Skip to content
site logo Canada Mortgage
and Housing Corporation
  • Sign In or Register
  • FRANÇAIS
  • Hamburger Icon MENU
Hamburger Icon MENU
× FRANÇAIS
  • Home
  • Buying
    • Homebuying Step by Step
      • Decide if Homeownership is Right for You
      • Check if You are Financially Ready to Own a Home
      • Finance Your Home
      • Find the Right Home
      • Make an Offer and Close the Deal
      • Maintain Your Home and Protect Your Investment
    • Condominium Buyer's Guide
      • Chapter 1: Condominium Basics
      • Chapter 2: Condominium Governance
      • Chapter 3: The Pros and Cons of Condominium Ownership
      • Chapter 4: Buying a Condominium
      • Chapter 5: Checklists, Tips and FAQ's
      • Tips for Buying a New Condominium
      • Tips for Buying a Resale Condominium
      • Checklist for Buying a New Condominium
      • Checklist for Buying a Resale Condominium
      • Condominium Purchase and Recurring Costs
      • Physical Evaluation Checklist (For Resale Units)
      • Questions to Ask Advisors and Condominium Experts
      • Frequently Asked Questions
      • Glossary
      • Provincial and Territorial Fact Sheets
        • Alberta Fact Sheet
        • British Columbia Fact Sheet
        • Manitoba Fact Sheet
        • New Brunswick Fact Sheet
        • Newfoundland and Labrador Fact Sheet
        • Northwest Territories Fact Sheet
        • Nova Scotia Fact Sheet
        • Nunavut Fact Sheet
        • Ontario Fact Sheet
        • Prince Edward Island Fact Sheet
        • Quebec Fact Sheet
        • Saskatchewan Fact Sheet
        • Yukon Fact Sheet
    • Financial Information and Calculators
      • Mortgage Fraud
      • Mortgage Planning Tips
      • Plan and Manage Your Mortgage
      • Your Credit Report
      • Government of Canada Programs to Support Homebuyers
      • Your Home Value
    • Seniors Housing
      • Housing options for Seniors
      • Housing and Finance Tips
      • Mortgage Financing Options for People 55+
      • Preventing Fraud and Financial Abuse
    • Newcomers
    • Mortgage Loan Insurance for Consumers
      • COVID-19: Understanding Mortgage Payment Deferral
      • What is CMHC Mortgage Loan Insurance?
      • What are the General Requirements to Qualify for Homeowner Mortgage Loan Insurance?
      • FAQs — Mortgage Loan Insurance
      • CMHC Mortgage Loan Insurance Costs
      • CMHC Green Home
      • CMHC — Home Renovation Financing Options
  • National Housing Strategy
    • What is the strategy?
      • About the initiatives
      • How to apply
      • Help & Resources
      • Priority areas for action
      • Glossary
    • The First-Time Home Buyer Incentive
    • Shared Equity Mortgage Provider Fund
      • Preconstruction Loans
        Stream 1
      • Shared Equity Mortgages (SEM)
        Stream 2
    • Federal/Provincial/Territorial Housing Agreements
    • Federal Community Housing Initiative
    • Federal Lands Initiative
    • National Housing Co-Investment Fund
    • Rental Construction Financing
    • Affordable Housing Innovation Fund
    • Other funding and financing opportunities
    • The Community Housing Transformation Centre
    • Community-Based Tenant Initiative
    • NHS Demonstrations Initiative
    • Solutions Labs
      • Social Innovation Labs Resources
      • Solution Lab Consultant Information
    • Collaborative Housing Research Network
    • NHS Research and Planning Fund
    • CMHC Housing Research Scholarship Program
    • CMHC Housing Research Awards
    • Housing Supply Challenge
      • Round 1: Housing Supply Challenge
    • Rapid Housing Initiative
      • Rapid Housing Initiative Webinar
    • National Housing Conference
    • NHS Housing Needs Data
    • College of Reviewers
  • Renting
    • COVID-19: Eviction Bans and Suspensions to Support Renters
    • COVID-19: CECRA for small businesses
    • I Want to Rent
      • Things to Consider Before Renting
      • Types of Housing for Rent in Canada
      • Finding or Advertising a Rental Property
      • Visiting the Rental Property
      • Lease and Rental Agreements
      • Signing the Lease
      • Credit Checks and Bad Credit
