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MISMO Approves New Remote Online Notarization Standards

MISMO, the mortgage industry’s standards organization, today announced the release of its Remote Online Notarization (RON) standards, which include an update to the draft standards issued earlier this year. The RON standards allow the use of audio-visual communication devices to notarize documents in a virtual online environment. MISMO’s RON standards were updated to include language to preclude the storage of personally identifiable information.


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With this revision, the RON standards are being released for a public comment period beginning today and ending on August 12th, 2019.  If no substantive comments are received during this comment period, the standards will be moved to Candidate Recommendation status. Candidate Recommendation status means the RON standards have been thoroughly reviewed by a wide range of organizations and industry participants, and are ready for broad use across the entire residential mortgage industry. 


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“With states across the country enacting remote online notarization laws, MISMO’s standards will support greater consistency as the volume of remote online notarial transactions increases,” said Eddie Oddo, Vice President of Corporate Business Solutions at First American Title Insurance Company, and co-chair of MISMO’s Remote Online Notarization Workgroup. “We’re excited about this next stage in the standards process and look forward to seeing lenders, title companies, software vendors, and notaries leverage RON standards to offer borrowers a more secure and efficient closing process.”


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MISMO’s RON standards were created to promote consistency across mortgage industry practices and state regulations.  In the interest of furthering adoption of RON and to encourage consistency in related state regulation, MISMO will make its standards available for free to the public and will not require a license fee to use them. The standards include credential analysis, borrower identification, capturing and maintaining a recording of the notary process electronically, audio and video requirements, record storage, and audit trails.


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MISMO’s RON standards support model legislation that was developed by the Mortgage Bankers Association (MBA) and the American Land Title Association (ALTA), which multiple U.S. states are now using to enact RON laws in their jurisdictions. Furthermore, some states that enacted RON legislation have already utilized draft versions of the MISMO RON standards to implement their state law.

MISMO Seeks Input On New Standardized Loan Application Dataset

MISMO, the mortgage industry’s standards organization, is seeking industry participants to collaborate on developing a standardized loan dataset that will correspond with the new Uniform Residential Loan Application (URLA). The dataset is geared for general industry use for business-to-business exchanges that need to reflect the data included in the URLA. The development of a standard data exchange is intended to improve accuracy and consistency for industry participants exchanging application information with their business partners.


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“To avoid inefficiencies that result in lost time and money, the industry needs a standardized data exchange that reflects the information contained in the URLA,” said Rick Hill, Executive Vice President of MISMO and Vice President, Industry Technology at the Mortgage Bankers Association (MBA). “By acting now and leveraging the power of MISMO’s resources and its collaborative environment, we have the power to create the new dataset by next year – the time lenders implement the new loan application form.”


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MISMO’s Standardized Loan Application Dataset Workgroup will review current loan application data formats to identify a new dataset for use on all loan applications and supporting documents based on its 3.4 standards. In addition to creating a dataset for exchanging loan application information, the Workgroup will create a sample file and mapping document, an implementation guide and a library of use cases to help lenders adopt the new information exchange when they are ready.


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Any standards created by the Workgroup will be made available for public comment prior to being finalized. Workgroup participants do not have to be members of MISMO to join, but only MISMO members will be able to vote on the new standards.


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Individuals who would like to participate in this collaborative, industry-wide effort should send an email titled, “Join Standardized Loan Application Dataset Workgroup” to info@mismo.org. More information about the Standardized Loan Application Dataset Workgroup and other MISMO workgroups is available at mismo.org

MISMO To Create Standards For Business To Consumer Transactions

MISMO, the mortgage industry’s standards organization, is seeking participants to develop standards for conducting consumer transactions on mobile devices. This initiative will focus on identification, description and facilitation of consumer facing transactions in the lending life cycle.  Those interested in collaborating with MISMO are invited to join MISMO’s new Business to Consumer (B2C) Development Workgroup.

