Are loans that are not past due (less than 30 days) to be submitted to IDI as well?
6. If the IDI .... sample model clauses to be used in servicer denial letters only.
Freddie Mac’s Imminent Default Indicator™ (IDI) – Frequently Asked Questions Updated October 2010 Select a question or Category (below) to skip to that question or section.
Top 10 1. What is the effective date for servicers to implement IDI? 2. Where is the File Transfer Portal (FTP) located? 3. What values can servicers enter in the Monthly Debt Payment-to-Income Ratio field, #31? 4. What value should servicers put into the IDI Monthly Debt Payment-to-Income Ratio field, #31, if the only source of income is unemployment or if the borrower has no income? 5. What should servicers do if they receive an error message? Do servicers need to fix the error and resubmit? 6. How should servicers determine the cause for an error and how to resolve the error? 7. If a servicer receives a score of “2” or “not in danger of imminent default” from IDI, is the loan not considered in imminent default? 8. What denial reason should servicers use for borrowers whose mortgage loan is not characterized as “at risk of imminent default” due to receiving a score of “2” from IDI where the borrower does not meet one of the acceptable hardship situations identified in Announcement SVC-2010-02? 9. How should servicers verify assets? Should servicers accept the bank/investment account statements that borrowers provide? 10. Where is the IDI job aid located on the business website?
Category Effective Date Eligibility Income Documentation and Commencement of Trial Period Accessing IDI Submitting to IDI IDI Errors General Policy
Complete List of Questions by Category Effective Date 1. What is the effective date for servicers to implement IDI? Eligibility 1. What are cash reserves? 2. Do cash reserves include 401K funds? 3. Is a variable annuity considered a liquid asset? 4. How should servicers verify assets? May servicers accept whatever bank/investment account statements the borrowers provide? © 2010 Fannie Mae. Trademarks of Fannie Mae. Imminent Default Indicator is a trademark of Freddie Mac.
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5. Are loans that are not past due (less than 30 days) to be submitted to IDI as well? 6. If the IDI result is "1," should the servicer automatically proceed with the Home Affordable Modification Program (HAMP)? 7. If the borrower states they have an auto payment on the Request for Modification and Affidavit (RMA), but the credit report or supplied documentation does not reflect an auto payment, should the servicer use this payment as part of the debt payment-to-income ratio calculation? Does the servicer need to obtain proof of this payment? 8. Can servicers use the borrower financial information form for files that were received prior to March 1, 2010, but have not yet been reviewed for eligibility? Or should they go back and request the RMA? 9. If a case has been received by the servicer prior to March 1, 2010, but not evaluated for eligibility, should the servicer follow the IDI guidelines (SVC-2010-02) or the imminent default screen set forth in Announcement 09-05R? 10. Are borrowers that are greater than 60 days delinquent or have cash reserves greater than $25,000.00 eligible for IDI? 11. Is IDI for those borrowers whose cash reserves total $25,000.00 or more? Income Documentation and Commencement of the Trial Period 1. If servicers do not have the borrower's current financial information, can they put a loan through IDI? 2. Does IDI determine if the trial period length should be three months or four months? Accessing IDI 1. Where is the IDI job aid located on the business website? 2. Where is the File Transfer Portal (FTP) located on the business website? 3. Has the servicer registration process been changed in any way for IDI? If someone is signing up now for HomeSaver Solutions® Network (HSSN) and IDI, is it one process? 4. Is there a way to regenerate the output file? 5. Is there a historical table to view data that was already submitted? 6. Is the history file listed by seller/servicer ID or branch ID? Submitting to IDI 1. If a servicer enters an incorrect value or leaves an optional field blank, will it impact the IDI result? 2. Do the .csv file names require specific characters? 3. Can servicers see the calculations behind the model? 4. Can servicers use Fannie Mae's example spreadsheet template to upload data, or are servicers required to create their own spreadsheet? 5. Is there another way to submit a file to IDI outside the interface using FTP protocols? 6. When must a servicer use IDI? 7. Can a loan be resubmitted multiple times? 8. Does IDI maintain a report of how often a file was submitted? 9. How do servicers receive replies to a bulk file that was sent to IDI? Do servicers receive one e-mail with multiple answers or multiple e-mails in response to a bulk file? 10. What values can servicers enter in the monthly debt payment-to-income ratio field, #31? 11. What value should be put into the monthly debt payment-to-income ratio field, if the only source of income is unemployment? 12. What do servicers do if their seller/servicer ID is not in the drop-down box in IDI? 13. Is an AVM necessary to complete field “AK,” estimated property value? 14. Is there a test environment for IDI? Is there a way to test IDI without submitting a loan to IDI? 15. How should servicers determine if a loan is Alt-A?
© 2010 Fannie Mae. Trademarks of Fannie Mae. Imminent Default Indicator is a trademark of Freddie Mac.
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IDI Errors 1. What happens if a servicer submits an .xls file instead of a .csv file? How long does it take to get the error message when the wrong file format is sent? 2. If a 300-series error is received and the loan is scored through IDI, do servicers need to fix the error? Will it affect the outcome? 3. What do servicers do if an error is received? Should they fix the error and resubmit? 4. How can servicers determine the cause of an error reported in an output file and how servicers resolve it? General Policy 1. If a loan is found to be in imminent default, how does that help the borrower? 2. Are servicers required to use IDI for every loan? 3. Does the IDI indicator replace the Imminent Default Screen set forth in Announcement 09-05R? 4. How does IDI affect the incentives for servicers? For example, if a borrower is 40 days past due, would we receive $1,000.00 or $1,500.00? 5. Does IDI treat loans in a Fannie Mae Mortgage-Backed Security (MBS) differently? 6. Can servicers still send solicitation letters to borrowers that are 31-60 days delinquent? 7. If a servicer receives a score of “2,” or “not in danger of imminent default” from IDI, is the borrower ineligible for HAMP? 8. Who examines the IDI result? Does a Fannie Mae representative or the servicer review the results?
Top 10 Q&A Q1.
What is the effective date for servicers to implement IDI? Fannie Mae and Freddie Mac servicers must have implemented IDI by March 1, 2010, unless previously instructed to implement by June 1, 2010.
Q2.
Where is the File Transfer Portal (FTP) located? The FTP is accessed on the Asset Management Network page on the business website at the following path: Single-Family Servicing Asset Management Network o Available under Supporting Tools, or o Available via Asset Management Network – click “Launch” hyperlink and enter user ID and password to log onto Asset Management Network
Q3.
What values can servicers enter in the Monthly Debt Payment-to-Income Ratio field, #31? Values should be entered into the system as a decimal, not as a percentage. For example, enter 25.7% as .257, not as 25.7. The tool takes values >0 and
