Platform employs blockchain technology to convert mortgages into NFTs
Los Angeles-based Sun West Mortgage Company (SWMC) has deployed a new version of its blockchain real estate platform, Morgan.
According to the company, Morgan's AI technology converts a pre-approved property-specific loan to a “property agnostic tradable” non-fungible token (NFT). The token is backed by real dollars and guaranteed by Sun West. The lender claims that this approach gives buyers and sellers the chance to present and accept all-cash offers “with certainty and without open-ended financing contingencies.”
Sun West Mortgage CEO Pavan Agarwal further explained: “What we traditionally call a homebuyer is now a seller of their unique credit qualified non-fungible token. If the trade value (the price of the home) is accepted and agreed to by the NFT seller and property owner, the transaction is openly recorded. To ensure the NFT is traded as agreed, the NFT seller (homebuyer) has two choices - they may close the transaction and transfer the NFT, or if they choose not to honor the trade, they forfeit their earnest money deposit, as customary in any standard real estate purchase.”
Sun West, which originates and services loans in 48 states, also claims that the blockchain-powered platform has streamlined its mortgage approval process and helped speed up the loan application review process to within 30 minutes.
“Since our founding in 1980, the landscape of which we obtain a mortgage has changed,” Agarwal said. “The multi-trillion-dollar real estate market is based on countless singular person-to-person transactions. It was once wonderfully simple but, over the past decades, has become unnecessarily complex. The invention and mass adoption of blockchain-based technology has brought us a new opportunity to streamline these processes, and Morgan is designed to redefine the way we trade real estate while simplifying and correcting this over complication.”