MISMO Overview
September 2008
Ron Duff
Harry Gardner
Gloria Zimmer
R.J. Schlecht
Chair, Governance Committee
President, MISMO
Director, MISMO Standards
Director, Security & Compliance
MISMO Trimester Meeting
September 15 - 18, 2008 Scottsdale, AZ
Agenda
• History of mortgage data standards
• Purpose of MISMO
• Areas of Focus (Residential)
– Origination
– Real Estate Services
– Secondary
– Servicing
– Architecture
– Core Data Structures
MISMO Trimester Meeting
September 15 - 18, 2008 Scottsdale, AZ
Agenda (continued)
• Areas of Focus (continued)
–
–
–
–
MXCompliance
eMortgages
Information Security & SISAC
Commercial Mortgage Standards
• Related Industry Standards Efforts
– MERS® eRegistry
– PRIA (eRecording and eNotarization)
– SPeRS (eSignatures and Records)
• MISMO approach to standards
• Q/A?
MISMO Trimester Meeting
September 15 - 18, 2008 Scottsdale, AZ
Introduction of attendees
•
•
•
•
Name
Company
Role
Mortgage process areas of interest and/or
Why you are here
MISMO Trimester Meeting
September 15 - 18, 2008 Scottsdale, AZ
Business Drivers
• Quick & Easy access to understandable
information needed for decisions & automation
• Flexibility & options balanced with ease of use &
intuitive applications
• New products & business tools with minimal
expense
• Balancing reality with “the possible”
– Major investments in current approach
– Enhancements & upgrades build on current structure
• Consistency across business to avoid confusion,
mistakes, and to simplify training
MISMO Trimester Meeting
September 15 - 18, 2008 Scottsdale, AZ
Standards Add Business Value
• Integration of technology systems requires
standards
• Streamlined workflow needs interconnecting
processes
• Efficiency & data integrity enhanced by data
reuse and reduced re-keying
• Flexibility dictates integrated offerings or
interoperable solutions from various service
providers
• Availability of software tools for development:
low-cost or free
MISMO Trimester Meeting
September 15 - 18, 2008 Scottsdale, AZ
History of Mortgage Electronic
Exchange
• ECHO Users Group defines “MBA 86 tag format”
• Desire for flexible & integrated solutions leads to
formation of MBA Mortgage Technology Workgroups
beginning in 1988
• MBA forms Technology Committee in 1990
• Search for data standards leads to ASC X12 &
Electronic Data Interchange (EDI) in 1990s
• MISMO formed in 1999 to support emerging
XML standard, first meeting in January 2000
• MBA did major Tech Committee overhaul 2001 –
created Tech Steering Cmte, ResTech, CommTech
MISMO Trimester Meeting
September 15 - 18, 2008 Scottsdale, AZ
Industry Use of X12 Electronic
Data Interchange
• Twenty-three X12 EDI transactions built or
modified to support Real Estate Finance
• Numerous credit requests / reports, Mortgage
Insurance requests / reports, Hazard Insurance
Bills, Investor Reporting, MI Claims, and HUD
Status Reports transmitted daily
• Secondary Market receives millions of Investor
Reporting transactions within 4 days each
month, receives default reports, orders and
receives MI approvals
MISMO Trimester Meeting
September 15 - 18, 2008 Scottsdale, AZ
Types of Data Standards
• X12 “syntax & words” come from:
– ANSI Accredited Standards Committee
developing cross-industry solutions built on
one dictionary
• XML “syntax” comes from World Wide
Web Consortium (W3C)
– “Words” are industry specific, so MBA formed
MISMO
MISMO Trimester Meeting
September 15 - 18, 2008 Scottsdale, AZ
Horizontal vs. Vertical Standards
• Horizontal: Spans industries
– XML, HTML
– TCP/IP
– SPeRS (Standards and Procedures for Electronic
................Records and Signatures)
• Vertical: Industry-specific
– MISMO (Mortgage)
– ACORD (Insurance)
– PRIA (County Recorders)
MISMO Trimester Meeting
September 15 - 18, 2008 Scottsdale, AZ
XML: Extensible Markup
Language
• Tags uniquely identify each field as data
– Offers more sophisticated web pages, information
searches and data exchanges
• Defines ground rules for tagging data
– Allows groups or industries to create their own
documents
– Easily expanded/extended
