The latest generation of the Mortgage Industry Standards Maintenance Organization data model brings new efficiencies and improvements to industry standards for data collection and integrity.
One of the biggest changes to version three of MISMO is that each technology process with recommended standards shares the same model, according to Greg Alvord, the senior vice president of technology at Optimal Blue. Alvord was a panelist at a technology session at the Mortgage Bankers Association’s annual convention in Atlanta. In the old version, each process had its own set of standards in the overarching MISMO recommendations.
The data technology standards recommended by MISMO will be incorporated in the Uniform Mortgage Data Program. UMDP is a Federal Housing Finance Agency-required initiative that will bring Fannie Mae and Freddie Mac’s loan delivery systems in line with each other, instead of the current system of each government-sponsored enterprise having its own system, Alvord said.
Another benefit of MISMO is that it provides consistency for data quality and transparency. In today’s mortgage market, lenders aren’t just competing with each other for origination volume; they’re also forced to compete for limited quantities of available credit. With MISMO standards for uniform mortgage application and underwriting data, lenders can compete on a level playing field for investor capital. Once lenders are provided credit to lend to borrowers, the investors can use MISMO standard data to consistently review that loans were originated to the correct underwriting parameters.
But Alvord said that the creation of standards is worthless until they are put in place. He said the current generation of loan origination systems isn’t adequate to fully maximize the benefits of MISMO version three. He projected LOS providers will begin updating their platforms to allow the best application of the new MISMO recommendations, including improvements to workflow order.
The panel also addressed the increased use of smartphones in the mortgage industry. Loan officers meeting prospective borrowers in the field can use both smartphone applications and mobile-optimized websites to start the mortgage application process. Harry Gardner, chief strategy officer at SigniaDocs, said there is some concern about smartphone data security, particularly with phones powered with the Android operating system. Android is backed by Google, but is open source to allow developers to build new tools on the system.
