MISMO Trimester Meeting January Jacksonville Florida Using the MISMO Reference Model Greg Alvord, Dave Krause Architecture Committee

MISMO Trimester Meeting January Jacksonville Florida Agenda The Business Problems Reference Model Approach The Model The Artifacts Leveraging the Model and Artifacts

MISMO Trimester Meeting January Jacksonville Florida Business Problems Failure of Transparency Major Contributor to Meltdown –Thousand of facts gathered during Origination –Hundreds of facts transferred to Servicing –Dozens of facts used in Bond Risk determination 30 Year old forms inadequate to loan products of this century

MISMO Trimester Meeting January Jacksonville Florida Business Problems Systems built in Silos Organizations build as fiefdoms

MISMO Trimester Meeting January Jacksonville Florida MISMO Shared the Problems V2.x Focus Single Loan Services –Credit –MI –Flood –Title –AUS –Close a Loan

MISMO Trimester Meeting January Jacksonville Florida Solution To Lack of Transparency Build Transparency Into The Design Common Business Vocabulary –Based on common use (How do information workers think about their work) –Extended to show distinctions Same phrase in two silos with different meaning Two well defined phrases

MISMO Trimester Meeting January Jacksonville Florida Business Semantics “Things that are the same have the same name. Things that are different have different names” “Be conservative in what you send. Be liberal in what you accept.” “Send what you have, I will take what I need.”

MISMO Trimester Meeting January Jacksonville Florida V3.x Implements Business Semantics A single vocabulary that crosses boundaries along the value chain. A single model common things in a common place. Unique things in unique place.

MISMO Trimester Meeting January Jacksonville Florida V3.2 Consists of –3205 Terms in the LDD (Up from 3151) –924 Containers (Up from 918 ) –546 Enumerated types (Up from 525) Constructed over a 10 year period Between 50,000 and 75,000 man hours Business domain experts working with design experts.

MISMO Trimester Meeting January Jacksonville Florida V3.2 Adds complex type wrapper on each enumerated type. –Xlink end point –SensativeIndicator xsd:anyAttribute – All data types –namespace=‘##other’ –processContents=‘lax’

MISMO Trimester Meeting January Jacksonville Florida Conventions Data points –ALWAYS associated with a term with a definition –UpperCamelCase –ALWAYS associated with a data type –Class words map to data types –Name less than 81 characters –Siblings of data points are other data points –Usually represented as an XML element

MISMO Trimester Meeting January Jacksonville Florida Conventions Containers –ALWAYS associated with a term –SHOULD have a definition –UPPER_CASE –Contains either data points or other containers, never both. –Plural noun names contain collections of singular noun containers –PARTIES/PARTY

MISMO Trimester Meeting January Jacksonville Florida V3.2 Use Cases Credit MI Flood Title Loan Delivery Servicing Transfer AUS Order documents Receive documents Order Appraisal Receive Appraisal forms and data

MISMO Trimester Meeting January Jacksonville Florida V3.x Multiple Deal Use Cases Pool of Loans Bulk Price a portfolio –For Servicing sale –For selling the loans Bulk Loan Delivery to –Investor –Servicer Reporting –Investors –Regulators

MISMO Trimester Meeting January Jacksonville Florida V3.x Adds Multiple Loan use cases First, Second and HELOC co-originated, each in their own LOAN First and existing Second, each in their own LOAN –Could be going to be absorbed into the refinance or not The refinance being originated and the current loan being replaced The loan before modification and the proposed loan after.

MISMO Trimester Meeting January Jacksonville Florida Common Models ADDRESS wherever used is the same NAME wherever used is the same INDIVIDUAL or LEGAL_ENTITY

MISMO Trimester Meeting January Jacksonville Florida EXTENSION Every container in the model has a child element EXTENSION Every container has a its own extension complex type Every element allows extension attriutes

MISMO Trimester Meeting January Jacksonville Florida REFERENCE REFERENCE is used is many places At the referenced location is an element with the same name as the REFERENCE parent To dereference replace REFERENCE with the children of the referenced element Compare the value of ue with the digest value of the referenced object.

MISMO Trimester Meeting January Jacksonville Florida PARTY Common structure for all parties to the transaction

MISMO Trimester Meeting January Jacksonville Florida Three Root elements MESSAGE DOCUMENT –When a document is located separate from the MESSAGE DEAL –When a document is located separate from the MESSAGE

MISMO Trimester Meeting January Jacksonville Florida MESSAGE

MISMO Trimester Meeting January Jacksonville Florida DEAL

MISMO Trimester Meeting January Jacksonville Florida DOCUMENT

MISMO Trimester Meeting January Jacksonville Florida The Artifacts LDD –One Excel File –Several Tabs ( Chapters) Data points, definitions, where used. –Enumerations and there definitions Containers definitions, where used Deprecated Data Points Deprecated Data Points between 3.1 and 3.2 Deprecated Containers Deprecated Containers between 3.1 and 3.2 Arch roles

MISMO Trimester Meeting January Jacksonville Florida Leveraging Model & Artifacts LDD –Form the foundation for your internal data dictionary Conventions –Rules for internal dictionary AND schema creation –Leverage in any type of transaction (even non-business related)

MISMO Trimester Meeting January Jacksonville Florida Leveraging Model & Artifacts (cont) Send what you have, I’ll take what I need –Internal Pub/Sub model –Write Once, Consume Infinitely Things the same, same name. Things different, different name –Single and absolute XPath helps to limit Change Data Capture (CDC) complexity when dealing w/ systems in silos

MISMO Trimester Meeting January Jacksonville Florida Leveraging Model & Artifacts (cont) Multiple Loan Use Case –Data from different sources represented in same instance of the model –Easy to run decisions logic and identify data quality issues midstream

MISMO Trimester Meeting January Jacksonville Florida Based on MISMO v3.x

MISMO Trimester Meeting January Jacksonville Florida Contact Information Greg Alvord Senior Data Architect RealEC Technologies David Krause AVP Client Services Radian Guaranty, Inc