MISMO Creates Group Focused on Blockchain Technology
MISMO, the mortgage industry's standards organization, has created a new group to foster conversation about the potential for using Blockchain within the mortgage industry. The new group, officially known as the Blockchain Community of Practice, will explore this emerging technology to understand where and how it could be used within the industry, as well as what might be required to implement the technology. MISMO invites all interested parties to participate in this new group. By joining this Community of Practice, participants will also gain access to blockchain experts and related educational materials that explain blockchain technology.
“As the development and use of digital mortgage tools continues to accelerate, there is a real potential for our industry to leverage blockchain technology to improve transparency and reduce costs, which are the key goals of any mortgage banking operation,” said Laurie Pyle, Chief Operating Officer, Factom. “By joining the new Blockchain Community of Practice, mortgage industry participants have the opportunity to be on the ground floor of this exciting new technology and to provide input on new standards and best practices that may soon revolutionize the world of mortgage finance.”
Blockchain technology is increasingly being explored for use throughout the financial services industry to enable faster, more secure digital transactions. Blockchain is based on digitized, distributed ledgers, which are databases that are shared and synchronized across multiple sites to record transactions, similar to an accounting ledger. Distributed ledgers have the potential to serve as a single sole source of truth for specified industry documents, data and/or transactions and could help lenders reduce compliance burdens, improve data quality and lower costs.
“The MISMO Blockchain Community of Practice will provide a forum for industry participants to discuss their business and technology challenges—and we’ll be able to collaborate on developing a collection of best practices for using distributed ledger technology and MISMO standards to verify loan transactions on a blockchain network,” said Shawn Jobe, Director of Software Development at Factual Data and a member of the MISMO Residential Standards Governance Committee. “Any organization involved in the mortgage industry, including lenders, software vendors, third-party service providers and public agencies, are invited to participate.”
The goals of the MISMO Blockchain Community are to develop standards for using distributed ledger technology and MISMO standards to:
►Define a collection of practices for achieving interoperability within a blockchain network using distributed ledger technology and MISMO standards
►Define how transactions and transactional data are recorded and/or referenced on blockchain-based distributed ledgers using the MISMO standards
►Create prototypes, or possibly a blockchain network, using distributed ledger technology and smart contracts based on MISMO standards
►Develop guidance on how mortgage data will be represented on a blockchain network
►Perform industry education and outreach on blockchain technologies