Fannie Mae: Servicing Guide Updates Announced
February 15, 2017
We’re Simplifying Servicing for our customers!
Did you hear the news? Today, we announced how Fannie Mae is Simplifying Servicing™. Customers told us about their concerns with the complex servicing environment. We listened. We’re driving toward Simplifying Servicing with exciting opportunities for a better customer experience, available today:
- SMDU™ is now easily available to all servicers! A new user interface (SMDU UI) allows the industry-leading SMDU workout decisioning tool to be used by all servicers at no cost to deliver certainty, speed, and savings in loss mitigation. Register to attend a webinar and learn more!
- The just-launched investor reporting enhancements eliminate monthly work for servicers and bring efficiency to our customers’ servicing activities.
- Relief from post-foreclosure expenses. For all new REO properties, Fannie Mae will assume responsibility for HOA negotiations and payments as of April 1, 2017 and tax payments as of July 1, 2017.
- Flex Modification gives customers an easier, flexible way of helping more borrowers in all stages of delinquency qualify for loan modifications.
Across the servicing lifecycle — whether it’s technology, policy, or operations — we’re working to simplify the process for our customers and driving toward a clear vision for the future. Learn more about these and the other ways we’re Simplifying Servicing for our customers.
Announcement SVC-2017-02: Servicing Guide updates
The Fannie Mae Servicing Guide has been updated with the following changes, several of which will simplify servicing:
- Relieves servicers of responsibility for paying most post-foreclosure taxes and homeowners’ association, condo, or co-op fees and assessments for acquired properties. This change will reduce costs and operational risk for servicers.
- Removes the requirement to report Transaction Type 80 for subservicing arrangements to reduce servicer responsibilities, increase data integrity, and improve the accuracy of subservicing data.
- Provides for flexible use of IRS Form 4506-T or 4506T-EZ in workout options, reducing documentation requirements in many situations and avoiding unnecessary delays.
- Updates the definition of a breach of Lender Contract related to servicer eligibility with Fannie Mae.
- Updates guidelines for confidentiality of information and data breach to protect nonpublic personal information and reduce the need for stand-alone non-disclosure agreements.
- And more.
Read the Announcement for details.
For a summary of key updates in this Servicing Guide Announcement, view the video presented by Bill Cleary, Vice President of Single-Family Servicing Policy & Solutions.
Fannie Mae Connect enhancements and new reports
Fannie Mae Connect™ has been enhanced to make it easier to use and to incorporate new and updated reports.
Reports that have been added to Fannie Mae Connect are:
- Outstanding and Completed Title Issues for Servicers
- Remittance Detail Guaranty Fee
- Remittance Detail Principal and Interest
- LAR 83 Projection and Tracking
- Loan Activity Summary
Two reports have been renamed:
- Loan Readd renamed Loan Reinstatement
- Loan Readd Detail Report-Monthly renamed Loan Reinstatement Detail Report-Monthly
Several servicing reports have been replaced by reports in an updated format. Refer to the Release Tracker and Report Directory (both available to Fannie Mae Connect users) for report descriptions and details. For more information on Fannie Mae Connect, including demos, quick tips and training, please visit the Fannie Mae Connect web page.
Technology changes implemented to support Changes to Investor Reporting
Several technology changes supporting the Fannie Mae Changes to Investor Reporting were implemented on February 14. February Loan Activity Reporting is now available. This release also eliminated the requirement for servicers to report MBS security balances to Fannie Mae and aligned investor reporting dates. Please review the Release Notes for details. For more information, visit the Fannie Mae Changes to Investor Reporting page.
Get the latest on Changes to Investor Reporting: February Webinars
Several all-servicer webinars related to Changes to Investor Reporting are available in February. To register, visit our web page or click on the links below.
February Reporting/Transition Month Hot Topics: February 21 at 2 p.m.
Investor Reporting Training: Loan Mod/Loan Re-class: February 23 at 2 p.m.
February Reporting/Transition Month Hot Topics: February 28 at 2 p.m.
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Announcing two significant steps toward #SimplifyingServicing. Live demos @ #MBAServicing17. Details:
Congratulations to @D2_Duncan & Kimberly Johnson on being recognized in the @MortgageProUSA #MPAHot100 list!
Source: Fannie Mae