MISMO Spring Summit 2024: Key Insights and Takeaways

mismo-sping-takeaways

Written by Erin Bittenbender, Kellie Stoll, and Heather Kvasnak at PhoenixTeam

With nearly 300 online and in-person attendees and representatives from over 100 companies, the MISMO Spring Summit 2024 was packed with insights on AI, MISMO Adoption, Uniform Appraisal Dataset (UAD), Mortgage Compliance Dataset (MCD), credit reporting, and much more. Let’s dive into our key takeaways from the event.

Adoption & Implementation

MISMO standards awareness and adoption was the common theme at this year’s Summit. Work groups brainstormed ideas to raise awareness and encourage engagement across all stakeholders in the mortgage industry.

For many in the industry, “MISMO” is often seen as a forum exclusively for tech professionals to discuss industry standards. While it is true that MISMO standards foster innovation in the mortgage ecosystem as it pertains to digitalization, interoperability, and data transfer, there is a strong need for business professionals, including senior and C-suite leaders, to understand how implementing MISMO standards can:

  • Streamline processes
  • Enhance productivity
  • Decrease application-to-closing timeframes
  • Reduce costs associated with errors and rework
  • Digitally communicate with industry partners and vendors

MISMO initiatives are designed to advance the mortgage industry from pre-application to post-closing. By fostering a deeper understanding and broader adoption among technical and business leaders, the work efforts of the many MISMO volunteers will set the stage for a more efficient, interconnected, and innovative future for the industry.

Artificial Intelligence is Here to Stay

MISMO Residential Governance approved a new Artificial Intelligence CoP. The CoP will monitor industry trends related to AI, identify AI standards that the MISMO CoP could produce, and create AI education materials. Keep an eye out for the Call for Participants to join the new CoP. Our team can’t wait to participate! Tela Gallagher Mathias, Brian Woodring, John Comiskey

Preparing for Implementation of the Uniform Appraisal Dataset (UAD)

MISMO is spinning up a new effort in the Property and Valuation CoP to develop a comprehensive dataset specification that will facilitate the procurement of valuation services without the reliance of form numbers. This work effort will provide the industry with a common framework to exchange transactional order information using the new terminology and requirements being introduced in 2025 as a part of the Fannie Mae and Freddie Mac Uniform Mortgage Data Program (UMDP) Uniform Appraisal Dataset (UAD).

Mortgage Compliance Dataset (MCD)

The “Standardizing State Examination Data with the Mortgage Compliance Dataset” panel highlighted how lenders, compliance vendors, and regulators can leverage the MCD to improve the examination experience, increase vendor portability, and reduce LOS interface maintenance costs by developing a standardized dataset. The MCD is wrapping up its 60-day public comment period and is designed for:

  • State and federal mortgage regulators (and their compliance vendors) to perform automated compliance testing on closed loans that can be utilized across LOS platforms and doc vendors.
  • Mortgage lenders (and their LOS and compliance vendors) to perform compliance testing pre-closing and post-closing.
  • Other parties interested in post-closing origination compliance testing prior to whole loan purchases and securitizations.

The Credit Reporting CoP continues to develop guidance to support the industry’s implementation of the FHFA / GSE credit report changes. The CoP also hosted two educational sessions led by Jamie Norris, from Experian, that covered:

  • The Benefits of Consumer-Permissioned Data: Empowering Credit Profiles and Scores
  • Open Banking:Harnessing Alternative Cash Flow Data for Mortgage Consideration

FHFA is hosting a stakeholder forum on Tuesday, June 25th at 3:00 pm ET, focused on preparing for the publication of the VantageScore 4.0 historical credit scores on July 10th. You can find more information including registration information on the Fannie Mae and Freddie Mac sites.

The MISMO Spring Summit underscored the pivotal role that MISMO standards play in advancing the mortgage industry. By bridging the gap between technology and business leadership and by embracing new initiatives such as AI and the Mortgage Compliance Dataset, the industry can achieve greater efficiency and innovation. Continued collaboration and education among industry stakeholders is essential to realizing the full potential of these standards, ensuring a more streamlined and effective mortgage ecosystem for all.

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