The next wave of servicing regulation is coming – Are you ready?

Join this webinar to learn what servicers need to know about recent and upcoming servicing compliance regulations and strategies experts are implementing to prepare for servicing regulatory audits.

In a purchase market, rookie LOs may struggle

Rookie LOs in 2020 could ride the refi wave and rack up a hefty monthly paycheck without Herculean effort. But these days, they'll have to sing for their supper.

Logan Mohtashami on trends in forbearance exits

In this episode of HousingWire Daily, Logan Mohtashami discusses several hot topics in the housing market, including recent trends in forbearance exits and future homebuyer demand in the midst of inventory shortages.

Natural disasters and forbearance: What borrowers and mortgage servicers need to know

With a rise in natural disasters, including wildfires, hurricanes, floods, tornadoes and mudslides. The mortgage industry needs to be proactive in examining programs to help borrowers recover.

Opinion

[PULSE] Digitizing the mortgage industry through MISMO

MBA's Robert Broeksmit on recent MISMO changes

Over the last several years, the Mortgage Industry Standards Maintenance Organization (MISMO) has been the driving force as the mortgage industry has transitioned to a digital world.

MISMO was created to standardize how the mortgage industry communicates, and its mission has been to drive standardized data and information through industrywide collaboration.

This, in turn, ensures efficiency, consistency, cost savings, and consumer benefits through all aspects of the mortgage process.

MISMO’s success up to this point has been notable, and thanks to investments by key stakeholders, it has created tangible benefits for both lenders and consumers, including:

  • Remote Online Notarization (RON) standards;
  • A RON Product Certification to assist lenders in identifying product vendors that meet MISMO standards;
  • A digital mortgage resource center to assist organizations with the transition to digital loan processes; 
  • Standardized Closing Instructions templates to enable lenders to communicate more effectively with settlement agents; 
  • The creation of an Industry Loan Application Dataset (iLAD), which provides a standard way of exchanging information included in the new Uniform Residential Loan Application (URLA) as well as the GSE automated underwriting systems; and 
  • The creation of standardized terms and definitions that enable consistency in the exchange of information with the GSE Uniform Mortgage Data Program, FHA, VA, Ginnie Mae and CFPB HMDA requirements.

Beyond these accomplishments, MISMO has played an important role during the critical times we face today. In fact, during the COVID-19 pandemic, MISMO’s purpose and execution have never been more evident. The rapid expansion of RON standards, digital closings, and electronic notes have all helped not only the industry but, more importantly, consumers as mortgage closings have continued during this difficult time. 

Robert Broeksmit
Guest Author

MISMO’s continued growth will be even more important in the future. That is why MISMO, with the broad support of MBA’s membership and MER Boards of Directors, will begin collecting a $0.75 administrative fee for every new loan registered on the MERS system. The new fee will allow MISMO to significantly enhance the valuable products and services it provides to the entire real estate ecosystem. 

The establishment of a dedicated source of funding will allow MISMO to speed up the development and adoption of new standards that will benefit lenders of all sizes and business models by reducing friction and improving the integration and flow of data across the entire industry. This will undoubtedly create a better digital mortgage experience for consumers and all parties involved in a real estate transaction.

MISMO has a bevy of initiatives and projects it plans to undertake, including a fully digitized loan file with standard elements, standardized industry definitions to promote document clarity and certainty, common closing datasets to create uniformity, and standardized servicing files to ensure compliance and ease servicing transfers. 

The COVID-19 pandemic has reinforced the importance of digitization in all aspects of our lives. And as we move into the future, it is incumbent on our industry to further embrace this digitization and grow beyond its current framework. MISMO will be at the forefront of this growth by ensuring that the industry effectively communicates across a wide variety of stakeholders as products and technologies evolve. 

Leave a comment

Most Popular Articles

These are the hottest housing markets in America

A housing market report from RE/MAX found that 36 of 51 metro areas had double-digit year over year sale price increases in August. Boise led the way.

Sep 17, 2021 By

Latest Articles

Fannie Mae to restart credit risk transfers

Fannie Mae announced that it will restart its credit risk transfer program by the fourth quarter of 2021, following proposed changes to its capital rule

Sep 21, 2021 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please