Important Next Steps for Implementing the Uniform Loan Delivery Dataset
November 5, 2010
Since the launch of the Uniform Loan Delivery Dataset (ULDD) in June, progress continues toward the goal of a full transition to the ULDD for mortgage deliveries to Freddie Mac beginning September 1, 2011. As you develop your plans to meet this deadline, it is critical that you plan for both your technical and process implementations early on, before year-end. The ULDD is a technical change to MISMO-based XML, as well as a data change, which includes new data requirements. There are two primary phases of work in transitioning to the MISMO-based XML file.
First, perform a Business and Data Analysis
Whether you provide loan delivery data directly from your own system, use a vendor, or manually input, transitioning from the current Freddie Mac delivery file data points and formats to the MISMO-based ULDD requires several steps:
- Assessing and understanding the delivery data points in the ULDD that apply to the types of loans you deliver to Freddie Mac.
- Performing a data point by data point analysis of where you currently collect and maintain each piece of information in your systems or mortgage document files.
- Identifying any gaps in the data you collect today versus what will be required beginning September 1, 2011, and developing an operational plan to capture the missing data.
We cannot stress enough the importance of performing the analysis as soon as possible, and well before you finalize your technical implementation. These are steps you must take, regardless of whether you’re pursuing a vendor solution or plan to export mortgage data directly into our delivery system. The process flow resource posted on our ULDD Web page can guide you through the analysis steps.
Second, create a MISMO-based XML file
In addition to completing the business and data analysis, you or your vendor will need to create the MISMO-based XML file structure. This work includes:
- Creating the technology structure ("file containers") to convert and deliver the required data points in the MISMO XML format if you plan to export a data file directly into the Freddie Mac selling system
- Talking with your vendor – if you will rely on the vendor’s system to create your loan delivery file – to develop a joint understanding of how the data will be collected and delivered in the file container
Resources to Assist You
A number of resources are available to assist you on our ULDD Web page, including:
- A new resource, the ULDD Data Analysis Flow document, to assist you with a step-by-step business analysis. Start by reviewing this document.
- The Freddie Mac Implementation Guide for Loan Delivery Data
In addition, you may contact your Freddie Mac selling system representative for more information.
Working together, we intend to achieve a comprehensive transition to the ULDD with you prepared for and delivering the new data points by September 1, 2011. By beginning your own preparations now and being fully prepared by our cutover date, you’ll:
- Avoid potentially significant disruptions to your secondary mortgage funding and delivery operations
- Strengthen your data quality and data delivery processes, potentially streamlining your downstream operations in the future
As an important reminder, the GSE adoption plans are designed to meet the Federal Housing Finance Agency’s requirement that all loans delivered to the GSEs use the MISMO-based ULDD beginning September 1, 2011.
This communication relates to the Uniform Mortgage Data Program, an effort undertaken jointly by Freddie Mac and Fannie Mae at the direction of their regulator, the Federal Housing Finance Agency.