• Example:
– <BorrowerFirstName>David</BorrowerFirstName>
MISMO Trimester Meeting
September 15 - 18, 2008 Scottsdale, AZ
Introducing MISMO
• Develops, promotes and maintains ecommerce standards for the real estate
finance industry
• Enables mortgage-related information to
be exchanged between borrowers,
lenders, service providers, investors, and
servicers more efficiently and
economically
MISMO Trimester Meeting
September 15 - 18, 2008 Scottsdale, AZ
MISMO Priorities
• Build business data dictionaries to ensure
understanding when exchanging data
• Develop industry-wide XML Document
Standards in DTD (Document Type Definition)
and XML Schema format
• Promote related technology standards
necessary to enable eCommerce
(digital signatures/credentials, eMortgages,
security best practices, etc)
MISMO Trimester Meeting
September 15 - 18, 2008 Scottsdale, AZ
MISMO Deliverables
• Industry Business Data Dictionary (LDD)
• Industry standard DTDs/XML Schemas
specifications
• Engineering guidelines for creating DTDs,
XML Schema
• Implementation guides to use MISMO
standard transactions
– (by individual business/process area)
• MXCompliance
MISMO Trimester Meeting
September 15 - 18, 2008 Scottsdale, AZ
MISMO Subscribers
• 126 Subscriber Companies (as of Sept 08)
– Have access to current and archived
information on MISMO website
– Have username and password access to
private workgroup areas of SharePoint site
– Can vote on key issues & leadership
– Assessed lower meeting fees for the trimester
meetings
– May be elected to a seat on the Governance
Committee
MISMO Trimester Meeting
September 15 - 18, 2008 Scottsdale, AZ
MISMO Organization
MBA BoDTech
Committee
Board of Directors
Residential
MISMO Officers
and Staff
Governance
Committee
Architecture
Workgroup
Commercial
Governance
Committee
Chair
Co-Chair
Vice Chair
Co-Chair
Architecture
Workgroup
Core Data/
Structures
Workgroup
Core Data
Workgroup
Industry
Workgroups
Industry
Workgroups
MISMO Trimester Meeting
September 15 - 18, 2008 Scottsdale, AZ
MISMO Organization
Board of Directors
Commercial
Architecture
LDD
Governance
Core Data
Appraisal
eMortgage
Architecture
Environmental &
PCA Reports
Interface Architecture
(Enveloping)
Information Security
Document
Classification
Origination
Council of Chairs
SISAC
Property
Inspections
Logical
Data
Dictionary
Servicing
Core Data/Structures
CMSA IRP
CMSA
Residential Process Area Workgroups
Origination
Underwriting
Real Estate Services
Credit
Flood
Mortgage App
Closing
Real Estate
Property
Valuation
Appraisal
Institute
Hazard
Fraud Detection
Title
ALTA
Secondary
eMortgage
Government
Servicing
Technical Infrastructure
Government Housing
Document
Classification
Industry Guidance
Tax
MI
Multi-Services
Business Rules
Exchange
Doc / Data Mapping
Data Transactions
Legal
MISMO Trimester MeetingSPeRS
September 15 - 18, 2008 Scottsdale, AZ
PRIA
MISMO Board of Directors
• MISMO is a wholly-owned subsidiary of
Mortgage Bankers Association – became a
501(c)6 corporation in 2005.
• Board of Directors members:
– Steve Gozdan, CFO/COO Cenlar FSB (Chairman)
– Catherine Rodewald, Managing Director, Prudential
Capital
– Bill Frazer, SVP, CBRE | Melody
– Tom Richardson, SVP (Arch. & Tech.), Bank of America
– Dawn Gibbs, President & CEO, FICS
– Jim Cooke (ex-officio, MISMO Governance Representative)
MISMO Trimester Meeting
September 15 - 18, 2008 Scottsdale, AZ
MISMO Governance Committee

Credit Reporting – Paul Wills, Equifax
Mortgage Services

GSE – Ted Adams, Freddie Mac;
David Coleman, Fannie Mae


Lender –; Dave Erkes, GMAC
Rescap; Pat Hartford, Quicken Loans;
Michael Levine, Wells Fargo; (vacant)
Mortgage Insurance – Nancee
Gorenstein, MGIC

Origination Technology – Todd
Luhtanen, Dynatek; Chris Anderson,
Wipro Gallagher Solutions, Inc.

At-Large Positions – Gabe Minton,
Mortgage Cadence; Dan McLaughlin
MERS

Service Providers – Tom Payne, First
American Financial; Kelly Romeo, American
Land Title Association

Servicing Technology – Ron Duff, FISERV;
Randy Gillis, Lender Processing Srvcs, Inc.