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“As the mortgage industry pursues digital transformation, using industry-wide standards to communicate will be critical to our success,” said Shelley Leonard, Chief Product Officer at Black Knight, Inc.

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This initiative is expected to be the first of many MISMO initiatives where JSON will be utilized. JSON is short for JavaScript Object Notation, a lightweight language for structuring data that is frequently used on mobile platforms.  Lenders’ use of JSON has grown as more borrowers have begun researching and applying for mortgages on their phones and other smart devices. However, no standards exist for using smartphone devices or JSON in the mortgage process. The new MISMO workgroup will create a business reference model for borrower communications in addition to decision rules, engineering guidelines and a white paper on the impact of smart devices in the mortgage life cycle.

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“A growing number of lenders are already using JSON to collect information and conduct business with consumers via smartphones, including mortgage preapprovals,” said MISMO Executive Vice President and MBA Vice President of Industry Technology Rick Hill. “Unless standards are developed as smart devices are deployed for mortgage transactions, adoption of these technologies could become very fragmented and lead to miscommunication between lenders and third parties. By collaborating with industry experts, MISMO hopes to bring consistency to B2C transactions and help more lenders take advantage of these exciting innovations.”

Specifically, the B2C Community of Practice will be tasked with:

>>Identifying required and optional B2C transactions taking place throughout the mortgage life cycle

>>Identifying and implementing the business drivers for creating technical specifications for consumer transactions

>>Creating JSON language specifications for required consumer transactions and possibly for optional transactions

By joining the MISMO B2C Development Workgroup, participants will be able to access resources and expertise on leveraging smart technology to serve borrowers while simultaneously pursuing digital mortgages. Those interested in participating in this collaborative, industry-wide effort should send an email titled “Join MISMO B2C Group” to info@mismo.org by Friday, August 3, 2018.

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MISMO Creates New Data Governance And Management Forum

MISMO, the mortgage industry’s standards organization, is seeking industry participation in a new forum to promote best practices in the areas of data governance and data management. Those interested in collaborating with MISMO are invited to join MISMO’s new Data Governance and Management Community of Practice (CoP), which will be responsible for building a framework and providing resources that enable organizations across the industry to leverage, adopt and implement data governance and management best practices in concert with adoption of MISMO industry standards.

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“For an industry that is so rapidly adopting digital technologies, protecting data and ensuring data accuracy has become paramount,” said Rick Hill, Executive Vice President of MISMO and Vice President of Industry Technology at the Mortgage Bankers Association. “By collaborating to establish an industry resource for data governance and management best practices, MISMO will offer a valuable resource for companies that would otherwise need to create their own methods for managing data. We anticipate the work created by this new group will be of enormous benefit to all industry participants who want to improve data quality and accountability.”

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Data management standards are needed to ensure the integrity, security and availability of mortgage data, especially when working with a variety of cloud-based and on-premise systems. The new MISMO group will identify and adopt existing data governance and management best practices wherever possible. As gaps are identified they will create and implement data governance and management best practices that can be used by mortgage industry participants as well as those in the MISMO community, with the goal of streamlining the adoption of MISMO standards throughout the mortgage industry.

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Specifically, the Data Governance and Management Community of Practice will be tasked with creating a data governance strategy and operating model as well as a data accountability framework and templates for developing data quality rules, metadata and data lineage.

By joining the MISMO Data Governance and Management Community of Practice, participants will gain access to resources and expertise on data governance and management issues that impact their organizations.

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LOS Update Adheres To UCD Specs

Wipro Gallagher Solutions (WGS), a Wipro Limited company, has updated its NetOxygen Loan Origination System (LOS). The solution has been directly integrated with Government Sponsored Enterprise (GSE) tools to ensure full compliance with the Uniform Closing Dataset (UCD) in the United States.

