Introduction to Workout Profiler

Note:  The following functionality is also available in Servicing Management Default UnderwriterTM (SMDU) and SMDU UI. 

HomeSaver SolutionsTM Network (HSSN) is part of the Asset Management Network, which is a suite of web-based tools that help you create, submit, and track loss mitigation cases.

Workout Profiler is a tool within HSSN that enables servicers to enter loss mitigation. A workout helps borrowers avoid foreclosure and stay in their homes, where possible.

You are free to select the workout option that you believe will best benefit your borrower, enter the terms of the workout, and submit the workout plan to Fannie Mae for approval.

The appropriate workouts for borrowers who want to stay in their homes are:

• Repayment Plan: Enables borrowers to make additional payments, along with their regular mortgage payment, for a prescribed number of months until the loan is brought current. Be advised that Repayment Plans should not be entered into HSSN, but instead are reported through Delinquency Reporting.
• Loan Modification: Changes one or more terms of the loan to make the payments more affordable for the borrower. These changes can include temporary reductions in the interest rate, a longer mortgage term (such as changing a 30-year loan to a 40-year loan) or changing an ARM to a fixed-rate mortgage.
• Payment deferral: This workout option enables servicers to assist eligible borrowers who have resolved a temporary hardship and resumed their monthly contractual payments but cannot afford either a full reinstatement or repayment plan to bring the loan current.
• Disaster payment deferral: This workout option is specifically designed to assist borrowers impacted by a disaster-related hardship return their mortgage to a current status after up to 12 months of missed payments. This solution is for borrowers that have a confirmed disaster hardship.

If a borrower no longer wants to keep the property, several workouts can help the borrower avoid foreclosure as well as keep your costs down.

• Standard Short Sale (Pre-foreclosure): Sale of a property in which Fannie Mae, the mortgage insurer, and the borrower agree to accept the proceeds of the sale to satisfy a defaulted mortgage, even though the proceeds may be less than the amount owed.
• Mortgage Release™ (Deed-in-lieu of Foreclosure and Deed for Lease): Voluntary conveyance of the property to the servicer and/or Fannie Mae. Sometimes a borrower faces a situation where there is no acceptable offer on the listed property, there is not enough time to market the property, and/or the borrower can no longer afford the property. In states that have a long foreclosure time frame, a deed-in-lieu can be a good solution to avoid further loss to Fannie Mae in the form of foreclosure fees and accrued interest.
• Second Lien Consideration: When Fannie Mae owns a delinquent second lien, you may want to consider a charge-off of the second lien. Depending on the property value, it may be in our best interest to buy out the first lien and foreclose on the second.
• Charge-Off of Debt: In some cases, borrowers may seek, or you may recommend, a charge-off of debt. A charge-off occurs when we determine that the debt cannot be collected and must be written-off as a bad debt. Situations that may require a charge-off include properties located in environmental hazard areas. A charge-off halts the accrual of further debt.

Refer to additional Workout Profiler job aids and the Loan Workout Hierarchy for details on each of the above workout options.