MISMO® Launches Initiative to Apply Digital Mortgage Standards to the Loan Modification Process
Mortgage Bankers Assocition
"Millions of homeowners are facing financial hardships because of the COVID-19 pandemic and as of April 19, nearly 7 percent - 3.5 million - of mortgage borrowers are in forbearance. Mortgages for many borrowers exiting forbearance may ultimately need to be modified," said Mike Fratantoni, President of MISMO and Mortgage Bankers Association (MBA) Chief Economist and Senior Vice President of Research and Industry Technology. "MISMO is calling on the industry to help digitize the loan modification process, with the goals of handling the increased volume and improving the experience for servicers and borrowers."
MISMO's Digital Loan Modifications Development Work Group (DWG) will bring together digital mortgage, servicing, and loan workout professionals to review current loan modification processes. Currently, servicers working through loan modifications deal with paper-based processes and inconsistent forms. The DWG will set out to develop a set of best practices on how to create, sign, store, and deliver electronically signed loan modifications... Read More Here!