Mortgage Industry Standards Maintenance Organization

Mismo is the Standards development body for the Mortgage Industry. Mismo was established in 1999 by the Mortgage bankers association (mba). Mismo became a not-for-profit subsidiary of mba in 2004. Mismo developed a common language for exchanging information for the Mortgage finance Industry. Today, mismo Standards are accepted and deployed by every type of entity involved in creating mortgages, and they are required by most regulators, housing agencies and the gses that participate in the Industry. Use of mismo's Standards has been found to lower per loan costs, improve margins, reduce errors and speed up the loan process by reducing manual, paper-based processes while creating cost savings for the consumer.mismo Standards are grounded in an open process to develop, promote and maintain voluntary consensus-based Standards that allow participants in the Mortgage Industry such as Mortgage lenders, investors in real estate and mortgages, servicers, Industry vendors, borrowers and other parties to exchange information and more securely, efficiently and economically.mismo members pay annual dues on a calendar year basis. Some organizations participate as mismo champions, a higher level of membership that comes with additional benefits. Lenders path to membership/champions program is via payment of the innovation investment fee (iif). Lenders who pay at least $1,000 in iif are recognized as mismo members. Lenders who pay iif amounts consistent with mismo champions levels are recognized accordingly.mortgage bankers, lenders, servicers, vendors and service providers develop and use mismo Standards. Nearly every residential loan manufactured in the us utilizes mismo Standards. Mismo Standards are accepted and deployed by every type of entity involved in creating mortgages, and they are required by most regulators, housing agencies and the government sponsored entities (gses) that participate in the Industry. These Standards promote data quality and consistency throughout the Industry. In fy23 mismo maintained its focus on providing the resources needed to facilitate key Industry implementation and technology initiatives in key areas including: gse credit score changes; servicing transfers; title and closing form mapping; Industry loan application dataset (ilad) enhancements; private label mbs; closing instructions template mappings and specification; remote online notarization Standards enhancements; environmental, social and governance (esg); business process model life of loan model enhancements; business glossary enhancements; reverse Mortgage Standards; va verification of benefits standardized dataset; and data governance and management.mismo published version 3.6 of the mismo reference model in "candidate recommendation" status in may 2023, meaning that it has been thoroughly reviewed by a wide range of organizations and Industry participants and is available for use across the Industry. Version 3.6 of the mismo reference model is culmination of a multi-year collaboration among hundreds of volunteer experts and serves as the basis for nearly all mismo Standards and will shape every new api, dataset, and smart doc in the coming years.mismo published a new standardized exchange for closing instructions information. The master and transactional closing instruction templates and xml mapping specification created a consistent format for closing instructions and are designed to enhance communication between lenders and settlement agents, thereby reducing closing errors. The templates, and corresponding information exchange, focus on the format and Organization of closing instructions rather than legal language often included in instructions to create a better and more seamless experience for all parties.mismo published the implementation guide for the smart doc version 3 verifiable profile, which outlines the requirements needed to create mismo smart docs in pdf format. Mismo's implementation guide helps Mortgage Industry participants create a truly electronic record that produces a trusted data experience for market participants, ensuring that what the borrower sees and signs on a computer screen is the exact document that will be stored. Mismo developed the new defining the e and s reference guide and related data implementation considerations guide. The guides are designed to assist in identifying data elements that could be leveraged by lenders, investors, and trading partners to gather environmental, social and governance (esg) information. Also on the esg front, mismo introduced the flood risk disclosure resource guide as a resource for borrowers to understand the environmental risks that may be associated with a property before they purchase. The guide is now referenced on cfpb's website as an important tool for lenders to use to assist consumers in evaluating potential flood risk. Mismo drafted title and closing specifications dataset specifications for the closing protection letter, title commitment, fee sheet, and endorsements. Adoption of these dataset specifications will accelerate the Industry's digital transformation and allow organizations to continue to enhance automation and interoperability. Mismo published version 2.1 of the smart doc 1.02 standard mapping and implementation guide as final providing helpful guidance to Mortgage service providers looking to streamline the creation of home equity first lien enotes. Mismo published the data governance and management program implementation resource package, which includes a series of templates, guides, and educational resources that organizations can use to establish their own data governance and management program within their organization.mismo published the final version of its standardized private label rmbs dataset and implementation guide designed to enhance the quality and consistency of data sent to the rating agencies, which will lead to a more efficient process for private label residential mortgage-backed securities.updates were published for the mismo standard Industry loan application dataset (ilad) to include several gse aus changes (freddie mac loan product advisor v5.3.00 and fannie mae desktop underwriter v1.8.4) along with other member requested changes, including new datapoints to capture bankruptcy, foreclosure, and military service details. Ilad replaces many peer-to-peer data exchanges that formerly utilized the fannie mae 3.2 file as a de facto data exchange standard.mismo released the final consumer facing charge and fee naming guide which benefits lenders and vendors by providing a standard set of expected fee names and descriptions for the loan estimate and closing disclosure for commonly used fees bringing consistency across the Industry and facilitating efforts to comply with regulation.mismo published the final servicing transfers catalog, a playbook of best practices and reusable templates for conducting efficient servicing transfers and initiated efforts to explore development of a standardized servicing transfers data exchange. Mismo published a new dataset for comment which, developed in coordination with the u.s. department of veterans affairs, provides an Industry standard for the transmission of the information required on the va verification of benefits form, creating efficiency and improved interoperability within the system. Additional highlights in the development of mismo Standards in fy23 include: -mismo was recognized as a housingwire tech100 award winner for the third year in a row.-mismo continued to experience significant traction with respect to adoption of the mismo Standards. -mismo Standards continued to be used by fannie mae and freddie mac to comply with the requirements of the fhfa-mandated uniform Mortgage delivery program (umdp). -mismo Standards were used in the re-write of the gses updated uniform appraisal dataset (uad) requirements as well as for fha, va, ginnie mae, and usda modernization efforts. -mismo was used in the re-write of the ginnie mae pool delivery dataset (pdd). -mismo was used in updates to the gses underwriting systems. -mismo was used in the gses new uniform loan application dataset (ulad) updates. -mismo continued supporting collaboration and Standards development in the digital Mortgage space including review and update of the remote online notarization (ron) Standards; collaboration to create evault Standards; and growth of the emortgage technology certification program.-collaboration continued specific to development of a standardized regulatory compliance dataset to enable state level portfolio review data requirements to be more consistent and easier to provision.

