UI Paper Makes Case for Uniform Mortgage Servicing Data Standards
A new paper from the Urban Institute, Washington, D.C., said uniform data standards for mortgage servicers would benefit consumers, increase data accuracy, lower risk of errors and offset "skyrocketing" servicing costs.
The authors--Karan Kaul, Laurie Goodman, Alanna McCargo and Todd M. Hill--developed the paper, the fourth in a series, with support from the Mortgage Servicing Collaborative, an initiative of the Urban Institute's Housing Finance Policy Center that seeks to improve access to credit by identifying and generating support for reforms that can address lender reluctance to originate and service mortgages. Mortgage Bankers Association Chief Economist Mike Fratatoni, MBA Associate Vice President and Managing Regulatory Counsel Justin Wiseman and MBA Associate Regulatory Counsel Sara Singhas are participants in the Collaborative, as is MBA Past Chairman Bill Cosgrove, CMB, Founder and CEO of Union Home Mortgage, Strongsville, Ohio.
The paper notes and commends the work of MISMO, the Mortgage Industry Standards Maintenance Organization, created in 2000 by MBA to standardized mortgage data elements. However, the paper said availability of MISMO data standards "is a necessary first step toward adoption but is insufficient," noting industry participants must implement MISMO standards, which requires significant planning, financial resources and operational bandwidth and typically takes years. Read More Here.