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X12 transaction guide · Finance

EDI 202 Secondary Mortgage Market Loan Delivery

The X12 document used to report mortgage loan information, such as borrower, property and underwriting data, to secondary market organizations.

Sent by
Mortgage lender
Received by
Secondary mortgage market organization or investor
Standard
ANSI ASC X12

What is an EDI 202?

The EDI 202 Secondary Mortgage Market Loan Delivery is the ANSI X12 transaction set used to report mortgage loan information, such as borrower, property and underwriting information, among mortgage lenders, mortgage service vendors and secondary mortgage market organizations.

Lenders sell many loans to investors after closing. Delivering loan data electronically lets the investor check eligibility and price the loans. The major secondary market organizations now specify their own delivery formats based on MISMO XML, so the 202 reflects an earlier generation of delivery.

How the EDI 202 worksDiagram of the EDI 202 Secondary Mortgage Market Loan Delivery. Mortgage lender sends it to secondary mortgage market organization or investor. It usually starts the exchange. It is usually followed by 203 and 997. Inside the ISA, GS and ST envelopes, X12 release 008010 requires, in the heading: BGN (Beginning Segment) and detail: the required N9 loop with N9 (Extended Reference Information) and the required DEX loop with DEX (Delivery Execution Information), REF (Reference Information) and the required NM1 loop with NM1 (Individual or Organizational Name) and the required LX loop with LX (Transaction Set Line Number). 8 optional loops are listed by their first segment.How the EDI 202 worksSecondary Mortgage Market Loan Delivery: who sends it, where it fits and what the standard marks required1 WHERE IT FITSUSUALLY FOLLOWSStarts the exchangeEDI 202SENDERMortgage lenderRECEIVERSecondary mortgagemarket organization orinvestor997 or 999 acknowledgment back, if the partners agreeUSUALLY FOLLOWED BY203Secondary MortgageMarket Investor Report997FunctionalAcknowledgment2 WHAT X12 RELEASE 008010 REQUIRESInterchange: sender and receiver IDsISA … IEAFunctional group, ID code MJGS … GETransaction set 202ST … SEHEADINGBGNBeginning Segment+ 1 optional loop, starting with:N1DETAILRequired loop N9 · repeats many timesN9Extended Reference InformationRequired loop DEX · repeats many timesDEXDelivery Execution InformationREFReference InformationRequired loop NM1 · repeats many timesNM1Individual or Organizational NameRequired loop LX · repeats many timesLXTransaction Set Line Number+ 7 optional loops, starting with:ASMIGINX1LN1CRCPAMUWIBlue box: required loop. Optional loops are listed by the segment that starts them; when a loop is used, that first segment is required. Optional segmentsoutside loops are not drawn.Structure: required segments and loops in the X12 008010 listing for the 202. Your trading partner's implementation guide adds its own requirements.
How the EDI 202 worksDiagram of the EDI 202 Secondary Mortgage Market Loan Delivery. Mortgage lender sends it to secondary mortgage market organization or investor. It usually starts the exchange. It is usually followed by 203 and 997. Inside the ISA, GS and ST envelopes, X12 release 008010 requires, in the heading: BGN (Beginning Segment) and detail: the required N9 loop with N9 (Extended Reference Information) and the required DEX loop with DEX (Delivery Execution Information), REF (Reference Information) and the required NM1 loop with NM1 (Individual or Organizational Name) and the required LX loop with LX (Transaction Set Line Number). 8 optional loops are listed by their first segment.How the EDI 202 worksSecondary Mortgage Market Loan Delivery: whosends it, where it fits and what the standardmarks required1 WHERE IT FITSUSUALLY FOLLOWSStarts the exchangeEDI 202SENDERMortgage lenderRECEIVERSecondarymortgagemarketorganization orinvestor997 or 999 acknowledgment back, if the partnersagreeUSUALLY FOLLOWED BY203Secondary Mortgage Market InvestorReport997Functional Acknowledgment2 WHAT X12 RELEASE 008010 REQUIRESInterchange: sender and receiver IDs (ISA… IEA)Functional group, ID code MJ (GS … GE)Transaction set 202 (ST … SE)HEADINGBGNBeginning Segment+ 1 optional loop, starting with:N1DETAILRequired loop N9 · repeats manytimesN9Extended ReferenceInformationRequired loop DEX · repeatsmany timesDEXDelivery ExecutionInformationREFReference InformationRequired loop NM1 ·repeats many timesNM1Individual orOrganizationalNameRequired loop LX ·repeats many timesLXTransaction SetLine Number+ 7 optional loops, starting with:ASMIGINX1LN1CRCPAMUWIBlue box: required loop. Optional loops are listedby the segment that starts them; when a loop isused, that first segment is required. Optionalsegments outside loops are not drawn.Structure: required segments and loops in the X12008010 listing for the 202. Your trading partner'simplementation guide adds its own requirements.

How to read this diagram: the top row shows who sends the 202, to whom, and which documents usually come before and after it. The lower part shows what X12 release 008010 itself requires: the envelopes around the 202 and the segments and loops the standard marks as required, area by area. Optional loops are listed by the segment that starts them rather than drawn in full. This is the standard's minimum, not a trading partner's requirement: each partner's implementation guide usually makes some optional loops mandatory, restricts the codes and may use a different release.

Expand diagram Download SVG

When it is used

  • Delivering closed loans to investors
  • Reporting loan characteristics for pricing
  • Supporting eligibility checks

Where it fits in the document flow

This document 202 Secondary Mortgage Market Loan Delivery
Usually followed by 203 Secondary Mortgage Market Investor Report997 Functional Acknowledgment

Structure

Mandatory segments in the 202 (X12 release 008010)

The segments X12 release 008010 marks as mandatory at their level, in order. Segments inside optional loops are needed only when the loop is used. This is the standard's requirement, not your trading partner's: each partner's implementation guide names the release it uses, adds the optional segments it requires and restricts the values. The requirement status comes from one published X12 reference listing and has not been checked against a second source.

  • ST
  • BGN
  • N1
  • N9
  • DEX
  • REF
  • ASM
  • NM1
  • LX
  • IGI
  • NX1
  • LN1
  • CRC
  • SCM
  • PAM
  • YNQ
  • UWI
  • SE

Practical example

The 202 in practice

A lender sells a pool of 200 closed mortgages to an investor. It delivers the loan data for each loan, with the borrower, property, loan terms and underwriting results. The investor checks each loan against its eligibility rules and purchases the eligible loans.

Implementation

Implementation considerations for the 202

  • Use the investor's current delivery specification.
  • Validate data before delivery to avoid repurchase risk.
  • Protect borrowers' personal data under applicable law.
  • Keep delivered data consistent with loan documents.

How ECOM helps

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Industry

Financial Services

Secure file transfer and B2B integration for banks and financial institutions.

Solution

Financial Document Automation

Automate invoices, remittances, payment files and bank statements from capture to posting.

Solution

EDI Integration

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