*Getting Ready For ULDD*
**By Tony Garritano**
***The Uniform Loan Delivery Dataset is a major change in the way the mortgage industry not only delivers loans between lenders and investors, but is also a significant development in how loan data is verified, analyzed and evaluated. By having the individual data elements of each loan available in a standardized digital format to compare and study, investors can more easily review files to ensure greater data integrity in each loan. Analysis and reporting are greatly improved, bringing much-needed transparency and quality to the capital markets, leading to greater liquidity and reduced costs for all stakeholders in the process. Initially applying to loan deliveries involving Fannie Mae and Freddie Mac, the ULDD effectively sets the stage to become the new industry standard upon implementation. And PROGRESS in Lending has learned that one LOS is already compliant. Here’s the story:
****Mortgage Builder has already received certification from the GSEs that it is in compliance with the new Uniform Loan Delivery Dataset (ULDD) requirements, well ahead of the April voluntary loan delivery date and the July 23rd mandatory delivery deadline. The agencies pushed back the mandatory date from March to July to allow vendors and lenders more time to prepare for the change, but Mortgage Builder clients can familiarize themselves with the changes immediately.
****By being early with its readiness for the ULDD, Mortgage Builder allows its clients greater preparation time to meet the requirements of the new system and its differences. “There are many new data fields and it will take clients some time to become acclimated,” according to Liz Fafette, Mortgage Builder’s vice president of operations. “We have made every effort to make the transition as seamless as possible for users by giving them an advance view of the changes as far back as November, so that helped,” she explains. “The upload websites for Fannie and Freddie are different, but we have worked hard to make the user experience as consistent as possible with the current Mortgage Builder environment.” She notes that more than 600 data fields were involved in the conversion to ULDD, and the newest version of MISMO-standardized XML (Extensible Markup Language, standardized by the Mortgage Industry Standards and Maintenance Organization) made the effort a significant undertaking.
****“ULDD brings greater standardization to the process for each transaction,” observes Keven Smith, president and CEO of Mortgage Builder. “ULDD brings improvements to the existing methods of electronic delivery that we anticipate will reduce issues around completeness and acceptability,” he says. “There is a checking feature that warns of possible problems or conflicts with Freddie or Fannie, and prompts users to fix them before uploading. This saves the GSE and the lender time, and the overall precision of the ULDD package will help boost transparency,” Smith predicts.
****Mortgage Builder was required to demonstrate that its system’s ULDD met the requirements and quality standards for the GSEs through a series of test cases with each agency. Now, with that process complete and Mortgage Builder duly certified, the company is releasing the new version for client download and implementation. “Our technical support staff is available to assist wherever required,” says Liz Fafette, but she feels that the effort put in by her operations department will make the transition remarkably painless. “With the implementation of ULDD by Freddie Mac and Fannie Mae, the mortgage industry is officially in the digital age,” she says. “We’re glad to help in the effort to bring new levels of data integrity and transparency to the mortgage industry, and Mortgage Builder is ready to go – months ahead of the deadline.”
Tony Garritano is chairman and founder at PROGRESS in Lending Association. As a speaker Tony has worked hard to inform executives about how technology should be a tool used to further business objectives. For over 10 years he has worked as a journalist, researcher and speaker in the mortgage technology space. Starting this association was the next step for someone like Tony, who has dedicated his career to providing mortgage executives with the information needed to make informed technology decisions. He can be reached via e-mail at email@example.com.