X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

WASHINGTON, DC-Industry leaders say have taken the first step in developing criterion for conducting commercial mortgage transactions over the Internet with the use of a new Web-based application. The Mortgage Bankers Association of America and the Commercial Mortgage Securities Association are leading the effort to bring commercial mortgage transactions to the Internet by the Mortgage Industry Maintenance Organization, or MISMO commercial.

MISMO recently provided the group working on setting up the commercial standards. The group includes representatives from Capital Thinking, CapMark Services, e-Cognita, Fannie Mae, Freddie Mac, J.P. Morgan, L.J. Melody, Loop Lender, Midland Loan Services, Morgan Stanley, Mortgage Ramp, Prudential, Trepp, and Woodmen of the World–with a Web-based application that makes possible the development of data standards necessary to originate commercial mortgages.

According to MISMO, the application is the principal method through which the “logical data dictionary” and programming tags necessary for online transactions will be established.MISMO was created in January 2000 by the MBA to address the mortgage industry’s future in e-commerce.

The first version of the so-called “data standard,” which will be released later this year, targets the origination process with a data dictionary that includes more than 700 elements. “Commercial mortgage data standards will accelerate borrower fundings and enhance lender profitability – they drive Web-enablement and process efficiency,” says MISMO commercial working group Joseph Rubin, national director of real estate e-business solutions with Ernst & Young LLP.

The effort to collect and define commercial mortgage data into one industry standard makes use of work already done by MISMO on residential mortgages. In March 2000, MISMO released version 1.0 of its dictionary of common data that focused on residential mortgage origination and underwriting. Version 1.1, which covers secondary pooling and delivery transactions and credit, underwriting, mortgage insurance application, and real estate service request processes, was released this March.

“The commercial effort is reusing the tools and processes established by the residential side of the industry and customizing them to reflect the unique nature of commercial real estate finance. The collaboration between the CMSA and MBA really ensures that the standard reflects the market needs of commercial lenders and originators,” says Daniel Szparaga, a director in MBA’scommercial/multifamily business group.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.