Want to be seen in
Get started today!
Editorial calendar and guidelines: ScotsmanGuide.com/Write
Upcoming Submission Deadlines
Issue Date: December 2018
Focus: Construction and Development*
Article-Submission Deadline: October 7
Spotlight State: New York
Issue Date: January 2019
Focus: Hard Money*
Article-Submission Deadline: November 7
Spotlight State: New Jersey
Issue Date: February 2019
Article-Submission Deadline: December 6
Spotlight State: Georgia
*We accept articles on any relevant topic for any issue, regardless of that issue’s focus.
where loans are transferred regularly to investors, as
is the case in peer-to-peer lending, blockchain offers
secure chain-of-custody and ownership proof of electronic documents. Other potential uses also are being
n n n
The mortgage industry is just scraping the surface
on how blockchain, AI and other technologies can be
used to revolutionize the mortgage industry. In just
the past five years, we’ve seen tremendous strides.
More innovation and adoption will take time, but this
is the direction the industry is headed.
Blockchain, AI, and automation are here to stay and
will advance the mortgage market into something that
is unrecognizable from the industry’s current state. For
those trying to figure it out, whether in a regulatory
sandbox or an innovation lab, this is one of the most
exciting times to be in the mortgage industry. n
The march toward further innovation is well at hand.
This past July, the U.S. Department of Treasury released
a report on nonbank financial institutions and fintechs
(financial technology companies) calling for a financial
system that creates economic opportunities and fosters innovation. The 222-page report offers a peek into
what the Trump administration views as the future of
“The use of data, the speed of communication, the
proliferation of mobile devices and applications, and
the expansion of information flow all have broken
down barriers to entry for a wide range of startups
and other technology-based companies that are now
competing or partnering with traditional providers in
nearly every aspect of the financial services industry,”
the report says.
The increasing scale of technology-enabled competitors — some of which are attracting an abundance
of capital — has raised the stakes for traditional bank
and nonbank originators who see the need to innovate more rapidly to regain market share. Data analytics and artificial intelligence (AI) are among the top
investment areas for financial companies, according
to a PricewaterhouseCoopers report last year.
Other reports estimate that by 2030, AI technologies
could increase North American gross domestic prod-
uct (GDP) by $3.7 trillion and global GDP in $15.7 tril-
lion. Financial institutions are now looking to AI to cut
costs, boost returns and improve risk management.
The Trump administration also has called for the
establishment of “sandboxes” to provide regulatory
relief to foster further innovation in the financial sec-
tor. New technologies, such as predictive data ana-
lytics, AI and blockchain could potentially qualify for
regulatory sandbox treatment.
When it comes to blockchain, many in the mortgage
industry are still figuring out what it is and what it can
do, although early indications are that it is highly rel-
evant to mortgage finance. Blockchain technology
allows an originator to record and track transactions
in real-time in a decentralized, tamper-proof database
called a ledger where everyone with permission to
access the ledger knows about the transaction. The
technology certainly has implications for how financial
institutions track and maintain records.
Blockchain promises to provide the checks and bal-
ances that lenders require to ensure an authoritative
digital copy of the loan documents exists and resides
in the possession of the lender or holder. In an age
<< Asteroid continued from Page 80 “The increasing scale of technology-enabled
competitors has raised the stakes for
traditional bank and nonbank originators
who see the need to innovate more rapidly. ”