MISMO Seeks Input on New Closing Instruction Standards for the Mortgage Industry

WASHINGTON, D.C. (September 6, 2017) – (RealEstateRama) —  MISMO, the mortgage industry’s standards organization, is inviting industry participants to collaborate on new closing instruction standards, which will be designed to improve communication and avoid delays during the closing process.

Currently, there is no standard lender template for closing instructions, which include information such as how funds are to be wired or disbursed and where the closing package should be sent. Because every lender uses a different format, there is often confusion among settlement service providers and other parties to real estate transactions, which leads to errors and delays that require last-minute changes or post-closing corrections. A standard template for closing instructions will ensure that the same type of information can be found in the same place on every lender’s closing instructions.

“Closing instructions are critical for successful mortgage transactions, but there is no consistency in format from lender to lender,” said Rick Hill, executive vice president of MISMO and MBA Vice President of Industry Technology. “Lenders don’t need to have the same instructions. But much like newspapers are organized into sections, it would be enormously beneficial if closing instructions followed a standard format so everybody can find the information they are looking for. We look forward to collaborating with all organizations and industry groups in this effort, so that we may create a template that works for everyone.”

“Developing a standard template for closing instructions will bring greater clarity to the closing process and should result in fewer last minute hurdles,” said Justin Ailes, vice president of government and regulatory affairs for the American Land Title Association (ALTA). “We look forward to partnering with MISMO and other organizations on this important endeavor.”

Organizations interested in collaborating on a new standard closing instructions template are invited to participate in MISMO’s new Closing Instruction Workgroup. The workgroup will be responsible for creating a common closing instructions template; instructions for day to day use of the closing instructions template; implementation guidance for lenders, closing agents and vendors; as well as, a data exchange standard that permits the electronic exchange of closing instructions. Regular workgroup meetings will be conducted via conference call and in person at MISMO Summits, which are held three times a year.

If you would like to participate in this collaborative, industry-wide effort, please send an email to titled “Join MISMO’s Closing Instruction Workgroup” to "> by Monday, September 18, 2017.  More information on this industry-wide effort is available at mismo.org

CONTACT
Ali Ahmad

(202) 557- 2727

SHARE
MBA

The Mortgage Bankers Association (MBA) is the national association representing the real estate finance industry, an industry that employs more than 280,000 people in virtually every community in the country. Headquartered in Washington, D.C., the association works to ensure the continued strength of the nation’s residential and commercial real estate markets; to expand homeownership and extend access to affordable housing to all Americans. MBA promotes fair and ethical lending practices and fosters professional excellence among real estate finance employees through a wide range of educational programs and a variety of publications. Its membership of over 2,400 companies includes all elements of real estate finance: mortgage companies, mortgage brokers, commercial banks, thrifts, Wall Street conduits, life insurance companies and others in the mortgage lending field.

Contact:

Mortgage Bankers Association
1331 L Street, NW
Washington, DC 20005

Phone: (202) 557-2700

Previous articleSTATEMENT ON LABOR DAY BY U.S. SECRETARY OF LABOR ALEXANDER ACOSTA
Next articleNorton Wants Full House to Vote on Her Amendments to Apply Republican Local Control Principles to D.C.