Mortgage servicers run into data management issues all the time. The most troublesome processes typically include taking on new loans and handling transfers. Fortunately, technology is evolving and creating new ways for real estate professionals to address industry inefficiencies.
Blockchain technology presents a unique opportunity for mortgage servicers to streamline originations by packing payments, taxes, insurance, and transfers into a blockchain.
- Blockchain technology could streamline data distribution procedures
- Utilizing blockchain would reduce the potential for human error and replace manual tasks
- Blockchains ensure every exchange of data is cooperative and secure
“What if in the future, all originated loans automatically end up on a blockchain? Payments, taxes, insurance, electronic transfers — with no involvement of people?” Sapient Global Markets Director Brian Martin asked while addressing the Mortgage Bankers Association’s Servicing Conference in Dallas earlier this month.
“At this point it is entirely conceivable that the entire servicing industry could be replaced by a blockchain,” Martin said.
As technology trends toward intelligent automation, rules and descriptive analytics can be used to guide processes like foreclosures along without the need for repetitive human intervention. In other words, if servicing tasks can be distilled to purely operational over functional, then technology can replace many of the manual tasks that are costly and can ensnarl servicers in regulatory compliance issues.
What makes blockchain technology so promising for servicers is the way it facilitates efficient data management.
“The problem is not transporting the data by itself, the security or the privacy of that data, the integrity — it’s none of those things by themselves — it’s when you put all of those together, in this perfect storm of emerging technology that we have that increases the value,” explained Martin.
View the original article at National Mortgage News