Fannie Mae: Announcement SVC-2017-04: Servicing Guide Updates
May 10, 2017
Announcement SVC-2017-04: Servicing Guide Updates
The Fannie Mae Servicing Guide has been updated to simplify servicing and make it easier to do business with us. These changes:
- Align with Consumer Financial Protection Bureau rules that impact servicer communication responsibilities, borrower contact and workout attempts, and more.
- Clarify escrow waiver evaluation requirements to promote objective and consistent evaluations using available standard servicing data.
- Expand the eligibility for a mortgage loan modification incentive for a post-bankruptcy mortgage loan by addressing the time gap between reporting a bankruptcy-related delinquency status code and the beginning of the Trial Period Plan.
- Improve our post-delivery servicing transfer approval process by changing Form 629, Request for Approval of Servicing or Subservicing Transfer, submission dates. This will allow a higher level of service from Fannie Mae.
- Establish a collaborative review process between Fannie Mae and servicers before entering into agreements with a government insurer or guarantor. This reduces the risk of indemnification or other penalties related to reduced claim recoveries.
- And more.
Read the Announcement for details.
For a summary of key updates in this Servicing Guide Announcement, view the video presented by Jenise Hight, Director of Servicing Policy.
Duty to Serve Plan posted for comment
This week, Fannie Mae’s proposed Underserved Markets Plan, required by the Federal Housing Finance Agency’s Duty to Serve rule, was published for public comment. The draft Plan addresses the needs of America’s most challenging housing markets and focuses on three key underserved areas: manufactured housing, affordable housing preservation, and rural housing. To learn more, visit our Duty to Serve page to find links to our press release, our video overview, and FHFA.gov, where you can access the draft Plan and submit feedback. FHFA is accepting public comments through July 10.
Enhancements to SMDU coming this weekend
This weekend, Fannie Mae will implement enhancements to Servicing Management Default Underwriter™ (SMDU™), including support for the Fannie Mae Flex Modification, expanded Case Management functionality, and other updates. Please refer to the SMDU Version 7.3 Release Notes for more detailed information. As a reminder, to implement this release, SMDU will be unavailable to process transactions from 10 p.m. ET on Friday, May 12 until 3 p.m. ET on Saturday, May 13. If you have questions about this release, please contact your Fannie Mae Servicing Account Manager.
Impacts to HSSN and SMDU May 13-14
Due to the changes to investor reporting during the weekend of May 13, Fannie Mae recommends delaying case creation and closing from 6 p.m. ET, Saturday, May 13 to 8 a.m. ET, Sunday, May 14 to avoid exceptions as information between our systems may not be synchronized. This recommendation is intended for those who use SMDU Case Management functionality to create HomeSaver Solutions™ Network (HSSN) cases, as well as those creating cases directly on HSSN. Note that XML bulk file submissions for HSSN submitted during this timeframe will be held and processed on Monday, May 15. SMDU Auto Decision is not impacted; SMDU will remain available per the usual availability schedule.
Updated Fannie Mae Standard Modification Interest Rate Adjustment Exhibit
This Exhibit provides the new Fannie Mae Standard Modification Interest Rate required for all Fannie Mae conventional mortgage loan modifications, excluding Fannie Mae HAMP Modifications. Click to view the Exhibit.
Looking for free loss mitigation training? Sign up for a live webinar.
Did you know that Fannie Mae provides participating servicers with free loss mitigation training? Our Know Your Options™ Customer CARE (Connect, Assess, Resolve, and Execute) team will present two live webinars in June. Sign up to learn how to leverage your own servicer model to develop rapport and establish consultative customer relationships, communicate more effectively with borrowers about their options to avoid foreclosure, increase your workout percentage, and more. Learn more and register today.
Knowledge is power: Sign up for the new Servicer Learning Series webinar
Please join us for a new Servicer Learning Series webinar, hosted by the Servicer Support Center. We’ll discuss recent Servicing Guide Announcements, Flex Modification program highlights, SMDU User Interface features, and how to use Fannie Mae Connect to advance Simplifying Servicing™ efforts. This webinar, scheduled for May 22 and June 7, is recommended for general servicing, collections, foreclosure, default prevention, investor reporting, audit, and compliance personnel. Register here to take advantage of this opportunity.
Building toward the future of housing. Read our 2016 Progress Report.
In 2016, we sought to deliver solutions that helped you meet your most important business challenges. We made it easier for you to do business with us. We empowered you to serve your borrowers faster and more simply, with initiatives like Day 1 Certainty™ and Simplifying Servicing. And, we partnered with fintech firms to help bring the digital mortgage closer to reality. Here are some highlights from the report:
- $637 billion in mortgage finances across the country
- 1.1 million home purchases
- 1.4 million mortgage refinances
- 724,000 units of affordable housing
We’re grateful for your business, and we’re working hard every day to earn it. Learn more in our 2016 Progress Report.
We heard your feedback
Last year, we introduced two new formats for presenting our monthly Servicing Guide updates: a video and a recorded presentation, providing different mediums for you to learn about the rationale for policy changes included in our monthly Servicing Guide Announcement. Based on customer feedback, we’ve since expanded our monthly Announcements to include the rationale behind each of our policy changes and, as a result, will discontinue the monthly recorded presentation.
Join us at these upcoming events:
- May 15-16 | Ohio MBA Annual Convention | Columbus
- May 22-23 | Texas MBS Annual Convention | San Antonio
View all events.
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Consumers say their household income is significantly higher than it was a year ago. #HPSI:
Our #DutytoServe plan is now available for review. We look forward to your input:
Source: Fannie Mae