Technology Vendor – Abdias Lira, Wolters
Kluwer Financial Services; Gretchen
Peterson, Dexma

Commercial – Joanne Denver, Babson
Capital Management; Bob Wright, Midland
Loan Services; Wendy Sadeh, Bridger
Commercial Funding; Jim Cooke, Ballard
Spahr Andrews & Ingersoll, LLP

MBA Staff Representatives (non-voting)
Harry Gardner, Dan Szparaga, RJ Schlecht,
Dave Krause, Gloria Zimmer, Malikah Crable
and Colleen Flaxington
MISMO Trimester Meeting
September 15 - 18, 2008 Scottsdale, AZ
MISMO Release Process
Final release
30-day Posting for IPR Disclosures
(MISMO)
Architecture WG review/approval
(Architecture)
Reconcile data elements against LDD
(Core Data)
Develop new / updated data transactions
(Workgroups)
MISMO Trimester Meeting
September 15 - 18, 2008 Scottsdale, AZ
MISMO Workgroups focus on
Business Process Areas
• Process-focused industry participants defining
business data needs for specific business areas:
–
–
–
–
–
Origination
Real Estate Services
Secondary
- Business Rules Exchange (May 2006)
Servicing
- Government Housing (January 2007)
Technical Infrastructure
• Workgroups provide technical and business
expertise to the Governance Committee
• XML Architecture WG defines technical
structure, core data, and process groupings
MISMO Trimester Meeting
September 15 - 18, 2008 Scottsdale, AZ
Origination
• Scope:
– Includes Mortgage Application, Underwriting,
and Closing data
• Evolution:
– Automated Underwriting (AUS) was the first
data set to be completed
– Mortgage Application took Automated
Underwriting and extended it to add elements
– Fannie Mae and Freddie Mac agreed on the
core AUS dataset in 2001
MISMO Trimester Meeting
September 15 - 18, 2008 Scottsdale, AZ
Real Estate Services
• Process Area includes these Service Areas that
meet separately as needed:
–
–
–
–
–
–
–
–
Credit Reporting
Flood Insurance
Fraud Detection
Mortgage Insurance
Real Estate Property Information / Valuation
Real Estate Tax
Title Insurance
Multi Services
• Manages service request and response process
including ordering multiple services
MISMO Trimester Meeting
September 15 - 18, 2008 Scottsdale, AZ
Secondary
• Secondary Loan Delivery
• Product and Pricing description for POS
and secondary sale
• Bulk Loan Sales
• Common Transaction for Version 3.x
– Loan Delivery/Servicing Transfer
• Loan Reconciliation – RESPA Fees, Escrow,
Loan Structures, Buydown Schedule, etc.
MISMO Trimester Meeting
September 15 - 18, 2008 Scottsdale, AZ
Servicing
•
•
•
•
•
Servicing transfer
Investor Servicing Transfer
Investor Reporting
Loan setup/boarding
Default reporting (pending)
MISMO Trimester Meeting
September 15 - 18, 2008 Scottsdale, AZ
Business Rules Exchange
• Identify Business Rules Exchange formats
• W3C (RIF) , RuleML, XBRL, OMG (PRR), etc.
• Identify major Use Cases for Business
Rules exchange (in Real Estate Finance industry)
• Determine which external Business Rules
Exchange standards fit use cases
• Proof of Concept – exchange rate sheets
(using Rule Interchange Format (RIF) a W3C draft spec)
MISMO Trimester Meeting
September 15 - 18, 2008 Scottsdale, AZ
Government Housing
• Includes four major Government agencies
• Ginnie Mae , FHA, USDA Rural Development, and VA
• Collectively create standards in XML format to
support business processes unique to
government lending
• Coordinate development with existing MISMO
transaction standards and data dictionary
• Ensure portability of data between the private
sector and government housing entities
MISMO Trimester Meeting
September 15 - 18, 2008 Scottsdale, AZ
MISMO Architecture
MISMO Trimester Meeting
September 15 - 18, 2008 Scottsdale, AZ
Architecture
• Provides oversight of technical and design
infrastructure to ensure reusability and
offer guidelines across process areas
• Three distinct versions so far:
– Version 1.x: XML DTD
– Version 2.x: XML DTD and Schema
– Version 3:0 XML Schema (in process)
MISMO Trimester Meeting
September 15 - 18, 2008 Scottsdale, AZ
Architecture Evolution
• MISMO Version 1.x:
– Loan-centric file approach with shared data
nodes and the ability to ‘plug’ in new process
area data needs
– Benefited organizations participating in
multiple aspects of the loan life cycle
– Was tough to design for all scenarios and
perspectives; Biased towards the participants
– Great ‘logical’/normalized view, slow adoption
MISMO Trimester Meeting
September 15 - 18, 2008 Scottsdale, AZ
Architecture Evolution (con’t)
• MISMO Version 2.x:
– Transaction and process area focused
(Request/Response for Credit, MI, AUS, etc)
– No longer all-encompassing loan file, now building
specific transactions using reusable structures
– Structures are groupings of data that are shared and
reused by processes (borrower details, asset
information, property description…)
– Elements can be used as-is or extended with
additional attributes using extension guidelines
MISMO Trimester Meeting
September 15 - 18, 2008 Scottsdale, AZ
Architecture Evolution (con’t)
• MISMO Version 3.0:
– Fully-fledged W3C XML schema
• (Namespaces, datatypes, constraints, etc.)
