MISMO, the real estate finance industry’s standards organization, is calling for the launch of a new standard Commitment File.
In a press release on Dec. 9, the organization urged industry professionals to participate in the launch of a new initiative that would develop the new standard. The Commitment File is part of the post-closing phase of the mortgage life cycle and contains key information used in selling the loan and servicing rights by the originating lender. The organization said the structure and transmission of the file varies across the industry which can lead to inefficiencies, delays and data quality challenges.
“The Commitment File is essential to the selling of loans, yet today it is handled differently across the market. Establishing a standard will streamline operations, reduce manual effort, and speed the exchange of information between lenders and capital markets participants,” Rusty Emory, CSMP, VP of Investor Delivery at PrimeLending. “MISMO invites the industry to come together to create a solution that will drive real modernization in the post-closing space.”
The organization said standardizing the Commitment File will reduce manual work and reformatting, as well as improve data accuracy, and accelerate the speed of data sharing between lenders and capital markets participants.
The initiative will kick off at the MISMO Winter Summit on Wednesday, Jan. 14 from 9 a.m. to 10:20 a.m. Officials said the effort will benefit a wide range of industry participants including mortgage originators and investors, as well as point-of-sale solution providers.