In a servicing policy update issued Monday, Fannie Mae introduced a new Web-based technology tool that automates key functions required of servicers to evaluate borrowers for the Home Affordable Modification Program (HAMP).

The GSE’s Workout Evaluator automates HAMP’s net present value (NPV) test and the modification “waterfall” methodology required under the program to bring a borrower’s housing payment down to 31 percent of gross monthly income.

The new technology also generates key data required for HAMP reporting via Fannie Mae’s HomeSaver Solutions Network (HSSN) and via the U.S. Treasury Department’s HAMP reporting tool.

Fannie Mae says the Workout Evaluator “provides a streamlined and affordable HAMP automation option for Fannie Mae loans, without requiring large technology investments, and reduces the resources needed for manual HAMP calculations.”

Fannie noted that as of June 1, 2010, all Fannie Mae servicers must use the Freddie Mac Imminent Default Indicator (IDI) statistical model when evaluating the likelihood of default for mortgage loans that are less than 60 days past due to determine HAMP eligibility. The new Workout Evaluator does not directly interface with IDI, so the IDI assessment should be performed prior to entering case data into Workout Evaluator, Fannie explained.

Workout Evaluator is designed only for use by Fannie Mae servicers modifying eligible Fannie Mae loans under the HAMP guidelines. There is no fee for using Workout Evaluator.