There is a new tool in the war against mortgage fraud and it involves one of the hottest technologies on today’s market.
New York City-based Block66
is now offering a new blockchain platform of the same name that is designed to leave an audit trail for lenders, thus providing a more efficient and transparent way to shrink the likelihood of mortgage fraud. According to the company, the blockchain technology acts as a hub that stores government regulations, internal guidelines provided by lenders and information on applicants and their property—the latter data provided directly from the source.
The company added that future upgrades to the platform will also use loan-based smart contracts to create tokenized securities that can be used for creating mortgage-backed lending instruments that lenders can trade on token exchanges to gain additional liquidity.
"We created Block66 to offer new opportunities for borrowers and end the time-consuming and paper-driven processes in the mortgage industry," said Joe Markham, Founder and Chief Executive Officer of Block66
. "Our platform will make it easier for everyone to find what they need so mortgages can be approved and funded faster. By storing the history of each transaction on the blockchain, we will provide a valuable audit trail for lenders, which will help mitigate mortgage fraud."