MISMO Launches Initiative to Apply Digital Mortgage Standards to Loan Modification Process

MISMO, the Mortgage Industry Standards Maintenance Organization, seeks industry participants to join its initiative of applying digital mortgage standards, guidelines and best practices to the loan modification process.

“Millions of homeowners are facing financial hardships because of the COVID-19 pandemic and as of April 19, nearly 7 percent – 3.5 million – of mortgage borrowers are in forbearance. Mortgages for many borrowers exiting forbearance may ultimately need to be modified,” said Mike Fratantoni, President of MISMO and Chief Economist and Senior Vice President of Research and Industry Technology with the Mortgage Bankers Association. “MISMO is calling on the industry to help digitize the loan modification process, with the goals of handling the increased volume and improving the experience for servicers and borrowers.”

MISMO’s Digital Loan Modifications Development Work Group will bring together digital mortgage, servicing and loan workout professionals to review current loan modification processes. Currently, servicers working through loan modifications deal with paper-based processes and inconsistent forms. The DWG will set out to develop a set of best practices on how to create, sign, store and deliver electronically signed loan modifications.

Industry professionals with questions or interest in participating in MISMO’s DWG should send an email, with the subject, “Participate in Digital Loan Modifications Initiative” to info@mismo.org.

Release and use of MISMO standards and other resources are governed by the MISMO Intellectual Property Rights Policy. For more information on the policy, click here.

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


The Mortgage Industry Standards Maintenance Organization (MISMO) 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.