MISMO Releases New Industry Loan Application Dataset

MISMO®, the mortgage industry standards organization, released its new Industry Loan Application Dataset, a compendium of data points included in the new Uniform Residential Loan Application–the government-sponsored enterprises’ new Automated Underwriting System interfaces, as well as the existing Fannie Mae 3.2 file.

iLAD is expected to replace the many peer-to-peer data exchanges that currently use the Fannie Mae 3.2 file as a de facto data exchange standard. Adoption of iLAD is expected to be evolutionary, as businesses collaborate with business partners to determine the best time to implement. MISMO is issuing the specifications to provide time for companies to evaluate how and when to adopt iLAD.

iLAD is being released for a 60-day comment period for MISMO members. The comment period will remain open until November 3.

“It’s imperative that we have a standard process to allow the seamless exchange of loan application data between all industry partners,” said Rick Hill, Executive Vice President of MISMO and MBA Vice President of Technology. “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 consumers and drive down costs.”

iLAD, which uses MISMO’s v3.4 Reference Model, was created to address the mortgage industry’s need to exchange information included in the new URLA. Many industry participants historically have used Fannie Mae’s 3.2 file format as a de-facto standard to exchange application data. With pending 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 Fannie Mae 3.2 file format will not be updated for changes to the URLA, and Fannie Mae has announced it will no longer accept 3.2 file submissions after the legacy AUS formats are retired. The issuance of iLAD is expected to evolve into the industry’s standard method for exchanging data associated with the URLA.

“The collaboration exhibited by the industry to develop iLAD has been truly amazing,” said Lynn Calahan, Co-Chair of the Loan Application Data Exchange Workgroup and Vice President of Financial Reform-Data Strategies with Wells Fargo Home Mortgage. “We had deep involvement from lenders, LOS providers, the mortgage insurance industry and Fannie Mae and Freddie Mac. Developing and issuing iLAD in such an expeditious manner demonstrates the collaborative benefit of working within MISMO to solve critical industry issues.”

The comment period is also intended to afford workgroup participants who worked on the proposed iLAD at least 30 days’ notice prior to final release to review the exchange and disclose any applicable Patent Rights (as defined by MISMO’s 2018 Intellectual Property Rights Policy). Disclosures and comments should also be directed to info@mismo.org. At this time, MISMO also requests that organizations disclose in writing any patents and patent applications that might be infringed by an organization that uses or is compliant with iLAD.

Release and use of MISMO standards and other resources, including iLAD, are governed by the MISMO Intellectual Property Rights Policy. For more information on the policy, click http://www.mismo.org/x242632.

The new Industry Loan Application Dataset (iLAD) can be accessed at http://www.mismo.org/standards-and-resources/residential-specifications/datasets/industry-loan-application-dataset-(ilad), and will be available for MISMO member comment until November 3, 2019. Industry participants who have comments or questions about iLAD can contact MISMO at info@mismo.org.

For more information about MISMO, visit www.mismo.org.

The Mortgage Industry Standards Maintenance Organization is the standards development organization for the residential and commercial 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 GSEs that govern the exchange of information. 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. MISMO is managed by the Mortgage Bankers Association. For more information, visit www.mismo.org.