MISMO Publishes Mortgage Compliance Dataset
MISMO, the real estate finance industry’s standards organization, today announced that the Mortgage Compliance Dataset (MCD) specification has reached “Candidate Recommendation” status, which means that it has been thoroughly reviewed by a wide range of organizations and industry participants and is available for industry use.
The MCD is designed to be used by state and federal regulators, with their compliance vendor, to perform compliance testing of closed loans as part of mortgage origination compliance exams. Mortgage lenders, with their compliance vendor, will use the MCD to perform compliance testing of loans throughout the loan origination and post-closing processes.
“The new dataset introduces consistency to the exchange of information used by state and federal regulators for loan portfolio review examinations,” said Acting MISMO President Richard Hill. “The MCD will ultimately reduce friction, increase accuracy, and create a more efficient process for our stakeholders involved in the oversight and regulatory process.”
“MISMO’s standard-setting efforts–conducted in collaboration with state supervisors, industry, and technology firms–provide a critical foundation for improvements in consumer protection and financial stability in the mortgage market,” said Conference of State Bank Supervisors President and CEO Brandon Milhorn. “Broad adoption of these standards will support more efficient and effective state supervision of mortgage lenders and servicers, all while reducing compliance costs for these firms. Ultimately, the standards will provide consumers with additional confidence in the mortgage market and the credit products they rely upon to own their homes.”
The MCD specification replaces the fixed format Loan Examination File (LEF) with an XML schema-based version tied to version 3.6.0 of the MISMO Reference Model. As a companion to the MCD specification, MISMO also published a schema file to assist with implementation efforts.
Utilizing MISMO data terms and structures allows users to leverage the same data terms used in other agency reporting and data exchange across the mortgage industry and the mortgage lifecycle. This enhances data accuracy, creates processing efficiencies, and allows the file to be updated more easily as needed over time.
MISMO’s work to solve key business challenges is made possible by its members, champions, sponsors, and lender support through the Innovation Investment Fee. Visit MISMO.org to learn how you can get involved.
