Fannie Mae has introduced its Servicing Management Default Underwriter (SMDU), a tool to help mortgage servicers work faster and more consistently with homeowners to prevent foreclosure. This technology, a counterpart to Fannie Mae’s Desktop Underwriter for mortgage originations, breaks new ground by evaluating a homeowner’s financial situation and determining what 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,” said Leslie Peeler, SVP of Fannie Mae’s National Servicing Organization. “So far, adoption has been voluntary and we are pleased a number of leading technology providers and servicing partners have implemented SMDU. There are several large servicers working towards adoption this year. Servicers should anticipate that adoption will be required at some point in the near future. SMDU serves the interests of homeowners, servicers and taxpayers. The bottom line is that we want servicers to prevent as many foreclosures as possible and provide excellent service.” SMDU was developed and tested over the past three years to help ensure homeowners receive accurate and timely assistance. Servicers who adopt SMDU experience faster speed to implementation of Fannie Mae policy changes. This tool allows servicers to make real-time calls to Fannie Mae's business rules as they collect information from homeowners. SMDU informs the servicer when the homeowner is eligible for streamlined processing for any loss mitigation option, which can eliminate weeks from the process. Servicers are guided through the tool with scripts to promote consistency and improve customer service. These elements translate to cost savings and improved service to homeowners.