MISMO, the mortgage industry’s standards organization, announced that it is seeking industry participants to join its initiative of applying digital mortgage standards, guidelines, and best practices to the loan modification process.
MISMO’s Digital Loan Modifications Development Work Group (DWG) will bring together digital mortgage, servicing and loan workout professionals to review current loan modification processes.
“Millions of homeowners are facing financial hardships because of the COVID-19 pandemic and as of April 19, nearly 7 percent – 3.5 million – of mortgage borrowers are in forbearance. Mortgages for many borrowers exiting forbearance may ultimately need to be modified,” MISMO President Mike Fratantoni said in a release. “MISMO is calling on the industry to help digitize the loan modification process, with the goals of handling the increased volume and improving the experience for servicers and borrowers.”
Currently, servicers working through loan modifications deal with paper-based processes and inconsistent forms.
The DWG will develop a set of best practices on how to create, sign, store and deliver electronically signed loan modifications.
Industry professionals with questions or interest in participating in MISMO’s DWG should send an email, with the subject, “Participate in Digital Loan Modifications Initiative” to [email protected].