MISMO Software Compliance
Certification Program
Brown Bag
Jan Davis
Mary Ann Francis
January 14, 2014
The MISMO Winter 2014 Summit Education Program is sponsored by:
Program Status and History
The Pilot Certification Program is underway!!!
• Feasibility Analysis and Business Case completed in May 2013 (Phase 1)
• Program design work began at the end of June 2013 (Phase 2a)
• Program development was approved August 15 (Phase 2B)
• Feedback was collected throughout the process from multiple audiences
including vendors, lenders, MISMO GC members, Board members, GSEs,
and others. Feedback was consistent and supportive.
• The team designed and developed a two level program for certifying
companies and their software and tools for use of the MISMO standards
within a specific business domain.
• Pilot Program (Phase 3) began in late November 2013
• Transition to a broader roll-out is targeted for Spring 2014
Jan Davis & Mary Ann Francis: MISMO Software Compliance Certification Brown Bag
Winter 2014 Educational Summit & Workshops
2
Program Design Overview
MISMO will offer two levels of certification
The objective of the
assessment is to evaluate how
the MISMO standard for a
specified software product
has been applied within a
particular business domain.
Premiere
Authorized Assessor
Certification
of Company
Processes as well as of
Specific Software and Tools
and Evidence of MISMO Training
Standard
Certification of Company Processes as well as
of Specific Software and Tools through Self
Assessment and References
Jan Davis and Mary Ann Francis: MISMO Software Compliance Certification Program Brown Bag
Winter 2014 Educational Summit & Workshops
3
Comparison of Level Requirements
Component
Level 1
Standard
Level 2
Premiere
Certification of company policies and practices


Certification of appropriate use of MISMO


Certification of software and tool capabilities using test cases


Self assessment required with MISMO staff approval

References or alternative validations from two separate entities

3rd Party review and sign off with recommendation for
certification

Requirement for MISMO education and training

Annual Renewal

Jan Davis & Mary Ann Francis: MISMO Software Compliance Certification Brown Bag
Winter 2014 Educational Summit & Workshops

