Microsoft Word - isys3408_BlockchainStrategyAssignment_2022s1.docx 1 ISYS3408 – Blockchain for...

Question

Microsoft Word - isys3408_BlockchainStrategyAssignment_2022s1.docx

1

ISYS3408 – Blockchain for Business

Blockchain Strategy Plan – 30%

Due Friday, 10th June 2022

MORTGAGE BROKING

Purchasing a house is important to a large number of people and in the majority
of cases the purchase involves a mortgage. Consumers usually a
ange a
mortgage either directly with a bank or through a mortgage
oker. Mortgage
okers gather details from the customer, recommend a particular loan provider
(usually a bank), fill in the required forms and follow the process through to
settlement.

The mortgage application process often involves the
oker:
 Checking the credit rating of the customer (from credit rating agencies)
 Verifying income and asset details
 Determining bo
owing capacity (pre-qualification)
 Scanning loan product offerings from different lenders to choose from
 Application: filling in the required forms for the chosen lender
 Submitting the forms to the bank

The bank providing the loan will then:
 Check all the details in the forms
 Perform a title search to verify property ownership and status
 Seek to verify credit rating of bo
ower and income details etc.
 May obtain a property valuation from a valuer
 Approve/deny the loan

If the loan is approved, settlement will involve:
 Lender providing the funds to the bo
ower at settlement
 Often involves paying out seller’s mortgage with another lender
 Balance paid to the seller

The cu
ent process can be time consuming and is often paper based. Loan
applications can take 30 to 60 days to be processed. Each bank has different
forms and each application for a loan is therefore different.
If one lender rejects an application, the entire process has to be started again
for a different lender using different forms. As documents are usually not shared,
a lender may seek a property valuation even if another lender has already done
so previously.

Delays can also be extremely costly to bo
owers. If loans are not approved in
time for settlement, bo
owers can end up losing their deposit.
2

The mortgage
oking industry companies have been considering if Blockchain
technologies could be used to improve the cu
ent system and provide a better
experience for customers. Being an expert on Blockchain in Business, you have
een approached to consider how the cu
ent system could be improved with a
Blockchain based solution.

PART A: Blockchain Suitability

Write a
ief report determining whether a blockchain solution is appropriate for
this scenario. Refer to the flowcharts and guidelines covered in lecture 9 and
demonstrated as part of tutorial 11.

You can’t just simply answer ‘yes’ or ‘no’ – neither answer is right or wrong.
Address the reasons and conditions that make this scenario suitable or not
suitable for a blockchain solution.

PART B: Blockchain Strategy and Plan

Briefly describe how a blockchain based solution might work for this scenario.
Explain how a blockchain platform could be integrated into the cu
ent
processes. Refer to the discussion in lecture 11.

You could do this in a number of ways, depending on what modeling skills you
already have. You could simply describe the process as a set of steps, taking
into account how a blockchain platform would function within the process. You
could also use a flowchart, BPMN, Use Case or any other process modeling
notation you already know. It is recommended you consider the process from
the perspective of each major participant (e.g. bo
ower,
oker, lender, valuer).

Briefly describe the MVE (Minimum Viable Ecosystem) that would be needed to
get a trial blockchain project underway. Refer to lecture 10.

Also, address some of the main legal and ethical issues that will need to be
considered when looking to use a blockchain within this context.
You should refer to lecture 12.

Assignment Expectations and Requirements

2,000 words in total, plus diagrams if relevant

Refer to the marking ru
ic in canvas before completing the assignment

Submission: Submit this assignment as a file upload (doc or pdf) to canvas.

lab-task-1-hjtvlmmy-35fa0pt1-grcg23at.docx isys3408blockchainstrategyassignment2022s1-ngvgftzb-31wtzm5z-tkjckhik.pdf

Anjali · Accepted Answer

Introduction 
 The mortgage application process is quite a long process and the risk related to the misuse of the various documents that are required in this process is very high. The solutions like Blockchain technology help to manage the risks related to the previous and security of the documents that are required in this process. Blockchain is a perfect solution to manage the issues that are involved in mortgage applications. It helps to build a trustworthy relationship between the parties involved in this application procedure. The sensitive information of the users can also be preserved by opting for Blockchain technology. There are so many advantages of implementing this technology in mortgage application procedures such as transparency factor, trustworthy relationship, and loyalty alongside the security that cannot be neglected while implementing the blockchain for this application. In this technology the block of information cannot be modified and deleted after its creation, it stays for a lifetime in the ledger that helps to keep track of the activities and the documents with respect to the ID. This kind of tracking and management helps to resolve the conflict between the different stakeholders that can impact the completion of the process on time. Time efficiency, security, and avoidance of legal risks between the different parties involved in the mortgage application are the major advantages of Blockchain in this process. Therefore the implementation of Blockchain for a mortgage application is a perfect solution for all the problems that start from checking the credit card range or rating to the approval of the mortgage and the loan to buy a house. Unwanted delays and the effort required to manage the documents related to the mortgage application process can be avoided by implementing the use of Blockchain. Competitive advantages can be gained by improving the current system with the implementation of Blockchain. A distributed ledger can be maintained easily by integrating Blockchain that provides ease of access to the number of stakeholders that are dealing with a mortgage application. The manual hard work that is required by the lender to manage the different forms related to the mortgage application can also be counterfeited by adopting the use of blocking technology. A smart contract is the perfect application of Blockchain that can be used to avoid the legal conflicts between the different parties involved in the mortgage application it helps to manage the several documents and the legal contracts signed between the different parties that foster the transparency between the involved stakeholders.
Working of blockchain 
Blockchain provides the perfect remedy for all the problems related to the mortgage industry because it provides a model that minimizes the risk related to the transparency factor between the different stakeholders. Distributed ledger technology provides two major advantages, you can say that upgrades to the current model of the mortgage industry, helps to decentralize the information related to the different stakeholders that make the different transaction immediately available across the different nodes of the Block Chain. 24*7 access is provided to the number of users by the integration of Blockchain technology that fosters transparency and flexibility for the number of users(Garcia-Teruel, 2022). The second major benefit that is provided by this technology to the mortgage industry is that it immediately upgrades the transaction to become a public record that cannot be deleted or Manipulated according to the convenience. It offers a decentralized crowd lending platform that helps to remove the third parties involved in the mortgage application leverages the trust between the parties and the accountability factor is also an advantage of this technology. The unwanted delays and the cost involved in the approval procedure can also be avoided by centralizing the system with the use of Blockchain technology.

Please view the attached pdf for the details. I have also attached the rubric in a word doc for your reference. It is supposed to be 2000 words excluding references.

Solution

Answer To This Question Is Available To Download

Related Questions & Answers

Submit New Assignment