Mortgage fraud is on the rise across the world, with more and more customers inadvertently sending money to fraudsters instead of solicitors. Could blockchain technology be the answer to rising scams and fraud within the mortgage sector?
The growing sophistication and persistence of mortgage fraud, which in 2017 saw UK bank customers lose more than £236million, is paving the way for innovative solutions to stamp out this escalating and devastating crime.
Reducing mortgage fraud
In walk Block66, a company utilizing the capability of blockchain technology to transform the mortgage lending process and quash borrowing fraud.
By leveraging blockchain technology, Block66 is developing what it refers to as a “brand new breed of mortgage lending,” to “increase transparency and streamline the deployment of capital.”
Block66’s mission is to:
“Shake up the mortgage lending landscape by building the world’s first blockchain enabled lending network. The network will eventually seek to span borders, connecting private and institutional lenders with borrowers worldwide. All mortgages will be issued and managed on the blockchain.”
By matching borrowers with lenders and allowing mortgages to be issued on the blockchain to support blockchain only property purchases, the decentralized Block66 platform helps to reduce mortgage fraud.
Blockchain to be the future of finance
Block66 is not the only blockchain venture recognizing and utilizing the potential of blockchain technology in the real estate sector.
Blocksquare, a team of versatile entrepreneurs, digital currency believers, IT developers, blockchain professionals, and real estate investors, is on a mission to make “real estate investing easy, safe and available to everyone, everywhere.”
Blocksquare enables real estate businesses to issue tokens that are linked to professionally managed real estate properties through a series of blockchain-based plug & play protocols, APIs and tools.
With mortgages being issued and managed with blockchain technology, John Burbank’s predictions that blockchain will be the future of finance look increasingly likely.
The Passport Capital founder, who noted the housing bubble before the market crash in 2004, turned the world’s attention to blockchain and cryptocurrency, predicting that the technology is going to explode in forthcoming years and will spread into every major market worldwide.
Gabrielle Pickard-Whitehead is a freelance journalist and copywriter based in the Peak District, UK. Since 2006, Gabrielle has followed her passion for writing and has sculptured a rewarding career out of her love for the written word. Gabrielle thrives on creating compelling content related to current affairs, politics, financial news and the latest advancements in technology and innovation. Gabrielle is excited about having the chance to write about the constantly-evolving world of crytocurrency and enabling people to learn more about this rapidly-advancing digital asset.