The Focus on Exchanging Information in Real Time

How can lenders manage the data exchange and ensure accuracy and transparency in that process?

It's been a great opportunity for moving the industry forward from a digital perspective. From the regulators to the customer experience perspective, everybody is now used to knowing something happens at the same time that it happens. It's real-time all the time, whether it's data or payments. That's the expectation.

The first opportunity is to get the data directly from its source and keep it in an electronic format so there's not any mistakes in re-keying it or understanding what the original data was. Trying to keep data in its original form, if you can get it electronically straight from the source, and then being able to reconcile it if you can't get it right from the source or if you have gotten it from the source, but maybe it came through another party such as the broker or wholesaler, but being able to compare that data with other sources as well is part of reconciling it. Certainly the MISMO standards for data have helped tremendously for this, especially with the 3.X with one common data dictionary. I think that's really been a huge catalyst for this data exchange. It's certainly been the centerpiece of the GSEs' programs for uniform mortgage data.

Kim Weaver

We have regulations, such as TRID or HMDA, and the GSE requirements for more data, so using the common data language is very helpful, but not everything is necessarily going to be in that language at this time. So how can they still source that data where applicable but also try and use that same investment that they're making to make the data exchange faster and more reliable in terms of accuracy? How can they use that as a way to really rethink their customer experience? One of the things we're seeing is, between HMDA and particularly the uniform closing data set collection requirements, how to rethink the closing process—what information is being provided by whom, and trying to get them to provide it in electronic means, preferably in the same MISMO language. But at minimum, just enabling the electronic exchange of that information, including the borrower in that exchange of information, and then certainly that lends itself toward revisiting the e-closing, e-mortgage process, which is something that Fiserv has been involved in since 2005.

More and more data has to be provided. You don't want it on paper if you can help it—you want it to be electronic, and then it's how can you use whatever investment you're making to improve the borrower experience.

How much of a challenge is it to provide this information in real time?

That is still a challenge in some aspects of the overall origination process, and sometimes even the servicing process. Our servicing system processes everything in real time, and that's where the industry is definitely going. But I think that expectation of a change occurs, whether you got the appraisal in on the origination side, or the closing has happened, all the docs are signed, and you're ready to be funded for an escrow state closing, or the servicing payment was made. The lender, servicer, and all other parties expect to know what has happened immediately. That's where there's a lot of system upgrades being done if they're not already real time in terms of being able to publish out to integrate systems to know when activities and events occur. It's not just the information itself that events or triggers have occurred, but it's also the money movement, and that's another area where we're been paying a lot of attention—certainly seeing the ACH (automated clearing house), but also looking ahead to true real-time payment systems. That, to me, is going to be another catalyst in changing the mortgage lending experience whether it's at the closing table, which you could e-sign everything and then be able to immediately trigger the money movement that would really affect the escrow or the dry closing model. In the Western states, really being able to do that has completely changed that—having the visibility into that money and where it's going for potential fraud mitigation opportunities, servicing the loan, or giving the borrowers greater flexibility to make payments wherever they are, whether that's online, mobile, at the branch, or even in retailers. Being able to support that funds exchange and having that immediate posting and immediate confirmation back is also something we focus on,

Home equity lines of credit are really coming back into use, particularly for those borrowers who have regained equity with the improving economy. Looking at how to enable the management and access the funds that the customers can have from home equity lines of credit is a more frequently used finance mechanism.