Morning Briefing: Mortgage fees could be cut by $960 by new tech

by Steve Randall12 Oct 2016
Mortgage fees could be cut by $960 by new tech
The adoption of blockchain technology by banks and mortgage lenders could see a sharp cut in fees according to a new report.

Analysts at Capgemini estimate that the industry would make savings of up to $11 billion per year across the US and EU if blockchain-based ‘smart contracts’ were adopted.

These contracts, already being developed by financial institutions, bring all parties in a contract together on a single platform, simplifying the process and cutting down on the number of forms required, saving time.

“This could translate to an average saving of between $480 and $960, or eleven to twenty-two percent on mortgage arrangement and account fees for consumers,” the report says.

Homeowners are also expected to see savings on insurance products if and when that industry adopts blockchain smart contracts.
 
40 per cent drop in foreclosures
There was another sharp drop in foreclosures in August with 37,000 completed, a 42.4 per cent decline from a year earlier.

CoreLogic says that the foreclosure inventory dropped 29.6 per cent to its lowest rate since July 2007. There were 351,000 homes in the inventory, representing 0.9 per cent of all homes with a mortgage; down from 499,000 homes (1.9 per cent) a year earlier.

 “The large decline in the distressed inventory has been one of the drivers of steady home price growth which helps Americans increase their home equity to support increased spending or cushion future economic risk,” commented Dr. Frank Nothaft, chief economist for CoreLogic.

Florida, Texas, Ohio, California and Georgia had the highest numbers of completed foreclosures in the 12 months to August while DC, North Dakota, West Virginia, Alaska and Montana had the fewest.
 
Johnny Depp selling portfolio of apartments
A portfolio of Art Deco penthouses in downtown LA is for sale following his divorce from Amber Heard last year. The unique collection of five side-by-side homes were acquired by Depp over a few years and refurbished in 2007.

Toprealestatedeals.com reports that although the actor lived in the homes, he didn’t join them meaning that they can now be sold individually or as a set.

In total the group comprises four two-bedroom units and a one-bedroom totaling approximately 11,500 square feet within the 13-story Eastern Columbia Building.

As a group they are on the market for $12.78 million or individual prices are available on request. The listing agent is Kevin Dees of Partners Trust in Beverly Hills
 

COMMENTS

  • by comment | 10/12/2016 12:02:38 PM

    Call me cynical, but it's unlikely "savings" will be passed on to any significant degree. Banks, especially, will just further line their pockets. These technologies/products are not developed as a means of easing costs to borrowers.

Poll

Is TILA-RESPA a good or bad thing long term?