Uniform Mortgage Servicing Dataset Overview
December 12, 2012
At the direction of our regulator, the Federal Housing Finance Agency (FHFA), Freddie Mac and Fannie Mae (the GSEs) are working together to develop industry-wide servicing data standards, called the Uniform Mortgage Servicing Dataset (UMSD). The UMSD, which is a component of the Uniform Mortgage Data Program® (UMDP®), will define a standard dataset that will facilitate data exchanges between servicers and investors with standardized definitions, formats, and valid data values.
The adoption of an industry standard data model will provide long-term benefits to servicers, GSEs, and the mortgage industry. Some of these benefits include:
- Improved operational efficiency
- Increased data quality and consistency
- Enhanced disclosure for investors and regulators
- Reduced miscommunication between stakeholders by decreasing the use of codes and derived fields
Development of the UMSD is a natural next step as the GSEs build on the success of the UMDP. The UMDP has already provided industry and housing market benefits by standardizing mortgage delivery data through the Uniform Loan Delivery Dataset and appraisal data through the Uniform Appraisal Dataset. The UMSD will build upon that success by extending the benefits of standardization to servicing data to enhance consistency, improve loan quality, and strengthen risk management. Similar to other UMDP initiatives, the UMSD will rely on the Mortgage Industry Standards Maintenance Organization® (MISMO®) servicing data standards that are already well-established in the industry.
A Phased Approach
Because the UMSD encompasses a large dataset, we plan to implement the data collection in phases over several years. The GSEs will work closely with servicers and other key stakeholders throughout the process to understand data collection challenges, and adoptability.
Moving from the industry’s current practice of using different proprietary servicing data files to a standard dataset based on a common XML file structure will be a significant and long-term project. The phased implementation approach will help industry participants plan for the investment in resources and technology required to migrate to the newer MISMO XML file format and collect and control additional new data fields.
The GSEs are developing a framework for the dataset specification, including a comprehensive list of servicing-related data points. Prior to publication of the Phase I UMSD specification in 2013, we will be seeking input from a targeted set of industry stakeholders, including servicers, vendors, technology providers, mortgage insurers, regulatory bodies, private investors, and MISMO.
We are currently in the early stages of development and planning. We anticipate publishing the Phase I specification and implementation plan in 2013. The Phase I UMSD will include only a subset of the full UMSD data requirements that will eventually be collected by the GSEs. The GSEs will create a timeline that provides notice and time for the industry to transition to the UMSD.
More information will be available in 2013 on the implementation plans, specifications and resources available to servicers for transition to the new dataset.