4
Program Design Concepts
•
•
•
Certification always includes a review of the company’s MISMOrelated practices. Additional components of the certification
process include reviews of product or component use of MISMO
against appropriate portions of the Reference Model within the
identified domain.
In general both Standard and Premiere Levels require certification
of the following:
– Certification of company policies and practices as related to
MISMO.
– Certification of appropriate use of the MISMO schema and
logical data dictionary for specified business domains.
– Certification of software or tool and proof of capability to
store and/or create MISMO oriented data transmissions,
interfaces, or reports.
Premiere Level also requires certification of MISMO-related
education policies and practices
Jan Davis & Mary Ann Francis: MISMO Software Compliance Certification Brown Bag
Winter 2014 Educational Summit & Workshops
5
Premiere Level Review - Example
•
What might an example premiere level review include?
– Apply for certification
– Identify and contract an Authorized Assessor for the review
– Review and decide upon applicable certification business domain
– Pre-review meeting with Authorized Assessor
• Agree on test case scenarios
• Confirm list of artifacts needed for review
– Authorized Assessor to complete on-site certification review
• Interview key personnel
• Review artifacts
• Complete testing of agreed upon test cases
– Remediation, if required for certification
– Certification report recommendation provided to MISMO Mgr
– Notification of Certification
Jan Davis & Mary Ann Francis: MISMO Software Compliance Certification Brown Bag
Winter 2014 Educational Summit & Workshops
6
Compliance Program Value Proposition
Use of MISMO standards reduces processing costs, increases transparency, and
boosts investor confidence in mortgages as an asset class. Participation in a
MISMO software certification program will facilitate market and regulatory
differentiation and enhance the value of the standard.
Recognized compliance offers
–
–
–
–
Public recognition
Brand differentiation
Preferred vendor status
Attraction as an integration
partner
– Improved internal operational
processes
• Known status against MISMO
objectives
• Enhanced release planning
for MISMO utilization
• Technical documentation of
MISMO testing
Benefits of participation include
– Ability to license “MISMO
compliant” service mark
– Vendor listing on MISMO.org
– Vendor listing in MBA Buyer’s
Guide (MBA members)
– Other MBA/MISMO
recognition
– Streamlined regulatory
compliance
– Streamlined Agency
interaction (GSEs, GNMA,
CFPB, etc.)
Jan Davis & Mary Ann Francis: MISMO Software Compliance Certification Program Brown Bag
Winter 2014 Educational Summit & Workshops
7
Benefits accrue as certification level rises
Standard
Level
•
•
•
•
Use of MISMO Standard Level
Certification mark for specific Domains
Allows for gradual progress toward
Level 2 certification
Provides immediate visibility and
market recognition for MISMO
participation, engagement, and use
Enhances ability to stay in step with
MISMO changes
Premiere
Level
•
•
•
•
•
•
•
Use of MISMO Premiere Level
Certification mark for specific Domains
which represents the highest level of
Certification.
Provides immediate visibility and
market recognition for advanced
assessment and participation
Enhances ability to stay in step with
MISMO changes
Expert Independent assessment of
compliance and testing of internal
procedures
Technical as well as policy
assessment
Associated knowledge transfer from
Assessor
Best practices sharing from Assessor
Jan Davis & Mary Ann Francis: MISMO Software Compliance Certification Program Brown Bag
Winter 2014 Educational Summit & Workshops
8
Service Marks have significant content
MISMO Version
Levels
Domain
Potential Future Level
Jan Davis and Mary Ann Francis: MISMO Software Compliance Certification Program Brown Bag
Winter 2014 Educational Summit & Workshops
9
Business Domain Certification Options
Business Domains will be granular. Compliance will be certified and
certification marks awarded at the domain level.
MISMO
Residential
Mortgage
Business
Process
Domains
and Service
Marks
Appraisal
Appraisal
Origination
Closing
AUS
Notional
Domains
Real Estate
Services
Secondary
Servicing
Credit
Loan
Delivery
Performing
Loans
All others Product and
included
Pricing
Application
Applicant will provide test cases to demonstrate
compliance within a domain. MISMO will provide
example test cases for each domain.
Loss
Mitigation
Default
Servicing
Transfers
Jan Davis & Mary Ann Francis: MISMO Software Compliance Certification Program Brown Bag
Winter 2014 Educational Summit & Workshops
10
Many Domains will be available
Applicants will apply for certification of a software module, component,
or tool to a specific business domain.
Mortgage Business
Process
Appraisal
Business Domain/
Certification Mark
Appraisal
Example test cases (just examples, could be more)
Origination
Application
Underwriting
Loan Estimate
Closing
Underwriting
V3.x 1003 import/export
Mortgage Application v2.3 with V3.x changes
Product and Pricing import/export
CFPB Closing Disclosure Form
AUS interface with LOS vendor
AUS v2.4 with 3.x changes
For any RE Service, MISMO 3.x formatted import/export
Credit Reporting v2.4.1.1 with 3.x changes
Flood v2.4 with 3.0 changes
MI Application v2.4, MI Policy Cancel v2.4 with 3.x
changes
Produce 3.x Property Report
Property Reporting v2.3.2 with 3.x changes
Title Service 3.x import/export
Title v2.3.2 with 3.x changes
MISMO Delivery “ULDD”; Emortgage to doc custodian
Product and Pricing v2.3.2 with 3.x changes
Pipeline Report
Real Estate Services
Credit Reporting
Flood Insurance
Mortgage Insurance
Property Reporting
Title
Secondary
Loan Delivery
Product / Pricing
Pipeline Management and Hedging
Appraisal Report Import or Export
MISMO 2.6 “UAD” Appraisal Export with 3.x changes
Jan Davis & Mary Ann Francis: MISMO Software Compliance Certification Brown Bag
Winter 2014 Educational Summit & Workshops
11
Many Domains will be available
Applicants will apply for certification of a software module, component,
or tool to a specific business domain.
Mortgage Business
Process
Secondary
Servicing and Investor
Reporting
Securitization
Document
SMARTDoc®
Business Domain/
Certification Mark
Loan Delivery
Product / Pricing
Example test cases
Pipeline Management and Hedging