– Single data repository/reference model
– Resolve difference between process areas
• (borrower, property description…)
– Consistent message structure
• (Loan, Collateral, Party, etc. with DEAL at root)
MISMO Trimester Meeting
September 15 - 18, 2008 Scottsdale, AZ
Core Data
• Provide a single, industry-wide data
dictionary, definition, and some modeling
support across process areas
• 1 or 2 representatives from each process
area participate and submit data points
from their workgroup or review those
submitted by others
• Resolves all issues with data or definition
between Workgroups
MISMO Trimester Meeting
September 15 - 18, 2008 Scottsdale, AZ
Core Structures
• Responsible for engineering design guidelines,
overall structural integrity of the data standards
• Questions like:
– DTD vs. Schema
– Elements vs. Attributes
– Namespace usage
– Field-level encryption
• Merged with Core Data in May, 2007
MISMO Trimester Meeting
September 15 - 18, 2008 Scottsdale, AZ
Commercial MISMO
• Establishes data standards for all phases of the
commercial mortgage life cycle, within the
framework of the existing MISMO organization
• Parallel workgroups:
–
–
–
–
–
Architecture
Core Data
eMortgage
Origination
Servicing
- Business Metrics
- Property Inspections
- Property Appraisals
- Document Classification
- Environmental & PCA Reports
• CMSA-IRP
MISMO Trimester Meeting
September 15 - 18, 2008 Scottsdale, AZ
Break !
After the break:
MXCompliance
eMortgage
Security & SISAC
Activities for this Trimester
MISMO Trimester Meeting
September 15 - 18, 2008 Scottsdale, AZ
MXCompliance - Why
• As more organizations choose to adopt and
implement MISMO’s voluntary data standards
and schema (“MISMO Standards”), a common
understanding of what it means for a product to
comply with a MISMO standard is critical to
achieving maximum use of MISMO standards
across trading partners.
• Needed a way to identify successful
implementations and police against those falsely
claiming MISMO-compliance
MISMO Trimester Meeting
September 15 - 18, 2008 Scottsdale, AZ
MXCompliance - Process
• Verification
– Third party verification of certified product
• Import
– Applicants seeking certification for products
that read (import) MISMO standards
• Export
– Applicants seeking certification for products
that write (export) MISMO standard
MISMO Trimester Meeting
September 15 - 18, 2008 Scottsdale, AZ
MXCompliance - Certifications
• Currently Available
– Credit Request and Response
– MI Application Request and Response
– AUS
– Flood Request and Response
– Title Request and Response
• Coming Soon
– Closing
MISMO Trimester Meeting
September 15 - 18, 2008 Scottsdale, AZ
eMortgage Overview
MISMO Trimester Meeting
September 15 - 18, 2008 Scottsdale, AZ
eCommerce in the Mortgage Industry
•
•
•
•
•
Online originations
Electronic service ordering and fulfillment
Document imaging, paperless delivery
Electronic signing solutions
eClosing / eRecording systems
• All leading toward true eMortgages…
MISMO Trimester Meeting
September 15 - 18, 2008 Scottsdale, AZ
What’s an eMortgage?
