Since information in the blockchain will not be proprietary to any one service provider, such as a lawyer or credit firm, fees for accessing information will not add to the process's costs. And if an entity goes out of business, documents can always be quickly and easily recovered.
Fremont, CA: Mortgage industry has been around for quite a while, however, has not enhanced its end to end mortgage application processing times. This is because of the archaic innovation and processes still pursued by the parties associated with the mortgage food-chain. Currently, it takes an average of 40+ days from submitting a home loan application to shutting the loan and settlement of funds.
Blockchain mortgages have the potential to revolutionize the mortgage industry by eliminating costs and inefficiencies in this manner improving funding time and saving a considerable amount of money that is currently charged in each step of application processing.
Benefits for Mortgage Lenders
Transparent Audit:To begin with, DLT is stable and, by definition, leaves a clear audit trail. Each block added to the chain is an open snapshot of a data point, limiting the possibility of information theft and exploitation. Errors can be fixed with subsequent blocks.Despite the fact that access to parts of the chain can be restricted, which addresses privacy issues, the block itself is permanent and can still be read at a later date.
Faster Verifications:Since both parties are using the same "text," each step in the process will take place more easily, freely, and with a validated point in time when changes are made.
Eliminating Documents Accumulation:Quicker verification of changes would eventually reduce the accumulation of paperwork, reducing not only the potential for mistakes to sneak into the paper trail, but also the need for long-term storage of records, both physical and digital.
Reduced Access Costs:Since information in the blockchain will not be proprietary to any one service provider, such as a lawyer or credit firm, fees for accessing information will not add to the process's costs. And if an entity goes out of business, documents can always be quickly and easily recovered.
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