Fannie Mae is testing a default management tool to make it easier for servicers to provide struggling homeowners with accurate and timely assistance.
Several large servicers are currently working towards adopting the new Servicing Management Default Underwriter, the GSE said Tuesday morning in a press release.
“Servicers should anticipate that adoption will be required at some point in the near future,” according to
The default management tool is designed to evaluate a homeowner’s financial condition and determine what loss mitigation options are available to prevent foreclosure.
“SMDU addresses several challenges the servicing industry has faced in recent years by eliminating a manual and resource-intensive process for servicers, while improving accuracy and consistency,” Peeler said.
