MISMO Seeks Comment on Servicing Transfer Catalog
New tool supports a more effective and efficient servicing transfer process
MISMO®, the real estate finance industry standards organization, seeks public comment on its new MISMO Servicing Transfer Catalog.
The Catalog will assist the transferee in complying with the ever-changing regulatory environment; support timely and accurate transfer of residential loan information; facilitate uninterrupted loan servicing; and provides guidance for reducing potential negative effects to both the borrower and the new transferee servicer as a result of the transfer. The 60-day comment period runs through May 30.
The new MISMO Servicing Transfer Catalog, created through collaboration of the MISMO Servicing Transfers Development Workgroup, contains industry standard templates for the minimum set of instructional and transactional documentation required when conducting a servicer-to-servicer transfer of a portfolio of residential mortgage loans. It includes templates and best practices for servicing transfer instructions, portfolio characteristics, image transfer schedules, required reporting, reconciliation and more. The accompanying MSTC implementation guide (iGuide) is designed to assist the new transferee servicer with high-level information on how to implement the catalog into its production environment and maintain it going forward.
“Most servicers will attest that focusing on critical requirements, ongoing communication, information mapping, identifying priority loan characteristics and business processes, and the testing, validation, and reconciliation of information being transferred is key to success when conducting a servicer-to-servicer loan transfer,” said Jan Davis, Acting President of MISMO. “The MISMO Servicing Transfer Catalog is essentially a playbook that servicers can use to facilitate those processes.”
The MSTC, along with other core servicing transfer methods, should be updated and utilized by the resources conducting the transfer throughout the transaction. The MSTC includes:
- Implementation Guide (iGuide)
- Servicing Transfer Instructions (STI)
- Accompanying documents
- STI – Portfolio Characteristics
- STI – Image Transfer Schedule
- STI – Required Reporting
- STI – Reconciliation and Balancing
- Accompanying documents
The public comment period allows at least 60 days’ notice prior to final release to review and disclose any applicable Patent Rights (as defined by MISMO’s 2018 Intellectual Property Rights Policy). Disclosures and comments should be directed to info@mismo.org.
MISMO requests any organization that may have any patent or patent applications, or other intellectual property rights that might be infringed upon by an organization that uses or is compliant with these proposed MISMO products, to disclose them at this time in writing. All comments and disclosures are due by May 30, and should be directed to info@mismo.org.
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 visit MISMO.org.