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A required industry dataset based on the Mortgage Industry Standards Maintenance Organization (MISMO) 3.3 standards, UCD allows information on the Consumer Financial Protection Bureau’s (CFPB) Closing Disclosure to be communicated electronically, thereby providing accuracy, consistency and clarity on loan transactions. The UCD must be submitted to the GSEs for validation of loans with a note date on or after September 25, 2017. UCD submission must occur prior to Uniform Loan Delivery Dataset (ULDD).

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The direct GSE integration not only allows NetOxygen users to adhere to industry compliance standards, but also enables them to submit a file from NetOxygen’s delivery manager for GSE consumption.  NetOxygen also enables the file to be extracted manually for downstream aggregators. WGS ensures client UCD readiness by using Application Program Interfaces (APIs) that connect to both WGS’ native and third party imaging solutions.

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WGS is conducting orientation sessions with customers to demonstrate the new features and provide guidance on how to extract and upload the data most effectively.

“We’ve designed a structured compliance approach that not only provides lenders with the tools necessary to comply with the latest requirements well before the mandate’s deadline, but also helps them streamline their processes,” said Scott Dunn, Head of Product Management and Strategy, Compliance for Wipro Gallagher Solutions, Wipro Limited.

Bloom’s Taxonomy

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Let’s start with describing Bloom’s Taxonomy. In 1956, Benjamin Bloom with collaborators Max Englehart, Edward Furst, Walter Hill, and David Krathwohl established a framework for categorizing educational goals. Generally referred to today as Bloom’s Taxonomy, this framework has been applied by generations of educators at all primary, high school, and collegiate levels.

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The Original Taxonomy (1956)

Here are the authors’ brief explanations of these main categories.

  1. Knowledge: Involves the recall of specifics and universals, the recall of methods and processes, or the recall of a pattern, structure, or setting.
  2. Comprehension: Refers to a type of understanding or apprehension such that the individual knows what is being communicated and can make use of the material or idea being communicated without necessarily relating it to other material or seeing its fullest implications.”
  3. Application: Refers to the use of abstractions in particular and concrete situations.
  4. Analysis: Represents the breakdown of a communication into its constituent elements or parts such that the relative hierarchy of ideas is made clear and/or the relations between ideas expressed are made explicit.
  5. Synthesis: Involves the putting together of elements and parts so as to form a whole.
  6. Evaluation: Engenders judgments about the value of material and methods for given purposes.

Although it received little attention when first published, Bloom’s Taxonomy has since been translated into 22 languages and is one of the most widely applied and most often cited references in education.

The Revised Taxonomy (2001)

One of the basic questions facing educators, whose core mission is to improve thinking, has been where to start. As always, definitions are in order. Before we can make a thing better, we need to know more about what the thing is.

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In 2001 a group of cognitive psychologists, curriculum theorists, instructional researchers, and testing and assessment specialists published a revision to Bloom’s Taxonomy that focuses on a more dynamic classification. The changes occur in three broad categories: terminology, structure, and emphasis.

A. Terminology: Changes in terminology between the two versions are readily apparent. In short, Bloom’s six major categories were changed from noun to verb forms. The use of verbs more accurately describes the cognitive processes by which thinkers encounter and work with knowledge. It is also notable that the top two categories are switched in this revision so that creating (formerly synthesis) occupies the top position

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Bloom’s Taxonomy

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Let’s look at the revised Bloom’s Taxonomy and add some reference to MISMO.

