The two groups said they had agreed on a framework for the "development and deployment of transparent technology standards" for electronic mortgage transactions. Under the agreement, the independent Mortgage Industry Standards Maintenance Organization will oversee the creation and implementation of new industry standards for electronic, online mortgages, also called eMortgages. Mismo was created in January 2000 and includes MBA members, tech companies and other industry officials, including those from Fannie Mae and Freddie Mac.

"Transparent standards developed by an independent industry body are key to ensuring a level playing field in the deployment of new technologies," says MBA President Andrew D. Woodward. "[This] agreement will speed the process of bringing innovative technology to the nation's mortgage lending system while ensuring industry wide participation in designing and maintaining the standards for electronic transactions."

Under the specific terms of the agreement, Fannie Mae will support the development and adoption of transparent industry data and transaction standards through Mismo and it will also support adoption of a uniform, industry-wide security system through the Real Estate Finance Security Management Organization. Fannie Mae and MBA also pledged to work together to come up with standardized requirements for electronic mortgages, with Fannie Mae adopting the resulting standards. According to the MBA, Freddie Mac is also an active participant in the paperless-mortgage effort.

"The creation of transparent industry electronic transaction standards will allow e-mortgages to cut costs and streamline the process," says Fannie Mae vice chairman Jamie Gorelick. "We appreciate the time, energy and resources that MBA has devoted to establishing a solid framework for developing these standards and Fannie Mae strongly supports MBA's efforts."

Under the agreement, both MBA and Fannie Mae officials said because the eMortgage concept is such a new effort, both the industry and Fannie Mae can benefit from each other from teaming up to produce industry-wide guidelines.

"This agreement marks a major step toward making e-mortgages a reality in today's marketplace," says Rob Couch, chairman of the MBA technology steering committee. "

The announcement was made at MBA's National Secondary Market Conference in Orlando, FL.