MISMO creates essential standards designed to increase efficiency, accelerate our industry’s digital transformation, and enhance the interoperability of data, systems, and technology platforms in real estate finance.
MISMO solutions lead to lower costs throughout the mortgage process; reduced friction as information is shared effectively between the various parties in the mortgage transaction; faster, more efficient loan closings; enhanced innovation across the industry; improved regulatory and counterparty compliance; and reduced levels of fraud.
Below are a few highlights of the accomplishments MISMO achieved in 2022 to improve efficiency and reduce costs:
- Released Version 3.6 of the MISMO Reference Model which is the foundation for most MISMO standards today and will shape every new API, dataset, and SMART Doc® in the coming years. Also included are residential appraisal data enhancements required for the GSEs’ Uniform Appraisal Dataset (UAD); closing instructions exchange standards improving communications between lenders and their settlement partners; a standard dataset for the efficient exchange of the VA Request for a Certificate of Eligibility; and a standard Tax Transcript (IRS Form 4506-C) dataset for streamlined exchange of tax returns.
- Published an Adverse Action Notice Standard providing lenders and vendors a standard method for completing credit denial forms to minimize errors and increase efficiency.
- Released a new Reporting Guide to Facilitate the Exchange of Forbearance Data, designed to help industry professionals better report on loans that have been in or are in forbearance.
- Launched new commercial standards, including a Commercial Financial Operational Statement dataset standard and an updated Commercial Appraisal Dataset Standard, both of which facilitate the efficient exchange of data, and a Commercial Green Borrower Questionnaire, an industry resource for standardizing the collection of environmental information by lenders from borrowers.
MISMO also made substantial progress in enhancing the interoperability of data, systems, and technology platforms:
- Introduced the API Toolkit to flatten the MISMO model and enable the industry to build applications to trade smaller amounts of data, and, released three standard APIs: MI Estimated Rate Quote API; MI Insurance Activation API; and the FIPS Code Lending Limit API.
- Enhanced the Industry Loan Application Dataset (iLAD) for modifications to the GSE AUS specifications and to include USDA Guaranteed Loan Application Specifications.
- Published for comment a standardized template and information exchange to facilitate the bidding process for Mortgage-Backed Securities (MBS) between agency MBS sellers and securities dealers for Bids Wanted in Competition (BWIC).
And MISMO delivered value to the industry through initiatives that are accelerating our industry’s digital transformation:
- Launched the e-Eligibility Exchange, powered by Snapdocs, to provide a central source of digital closing information at the transaction level.
- Significantly enhanced the Digital Mortgage Resource Center that assists organizations with the transition to digital loan processes.
- Initiated the development of eVault standards.
- Certified two dozen platforms as meeting MISMO’s RON standards and four as meeting industry eClosing requirements, respectively.
- Developed a new Verifiable Profile SMART Doc® specification to restore trust in data.
Beyond the numerous standards and helpful resources published this year, MISMO continues to make significant progress on many other high priority initiatives, including:
- Servicing Transfers work to create a catalog of information that will form the basis of best practices and potentially an industry standard data exchange for transfers of servicing information.
- A new standardized Private Label Securitization (PLS) dataset to improve the quality and consistency of data sent to rating agencies and third party review firms, for faster, more efficient, and more accurate due diligence for private label RMBS.
- A new CoP on Environmental, Social and Governance (ESG) is working to help the industry successfully navigate and innovate in the evolving ESG landscape by defining and streamlining the exchange of ESG information.
- Two new initiatives that are moving forward have the potential to ease significant friction for lenders.
- The first will standardize the Regulatory Loan Examination File submitted by lenders to state regulators.
- The second will build a standardized Housing Counseling dataset for housing counseling agencies to exchange information with their lender partners, improving connectivity in this vital relationship.
- Remote online notarization (RON) standards are being updated to ensure they continue to deliver the trusted data that the industry needs, allow the eNote market to scale and confer benefits on industry and consumers.
We’ve also continued to enhance and maintain key industry resources including:
- An Enhanced Logical Data Dictionary (ELDD) that enables business and technology professionals to easily find out which data elements are available within the MISMO Reference Model and shows how each data element fits into the Logical Data Model, XML Schema and API Toolkit.
- MISMO Business Glossary, an enhanced online resource of mortgage industry business terms and data point descriptions enabling easy access via hashtags to the list of terms associated with iLAD, ULDD, UAD, UCD, and much more.
- MISMO Life of Loan, a high-level business process model depicting common activities that may occur over the life of a mortgage loan.
Finally, MISMO’s membership roster exceeded 500 members this year including the GSEs, FHLBs, housing agencies, and regulators among others, cementing MISMO’s status as a unique forum for collaboration across the industry when it comes to initiatives that tackle business, operational, and technological challenges.
Learn more about MISMOs recent accomplishments and other news at MISMO News.
Learn also how you can participate in a MISMO workgroup.
Don’t just listen to us, hear what some of our MISMO participants are saying:
- LendingPad:® A MISMO® iLAD Success Story
- FundingShield: MISMO® Certification Success FundingShieldCaseStudy2021