Government E-Mortgage Standards Published Through MISMO Initiative
Attaining greater mortgage industry adoption of e-mortgage standards for residential lending is a high MISMO priority for 2007. The Mortgage Bankers Association's Mortgage Industry Standards Maintenance Organization subsidiary took a giant step in that direction with an agreement that the e-mortgage standards for government loans - FHA, VA and USDA Rural Development - will literally be published through MISMO.
In a MISMO update session at the MBA tech show here in March, Fiserv SVP Ron Duff, new chairman of the MISMO governance committee, said the "whole business of MISMO" is to increase compliance and adoption of MISMO standards at very inception of technology projects through the RFP process.
Using mortgage insurance as an example, he said MISMO standards enable Fiserv and others to have a single interface to support multiple service providers.
Though many lenders don't perceive a concrete ROI for MISMO compliance, he said compliance with the standards drastically improves time to market and decreases expenses, a theme seconded by panelist Gretchen Etzel, CTO of Dexma, who cited several cases demonstrating "real economics on the value of MISMO."
In an overview of MISMO's Government Housing Workgroup, Ginnie Mae program director Daniel Kahn noted that FHA and VA loans will be run through the Government Underwriting System launched in 2006, which was developed with MISMO standards by the USDA for use with rural development loans. He said GUS now will be available to mortgage lenders to integrate into their LOS systems for "MISMO-centric" one-stop shopping with government loans. He said the Ginnie Mae e-mortgage guide published exclusively through MISMO will be similar to Freddie Mac's. (c) 2007 Mortgage Servicing News and SourceMedia, Inc. All Rights Reserved. http://www.mortgageservicingnews.com http://www.sourcemedia.com