Today John Courson of the MBA held a conference call with the residential and commercial leadership of MISMO to let us know that MERS, Mortgage Electronic Registry System, has taken over management of MISMO (See news release below).
MERS was created by the industry (the MBA has an ownership stake in MERS) to facilitate the electronic exchange of mortgage rights in support of securitization. It is a registration system (think universal loan ID) so loan servicers can do their job when it comes to releasing liens or foreclosing on loans that had been securitized. MERS has had great success in the Residential MBS market, and their services seem just as applicable to the commercial side. To be honest, I have heard about them forever but, I am not an expert in loan servicing, so I’m not sure how widely they are used in Commercial (I will find out).
Is this a Big Deal? Could be.
If every CMBS loan had a universal ID, that would be a big deal. The main headache with the existing IRP data is making the relationships between the various reporting files (loan, bond, property). If we standardized the way we relate these things together, that is half the battle. IRP in XML is nice to say, but I know firsthand that the data is not there in the raw form to facilitate it. It can be figured out to be sure: Lots of people are doing it (me, Trepp, Intext), but it is a painful, manual, value-added process. If all loans had a universal numbering system so the basic relationships were electronically available, that would be ideal.
What about deals that have multiple loans and multiple properties?
In MISMO, a commercial deal is defined as having many Loans (first mortgage loan, second mortgage loan, even partnership liens) and many properties. Usually, systems from the residential side are focused on the loan level, not the deal level, so tracking multiple loans — with various liens and many pieces of collateral — within one deal is challenging. If MERS registration solves both the loan and deal relationships, that will be a Really Big Deal.
Even if a MERS registration only solved the relationship between loan and bond and property, it would still be a big deal. The majority of the 850 billion dollars in CMBS are first liens, so knowing my position in the capital stack is less important than if I’m in a lower position. So, even if MERS is only at the note level, and since I am usually in first position, it would still deliver substantial benefits by clarifying the relationship from loan to the property and bond files.
WASHINGTON, D.C. (February 4, 2009) The Mortgage Bankers Association (MBA) and MERSCORP® today announced the two organizations have entered into a management agreement under which MERSCORP will be responsible for managing the day to day operations of the Mortgage Industry Standards Maintenance Organization, Inc.® (MISMO). Under the management agreement, MBA retains full control of MISMO and will maintain a permanent seat on the MISMO Board of Directors.
“MBA is pleased to enter into this agreement with MERS signaling the next generation of MISMO,” said John A. Courson, president and CEO of MBA. “It has always been the intent for MBA to develop and nurture MISMO and then align with another entity to conduct day-to-day management of the company in a way that best serves the real estate finance industry. MERS, as an industry utility owned in part by MBA, provides an ideal infrastructure for MISMO and will ensure the user experience of current MISMO participants remains constant at its current high level. We are confident this agreement will result in the continued enhancement of data standards and transparency which are critical to the return of investor confidence and liquidity in our marketplace.”
“As the mortgage industry’s utility, MERS has always been a strong supporter of MISMO in the advancement of industry standards,” said R.K. Arnold, President & CEO of MERS. “We are pleased with the confidence that the MBA has shown in us by entrusting management of MISMO’s day-to-day operations to us on behalf of the real estate finance industry.
The management agreement is effective immediately. MISMO subscribers should contact Dan McLaughlin (danm@mersinc.org <mailto:danm@mersinc.org>) or Gary Vandeventer (garyv@mersinc.org <mailto:garyv@mersinc.org>) at MERS, (800) 646-6377, for assistance with any MISMO matter.</mailto:garyv@mersinc.org></mailto:danm@mersinc.org>
###
The Mortgage Bankers Association (MBA) is the national association representing the real estate finance industry, an industry that employs more than 370,000 people in virtually every community in the country. Headquartered in Washington, D.C., the association works to ensure the continued strength of the nation’s residential and commercial real estate markets; to expand homeownership and extend access to affordable housing to all Americans. MBA promotes fair and ethical lending practices and fosters professional excellence among real estate finance employees through a wide range of educational programs and a variety of publications. Its membership of over 2,400 companies includes all elements of real estate finance: mortgage companies, mortgage brokers, commercial banks, thrifts, Wall Street conduits, life insurance companies and others in the mortgage lending field. For additional information, visit MBA’s Web site: www.mortgagebankers.org .