Certification: mismo certification programs facilitate interoperability by providing transparency into which emortgage technology service providers comply with applicable mismo Standards and certification requirements. In fy23 mismo expanded our certification program by enhancing the product certification. Mismo product certification verifies that an interface, data exchange or api complies with mismo Standards within any Mortgage related product. The certification result is determined based on an objective and structured assessment of a solution to verify development and adherence to mismo Standards. For technology providers, a mismo certification provides market differentiation and shows the commitment to interoperability within the products and services built. Further, this year mismo's remote online notarization (ron) certification enjoyed 27 ron providers have been certified mismo compliant with 3 in process. Five eclosing providers have been certified mismo compliant with 4 in process.

Industry collaboration and events: Industry collaboration is a core function of mismo. Mismo Standards such as those noted above are developed through collaboration of Mortgage professionals and conducted using a voluntary consensus process in accordance with documented policies and procedures such as the mismo intellectual property rights (ipr) and antitrust policies. Industry collaboration may simply be an exchange of information, ideas, and/or education around a specific topic. Mismo's 35+ workgroups (wgs) were staffed by Industry volunteer contributors that focus on specific business process or technical domains. Standards activity is conducted by Industry contributors who chair workgroups, author business and technical documentation, represent the Organization at Industry conferences and attend meetings and conference calls to contribute their expertise towards creating Industry Standards. In fy23 mismo expanded use of wg facilitators, paid professional staff, to support the contributors and accelerate time to market for wg deliverables for prioritized initiatives ensuring that every wg or community of practice has a facilitator. Industry collaboration occurred in each of the wgs. Key areas of collaboration included credit scores; digital Mortgage; servicing transfers; title and closing; artificial intelligence; reverse mortgages; blockchain use cases in Mortgage; and more. Highlights are noted below.mismo provided Industry leadership specific to the fhfa mandated credit score and credit reporting changes. Mismo conducted a workshop in january 2023 to identify and document operational and implementation questions arose following director thompson's announcements on credit scoring changes in october 2022. At the workshop, a cross section of lenders, servicers, Mortgage insurers, technology providers, credit bureaus, credit resellers, service providers, and the gses, among others, collaboratively identified many critical issues including those related to underwriting, pricing, eligibility, validation, and disclosures that are connected to the introduction of new credit scoring models, updated models, and the move from a tri-merge of scores to a bi-merge of scores. Mismo continued leading collaboration on credit score impacts and began development of Industry implementation guidance throughout the year offering multiple webinars to raise awareness and gather feedback. Significant progress was made getting to a common understanding of potential operational impacts and related Industry concerns.mismo partnered with the mba to produce an artificial intelligence (ai) forum in september 2023, the first of its kind to be offered. The event kicked off with a reception at amazon's hq2 the evening before. The day long forum was attended by over 170 representatives from major lenders, service providers, technologists and government agencies. There were presentations by over 20 speakers ranging from the aws and google to the big 4 consulting firms to several lenders. The event was well received by all in attendance making it clear that the Industry was looking for an opportunity to collaborate in this area.mismo hosted a workshop in may 2023 to review and solicit feedback on the servicing transfers catalog and began discovery for the next phase of servicing transfers Standards activities including discussions around development of a standard servicing transfers dataset. Mismo's 2023 winter summit in january 2023 led off with a fascinating session featuring jason cave, director of fhfa's new office of financial technology. That was one of many highlights of the winter summit where mismo enjoyed record attendance; recognized Industry professionals for a job well done during the annual awards ceremony; and conducted multiple workgroup and community of practice meetings throughout the week. In june 2023, mismo hosted the 2023 spring summit in portland, Oregon where we enjoyed four productive days of panel presentations, workgroup meetings, and strategic planning sessions with attendees from every sector of the Industry. In total, we had 310 attendees, which included representatives from fannie mae, freddie mac, ginnie mae, fha, the u.s. department of veterans affairs, the cfpb, conference of state bank supervisors (csbs), fhfa, several fhlbs, common securitization solutions, the California department of financial protection and innovation, and more than 25 lenders. In addition to the workgroup meeting and panel discussions, mismo also held a mismo bootcamp session and a newcomer orientation for first-time mismo summit attendees. Eleven new associate mismo Standards professionals (amsps) and two new certified misom Standards professionals (cmsps) were recognized at the summit for earning their certifications. Mismo hosted its 2023 fall summit in arlington, va. The event kicked off with an informative interview with julia gordon, fha commissioner. She was followed with presentations covering the fhfa velocity tech sprint, esg, mba economic expectations, credit score changes and gse updates. There were workgroup meetings and strategic planning sessions over the rest of the week with attendees from every sector of the Industry. In total, mismo had over 360 attendees, representing the third largest mismo summit to date.