Standards & Best Practices


The Mortgage Bankers Association is the leader in establishing industry standards and best practices for the real estate finance industry. The association’s efforts in this area were spurred by an environment in which both the single family side and the commercial/multifamily side of the real estate finance industry saw an increase in private label securitizations and public debt issuance. This led to an increase in regulatory scrutiny and greater investor reporting demands for more transparent, accurate and timely data. The industry’s adoption of technology also has spurred standards development activities.

At the same time real estate experienced comparatively superior returns to other assets, leading to an abundant supply of capital and new investor market entrants that demanded more complex debt structures. Commercial real estate mortgages and mortgage-backed securities are now accepted asset classes by the broad investment community, resulting in their integration into the larger financial services industry.

Greater demands have been placed on servicers and chief information officers to streamline processes and increase efficiencies, fueling the demand for greater standardization across business lines and information trading partners.

MBA responded to industry needs by establishing voluntary industry standards that achieve the following:

  • Increase information transparency;
  • Increase accuracy and consistency in reporting;
  • Increase efficiencies to both individual companies and the industry at large by streamlining processes
    and procedures; and
  • Reduce costs to our members.

This in turn bolsters investor confidence in mortgages as an asset class and indicates to regulators the willingness on the part of the industry to promote best practices or leading practices.

Key examples of MBA’s efforts include MISMO and our technology standards efforts. Another example on the commercial side of the real estate finance business, which proved beneficial in light of Hurricanes Katrina and Rita, is the design of a new commercial insurance form known as the ACORD 28 Form. The form changed an open-ended insurance form into a simple checklist, where insurance agents, for example, standardized how they report whether there was terrorism coverage on the individual properties and if so, how much coverage.

This is true for other property and casualty insurance lines as well. This saves servicers a great deal of time because they have a consistent insurance form across properties and don’t have to contact individual insurance agents on the phone and inquire about the type and the amount of coverage on the properties/loans they service.

COMBOG has embraced the establishment of industry standards and will continue to spend more time furthering the development of standards.

Multifamily Delinquency and Default Reporting System (MDDR)
  • MDDR Best Practices