MERS is a utility launched by the mortgage banking industry to eliminate paper from the mortgage life cycle. MERS facilitates the electronic exchange of mortgage rights and supports the transition to electronic mortgages. It currently has more than 3,800 members.
— — —
Jim Flaherty is CEO of CMBS.com and the creator of the Backshop loan origination system. He is a trained credit professional with experience installing enterprise underwriting systems for commercial real estate lenders, rating agencies and investors.
https://www.cmbs.com/wp-content/uploads/2019/03/cmbslogo030619.png00jimflahertyhttps://www.cmbs.com/wp-content/uploads/2019/03/cmbslogo030619.pngjimflaherty2009-02-04 21:50:292020-09-16 21:51:44MERS takes over management of MISMO from the MBA
I have been looking forward to this week for months. Metallica is finishing up their North American Tour in support of their Grammy nominated new album Death Magnetic with shows in Chicago and New York. I am friends with drummer Lars Ulrich, so I have the privilege of getting great seats and passes to their shows (thanks Steve!).
Now that I’m a groupie, I have learned that, while not everyone loves (or even likes) Metallica, those who do like them, really love them. Since I have clients/friends in both Chicago and New York — and I love Metallica — I figured why not do some entertaining Heavy Metal Style!
So, last night in Chicago, 15 of us met for dinner/drinks at the Ram Brewery, then we hit the show at Allstate Arena.
Our seats were in row AA — literally the first row off the floor — and Metallica put on an amazing show.
Heavy Metal — up close and personal.
Afterward, we had a few drinks at Club Magnetic, the backstage open bar, then I took the three woman in our group into the “inner sanctum” to meet Lars and get an autograph. We all figured Lars would rather meet 3 ladies than 12 men, so that is why we took the women! Thanks Lars!
If you want to meet a rock star, 3 women are much more effective than 12 men.
I arrived in New York today and will be going to the shows with more clients and friends. The trip is not all fun as I also have several meetings lined up. So, if my wife is reading this, it really is a work trip (at least partially), and thanks for holding down the fort while I am playing Heavy Metal groupie!
BTW, I also saw the Oakland show on December 20th with my wife and 10-year-old son, who is taking guitar lessons and already has an ear for metal. Who says Heavy Metal and the Holidays don’t go together?
It’s a Family Affair: me, Andy and Larie.
Last night I shot this video of the opening of “The Day That Never Comes.” Have a taste!
— — —
Jim Flaherty is CEO of CMBS.com and the creator of the Backshop loan origination system. He is a trained credit professional with experience installing enterprise underwriting systems for commercial real estate lenders, rating agencies and investors.
https://www.cmbs.com/wp-content/uploads/2019/03/cmbslogo030619.png00jimflahertyhttps://www.cmbs.com/wp-content/uploads/2019/03/cmbslogo030619.pngjimflaherty2009-01-28 00:00:182020-09-17 00:02:31On the road with Metallica
Attending the inauguration of our 44th President made me feel inspired and hopeful. My wife and I went as guests of the MBA’s political action committee (MORPAC) — and we felt like we witnessed history. The group we were with consisted of both democrats and republicans (and at least one libertarian) but all were moved and awed by the magnitude of the event.
One of the best quotes summing up the event: “What was once the ultimate impossibility will become the reality against which future generations will measure the magnitude of their aspirations.”
Obama and Michelle dancing at the Southern Ball. We were only about 50 feet away.
Hectic but fun
We arrived on Sunday evening (unfortunately having missed the concert on the Mall) and went to McLean, VA where we stayed with my wife’s aunt and uncle. Monday morning, we went to the Air and Space Museum for a private tour, arranged by MORPAC, and then spent the rest of the day on the Mall soaking in the vibe.
