Dynamic Mortgage Approval With Blockchain Readiness Verification
Find Innovative SolutionsGenerate Solutions
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 and delayed revenue generation.
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, including customer financial data and property details, to streamline the closing process.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If conventional mortgage loan process is used, then all required components (application approval, appraisal, title search) are completed, but the closing time takes at least 30 days
Solution Approach 1:
The system performs preliminary actions by continuously monitoring and updating customer financial data, property appraisal values, and title search status on the blockchain before a formal mortgage application is submitted. This pre-processing of information allows the closing process to begin immediately when all components are ready, eliminating the 30-day waiting period while ensuring all requirements are met.
Solution Approach 2:
The blockchain system maintains continuous monitoring and updating of all mortgage-related components (customer finances, property appraisal, title search) rather than processing them in discrete sequential steps. This continuous action ensures that as soon as all components are complete, the mortgage can close immediately, preventing time loss while maintaining reliability of the closing process.
2Reliability
If traditional mortgage processing is used, then all necessary information is verified, but the process causes inconvenience and frustration for customers
Solution Approach 1:
The system enables self-service by allowing customers to continuously update their own financial information on the blockchain without manual intervention from lenders. The automated smart contracts verify and process this information in real-time, providing customers with immediate feedback and control over their mortgage application status, thereby improving convenience while maintaining verification reliability.
Solution Approach 2:
The blockchain system provides continuous feedback to customers about their mortgage readiness status by monitoring their financial data, property appraisal values, and title search progress in real-time. This transparent feedback mechanism keeps customers informed of their application status without requiring repeated manual checks, reducing frustration while ensuring all verification requirements are met.
3Reliability
If conventional mortgage processing is used, then all required components are completed, but lenders experience delayed revenue generation
Solution Approach 1:
Lenders benefit from preliminary action as the system continuously monitors and prepares all mortgage components (customer finances, property appraisal, title search) before formal application. This pre-completion of requirements allows lenders to close mortgages immediately when ready, accelerating revenue generation while ensuring all closing requirements are satisfied.
Solution Approach 2:
The continuous monitoring and updating of mortgage components on the blockchain enables lenders to maintain a pipeline of ready-to-close mortgages. This continuous action eliminates idle time between completion of requirements and actual closing, thereby accelerating revenue generation while maintaining the reliability of the closing process.
4Reliability
If standard mortgage processing is used, then all components are reviewed, but the extended time period leads to fewer successful transactions
Solution Approach 1:
The continuous monitoring of all mortgage components on the blockchain allows for immediate closing once all requirements are met, reducing the time window during which transactions can fail. This continuous action maintains thorough review of all components while minimizing exposure to risks that arise during extended processing periods, thereby increasing transaction success rates.
Solution Approach 2:
The real-time feedback mechanism continuously monitors the status of all mortgage components and immediately notifies all parties when closing requirements are satisfied. This prompt feedback enables rapid closing before market conditions or customer circumstances can change, maintaining reliable review of components while improving transaction success rates by reducing the time components are vulnerable to change.
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.