Newsletter - May 2018
By now, you have almost certainly heard the words blockchain, bitcoin, or cryptocurrency. But unless you’re deeply entrenched in the world of emerging technology, you might not know much about it.
Here’s something you should know:
It could transform the mortgage industry as we know it.
Since the financial crisis of 2008, distrust has surrounded the industry thanks to the secondary mortgage market, in which thousands of loans were originated and sold — sometimes multiple times — with sloppy or nonexistent documentation.
The result? Higher mortgage costs, more expensive foreclosures, and a more complicated lending process.
Blockchain technology could provide the transparency consumers (and lawmakers) crave, as well as reduce human error and decrease costs.
How?
Without getting too technical: Blockchain is a data management structure, often referred to as a “distributed ledger,” which can be accessed and read by all users. Transfers of money are verified immediately via the blockchain, eliminating the need for a bank or another institution to act as a middleman.
Potential applications in the mortgage industry are being studied in the countries of Sweden, Georgia, and Honduras, and a small pilot program is currently underway in Burlington, Vermont.
Last month it was announced that financial services firm Ranieri Solutions has partnered with Symbiont, a platform for institutional applications of blockchain technology, to explore potential improvements to the industry.
“When Symbiont was founded, it was my dream and vision to develop decentralized technology solutions that could solve the root problems that were at the heart of the financial crisis,” said the company’s CEO, Mark Smith.
In its press release, Ranieri said: “Ranieri Solutions believes that [with Symbiont] we can implement this transformative technology to bring necessary efficiencies, transparency, and security to the mortgage markets.”
In an industry that is slowly moving toward online, paperless (or paper-light) systems, this could very well be the next step. It might be a good idea to bone up on blockchain now so you’re not left playing catch-up!
In the meantime, let Blue Streak Docs can handle your property reports and document retrieval needs to ensure you have everything you need to protect your portfolio. If you haven’t worked with us before, give us a try and get your 5th order FREE!
Employee Of The Month
“This is not the first time Mike has been Employee of the Month and I am quite sure, it is not the last. Mike is always right on top of everything whether it is to answer a question for an employee, lend a hand with a technical problem, assist a client or answer an abstractor's question. He is always pleasant and admired by both employees and management. No matter whatever is asked of Mike, he never bats an eye and does anything that is needed quickly and accurately. He is such an asset to the Titles Department and the company as a whole. We are very lucky to have him. Thanks for being the awesome star you are Mike!”