MISMO dataset aims to set the stage for new mortgage application
The Mortgage Industry Standards Maintenance Organization has released a dataset designed to prepare lenders for a new mortgage application and automated underwriting system upgrades at Fannie Mae and Freddie Mac.
Fannie, Freddie and the Federal Housing Finance Agency recently postponed an early 2020 implementation deadline for the new Uniform Residential Loan Application to make last-minute changes. But MISMO is moving ahead with the release of its standards because a new deadline could soon be set. The organization plans to make adjustments for any future changes to the new loan application by the government-sponsored enterprises.
This MISMO dataset is necessary because "with the implementation of the new URLA, as well as new AUS delivery specifications for the GSEs, the existing Fannie Mae 3.2 file will no longer meet industry requirements for peer-to-peer data exchanges," the Mortgage Bankers Association noted in a press release.
"It's imperative that we have a standard process to allow the seamless exchange of loan application data between all industry partners," Rick Hill, executive vice president of MISMO and vice president of technology at the MBA, said in the press release. "Standardized data exchanges developed in a consensus manner are a prerequisite for the industry for it to continue to successfully digitize its processes, find new ways to serve customers and drive down costs."
Lenders could use some lead time to implement the industry loan application dataset because "adoption of iLAD is expected to be evolutionary," according to the MBA.
The new dataset will be going through a 60-day comment period for MISMO members that will end on Nov. 3.
Among other things, the comment period gives MISMO workgroup members an opportunity to disclose any concerns related to patents and patent applications.