{"id":1591,"date":"2021-08-10T10:00:31","date_gmt":"2021-08-10T14:00:31","guid":{"rendered":"https:\/\/www.deeds.com\/articles\/?p=1591"},"modified":"2024-04-25T23:19:28","modified_gmt":"2024-04-26T03:19:28","slug":"blockchain-and-the-mortgage-loan","status":"publish","type":"post","link":"https:\/\/www.deeds.com\/articles\/blockchain-and-the-mortgage-loan\/","title":{"rendered":"Blockchain and the Mortgage Loan"},"content":{"rendered":"\n<div class=\"wp-block-image\"><figure class=\"alignright is-resized\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.deeds.com\/articles\/wp-content\/uploads\/2021\/08\/blockchain-and-the-mortgage-loan.jpg\" alt=\"Image of a modern looking modular building. Captioned: Blockchain and the Mortgage Loan\" class=\"wp-image-1595\" width=\"403\" height=\"388\" srcset=\"https:\/\/www.deeds.com\/articles\/wp-content\/uploads\/2021\/08\/blockchain-and-the-mortgage-loan.jpg 537w, https:\/\/www.deeds.com\/articles\/wp-content\/uploads\/2021\/08\/blockchain-and-the-mortgage-loan-300x289.jpg 300w\" sizes=\"auto, (max-width: 403px) 100vw, 403px\" \/><\/figure><\/div>\n\n\n\n<p>In debates over a 2021 infrastructure bill, blockchain tax is contested ground. Cryptocurrency proponents are keen on keeping the crypto mining and development communities in the United States. Heavy regulations and taxes could run the risk of tossing the baby out with the bathwater, they warn. Overbroad taxation could <a href=\"https:\/\/www.theverge.com\/2021\/8\/6\/22612663\/infrastructure-bitcoin-tax-blockchain-proof-of-work-stake-ethereum\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">suppress the evolving blockchain technology<\/a> that supports smart contracts.<\/p>\n\n\n\n<p>The issue matters to the world of titles and mortgages.\nHere, we note some evolving use cases for blockchain \u2014 especially in the mortgage\nsphere.<\/p>\n\n\n\n<!--more-->\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Keeping Track of Mortgage Loans and Servicing Rights <\/strong><\/h2>\n\n\n\n<p>Mortgages \u2014 especially from big banks \u2014 are constantly resold on the secondary market. These deals may be common practice, but they can have big pitfalls. Underwriting the same debt repeatedly can create tangled information trails. And people have lost their homes because of failures to track mortgage debt transfers. This is why <a href=\"https:\/\/www.mersinc.org\/products-services\/mers-system\/faq\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">registration systems now track the selling of mortgage debt<\/a>. <\/p>\n\n\n\n<p>What if mortgages were etched on the blockchain as a normal\npractice? Proponents say the problems with tracking loan transfers would be\nsolved \u2014 for investors in debt, and for borrowers.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Stepping Up the Prevention of Wire Fraud<\/strong><\/h2>\n\n\n\n<p>Of course, a buyer wants to open&nbsp;<a href=\"https:\/\/www.alta.org\/news\/news.cfm?20210224-Homebuyers-Life-Savings-Stolen-in-Wire-Fraud-but-Recovered-for-Timely-Closing\" target=\"_blank\" rel=\"noreferrer noopener\">an email from the title company<\/a> and read the instructions\nfor wiring the money to close on a home. Sophisticated scams are issuing\ninstructions that match previous agreements between buyers and their mortgage\nand title consultants. Buyers are quick to follow the instructions in the rush\nto closing. Closing funds diverted to scam accounts are not easily regained.<\/p>\n\n\n\n<p>Wire fraud attempts now show up in a third of all home and\nmortgage transactions.&nbsp;And <a href=\"https:\/\/www.deeds.com\/articles\/fraud-update-closing-scams-now-make-up-nearly-half-of-cybercrime-losses\/\">closing\nscams<\/a> now account for half the monetary losses from cybercrime.<\/p>\n\n\n\n<p>Could blockchain technology install foolproof authentication\nand fraud detection? If so, it could relieve a major pain point for title\ncompanies. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Gearing Up to Simplify Mortgage Shopping<\/strong><\/h2>\n\n\n\n<p>Borrowers can now choose from several data-encrypted, blockchain-based\nplatforms to shop for title insurance, apply for loans, make and track payments\nsecurely, and work with providers through smart contracts. Smart contracts are real-time\nagreements that verify and record transactions without banks.<\/p>\n\n\n\n<p>Consider these innovators:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Radian<\/strong><\/h3>\n\n\n\n<p>The American Land Title Association (ALTA) points to <strong>Radian<\/strong>,\nwith its direct-to-consumer title insurance and closing services. In Florida, <strong>Titlegenius<\/strong>\noffers a Radian portal through which shoppers use a suite of tools including\nremote document notarization and check capture. ALTA calls Radian \u201ca\ntransparent and secure way to order.\u201d <\/p>\n\n\n\n<p>Radian is also in the business of reviewing title commitments, spotting issues in the chain of title, and <a href=\"https:\/\/careers.radian.com\/us\/en\/job\/R20210472\/Curative-Title-Specialist-Nationwide-Remote-2\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">curing title defects<\/a>. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Unchained Capital<\/strong><\/h3>\n\n\n\n<p>Unchained Capital&nbsp;lends money to people with established bitcoin accounts using secure, private keys. The company says <a href=\"https:\/\/www.benzinga.com\/pressreleases\/21\/03\/n19947307\/unchained-capital-closes-5-5m-round-led-by-nydig-including-50m-lending-capital-commitment\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">its mission<\/a> is to make sure \u201ceveryone can secure and maximize the value of their bitcoin holdings over multiple generations.