FHFA Adding Servicing Dataset to UMDP


A new Federal Housing Finance Agency initiative will require the government-sponsored enterprise to create a common data standard and new servicing form under the Uniform Mortgage Data Program.

The Uniform Mortgage Servicing Dataset will be developed jointly by Fannie and Freddie work groups under the supervision of the FHFA. A timetable for the dataset will be established by the end of 2012 and data collection will begin sometime in 2013.

The UMSD will become the fifth component of the UMDP, alongside the Uniform Loan Delivery and Uniform Appraisal datasets, the enhancements each GSE made to their delivery systems to accept the ULDD file, as well as the Uniform Collateral Data Portal, a custom-made system both GSEs use to collect UAD files.

Officials from Fannie Mae and Freddie Mac said during a presentation at the Mortgage Bankers Association’s recent technology conference that development of the new UMSD is in its infancy and it hasn’t been determined yet if the GSEs will build a joint portal similar to the UCDP to accept the new file, or make enhancements to their individual existing systems to accommodate the UMSD.

According to Steven Pawlowski, Fannie Mae vice president of strategic initiatives, the GSEs are planning on spending the next 18-to-24 months focusing their data standards efforts on the servicing side of the mortgage industry.

The earliest work in what’s now known as the UMDP started three years. While industry experts praise the intent of the UMDP, some have criticized the numerous delays and setbacks, as well as the lack of information and transparency the GSEs provided to the industry, particularly during the effort’s most significant challenges.

But with the UCDP up and running and lenders and their appraisal vendors now successfully submitting full electronic appraisal reports for all loans purchased by Fannie and Freddie, “it’s actually nice to be talking about reaching milestones,” said Samuel Oliver, Freddie Mac vice president of single family business transformation.

According to Pawlowski, of the more than 1.4 million appraisals delivered to the UCDP since December, 95% of the reports are completed accurately.

And noting that data standardization is foundational to FHFA’s strategic plan for new a U.S. securitization platform, Oliver said the GSEs will “engage key stakeholders throughout the process,” of developing the new servicing dataset.

“We want to make sure we introduce this in a way that’s palatable to the industry,” Pawlowski added.

Rather than simply being a standard for investor reporting data, the UMSD will facilitate all servicing and bond data transfer activities by defining a broad dataset and phase in collection over time. Oliver said this strategy will help the mortgage industry prepare for the future and serve as a building block for a new securitization platform.

He added that the industry should take the servicing dataset announcement as a sign that the industry will need to continue “ongoing work providing consistent and standardized data.”

“We’re not going to do this once and then be done,” Oliver said. “The continued evolution of the industry will require continued evolution of data standards. This will be the normal rhythm.”

Leave a Reply