  1. Remembering: Retrieving, recognizing, and recalling relevant knowledge from long-term memory. MISMO: The initiative started with a small group of individuals organizing a list of data elements based on their past experience and interactions, partially influenced by their area of interest or expertise.
  2. Understanding: Constructing meaning from oral, written, and graphic messages through interpreting, exemplifying, classifying, summarizing, inferring, comparing, and explaining. MISMO: The first goal was to define a system or method to attach a label and definition of the data element in the hopes of identifying and eliminating duplicates. Obviously, there was a lot of discussion and different opinions.
  3. Applying: Carrying out or using a procedure through executing or implementing. MISMO: This was the Logical Data Dictionary (LDD. Looking back, it was probably the most significant achievement in exchange of information (data) between two entities where they both had the same definition. Although many feel we are in maintenance mode, the increasing focus on demand for more data-driven processes will continue to be a major initiative going forward.
    • The first 3 steps were building the foundation.
    • The next 3 steps were bringing it all together.
  4. Analyzing: Breaking material into constituent parts, determining how the parts relate to one another and to an overall structure or purpose through differentiating, organizing, and attributing. MISMO: Based on the XML standard at the time and our knowledge and experience, some of the earlier transaction sets were defined as Document Type Definitions (DTD). Specifically, they were created around defined transaction types, like credit, mortgage insurance, etc., independent of each other.
  5. Evaluating: Making judgments based on criteria and standards through checking and critiquing. MISMO: Next, the development of the schema and business reference model was also very significant. However, to the non-technical person, the visual of this model can be overwhelming. The need to get the business side involved is paramount to the continuing success of the organization and the industry.
  6. Creating: Putting elements together to form a coherent or functional whole; reorganizing elements into a new pattern or structure through generating, planning, or producing. MISMO: The development of the Logical Data Dictionary and the Business Reference Model by all the volunteer contributors from all areas of the industry was unprecedented. Kudos to all!

B. Structural: Structural changes to the taxonomy are well-considered and provide an easy-to-grasp understanding of the structure’s logical underpinnings. Bloom’s original cognitive taxonomy was a one-dimensional form. The Revised Bloom’s Taxonomy, with the addition of products, takes the form of a two-dimensional table. One of the dimensions identifies The Knowledge Dimension (or the kind of knowledge to be learned) while the second identifies The Cognitive Process Dimension (or the process used to learn).

C. Emphasis: Emphasis is the final category of changes. Bloom himself came to understand that his taxonomy was being used by many groups and organizations that never considered an audience for his original publication. In contrast, the revised version of the taxonomy is deliberately intended for a broader audience. Certainly, the same could be said for MISMO.

People around the world are familiar with the original Bloom’s Taxonomy and are not necessarily quick to embrace its change. After all, change is difficult for most people. The mortgage industry is no exception.

The goals for MISMO are threefold. 1) Increase adoption. 2) Increase membership, especially in the lender community. 3) Be cognizant of new opportunities to further the advancement of the standard.

My goal always is to present something that you might not have known about in the hopes that it will spur you to think differently. So, why do I bring this up? Are you focused on what MISMO is doing right now? Maybe you are and maybe you’re not, but if you’re not, you should be. Data standardization and the industrywide acceptance of that data standard is absolutely necessary for the mortgage industry to advance. Change may not be comfortable, but you can’t have true advancement without embracing change.

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It’s Time To Broaden Your View

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As the mortgage industry shifts to a purchase lending environment that is more regulated, lenders have to have a broader view. It’s impossible to compete if you’re just looking at a piece of the process. You have to look at the whole process and devise clear strategies to cut cost, increase efficiency and offer a better borrower experience, all at the same time.

“First, you need to make sure that there is an easier disclosure process. Some people are still doing paper disclosures. There are portals out there where the borrower can sign in and you get all the borrower’s info without them having to provide it,” noted Josh Friend, founder and CEO of InSellerate.

“If we make the process easy, everyone wins. You need to give the borrower an easier way to see what they qualify for and a better process after they start the process. A lot of first time homebuyers don’t realize that they can buy a home and that it’s better for them vs. renting,” Friend pointed out.

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InSellerate provides sales management solutions to help sales teams contact, manage and convert leads. The system is fully integrated with leading online lead providers, inbound calls, web forms, etc. The InSellerate Sales Automation System enables lenders to deliver the virtual handshake to leads and improve the customer acquisition process.

“If you think about it, our costs turn out to be the borrower’s cost. So how do we lower those costs? Consumers are paying an additional $1,200 a loan because of compliance,” said Friend. “Lenders also need to be more efficient when it comes to marketing and prospecting. You need to make a customer for life.

