Fannie Mae: Lender Letter: Guidance on Credit Report Changes; Impacts to HSSN and SMDU This Weekend
June 14, 2017
Lender Letter LL-2017-02: Guidance on credit report changes
Effective in July 2017, most tax liens and civil judgments will not appear on credit reports. We are providing the following guidance:
- Lenders can continue to rely on the Desktop Underwriter® (DU®) risk assessment and recommendation.
- There will be no changes to our current policy requiring delinquent credit, including judgments and liens, to be paid off at or prior to closing.
- We are not requiring lenders to use sources other than the loan application, credit report, and preliminary title report to identify potential civil judgments and tax liens. We continue to require lenders to address outstanding judgments and liens they become aware of prior to closing.
- We will monitor the effects of the credit report changes to understand how they impact lenders throughout the loan origination process. We ask lenders to share their experiences and feedback with their Fannie Mae customer delivery team.
Review Lender Letter LL-2017-02 for details.
Reminder: Impacts to HSSN and SMDU June 17-18
To avoid exceptions, we recommend delaying case creation and closing from 12 a.m. ET on Saturday, June 17 to 8 a.m. ET on Sunday, June 18, as information between systems may not be synchronized due to changes in investor reporting. This may affect those who use Servicing Management Default Underwriter™ (SMDU™) Case Management functionality to create HomeSaver Solutions™ Network (HSSN) cases, as well as those creating cases directly on HSSN. XML bulk file submissions for HSSN submitted during this timeframe will be held and processed on Monday, June 19. SMDU Auto Decision is not impacted; SMDU will remain available per the usual availability schedule.
We’re celebrating National Homeownership Month
June is National Homeownership Month and we’ll be celebrating all month on social media. Follow us on Twitter, LinkedIn, and Facebook as we highlight industry trends and stories you may want to share with your borrowers. Chime in to tell us how you’re celebrating!
Join us at these events:
- June 19-21 | Motivity Solutions User Conference | Beaver Creek, CO
- June 21-22 | Florida MBA 64th Annual Convention | St. Petersburg
- June 29-30 | MBA of Hawaii Annual State Conference | Honolulu
View all events.
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Source: Fannie Mae