Fannie Mae Servicer Toolkit
Many mortgage servicers are looking for help with borrowers’ questions, the volume of forbearance inquiries, and changing guidelines. We are committed to ensuring our servicers have what they need to support borrowers trying to stay in their homes or, if necessary, leave their homes gracefully. This servicer toolkit is a collection of key resources that will help you as you continue to serve your homeowners. For 24/7 support, visit Ask Poli.
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Payment deferral
Investor reporting & business continuity
RETENTION OPTIONS
AVOIDING FORECLOSURE
BANKRUPTCY & FORECLOSURE
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Short sale
Mortgage release
Property preservation
Expense reimbursement
Helping borrowers avoid foreclosure
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The following resources will help support your discussions with borrowers about loss mitigation options. In order to report a mortgage forbearance plan, you need access to the Asset Management Network.
How to initiate a forbearance request using the Asset Management Network Use this resource with borrowers who have experienced a financial hardship. 2 minutes | PDF View job aid ›
Mortgage Forbearance Use this fact sheet to assist with setting borrower expectations about forbearance plans. 3 minutes | Webpage View fact sheet ›
Homeowner Retention Options modules: Understanding Hardship, Forbearance In these two learning modules, learn how to assess the borrower’s financial hardship and understand the eligibility requirements and servicer responsibilities for forbearance. 7 minutes | Online learning View modules ›
Note on mortgage forbearance
Following mortgage forbearance, borrowers must repay their missed payments. However, it is not a requirement that they repay the missed payments all at once.
Get familiar with mortgage servicing terms and how to determine eligibility and answer questions about workout options. Use the following resources to support your discussions with borrowers about their options after a resolved financial hardship.
Script for borrowers with a resolved COVID-19 hardship Use this script with borrowers who have a resolved financial hardship caused by COVID-19. 5 minutes | Webpage View script ›
Questions about using SMDU?
If you need to submit a new payment deferral case in SMDU, refer to the SMDU UI Payment Deferral Options User Guide. If you need to check the status of an existing case or have questions about clearing error messages, refer to the SMDU UI Loss Mitigation User Guide or tips for resolving common SMDU evaluation messages.
Workout hierarchy of options after forbearance Use this at-a-glance matrix to review homeowner options and eligibility requirements. 2 minutes | PDF View matrix ›
Homeowner Retention Options modules: Repayment Plan, Flex Modification Learn what to do after a borrower’s delinquency resulting from a temporary hardship and how to educate borrowers about Fannie Mae Flex Modification in these two modules. (For more information on payment deferral, see the payment deferral section of this toolkit.) 7 minutes | Online learning View modules ›
Fannie Mae credentials required SMDU credentials required
Fannie Mae Flex Modification Learn about this loan modification that offers eligible homeowners mortgage relief payment by extending the terms of the loan. 5 minutes | Webpage View page ›
Options after a forbearance plan or resolved financial hardship Educate your customers about their mortgage repayment options, including payment deferral. 2 minutes | Webpage View fact sheet ›
Learn how to evaluate and submit a payment deferral option for borrowers impacted by a financial hardship or a disaster event. The following resources are available to support your discussions with borrowers about payment deferral options. In order to evaluate a borrower for a payment deferral option, you need access to Servicing Management Default Underwriter™ (SMDU™).
Guidance and eligibility requirements for servicers View Lender Letter LL-2021-07 COVID-19 Payment Deferral to help borrowers after a resolved hardship. 10 minutes | PDF View lender letter ›
SMDU UI Payment Deferral Options User Guide Use SMDU UI to perform a variety of actions, including evaluating a borrower for a payment deferral. 3 minutes | PDF Download guide ›
Overview of the COVID-19 payment deferral program Learn about the payment deferral option for borrowers who can bring their mortgage loan current after a COVID-19-related hardship. 2 minutes | Webpage View fact sheet ›
Payment deferrals matrix job aid for servicers Use this job aid as a side-by-side comparison of payment deferral products. 15 minutes | PDF View matrix ›
Homeowner Retention Options: three modules on payment deferral Watch these modules to learn about COVID-19 payment deferral, disaster payment deferral, and payment deferral for borrowers who have resolved a temporary hardship. 17 minutes | Online learning View modules ›
Review investor reporting requirements, especially for payment deferrals, to comply with timely submissions. As you’re entering a case in SMDU™, check with your investor reporting team to ensure consistent data across submissions and reporting. Inconsistent data may result in hard rejects.
