Lender Processing Services launched its Workout Interaction Tool, a Web-based application that provides data from the company’s loan servicing platform MSP and interfaces with Fannie Mae’s Servicing Management Default Underwriter platform.
Through the new tool, mortgage servicers can increase efficiency through real-time loss mitigation workout recommendations from Fannie Mae by having access to its SMDU solution, which adheres to the enterprises Servicing Alignment Initiative guidelines. For example, servicers can offer homeowners consistent decisions on loan modifications and other solutions if they are dealing with payment challenges.
“WIT shows that LPS understands Fannie Mae requirements and sees the value of delivering fast, consistent workout solutions in a user-friendly format that helps more borrowers avoid foreclosure,” said Leslie Peeler, senior vice president of Fannie Mae’s national servicing organization.
After the workout tool submits data to Fannie’s SMDU from the MSP platform, then SMDU returns a response file that includes the recommended loss mitigation program based on the borrower’s information. The response file also contains specific messages to each loan based on SMDU’s analysis that are designed to facilitate processing and completion of loan workouts.
When eligibility of a loan modification is confirmed, relevant data can be inputted back into the Jacksonville, Fla.-based technology company’s MSP. Also, WIT retains servicer requests and SMDU responses for future audit purposes.
“LPS is proud that WIT supports Fannie Mae’s efforts to increase the quality and consistency of loan modification workouts across the servicing industry,” said Dan Scheuble, chief operating officer for Lender Processing Services, in a press release. “Together, we hope to facilitate faster adoption of Fannie Mae loss mitigation programs and improve workouts for both servicers and borrowers through improved loan workout standardization.”