• Electronic mortgage documents
– Minimum: eNote
– Hybrid eMortgage: Some e-docs, some paper
• Paperless – not imaged
• Electronic signatures
• Data + document view – ability to recreate
exactly what the consumer digitally signed
• Can determine electronic originals from copies
• Heavily reliant upon standards
MISMO Trimester Meeting
September 15 - 18, 2008 Scottsdale, AZ
Pieces of the eMortgage Process
Data
Transactions
Speaking a common language
Messaging
Formats
Addressing, receiving, acknowledging
Packaging /
Bundling
Wrapping multiple docs, compression, encryption
eDocuments
Electronic forms: View + Data + Signatures, allowing
for standardized workflow (SMART Doc® forms)
eSignatures /
Security
Interoperable digital credentials, conforming to
common baseline requirements
eRecording /
eNotarization
Electronic recordation at county recorders’ offices,
support for Notary data in eDocuments
eNote Registry
Legal compliance infrastructure for negotiable
mortgage instruments (Promissory Notes)
MISMO Trimester Meeting
September 15 - 18, 2008 Scottsdale, AZ
SMART® Document Concept
Securable
Manageable
Archivable
Retrievable
Transferable
Header
Document type, other info
Audit Trail
View
May 1, 2003
Closing Date
What the buyer
sees and signs
Map
Data
<ClosingDate>20030501
</ClosingDate>
History of events
Signatures
Tamper-evident
seal
Maps View fields into Data
XML Data for lights-out
processing
Electronic or digital signatures
– buyer, seller, et al
MISMO Trimester Meeting
September 15 - 18, 2008 Scottsdale, AZ
Levels of “SMARTness”
Category:
VIEW
Type:
1
2
3
4
XHTML
XHTML
Image
Image
5
ARCs?
XML Data?
Why use?
XML
XML
eNotes;
other critical
docs
Scanned docs;
with or without
data
MISMO Trimester Meeting
September 15 - 18, 2008 Scottsdale, AZ
XML
Data xfer
in stdzd
wrapper
eMortgage Process Flow
Key:
Legal eDocs
(Land records,
tax liens, other
docs/affidavits
)
External
Docs
Online
Application
eOrigination
&
Underwriting
eRecording
eDoc
Prep
Credit
Flood
Hazard
Title
MI
eNotarization
Buyer
MISMO
Servicing
Secondary
Investor,
Aggregator
eClosing
eDocuments
eSignatures
Service
Ordering:
PRIA
eVault
eVault
Seller
eNote Data, Messaging & Control
MERS® eRegistry
(National eNote Registry)
MISMO Trimester Meeting
September 15 - 18, 2008 Scottsdale, AZ
eMessaging & ePackaging
Business Partner 1
Business Partner 2
eMessage
ePackage
eDocs
ePackage
Received
encryption
compression
Return Receipt
MISMO Trimester Meeting
September 15 - 18, 2008 Scottsdale, AZ
Closing Docs (MISMO Closing DTD 2.3.1)
Legal:
Promissory Note
Security Instrument
Assignments
ESIGN Disclosures and Consent
Federal Truth In Lending:
Truth In Lending Disclosure
Itemization of Amount Financed
Right to Cancel
RESPA:
Notice of Assignment, Sale, or Transfer of
Servicing Rights
RESPA Servicing Disclosure
Initial Escrow Account Statement
HUD-1
HOEPA / PMI:
PMI Disclosures – Fixed, ARM, Amortization
Schedule
ECOA:
Fair Lending Notice
Right to Copy of Appraisal
Broker / Lender / Investor Specific:
Closing Instructions
Payment Letter
Affidavit of Occupancy
Signature/Name Affidavit
E/O Compliance Agreement
Borrower’s Certification and Authorization
Hazard Insurance Authorization, Reqts and
Disclosure
Tax Information and Collection
Notice of Flood Hazard Area
Flood Insurance Notification / Authorization
Request for Copy of Tax Form (4506)
Request for Tax ID & Certification
MISMO Trimester Meeting
September 15 - 18, 2008 Scottsdale, AZ
eMortgage Progress
•
eMortgage Guidelines & Specifications (Jan 03)
– SMART Doc®, ePackaging, eMessaging, eVaulting
•
SMART Doc™ Implementation Guide (Jan 04)
•
MERS® eRegistry (National eNote Registry)
– Phase I production operation: April 2004
– Uses ePackaging, eMessaging and SISAC standards
•
eVault Implementation Guide 1.0 (Mar 05)
•
MBA Board of Directors resolution supporting eMortgages (Aug 05)
•
eMortgage Guide 1.0, eMortgage Vaulting Guide 2.0 (Oct 05)
•
eMortgage Guide 2.0, eMortgage Vaulting Guide 3.0, eMortgage Closing Guide
1.0, eMortgage Cost-Benefit Analysis white paper 1.0 (Mar 06)
•
eSigned PDF Guidelines (Mar 07)
•
Warehouse Lending / eNote White Paper (Feb 08)
•
eNote Legal White Paper (Sept 08)
MISMO Trimester Meeting
September 15 - 18, 2008 Scottsdale, AZ
eMortgage Current Efforts
• SMART Doc® Specification 3.0
• eMIT (eMortgage Interface Transactions)
• eRecording & eNotarization Business &
Technical Guidelines (with PRIA)
• Transition to MISMO Version 3.0 architecture
• eMortgage Adoption Task Force (under MBA
ResTech Committee)
MISMO Trimester Meeting
September 15 - 18, 2008 Scottsdale, AZ
MISMO eMortgage Workgroup 2008
Chair: Patrick Hartford, Quicken Loans
Vice Chair: Abdias Lira, Wolters Kluwer FS
Technical
Infrastructure
Patrick Hartford,
Quicken Loans
