Introducing MISMO e-Eligibility Exchange, Powered by Snapdocs
Mortgage closings are going digital at an exponential pace, and the policies that enable them are changing just as rapidly. More than ever the industry needs resources to know how "e" mortgage closings can be, also known as a loan's "e-Eligibility."
There are several factors that influence a loan's e-Eligibility, including trading partner requirements, county recorders' capabilities, title underwriting guidelines, eNotarization regulations, and settlement agents' readiness.
The MISMO e-Eligibility Exchange, Powered by Snapdocs (the e-Eligibility Exchange) helps you navigate these factors so that each closing can be as digital as possible. The e-Eligibility Exchange benefits both users and contributors of e-Eligibility criteria:
- Lenders can more easily determine the e-Eligibility of closings
- Investors can increase the percentage of loans they receive as digital collateral
- All industry participants can showcase their investments in digital-forward policies and capabilities
The transparency that the e-Eligibility Exchange provides is a critical step towards driving uniformity and standardization in digital closing policies. This standardization will ultimately enable the industry to scale its digital closing efforts and fully realize the benefits of digitization.
MISMO e-Eligibility Exchange, Powered by Snapdocs
MISMO e-Eligibility Exchange FAQ
What is the MISMO e-Eligibility Exchange?
The MISMO e-Eligibility Exchange provides centralized access to criteria that impact digital closings. It is a central source of information on counterparty requirements, eNotarization regulations, county recording requirements, settlement agent readiness, and title underwriter restrictions. It provides all MISMO members, data contributors and Innovation Investment Fee payers - free of charge - the information required to confidently determine how digital their closings can be.
What problem does the MISMO e-Eligibility Exchange solve?
One of the biggest barriers to the scalability of digital mortgage closings is the complexity of and lack of transparency into factors that help determine how digital mortgage closings can be (i.e., e-Eligibility). To truly be effective, e-Eligibility determinations need to be able to be made at the transaction level and earlier in the loan production life cycle. The time and effort required for each organization to individually research and maintain e-Eligibility information is incredibly burdensome. Without a central source of truth for e-Eligibility criteria, scalability of digital closings will continue to be inhibited. Similarly, if parties in the same digital closing transaction arrive at inconsistent conclusions when assessing e-Eligibility, this variability defaults to traditional, paper and wet-ink based closings.
Why did MISMO create an e-Eligibility Exchange?
MISMO created the e-Eligibility Exchange as a utility for the industry. MISMO undertakes such projects when the underlying service is valuable to the industry but not commercially viable or competitive with MISMO members products and services. MISMO creates essential standards to solve key business challenges for the real estate finance industry. We are focused on accelerating the mortgage industry's digital future by driving adoption of Remote Online Notarization and SMART Doc®/ eNote standards and more. These standards help reduce costs and time, and improve transparency, accuracy, and communications in real estate finance. This innovative resource that facilitates the centralized collection, consolidation, maintenance, and accessibility of e-Eligibility data will help expedite the scalability of digital mortgage closings.
Who will benefit from the MISMO e-Eligibility Exchange?
All industry participants will benefit from having a centralized repository of e-Eligibility information.
- Lenders can see how digital a loan can be at the transaction level.
- Counterparties will have a centralized way to syndicate and update their digital mortgage acceptance practices, increasing compliance. They will also be able to understand how their digital closing policies align with other organizations.
- Title Companies can update and provide their underwriting requirements for digital closings to lenders and settlement agents through a trusted single source.
- Technology Platforms will have a single repository for e-Eligibility criteria and can integrate with it via modern API services.
- Settlement Agents are able to inform lenders of their digital closing readiness.
What is MISMO's role regarding the e-Eligibility Exchange?
MISMO is the sole safekeeper of the data maintained in the e-Eligibility Exchange. MISMO will oversee development, host, and maintain the e-Eligibility Exchange as a single resource on behalf of the industry, providing transparency to the most comprehensive and up to date e-Eligibility information available.
What types of data are available through the MISMO e-Eligibility Exchange?
The e-Eligibility Exchange provides access to digital closing criteria such as the status of:
- eNotarization regulations by state
- eRecording capabilities by county: whether the county permits eRecording and/or paper out recording of eSigned and eNotarized closing documents
- Requirements by title underwriter: whether the title underwriter imposes any restrictions on digital closings
- Acceptance policies by trading partner: whether the investor, warehouse lender, servicer, subservicer, or custodian accepts eSigned and eNotarized closing documents.
- Readiness by settlement agent: whether the settlement agent supports digital closings and the type(s) of digital closings they support.
How is Snapdocs involved in the MISMO e-Eligibility Exchange?
In response to the challenges the industry faces in determining the e-Eligibility of mortgage closings, Snapdocs is making a major, multi-year contribution to MISMO and the industry by developing and powering the e-Eligibility Exchange in service to the industry and at no cost to MISMO to help scale the industry's utilization of digital mortgage closings. This contribution makes it so that all MISMO members, data contributors and Innovation Investment Fee payers will have access to the e-Eligibility Exchange free of charge.
When will the MISMO e-Eligibility Exchange be live?
The exchange went live April 2022 and is now available.
How do I get involved?
Email us at [email protected] for more information or for details on how to submit your organization's digital closing criteria for inclusion in the Exchange or how you can participate in using the exchange. Contributors of data to the Exchange will be publicly recognized.