The Future of Mortgage Technologies is SMART

The new Closing Disclosure form mandated under the Truth in Lending Act and Real Estate Settlement Procedures Act Integrated Disclosure (TRID) rules and regulated by the Consumer Financial Protection Bureau (CFPB) is now integrated into the mortgage-closing process. The rough seas related to the regulatory change appear to have calmed, and there has been a collective sigh of relief by the mortgage industry.

But the next surge of technological change is already coming quickly down the pike. The government-sponsored enterprises Fannie Mae and Freddie Mac have adopted a standardized dataset and electronic-document format to support the new TRID-mandated Closing Disclosure form. That standard is known as the Uniform Closing Dataset (UCD). It is based on an electronic-document model known as the SMART Doc - a concept developed originally by Fannie Mae and further advanced by the Mortgage Industry Standards Maintenance Organization (MISMO), a subsidiary of the Mortgage Bankers Association that develops voluntary electronic standards for the industry.By incorporating the use of SMART Doc technology, the GSEs are assuring that the Closing Disclosure's data that is delivered to homebuyers exists in an electronic- document format that also can be easily exchanged with other settlement parties or partners. This is a huge shift for the mortgage industry and is a major step forward for electronic mortgage documents. But more importantly, the changes will have a significant impact...Read More Here

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