Lots of people milled around, and vendors sold all things Obama. We had dinner at Bobby Van’s Steakhouse and late night drinks at the Sofitel Hotel. We were lucky (we thought) to score “Silver” tickets to the swearing-in ceremony, which was supposed to give us access to a reserved standing area relatively close to the capitol. So we headed back to McLean around 1 a.m. to prepare for the big day.
Tuesday we got up early but after suffering through a slow commute on the Metro and having to drop our formal ware off at the MBA’s office, we didn’t reach the Mall until about 10 a.m. We foolishly thought that since we had reserved tickets, we would be able to still get into our section.
Not so.
As it turned out, if you weren’t in line by 7 a.m., you didn’t get access into any of the reserved areas. There were just way too many people, and the security gates did not seem staffed nearly well enough. After about 30 minutes trying to fight through the humanity, we decided on plan B and high tailed it back toward the White House to watch the swearing in at the Willard Hotel.
The Willard Hotel, one of the oldest in Washington, is located right across from the White House on Pennsylvania Ave., directly overlooking the parade route. MORPAC reserved a corner suite on the 10th floor where they had food and drinks set up in a very civilized environment.
We got there about 10 minutes before the swearing-in began and watched the ceremony from the suite. Not exactly what we had hoped for but certainly a lot more comfortable than standing in the 20-degree weather. We, like everybody there, were blown away by his speech and totally in awe at the size of the crowd that came to witness the event firsthand. We ventured out into the streets a few times but spent most of the afternoon at the hotel watching the parade, which passed literally right below us.
That evening, we put on our formalwear and to the Southern Ball, one of the 10 official inaugural balls. The event was held near RFK Stadium and had probably 5,000 attendees.
Susan Tedeschi performed, but everyone was there to see The President. Joe Biden arrived first around midnight, gave about a 5-minute speech and did a quick dance before leaving. Obama arrived at about 12:30 a.m., and the crowd went crazy. He basically thanked the crowd for their support and said “the work starts tomorrow!” He did a quick dance with Michelle and was gone probably 10 minutes after arriving.
I shot this video of his speech and dance:
While the ball itself was not that special, we were able to get about 50 feet away from the stage and got by far our closest view of the Man — a nice way to end the event. Got back to McLean about 2 a.m. and crashed for a few hours before our flight back to San Francisco.
View of the parade route from the MBA suite. That’s “The Beast,” Obama’s top-secret armored Cadillac limo. Said the General Motors spokesperson: “One of the specifications is that we don’t talk about the specifications.”
Parting Observations
African American Community
The fact that Monday was Martin Luther King Day and Tuesday was the swearing in of our Nation’s first black president was not lost on us or the crowd. I would say at least half of the people attending the inauguration were African American, and the pride and inspiration that community demonstrated was beyond words.
If Obama’s presidency does nothing else except inspire people of all colors that anything is possible with personal responsibility and hard work, it will be a success.
The Security and Crowd Control
The event must be judged as a huge success because no one, especially the President, was hurt. That being said, 2 million visitors made the city crowded and hard to get around.
However, despite the frustrations many felt with regard to the swearing-in tickets, the crowd was friendly and inspired, with no trouble makers to be seen. An amazing fact was, despite the gathering of about 2 million people, there was not a single arrest made during the event. Well done crowd!
Cold
It was cold. Enough said.
Hope
Everyone was hopeful. The businesspeople who thought things could not get any worse, and that Obama might inspire confidence began to find a bottom (after all, oil is at $40, interest rates are at 4.5 percent, and housing is finally starting to get affordable again).
The politicians were hopeful they could ride the momentum to enact meaningful legislation. People of all colors were hopeful that they will now be judged by the content of their character, not the color of their skin. Hopeful that the world may look at America with a fresh perspective and put aside old ways of thinking. Hopeful that maybe, just maybe, a wave of openness and transparency was sweeping the nation and the world.
It was awesome.
Air and Space Museum — Pre Wright Brothers plane.
The Virgin Atlantic Global Flyer, in which adventurer Steve Fossett became the first person to fly an airplane solo, nonstop around the globe without refueling.
View from the suite, with Bush leaving by helicopter.
My wife Larie and me at the Willard Hotel.
