Fannie Mae Announces Simplifying Servicing™ Initiative
February 15, 2017, Fannie Mae published Servicing News announcing Fannie Mae’s Simplifying Servicing™. The announcement highlights a new user interface for the SMDU workout decisioning tool, investor reporting enhancements, relief from post-foreclosure expenses and Flex Modification to assist borrowers. To view the Servicing News in its entirety, including the summaries highlighted below:
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.
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
Please refer to the Servicing News announcement for additional important information.
Bankers Advisory, a CliftonLarsonAllen LLP Division, provides mortgage servicing assessments covering agency rules, state/federal compliance and MERS. To discuss our services and request a complimentary copy of our “2016 Mortgage Servicing Rules Implementation Guide” call Marissa Blundell, JD, Principal & COO at 781-402-6406 or email firstname.lastname@example.org.