Fannie Mae Utilizes Technology to Achieve Housing Goals

Investor Update
September 24, 2015

Fannie Mae has built a strong and flexible technology organization in order to help the Enterprise more efficiently achieve its goals, which are to help provide people with access to affordable mortgage credit and to reduce risk to the taxpayer, according to a commentary from Bruce Lee, SVP and Chief Information Officer at Fannie Mae.

“When we announced in December 2014 that Fannie Mae would again purchase loans with as little as 3 percent down payments, our technology organization worked to update our systems quickly so that lenders could begin delivering these loans to us within days,” Lee said. “Thousands of families have benefited from this loan option.”

Today, various Fannie Mae technology tools that run on an interconnected technical infrastructure are used by lenders and servicers to help at-risk borrowers prevent foreclosure, to underwrite mortgage loans, and to subsequently check the quality of those loans.

Those tools include:

  • Desktop Underwriter (DU), which has been used for more than 20 years, and has been continually enhanced during that time. DU is a comprehensive underwriting system that helps lenders evaluate loans and determine if those loans meet the credit risk standards and eligibility criteria set forth by Fannie Mae. It has helped lenders provide mortgages to millions of Americans at an increased speed and lower cost.
  • Collateral Underwriter (CU), which builds on the success of DU. It helps reduce risk for Fannie Mae and lenders by helping lenders evaluate appraisals for loans and ensuring values are appropriate and property information is accurate. Lee said that CU “is a key part of building a stronger housing system for the future. We recently integrated CU with DU to further support our lenders’ risk management and underwriting capabilities.”
  • EarlyCheck helps lenders identify potential problems earlier in the process, which provides greater certainty that the loan will meet Fannie Mae’s eligibility requirements. Lenders who use EarlyCheck have the opportunity to fix potential issues prior to selling the loan to Fannie Mae, which reduces the risk of repurchase.
  • Servicing Management Default Underwriter (SMDU) helps those who service Fannie Mae loans determine what loss mitigation options are available to borrowers who are struggling to make mortgage payments. With SMDU, servicers can make real-time decisions to help those borrowers prevent foreclosure through any number of loss mitigation options (loan modifications, short sales, repayment plans).

Technology is also playing a key role in reducing Fannie Mae’s risk profile, Lee said.

“In order to build our Connecticut Avenue Securities (CAS) offering, which allows investors to take some of the credit risk that Fannie Mae traditionally held on loans in its book of business, we had to build a new set of tools, platforms, and reporting capabilities,” he said. “In addition, technologies such as Desktop Underwriter and Collateral Underwriter help to reduce risk on the loans that Fannie Mae acquires. These tools have been instrumental in transferring a portion of the credit risk on nearly $400 billion of mortgages since 2013.”

Source:

DS News

Fannie Mae Technology Solutions Page

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CEO

Alan Jaffa

Alan Jaffa is the Chief Executive Officer for Safeguard Properties, steering the company as the mortgage field services industry leader. He also serves on the board of advisors for SCG Partners, a middle-market private equity fund focused on diversifying and expanding Safeguard Properties’ business model into complimentary markets.

Alan joined Safeguard in 1995, learning the business from the ground up. He was promoted to Chief Operating Officer in 2002, and was named CEO in May 2010. His hands-on experience has given him unique insights as a leader to innovate, improve and strengthen Safeguard’s processes to assure that the company adheres to the highest standards of quality and customer service.

Under Alan’s leadership, Safeguard has grown significantly with strategies that have included new and expanded services, technology investments that deliver higher quality and greater efficiency to clients, and strategic acquisitions. He takes a team approach to process improvement, involving staff at all levels of the organization to address issues, brainstorm solutions, and identify new and better ways to serve clients.

In 2008, Alan was recognized by Crain’s Cleveland Business in its annual “40-Under-40” profile of young leaders. He also was named a NEO Ernst & Young Entrepreneur Of The Year® Award finalist in 2013.

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Esq., General Counsel and EVP

Linda Erkkila

Linda Erkkila is the General Counsel and Executive Vice President for Safeguard Properties, with oversight of legal, human resources, training, and compliance. Linda’s broad scope of oversight covers regulatory issues that impact Safeguard’s operations, risk mitigation, strategic planning, human resources and training initiatives, compliance, insurance, litigation and claims management, and counsel related to mergers, acquisition and joint ventures.

Linda assures that Safeguard’s strategic initiatives align with its resources, leverage opportunities across the company, and contemplate compliance mandates. She has practiced law for 25 years and her experience, both as outside and in-house counsel, covers a wide range of corporate matters, including regulatory disclosure, corporate governance compliance, risk assessment, compensation and benefits, litigation management, and mergers and acquisitions.

Linda earned her JD at Cleveland-Marshall College of Law. She holds a degree in economics from Miami University and an MBA. Linda was previously named as both a “Woman of Influence” by HousingWire and as a “Leading Lady” by MReport.

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Michael Greenbaum

Michael Greenbaum is the Chief Operating Officer of Safeguard Properties, where he has played a pivotal role since joining the company in July 2010. Initially brought on as Vice President of REO, Mike’s exceptional leadership and strategic vision quickly propelled him to Vice President of Operations in 2013, and ultimately to COO in 2015. Over his 14-year tenure at Safeguard, Mike has been instrumental in driving change and fostering innovation within the Property Preservation sector, consistently delivering excellence and becoming a trusted partner to clients and investors.

A distinguished graduate of the United States Military Academy at West Point, Mike earned a degree in Quantitative Economics. Following his graduation, he served in the U.S. Army’s Ordnance Branch, where he specialized in supply chain management. Before his tenure at Safeguard, Mike honed his expertise by managing global supply chains for 13 years, leveraging his military and civilian experience to lead with precision and efficacy.

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CFO

Joe Iafigliola

Joe Iafigliola is the Chief Financial Officer for Safeguard Properties. Joe is responsible for the Control, Quality Assurance, Business Development, Marketing, Accounting, and Information Security departments. At the core of his responsibilities is the drive to ensure that Safeguard’s focus remains rooted in Customer Service = Resolution. Through his executive leadership role, he actively supports SGPNOW.com, an on-demand service geared towards real estate and property management professionals as well as individual home owners in need of inspection and property preservation services. Joe is also an integral force behind Compliance Connections, a branch of Safeguard Properties that allows code enforcement professionals to report violations at properties that can then be addressed by the Safeguard vendor network. Compliance Connections also researches and shares vacant property ordinance information with Safeguard clients.

Joe has an MBA from The Weatherhead School of Management at Case Western Reserve University, is a Certified Management Accountant (CMA), and holds a bachelor’s degree from The Ohio State University’s Honors Accounting program.

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Business Development

Carrie Tackett

Business Development Safeguard Properties