— — —
Jim Flaherty is CEO of CMBS.com and the creator of the Backshop loan origination system. He is a trained credit professional with experience installing enterprise underwriting systems for commercial real estate lenders, rating agencies and investors.
MERS takes over management of MISMO from the MBA
/0 Comments/in Industry news, Industry standards /by jimflahertyToday John Courson of the MBA held a conference call with the residential and commercial leadership of MISMO to let us know that MERS, Mortgage Electronic Registry System, has taken over management of MISMO (See news release below).
MERS was created by the industry (the MBA has an ownership stake in MERS) to facilitate the electronic exchange of mortgage rights in support of securitization. It is a registration system (think universal loan ID) so loan servicers can do their job when it comes to releasing liens or foreclosing on loans that had been securitized. MERS has had great success in the Residential MBS market, and their services seem just as applicable to the commercial side. To be honest, I have heard about them forever but, I am not an expert in loan servicing, so I’m not sure how widely they are used in Commercial (I will find out).
Is this a Big Deal? Could be.
If every CMBS loan had a universal ID, that would be a big deal. The main headache with the existing IRP data is making the relationships between the various reporting files (loan, bond, property). If we standardized the way we relate these things together, that is half the battle. IRP in XML is nice to say, but I know firsthand that the data is not there in the raw form to facilitate it. It can be figured out to be sure: Lots of people are doing it (me, Trepp, Intext), but it is a painful, manual, value-added process. If all loans had a universal numbering system so the basic relationships were electronically available, that would be ideal.
What about deals that have multiple loans and multiple properties?
In MISMO, a commercial deal is defined as having many Loans (first mortgage loan, second mortgage loan, even partnership liens) and many properties. Usually, systems from the residential side are focused on the loan level, not the deal level, so tracking multiple loans — with various liens and many pieces of collateral — within one deal is challenging. If MERS registration solves both the loan and deal relationships, that will be a Really Big Deal.
Even if a MERS registration only solved the relationship between loan and bond and property, it would still be a big deal. The majority of the 850 billion dollars in CMBS are first liens, so knowing my position in the capital stack is less important than if I’m in a lower position. So, even if MERS is only at the note level, and since I am usually in first position, it would still deliver substantial benefits by clarifying the relationship from loan to the property and bond files.
Is this a Big Deal? Could be. …
— — —
News Release
CONTACT: Cheryl Crispen
(202) 557-2726
ccrispen@mortgagebankers.org
WASHINGTON, D.C. (February 4, 2009) The Mortgage Bankers Association (MBA) and MERSCORP® today announced the two organizations have entered into a management agreement under which MERSCORP will be responsible for managing the day to day operations of the Mortgage Industry Standards Maintenance Organization, Inc.® (MISMO). Under the management agreement, MBA retains full control of MISMO and will maintain a permanent seat on the MISMO Board of Directors.
“MBA is pleased to enter into this agreement with MERS signaling the next generation of MISMO,” said John A. Courson, president and CEO of MBA. “It has always been the intent for MBA to develop and nurture MISMO and then align with another entity to conduct day-to-day management of the company in a way that best serves the real estate finance industry. MERS, as an industry utility owned in part by MBA, provides an ideal infrastructure for MISMO and will ensure the user experience of current MISMO participants remains constant at its current high level. We are confident this agreement will result in the continued enhancement of data standards and transparency which are critical to the return of investor confidence and liquidity in our marketplace.”
“As the mortgage industry’s utility, MERS has always been a strong supporter of MISMO in the advancement of industry standards,” said R.K. Arnold, President & CEO of MERS. “We are pleased with the confidence that the MBA has shown in us by entrusting management of MISMO’s day-to-day operations to us on behalf of the real estate finance industry.