“Looking ahead, regulation will be a large theme over the next 18 months because people are still getting over TRID. People have interpreted TRID, but we still need clarity about what the regulation means and what compliance means. If you look at large lenders like Quicken, how did they get there? They were able to gobble a lot of marketshare in a short period of time because they understand technology and they are always advancing. If you want to succeed, you have to think big picture.”

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So, how do lenders start to think more about the whole process vs. just fixing individual pain points? “Clear communication is a given. Borrowers want more discussion upfront and more mobile communication,” answered Wade Hamby, National Director of Sales and Marketing of Stonehill Group. “Education is important. If you look at the market, first-time homebuyers are 35% today, but they are usually 40%. But lenders that do it right like Quicken are doing better then 40%. We need to do financial literacy to get borrowers in the market, as well.”

Wade Hamby has more than 25 years of executive experience in mortgage lending, outsourcing and quality control. He oversees The StoneHill Group’s nationwide sales and marketing activities and is responsible for expanding use of the company’s solutions in the mortgage industry. A past recipient of the Mortgage Bankers Association of Florida’s Brown L. Whatley Award for his contributions to the Florida mortgage industry, Wade has held leadership roles at AmeriCU Mortgage, Triad Guaranty and Hovde Financial. He is the former president of AboutYourMortgage.com LLC, a web-based mortgage services provider.

“As we move forward, we need to have less touch points. Technology has to be pursued,” Hamby continued. “We are also seeing commissioned loan officers going away. There is always a place for commissioned LOs, but we need other models, as well. We also have to train new people to want to be good LOs. We need new people and new ideas coming into the space.”

In addition to attracting younger staff, lenders also need to attract younger borrowers. “Lenders need to focus their technology on what works with millennials,” noted Jeff Bradford, Founder and CEO of Bradford Technologies, Inc. “It’s all mobile and iPad-enabled. Quicken’s rocket mortgage was a great start. There are ways for the borrower to upload everything to a lender through an easy-to-use mobile app. The lenders have to become more like Home Depot in a way so they can enable the consumer to do it yourself. It’s an exciting time.”

Jeff Bradford is a renowned expert in appraisal analytics and accuracy in collateral valuations, and the mastermind behind computer-aided appraising, the most far-reaching and significant advance in the appraisal segment in decades. He frequently presents and speaks at industry events, on topics that include technology, valuation processes and valuation standards. He is a strong proponent of open industry standards and was one of the chief architects of the MISMO Appraisal XML standard.

“There is a lot of opportunity,” explained Bradford. “When I was buying a home a long time ago, I remember being shocked that I could buy a home with the money I was paying to rent. If you can get that information to everyone you would see a spike in homeownership.”

And smart lenders get the big picture. “Simply put, the way our parent’s got their loan isn’t the way you would get a loan today. You have to clearly set expectations upfront. You need to do process engineering because anything else will leave you vulnerable at closing,” said Jim Hopkins, Regional Vice President of Envoy Mortgage’s Central Region.

“We at Envoy Mortgage, are focusing on the rising number of Hispanic homebuyers. It used to be that you had to have 20% downpayment, then we went into the Wild, Wild West times and you didn’t need any money down, and today people assume they have to have 20% again. So, we have to educate the borrower. We also have to overcome the barriers like language and education.”

Jim Hopkins is a graduate of the University of Texas and has been with Envoy Mortgage since 2001. While at Envoy Jim has been heavily involved in the strategic development of sales strategies and recruiting. Jim is skilled in Mortgage Banking, Mortgage lending, loan origination and holds a CMB Designation from the MBA. He has held a variety of positions at Envoy and is currently the Regional Vice President of Envoy’s Central Region. Jim is a part of the Mortgage Bankers Association, Houston Association of Realtors and the Texas Mortgage Bankers Association (TBMA).

