1. Mortgage & Escrow Collaboration
37th Annual Business Meeting & Education Conference
Mortgage & Escrow Collaboration
Rick Hill - Mortgage Bankers Association
Penny Reed - Wells Fargo
May 20, 2017
Rick introduces himself and Penny. Introduces the session.
Purpose of the session is to talk about existing and potential collaboration to solve problems

2. This slide look familiar?
Current Environment
Regulatory uncertainty
Lenders fear of buybacks
Still learning about the implications of TRID
Worries about third party oversight – both directions
Lenders and settlement agents all trying to close loans while protecting themselves
This slide look familiar?
We used it last year
Nothing has changed
Rick covers, Penny adds comments

3. A Path Forward, Through Collaboration
Don’t wait for regulators to tell us what to do.
Collaborate across the entire mortgage industry.
No finger pointing.
Penny discuss value of collaboration to getting a good result.
Rick indicates that failure to collaborate means regulators step into the breach

4. Current Collaborative Efforts
GSE Uniform Closing Dataset
Closing Instructions
Fee Names
Predictable Recording Fees
Rick indicates that these are the items we will discuss.

5. GSE Uniform Closing Dataset
Requirements
In 9/17, lenders report Borrower Closing Disclosure (CD) data
Includes all data in the CD
Includes a copy of the CD
Known as the Uniform Closing Dataset (UCD)
In Q3/18, lenders report the Seller Closing Disclosure data
Things To Think About
Lenders must ensure that the CD and data are the same
Lenders need the final CDs and data in a timely manner
Lenders will seek electronic exchanges of the data from closing agents to reduce errors
Penny covers this slide, comments from Rick

6. GSE Uniform Closing Dataset - Collaboration
Continue to collaborate to improve workflow between lenders and closing agents
Preclosing
Post closing
Utilize industry standard data formats to exchange data
Coordinate discussions with the GSEs regarding the cost/value of the Seller UCD reporting requirement
Penny covers first point, Rick covers standardization efforts and collaboration on GSE communications

7. Closing Instructions – Current World
Delayed delivery of instructions
Inconsistent instruction formats and content from various lenders
Inclusion of certain language that is not appropriate for these documents
Some closing agents don’t follow instructions
Penny covers this slide, with comments from Rick

8. Closing Instructions – Collaborative Effort
We will create a Uniform Closing Instruction template
Same information in the same place from lender to lender
Prioritized content
Easy to find contact information
We will create guidelines for consistent use across lenders
We are not focused on the legal language in the first stage. We will create sample language
MISMO
This will be a consensus standard issued by MISMO – Everyone has a say within MISMO
MISMO needs your expertise to get it right
ALTA, title companies and vendors already collaborate
Important: We are not trying to fix everything in the first stage
Rick covers this slide, with lots of comments from Penny.
The goal of this effort is to reduce risk
We want to create incentives for lenders to use the common form – do you know of any?

9. Fee Names – Current World
Fee names vary from lender to lender, closing agent to closing agent, and jurisdiction to jurisdiction
Disclosure documents and data exchanges need to use consistent language
Hard to get it right when everyone has their own name for the same thing
Penny covers this slide

10. Fee Names – Collaborative Effort
Create a standard set of fee names and definitions for use by lenders, closing agents, and others across the industry
Ensure that names and definitions are friendly for consumers
Ensure compliance with CFPB requirements
Develop and issue standards in stages (maybe annually?)
Collaborate across industry to encourage adoption of the standards
MISMO
This will be a consensus standard issued by MISMO – Everyone has a say within MISMO
MISMO needs your expertise to get it right
ALTA, title companies and vendors already collaborate
Rick covers this slide
Effort has been underway for over a year.
Hope to issue first draft for about 95 data points by summer

11. Predictable Recording Fees
Penny covers this slide

12. Collaboration – What Else Can We Do?
How else can we improve the closing process?
How can we make the experience better for consumers?