The management agreement is effective immediately. MISMO subscribers should contact Dan McLaughlin (danm@mersinc.org <mailto:danm@mersinc.org>) or Gary Vandeventer (garyv@mersinc.org <mailto:garyv@mersinc.org>) at MERS, (800) 646-6377, for assistance with any MISMO matter.</mailto:garyv@mersinc.org></mailto:danm@mersinc.org>
###
The Mortgage Bankers Association (MBA) is the national association representing the real estate finance industry, an industry that employs more than 370,000 people in virtually every community in the country. Headquartered in Washington, D.C., the association works to ensure the continued strength of the nation’s residential and commercial real estate markets; to expand homeownership and extend access to affordable housing to all Americans. MBA promotes fair and ethical lending practices and fosters professional excellence among real estate finance employees through a wide range of educational programs and a variety of publications. Its membership of over 2,400 companies includes all elements of real estate finance: mortgage companies, mortgage brokers, commercial banks, thrifts, Wall Street conduits, life insurance companies and others in the mortgage lending field. For additional information, visit MBA’s Web site: www.mortgagebankers.org .
MERS is a utility launched by the mortgage banking industry to eliminate paper from the mortgage life cycle. MERS facilitates the electronic exchange of mortgage rights and supports the transition to electronic mortgages. It currently has more than 3,800 members.
— — —
Jim Flaherty is CEO of CMBS.com and the creator of the Backshop loan origination system. He is a trained credit professional with experience installing enterprise underwriting systems for commercial real estate lenders, rating agencies and investors.
www.cmbs.com
www.backshop.com
On the road with Metallica
/0 Comments/in What's going on /by jimflahertyI have been looking forward to this week for months. Metallica is finishing up their North American Tour in support of their Grammy nominated new album Death Magnetic with shows in Chicago and New York. I am friends with drummer Lars Ulrich, so I have the privilege of getting great seats and passes to their shows (thanks Steve!).
Now that I’m a groupie, I have learned that, while not everyone loves (or even likes) Metallica, those who do like them, really love them. Since I have clients/friends in both Chicago and New York — and I love Metallica — I figured why not do some entertaining Heavy Metal Style!
So, last night in Chicago, 15 of us met for dinner/drinks at the Ram Brewery, then we hit the show at Allstate Arena.
Our seats were in row AA — literally the first row off the floor — and Metallica put on an amazing show.
Afterward, we had a few drinks at Club Magnetic, the backstage open bar, then I took the three woman in our group into the “inner sanctum” to meet Lars and get an autograph. We all figured Lars would rather meet 3 ladies than 12 men, so that is why we took the women! Thanks Lars!
I arrived in New York today and will be going to the shows with more clients and friends. The trip is not all fun as I also have several meetings lined up. So, if my wife is reading this, it really is a work trip (at least partially), and thanks for holding down the fort while I am playing Heavy Metal groupie!
BTW, I also saw the Oakland show on December 20th with my wife and 10-year-old son, who is taking guitar lessons and already has an ear for metal. Who says Heavy Metal and the Holidays don’t go together?
Last night I shot this video of the opening of “The Day That Never Comes.” Have a taste!
— — —
Jim Flaherty is CEO of CMBS.com and the creator of the Backshop loan origination system. He is a trained credit professional with experience installing enterprise underwriting systems for commercial real estate lenders, rating agencies and investors.
www.cmbs.com
www.backshop.com
OBAMA!
/0 Comments/in What's going on /by jimflahertyAttending the inauguration of our 44th President made me feel inspired and hopeful. My wife and I went as guests of the MBA’s political action committee (MORPAC) — and we felt like we witnessed history. The group we were with consisted of both democrats and republicans (and at least one libertarian) but all were moved and awed by the magnitude of the event.
One of the best quotes summing up the event: “What was once the ultimate impossibility will become the reality against which future generations will measure the magnitude of their aspirations.”
Obama and Michelle dancing at the Southern Ball. We were only about 50 feet away.
Hectic but fun
We arrived on Sunday evening (unfortunately having missed the concert on the Mall) and went to McLean, VA where we stayed with my wife’s aunt and uncle. Monday morning, we went to the Air and Space Museum for a private tour, arranged by MORPAC, and then spent the rest of the day on the Mall soaking in the vibe.
Lots of people milled around, and vendors sold all things Obama. We had dinner at Bobby Van’s Steakhouse and late night drinks at the Sofitel Hotel. We were lucky (we thought) to score “Silver” tickets to the swearing-in ceremony, which was supposed to give us access to a reserved standing area relatively close to the capitol. So we headed back to McLean around 1 a.m. to prepare for the big day.