“From a lender standpoint, a lender’s cost becomes the consumer’s cost. The cost of producing a loan is close to $6,000. A lot of that is because of the regulatory burden, but there is only so much you can do about that,” Hopkins said. “If you want to have a meaningful reduction in cost you have to have an ironclad, streamlined process. The penalties are significant. You can focus on the micro level and automate this or that, but the biggest burden is the regulatory burden.”

The strongest of lenders will adopt more and more technology to gain a competitive advantage throughout the rest of 2016 and into 2017. “The story going forward is going to be about how quickly you can adapt. The old guys that can’t adapt will become the dinosaurs and they won’t be able to do the business that they are used to doing,” Hopkins concluded.

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Is MISMO Finally Catching On?

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The challenges the lenders face, to name a few, are the increased demand to offer multiple ways to connect to consumers, the cyclic nature of the mortgage industry, and the never ending regulatory requirements. Technology is the answer to these challenges but that brings another challenge into play. Many lenders currently have multiple systems, some legacy, serving different sectors of their business that don’t necessarily have seamless integrations.

In the mortgage loan process we collect a vast amount of data during the application, processing, closing and delivery phases. Propagate that across multiple business channels and multiple applications and you have a lot of data to absorb and understand. Data, at its lowest level of abstraction, is simply a collection of facts. In order for data to become information, it must be interpreted and classified. The ability to use information (data) to make quick real-time decisions is essential in today‘s mortgage market. There is no doubt that data and everything associated with data is a company’s most important asset.

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MISMO has been tireless in its pursuit of building data standards for the industry to ensure that everyone accessing data has a common understanding of what it represents. What MISMO has built is a Logical Data Dictionary (LDD) so we have a common definition and meaning for the individual data elements and a reference model (schema) that ties it all together.

The Momentum started here: The Uniform Mortgage Data Program® (UMDP®) is an effort undertaken jointly by Fannie Mae and Freddie Mac at the direction of their regulator, the Federal Housing Finance Agency, to enhance data quality and standardization. At the MISMO Spring Summit, the GSE’s provided this update:

Existing initiatives are:

>>The Uniform Collateral Data Portal (UCDP) is a technology application through which lenders electronically submit appraisal reports for conventional mortgages to be delivered to Fannie Mae or Freddie Mac.

>>The Uniform Appraisal Dataset (UAD) was jointly established by Fannie Mae and Freddie Mac to provide common requirements for appraisal data.

>>The Uniform Loan Delivery Dataset (ULDD) was jointly established by Fannie Mae and Freddie Mac to provide common requirements for loan delivery data. Develop and publish Phase 2 specifications. Q3 2016

>>Phase 3- Lenders/Technology partners Assessment and Implementation TBD

>>The Uniform Residential Loan Application (URLA) initiative is where Fannie Mae and Freddie Mac are revising and redesigning the Uniform Residential Loan Application (URLA). The revised URLA form will provide lenders and borrowers with greater clarity and an easier, more consumer-friendly loan application. Finalize URLA form by Q3 2016. Implementation and rollout starting Q1 2017 and in production Q1 2018.

>>The Uniform Loan Application Dataset (ULAD) initiative is where Fannie Mae and Freddie Mac are developing a corresponding standardized dataset, for the Uniform Residential Loan Application (URLA). Finalize ULAD data mapping by Q3 2016.

A new initiative is:

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>>The Uniform Closing Dataset (UCD) is an ongoing effort by Fannie Mae and Freddie Mac to provide a common industry dataset to support the Consumer Financial Protection Bureau’s (CFPB) Closing Disclosure.

