It underwent extensive review from different organizations
MISMO has announced that its Mortgage Compliance Dataset (MCD) specification has reached “Candidate Recommendation” status, meaning the MCD has gone through an extensive review from different organizations and industry participants and is now available for use.
The MCD is intended for state and federal regulators, as well as compliance vendors, to conduct testing of closed loans during mortgage origination exams. Mortgage lenders, with their compliance vendors, will also use the MCD to test compliance 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 Richard Hill, acting MISMO president. “The MCD will ultimately reduce friction, increase accuracy, and create a more efficient process for our stakeholders involved in the oversight and regulatory process.”
Conference of State Bank Supervisors president and CEO Brandon Milhorn added: “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. 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 replaced the fixed format Loan Examination File (LEF) with an XML schema-based version aligned with version 3.6.0 of the MISMO Reference Model. MISMO has also released a schema file to assist with implementation. By utilizing MISMO’s standardized data terms and structures, the MCD should improve data accuracy, processing efficiency, and ease of updates over time, it was stated.
