Servicing Guide

Published September 9, 2020

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SMDU™ UI User Guide 7.38 September 2020 (Evaluate for a Workout using SMDU - Property and Origination details)

See below for sub-topic: Evaluate for a Workout using SMDU - Property and Origination details  

To see other sub-topics for Evaluate for a Workout, please click on any of the topics below:

Evaluate for a Workout using SMDU - Overview  

Evaluate for a Workout using SMDU - Borrower and Bankruptcy details

Evaluate for a Workout using SMDU - Delinquency & Foreclosure, Insurance & Escrow and Hardship

Evaluate for a Workout using SMDU - Prior Workout History and Litigation

 

Recommended Next Step: Property

Click here to access the interactive Evaluate for a Workout eLearning module

Item Property

Item Loan & Origination

G. 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 “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 five digit “Property Zip Code” as previously reported to Fannie Mae

6. Select “Property Type” from drop-down box

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

  • Note: “Property Occupancy Status” and item six from the Borrowers’ page (“Does borrower currently occupy property as primary residence?”) must correlate.

8. Select “Intended Property Usage” from drop-down box

  • NoteTo evaluate a borrower’s eligibility for a liquidation, select “Sell or Do Not Retain” in the drop-down for “Intended Property Usage

9. Select “Current Property Usage” from drop-down box

  • 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

10. Select “Property Number of Units” from drop-down box

11. Select “Property Condition” from drop-down box

12. Select “Yes” or “No” to indicate whether there are any known structural or environmental problems with subject property

13. Enter the “Property Valuation Date” used during your evaluation by entering the date (MM/DD/YYYY) or selecting the date by clicking on the calendar icon

14. Select the “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 or the Property “As Is” Value.

15. Enter the “Property “As Is” Value”  used during your evaluation

  • Note: SMDU may pull in the Automated Valuation Model (AVM) “Property Valuation Date” 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 Cards View page or exits the Property page. This data is automatically populated in the SMDU UI.
  • Note: Property valuation information (“Property Valuation Date” and “Property "As Is" Value”) will not be updated when this information is provided by the servicer and one of the following “Property Valuation Types” are selected: AVM (Servicer Provided), Interior Broker Opinion/BPO, Interior Appraisal, Exterior Opinion/BPO, or Exterior Appraisal.
  • Note: “Property Valuation Date”, “Property Valuation Type” and “Property “As Is” Value” may be pulled in from the Automated Property System (APS). If the property valuation is not available or has a low confidence score you will receive a message and will need to enter in a property valuation on the Property page and resubmit to SMDU for an evaluation.

16. Enter the “Property Repair Cost” required to bring the property to a good and habitable condition

17. “If Investment Property, provide market rental amount”, if applicable

Recommended Next Step:  Loan & Origination

H. 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. Enter the “Loan Unpaid Principal Balance”, the principal balance from your servicing system at the time of evaluation, this does NOT include any existing forbearance amount

3. If applicable, enter the “Existing Forbearance” amount associated with a prior workout

4. If applicable, enter the “Subordinate Financing Unpaid Principal Balance” amount

5. “Reported Last Paid Installment Date” is the loan’s last paid installment date reported to Fannie Mae via Investor Reporting (SURF)

6. 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

7. Enter the current “Loan Maturity Date

8. Enter the scheduled “Remaining Term” in months from the date of submission regardless of any delinquency

  • Note: For EMODs SMDU will derive the loan's pre-modification remaining term (in months) and use the calculated amount, regardless of what is entered.   If servicers provided "Remaining Term" is different than the value derived by SMDU, the following message will be returned in the SMDU Response:  “The value provided by the servicer for the Loan Remaining Term is not equal to the SMDU Derived value. SMDU has used its derived value of [Parametric Value] in the modification evaluation. (Message ID 5710)”.
  • Note:  For all other modification types “Remaining Term” you need to calculate the number of months from the evaluation current month until the loan’s maturity date.

9. Enter the current contractual “Interest Rate

  • Note:  Enter thecurrent contractual interest rate on your servicing system based on the date of submission, not based on the last paid installment date.
  • Note:   SMDU does not calculate delinquent interest for a loan that is declared by the servicer as currently receiving relief from the Servicemembers Civil Relief Act (SCRA). Therefore, servicers must include the contractual interest rate, not the rate adjusted by the relief the borrower is receiving through SCRA for SMDU to evaluate the loan for a workout.

10. For Adjustable Rate Mortgage (ARM) and Step-Rate loans enter the expected contractual interest rate at the next rate change date in the “Next ARM Reset Rate” field if the reset date is within the next 120 days.

  • Note:  If the date is outside the 120 days, or it is a Fixed-Rate Interest Only loan, where the loan is still in the interest only period, report the loan pre-workout interest rate.
  • For ARM loans and Step-rate loans, the “Next ARM Reset Rate” provided should be the expected contractual interest rate at the next rate change date, whenever the next rate change date is within 120 days from the date of the submission to SMDU. 
  • The contractual interest rate is not determined by the due date of the loan.

11. For an ARM, Step-Rate or Fixed-Rate Interest-Only loans enter the contractual “Next ARM Reset Date” by entering the date (MM/DD/YYYY) or selecting the date by clicking on the calendar icon

  • For an ARM loan, the date on which the next contractual ARM interest rate reset is due to occur, not based on the last paid installment date.
  • For a Fixed-Rate Interest-Only loan where the loan in which the interest-only period, enter the date the loan will begin to amortize. This should not be provided if the due date of the loan is on or after the date the loan became fully amortizing.
  • For Step-Rate loans where the loan has reached the last step period, report the date the loan reached the last step period.

