Applications & Technology

Servicing Management Default Underwriter (SMDU)

Simplifying Servicing

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™ as well as ordering, managing, and retrieving the results of a loss mitigation valuation request for a Charge-off, Mortgage Release, Reserve Price Bid Instructions or Short Sale. ​ AVM ordering available only via SMDU User Interface (UI); Valuation ordering and management available via SMDU UI and API.​​
  • 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. 
Servicing Management Default Underwriter (SMDU) Availability

The following SMDU functionality is available every day, 24 hours a day, except from 7 p.m. ET on Sunday to 5 a.m. ET on Monday for maintenance:  

Loss Mitigation “Automated Workout Decisioning”

Loss Mitigation Valuations

Borrower-Initiated Requests to Terminate Mortgage Insurance

For SMDU Loss Mitigation “Case Management” functionality, refer to the AMN application hours of availability. 

After Hours Support

All Technology Application Availability

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
SMDU UI Bankruptcy Cramdown 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™.
  • Order, manage and retrieve the results of a loss mitigation valuation request for a Charge-off, Mortgage Release, Reserve Price Bid Instructions or Short Sale.

Key Benefits

  • Simplified loss mitigation property valuation process. 
  • One application to order AVM estimated value as well as order, manage, and retrieve results of a loss mitigation valuation request.  
  • 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

  1. Borrower requests MI termination based on the Original or Current Value of the property (with or without substantial improvements).
  2. SMDU automatically provides data required for an evaluation.
  3. 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.
  4. When SMDU has the property value, it evaluates the loan and supplies a real-time decision.
  5. 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

The Technology Terms and Conditions previously provided on this page are now located in the new Consolidated Technology Guide. A PDF version of the Guide and other related content is available on the Consolidated Technology Guide page