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The Mortgage Bankers Association is investing $2 million to support the creation of online notary standards and several other initiatives.
The money also will go toward a uniform dataset for private label mortgage-backed securities, a standardized closing instructions template, appraisal and rent roll standards for commercial and multifamily lenders, and common standards for smart phones and tablets.
The funding for the Mortgage Industry Standards Maintenance Organization was announced in conjunction with the MBA’s annual technology conference.
“This investment will speed the development of industry-wide standards, benefiting lenders of all sizes and business models, by improving the integration and flow of data across the entire industry,” said Mike Fratantoni, president of MISMO and a senior vice president and chief economist at the MBA, in a press release.
MISMO creates technology standards for the mortgage industry through an open, voluntary consensus process, but only members of the group vote on proposed standards.
The organization on Monday also recommended mortgage industry use of the Decision Model and Notation standard for documentation, implementation, execution and exchange of business rules and decisions in combination with existing MISMO standards.
The Object Management Group, an international technology standards consortium, developed DMN.
The DMN standard could help lenders more efficiently integrate investor guidelines or other business rules such as ability to repay requirements, servicing guidelines or Home Mortgage Disclosure Act reporting into their business processes, according to the MBA.
“Sharing rules, along with the data used by the rule, will help address many of the interpretive and compliance issues that currently bedevil the mortgage industry,” said Brian Stucky, CEO of vendor DecisionX and co-chairman of MISMO’s Decision Modeling Community of Practice, in a press release. “Understanding the rules used by business partners will help resolve differing interpretations and confusion, which in turn should greatly reduce costs across the industry.”