MISMO Workgroup Descriptions Residential Industry and Development Workgroups / Commercial Industry Workgroup

1. MISMO Workgroup DescriptionsResidentialIndustry and Development Workgroups / Commercial Industry Workgroup

2. Get Involved with MISMO! Join a Workgroup • New to MISMO? Signing up for a MISMO workgroup is the place to get started. Anyone can join a MISMO workgroup and dive right in to help develop and shape the industry standards. Review the list of active workgroups in this document to help you determine the best fit for your needs and interests. • Joining is simple – go to www.mismo.org and see the see the link to JOIN a WORKGROUP on the left side of the homepage. Sign up today for one or more workgroups and find out more about what MISMO has to offer! • Once you join, you will begin to receive notifications of upcoming meetings, documentation and other related information. You will also be included on announcements issued from MISMO related news, educational offerings, important meetings, and other helpful information.

3. MISMO Residential Industry Workgroup Descriptions

4. MISMO Workgroups-What are They Doing? Origination The Origination Workgroup encompasses three process areas: Application, Underwriting, and Closing. They are focused on the new “Know Before You Owe” Loan Estimate and Closing integrated mortgage disclosures - - including a review of the new data points required for the proposed mortgage disclosures. Servicing The Servicing Workgroup focuses on the areas of the MISMO Reference Model that support servicing activity. They are continuing their work on a significant volume of modifications to the model in response to recent regulations and industry updates such as new regulations that include new servicing reporting requirements from CFPB; the roll-out of Regulation AB from the SEC and multiple new or expanded reporting requirements such as the GSEs UMSD and potential new secondary reporting requirements.  Secondary The Secondary workgroup focuses on the transactions and concerns of the secondary market, primarily investor concerns regarding loan acquisition and delivery. This group is currently reviewing submittals from interested parties, to include the GSE’s and government entities planning implementations including ULDD Phase II and expanded HMDA requirements. This group also is reviewing changes and additions to the MISMO model in order to support securitization and disclosure requirements, in collaboration with the Servicing workgroup.

5. MISMO Workgroups-What are They Doing? e-Mortgage The e-Mortgage Workgroup works to develops specifications and guidelines for implementing electronic mortgages, from application and origination to closing, investor delivery and servicing. In addition to providing an informal business update from GSEs, MERS,PRIA, lenders, and vendors, the group discusses adoption issues, collaborates with regulatory agencies on compliance initiatives and works on various projects. Current projects include a FAQ on SMARTDoc terminology and the SMARTDoc PDF I Guide. Business Rules (BREW) With the MISMO V3 reference model experiencing increased usage in the mortgage industry, the Business Rules workgroup is working to develop ways to leverage the reference model as the foundation for business logic or rules systems. Credit Reporting The Credit Reporting Workgroup manages data elements that can be used by a mortgage originator to request, track and cancel credit reports that are typically required in mortgage lending. The group continues with their efforts to develop reference documentation for use by implementers who need to exchange credit reporting information using the MISMO v3.x reference model. Specific attention is being focused on the Credit Response container and business use cases such as embedding documents, mapping of credit liability, score and public record information.

6. MISMO Workgroups-What are They Doing? Document Services The first objective of MISMO’s Residential Document Services Workgroup is to create a standardized method for exchanging information about documents. This workgroup has established conventions for identifying unique document types, naming documents, and defining documents. The common identification, definition and naming of documents (and additional document-related metadata) is critical to enabling the vision of “lights-out” processing and subsequent retrieval of electronic documents and related data.   The second objective of the workgroup is to facilitatethe delivery of sets of documents in an interoperable fashion. These efforts include enhancements to the MISMO model, and the creation of an implementation guide fordocument delivery, including the use ofthe CMIS (Content Management Interoperability Services) model in conjunction with MISMO. The workgroup is currently focused on the development of I-Guides to support these objectives and other topics of interest to the group.

7. MISMO Workgroups-What are They Doing? Mortgage Insurance The Mortgage Insurance Workgroup manages data elements necessary for a mortgage originator to request and communicate the receipt and disposition of mortgage insurance. The group provides supporting information needed to obtain a mortgage insurance commitment on conventional residential mortgage loans. In addition, they support business transactions relative to servicing-related mortgage insurance transactions. The group is reviewing all published MI Transactions for MISMO Version 3.3, along with the final MI Implementation Guide. Addendums to the guide will include sample request response files and extension documents. Property and Valuation Services The Property & Valuation Services Workgroup focuses on the areas of the MISMO Reference Model that supports real estate property data. This work includes providing data point definitions and implementation considerations for property reporting, valuation services and collateral risk assessment.

8. MISMO Workgroups-What are They Doing? Title Insurance The Title Insurance Workgroup manages data elements necessary to order, update or cancel title services from a title insurance services company. The Title Insurance Workgroup is developing phase 2 of the electronic remittance standard (“eRemittance”) to incorporate invoice and payment functionality. They are also reviewing draft Implementation Guides for Title Request/Response and eTitlePolicy. Verification The Verification Workgroup (WG) works to provide a uniform mapping for exchange of information related to all types of verifications in the loan origination process. The intent is to utilize the Services node already within the MISMO structure and enhance it to provide a consistent mechanism for communication between originating companies and their third party verification vendors. The group recently submitted modifications to Core Data Structures for enhancements to the model related to the Verification of Income/Employment through the use of the 4506T form. The group is now working on developing content for an I-Guide. In addition, they are reviewing progress on the IRS eTranscript POCs and Tamper Seal exploration being done with the IRS and MISMO.

