Home >> Daily Dose >> New Fannie Tool Expands Potential Aid for Troubled Borrowers
Print This Post Print This Post

New Fannie Tool Expands Potential Aid for Troubled Borrowers

fannie-maeFannie Mae has unleashed a new tool that will help servicers analyze additional borrower information to determine more quickly whether or not a distressed homeowner qualifies for a Fannie Mae loan modification.

As of December, Fannie Mae has updated its Servicing Management Default Underwriter tool to help servicers better analyze all of the criteria that determines the type of aid available to a troubled borrower.

As part of a new policy change, servicers are now required to calculate a borrower’s full mortgage obligation, including the entire outstanding principal balance, the amount past due, and other arrearages.

Servicers can only determine whether a borrower qualifies for a modification program after analyzing all of this information at one time. The Servicing Management Default Underwriter tool allows financial institutions to reach these conclusions in a quick and efficient manner.

“We are continuously looking for ways to help struggling Fannie Mae borrowers,” said Joy Cianci, Senior Vice President, Credit Portfolio Management, Fannie Mae. “With this technology update, our servicers will be able to help more struggling borrowers sooner since we are implementing the policy change directly in the tool.”

A new policy, which requires servicers to look at more than the loan obligation during the loan modification assessment process goes into effect on March 1, 2016. However, the tool to analyze this criteria is already available, so borrowers and servicers will not miss a beat when the new modification assessment guidelines take effect in March.

Traditionally, Servicing Management Default Underwriter has been used by Fannie servicers to determine what foreclosure prevention options are available to borrowers with Fannie-backed loans.

About Author: Kerri Panchuk

x

Check Also

Survey: Homeownership Remains Elusive for Baby Boomer Renters

A recent look into housing affordability by NeighborWorks America has found that three in five long-term baby boomer renters feel homeownership remains unattainable.