>>Fannie Mae and Freddie Mac will require delivery of the UCD in Q3 2017 for all loans we acquire

>>Fannie Mae and Freddie Mac are implementing independent UCD collection solutions, with each GSE:

a.)Having separate system implementation and testing timelines

b.)Providing communications, training, and support materials specific to their own collection system

>>The GSEs are adhering to the guiding principles established under the UMDP and have aligned on:

a.)Use of the identical UCD Delivery Specification, which can be found on the UCD pages at Fanniemae.com and Freddiemac.com

b.)The data points, enumerations, and conditionality for the UCD XML file collected by each GSE

>>The GSEs will provide more specificity regarding the UCD collection mandate date later in 2016

>>GSEs Require Seller Data for all CDs and must be included in UCD XML file in one of the following ways:

a.)One PDF of Combined Disclosure OR

b.)Two PDFs – one of Borrower Split and one of Seller Split

Fee Standardization is Goal of UCD

>>Historical Use of Fee Names on HUD-1s Proved Need for Standardization

a.)Analysis of 90,000 HUD-1s showed inconsistency with the naming for a fee, credit or charge

b.)Inconsistency in the definition of the fee, credit or charge

>>Regulatory Descriptions and Examples

>>Regulatory Descriptions of Fees for Each Section Help Promote Standardization

a.)Origination Charges: Paid by the borrower directly to the loan originator (LO) for originating and extending the credit

b.)Services Borrower Did Not Shop For: Services the LO requires that were provided by persons other than the LO or mortgage broker (MB) and for which the consumer was not permitted to shop

c.)Services Borrower Did Shop For: Services the LO requires in connection with its decision to make the loan that were provided by persons other than the LO or MB for which the consumer was allowed to shop

d.)Other: Charges for obligations incurred by the borrower independently of any requirement imposed by the LO or MB

The GSE’s eMortgage initiative is to identify barriers, explore alignment opportunities and develop action plan during 2016. Implement and act on action plan during 2018.

Are we finally getting past the focus on documents? There has been an overabundance of articles written about documents and data. I look at it as putting the horse before the cart. You need to be focused on the data required to manage transactions rather than the documents that would eventually serve as containers for that data. I applaud the initiatives on the GSE’s requiring data sets based on the MISMO architecture.

The MISMO Momentum carries on with other agencies:

>>FHA: The Total Scorecard is based on the MISMO Application Data Q4 2016 and they are starting to work on the new URLA mapping Q3 2016. The Electronic Appraisal Dataset is also based on MISMO. Q3 2016

>>CFPB: Lender/technology partners are preparing for new HMDA reporting by conducting analysis on data collection in 2018 for reporting in 2019.

>>Ginnie Mae: Lender/technology partners are preparing to submit the Pool Delivery Dataset (PDD) by using industry standards set by MISMO. TBD

My message to lenders is that this exchange of information impacts every facet of your business. Don’t necessarily rely on your tech vendors for your solution. They may very well be your best option, but it is imperative that you understand all the idiosyncrasies and the interactions with all your other channels of business. MISMO is more than a standard; it is a technology driver for the exchange of information (data) that will improve your business process.

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MISMO Changes Its Structure To Encourage Participation

MISMO, the Mortgage Industry Standards Maintenance Organization, announced today that it is simplifying its membership structure to encourage broader participation in the creation and use of standards across the mortgage industry lifecycle. Starting next year, there will be a single membership level for all corporate members.

Effective January 1, 2017, MISMO will be consolidating its existing membership tiers into a single membership level. All MISMO members will have the same annual membership fee and receive the same membership benefits, and all memberships will convert to a calendar year term (Jan 1-Dec 31). Annual membership dues will be $2,500. This is the same amount as the existing Silver Level Membership, which is the minimum current fee for most corporate members. For individuals who do not belong to corporations or government agencies (e.g. sole proprietor), MISMO will retain its existing individual contributor membership for an annual rate of $500.

In addition to the new membership structure, MISMO plans to continue to enhance the benefits for all members which include creating new products, tools and services and making them available to members at no charge. MISMO will continue to make versions of its standards freely available to the public.

