Innovation Investment Fee

About the 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 efficiency, cost reduction, interoperability, digital transformation, and innovation in the mortgage process and much more. In 2023, more than 1,000 lenders of all sizes and business models invested in the future of our industry by paying the Innovation Investment Fee.  Your investment makes it possible for MISMO to build the groundwork for a more efficient, less costly mortgage market.

MISMO is uniquely positioned to provide lenders with an opportunity to collaborate with the GSEs, government agencies, regulators, and others to develop standards that are used throughout the mortgage ecosystem. MISMO’s work is utilized in virtually every residential mortgage today and enables lenders to reduce manual, paper-based processes, leading to lower costs, improved margins, reduced errors, faster cycle times, better accuracy, and an enhanced customer experience, to name just a few benefits. Engaging with MISMO means taking part in shaping the industry’s future.

MISMO is working hard to help market participants improve efficiency and reduce costs for originating, selling, and servicing loans.  MISMO published the v3.6 MISMO Reference Model for implementation this year, making critical updates to the foundation of most MISMO standards today. This latest release includes critical changes that support the GSEs’ updated residential appraisal data exchange, Uniform Appraisal Dataset (UAD®); Private Label RMBS rating agency asset valuation data exchange; exchange of closing instructions enabling communications between lenders and closing agents; an updated SMART Doc® standard that enhances the ability to electronically verify that documents and data are consistent; enhancements to the MISMO API Toolkit; leveraging MISMO’s initiative to develop standards for consumer transactions, and more.  

MISMO convened the industry to identify and address operational and technology impacts of the FHFA required GSE credit score and reporting changes. This work will continue into 2024 and beyond as we develop a readiness checklist and implementation guidance.  We published the new Servicing Transfers Catalog – a playbook of best practices supporting the timely and accurate transfer of residential loan information, facilitating uninterrupted loan servicing, and reducing potential negative effects to both the borrower and the new transferee servicer.  We also developed the Consumer-Facing Charge and Fee Guide to promote the uniform application of fee names and descriptions and set standards for eVaults fostering interoperability among eVault providers. We published a Flood Risk Disclosure Guide endorsed by the CFPB; and developed ESG Data Implementation Considerations and Reference Materials.  

We encourage you to review MISMO's Accomplishments which highlight our key initiatives and how they make your organization more efficient. Right now, MISMO is making significant progress on many other high priority initiatives including reducing friction in servicing transfers, helping the industry successfully navigate the evolving ESG landscape, standardization of the Regulatory Loan Examination File submitted by lenders to state regulators, and creation of a standardized Housing Counseling dataset for housing counseling agencies to exchange information with their lender partners, improving connectivity in this vital relationship. 

The Innovation Investment Fee Funding Model 

The Innovation Investment Fee of just $0.75 per origination is a funding model endorsed by the MBA and MISMO boards of directors to accelerate the development and adoption of crucial industry standards and best practicesThe annual bill, to be sent in February 2024, is based on loans originated in 2023. MERSCORP will continue to act as the billing agent for this fee for loans that are registered on the MERS® System by calculating the fee and sending an invoice as a service to MISMO and the industry.

  • 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.  Non-payment of the Innovation Investment Fee will have no impact on the rights of a MERS® System Member. 
  • 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. Lenders who pay more will receive enhanced 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 enable lenders and market participants to reduce costs, improve efficiency, enhance interoperability and create a better 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 essential. Thank you for your continued support of MISMO through the Innovation Investment Fee.