Standard closing instructions template will reduce delays, mistakes

The mortgage industry's standards organisation wants collaboration on new closing instruction standards

Standard closing instructions template will reduce delays, mistakes
The mortgage industry's standards organisation wants collaboration on new closing instruction standards.

MISMO hopes that introducing a standard lender template - including information such as how funds are to be wired or dispersed and whether closing package should be sent - will improve communication and avoid delays during the closing process.

"Closing instructions are critical for successful mortgage transactions, but there is no consistency in format from lender to lender," said Rick Hill, executive vice president of MISMO and MBA Vice President of Industry Technology.
He added that it doesn’t mean lenders having the same instructions but a standard format would make it easier to find information.

MISMO has set up a new Closing Instruction Workgroup responsible for creating the template, instructions for how to use it, and implementation guidance for lenders closing agents and vendors.

There will also be a data exchange standard that permits electronic exchange of closing instructions.

Organizations wishing to join the Workgroup are invited to send an email titled "Join MISMO's Closing Instruction Workgroup" to [email protected] by Monday, September 18, 2017.

“We look forward to collaborating with all organizations and industry groups in this effort, so that we may create a template that works for everyone," added Hill.