Lender Processing Services (LPS) has release a new tool for mortgage servicers that the company says will allow them to "provide consistent, real-time decisions on loan modifications and other solutions for homeowners with payment challenges."  The Workout Interaction Tool (WIT) is web-based and provides data from it's the LPS MSP servicing system to and from Fannie Mae's Servicing Management Default Underwriter (SMDU) platform.

The WIT user submits data from the MSP to SMDU and receives in response a file with the recommended loss mitigation program based on the data received.  The response file also contains messages specific to each loan designed to facilitate processing and completion of loan workouts.  WIT retains information on servicer requests and SMDU responses and, when eligibility of a loan modification is confirmed, the data can be provided in an exportable CSV file format for HAMP Treasury reporting.  The data is also retained by WIT for future reference and audit purposes.

 "We're pleased LPS has developed a solution that enables access to SMDU during the loss mitigation process for Fannie Mae loans," said Leslie Peeler, senior vice president of Fannie Mae's National Servicing Organization. "WIT shows that LPS understands Fannie Mae requirements and sees the value of delivering fast, consistent workout solutions in a user-friendly format that helps more borrowers avoid foreclosure."

"LPS is proud that WIT supports Fannie Mae's efforts to increase the quality and consistency of loan modification workouts across the servicing industry," said Dan Scheuble, LPS chief operating officer. "Together, we hope to facilitate faster adoption of Fannie Mae loss mitigation programs and improve workouts for both servicers and borrowers through improved loan workout standardization."