9. MISMO Residential Development Workgroup (DWG) Descriptions

10. Development Workgroup (DWG) PDF Smart Doc I-Guide This DWG is working on an I-Guide project that will detail the instructions and requirements for implementing interoperable MISMO version 3 SMART Docs in PDF format. The DWG will develop sample SMART Docs showing the PDF-specific implementation of features including, but not limited to, electronic signatures, pre-populated fields, interactive fields, conditional content, hidden fields, notary certificates, and recording endorsements. The group continues to meet weekly in an effort to complete the I-Guide draft. SMART Doc® is an electronic document created to conform to a specification standardized by MISMO. A SMART document locks together data and presentation in such a way that it can be system-validated to guarantee the integrity of the document. SMART is an acronym for Securable, Manageable, Archivable, Retrievable, Transferable. Development Workgroup (DWG) Structured Finance Private Label Security (PLS) participants in mortgage securities would like to utilize mortgage industry standards for disclosures about the securities. Collaboration between PLS participants and MISMO is necessary to reconcile the expressed needs of investors with the data points that have been standardized in the MISMO Reference Model. This collaboration will occur within the structure of the new MISMO Structured Finance Development Workgroup. PLS participants include Issuers, Lenders, Investors, Servicers, Underwriters, Rating Agencies, Trustees, Law Firms, Due Diligence Firms, and Accounting Firms.

11. Established in September, 2013, the Structured Finance DWG will compare the list of data points requested by PLS participants with existing MISMO standards and identify any potential gaps. They will review potential gaps to determine whether or not additional data points are required to be added to the MISMO Reference Model. Finally, the Structured Finance DWG will also review existing MISMO standards to determine if PLS participants would like to add any additional data to their standard disclosures. Residential loan level and pool level disclosures are in scope for this effort. Disclosures will cover the initial security issuance as well as necessary periodic disclosures through the life of the security.  

12. Development Workgroup (DWG) CFPB Evidence of Compliance The MISMO Development Workgroup CFPB – Evidence of Compliance is conducting a detailed examination of the CFPB National Servicing Rule to identify and develop the necessary corresponding data structures needed to provide prima facie support for “Evidence of Compliance” with the rules. Necessary data structures will support the statutory language, provide for integration with the CFPB Complaint Portal, standardization of document names and the development of document groups to support the creation of CFPB Servicing File for audit and servicing  transfers and to document definitions identified that do not already exist within the MISMO Reference Model and which will be recommended for inclusion. In addition the team will develop an Implementation Guide to provide guidance as to how each data element corresponds to specific supporting statutory language. The final element of this project is to begin the development of the model of how MISMO will engage and work with regulatory entities, in a forward looking manner, so as to assist in the development of industry data standards necessary for consistent reporting and/or data interchange.

13. MISMO Workgroups-What are They Doing? Development Workgroup (DWG) Unique Loan ID The purpose of this Development Workgroup is to explore the development of a Unique Loan Identification Number by establishing a single identifier for the loan deal. A single, Unique Loan Identification Number (ULIN) does not exist. Multiple identifiers, which are not standardized for format or length, exist for a loan over its life. Many parties in the industry, including lenders, investors, title companies, and mortgage insurance companies, define individual methods of identifying loans. The workgroup is exploring the use of loan information (such as lien priority and loan type) gathered at origination and is exploring the development of a standard syntax and format of loan numbers. The group is reviewing other non-mortgage banking industry efforts as well. In addition, the group continues to define the characteristics of the loan identifier, discuss the development of a standard syntax and format of loan numbers and the potential use of DOIs. This workgroup published their findings in the “Unique Loan Identifier White Paper” which can be found at www.mismo.org.

14. MISMO Workgroups-What are They Doing? Development Workgroup (DWG) Property Identification There is no universal standard for identifying a property, resulting in greater risk for mistakes and fraud. This DWG brings together industry representatives to talk about current challenges, and possible enhancements for improving data standards in the realm of property location definition, verification and best practices. This workgroup recently published their findings in the “Unique Property Identification Observations Outcome Paper” which can be found at www.mismo.org. Development Workgroup (DWG) Universal Document Identification The purpose of this Development Workgroup is to explore the development of a Universal Document Identifier that would enable any entity across the lending process to create or recreate the Identifier based on data included in the specified document. There is currently no known universal standard for identifying a particular loan document that goes with a specific loan. Lenders have their own individual methods of identifying loans, which lends to a potential duplication in the identification of a single loan across lenders. This issue, coupled with the issue that multiple documents and version of documents can exist per loan, makes it difficult to request copies of documents and to validate that the copy produced is the most current version.

15. MISMO Workgroups-What are They Doing? • The workgroup is currently developing a standard syntax and format for identifying documents. The group is also assessing the applicability of this document identifier outside of the mortgage industry or if the document identifier is specific to mortgage documentation. This workgroup recently published their findings in the “Universal Document Identifier White Paper” which can be found at www.mismo.org.

16. MISMO Commercial Industry Workgroup Descriptions

17. MISMO Workgroups-What are They Doing? • After a long period of dormancy, the commercial side of MISMO (also referred to as “CMISMO”) has been resurrected in the form of a workgroup. The commercial workgroup currently meets on the 3rd Tuesday of every month at 4pm, Eastern. • The group is currently working on finalizing an industry standard for Rent Rolls and Operating Statements. If you are interested in learning more about this workgroup, please sign up for the MISMO Commercial (Primary) Workgroup listserv from the link at the MISMO homepage at www.mismo.org.