Recommendation on Framework for Mortgage Industry Data Standards

PDF - Report

In the fall of 2020, we published an initial report called Mortgage Data Standards: Technology, business and policy joining forces to advance the industry. We discussed how implementing mortgage data standards can substantially improve functionality and stability in an ever-changing technology environment.

In this report, we present key findings from a series of workshops that took place in October 2020 to further discuss the standards. We explore various governance options and recommend an option most likely to be effective and broadly accepted in Canada.

Author:: CMHC
Document Type:: PDF
Date Published:: April 27, 2021

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About the workshops

In October 2020, we hosted a series of virtual industry workshops in collaboration with KPMG. Participants included more than 42 key industry stakeholders:

large banks
medium and small lenders
technology firms
title insurers
credit rating agencies
FinTechs
mortgage insurers
mortgage brokers
industry associations

The goal was to capture their opinions and preferences on how to create and implement a Canadian framework for mortgage data standards.

The workshops explored how to enable the industry and regulatory bodies to collaborate in the creation of data standards. The main discussion revolved around 4 themes that would set the foundation of a governance framework:

How should a Canadian data standard be developed and implemented?
What organizational structure would lead to more efficient decision making?
What funding structure makes the most sense to all participants?
What is the overall direction that needs to be taken by the standards organization?

About Mortgage Industry Data Standards

This series summarizes the potential benefits and costs for the development of a mortgage data standards framework in Canada.

The first objective is to outline for the industry the potential costs and benefits of data standards. Its second is to identify processes in Canadian lending that could be improved through standards.

CMHC is committed to pursuing the development of a system of data standards. This will be done in collaboration with organizations within the mortgage-lending ecosystem in Canada.