Communicating the appraisal is a vital step in the Valuation Process. Methods of Communicating have changed. Transparency in lending transactions requires data to be processed and stored in a universally understood format that is available to all of the participants and partners in the loan transaction.
MISMO standards provide a common, consistent and cooperative framework of data definitions to communicate the appraisal report details.
The result of adhering to these standards is higher customer satisfaction and better appraisals.
To help collateral valuation professionals get to know MISMO, PaVS addresses some questions some frequently asked by appraisers:
1. What does MISMO 3.1 mean for the production of appraisals reports?
Version 3.2 promotes a common terminology and communications with clients and intended users.
2. How does this affect my use of a given software package for completing appraisal reports?
Software vendors may add MISMO 3.2 terminologies to thier respective software packages, they may add new output styles. MISMO does not dictate Client/Lender requirements, those decisions are between the apprasier and client in the trading partner relationship.
3. What does MISMO do with the Data?
Nothing. MISMO is a data standard for communicating data. It is not a database or data storage facility. It is an open standard, and part of the public domain which means that anyone may use it.
MISMO does not define the process or method of data management by the user.
The client or its service company may require that the data transmitted by the appraiser meet a more narrowly defined format or may apply business rules or products.
MISMO provides the data standard, it does not receive, translate, hold or interpret your appraisal reports.
4. Why does the client lender, GSE, and /or loan servicer want to receive the appraisal in a standardized format?
Consistent representation of Appraiser’s facts and value opinion.
Transparency in data exchange between trading partners.
A single message may include data as XML as well the original report PDF and images.
5. Is MISMO USPAP Complaint?
MISMO is a data standard and as such is not governed by USPAP. Appraisers are governed by USPAP, so when providing a report in any format, including a data file, the USPAP Ethics Section on Record Keeping applies.