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:

Servicing News

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.

February 15 Servicing Guide Announcement 2017-02

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  marissa@bankersadvisory.com.

  • 781-402-6415

Anna DeSimone founded Bankers Advisory in 1986 and is a nationally recognized authority in residential mortgage lending. She has received numerous industry awards and has authored more than 40 best practices guides and hundreds of articles.

Comments are closed.

Subscribe to Our Email List

* indicates required