Borrowing money

Sun West unveils NFT loan powered by AI technology

Loan originator and manager Sun West Mortgage Co. Inc. unveiled the latest version of its proprietary artificial intelligence (AI) platform, called Morgan, which allows the lender to convert pre-approved, property-specific home loans into non-fungible tradable tokens (NFTs).

The NFT is independent of ownership, backed by real dollars and guaranteed by West Sun, which is one of the largest non-bank mortgage companies in the nation, licensed in 48 states with a network of approximately 80 retail branches. According to the Buena Park, Calif.-based lender, homebuyers holding the NFT are in the position to make a cash offer to a home seller.

The blockchain-based Morgan AI platform uses Sun West’s TRU Approval lending platform and is powered by its fintech sister company, Celligence.

“What we traditionally call a homebuyer is now a seller of their unique, credit-eligible non-fungible token (NFT),” said Sun West CEO Pavan Agarwal. “If the commercial value (the price of the house) is accepted and accepted by the NFT seller and the owner, the transaction is openly recorded.

“To ensure that the NFT is traded as agreed, the NFT seller (homebuyer) has two choices. They can close the transaction and transfer the NFT, or if they choose not to honor the transaction, they forfeit their earnest money deposit, as is usual in any standard property purchase.

The approach creates broader opportunities for buyers and sellers and allows both parties to the home sale “to present and accept offers with certainty and without open-ended financing contingencies,” the announcement reads. by the lender of the new NFT loan option.

Sun West has been testing Morgan’s real world performance since its recent soft launch. Morgan reviewed and resolved about 99% of the thousands of daily loan terms submitted to Sun West within two hours, according to the lender. Additionally, Sun West said more than 30% of loan terms received were reviewed within 30 minutes.

“The result is a 100% success rate in properly underwritten and secured Tru Approval loans,” says Sun West in announcing the launch of the NFT product.

“Since our creation in 1980, the landscape [through] which we get a mortgage has changed,” Agarwal said. “The multi-trillion dollar real estate market is based on countless individual person-to-person transactions.

“It was once wonderfully simple but, over the past few decades, it has become unnecessarily complex. The invention and mass adoption of blockchain-based technology has presented us with a new opportunity to streamline this process, and Morgan is designed to redefine the way we trade real estate while simplifying and correcting this over-complication.