New 2022 data standards could head off foreclosure errors in transfers

National Mortgage News

The restart of foreclosures is intensifying challenges involved in ensuring correct and compliant information is received when mortgages or related cash-flows transfer, but one such hurdle could be eliminated soon.

Protocols aimed at ensuring nothing is lost in translation when information about billing, late payments and related processing moves to a new system are set for comment and subsequent release in 2022, according to the Mortgage Industry Standards Maintenance Organization. "These transactions sometimes cause confusion among borrowers about when their next payment is due and things of that nature. Standards would help clear that up," said Seth Appleton, president of MISMO, in an interview.

That's important because risks for mortgage firms and borrowers are elevated when loans are distressed and servicing transfers are rising. While government relief has reduced the number of seriously delinquent loans, it's still nearly four times its pre-pandemic level, and the additional pre-conditions being set on foreclosures introduce new compliance sensitivities...  Read More Here!