SMART Doc™
specification
ePackaging
eMessaging
eSigned PDF
Industry
Guidance
eMortgage Guide
eMortgage Closing
Guide
SMART Doc I-Guide
eMortgage Vaulting
Guide
eMortgage Vault
Regulatory
Reference Guide
eMortgage ROI
eMortgage Glossary
Document /
Data Mapping
Leo Bijnagte,
Wells Fargo
Data
Transactions
Rachael
Sokolowski,
Magnolia
Technologies
eNote
eSecurityInstrument
HUD-1
Title
Note Mod
URLA
eMortgage Closing
Interface
Transactions
(eMCIT)
MISMO Trimester Meeting
September 15 - 18, 2008 Scottsdale, AZ
Legal
Issues
Grace Powers,
Countrywide &
Chris Christensen,
PeirsonPatterson
ESIGN, UETA,
eSignature
(questions and
guidance)
Related Industry Standards
Efforts
MISMO Trimester Meeting
September 15 - 18, 2008 Scottsdale, AZ
SPeRS Initiative
• Standards & Procedures for electronic
Records and Signatures
• Legal guidance on eSignature
implementation: Consumer disclosures,
consent, records retention, and more
• Sponsored by Electronic Financial
Services Council (EFSC)
• www.spers.org
MISMO Trimester Meeting
September 15 - 18, 2008 Scottsdale, AZ
SPeRS in the Mortgage Industry
Authentication & Authority
Borrower, Seller, Closing
Agent, Lender
Consent
Borrower, Seller
Agreements, Notices &
Disclosures
Disclosure forms, process
notifications, Closing docs
Signature
Buyer & seller signatures
Tamper-evident doc seals
Record Retention
eVaulting / Doc Custodian
Industry
MISMO Trimester Meeting
September 15 - 18, 2008 Scottsdale, AZ
PRIA
• Property Records Industry Association
• Association of County Recorders and
service providers
• Strategic alliance partner with MISMO
• eRecording and eNotarization
MISMO Trimester Meeting
September 15 - 18, 2008 Scottsdale, AZ
MERS® eRegistry
• National registry that identifies who has control
of an electronic note
• Based on ESIGN & UETA legislation Safe
Harbor requirements
MISMO Trimester Meeting
September 15 - 18, 2008 Scottsdale, AZ
Definitions
Paper World
Electronic World
Negotiable Instrument
Original Note
Possession
Investor/Holder
Custodian
Endorsement
Holder in due course
Servicer
Transferable Record (“eNote”)
Authoritative Copy of eNote
Control
Controller
Location (eVault)
Transfer of Control
Transferable Record Audit trail
Controller’s Delegatee
MISMO Trimester Meeting
September 15 - 18, 2008 Scottsdale, AZ
The Challenge
• System must identify a single, unique,
authoritative copy
• Impossible to flag authoritative copy
identification in only one electronic copy
MISMO Trimester Meeting
September 15 - 18, 2008 Scottsdale, AZ
The Solution
• A central registry that identifies the Controller of the
eNote, and the location of the Authoritative Copy
• ResTech Committee & eNote Registry Task Force
developed high-level business requirements (20022003)
• MERS announced intent to build (March 2003)
• MERS eRegistry commenced Phase I production
operation in April 2004
• Ohio Savings Bank (now AmTrust) went live on flow
loans to Fannie Mae in Q4 2005
• Wells Fargo sells first eNote to Freddie Mac in
December 2005
MISMO Trimester Meeting
September 15 - 18, 2008 Scottsdale, AZ
eMortgage Process Flow
Key:
Legal eDocs
(Land records,
tax liens, other
docs/affidavits
)
External
Docs
Online
Application
eOrigination
&
Underwriting
eRecording
eDoc
Prep
Credit
Flood
Hazard
Title
MI
eNotarization
Buyer
MISMO
Servicing
Secondary
Investor,
Aggregator
eClosing
eDocuments
eSignatures
Service
Ordering:
PRIA
eVault
eVault
Seller
eNote Data, Messaging & Control
MERS® eRegistry
(National eNote Registry)
MISMO Trimester Meeting
September 15 - 18, 2008 Scottsdale, AZ
Information Security & SISAC
MISMO Trimester Meeting
September 15 - 18, 2008 Scottsdale, AZ
Information Security Workgroup
• Support MISMO’s mission of standardized
electronic records
– Assist MISMO workgroup’s security concerns
• Educational material
• Raise awareness of industry regulatory
requirements
• Provide “best practices” or “guidance” for
security topics
MISMO Trimester Meeting
September 15 - 18, 2008 Scottsdale, AZ
Security Components
Identification &
Authentication
You are who you say you are
Encryption
(data, messages, web)
Data cannot be intercepted
and read
Tamper-Evident
Seals
Data or eDocs cannot be
modified without detection
Non-Repudiation
Digital signatures: For legal
signatures or for tamperevident sealing
MISMO Trimester Meeting
September 15 - 18, 2008 Scottsdale, AZ
Security Activities
• Flag sensitive MISMO data elements
– New metadata tag; SensitiveInformationIndicator
• Provide security recommendations for
messaging protocol
– WS-Security SOAP Message Security
• Provide security recommendations for real
estate appraisal transactions
– Securing the Appraisal Process
• Monitor security breach legislation
• Education, e.g., Policy, Intrusion detection, etc.