      • Rental Payments and Deposits
      • Roommates and Pets
    • I Am Renting
      • Moving Day
      • Landlord/Tenant Responsibilities
      • Inspections
      • Maintenance & repairs
      • Complaints & evictions
      • Rent Increase
      • When you can't pay Rent
      • Renewing or terminating the lease
      • Moving Out
  • Developing and Renovating
    • Funding Opportunities
      • First Nations Development Funding
        • Direct Lending Program for First Nation Communities
        • Funding Opportunities Tool for Indigenous Housing
        • Insured Loans for On-Reserve First Nation Housing
        • On-Reserve Non Profit Housing Program (Section 95)
        • Proposal Development Funding (PDF) for First Nation Communities
      • On-Reserve Renovation Programs
        • Emergency Repair Program (ERP)
        • Home Adaptations for Seniors' Independence (HASI)
        • Residential Rehabilitation Assistance Program (RRAP) – Regular
        • Shelter Enhancement Program (SEP)
      • Seed Funding
      • Preservation Funding for Community Housing
      • COVID-19: Loan Payment Deferrals for Indigenous Clients
    • Testimonials
    • Develop New Affordable Housing
      • Manufactured Housing: Affordable Quality Homes
      • Programs and Information
        • About Affordable Housing in Canada
        • Affordable Housing in Canada's North
        • Affordable Housing Programs Across Canada
        • Reno/Retro 2016: Funding for Existing Social Housing
        • Housing Action Plans: A Guide for Municipalities
        • Development Checklist for Affordable Housing
        • Housing Development Resources
    • Indigenous Housing
      • Housing Internship Initiative for First Nation and Inuit Youth (HIIFNIY)
      • Indigenous Advisory Council
      • Our Work With First Nation Communities
      • Shelters Initiative for Indigenous Women and Children
        • Funding Available for Shelters On-Reserve
        • Shelters in the Territories
      • Keeper of My Home Learning Resource
    • Developing Sustainable Housing
      • Maintenance and Resource Efficiency for Buildings
      • Webcast: Advancing Sustainable and Affordable Housing in Canada
      • Energy and Water Savings Case Studies
    • Accessible and Adaptable Housing
      • Universal Design for New Housing Units
      • Secondary Suites
      • Accessible Housing by Design
      • Aging in Place
        • Aging in Place Success Stories
        • Housing a Senior Population: The Economic and Social Benefits
        • Hiring a Contractor
      • Universal Design and Adaptable Housing Models
    • Provincial/Territorial Agreements
      • Bilateral IAH Agreements and Public Reporting
      • National IAH Funding Table
      • Investment in Affordable Housing (IAH)
    • External Links
  • CMHC Library
  • Managing and Maintaining
    • Managing Affordable Housing
      • Connect with a Housing Solutions Specialist – Multi-Unit
      • Affordable Housing Project Profiles
      • Housing Management Hub
        • Contractors and Suppliers
        • Evictions and Expulsions
        • Capital Replacement Planning
        • Governance for Housing Organizations
        • Steps for Managing Vacancies
          • Repair and clean the unit
          • Identify or Advertise for Applicants
          • Welcome new residents
        • Policy Information
          • Why are policies important
          • Policy Enforcement
          • Policies Your Housing Organization Needs
          • Developing Effective Policies
        • Tendering Contracts
    • Manage First Nation Properties
      • First Nation Housing Policies Development Guide
        • Decide if You Need a Written Policy
        • Research the Housing Policy
        • Write and Review the Housing Policy
        • Develop the Housing Policy Implementation Plan
        • Get Approval for the Housing Policy
        • Implement and Monitor the Housing Policy
        • Revise or Cancel the Policy as Required
      • Tenant Records
      • Building Code Compliance for First Nation Housing
      • Finances