Investor reporting and remitting webinar Listen to key concepts and operational processes for payment deferrals. 1 hour | Webinar View webinar recording ›
Investor reporting and remitting calendar Use this resource to identify reporting requirements and key dates. 3 minutes | PDF View calendar ›
Introduction to investor accounting Learn how to remit, report, and reconcile for Actual/Actual loans. 8 minutes | Online learning View training ›
Servicers and Business Continuity Ensure that you have implemented and maintained adequate business continuity and disaster recovery procedures. 1 minutes | PDF View document ›
Avoiding hard rejects
Did a team member submit a Loan Activity Report (LAR) in the last 72 hours for the loan in question? If YES, was the Last Paid Installment data or the Unpaid Principal Balance (UPB) changed? If YES, please ensure those investor reporting changes reflect your case submission in SMDU/HomeSaver™ Solutions Network. Ensuring your loss mitigation and investor reporting teams work in concert will help you avoid downstream issues that may require case corrections or resubmissions.
When it’s no longer viable for a borrower to remain in their home, you can offer options that help borrowers leave the home while avoiding foreclosure.
Helping borrowers avoid foreclosure Use this fact sheet to assist with setting borrower expectations about options to gracefully exit their home to avoid foreclosure. 2 minutes | Webpage View fact sheet ›
Borrower's corner
Resources are available for you to provide directly to borrowers. Learn about alternatives to foreclosure This quick video outlines three alternatives to foreclosure: selling with equity, short sale, and mortgage release. 1 minute | Video Watch the video ›
If the home is worth more than the amount owed on the mortgage and other debts secured by the home, the borrower may have the option to sell with equity.
Script for servicers to use with borrowers who need a graceful exit Use this fact sheet to assist with setting borrower expectations about options to gracefully exit their home to avoid foreclosure. 10 minutes | Webpage View script ›
Default Management Scenarios eLearning In this course, choose from various default management scenarios and review the timeline of events that occur from delinquency through resolution of the default. 20 minutes | Online learning View module ›
Resources are available for you to provide directly to borrowers. Selling your home Selling the home is an option if the borrower has a financial hardship and can no longer afford it. 2 minutes | Video Watch the video ›
Fannie Mae credentials required
Guide homeowners to housing counselors A HUD-approved housing counselor is an experienced, trained professional who can advise borrowers on preventing foreclosure. 2 minutes | Webpage View resource ›
Selling with equity While mortgage servicers can offer relief options to help borrowers stay in their homes as they recover from a temporary setback, a long-term or permanent financial hardship may require them to do something different, such as selling their home. 3 minutes | Webpage View article ›
A short sale is an option if the borrower has a financial hardship and cannot sell the home for more than the mortgage balance.
What is a short sale? Use this resource to help borrowers understand how a short sale can help them exit their home while avoiding foreclosure. 2 minutes | Webpage View fact sheet ›
How to submit a short sale to Fannie Mae Use SMDU to report a short sale. Refer to the “Create Liquidation Cases” section of the SMDU UI Loss Mitigation user guide. 2 minutes | Webpage View SMDU UI user guide ›
Resources are available for you to provide directly to borrowers. Short sale to avoid foreclosure A short sale may be an option if the borrower has a financial hardship and the home value is less than the mortgage balance. 1 minute | Video Watch the video ›
Short sale page on Fannie Mae’s KnowYourOptions.com If your borrower is facing foreclosure and can no longer afford their home, they may qualify for a short sale—even if they don’t think they can (or haven’t been able to) sell their home. 3 minutes | Webpage View page ›
SMDU credentials required
Remitting and reporting a short sale (action code 71) Review this job aid for a brief overview of remitting short sale proceeds and reporting short sale activity on loans. 2 minutes | PDF View job aid ›
A Mortgage Release™ is an option if the borrower has a financial hardship and cannot sell the home, whether for a full payoff or a short sale.
What is a Mortgage Release? Use this resource to help borrowers understand how a Mortgage Release (Deed-in-Lieu of Foreclosure) can help them exit their home while avoiding foreclosure. 2 minutes | Webpage View fact sheet ›
How to submit a Mortgage Release to Fannie Mae Use SMDU to report a short sale. Refer to the “Create Liquidation Cases” section of the SMDU UI Loss Mitigation user guide. 2 minutes | Webpage View SMDU UI user guide ›
Resources are available for you to provide directly to borrowers. Mortgage Release to avoid foreclosure Learn about Mortgage Release for homeowners seeking options other than foreclosure if they can’t afford to stay in their home. 1 minute | Video Watch the video ›
Mortgage Release (Deed-in-Lieu of Foreclosure) page on Fannie Mae’s KnowYourOptions.com A mortgage release could help your borrower resolve delinquency, avoid foreclosure, and consider different options to exit the home. 3 minutes | Webpage View page ›
Fannie Mae requires that servicers preserve both the interior and the exterior of vacant properties securing delinquent loans year-round, regardless of the loss mitigation status.
