Fannie Mae: Top FAQs for Borrower-Initiated MI Termination Using SMDU
February 6, 2019
Source: Fannie Mae (full FAQs)
Frequently Asked Questions
Updated policy requirements for the borrower-initiated termination of conventional mortgage insurance (MI) will simplify the process of evaluating borrower-initiated requests for MI termination. This streamlined process will deliver a better customer experience for both servicers and borrowers. Listed below are frequently asked questions related to the implementation of the MI termination policy using Servicing Management Default Underwriter™ (SMDU™).
Servicers are encouraged to implement the MI termination policy based on Original Value as early as Jan 1, 2019, and MI termination policy based on Current Value as early as March 1, 2019, (when the capability to do so using SMDU becomes available); however, implementation is required by September 1, 2019.