Dovetailing the real estate and banking use cases, it is not hard to imagine blockchain applications being successfully deployed in the mortgage industry, and especially the mortgage servicing space. Servicers oftentimes rely on largely obsolete operating systems but must comply with the most stringent regulatory requirements of any industry, demanding quick and accurate production of data for audits.

They also must make data-driven decisions based on the current value of real property collateral and loan status, requiring the need to pull from many different sources to take any single action. Blockchain could be utilized to bring all of this information together to make it more readily accessible.

Possibilities include the storage of loan origination and property information, payment processing, and self-executing smart contracts that can automatically determine a change in loan status. In the future, many of the servicing functions done today could be disintermediated by this technology.

Even entire business functions, like work performed by third-party closing attorneys and escrow companies, could theoretically be replaced by a peer-to-peer blockchain solution. There are already companies that have created enterprise-level blockchain solutions specific to the mortgage industry, which aim to accomplish these very things, including one announced in  March 2017 called Factom Harmony.

Blockchain technology is new, and, like any emerging technology, continues to evolve. What we all know to be true is that technology doesn’t wait for you to catch up with it. Read more from…

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