        • Differences Between the On-Reserve Non-Profit Housing Program Pre-1997 and Post-1996
        • Understanding Operating Agreement Terms
      • Maintenance Solutions
        • How to Maintain a Heat Recovery Ventilator
        • Maintenance Planning Guide for First Nation Communities
        • Mould in Housing
          • Information for Occupants
          • Information for Housing Managers
          • Information for Builders and Renovators
          • Flood Cleanup and Mould Prevention
          • Mould Cleanup at a Glance: Infographic
          • Mould in Housing at Glance
      • Role of a First Nation Housing Manager
    • Maintenance Funding and Information
      • Governance and Finance Information Series
      • Loans Administration and Direct Lending
      • Off-Reserve Aboriginal Social Housing
      • Renovation Programs for On-Reserve Housing
      • Tendering Contracts Information Series
    • Co-operative Housing Guide
  • Data and Research
    • CMHC Reports Calendar
    • Publications and Reports
    • Housing Market Information Portal
    • Data Tables
      • Household Characteristics
      • Housing Market Data
      • Housing Market Indicators
      • Mortgage and Debt Data
      • Rental Market Data
    • Housing in Canada Online (HiCO)
    • Core Housing Need
    • Survey Notices
    • CMHC Library
    • Consumer Surveys
      • 2019 Mortgage Consumer Survey Results
      • 2018 Mortgage Consumer Survey Results
        • Homebuyers insights
        • Renewers insights
        • Refinancers insights
        • Financial Literacy
        • Affordability
        • Home financing choices
        • MCS blog
    • Survey Methods
    • CMHC Licence Agreement for the Use of Data
  • Finance and Investing
    • Insured Mortgage Purchase Program (IMPP)
    • COVID-19: CECRA for small businesses
    • Mortgage Loan Insurance
      • Mortgage Loan Insurance Homeownership Programs
        • CMHC Mortgage Loan Insurance Costs
      • Rental Housing Solutions
      • Contact Mortgage Loan Insurance
      • Homebuying Calculators
        • Mortgage Calculator
        • Affordability Calculator
        • Debt Service Calculator
      • The Resource
        • I Can’t Pay my Mortgage, What are my Options?
        • Home Buying Step by Step
      • Default, Claims and Properties for Sale
      • Mortgage Fraud
      • Underwriting Centre
      • Consumer Survey Results
      • NHA Approved Lenders
      • Calculating GDS / TDS
      • emili
        • emiliTRACKER
      • Client e-Update
      • Multi-Unit e-Update
      • Regional CMHC Industry Sessions
    • Canada Mortgage Bonds
    • NHA Mortgage Backed Securities
    • Canadian Registered Covered Bonds
      • How to Become a Registered Issuer
    • Blockchain in the housing industry
  • CMHC E-Newsletters
    • Affordable Housing E-newsletter
    • Housing Research E-newsletter
    • Indigenous and Northern Housing E-newsletter
    • Client e-Update
    • Multi-Unit e-Update
  • Careers
  • About CMHC
    • CMHC’s Story
    • Management and Governance
      • Board of Directors and Committees
      • Our Management Committee
      • Pension Governance
        • Pension Overview
        • Key Roles and Responsibilities
        • Annual Reports
    • Corporate Reporting
      • CMHC Annual Report
      • Program Evaluation
      • Joint Auditors Special Examination Report to CMHC Board 2018
      • Summary of the Corporate Plan
      • Quarterly Financial Reports
      • Transparency
        • Access to Information and Privacy Protection
        • Briefing Materials
        • Procurement
          • CETA
          • Disclosure of contracts over $10,000
        • Travel, hospitality and conference expenditures
          • Annual travel, hospitality and conference expenditures
      • CMHC’s Insured Mortgage Deferral
    • Contact Us
      • CMHC Departments
        • Connect with a Housing Solutions Specialist – Multi-Unit
        • Contact Mortgage Loan Insurance
      • Holiday Service Hours
    • Speakers Bureau
    • Careers
    • Partnerships
  • Housing Observer
  • Media Newsroom
    • Coronavirus (COVID-19) Update
    • Media Relations
 
