The mortgage industry’s top trade group issued two new enhancements to help establish consistency across the loan boarding process as well as in communications surrounding artificial intelligence.
The Mortgage Industry Standards Maintenance Organization released its new loan boarding dataset, which provides a consistent data baseline to ease the path for newly originated mortgage loans to be transferred to servicing platforms. Use of the dataset is encouraged to avoid problems that appear both during loan setup and the servicing transfer as a result of missing or incomplete information.
“Establishing a common dataset at the point of loan boarding is a major step forward in improving servicing data exchange across the industry,” said MISMO Acting President Rick Hill in a press release. “The loan boarding data segment will help ensure more accurate, consistent information is exchanged, creating benefits for servicers and a better overall experience for borrowers.”
The dataset will help reduce loan activation time and minimize costs coming from data errors when loans are transferred, MISMO said. It also should enable clear communication between originators, servicers and subservicers and eliminate the need to create multiple custom boarding files.
Created by MISMO’s servicing transfer development workgroup, the dataset was developed with input coming from across the mortgage industry, including the participation of the government-sponsored enterprises.
MISMO, which operates as a unit within the Mortgage Bankers Association, is also asking servicers to compare its dataset against their own existing specifications to identify current gaps. Any identified gaps should be reported to MISMO in order to help it improve the loan boarding guidelines.
The arrival of new recommended AI terminology
MISMO’s loan boarding dataset arrives just a few days after the organization also officially released its artificial intelligence glossary, which it describes as “a resource designed to establish a shared vocabulary for AI across mortgage finance.”
The group initially published a draft version in July and opened up the glossary for industry comment prior to its finalization and launch earlier this week.
“By creating a common vocabulary, the AI glossary provides the foundation for consistency and clarity, helping lenders, servicers, regulators and technology providers better collaborate and innovate responsibly,” Hill said.
The glossary is the first of many initiatives MISMO plans to introduce to support AI adoption within the mortgage industry through guidance and suggested best practices. Mortgage industry partners can put forward new terms for future inclusion and contribute other recommendations to ensure the glossary remains up to date, MISMO advised.
“As AI technology continues to evolve, new concepts, methodologies and terminologies emerge. This resource will be regularly updated to reflect the latest advancements and is available for the entire industry to use,” Hill previously said at the time of the draft release.
Among terms included in the initial glossary are big data, natural language processing and responsible artificial intelligence.
