MISMO, the Mortgage Industry Standards Maintenance Organization, is revising the licenses required to use MISMO standards and collateral. The new licenses, effective for standards and collateral issued after Dec. 31, 2017, cover the terms of use for the various products issued by MISMO. The changes include a revision to the existing End-User License, as well as the adoption of a new Distributor License. Fees may be required to obtain the new licenses for organizations that are not members of MISMO. These changes will ensure that the appropriate terms of use exist for the new types of standards and collateral that MISMO expects to issue in the coming years.
The need for standards, implementation guidance and other tools to meet new and changing mortgage industry requirements continues to grow. Supporting these efforts requires expanded industry participation and involvement in the standards development process. These efforts also require additional staff support, tools, and other resources, which will be paid for with the new license fees. The new licenses will also enable MISMO to better understand how industry standards are being used and incentivize additional industry participation. MISMO’s current license, implemented in 2004, does not support these priorities.
“The mortgage industry has undergone enormous change since MISMO released the industry’s first data standards 13 years ago,” said Jan Davis, Vice President of MISMO and Associate Vice President of Industry Standards at MBA. “Back then, there was no common data language for creating a mortgage loan. Today, you cannot deliver a loan without using MISMO standards. As more processes go digital, and the need for collaboration increases, the importance of MISMO standards will continue to grow. The new licenses will ensure that MISMO is positioned to support our ever-changing industry.”
Organizations that download the MISMO standards and develop technology based on MISMO standards are required to have the appropriate MISMO license. The appropriate license is determined by two components. The first criteria is based on the date that the standard was issued. The second criteria is based upon how the organization is utilizing the standard.
Organizations that rely on third-party technology (e.g., lender using a vendor provided LOS) that incorporates MISMO standards or collateral are not required to have a MISMO license.
MISMO members receive both the Distributor License and the End User License for free as a benefit of their membership in MISMO. A MISMO membership costs $2,500 annually. License fees may apply for organizations that are not members of MISMO. These fees will only apply for MISMO standards or collateral released after Dec. 31, 2017. Organizations that are not MISMO members will pay $2,250 for a Distributor License if they are using MISMO standards to build technology for commercial sale and $1,500 if they are building technology they share with partners. The 2018 End User License to use the MISMO standards will cost non-members $1,500. Licenses are annual and will require annual renewal. Downloading the standards may be free if the organization will not be using the standards to build new technology. Costs for MISMO collateral will vary for each MISMO product and may not require annual renewal.
MISMO recognizes that there are many small lenders and service providers involved in the mortgage industry. To ensure that the license fee is not a burden to these organizations, a license fee waiver will be available. The license fee waiver will be available upon application for lenders that originate less than $500 million or fewer than 1,000 loans annually or other organizations such as vendors with fewer than 10 employees.
“Fees generated from MISMO licenses will help MISMO provide additional support to the industry” said Rick Hill, Executive Vice President of MISMO and Vice President of Industry Technology at MBA. “Licensing fees for future standards will also ensure that companies that benefit from the standards will contribute to the standards development process, either through membership and volunteer effort or through the fees. At the same time, the small business fee waiver recognizes the importance of smaller organizations to the health and dynamism of the industry.”
