Blockchain benefits the mortgage market

Moody’s, the investor research service and voice of international credit ratings, has published a report stating that the blockchain technology could cut costs in the mortgage market, according to an article in Coindesk.

The in-depth report claims that the technology could have a significant impact on the U.S. housing market and that it represents a considerable opportunity to streamline the mortgage process.

It cites examples of how the blockchain could do this: it could improve the monitoring of loan performance, increase transparency and allow “mortgage insurers to transfer discrete mortgage credit risks to reinsurers and other alternative capital providers on a cost-effective basis.”

Some of the biggest cost savings could be made in the title searches and transactions process, and Moody’s believes it could cut the amount spent by as much as 10-0 percent, equivalent to a saving of between $840 million and $1.7 billion annually.

Whilst the report is upbeat about the role of the blockchain in the mortgage industry, it also offers some words of caution regarding processing times in the existing blockchain networks. It says: “One of blockchain’s current limitations is the small number of transactions that can be processed within a period of time, based on the restricted size of the blocks and the high costs of using the technology.”

There are also regulatory concerns to take into account, but as a guide to what is possible in the future, Moody’s report signals a growing insight into and acknowledgement of the blockchain’s potential by mainstream organisations and companies.

Lendo looks to a future in blockchain mortgages

Lendo is also looking at this massive area of the lending market. Mortgage lending is a logical extension of the personal loan market. The UK mortgage market stands at around £1.3 trillion so clearly even a tiny market share would represent a considerable boost to any lender.

Profit from ELT tokens now!

Lendo’s pre-ICO is selling out fast. ELT tokens are still at the lowest ever price of €0.10 until 28th April. Once the ICO launches after that date, the price will rise to €0.20 and by increments to €2 as the tranches of tokens sell out. Get your ELT today at lendo.io.

As an ELT owner you’ll be able to get a speedy personal loan via Lendo once the lending platform launches, and in the future you may also be able to get a mortgage. A new player in the mortgage market is good for consumer choice – as a member of the Lendo community you can help make this happen.

 




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