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.
- 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.
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.
- 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.
- 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).
Borrower-initiated MI Termination
Loss Mitigation/Loss Mitigation Valuations
- SMDU Release V. 7.48 | July 9, 2021
- SMDU Release V. 7.47 | June 15, 2021
- SMDU Release V. 7.46 | May 21, 2021
- SMDU Release 7.45 | April 16, 2021
- SMDU Release V. 7.44 | March 19, 2021
- SMDU Release V. 7.43 | February 19, 2021
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.