  • Home Breadcrumb Chevron
  • Housing Observer

Mortgage Data Standards Could Lead To $4B in Annual Savings

October 14, 2020

Save page to My Folder Share this page
Save Icon

SAVE TO MY FOLDER

Mortgage Data Standards Could Lead To $4B in Annual Savings

SAVE
Close this Window   |   Manage my Folder
Save Icon

SAVE TO MY FOLDER

Mortgage Data Standards Could Lead To $4B in Annual Savings

Done Done!
Close this Window   |   Manage my Folder
Share icon

Share via

  • Facebook
  • LinkedIn
  • Mail
  • Twitter
  • print
Share icon

Share via

  • Facebook
  • LinkedIn
  • Mail
  • Twitter
  • print
share icon

Mail-blue Share via Email

Did You Know?

You can include an email signature?

Register | Sign In

×
Google Captcha Loader
share icon

Mail-blue Share via Email

Done Done!
Close this window

The Mortgage Industry Data Standards publication has been released. It explores the potential impact of introducing a system of data standards to the Canadian mortgage industry. These results come from findings from various reports commissioned by CMHC and other sources.

One major benefit explored in the publication is the potential of creating operational efficiencies of at least $4 billion a year.

$4 billion in potential annual savings

Uniform data standards simplify data management, which is an important part of the mortgage lending process. Using data standards can result in ongoing cost reductions for organizations in the mortgage industry. While there are costs in implementing uniform data standards, the cost-benefit analysis estimated $4 billion in potential annual savings across the Canadian industry.

These savings come from three main benefits:

  • Reduced staff time by lenders due to higher-quality data: by 81 hours less per loan over the life of the mortgage
  • Reduced loan processing times: by 2.9 days
  • Fewer custom IT interfaces: by up to $1 million saved per year, per firm

These three savings are from the cost-benefit analysis based on the U.S. experience with the MISMO data standards at US$25 billion. That would be the equivalent of $4 billion per year in annual savings across the Canadian mortgage industry (see table 1).

Additional costs savings were identified but could not be accurately estimated. However, these benefits could be as significant as the three quantified benefits.

Table 1. Estimated potential cost savings in Canadian mortgage lending processes
Benefit category Annual benefit to Canadian industry
Reduced required staff time by lenders due to higher-quality data $3.2 billion
Reduced loan processing times $906 million
Fewer custom IT interfaces $19 million
Reduced hedging costs Unquantified
Reduced post-closing costs Unquantified
Reduced development costs for technology providers Unquantified

 Transitional costs will vary by organization

This study also looked into the potential costs of aligning to a reference model. In the United States, the cost of updating an existing data structure to align with the standards vary.

Costs will depend on the:

  • size of the organization
  • complexity of the legacy data system
  • degree of difference between their legacy data structure and the standards structure
  • speed of the transition

Based on experiences in other countries in firms of all types, the benefits outweigh the costs. All transition costs can be recouped within 5-years for all firms.

About Mortgage Industry Data Standards

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

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

Data standards in the mortgage industry are a common reference model developed by and for mortgage industry participants. They include commonly agreed upon definitions, relationships and processes and can be used as guidelines in:

  • data models
  • data exchanges
  • forms
  • business operations

Data standards are a proven solution in other countries such as the USA and Australia. This solution could help alleviate common challenges facing organizations involved in mortgage lending in Canada.

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

Learn about the benefits of data standards

Related Links:

  • Study of the Benefits of Mortgage Data Standards
  • CMHC to MISMO Mapping Results Analysis Including Partner Firms
  • Potential Macroeconomic Implications and Benefits of Improving Mortgage Data Consistency and Disclosure 
  • Housing Research newsletter

Was this page relevant to your needs?

Thank you for your feedback!

Sorry to hear that! Can you tell us about the problem?

For further assistance, pleasecontact us

ThanksYour feedback has been submitted.

Discover related content using the tags below:

  • Mortgage Data
  • Housing Finance
  • Statistics and Data
Date Published: October 14, 2020
By Topic
  • Coronavirus (COVID-19) Updates
  • National Housing Strategy
  • Buying
  • Rental Housing
  • Developing and Renovating
  • Managing and Maintaining
  • Data and Research
  • Finance and Investing
About Us
  • CMHC's Story
  • Management and Governance
  • Partnerships
  • Corporate Reporting
  • Contact Us
  • Careers
More
  • CMHC e-Newsletters
  • CMHC Library
  • Housing Observer Online
  • Media Newsroom
  • CMHC on Twitter
  • CMHC on LinkedIn
  • CMHC on Facebook
  • CMHC on Instagram
  • CMHC on YouTube
Privacy Policy    |    Terms and Conditions    |    Transparency     Canada Mortgage and Housing Corporation (CMHC) ©2021 
Canada
loader icon

 Monitor our most recent coronavirus (COVID-19) updates.