Note:  “Next ARM Reset Rate” and “Next ARM Reset Date”:

  • The “Next ARM Reset Rate” and “Next ARM Reset Date” fields should be provided when the pre-workout amortization type of a loan is either:
    • ARM (Adjustable Rate Mortgage)
    • Step-rate (modified previously into a step rate schedule)
    • Fixed rate loans that are in the interest only payment schedule

See scenarios below to assist in understanding the values to provide for these two fields:

Product Type

Loan Status

Next ARM Reset Rate

Next ARM Reset Date

ARM

Next Rate Change < 120 days

Next available rate

Payment due date based on  the next ARM rate

ARM

Next rate change > 120 days

Current contractual rate

Payment due date based on  the next ARM rate

Fixed Interest only

Interest only end date is after the next due date

Current contractual rate

Date when the loan begins to amortize

Fixed Interest only

Interest only end date is on or before the next due date

Do not report

Do not report

Step

Next Rate Change < 120 days

Next step rate

Payment due date based on the next step rate increase

Step

Next Rate Change > 120 days

Current contractual rate

Payment due date based on the next step rate increase

Step

Due date reflects a payment due based on the final step rate

Current contractual rate

Payment due date based on the last step rate increase

12. Enter the “Lifetime Interest Rate Cap for ARM Loan”, this is the lifetime cap or maximum interest rate permissible per the loan’s origination documents; however, if the loan has already reached its final interest rate adjustment you do not need to provide this information

13. Enter the “Final Interest Rate for Step-Rate Loan”, if the loan has already reached its final step you do not need to provide this information

14. 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

15.  Enter the “Date of Original Note

16. Enter the current scheduled “Monthly Principal & Interest” payment amount

Note:   SMDU does not calculate delinquent interest for a loan that is declared by the servicer as currently receiving relief from the Servicemembers Civil Relief Act (SCRA). Therefore, servicers must include the contractual Monthly Principal & Interest amount, not the amount adjusted by the relief the borrower is receiving through SCRA for SMDU to evaluate the loan for a workout.

17. Enter the “Pre-Workout Monthly Mortgage Insurance” amount, the monthly  payment for private mortgage insurance based on current escrow analysis (recent/latest used to calculate current escrow amounts)

18. Enter the “Post-WorkoutMonthly Mortgage Insurance” amount, the monthly  payment for private mortgage insurance based on projected escrow analysis

19. Enter post-workoutMonthly Real Estate Taxes” amount, based on the projected escrow analysis

20. Enter post-workoutMonthly Association Dues/Fees” amount, based on the projected escrow analysis

21. Enter post-workoutMonthly Hazard Insurance” amount, based on the projected escrow analysis

22. Enter post-workoutMonthly Flood Insurance” amount, based on the projected escrow analysis

23. SMDU will automatically calculate the “First Trial Payment Due Date” during the evaluation if this field is left blank. This date can also be entered manually (MM/DD/YYYY) or by clicking on the calendar icon. SMDU will not accept an odd due date or a due date more than two months in the future.

  • Note:   If a date is not provided by the servicer SMDU will base the “First Trial Payment Due Date” on the date of the evaluation by SMDU.
    • If the evaluation date is before the 16th of the current month, the “First Trial Payment Due Date” will be set for the first day of the next month. For example: A loan evaluated by SMDU on April 3, 2019, would have a first-trial payment date of May 1, 2019.
    • If the evaluation date is on or after the 16th of the current month, the “First Trial Payment Due Date” will be set as first month following the next month. A loan evaluated by SMDU on April 27, 2019, would have a first trial payment date of June 1, 2019.

24. SMDU will automatically calculate the “Scheduled Payment Due Date” when “Last Paid Installment Date” (item “6”) is entered.

25. Enter in the “Scheduled Monthly Principal Payment” amount based off the loan’s current amortization table

  • Note:   When submitting an Interest Only loan you will need to enter zero into each of the four Scheduled Monthly Principal Payment fields.  

26. Enter in the “Scheduled Monthly Interest Payment” amount based off the loan’s current amortization table

27. Enter in the “Scheduled Total Monthly Payment” amount based off the loan’s total contractual payment

  • Note: The “Scheduled Total Monthly Payment” amount is the total contractual payment the borrower must pay at the time evaluation to advance the Last Paid Installment date by one month. This amount must include monthly mortgage insurance and any escrowed items (if any), excluding late fees

28. Enter the “Servicer Contact Name

29. Enter the “Servicer Contact Email Address

30. Enter the “Servicer Contact Phone Number

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

Recommended Next Step: Delinquency & Foreclosure

 

See below for sub-topic: Evaluate for a Workout using SMDU - Property and Origination details

To see other sub-topics for Evaluate for a Workout, please click on any of the topics below:

Evaluate for a Workout using SMDU - Overview

Evaluate for a Workout using SMDU - Borrower and Bankruptcy details

Evaluate for a Workout using SMDU - Delinquency & Foreclosure, Insurance & Escrow and Hardship

Evaluate for a Workout using SMDU - Prior Workout History and Litigation

 

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