MISMO Delivery “ULDD”; one other
Product and Pricing v2.3.2 with 3.x changes
Data for pricing and commitment
Pipeline Report
Monthly P&I
Default
Loss Mitigation
Foreclosure
Servicing Transfers
Asset Management (REO)
Pooling
Disclosure
Document
SMARTDoc®
Agency Reporting; data corrections; payment data
Default Reporting
Loan modification data import/export
Foreclosure Payment Processing; nonperforming loan rptg
Loan Bundling and Transfer; transfer to subservicer
REO sale data transfer
Pool Delivery Process (MBS to Investor)
Loan Level Disclosure for MBS
Document headers; specific documents
Electronic packaging
Jan Davis & Mary Ann Francis: MISMO Software Compliance Certification Brown Bag
Winter 2014 Educational Summit & Workshops
12
Domain compliance means:
•
•
•
•
•
The software or tool uses the features, approaches and data
available in v.3.x. Use of v3.x is expected. Use of alternate
versions must be explained (e.g., use of 2.x is supported but must
be explained).
Published MISMO Implementation Guides (I-Guides) will serve as
the benchmark for “conformity” where available and applicable.
It is expected that compliance evidence and test cases demonstrate
v3.x changes and extensions (if extensions have been made)
For domains and business/test cases where extensions from 2.x
exist, use of 3.x changes and extensions is expected
Use of both the MISMO XML Schema and Logical Data Dictionary
standards and definitions are expected
Jan Davis & Mary Ann Francis: MISMO Software Compliance Certification Brown Bag
Winter 2014 Educational Summit & Workshops
13
Program Pricing
Level 1 Application
Approval
Total
Renewal
Subscriber
$
$
$
$
5,000
1,000
6,000
5,000
NonSubscriber
$
7,500
$
2,250
$
9,750
$
7,500
Goals of Pricing Approach
- Encourage Level 2 Participation
- Encourage MISMO Subscriptions
- Encourage 3rd Party Participation
- Simplify accounting and fee
structures
Features:
Level 2 Application
Approval
Total
Renewal
$
$
$
$
5,000
1,000
6,000
5,000
$
$
$
$
7,500
2,250
9,750
10,000
$
$
$
$
5,000
1,000
6,000
5,000
$
$
$
$
7,500
1,500
9,000
7,500
- Nonmembers 1.5x member fees
- L1, L2, Assessor fees are the same
- Fees designed to cover program costs
and raise revenue to enhance MISMO
standards programs at reasonable cost
to individual participants
- MISMO fees for L2 assessment do not
include cost of independent 3rd party
assessor. Such costs would be
negotiated between the vendor and
3rd party.
3rd Pty Application
Approval
Total
Renewal
• A volume discount will be available for certification marks within the same product
line. Application fees for the third and subsequent marks within the same product
line will be discounted by 50%.
• Program prices subject to change as work continues to vet pricing with potential
participants.
Jan Davis & Mary Ann Francis: MISMO Software Compliance Certification Brown Bag
Winter 2014 Educational Summit & Workshops
14
Pilot Considerations
Some Pilot participants have been identified but there is room for more!
Pilot Objectives
Pilot Selection Criteria
Incentives
• In concert with MISMO
partners, test, evaluate,
adjust program
processes and content
• Test, evaluate, adjust
program materials
• Establish credibility
through process
refinement and quality
service
• Create positive
program buzz and case
studies through
successful
implementation
• MISMO subscriber/
leadership
• Existing integration
partners, both GSEs,
Ginnie Mae, and
vendors
• Mortgage Industry
recognition for quality
or innovation
• Have staff and
management available
in the Pilot timeframe
• Can demonstrate
commitment to
complete pilot effort in
timeframe
• Early view of program
• Ability to influence
program
• First listings and
recognition in
promotions
• MISMO-led guidance in
processes
• Conference panel slot
to discuss
• First to gain all program
benefits
Jan Davis & Mary Ann Francis: MISMO Software Compliance Certification Brown Bag
Winter 2014 Educational Summit & Workshops
15
Pilot Program Participants
MISMO solicited participants in the Pilot Program through
announcements in Industry Publications
Authorized Assessor
Applicants
• Actualize Consulting
has been approved to be
an Authorized Assessor
and is available to
discuss the program
• CAPCO is working on
their application for
authorization to be an
assessor as part of the
Pilot
Premiere Level Applicants
Three companies plan to
apply for Premiere level
certification in the Pilot
Program run so far
Standard Level Applicants
MISMO is looking for
Pilot candidates for
Standard Level
certification. Please
contact Jan Davis or
Mary Ann Francis for
more information.
Jan Davis & Mary Ann Francis: MISMO Software Compliance Certification Brown Bag
Winter 2014 Educational Summit & Workshops
16
How to Participate
•
•
•
•
•
Remember—Certification is HELPFUL to your organization’s
MISMO, Data, and Marketing strategies
Materials for all program levels are available including
– Program Overview
– Standard and Premiere Level Process Guidance
– Draft Contractual Agreements (Standard contact still being
finalized but very similar to Premiere Agreement)
– Pricing Sheet
Complete a preliminary application and conduct an initial call with
the MISMO operations team to discuss your application, the
domain(s), and the process to become certified.
Provide the legal agreements to your legal team for preliminary
review as soon as possible. This will ensure that your application
can be processed quickly once you decide to apply for certification
and conduct the technical assessment process.
Look for more announcements soon, especially at the MBA Tech
Conference in March. A special presentation will be conducted on
Friday March 21 at MBA Tech.
Jan Davis & Mary Ann Francis: MISMO Software Compliance Certification Brown Bag
Winter 2014 Educational Summit & Workshops
17
THANK YOU!
• For more information or to provide additional thoughts or
ideas contact the project team
• A new website will soon be available providing downloadable
Program materials. Announcements will be made through
the All MISMO listserv and NewsLink.
Contacts:
Jan Davis
Jdavis@mba.org
Mary Ann Francis
mafrancis@cox.net
Jan Davis & Mary Ann Francis: MISMO Software Compliance Certification Brown Bag
Winter 2014 Educational Summit & Workshops
18
Thank You to our 2014 Winter Summit Primary Event Sponsor
Jan Davis & Mary Ann Francis: MISMO Software Compliance Certification Brown Bag
Winter 2014 Educational Summit & Workshops
19