Dynamic Mortgage Approval Using Blockchain Readiness Checks
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Solution Overview
Problem
The conventional mortgage loan process typically takes at least 30 days to close, causing inconvenience and frustration due to the time required for various components such as mortgage application approval, home appraisal, and title search, which can lead to failed transactions.
Innovation Solution
Utilizing blockchain technology to determine if a customer and real estate property are 'mortgage ready' by accessing and verifying information on a blockchain, including customer data and property details, to streamline the approval process and reduce closing time.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If conventional mortgage processing procedures are used, then thorough review and verification can be completed, but the closing time extends to at least 30 days
Solution Approach 1:
The system performs preliminary actions by continuously monitoring and updating customer financial information, property appraisal data, and title search results in real-time before the actual mortgage closing. This allows all verification components to be prepared in advance and made readily available when closing is initiated, eliminating the need for time-consuming manual collection and review during the closing process.
Solution Approach 2:
The patent implements continuous monitoring and updating of mortgage application components throughout the processing period. Instead of discrete batch processing, the system continuously tracks customer financial changes, property value fluctuations, and title status updates, maintaining an always-current state of all verification data that can be instantly accessed for closing decisions.
2Loss of time
If real-time monitoring and updating of mortgage application components is implemented, then closing time is reduced, but system complexity increases
Solution Approach 1:
The system employs a multi-functional platform that handles diverse mortgage processing tasks through unified mechanisms. A single system component performs continuous monitoring, data collection, verification, and updating across multiple application elements (customer finances, property appraisal, title search), eliminating the need for separate specialized systems for each function and reducing overall system complexity despite the enhanced capabilities.
Solution Approach 2:
The system implements self-service mechanisms where mortgage application components automatically update themselves through continuous monitoring of data sources. Customer financial information, property appraisal data, and title search results are automatically refreshed and validated without requiring manual intervention, reducing the operational complexity of managing real-time updates while maintaining current verification status.
Data Source
AI summary
A system and computer-implemented method for approving a dynamic mortgage application. In one aspect, the method may include determining a customer is approved for a mortgage and determining a real estate property is mortgage ready, including calculating an appraisal value for the real estate property based upon the information about the real property retrieved from a computer file or memory location/address (such as by using a machine learning or artificial intelligence algorithm). The method may still further include comparing the calculated amount the customer is approved for a mortgage loan with the calculated appraisal value of the real estate property; and approving the mortgage application of the customer for the real estate property when the calculated amount the customer is approved for the mortgage loan meets, or exceeds, the calculated appraisal value of the real estate property.