Automated Waterfall Decisioning Across All Agencies and Investors with First-to-Market FHA ML 2025-14 Compliance
Outamation, a pioneer in automation and digital transformation that reimagines workflows to deliver impactful business outcomes, today announced the launch of its industry-leading waterfall decision engine within OutamateMods™. The comprehensive solution delivers automated decisioning across all agencies and investor types, including seamless connectivity to Fannie Mae’s SMDU and Freddie Mac’s Resolve platform, while being first to market with complete integration of FHA Mortgagee Letter 2025-14 changes.
The breakthrough technology revolutionizes how mortgage servicers handle home retention programs across all loan types and investor guidelines, replacing manual review processes with intelligent automation.
“We’re not just keeping pace with industry changes, we’re leading the charge,” said Sapan Bafna, CEO of Outamation. “By being first-to-market with full FHA ML integration and comprehensive agency connectivity, we’re empowering our clients to process loan reviews with unprecedented speed, accuracy, and compliance confidence.”
Key Features and Capabilities
Comprehensive waterfall decision logic:
- Automated decision-making across all home retention types and investor requirements
- Real-time evaluation of borrower eligibility and retention options
- Intelligent prioritization based on investor preferences and guidelines
- Complete audit trail and decision documentation
Full agency support:
- SMDU integration: Direct connectivity with Fannie Mae’s Servicing Management and Decision Utility for seamless GSE loan processing
- Resolve integration: Native integration with Freddie Mac’s Resolve platform for automated decision workflows
- FHA ML compliance: Complete implementation of recent Mortgagee Letter changes
- VA updates: Removed VASP from VA decisioning waterfall
- USDA enhancement: New Payment Supplement Agreement (PSA) implementation
- Portfolio loan support: Comprehensive retention programs including “performing” loan modifications strategies
Industry-First FHA ML implementation
OutamateMods is the first platform to fully incorporate the latest FHA Mortgagee Letter changes, positioning clients ahead of compliance deadlines and regulatory requirements. The solution is currently available for client testing, ensuring smooth implementation well before industry mandates take effect.
Transforming Home Retention Processing
The new waterfall decision engine eliminates manual review bottlenecks that traditionally slow home retention processing, replacing subjective decision-making with consistent, compliant automation. Servicers can now process all retention options across their entire portfolio – from government loans to private investor requirements, including combo plans, PSA, MRA, and performing loan modifications – through a single, unified platform.
Key Benefits Include:
- Reduced processing time: Automated waterfall decisions cut home retention review time by up to 80%
- Enhanced compliance: Built-in regulatory compliance across all investor types and requirements
- Improved accuracy: Eliminates human error in complex retention scenarios
- Scalable operations: Handles volume fluctuations without additional staffing requirements
- Real-time reporting: Comprehensive analytics and performance monitoring
Strategic Industry Leadership
This launch reinforces Outamation’s position as a technology innovator in the mortgage servicing industry. The company’s proactive approach to regulatory changes and agency requirements ensures clients stay ahead of compliance curves while maximizing operational efficiency.
“The mortgage servicing industry has long needed a solution that could handle the complexity of modern home retention requirements while maintaining the speed and accuracy servicers demand,” added Bafna. “Our waterfall decision engine doesn’t just meet these needs, it anticipates future requirements and positions our clients for continued success across all retention program types, from traditional agency programs to innovative portfolio solutions.”
Availability and Implementation
The enhanced OutamateMods platform, with full waterfall decision capabilities, is available immediately for existing clients, with new implementations beginning in Q4 2025. The FHA ML changes module is currently available for client testing, ensuring seamless transition when regulatory requirements take effect.
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