Innovation Investment Fee

Supporting efficiency, innovation, and collaboration

across the mortgage finance industry 

About the Innovation Investment Fee

MISMO, the real estate finance industry's standards organization, launched the Innovation Investment Fee in February 2021 to allow lenders to support the important work necessary to foster efficiency, cost reduction, interoperability, digital transformation, and innovation in the mortgage process and much more. To date, more than 3,000 lenders of all sizes and business models have 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’s work is helping market participants improve efficiency and reduce costs for originating, selling, and servicing loans.  2023 was a year of notable achievements for MISMO despite challenging market conditions. We released a number of new and updated standards, including an update to the reference model, the foundation of MISMO dataset, API, and SMART Doc® standards, and a Private Label RMBS Specification and Implementation Guide that will support the rating agencies and result in a more efficient Private Label RMBS securitization process. Responding to industry needs, we published an ESG Data Implementation Considerations reference guide to assist lenders and other industry participants in gathering environmental, social, and governance (ESG) information to meet reporting requirements and made important progress towards publishing a standardized regulatory examination file for lender submission to state regulators.

At the same time, MISMO provided an industry forum for discussion of the impact of FHFA credit scoring changes, the emerging use of artificial intelligence (AI), and the creation of a playbook of servicing transfers best practices. The combination of standards development with problem-solving and knowledge-sharing is critical to accelerating the digital transformation of the industry, reducing the cost of originating, selling, and servicing mortgages, while making the homebuying process easier and more affordable for Americans.

We encourage you to review MISMO's Accomplishments which highlight our key initiatives and how they can make your organization more efficient. In the year ahead, MISMO will continue to build upon the accomplishments of this year, developing and implementing standards to meet the evolving needs of the industry. Certification programs will be expanded so that the industry can find comfort in buying services and products that bear a “MISMO Inside” logo, knowing that they meet a published set of standards. Expanding upon our role as a forum for the industry, we will continue to pursue the sharing of knowledge — that includes automated valuation models and the rapidly developing field of AI and how to develop capabilities that are fair, accountable, and transparent. Our agenda will continue to be dynamic, with the objective of addressing the needs of the MISMO membership and the industry.  

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 practices.

  • MERSCORP will continue to serve as billing agent for the fee by calculating the amount due and sending the invoice as a service to MISMO and the industry.
  • The fee is calculated based on prior year MERS® System registrations. For example, an organization that registers 1,000 loans on the MERS® System in 2024 will receive a bill in February 2025 for $750 ($0.75 times 1,000).
  • Payment of the Innovation Investment Fee is voluntary, but these funds are essential support for MISMO’s important work.  Non-payment of the Innovation Investment Fee will have no impact on an organization’s MERS® System Membership but will impact the scope of MISMO programs and projects.
  • All funds remitted by an organization are paid directly to MISMO for investment in its standards development programs.
  • MERSCORP will not collect nor receive any funding from the fee. 
  • 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. To fuel progress towards MISMO’s ongoing initiatives, the minimum suggested payment for 2024 is $1,000.

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 the exchange of mortgage finance 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 support of MISMO through the Innovation Investment Fee.