Why are MISMO standards not being adopted?
We in the Commercial Mortgaging Industry Standards Maintenance Organization (C-MISMO) have been trying to come up with our strategic goals for 2011. As a starting point to determine these goals, we are using the results of a 2010 survey the MBA commissioned by the Vertical Industry Standards and Technology Adoption (VISTA) project. The survey basically asked industry participants if Commercial MISMO standards were being adopted and, if not, why not.
The survey concluded that MISMO standards were NOT being adopted because of several factors including:
• down market
• lack of investor demand
• no software vendor support
• existing standards too complicated
Download the complete VISTA survey results.
With so little MISMO XML use by the industry, we decided we need a “go for broke” strategy to sell the benefits of XML. We are going to host a “Data Summit” at the MBA Servicing and Technology Conference in Chicago in May. The idea is to invite key industry players to a forum where we discuss the benefits of XML standards and try and get buy-in for XML adoption.
The key players consist of lenders, servicers, investors, service providers and software providers. We’ve been making a list of who should be there, and we are splitting up the calls based on previous relationships. I have been given several names to arm twist — I mean invite — to this data summit so, if you get a call from me, be nice.
The reason I call this a “go for broke” move: What happens if we invite these key players and no one says yes (or even shows up)? If MISMO can’t convince the key players that XML standards make sense, then what is the purpose of C-MISMO, and should we keep up the effort? In case no one uses the standards, and if we can’t build momentum at the Data Summit, we discussed putting C-MISMO on ice until either the market’s perceived value of XML increases or regulatory compliance demands XML adoption.
It will be interesting to watch this play out. Updates to follow.
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Jim Flaherty is CEO of CMBS.com and the creator of the Backshop loan origination system. He is a trained credit professional with experience installing enterprise underwriting systems for commercial real estate lenders, rating agencies and investors.
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