New to loss mitigation
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.
Mortgage Forbearance
Use this page to assist with setting borrowing expectations about forbearance plans.
3 minutes | Webpage
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.
Default Management and Prevention
Explore various default scenarios and timelines of events from delinquency through resolution of the default.
20 minutes | Online learning
Default Management & Delinquency Prevention ›
Default Management Scenarios ›
Available workout options
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.
Workout hierarchy of options after forbearance 
Use this at-a-glance matrix to review homeowner options and eligibility
requirements.
2 minutes | PDF
Default Management and Prevention
Explore various default scenarios and timelines of events from delinquency through resolution of the default.
20 minutes | Online learning
Default Management & Delinquency Prevention ›
Default Management Scenarios ›
Fannie Mae credentials required
SMDU credentials required
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 .
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
Payment deferral
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™).
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
Fannie Mae credentials required
SMDU credentials required
Script for homeowners with a resolved hardship
Use this script with borrowers who have a resolved financial hardship.
5 minutes | PDF
Investor reporting & business continuity
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 calendar
Use this resource to identify reporting requirements and key dates.
3 minutes | PDF
Introduction to investor accounting
Learn how to remit, report, and reconcile for Actual/Actual loans.
21 minutes | Online learning
Investor reporting manual Use this manual to help you comply with reporting
loan-level detail.
66 pages | PDF
Fannie Mae credentials required
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.
Servicers and Business Continuity
Ensure that you have implemented and maintained adequate business continuity
and disaster recovery procedures.
1 minutes | PDF
Helping borrowers avoid foreclosure
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
Our workout hierarchy in action
This presentation gives an overview of our workout hierarchy, from retention through liquidation, along with real-world scenarios for helping delinquent borrowers avoid foreclosure.
Borrower's corner
Resources are available for you to provide directly to borrowers.
Alternatives to foreclosure
There are ways to avoid foreclosure while moving on from your current home.
5 minute | Webpage
Selling with equity in the home
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
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
Fannie Mae credentials
required
Borrower's corner
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
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
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
Short sale
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
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
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
SMDU credentials
required
Borrower's corner
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
When to consider a short sale
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
Mortgage release
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
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
SMDU credentials
required
Borrower's corner
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
Learn about Mortgage Release
A mortgage release could help your borrower resolve delinquency, avoid
foreclosure, and consider different options to exit the home.
3 minutes | Webpage
Property preservation
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
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
Property 360
Take advantage of streamlined technology for faster expense reimbursements, REOgram™ confirmations, and pre-foreclosure preservation.
3 minutes | Webpage
Expense reimbursement
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
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:
- Part E, Default-Related Legal Services, Bankruptcy Proceedings, and Acquired Properties ›
- Chapter E-2, Managing Bankruptcy Proceedings ›
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:
- 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 management
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
Default Reporting Application
Use our Default Reporting Application (DRA) for all default-related data and
reporting needs.
Fannie Mae credentials
required
Borrower's corner
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 options
Advise borrowers to not just walk away from their homes. There are options.
10 minutes | Webpage
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
Mortgage Forbearance
Use this page to assist with setting borrowing expectations about forbearance plans.
3 minutes | Webpage
Fannie Mae credentials
required
Borrower's corner
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 recovery assistance through the Disaster Response Network.
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).