Quicker verification of changes will eventually reduce the accumulation of documentation, not only limiting the opportunity for errors to invade the paper trail but also limiting the requirement for long-term storage of documents, both digital and physical.
Fremont, CA: The present mortgage lending process is well-rounded. It is also time-taking and involves a series of third parties to confirm documentation. And each step of the process adds expense and time.
Distributed ledger technology (DLT) has immense potential in streamlining and providing better security for mortgage lending. Eventually, the extensive adoption of DLT by lenders could minimize costs substantially while providing secure transaction records as well as computer-age settlement times.
Some of the important benefits for mortgage lenders:
• Transparent Audit Trail: To begin with, DLT is secure and offers a transparent audit trail. Each block that is attached to the chain is an open snapshot of a data point, which limits the opportunity for fraud and also manipulation of information. Mistakes can be rectified with subsequent blocks. Although access to sections of the chain can be curbed, which meets privacy concerns, the block itself is permanent and can be read later always.
• Faster Verifications: Because all parties utilize the same “document,” each step in the process can take place more openly and quickly as well as with a verified moment in time when changes are carried out.
• Decrease in Documents Accumulation: Quicker verification of changes will eventually reduce the accumulation of documentation, limiting the opportunity for errors to invade the paper trail and also limiting the requirement for long-term storage of documents, both digital and physical.
• Low Access Costs: Information in the blockchain will not be owned by any single service provider, like a lawyer or credit agency, and hence, fees for accessing information will not add costs to the process.
