WASHINGTON, D.C. (March 26, 2019) — (RealEstateRama) — MISMO®, the mortgage industry’s standards organization, today recommended the use of the Decision Model and NotationTM (DMNTM) standard for documentation, implementation, execution and exchange of business rules and decisions across the mortgage industry.
The DMN standard was developed by the Object Management Group® (OMG®), an international, open membership, not-for-profit technology standards consortium. DMN, when used in combination with existing MISMO standards, will enable mortgage industry participants to automate the exchange of business rules and decisions between partners; thereby reducing time and cost in the mortgage process.
“By integrating MISMO’s data standard with DMN, we facilitate decision as a service and enable new levels of integration and communication between mortgage industry partners. This moves MISMO closer to its vision of standardizing how the mortgage industry communicates,” said Brian Stucky, CEO of DecisionX and co-chairman of MISMO’s Decision Modeling Community of Practice. “Sharing rules, along with the data used by the rule, will help address many of the interpretive and compliance issues that currently bedevil the mortgage industry. Understanding the rules used by business partners will help resolve differing interpretations and confusion, which in turn should greatly reduce costs across the industry.”
The combination of MISMO and DMN can be applied to any business rule or decision shared by mortgage lenders and third parties, including rules such as the ability to repay requirements, HMDA reporting requirements and servicing guidelines. By using DMN standards, lenders could instantly integrate investor guidelines or other partner requirements into their business processes. This would replace the expensive and time-consuming process that is required today.
MISMO is planning a series of webinars and other resources designed to help lenders and other industry participants adopt the DMN standards. The MISMO Decision Modeling Community of Practice (CoP) is currently working to develop a reference implementation of a decision model using DMN and MISMO standards specific to Ability to Repay requirements. For more information about, or to participate in, the MISMO Decision Modeling CoP, visit: http://www.mismo.org/get-started/participate-in-a-mismo-workgroup/decision-modeling-. More information about the OMG DMN standard can be found at www.omg.org/spec/DMN/About-DMN/.