Property and Origination details

Create Manual Submission, a loan that is evaluated and decisioned outside of SMDU to send a Non-Delegated case to Fannie Mae for Review-Litigation and Non-Delegated Manual Case Submission

 

Create Manual Submission, a loan that is evaluated and decisioned outside of SMDU to send a Non-Delegated case to Fannie Mae for Review-Delinquency & Foreclosure, Insurance & Escrow and Hardship

Click here to access the interactive Create Manual Submission eLearning module

Delinquency & Foreclosure

Insurance & Escrow

Hardship

L. 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 last paid installment date before capitalization until one month prior to the loan’s expected “Modification Effective Date

  • Note: You must use the interest from the loan’s amortization table versus using the “payoff” method, if you use the “payoff’ method your delinquent interest calculation will most likely never match what SMDU calculates.

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

  • Note: “Other Advances” does 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 the Capitalized Amount provided at the bottom of this page

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

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-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 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 the “Requested Principal Forbearance Amount”, the principal amount the 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 “Capitalized Amount”, the total amount to be capitalized at the time of workout, including accrued interest and all applicable advances (i.e. attorney fee/costs, escrow advances and any other advances needing to be capitalized)

12. Select the “Foreclosure Status” from drop down box

13. 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

14. Select “Foreclosure Sale Date Type” from drop down box, indicates if future foreclosure sale date is estimated or scheduled

15. Enter the “Foreclosure Attorney Contact Name

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

1. If applicable, select the “Mortgage Insurance Company Name” from the drop-down box

2. If applicable, enter the “Mortgage Insurance Coverage Percentage

3. If applicable, enter the “Estimated Hazard Insurance Proceeds”, estimated hazard or flood insurance proceeds

4. 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

5. 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)

6. Enter the “Future Escrow Shortage Monthly Payment” amount, monthly payment amount associated with repayment of escrow account shortages identified during escrow analysis for the loan modification

N. From the left-hand navigation bar select the Hardship link.

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 the hardship “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.

 

Recommended Next Step: Litigation

 

To see other sub-topics for Create Manual Submission, a loan that is evaluated and decisioned outside of SMDU to send a Non-Delegated case to Fannie Mae for Review, please click on any of the topics below:

Create Manual Submission, a loan that is evaluated and decisioned outside of SMDU to send a Non-Delegated case to Fannie Mae for Review- Overview

Create Manual Submission, a loan that is evaluated and decisioned outside of SMDU to send a Non-Delegated case to Fannie Mae for Review- Borrower and Bankruptcy detail

Create Manual Submission, a loan that is evaluated and decisioned outside of SMDU to send a Non-Delegated case to Fannie Mae for Review- Property and Origination details

Create Manual Submission, a loan that is evaluated and decisioned outside of SMDU to send a Non-Delegated case to Fannie Mae for Review-Litigation and Non-Delegated Manual Case Submission

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