Fannie Mae has unveiled a system to help servicers prevent foreclosures.
The mortgage giant said its Servicing Management Default Underwriter can save servicers time and money by enabling them to obtain information about changes to Fannie Mae's policies in real time.
The system also is said to notify servicers when a homeowner becomes eligible for streamlined processing of a mortgage modification or other options to prevent foreclosure.
Though the use of the system remains voluntary, "adoption will be required at some point in the near future," Leslie Peeler, senior vice president of Fannie Mae's national servicing organization, said in a press release.
"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 added.
Flagstar Bank (FBC), Nationstar Mortgage (NSM), U.S. Bank (USB) and Quicken Loans are among servicers that have adopted the system, according to Fannie Mae.
The system, which Fannie Mae describes as a counterpart to its Desktop Underwriter origination system, can be combined with existing platforms or accessed directly through such software companies as Overture, Clarifire and other companies that provide processing platforms for the mortgage industry.