Fannie Mae: MI Termination in SMDU Starting Soon

Fannie Mae: MI Termination in SMDU Starting Soon

Fannie Mae: MI Termination in SMDU Starting Soon

Investor Update
August 7, 2019

Source: Fannie Mae

Frequently Asked Questions

Updated policy requirements for the borrower-initiated termination of conventional mortgage insurance (MI) simplifies the process of evaluating borrower-initiated requests for MI termination. This streamlined process will deliver a better customer experience for both servicers and borrowers. Listed below are frequently asked questions related to the implementation of the MI termination policy using Servicing Management Default Underwriter™ (SMDU™).

Servicers are encouraged to implement the MI termination policy based on Original Value beginning Jan 1, 2019, and MI termination policy based on Current Value beginning March 1, 2019; however, implementation is required by September 1,
2019.

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