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.