MISMO is seeking public comment on a new application threshold decision model and white paper. The organization’s Decision Modeling Community of Practice created the product to demonstrate the impact of decision modeling in the mortgage process.
“Many mortgage industry participants perform the application threshold decision using their own unique systems, which means there are no standard mechanisms for determining the application threshold across the industry,” the organization stated. “The application threshold decision model and white paper demonstrate how standardizing the process can enhance business efficiency and communication.”
The decision model and white paper is designed to help mortgage industry participants determine when the application threshold line is crossed, per the application threshold rule expressed by RESPA. When the application threshold line is crossed determines when items such as a good faith estimate needs to be delivered to the borrower to stay compliant with those requirements.
The community of practice who designed the model recommends it as the standard for industry documentation, implementation, and execution of business rules and decisions.
This comment period also allows those who participated on the proposals at least 30 days’ notice prior to final release to review and disclose any applicable patent rights (as defined by MISMO’s 2018 Intellectual Property Rights Policy).
The 30-day comment period runs through Dec. 1, 2022.
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