MISMO Releases Closing Instructions Templates for Public Comment
MISMO®, the mortgage industry standards organization, released its new closing instructions templates for public comment.
Lender adoption of the templates is expected to reduce miscommunication and resulting errors that occur at closing due to the wide variance in formats that currently exists. The templates focus on the format and organization of closing instructions, rather than legal language a lender might include in instructions.
The Closing Instruction Templates will be available for public comment until Friday, January 10.
The Closing Instruction Templates includes two distinct templates. The Master Closing Instruction Template contains lender instructions common to all loans closed for that lender. It includes items such as instructions for conflicts of interest; data security and document destruction; verification of signer identity; and recording. The Transactional Closing Instruction Template includes information relating to a specific loan. It includes items such as borrower contact information; property information; critical dates; and conditions and stipulations. MISMO has also developed an implementation guide to assist with the adoption of the new templates.
Templates were developed through a collaborative effort across many sectors of the mortgage ecosystem. National and regional lenders, title and settlement services companies, escrow companies, LOS vendors and document preparation vendors worked together to develop templates that work for all parties involved in the closing process. The results of this collaborative process are expected to contribute to improved communications between parties, reduced errors and a better consumer experience.
The new closing instruction templates and implementation guide can be accessed at http://www.mismo.org/standards-and-resources/residential-specifications/other-residential/closing-instructions. Industry participants who have comments or questions can contact MISMO at firstname.lastname@example.org.
The comment period is also intended to afford workgroup participants who worked on the proposed closing instruction templates at least 30 days’ notice prior to final release to review the templates and disclose any applicable Patent Rights (as defined by MISMO’s 2018 Intellectual Property Rights Policy). Disclosures and comments should also be directed to email@example.com. At this time, MISMO also requests organizations disclose in writing any patents and patent applications that might be infringed by an organization that uses the proposed closing instruction templates.
Release and use of MISMO standards and other resources, including the proposed closing instruction templates and iGuide, are governed by the MISMO Intellectual Property Rights (IPR) Policy. For more information on the policy, please click http://www.mismo.org/x242632.
For more information about MISMO, visit www.mismo.org.