MISMO Launches New Adverse Action Notice Dataset

Tara Dunion tdunion@mba.org

Dataset Standardizes Content and Format of Adverse Credit Notices to Deliver More Consistent and Efficient Communication Between Lenders, Consumers

MISMO®, the real estate finance industry standards organization, launched its new dataset standard that maps to a sample Adverse Action Notice form and accompanying XML file.

This sample Adverse Action Notice, Statement of Credit Denial, Termination or Change Form and accompanying XML file, delivers crucial document data mapping capabilities that lenders can use when reporting adverse credit decisions.

The dataset has achieved “Candidate Recommendation” status, which means that it has been thoroughly reviewed by a wide range of organizations and industry participants and is available for use across the industry.

“This MISMO dataset addresses a key industry pain point since there are multiple credit denial documents in use across the mortgage industry,” said Seth Appleton, President of MISMO. “This MISMO solution standardizes the content and formatting of such documents to enable more consistent communication between lenders and consumers and a more efficient credit vetting process.”

MISMO’s Adverse Action dataset is comprehensive, featuring the data points included in existing variations of credit denial documents and representing a “typical” notice in terms of the form template text, sample loan file data and document field data mapping to MISMO v3.5 (including v3.6 extension). The accompanying sample XML file demonstrates the format required for dataset use. Together, this information package provides lenders and vendors a MISMO-standard method for completing credit denial forms in order to minimize errors and increase efficiency. 

MISMO’s work to solve key business challenges is made possible due to lender support of the MISMO Innovation Investment Fee. For information on MISMO and how to join, go here.