If there’s an industry that cries out for the efficiencies and data integrity that blockchain tech promises, it’s undoubtedly the US residential mortgage business.
First off, there’s the size of the business. At last count, according to the Federal Reserve, there were about $10tn-worth of residential mortgages outstanding, with about $2tn in new loans being originated in a good year.
Then, there’s the amount of data – most of it sensitive – that goes into and supports every loan.
“A mortgage application requires hundreds of documents and very sensitive data,” Leo Loomie, senior vice president of client services at Digital Risk LLC, a mortgage processing provider, told CoinDesk. “W-2s, income statements, asset statements, bank statements, Social Security numbers – and all of that has to change hands numerous times over a variety of channels: fax, email, mobile phone.”
Mortgages are complex financial instruments, agrees Jason Nadeau, executive vice president at blockchain startup Factom, writing in a recent issue of MReport, a mortgage industry publication.
“To process a mortgage from start to finish, you’re looking at many documents, all with multiple versions, created by multiple parties and multiple entities editing and revising. Combined, that
Read more ... source: CoinDesk
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