Property Preservation Matrix and Reference Guide Use these guidelines for property preservation services throughout the default process. 138 pages | PDF View guide ›
Pre-foreclosure Inspection & Property Preservation Program To reduce oversight burden for preservation and inspection activities, enroll in Fannie Mae’s Pre-foreclosure Inspection & Property Preservation Program. 2 minutes | PDF View flyer ›
Property 360 Take advantage of streamlined technology for faster expense reimbursements, REOgram™ confirmations, and pre-foreclosure preservation. 3 minutes | Webpage View page ›
Fannie Mae allows the servicer to submit requests for expense reimbursement as soon as the expense is incurred.
Servicer Expense Reimbursement Job Aid Use this resource for guidance on completing requests for expense reimbursement. 22 pages | PDF View job aid ›
Questions about expense reimbursement?
You can access the Inquiry Response Tool to submit and track inquiries related to expense reimbursement claims that may be denied, curtailed, or pending. Or, you can obtain guidance for unclear instructions related to a claim submission or system issue.
Bankruptcy & foreclosure
If a borrower files for bankruptcy, please refer to the Servicing Guide:
Resources are available for you to provide directly to borrowers. A foreclosure can often be avoided. Borrowers must contact their servicer as soon as possible to discuss their options. Foreclosure page on Fannie Mae’s KnowYourOptions.com Advise borrowers to not just walk away from their homes. There are options. 10 minutes | Webpage View page ›
Part E, Default-Related Legal Services, Bankruptcy Proceedings, and Acquired Properties ›
Chapter E-2, Managing Bankruptcy Proceedings ›
Chapter E-3, Managing Foreclosure Proceedings ›
Chapter E-4, Managing Acquired Properties ›
Chapter E-5, Requesting Reimbursement for Expense Associated with Default-Related Legal Matters ›
Default Reporting Application
Use our Default Reporting Application (DRA) for all default-related data and reporting needs.
Obtain access to DRA Use this resource to request access to DRA. View job aid ›
DRA user guide Review this user guide to use DRA. View user guide ›
Foreclosure comparison chart on Fannie Mae’s KnowYourOptions.com This chart compares the differences between a foreclosure, mortgage release, and short sale. 3 minutes | Webpage View chart ›
Refer to Servicing Guide Part E, Default-Related Legal Services, Bankruptcy, Foreclosure Proceedings, and Acquired Properties.
Register for the weekly Selling + Servicing News email updates
Stay apprised of news and updates to Fannie Mae's Selling and Servicing Guides.
Register now ›
Default management
A foreclosure may occur when the borrower has defaulted on their mortgage loan by failing to make payments or violating the terms of their mortgage agreement, and all loss mitigation options have been considered. Please refer to the Servicing Guide:
Fannie Mae
Servicer Toolkit
BACK TO TOP
DISASTER ASSISTANCE
Disaster assistance
Resources to help servicers support borrowers who have been affected by a disaster.
Script for servicers to use with homeowners impacted by a disaster Use this script to help determine if borrowers were impacted by a disaster and if they need assistance with mortgage payments. 10 minutes | PDF View script ›
For additional guidance, please refer to the Servicing Guide: Chapter D1-3, Evaluating the Impact of a Disaster Event and Assisting a Borrower ›
Resources are available for you to provide directly to borrowers. Disaster assistance If your home was impacted by a fire, flood, storm, or other disaster, you can get free personalized assistance through our disaster recovery counseling services. HUD-approved housing counselors can help you plan and tackle challenges such as working with your mortgage company to determine foreclosure prevention options or identifying financial or housing-related assistance available to renters.
For disaster assistance, call 855-HERE2HELP (855-437-3243).
Refer to Servicing Guide Part D1-3, Evaluating the Impact of a Disaster Event and Assisting a Borrower.
Resources are available to support servicers through the default management process. Default Management Scenarios for Servicers Take this course to explore timelines of events from delinquency through resolution of the default. 20 minutes | Online learning View training ›
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Script for homeowners with a resolved hardship Use this script with borrowers who have a resolved financial hardship. 5 minutes | PDF View script ›
Investor reporting manual Use this manual to help you comply with reporting loan-level detail. 66 pages | PDF View manual ›
Click to read more ›
Resource 1 of 3
How to initiate a forbearance request using the Asset Management Network
Use this resource with borrowers who have experienced a financial hardship.