MISMO Trimester Meeting
September 15 - 18, 2008 Scottsdale, AZ
Security Activities
• Industry Compliance;
– Payment Card Industry Data Security Standards
(PCI/DSS)
– BITS Shared Assessment
• Meet bi-weekly; Wednesday at 2PM ET
• http://www.mismo.org/SpecificationsAndGuidanc
e/InformationSecurityGuides.htm
MISMO Trimester Meeting
September 15 - 18, 2008 Scottsdale, AZ
Secure Identity Management
• Develop an “open” standard in the
authentication, digital signature/secure identity
marketplace, administered like MISMO
• Put mechanisms and documents in place to
allow for adoption of secure identity
• Establish a non-profit organization and turn it
over to the industry:
– Secure Identity Services Accreditation Corp (SISAC)
announced in March 2003
MISMO Trimester Meeting
September 15 - 18, 2008 Scottsdale, AZ
SISAC
• Secure Identity Services Accreditation
Corporation (announced in March 2003)
• Develops baseline standards for auditing and
accreditation of PKI certificate/credential issuers
• SISAC does not provide credentials (digital
certificates), but accredits industry players based
on “best practices” (Policy Administrator)
• Wholly-owned subsidiary of MBA
• www.sisac.org
MISMO Trimester Meeting
September 15 - 18, 2008 Scottsdale, AZ
National Notary Assoc (NNA)
•
Requirements
•
– Provide national background
screening service for title,
settlement services, lenders
Screenings
– Lexis/Nexis, Sungard/Signix
– County-level criminal records
check
– SSN name check
– OFAC
– Other screening criteria
– Matrix score results in
pass/fail
– Appeals process and
resolution
MISMO Trimester Meeting
September 15 - 18, 2008 Scottsdale, AZ
How They All Fit Together
How do we choose
our ESIGN and UETA
solutions? What should
we be thinking about?
How do we know
this is the real
eNote?
How do we create
and process eMortgage
files? How is the business
data defined?
How do we know which
digital sigs to trust?
How do we capture
eNotarization data,
and plug all this into
the County Recorder?
MISMO Trimester Meeting
September 15 - 18, 2008 Scottsdale, AZ
How We Develop Standards
• Workgroups of volunteer industry practitioners
develop each MISMO standard, based on business
need
• Reviewed by Core Data Structures & Architecture
• Released standards are openly available on
www.mismo.org
• DTDs/Schemas you implement are dictated by your
business purpose
• Becoming MXCompliant adds credibility to your
brand
MISMO Trimester Meeting
September 15 - 18, 2008 Scottsdale, AZ
MISMO’s Standards Development Process
Questions or Feedback
Questions or Feedback
~WG
Anyone
A
START
Propose Work
Product
Submitted
B
Review Work
Product Proposal
Questions or Feedback
~WG
Accepted
Declined
C
Submitted
Develop Work
Request
Submitted
Arch
CoC
D
Review Work
Request
E
Conditionally
Approved
Review Work
Request
Work Request
Tracking System*
Denied
STOP
Denied
Denied
Withdrawn
from
Publication
Approved
NO
Gov
F
Review AWG
Decision
Core Data
~WG
G
Approved
Completed
Develop Work
Product
H
YES
XML
Spec?
Review XML
Specifications
Arch
Conditionally
Approved
Questions or Feedback
I
Review MISMO
Work Products
Questions or Feedback
Questions or Feedback
Recommended
Gov
J
Approve MISMO
Work Products
Arch
Approved
Arch
K
Board &
Officers
Returned to IPR
Process
Requested Modification
NO
Concerns?
