Blockchain Mortgage-Ready Data Updating for Faster Closing Verification
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Solution Overview
Problem
The conventional mortgage loan process typically takes at least 30 days to close, causing inconvenience and frustration for all parties involved, and there is a need for a faster closing process to reduce issues during this period.
Innovation Solution
A computer-implemented method using blockchain technology to determine if a customer and real estate property are 'mortgage ready' by accessing and verifying information on a blockchain, calculating approval amounts, and streamlining the closing process.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If conventional mortgage processing procedures are used, then thorough review and verification of all required items can be completed, but the closing process takes at least 30 days causing inconvenience and frustration
Solution Approach 1:
The system performs preliminary actions by continuously monitoring and updating mortgage application data in real-time before closing is needed. Customer financial information, property appraisal data, title search results, and insurance documentation are proactively collected, verified, and stored in the blockchain, so that when closing is initiated, all verification is already complete or can be instantly confirmed.
Solution Approach 2:
The blockchain acts as an intermediary layer that connects and coordinates all parties involved in the mortgage process (lenders, appraisers, title companies, insurance providers, and customers). It provides a shared, immutable ledger that all parties can access and update, eliminating the need for lengthy back-and-forth verification and reducing coordination delays.
2Loss of time
If real-time monitoring and continuous updating of mortgage data is implemented, then closing time can be reduced, but system complexity increases
Solution Approach 1:
The blockchain system serves multiple functions simultaneously: it stores customer information, tracks property appraisal data, records title search results, manages insurance documentation, and coordinates communication between all parties. This multi-functional platform reduces the need for separate systems for each function, actually simplifying the overall architecture despite the advanced capabilities.
Solution Approach 2:
The system enables self-service capabilities where customers can upload and update their own financial documents, appraisers can directly input appraisal data, and title companies can record search results on the blockchain without manual intervention. This automation reduces processing time and minimizes the need for complex manual coordination procedures.
Data Source
AI summary
A system and computer-implemented method of continuously updating information about one or more of a customer approved for a mortgage and a real estate property identified as mortgage ready. The method includes monitoring information accessed from a memory storage location corresponding to a customer identification number, the information used to determine the customer is approved for a mortgage, and receiving new information about the customer, the new information used to determine the customer is approved for a mortgage. The method also includes updating, at a memory coupled to the one or more processors, the memory storage location to include the new information. The method still further includes recalculating the amount in which the customer is approved for a mortgage based upon the new information received.