MISMO Business and Standards Round-up

1. MISMO Fall 2013 Summit MISMO Business and Standards Round-up Presenters: Kyle Bensen, MGIC, Chair Education Committee Randy Gillis, LPS, Chair Strategic Planning Committee Andy Crisenbery, eLynx, Chair Membership and Revenue Committee Harry Gardner, SigniaDocs, Chair Residential Standards Governance Committee Jan Davis, Vice President, MISMO The MISMO Fall 2013 Summit Education Program is sponsored by:

2. MISMO Membership and FinanceCommittee

3. Mission of the Committee is focused on providing increased participation and representation in MISMO and ensure the financial health and independence of MISMO operations Membership • MISMO depends on the support of it’s subscriber and sponsor organizations • Committee considers the wide range of benefits that contributors have access and incorporate new value services • Evaluate how subscription levels align to benefits…and how they can be best coordinated with all relevant programs • Continued support of volunteers that support MISMO and the work that it produces • Incorporate government entities into the organization • Take best advantage of present and future interest and contribution to the organization • Increase event attendance and sponsorship

4. Finance • Tools and analysis that help enable financial health of MISMO • Allows “what-if” evaluations • Infrastructure and technology to modernize organization • Considerations for staff and SME resources • Coordination of existing and new programs into financial model • Education and Software Compliance • Plan for growth of MISMO, subscriber participation and sponsorship of the organization • Ongoing operations • Events • New programs

5. MISMO Software Compliance Program

6. Executive Summary • 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 has been collected throughout the process from multiple audiences including vendors, lenders, MISMO governance, board members, GSEs, and others. • The team created the design for a two level program for certifying companies and their software and tools for specific business domains • The next phases of work include a pilot (Phase 3) in 2013 and a larger roll out early 2014 based on an aggressive timeline.

7. Program Design Overview The objective of the assessment is to evaluate how the MISMO standard for a specified business domain has been applied within a specific software product or module. The vendor will apply for certification. A Level 3 program is under consideration that could include a technical, software-based component as well as a “platinum standard” option for companies that have achieved a high level of compliance with MISMO v 3.x for multiple products or modules. The two level program was supported by vendors as having the differentiating options they desired. The Advisory Committee advised caution in determining demand for the multiple levels. The team proposes identifying pilot participants for both levels to confirm demand for Level 2.

8. Program Design Concepts • Applicants will apply for certification of a software module, component, or tool to a specific business domain. • Subset of domains will be available for the pilot most likely including appraisal, application, closing, and loan delivery. • Certification always includes a review of the company’s MISMO-related practices. The remaining portion of the certification reviews software or tool usage of MISMO against appropriate portions of the Reference Model within the identified domain. • In general both Level 1 and Level 2 require: • 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. • Level 2 also requires certification of MISMO-related education policies and practices

9. Comparison of Level Requirements

10. 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 designation program will facilitate market and regulatory differentiation and enhance the value of the standard. Recognized compliance offers 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.) • 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

11. What’s next? • Go / No Go Milestone for Program Development in October 2013 • Pilot expected to begin in November 2013 (dependent upon “go” decision) • Parties interested in participating in the pilot should contact Jan Davis at jdavis@mba.org: • Desire for software module, component or tool to be certified • Desire to serve as a third party assessor

12. Questions? Jan Davis MISMO Staff jdavis@mba.org 202-557-2715 Web Address: www.mismo.org

13. Thank You to our 2013 Fall Summit Event Sponsor