has announced that it is seeking industry participants to join its initiative of applying digital mortgage standards, guidelines and best practices to the loan modification process.
“Millions of homeowners are facing financial hardships because of the COVID-19 pandemic and as of April 19, nearly seven percent–3.5 million–of mortgage borrowers are in forbearance
. Mortgages for many borrowers exiting forbearance may ultimately need to be modified,” said Mike Fratantoni, president of MISMO and Mortgage Bankers Association (MBA) chief economist and senior vice president of research and industry technology. “MISMO is calling on the industry to help digitize the loan modification process, with the goals of handling the increased volume and improving the experience for servicers and borrowers.”
MISMO’s Digital Loan Modifications Development Work Group (DWG) will look to bring together digital mortgage, servicing and loan workout professionals to review current loan modification processes. Currently, servicers working through loan modifications deal with paper-based processes and inconsistent forms. The DWG will set out to develop a set of best practices on how to create, sign, store, and deliver electronically signed loan modifications.
Industry professionals with questions or interest in participating in MISMO’s DWG should send an email, with the Subject, “Participate in Digital Loan Modifications Initiative” to [email protected]