Top 5 ways Real Estate can benefit from Blockchain Technology.
Let me share with you Top 5 ways Real Estate can benefit from Blockchain Technology and how my Company can help yours:
1. Speed to close the loan.
Did you know that based on the latest MBA report it took 45 days on average to originate the loan? This is still a slow process requiring credit score and income verification, title search, document preparation, locking rate and ordering payoffs from lien holders.
Blockchain can enable a closer to have all of the data ready and secured at the time of transaction in the ledger to issue a smart contract in minutes.
2. Cost to Produce a Loan.
Based, on the MBA data the cost to originate a loan in Q1'2023 reached record high $13,171 per loan. With high inflation FTE salaries are up, origination and post origination QC cost is up, software subscriptions and contactor costs are up. Blockchain can drastically reduce the cost with pre-populated data for the property and the borrower based on the prior transaction, as reuse factor would contribute to the speed.
3. Production volume:
With speed and low costs, lenders can now generate high volumes of loans. In fact, one of the first blockchain enabled company, Figure Technologies, enabled lenders to originate over $6 billion in HELOCs mortgages.
4. Accuracy. Block chain ledger would maintain up-to-date information on Property and Borrower and therefore will not require human labor on maintenance of the contract. Utilizing multiple sources of current data such as employment data, FICO scores, prop Values, UPB, loan status can give timely triggers to contact holders to act on a change.
5. Transparency and Fraud Protection. One of the great benefits of block chain is loan and property level data for International investors. You don't have to travel to US to look at the property or sign a document with the borrower. Smart contract on the block chain can give investors opportunities to invest into US real estate as a bond or a security, rather then a real property. Since borrowers and lenders get a security key for the encrypted blockchain, the data becomes very safe and hidden from outside parties.
In real estate transactions on the block chain, the post origination documents on the block chain should be also recorded at the recorder's office. Our Company DocSolutionUSA
had created a QR code for the block chain as a part of the recorded document to correlate block chain to recording document chain.
Please reach out directly to our dedicated Team of professionals to obtain the demo and or have any blockchain related questions answered.
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