MISMO, the real estate finance industry’s standards organization, reported that the MISMO Servicing Transfer Catalog (MSTC) has reached “Candidate Recommendation” status, which means it has been thoroughly reviewed by a wide range of organizations and industry participants and is available for use across the industry.
“The MISMO Servicing Transfer Catalog was developed to be a useful, ‘best practices’ playbook that servicers can use to facilitate servicer-to-servicer transfers,” said David Coleman, President of MISMO. “The industry standard templates provided are designed to improve speed and accuracy and create a more seamless process for the borrower and the new transferee servicer.”
The MSTC will assist the transferee in complying with the ever-changing regulatory environment; support the timely and accurate transfer of residential loan information; facilitate uninterrupted loan servicing; and provide guidance for reducing potential negative effects to both the borrower and the new transferee servicer as a result of the transfer.
The MSTC contains industry standard templates for the minimum set of instructional and transactional documentation required when conducting a servicer-to-servicer transfer of a portfolio of residential mortgage loans. It also includes templates and best practices for servicing transfer instructions, portfolio characteristics, image transfer schedules, required reporting, reconciliation and more. The accompanying MSTC implementation guide (iGuide) is designed to assist the new transferee servicer with high-level information on how to implement the catalog into its production environment and maintain it going forward.
The MSTC, along with other core servicing transfer methods, should be updated and utilized by the resources conducting the transfer throughout the transaction. The MSTC includes:
- Implementation Guide (iGuide)
- Servicing Transfer Instructions (STI)
- Accompanying documents
- STI – Portfolio Characteristics
- STI – Image Transfer Schedule
- STI – Required Reporting
- STI – Reconciliation and Balancing
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