Increase automation using industry standard APIs and data specifications

Most mortgage lenders are looking for ways to automate their operations to reduce costs, maintain profitability, and efficiently manage their compliance and reporting to various agencies (eg HMDA reporting). Loan origination software automates mortgage processes, providing several benefits: greater efficiency, more transparent operations, reduced staff hours and monetary costs, and fewer errors. Application programming interfaces (APIs) and MISMO data standards contribute to this automation.


APIs are software-to-software interfaces that allow applications to easily communicate back and forth without direct user intervention. An API can be designed to query data or update a database, initiate a process, or add functionality to a software application. Sometimes it’s easier to use an API than to develop new features from scratch.

APIs help lenders streamline operations and improve communication, providing better customer service. They also provide convenience and time savings through workflow automation. Lenders can use APIs to automate reports and programs, saving time and resources, eliminating after-hours and weekend work, and reducing errors caused by human error.

APIs support integrations between software programs, providing automatic communication between systems. They enable secure connections between loan origination and loan management software, central systems, credit bureaus and government-sponsored companies, eliminating the need to manually enter data into each system. APIs allow mortgage professionals to seamlessly order fulfillment services from various service providers or share data across multiple platforms, allowing users to stay in one system to provide support to their clients . For example, an API allows lenders to retrieve mortgage insurance quotes from the LOS.

LPOnlineour web application for borrowers, allows borrowers to complete their loan application and view their mortgage information online and includes an API that displays loan documents loan producer (our loan editing software) and Radstar (a digital imaging tool that electronically stores documents).

MISMO Data Standards

Most mortgage originators rely on a variety of software platforms – such as loan origination systems (LOS), documentation services, credit services and compliance aids – to automate different stages of the mortgage loan process. Loan data must flow easily between these systems in a secure manner that protects data integrity. By building data tools using MISMO data standards, vendors dramatically improve interoperability between trading partners, allowing them to interface seamlessly.

For example, one of the most important integrations a mortgage company must consider is between its LOS and its document services provider. Once the loan application is in LOS, this platform serves as the registration database and provides the engine for underwriting, pricing, closing and secondary marketing. The document service provider must be able to read this data to produce the required loan documents throughout the loan application process. This is in addition to any other services the provider may provide, such as electronic document delivery and signatures.

Loan Producer’s document services interface allows users to order loan documents from any MISMO-compliant document service provider. Depending on the document services provider, additional services may include ordering individual documents, document packages, and compliance services; and electronic disclosures, signatures and deliveries. Loan Producer supports the use of fully digital electronic fences.

At the time of closing, MISMO standards facilitate the reconciliation of certain data from LOS and settlement services to meet regulatory requirements. A mortgage company’s LOS with a document services interface can use MISMO standards to seamlessly transfer loan data, allowing any provider adhering to this format to interface directly to provide services to users. of the LOS.

While each document service provider has its own data element capture and document output system, following MISMO standards helps ensure that no data gets lost between systems. This is true for any other third party service provider that a mortgage company may use for fulfillment services.

MISMO data standards also help mortgage companies avoid getting locked into relationships that don’t drive consistent success. Businesses using loan origination software that complies with MISMO data standards have the ability to switch providers for the various services they use throughout their loan processes. This allows lenders to easily integrate with multiple service providers, allowing them to select the provider that best suits their needs.

For example, if preferred home inspectors or appraisers only work in certain geographic areas, lenders could set up other providers to handle properties outside of those areas. Lenders can also have a backup provider in place and ready to operate if their primary provider cannot provide service due to a natural disaster or temporary service outage. When software systems use proprietary interfaces, creators are typically limited to working with only a small selection of vendors who have an existing working relationship with their company’s LOS.

Additionally, MISMO standards support initiatives such as the new Industrial Loan Application Dataset (iLAD). iLAD is designed to become the new industry standard for transferring loan application data between business partners. iLAD is similar to the Uniform Loan Application Data Set (ULAD), but designed for the mortgage industry as a whole, not specifically for government-sponsored companies like ULAD.

loan producer includes many interfaces that use MISMO standards. Powered by APIs, Loan Producer’s standard MISMO interfaces make it easy to order fulfillment services – credit, appraisal, flood, mortgage and title insurance, surveys and documents – seamlessly online and from any compliant service provider. MISMO. An integrated credit interface makes it quick and easy to order credit reports from any MISMO-compliant service provider and import them into Radstar for easy reference. Credit scores and liabilities are imported directly into Loan Producer, eliminating the need for data entry and increasing the accuracy of loan applications.

Originators know that the mortgage industry is constantly changing. New regulatory requirements, investor demands and new technologies for working with borrowers arise every year. Mortgage companies need to select the tools that help staff work as efficiently as possible.

By partnering with technology providers such as FICS that use APIs and adopt MISMO standards, lenders can utilize the technology environment that helps them stay compliant and profitable while providing high quality service to their borrowers.

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