Loan Originator and Servicer Sun West Mortgage Co. Inc. has unveiled the latest version of its proprietary artificial intelligence (AI) platform, called Morgan, which enables the lender to convert pre-approved property-specific mortgage loans into non-fungible tradable tokens (NFTs).
The NFT is independent of ownership, backed by real dollars and guaranteed by Sun West, which is one of the largest non-bank mortgage companies in the country, licensed in 48 states with a network of about 80 retail branches. It puts homebuyers who have the NFT in the position of making an all-cash offer to a home seller, according to the Buena Park, California-based lender.
The blockchain-based Morgan AI platform makes use of Sun West’s TRU Approval lending platform and is powered by its fintech sister company, Celigence.
“What we traditionally call a homebuyer is now a seller of their unique, credit-qualified non-fungible token (NFT),” Sun West CEO Pavan Agarwal said. “If the market value (the price of the house) is accepted and accepted by the NFT seller and the property owner, the transaction is openly recorded.
“To ensure that the NFT is traded as agreed, the NFT seller (home buyer) has two options. They can close the transaction and transfer the NFT, or if they choose not to honor the trade, they forfeit their security deposit, as is customary with any standard real estate purchase.”
The approach creates broader opportunities for both buyers and sellers and empowers both parties to the home sale “to submit and accept offers with certainty and without open financial contingencies,” states the lender’s announcement of the new option. NFT loan.
Sun West has been testing Morgan’s real performance since its recent preview release. Morgan reviewed and resolved about 99% of the thousands of daily loan terms submitted to Sun West in two hours, according to the lender. Additionally, Sun West said that more than 30% of loan terms received were reviewed within 30 minutes.
“The result is a 100% success rate on properly underwritten and secured Tru Approval loans,” says Sun West announcing the launch of the NFT product.
“Since our foundation in 1980, the landscape [through] that we get a mortgage has changed,” Agarwal said. “The multi-billion dollar real estate market is built on countless unique person-to-person transactions.
“It was once wonderfully simple but, in recent decades, it has become unnecessarily complex. The invention and mass adoption of blockchain-based technology has given us a new opportunity to streamline this process, and Morgan is designed to redefine the way we trade real estate while simplifying and correcting this overcomplication.”