2 minutes | PDF
View job aid ›
Resource 2 of 3
Mortgage Forbearance
Use this fact sheet to assist with setting borrower expectations about forbearance plans.
3 minutes | Webpage
View fact sheet ›
Resource 3 of 3
Homeowner Retention Options modules: Understanding Hardship, Forbearance
In these two learning modules, learn how to assess the borrower’s financial hardship and understand the eligibility requirements and servicer responsibilities for forbearance.
7 minutes | Online learning
View modules ›
Stay apprised of news and updates to Fannie Mae’s Selling and Servicing Guides.
REGISTER NOW ›
CLOSE
Resource 3 of 5
Script for borrowers with a resolved COVID-19 hardship
Use this script with borrowers who have a resolved financial hardship.
5 minutes | Webpage
View script ›
Resource 1 of 5
Workout hierarchy of options after forbearance
Use this at-a-glance matrix to review homeowner options and eligibility requirements.
View matrix ›
Resource 2 of 5
Homeowner Retention Options modules: Repayment Plan, Flex Modification
Learn what to do after a borrower’s delinquency resulting from a temporary hardship and how to educate borrowers about Fannie Mae Flex Modification in these two modules. (For more information on payment deferral, see the payment deferral section of this toolkit).
Resource 4 of 5
Fannie Mae Flex Modification
Learn about this loan modification that offers eligible homeowners mortgage relief payment by extending the terms of the loan.
View page ›
Resource 5 of 5
Options after a forbearance plan or resolved financial hardship
Educate your customers about their mortgage repayment options, including payment deferral.
QUESTIONS ABOUT USING SMDU?
If you need to submit a new payment deferral case in SMDU, refer to the SMDU UI Payment Deferral Options User Guide.
If you need to check the status of an existing case or have questions about clearing error messages, refer to the SMDU UI Loss Migitgation User Guide or tips for resolving common SMDU evaluation messages.
SMDU UI Payment Deferral Options User Guide ›
SMDU UI Loss Mitigation User Guide ›
Tips for resolving common SMDU evaluation messages ›
Resource 5 of 7
Guidance and eligibility requirements for servicers
View Lender Letter LL-2021-07 COVID-19 Payment Deferral to help borrowers after a resolved hardship.
10 minutes | PDF
View lender letter ›
Resource 7 of 7
Use this script with borrowers who have a resolved financial hardship caused by COVID-19.
Resource 1 of 7
SMDU UI Payment Deferral Options User Guide
Use SMDU UI to perform a variety of actions, including evaluating a borrower for a payment deferral.
3 minutes | PDF
Download guide ›
Resource 6 of 7
Overview of the COVID-19 payment deferral program
Learn about the payment deferral option for borrowers who can bring their mortgage loan current after a COVID-19- related hardship.
2 minutes | Webpage
Resource 2 of 7
Payment deferrals matrix job aid for servicers
Use this job aid as a side-by-side comparison of payment deferral products.
15 minutes | PDF
Resource 3 of 7
Homeowner Retention Options: three modules on payment deferral
Watch these modules to learn about COVID-19 payment deferral, disaster payment deferral, and payment deferral for borrowers who have resolved a temporary hardship.
17 minutes | Online learning
Resource 4 of 7
Script for homeowners with a resolved hardship
5 minutes | PDF
Investor reporting and remitting webinar
Listen to key concepts and operational processes for payment deferrals.
1 hour | Webinar
View webinar recording ›
Investor reporting and remitting calendar
Use this resource to identify reporting requirements and key dates.
View calendar ›
Introduction to investor accounting
Learn how to remit, report, and reconcile for Actual/Actual loans.
8 minutes | Online learning
View training ›
Investor reporting manual
Use this manual to help you comply with reporting loan- level detail.
66 pages | PDF
View manual ›
Servicers and business continuity
Ensure that you have implemented and maintained adequate business continuity and disaster recovery procedures.
1 minute | PDF
View document ›
AVOIDING HARD REJECTS
Resource 1 of 1
Use this fact sheet to assist with setting borrower expectations about options to gracefully exit their home to avoid foreclosure.
BORROWER'S CORNER
Click for resources you can provide directly to borrowers ›
Resources are available for you to provide directly to borrowers.
Learn about alternatives to foreclosure
This quick video outlines three alternatives to foreclosure: selling with equity, short sale, and mortgage release. 1 minute | Video
Resource 1 of 2
Script for servicers to use with borrowers who need a graceful exit
10 minutes | Webpage
Resource 2 of 2
Default Management Scenarios eLearning
In this course, choose from various default management scenarios and review the timeline of events that occur from delinquency through resolution of the default.
