DocMagic Implements MISMO Version 3.3 in Support of the CFPB’s Integrated Disclosures
February 12, 2015
DocMagic Inc. announced that its loan document preparation solution now adheres to version 3.3 of the Mortgage Industry Standards Maintenance Organization (MISMO) Reference Model.
The Consumer Financial Protection Bureau's (CFPB) integrated disclosure rule combines the mortgage disclosures required under the Truth in Lending Act (TILA) and the Real Estate Settlement Procedures Act (RESPA). It requires the use of the new integrated disclosures beginning Aug. 1, 2015.
Version 3.3 of MISMO establishes a common dataset that is essentially a prerequisite to use the CFPB's new integrated disclosures and share the information about the disclosures with industry partners. The integrated disclosures will replace the current Good Faith Estimate (GFE), HUD-1 Settlement Statement and Truth in Lending (TIL) disclosures for most residential mortgage loans as of Aug. 1, 2015.
"Our early implementation of MISMO version 3.3 is significant because it is yet another step that we are taking to proactively prepare for the CFPB's new Integrated Disclosure rule, as well as industry innovation involving the disclosures," said Dominic Iannitti, president and CEO of DocMagic. "Any software provider that is involved in loan closings or data exchange must update their respective systems to implement the new dataset in order to effectively support their partners and lender clients. Those organizations that wait will likely not be ready to meet the CFPB's deadline and as a result will encounter serious compliance issues."
In March 2014, the GSEs introduced the Uniform Closing Dataset UCD, which is based on the MISMO v3.3 Reference Model standard used to support the Closing Disclosure. As a result, closing documents will change significantly come Aug. 1. Lenders will be responsible for the Closing Disclosure and will need to automatically and seamlessly exchange the data from this disclosure with its settlement agents and other partners. DocMagic is ready to effectively and compliantly transition to this new disclosure for its entire customer base.
Other organizations that will be affected by the rollout of version 3.3 of MISMO, the GSE's introduction of the UCD, and the CFPB's rule include settlement software and loan origination system (LOS) providers, among others.
DocMagic's early implementation of MISMO version 3.3 has allowed the company to begin working on standardizing closing document forms for its clients and partners.
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