Post for IPR
Review
NO
N
Publish to
Industry
YES
YES
Officers
L
Review
Concerns
Claims?
M
Handle I P R
Claims
MISMO Trimester Meeting
Withdrawn from Publication
September 15 - 18, 2008 Scottsdale, AZ
Approved for
Publication
END
*As the Work Request
moves through each
process, the tracking
system is updated.
Where is MISMO Being Used
Today?
• Front-end service providers
– Application, Credit, MI, Title, Flood, AUS, etc.
• Servicers
– Servicing transfer and loan setup
• Originators
– AU and related services
• “e” companies (eClosing, eMortgage, …)
– Fiserv, Wolters Kluwer, Silanis, Encomia, Ingeo
MISMO Trimester Meeting
September 15 - 18, 2008 Scottsdale, AZ
MISMO’s Standards Approach
• Face to Face meetings 3 times a year: January,
May, and September
• Conference Calls and interim meetings
• Information exchange via:
–
–
–
–
–
MISMO.org website
SharePoint and Contivo tools, Excel macros
Listservs for each business process area
Adobe Connect – web-based sessions
MISMO Wiki – collaborative document development
MISMO Trimester Meeting
September 15 - 18, 2008 Scottsdale, AZ
Common Communication
Vehicles
• MISMO is an open organization
• Participate by joining MISMO Workgroup
listservs that support your business areas
(over 2500 listserv participants)
• Listservs allow you to join in discussion &
development of MISMO standards and
implementation guides – they are free!
• Solicitations prohibited
MISMO Trimester Meeting
September 15 - 18, 2008 Scottsdale, AZ
IPR & Antitrust Policies
• By participating in this or any MISMO
meeting you are agreeing to be bound by
MISMO’s IPR policy which can be found at
www.mismo.org
• All meetings are conducted in accordance
with MISMO’s Antitrust Policy
MISMO Trimester Meeting
September 15 - 18, 2008 Scottsdale, AZ
MISMO Web Site
MISMO Trimester Meeting
September 15 - 18, 2008 Scottsdale, AZ
MISMO Web Site - Specifications
MISMO Trimester Meeting
September 15 - 18, 2008 Scottsdale, AZ
Getting Started
MISMO Trimester Meeting
September 15 - 18, 2008 Scottsdale, AZ
General Session will highlight
Workgroup Activities
• XML Architecture & V3.0 Model
(MONDAY)
TUESDAY:
•
•
•
•
•
•
•
Mortgage Insurance
Origination
Secondary
Property & Valuation Services
Fraud Detection (AM)
Government Housing (AM)
Title Insurance (AM)
MISMO Trimester Meeting
September 15 - 18, 2008 Scottsdale, AZ
Workgroup Activities
Tuesday PM
• Real Estate Services:
– Flood Insurance (PM)
– Mortgage Insurance (contd.)
– Property & Valuation Services (contd.)
– Real Estate Tax (PM)
• Interface Architecture (eMIT) – PM
• Origination
• Secondary
TUESDAY EVENING: Cocktail Reception
MISMO Trimester Meeting
September 15 - 18, 2008 Scottsdale, AZ
Workgroup Activities
(Wednesday & Thursday)
• eMortgage and subgroups (Wed – Thurs)
– ePackaging (SOAP) Thurs AM
•
•
•
•
•
•
Credit Reporting
Servicing (AM)
Document Classification (PM)
Property Valuation (contd.)
Origination (contd.)
Core Data Structures (members only)
MISMO Trimester Meeting
September 15 - 18, 2008 Scottsdale, AZ
2008 MISMO Meetings
January, May and September
January 2009 ???
MISMO Sponsorship Program
Silver Sponsors: Fiserv
Freddie Mac
Bronze Sponsor: FICS
Contributing:
Buckley Kolar
Optimal Blue
PRIA
(Your company name here ???)
MISMO Trimester Meeting
September 15 - 18, 2008 Scottsdale, AZ
Questions?
Gloria Zimmer
Harry Gardner
202-557-2839
202-557-2927
hgardner@mortgagebankers.org
gzimmer@mortgagebankers.org
Dan Szparaga
Colleen Wesling
202-557-2805
202-557-2797
dszparaga@mortgagebankers.org
RJ Schlecht
cwesling@mortgagebankers.org
Malikah Crable
202-557-2843
202-557-2821
rschlecht@mortgagebankers.org
mcrable@mortgagebankers.org
Dave Krause
202-557-2772
dkrause@mortgagebankers.org
MISMO Trimester Meeting
September 15 - 18, 2008 Scottsdale, AZ