Mortgage loan delivery is the process of preparing, selling, and securitizing loans with Fannie Mae, Freddie Mac, and Ginnie Mae, and small data issues can create major problems before a loan ever reaches settlement.
What does it actually take to get a loan from closing to investor settlement without it falling apart along the way?
In Episode 3 of The AiCR Exchange, Joe Furlong sits down with Paul Raebel, who oversees MIAC’s Mortgage Delivery Specialists division. Paul has spent decades helping lenders sell and securitize loans with Fannie Mae, Freddie Mac, and Ginnie Mae. He breaks down what the delivery process actually involves, where data problems show up most often, and what lenders can do to keep settlements on time.
What is mortgage loan delivery?
Mortgage loan delivery is the process of preparing, selling, and securitizing loans with Fannie Mae, Freddie Mac, and Ginnie Mae after closing. It involves ingesting loan data, identifying and resolving data issues, coordinating across secondary, shipping, custodians, servicing, and investors, and ensuring every requirement is met before the settlement date. MIAC’s Mortgage Delivery Specialists manage this process on behalf of clients, working directly alongside their teams to keep things moving.
Why does data quality drive mortgage delivery?
Data drives everything in mortgage delivery. When a loan is submitted for sale or securitization, every required data element needs to be present and accurate. Missing fields, duplicate social security numbers, invalid case numbers, incorrect condo project data any of these can stop a loan from settling. Fannie Mae and Freddie Mac adopted MISMO data standards in 2011, which significantly increased the number of required data elements and raised the bar for what clean delivery looks like. Since then, the agencies have continued adding requirements. Fannie and Freddie also maintain what Paul calls a naughty list, tracking each seller’s top 10 recurring data issues. Conscientious lenders pay close attention to that list and work to resolve those patterns before they become settlement problems.
What are the most common data problems in mortgage delivery?
Data issues in mortgage delivery fall into two categories: missing data and data anomalies. Missing data means a required field was never populated, for example a condo project name, condo type, or number of units that the GSEs require to sell the loan. Data anomalies mean the information was provided but does not make sense, for example three borrowers listed with only two unique social security numbers. On the FHA, VA, and USDA side, common issues include missing upfront MIPs and invalid USDA case numbers. Loans purchased through correspondent channels tend to have more data challenges because the lender has less control over data quality than they do with their own retail originations.
How does MIAC’s delivery process work?
MIAC ingests loan data from clients in whatever format it arrives, whether that is one file or five files. The team runs data validations, identifies every issue, and sends the client a report with a description of each problem and what is needed to fix it. The client corrects the data, typically by going back to the source documents, and returns the updated information. MIAC loads it, runs the data again, and the process repeats until the data is clean. Paul describes the approach as working in the cubicle right next to the client. Every settlement date is treated with urgency, and MIAC does not deviate from its standardized process regardless of time pressure. That process has worked for over 30 years.
How long does mortgage loan delivery take?
Turnaround time depends on data quality and client responsiveness. For Ginnie Mae deliveries where the data arrives clean and in a consistent format, MIAC can turn things around in 30 to 35 minutes. For larger loan groups or clients purchasing through correspondent channels, where data quality is harder to control, the process requires more effort and takes longer. The biggest variable is always how quickly the client can provide corrected data when issues are identified.
What is the best way to ensure clean mortgage loan delivery?
Get the data cleaned up as early in the process as possible, ideally before closing. Running loans through Fannie Mae and Freddie Mac software applications early surfaces issues while there is still time to fix them without affecting the settlement date. Extracting data directly from source documents rather than relying on manual entry into the LOS reduces human error and significantly improves data accuracy from the start. Clean data loaded early means fewer issues at delivery, faster turnaround, and less reputational risk with the agencies.
Frequently Asked Questions About Mortgage Loan Delivery
What agencies are involved in mortgage loan delivery?
Mortgage loan delivery primarily involves Fannie Mae, Freddie Mac, and Ginnie Mae. Each agency has its own data requirements and specifications that must be met before a loan can be sold or securitized. Fannie Mae and Freddie Mac adopted MISMO data standards in 2011, which increased the number of required data elements for conventional loan delivery.
What causes mortgage loan delivery delays?
The most common causes of delivery delays are missing data, data anomalies, and slow turnaround from clients when corrections are needed. Loans purchased through correspondent channels are particularly prone to data issues because the lender has less control over data quality. Addressing data problems early in the origination process is the most effective way to prevent delays at delivery.
What is MIAC Mortgage Delivery Specialists?
MIAC Mortgage Delivery Specialists is a division of MIAC Analytics that assists lenders with the sale and securitization of loans to Fannie Mae, Freddie Mac, and Ginnie Mae. The team manages the full delivery process including data ingestion, validation, issue resolution, pooling, and coordination with secondary, shipping, custodians, servicing, and investors.
How does data extraction software help with mortgage delivery?
Extracting data directly from source documents and loading it into the LOS reduces the human error that comes with manual data entry. Cleaner data in the LOS means fewer issues when loans are run through agency software and fewer corrections needed at delivery. Getting that data right early in the process is the single most effective way to ensure a smooth settlement.
About The AiCR Exchange
The AiCR Exchange is a live conversation series hosted by Joe Furlong. New episodes air live on LinkedIn on the second and fourth Tuesday of each month at 12pm ET. Follow AiCR on LinkedIn to catch episodes as they air and join the conversation.
About Paul Raebel
Paul Raebel oversees MIAC’s Mortgage Delivery Specialists division, which helps lenders sell and securitize loans with Fannie Mae, Freddie Mac, and Ginnie Mae. He has spent decades in mortgage data and delivery and is available to connect on LinkedIn for questions about the delivery process, even when there is no immediate business opportunity.