Our MISMO Summit Takeaways: UCD Prep and Revised E-recording Guidance

This post is contributed by Mark Ladd, VP of Regulatory and Industry Affairs at Simplifile.

The Mortgage Industry Standards Maintenance Organization (MISMO) recently held the second of its three annual summit meetings in Austin, Texas. Four Simplifile team members, including Nancy Alley, our VP of Strategic Planning, who has a seat on the MSIMO Board of Directors, participated in the event. We had the opportunity to connect with a number of customers, business partners, and industry regulators throughout the week.

Many of our discussions concerned the upcoming requirements to deliver the Uniform Closing Dataset (UCD) and Home Mortgage Disclosure Act (HMDA) data in a MISMO-based format. UCD data will need to be reported beginning in 2017. The new HMDA rule will require covered lenders to begin collecting the new data in 2018 for reporting to the CFPB in 2019. MISMO is working diligently to be sure their XML schema will support all the necessary data points for both these regulations. Our Collaboration and Post Closing products are already designed on the MISMO Version 3.3 standard, to assist our customers with compliance and reporting for these rules.

We are excited about Fannie Mae’s and Freddie Mac’s pre-announcement regarding e-recorded security instruments. Currently the GSEs support e-recording, but they require settlement agents and lenders to maintain the ink-signed paper version of the document, in addition to the e-recorded version of the document. This has been a barrier to the adoption of e-recording for some. During the Summit, representatives of the two agencies announced that later this fall, they will be revising their guidelines to eliminate the requirement of maintaining the paper copy. The new guidelines will be a big win for efficiency in the industry.

And what would a MISMO Summit be without some conversation that only geeks could appreciate? I’m talking about down-in-the-weeds technical conversation that sounds like a foreign language to many of us, but it’s a really important aspect of MISMO’s work. For example, the Architecture Workgroup dedicated an important part of their meeting to how to best represent “many-to-many” relationships (i.e. when there are multiple borrowers who share multiple assets in a credit report). These discussions press the limits of the MISMO standards to be sure they work – not just one loan at a time, but that it still works when you scale it to thousands of loans per day.

Simplifile participates in both the technical and business process discussions at MISMO to ensure that the products we offer comply with the latest industry guidelines and support our customers’ need to do business in a regulatory compliant manner. Using Simplifile E-recording and Collaboration and Post Closing keeps you on the leading edge of our industry.