20 minutes | Online learning
View module ›
Selling your home
Selling the home is an option if the borrower has a financial hardship and can no longer afford it. 2 minutes | Video
Watch video ›
Guide homeowners to housing counselors
A HUD-approved housing counselor is an experienced, trained professional who can advise borrowers on preventing foreclosure. 2 minutes | Webpage
View resource ›
Selling with equity
While mortgage servicers can offer relief options to help borrowers stay in their homes as they recover from a temporary setback, a long-term or permanent financial hardship may require them to do something different, such as selling their home. 3 minutes | Webpage
View article ›
What is a short sale?
Use this resource to help borrowers understand how a short sale can help them exit their home while avoiding foreclosure.
How to submit a short sale to Fannie Mae
Use SMDU to report a short sale. Refer to the “Create Liquidation Cases” section of the SMDU UI Loss Mitigation user guide.
View SMDU UI user guide ›
Remitting and reporting a short sale (action code 71)
Review this job aid for a brief overview of remitting short sale proceeds and reporting short sale activity on loans.
Short sale to avoid foreclosure
A short sale may be an option if the borrower has a financial hardship and the home value is less than the mortgage balance. 1 minute | Video
Short sale page on Fannie Mae’s KnowYourOptions.com
If your borrower is facing foreclosure and can no longer afford their home, they may qualify for a short sale—even if they don’t think they can (or haven’t been able to) sell their home. 3 minutes | Webpage
What is a Mortgage Release?
Use this resource to help borrowers understand how a Mortgage Release (Deed-in-Lieu of Foreclosure) can help them exit their home while avoiding foreclosure.
How to submit a Mortgage Release to Fannie Mae
Mortgage Release to avoid foreclosure
Learn about Mortgage Release for homeowners seeking options other than foreclosure if they can’t afford to stay in their home. 1 minute | Video
Mortgage Release (Deed-in-Lieu of Foreclosure) page on Fannie Mae’s KnowYourOptions.com
A mortgage release could help your borrower resolve delinquency, avoid foreclosure, and consider different options to exit the home. 3 minutes | Webpage
Property Preservation Matrix and Reference Guide
Use these guidelines for property preservation services throughout the default process.
138 pages | PDF
View guide ›
Pre-foreclosure Inspection & Property Preservation Program
To reduce oversight burden for preservation and inspection activities, enroll in Fannie Mae’s Pre-foreclosure Inspection & Property Preservation Program.
View flyer ›
Property 360
Take advantage of streamlined technology for faster expense reimbursements, REOgram™ confirmations, and pre-foreclosure preservation.
Servicer Expense Reimbursement Job Aid
Use this resource for guidance on completing requests for expense reimbursement.
22 pages | PDF
QUESTIONS ABOUT EXPENSE REIMBURSEMENT?
Inquiry Response Tool ›
Section 1 of 4
Bankruptcy
Section 2 of 4
Foreclosure
Section 4 of 4
Obtain access to DRA Use this resource to request access to DRA.
DRA user guide Review this user guide to use DRA.
View user guide ›
Foreclosure page on Fannie Mae’s KnowYourOptions.com
Advise borrowers to not just walk away from their homes. There are options. 10 minutes | PDF
Foreclosure comparison chart on Fannie Mae’s KnowYourOptions.com
This chart compares the differences between a foreclosure, mortgage release, and short sale. 3 minutes | Webpage
View chart ›
A foreclosure can often be avoided. Borrowers must contact their servicer as soon as possible to discuss their options.
Section 3 of 4
Default Management
Resources are available to support servicers throughout the default management process.
Default Management Scenarios for Servicers Take this course to explore timelines of events from delinquency through resolution of the default.
Script for servicers to use with homeowners impacted by a disaster
Use this script to help determine if borrowers were impacted by a disaster and if they need assistance with mortgage payments.
Servicing Guide Chapter D1-3
For additional guidance, please refer to the Servicing Guide Chapter D1-3, Evaluating the Impact of a Disaster Event and Assisting a Borrower.
View chapter ›
If your home was impacted by a fire, flood, storm, or other disaster, you can get free personalized assistance through our disaster recovery counseling services. HUD-approved housing counselors can help you plan and tackle challenges such as working with your mortgage company to determine foreclosure prevention options or identifying financial or housing-related assistance available to renters. For disaster assistance, call:
855-HERE2HELP (855-437-3243) ›
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