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“We expect that the simplified membership structure, along with increasing membership benefits, will encourage greater participation in the organization” said Bill Beckmann, MISMO Board Chairman and CEO of MERSCORP Inc. “Increased participation will provide for a broader and deeper set of perspectives when standards are developed, which should continue to result in improved standards for all parts of the mortgage industry.”

A new program will be announced in the near future that will enable current Gold, Platinum and Diamond level members to retain the additional benefits that have been offered to them under the current plans. This new program will be distinct from the new Membership Plan.

MISMO was created in 1999 as a subsidiary of the Mortgage Bankers Association (MBA) to advance the development and adoption of standards for the mortgage finance industry. Today, those standards are accepted and deployed throughout the mortgage industry and are required by many industry regulators, housing agencies and by the government-sponsored enterprises (GSEs).

“More than ever, the mortgage industry needs to adopt standards in order to reduce costs and improve data quality. MISMO is evolving to enable better collaboration between lenders, service providers, credit agencies, mortgage insurers, title insurers, investors, and government to improve the quality of information that is shared across the industry,” said Mike Fratantoni, MISMO President and Chief Economist and Senior Vice President, Research and Industry Technology at MBA. “These changes will enable MISMO to better serve its members and the industry by providing additional tools and resources to support collaboration and standards development efforts. “

MISMO members receive significant discounts on MISMO products and services, and get access to productivity enhancing tools and resources. Members also receive information about, and access to new standards before they are released publicly and the opportunity to network with industry peers and others such as GSE and agency personnel that actively participate in the group.

“MISMO’s standards are at the core of our day to day operations and really our entire industry. Lenders that maximize the full breadth of MISMO’s membership and resources position themselves ahead of the curve and are able to achieve higher profits, greater efficiency, better loan quality and lower loan costs,” said Josh Weinberg, MISMO Board Vice Chair and Senior Vice President, Compliance at First Choice Loan Services Inc. “As lenders continue to face increased investor requirements resulting largely from the frenetic pace of regulatory and compliance changes, there’s really been no better or more important time to get involved with all that MISMO has to offer.”

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MISMO Gets It Right

Two people that I consider to be industry visionaries have been appointed to high-level positions within the Mortgage Industry Standards Maintenance Organization (MISMO). Specifically, the MISMO board of directors represents a cross-section of the real estate finance industry that manages and directs MISMO’s business and affairs. It consists of representatives from the residential and commercial mortgage industry who serve for staggered two-year terms. Here’s the scoop on its new appointees:

First, Simplifile’s Vice President of Strategic Planning Nancy Alley was appointed by the Mortgage Bankers Association (MBA), parent corporation of the Mortgage Industry Standards Maintenance Organization (MISMO), to the MISMO board of directors.

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“It’s an exciting time at MISMO and I am honored to join the board,” Alley said. “With the standard at the forefront of solving real industry business problems and regulatory challenges, I believe MISMO is a foundational piece of our future and I’m thrilled to be a part of it.”

Second, the Mortgage Bankers Association has also appointed eLynx President and CEO Sharon Matthews to the board of directors of MISMO. eLynx advocates strongly for the adoption of industry standards and is the only vendor certified as MISMO compliant in the TRID domain and at the Premiere Level in the information exchange domain.

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“I am delighted to be joining the MISMO board,” said Matthews. “It will be an honor to work with such a highly-regarded and influential group of leaders and visionaries. I look forward to helping in the evolution and growth of MISMO standards for our industry.”

MISMO is the technology standards body for the residential and commercial real estate finance industry. MISMO develops, promotes and maintains voluntary electronic commerce procedures and standards that allow participants in the mortgage process to exchange real estate finance-related information and electronic mortgages more securely, efficiently and economically.

Dave Stevens, CMB, President and Chief Executive Officer of MBA said in announcing the new board members, “In its most recent scorecard, the Federal Housing Finance Agency pledged active support for mortgage data standardization initiatives, including MISMO. The technology used to serve customers in housing finance continues to evolve and MISMO will play an increasing role in solving business and operational problems.”

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