Tuesday we got up early but after suffering through a slow commute on the Metro and having to drop our formal ware off at the MBA’s office, we didn’t reach the Mall until about 10 a.m. We foolishly thought that since we had reserved tickets, we would be able to still get into our section.
Not so.
As it turned out, if you weren’t in line by 7 a.m., you didn’t get access into any of the reserved areas. There were just way too many people, and the security gates did not seem staffed nearly well enough. After about 30 minutes trying to fight through the humanity, we decided on plan B and high tailed it back toward the White House to watch the swearing in at the Willard Hotel.
The Willard Hotel, one of the oldest in Washington, is located right across from the White House on Pennsylvania Ave., directly overlooking the parade route. MORPAC reserved a corner suite on the 10th floor where they had food and drinks set up in a very civilized environment.
We got there about 10 minutes before the swearing-in began and watched the ceremony from the suite. Not exactly what we had hoped for but certainly a lot more comfortable than standing in the 20-degree weather. We, like everybody there, were blown away by his speech and totally in awe at the size of the crowd that came to witness the event firsthand. We ventured out into the streets a few times but spent most of the afternoon at the hotel watching the parade, which passed literally right below us.
That evening, we put on our formalwear and to the Southern Ball, one of the 10 official inaugural balls. The event was held near RFK Stadium and had probably 5,000 attendees.
Susan Tedeschi performed, but everyone was there to see The President. Joe Biden arrived first around midnight, gave about a 5-minute speech and did a quick dance before leaving. Obama arrived at about 12:30 a.m., and the crowd went crazy. He basically thanked the crowd for their support and said “the work starts tomorrow!” He did a quick dance with Michelle and was gone probably 10 minutes after arriving.
I shot this video of his speech and dance:
While the ball itself was not that special, we were able to get about 50 feet away from the stage and got by far our closest view of the Man — a nice way to end the event. Got back to McLean about 2 a.m. and crashed for a few hours before our flight back to San Francisco.
View of the parade route from the MBA suite. That’s “The Beast,” Obama’s top-secret armored Cadillac limo. Said the General Motors spokesperson: “One of the specifications is that we don’t talk about the specifications.”
Parting Observations
African American Community
The fact that Monday was Martin Luther King Day and Tuesday was the swearing in of our Nation’s first black president was not lost on us or the crowd. I would say at least half of the people attending the inauguration were African American, and the pride and inspiration that community demonstrated was beyond words.
If Obama’s presidency does nothing else except inspire people of all colors that anything is possible with personal responsibility and hard work, it will be a success.
The Security and Crowd Control
The event must be judged as a huge success because no one, especially the President, was hurt. That being said, 2 million visitors made the city crowded and hard to get around.
However, despite the frustrations many felt with regard to the swearing-in tickets, the crowd was friendly and inspired, with no trouble makers to be seen. An amazing fact was, despite the gathering of about 2 million people, there was not a single arrest made during the event. Well done crowd!
Cold
It was cold. Enough said.
Hope
Everyone was hopeful. The businesspeople who thought things could not get any worse, and that Obama might inspire confidence began to find a bottom (after all, oil is at $40, interest rates are at 4.5 percent, and housing is finally starting to get affordable again).
The politicians were hopeful they could ride the momentum to enact meaningful legislation. People of all colors were hopeful that they will now be judged by the content of their character, not the color of their skin. Hopeful that the world may look at America with a fresh perspective and put aside old ways of thinking. Hopeful that maybe, just maybe, a wave of openness and transparency was sweeping the nation and the world.
It was awesome.
Air and Space Museum — Pre Wright Brothers plane.
The Virgin Atlantic Global Flyer, in which adventurer Steve Fossett became the first person to fly an airplane solo, nonstop around the globe without refueling.
View from the suite, with Bush leaving by helicopter.
My wife Larie and me at the Willard Hotel.
— — —
Jim Flaherty is CEO of CMBS.com and the creator of the Backshop loan origination system. He is a trained credit professional with experience installing enterprise underwriting systems for commercial real estate lenders, rating agencies and investors.
www.cmbs.com