Mortgage industry has been around for quite a while, however, has not enhanced its end to end mortgage application processing times. This is because of the archaic innovation and processes still pursued by the parties associated with the mortgage food-chain. Currently, it takes an average of 40+ days from submitting a home loan application to shutting the loan and settlement of funds. Blockchain mortgages have the potential to revolutionize the mortgage industry by eliminating costs and inefficiencies in this manner improving funding time and saving a considerable amount of money that is currently charged in each step of application processing.
The typical mortgage application process The current mortgage application process is extensively paper-based, laborintensive, tedious, and costly. This is in most part because of a long queue of 3rd party service providers that all have an input to the process, for example, surveyors, solicitors, credit agencies, and title deed offices. Generally, there are seven actors/parties associated with the processing of loan application that buyers need to manage; they are depicted in the figure below. The journey of a mortgage application perseveres amid different stages adds to delays culminating in the final ownership by a consumer after 40 days.