Moderator: Randy Gillis, Black Knight Financial Services Panelists: Mark Kleingers, Black Knight Financial Services Mick Smothers, Capco September 12, 2016 MISMO Fall 2016 Summit The MISMO 2016 Fall Summit Education Program is sponsored by: MISMO Future State Standards Initiative (FSSI) Overview

MISMO Future State Standards Initiative (FSSI) Goals for the Future State Providing work products that align well with industry needs and encourage adoption of the standards. Formalize the process for capturing and ensuring traceability of business influence in the standards: –Business knowledge, workflows, and terminology are captured and presented in forms that are easily understood by non- technical individuals and adaptable to multiple technologies. –Business needs drive prioritization of work activities. –Enable business analysis and technical work to occur independently and at different paces. Providing a clear separation of concerns between business products and technical ones, such as XML schema. Creating a technical process that allows for the production of the MISMO standards in formats in addition to XML Schema. 2

MISMO Future State Standards Initiative (FSSI) How Future Goals Were Determined The future state vision originated in 2015 with a series of interviews involving people with different perspectives: –Business vs. technical –MISMO member vs. non-member –A variety of industry roles Common perceptions captured include: –The need for business-driven priorities and context –A desire to cut the complexity of the model and make it more user-friendly –The perception that the MISMO standards are only for technical stakeholders –The belief that updates to the model take too long 3

MISMO Future State Standards Initiative (FSSI) Desired Improvements Ensure that the most important industry needs are addressed first. Enhance current and future work products to include content valuable to both business and technology professionals. Separate the process of describing business “things” and “relationships” from XML Schema, in order to support future technical products. Introduce the concept of an advocate, which is someone who: –Proposes new work products or significant new business- driven content. –Provides support throughout the process of adding the new product or content. 4

MISMO Future State Standards Initiative (FSSI) Future State Vision 5

MISMO Future State Standards Initiative (FSSI) Future State Advantages Business-oriented work can proceed ahead of XML Schema releases and be scheduled for future releases. Business products and activities will allow business experts to better understand MISMO and contribute. Separating business concepts from XML Schema allows reuse of knowledge across future technical products, such as a data model or JSON model. New work products, both business and technical, will add industry value, encourage adoption, and drive additional participation in MISMO. 6

MISMO Future State Standards Initiative (FSSI) Getting to the Future State: Work Streams Putting the desired future state into practice will require efforts in three key areas, or work streams: –Business Work Stream –Technical Work Stream –MISMO Organization and Policy Work Stream The activities of each work stream will be guided by: –A charter, which details the purpose, goals, key deliverables, and a high level plan of action –Detailed statements of work for specific initiatives 7

MISMO Future State Standards Initiative (FSSI) Business Reference Model Depicts the loan lifecycle graphically as a high-level process flow: –Contains activities that are commonly used industry-wide –Allows the ability to drill down to more detail where appropriate –Contains detailed narratives for the most common and standardized activities Narratives tie the Business Reference Model to other MISMO work products, such as Implementation Guides and the XML Schema, and also reference related Workgroups. Detail work is focused on specific, prioritized work streams. Not all activities will be detailed out. Some activities aren’t performed in a common fashion by all participants. 8

MISMO Future State Standards Initiative (FSSI) Business Glossary Advances the use and reuse of consistent mortgage finance industry terminology by: –Defining authoritative meaning of many different things of importance to the mortgage finance community –Accurately representing mortgage finance business hierarchies and relationships between things of importance –Establishing responsibility, accountability and traceability for Glossary of Business Terms and MISMO architecture content Provides business specifications for the MISMO Technical Architecture (ERD/LDM) Content for the Business Glossary will be initially derived from appropriate aspects of the Logical Data Dictionary (LDD) and related engineering guidelines (MEGs). 9

MISMO Future State Standards Initiative (FSSI) Logical Data Model (LDM) Use a standard, implementation-neutral language to describe the model. Final form is TBD, but possibilities include –UML –ERD –Custom extensions to XML schema –A combination of approaches Selection of language with an eye towards tools that will save time & effort, also allow concurrent update streams “First, do no harm” – The new LDM MUST support generation of the existing XML schema; the initial LDM release MUST be reverse- engineered from it. In addition to definition needed to produce XML schema, the new LDM will capture additional data & architectural definition that may be required for other physical implementations 10

MISMO Future State Standards Initiative (FSSI) Guiding Principles To assure that each Work Stream is aligned with common goals and objectives, all work must adhere to a set of guiding principles: –All new products created by MISMO shall have an advocate. –Changes to the process of creating work products must not alter the XML Schema that is currently delivered. Ultimately, future activities should be about increasing engagement and enabling MISMO to better provide value to the industry. 11

MISMO Future State Standards Initiative (FSSI) Questions? 12