Innovation Investment Fee

MISMO, the real estate finance industry's standards organization, launched the Innovation Investment Fee in February 2021 to support work to foster innovation and efficiency in the digital mortgage process and much more. In 2022, more than 1,600 lenders from across the industry stepped up to pay the fee.  We can't thank you enough for doing your part to advance the development and adoption of essential standards for the industry. 

We encourage you to review MISMO's Annual Report which highlights our key initiatives and how they make your organization more efficient. We thank you for your continued support of our industry by investing in the next-generation initiatives funded by the fee. Right now, MISMO is helping the industry navigate the ESG landscape, facilitating the industry's digital transformation including providing a single source of information on e-eligibility, enhancing the PLS market, reducing friction associated with servicing transfers, providing eMortgage technology certifications, and so much more.

The Innovation Investment Fee helps fund this important work which benefits lenders of all sizes and business models. MISMO provides lenders with a unique seat at the table to collaborate with the GSEs, government agencies, regulators, and others to develop standards that are used throughout the industry. MISMO's work is leveraged in just about every mortgage today and reduces manual, paper-based processes, leading to lower costs, improved margins, reduced errors, faster cycle times, better accuracy, and enhanced customer experiences to name a few benefits.   

What you Need to Know about the Innovation Investment Fee 

As previously announced, the MBA and MISMO boards of directors endorsed a funding model of a $0.75 fee for all new loans. The latest billing occurred in February 2022. The bill included originations for the twelve-month period from January 1, 2021 through December 31, 2021.

    • The fee is calculated once a year based on prior year MERS® System registration volumes with billings expected to be issued each year in early February. For example, an organization that originates 1,000 loans will receive a bill for $750 (calculated as $0.75 times 1,000 loans registered on the MERS® System). Payment of the Innovation Investment Fee is voluntary.
    • MERSCORP has agreed to serve as the billing agent for the MISMO Innovation Investment Fee for loans that are registered on the MERS® System by calculating the fee and sending an invoice. All fees paid will be remitted by the lender directly to MISMO. No innovation investment fees will be retained by MERSCORP. MERSCORP is performing this function as a service to MISMO and the industry.   
    • Lenders that pay the Innovation Investment Fee will receive a license for the calendar year to use and implement MISMO standards for non-commercial purposes. Lenders that pay $1,000 or more will be recognized as MISMO members and receive commensurate benefits. If your invoice is less than $1,000 and you would like to become a MISMO member reach out to [email protected] for instructions. 
  • Payment Remittance Information is available including instructions for ACH payments; payments less than $250; and quarterly payment option for lenders invoiced $5,000 or more.

Call to Action for Lenders   

  • Lenders are encouraged to include the MISMO Innovation Investment Fee in their budget planning. 
  • Lenders are encouraged to set up MISMO as a valid vendor within their Vendor Management systems. Information to support set up is available here. Inquiries for additional information should be sent to MISMO at [email protected].
  • Lenders are encouraged to set up a process to manage the processing of the annual invoice.   

Creating the Digital Future for the Mortgage Industry  
MISMO is leading efforts to create a better digital mortgage experience for consumers and all parties involved in a real estate transaction. MISMO provides a standard language for exchange of mortgage industry information. The industry's drive for innovation through collaboration has produced efficiency, consistency, cost savings and consumer benefits through all aspects of the mortgage process. Read more about our recent accomplishments here.   

Your investment in MISMO funds our standards work to accelerate the industry's future. To continue meeting the needs of lenders and other industry participants, a consistent funding mechanism is necessary. Thanks for your continued support of MISMO and the Innovation Investment Fee.