Servicing Management Default Underwriter (SMDU)
SMDU™ is an industry leading, multi-prong application used by servicers for loss mitigation evaluation and case reporting activities as well as for evaluating a borrower’s request to terminate conventional mortgage insurance. With a variety of business functionalities within one SMDU application, servicers benefit from operational efficiencies, saving time and money, reducing risks, and enhancing service to homeowners.
- SMDU: Loss Mitigation: SMDU streamlines workout decisioning and case reporting to Fannie Mae, allowing you to easily make real-time workout decisions with confidence and offer the best solution to struggling homeowners. Available via SMDU User Interface (UI) and/or via B2B integration to SMDU.
- SMDU: Loss Mitigation Valuations: SMDU simplifies the process of ordering a property’s Automated Valuation Model (AVM) estimated value and confidence score for loan modifications and Mortgage Release™ and/or retrieving the results of a loss mitigation valuation request for a Short Sale, Mortgage Release and/or Reserve Price Bid Instructions. Available only via SMDU User Interface (UI).
- SMDU: Borrower-Initiated Request to Terminate Mortgage Insurance: SMDU makes it easy to evaluate borrower requests to terminate conventional mortgage insurance based on the Original Value and/or Current Value of the property. Available via SMDU User Interface (UI) and APIs.
Loss Mitigation Features
Use SMDU to perform a variety of loss mitigation-related activities:
- Evaluating a loan for retention workout and/or borrower eligibility for a Short Sale and Mortgage Release™.
- Determining if a loan is in imminent default.
- Reporting Trial Period Plan Payments.
- Closing and/or canceling an active retention case.
- Reporting a COVID-19 payment deferral, disaster payment deferral or payment deferral.
- Creating a case to send workouts to Fannie Mae for review and approval: Payment Deferral, Modification, Short Sale, Mortgage Release, Charge Off and/or Second Lien Consideration.
Key Benefits
- One application for automated workout decisioning and case reporting to Fannie Mae creates operational efficiencies and reduces risks.
- Rapid delivery of new products and policy in response to changing market conditions.
- Eliminates manual and resource-intensive loss mitigation activities.
- Certainty that borrower evaluation is consistent with Fannie Mae servicing policy.
- Ability to provide homeowners with fast, accurate, and consistent decisions.
- Offers servicers rep and warrant relief when using SMDU decision, reducing uncertainty.
User Guides
SMDU UI Loss Mitigation User Guide
SMDU UI Payment Deferral Options User Guide
Online Learning
SMDU Help & Training page
Loss Mitigation Valuations Features
Use SMDU User Interface to:
- Order and retrieve a property’s Automated Valuation Model (AVM) estimated value and confidence score for loan modifications and Mortgage Release™.
- Retrieve the results of a loss mitigation valuation request for a Short Sale, Mortgage Release and/or Reserve Price Bid Instructions placed via the Valuation Management System (VMS) as well as view those results via the Valuations Manager.
Key Benefits
- Simplified loss mitigation property valuation process.
- One application to order AVM estimated value and retrieve results of a loss mitigation valuation requests placed via VMS .
- Access to no-cost AVM estimated value.
- Supports single loan and multiple loan (bulk) requests.
Help & Training
SMDU UI Loss Mitigation Valuations User Guide
Borrower-Initiated Mortgage Insurance Termination Features
The mortgage insurance (MI) termination tool within SMDU™ makes it easier to evaluate borrower requests to terminate conventional MI based on the Original Value and/or Current Value of the property.
Key Benefits
- Automated evaluation and decisioning ensures compliance with Fannie Mae policy.
- Access to no-cost Automated Valuation Model (AVM) estimated value of the property and/or standardized pricing for BPO/appraisal.
- Simpler evaluation process and lower costs for a better borrower experience.
- Offers servicers limited liability relief when using SMDU™ decisioning.
How it works
- Borrower requests MI termination based on the Original or Current Value of the property (with or without substantial improvements).
- SMDU automatically provides data required for an evaluation.
- SMDU applies a no-cost AVM to evaluate for Original Value. For Current Value or when an AVM can’t be used, servicer orders a BPO/appraisal.
- When SMDU has the property value, it evaluates the loan and supplies a real-time decision.
- Servicer retrieves invoice for completed valuation from Fannie Mae invoicing (when applicable).
Help & Training
Borrower-Initiated Request for MI Termination Servicer User Guide
Borrower-Initiated MI Termination Requests Using SMDU FAQs
Use your SMDU UI credentials to access the release notes.
Borrower-initiated MI Termination
Loss Mitigation/Loss Mitigation Valuations
With SMDU, we are able to absorb policy changes immediately. We’ve seen an increase in approvals – about twice the pre-SMDU rate – especially for solutions that let homeowners stay in their homes.