\u201d<\/p>\n\n\n\n<p>Customers take out bitcoin-secured loans for three to 36 months, at rates ranging from 11% to 14%. The company promises \u201c<a href=\"https:\/\/unchained-capital.com\/loans\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">loans up to $1,000,000 approved within the same week<\/a>\u201d for real estate purchases, small business needs, or personal use. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Figure<\/strong><\/h3>\n\n\n\n<p><a rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\" href=\"https:\/\/www.figure.com\/\" target=\"_blank\">Figure<\/a>&nbsp;offers <a href=\"https:\/\/provenance.io\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">Provenance blockchain<\/a>-based refinancing. The borrower still needs an approved credit profile, appraisals and loan documents, and must pay fees for settlement and recording \u2014 so intermediaries are not replaced. <\/p>\n\n\n\n<p>Yet customers take charge of their applications remotely,\nand can lock in rates day or night. Remote online notarization of documents\nhelps to provide approvals \u201cin minutes rather than days.\u201d Artificial\nintelligence assists in pre-qualifying borrowers for credit lines. Mortgages\nfor home purchases are coming soon. <\/p>\n\n\n\n<p>\u261b <strong><em>The\nCovid-19 pandemic galvanized the real estate industry to adopt remote\ntechnologies.&nbsp;<a href=\"https:\/\/www.deeds.com\/articles\/modernizing-an-archaic-notary-system-for-real-estate-documents\/\">Learn more here about three key technologies:\neRecording, eNotarization, and Remote Online Notarization.<\/a><\/em><\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Creating Customer Advantages With Blockchain-Based Data Storage<\/strong><\/h2>\n\n\n\n<p>Privacy controls in blockchain transactions can benefit\ncustomers in several additional ways. Keeping data on the blockchain can stop\ncompanies from harvesting leads from our personal financial data. Blockchain\ntechnology can also cut out processing fees and shorten the waits for loan\napprovals from weeks to days, or even minutes.<\/p>\n\n\n\n<p>As the above-listed companies show, blockchain credit and\nmortgage lending is already here. Blockchain\u2019s integration into county\nauditors\u2019 and recorders\u2019 offices is still mostly an aspiration. Yet pilot\nprojects have shown its potential throughout the title conveyance process. <\/p>\n\n\n\n<p><strong><em>\u261b<\/em><\/strong><strong><em> Interested in\nblockchain\u2019s potential in deed recording? Learn more at <a href=\"https:\/\/www.deeds.com\/articles\/the-real-estate-deal-decluttered-blockchain-and-deed-recording\/\">The Real Estate Deal, Decluttered: Blockchain and\nDeed Recording<\/a>.<\/em><\/strong><\/p>\n\n\n\n<p><strong>Supporting References<\/strong><\/p>\n\n\n\n<p class=\"has-small-font-size\">ALTA Title News: <a href=\"https:\/\/www.alta.org\/news\/news.cfm?20210615-Radian-Unveils-New-Portal-to-Aid-Purchase-Title-Insurance-Closing-Services\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">Radian Unveils New Portal to Aid Purchase Title Insurance, Closing Services<\/a> (Jun. 15, 2021).<\/p>\n\n\n\n<p class=\"has-small-font-size\">Michael Nabati for <em>HackerNoon.com:<\/em> <a href=\"https:\/\/hackernoon.com\/blockchain-as-a-replacement-to-the-mers-mortgage-electronic-registration-system-7acx30mj\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">Blockchain as a Replacement to The MERS (Mortgage Electronic Registration System)<\/a> (Aug. 9, 2019). <\/p>\n\n\n\n<p class=\"has-small-font-size\">Neil Patel:&nbsp;<a href=\"https:\/\/neilpatel.com\/blog\/blockchain-marketing\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">How to Use Blockchain in Marketing Data Security<\/a> (undated).<\/p>\n\n\n\n<p class=\"has-small-font-size\">Victor Liu for <em>The View From 10,000 Feet<\/em>: The Clear Skies Title Agency Newsletter: <a href=\"https:\/\/www.clearskiestitle.com\/wp-content\/uploads\/2021\/06\/July-2021-Newsletter.pdf\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">The Impact of Blockchain on Real Estate<\/a> (Jul. 2021). <\/p>\n\n\n\n<p class=\"has-small-font-size\">Nexval: <a href=\"https:\/\/nexval.com\/blockchain-technology-the-mortgage-industry\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">Blockchain Technology &amp; The Mortgage Industry<\/a> (undated).<\/p>\n\n\n\n<p class=\"has-small-font-size\">Sam Daley for <em>BuiltIn.com<\/em>: <a rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\" href=\"https:\/\/builtin.com\/blockchain\/lending-loans-borrowing-mortgages\" target=\"_blank\">Buy Your Dream Home With a Blockchain Mortgage: 11 Companies Using DLT for Lending and Credit<\/a> (updated May 9, 2021).<\/p>\n\n\n\n<p class=\"has-small-font-size\">Photo credit: <a href=\"https:\/\/pixabay.com\/photos\/apartment-architecture-building-2179337\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">Pexels<\/a>, via Pixabay <\/p>\n","protected":false},"excerpt":{"rendered":"<p>In debates over a 2021 infrastructure bill, blockchain tax is contested ground. Cryptocurrency proponents are keen on keeping the crypto mining and development communities in the United States. Heavy regulations and taxes could run the risk of tossing the baby out with the bathwater, they warn. Overbroad taxation could suppress the evolving blockchain technology that [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[85],"tags":[],"class_list":["post-1591","post","type-post","status-publish","format-standard","hentry","category-blockchain"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Blockchain and the Mortgage Loan - Deeds.com<\/title>\n<meta name=\"description\" content=\"In debates over a 2021 infrastructure bill, blockchain tax is contested ground. 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